Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the
Symbol Lookup tool.
Alphabetize the sort order of my symbols
Investing just got easier…
Sign up now to become a NASDAQ.com member and begin receiving instant notifications when key events occur that affect the stocks you follow.Access Now
Start Time: 16:30
End Time: 17:05
Cubic Corporation (CUB)
Q3 2017 Earnings Conference Call
August 03, 2017, 16:30 PM ET
Brad Feldmann - President and CEO
Jay Thomas - EVP and CFO
Diane Dyer - Director of IR
Julian Mitchell - Credit Suisse
Ken Herbert - Canaccord Genuity
Brian Ruttenbur - Drexel Hamilton
Previous Statements by CUB
» Cubic Corporation's (CUB) CEO Brad Feldmann on Q2 2017 Results - Earnings Call Transcript
» Cubic Corporation's (CUB) CEO Brad Feldmann on Q1 2017 Results - Earnings Call Transcript
» Cubic Corporation's (CUB) CEO Brad Feldmann on Q4 2016 Results - Earnings Call Transcript
» Cubic's (CUB) CEO Brad Feldmann on Q3 2016 Results - Earnings Call Transcript
Now, I'd like to turn the call over to Diane Dyer. Cubic's Director of Investor Relations. Thank you. You may begin.
Thank you, operator. Hello, everyone, and thank you for joining Cubic’s webcast. Today, after market closed, we reported our third quarter fiscal year 2017 results. We encourage you to refer to the company's press release and the most recent reports filed with the SEC as well as today's presentation slides. You can access these documents on the Investor Relations tab of Cubic's Web site at www.cubic.com, or on the SEC's Web site.
On today’s call, Brad Feldmann, Cubic's President and CEO; and Jay Thomas, Executive Vice President and CFO will comment on Cubic’s third quarter 2017 results.
Please note that certain information discussed on the call today is covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act. I caution listeners that during this call, Cubic management will be making forward-looking statements about future events or Cubic's future financial and operating performance.
Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements should be considered in conjunction with, and are qualified by, the cautionary statements contained in Cubic's earnings press release and SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q.
This conference call contains time-sensitive information that is accurate only as of the date of this broadcast, August 3, 2017. Cubic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call.
This conference call also includes a discussion of non-GAAP financial measures as that term is defined in Regulation G. Cubic believes this information is useful to investors because it provides a basis for measuring the company's available capital resources, the actual and forecasted operating performance of the company's business, and the company's cash flows. Any discussion of non-GAAP financial measures is not intended to detract from the importance of comparable GAAP measures.
Having that said, I'll turn the call over to Brad Feldmann, our President and CEO.
Thank you, Diane. Thank you everyone for joining us on the call. Today, I’ll begin with highlights of a year-to-date financial performance, review of the increased investments in our transportation business and an update on our strategy. Following that, Jay Thomas, our CFO will discuss our quarterly financial results in greater detail.
Starting with Slide 3. Sales for the first three quarters were $1.040 billion, up $6 million on a constant currency basis. Adjusted EBITDA was $55.4 million compared to $82.3 million last year, net of $3 million foreign currency exchange headwinds. I will summarize the incremental investments we have made to grow our transportation business on the next slide.
Following the approval of the DoD budget in May, we look forward to a strong finish this fiscal year driven by increased C4ISR product sales in mission solutions and approved financial performance in our transportation business.
We remain very confident in our bid for the New York City New Fare Payment System. The New York MTA has recently expanded the scope of the contract to include both Long Island Railroad and Metro North. And we expect an award decision in the near term.
As announced, October 1 Jay Thomas, our Chief Financial Officer will transition to an executive advisory role focused on corporate growth initiatives. Jay has had an enormous impact on the success of the corporation during his nearly four decades of service, and I want to thank Jay for his valuable insights and for his counsel. Thank you, Jay.
Anshooman Aga, who recently joined us from AECOM will succeed Jay as CFO. We are very pleased to Anshooman on board and we welcome him to the Cubic senior leadership team.
Turning to Slide 4. I want to outline the significant investments we have made in our transportation business. These core investments position us for strong organic growth, driven by our competitive advantages and global customer demand for fare system upgrades. All amounts are year-on-year comparisons.
We invested $9.4 million in R&D to advance our next-generation solutions in mobile, revenue collection and real-time passenger information. These investments enable us to increase speed to market, reusability and margins.
With the next investment of $6.6 million, we entered the toll market. We also invested $6.4 million in pre-contract engineering to reduce our delivery risk on the New York City bid.
Lastly, we have had higher bid and proposal cost related to our larger bids in New York and Boston. These opportunities exceed $2 billion. After adjusting for these investments and foreign currency exchange headwinds, the operating performance for CTS is comparable year-on-year.