Cubic Reports Record Fourth Quarter and Fiscal Year 2020 Results and Provides Fiscal Year 2021 Outlook
Summary
We are excited about the future as we embark on our recently announced NextCUBIC strategy, which we expect will drive strong organic sales growth and increase Adjusted EBITDA margins and return on invested capital to the mid-teens by fiscal 2025.” Consolidated Fiscal Fourth Quarter 2020 Results (all metrics compared to Fiscal Fourth Quarter 2019 unless otherwise noted) Sales increased 1% as reported and decreased 4% on an organic basis to $475.4 million, compared to $471.2 million in the prior year period, reflecting strong growth in Mission Solutions and impacts related to the ongoing COVID-19 pandemic due to delayed orders and lower transit ridership. Cubic’s consolidated VIE recognized higher operating income due to the Massachusetts Bay Transit Authority (“MBTA”) contract amendment. The increase in full year Adjusted EBITDA reflects the MBTA contract amendment, as well as strong execution on Services and cost savings, which offset certain unfavorable impacts related to COVID-19. Cubic is a technology-driven, market-leading provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers worldwide to decrease urban congestion and improve the militaries’ effectiveness and operational readiness. Cubic uses Adjusted EBITDA internally to evaluate the operating performance of its business, for strategic planning purposes, and as a factor in determining incentive compensation for certain employees.