Adjusted EBITDA represents net income plus net interest expense; income tax expense;
depreciation expense; amortization expense; expenses incurred in the development of our ERP
system and the redesign of our supply chain; business acquisition expenses including retention
bonus expenses, due diligence and consulting costs incurred in connection with the
acquisitions, expenses recognized related to the change in the fair value of contingent
consideration for acquisitions; goodwill impairment charges; restructuring costs; and income
and expenses classified as other non-operating income and expenses. Adjusted EBITDA is not
a measurement of financial performance under GAAP and should not be considered an
alternative to net income as a measure of performance.
GAAP to Non-GAAP Reconciliation
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
In Millions
2015
Net income attributable to Cubic
Add:
Interest expense (income), net
Provision for income taxes
Depreciation and amortization
Noncontrolling interest in income of VIE
EBITDA
Years Ended September 30
2014
$
22.9
$
2.6
49.0
37.7
112.2
Acquisition related expenses, excluding amortization 1
ERP/Supply Chain Initiatives
Goodwill Impairment
Restructuring costs
Other non-operating expense (income), net
Adjusted EBITDA
$
EBITDA Margin
Adjusted EBITDA Margin
7.9
13.2
6.3
0.9
140.5
7.8%
9.8%
$
69.5
$
2.7
19.8
30.4
0.1
122.5
$
5.6
1.1
0.4
129.6
8.8%
9.3%
2013
$
25.1
$
1.9
14.5
25.4
0.2
67.1
$
1
Includes transaction costs, retention bonuses and earn out liability increases related to
acquired businesses.
9333 Balboa Avenue, San Diego, CA 92123 • P.O. Box 85587, San Diego, CA 92186-5587
858-277-6780 • Fax 858-277-1876
www.cubic.com • NYSE: CUB
1.5
50.9
8.1
(0.9)
126.7
4.9%
9.3%
Adjusted Operating Income represents operating income plus expenses incurred in the
development of our ERP system and the redesign of our supply chain; business acquisition
expenses including retention bonus expenses, due diligence and consulting costs incurred in
connection with the acquisitions, expenses recognized related to the change in the fair value of
contingent consideration for acquisitions; goodwill impairment charges; and restructuring
costs. Adjusted Operating Income is not a measurement of financial performance under GAAP
and should not be considered an alternative to operating income as a measure of performance.
GAAP to Non-GAAP Reconciliation
Operating Income
In Millions
2015
Net income attributable to Cubic
Add:
Interest expense (income), net
Provision for income taxes
Other non-operating expense (income), net
Noncontrolling interest in income of VIE
Operating Income
Acquisition related expenses 1
ERP/Supply Chain Initiatives
Goodwill Impairment
Restructuring costs
Adjusted Operating Income
Operating Income Margin
Adjusted Operating Income Margin
Years Ended September 30
2014
$
22.9
$
2.6
49.0
0.9
75.4
$
7.9
13.2
6.3
102.8
5.3%
7.2%
$
69.5
$
2.7
19.8
0.4
0.1
92.5
$
5.6
1.1
99.2
6.6%
7.1%
1
Includes transaction costs, retention bonuses and earn out liability increases related to
acquired businesses.
9333 Balboa Avenue, San Diego, CA 92123 • P.O. Box 85587, San Diego, CA 92186-5587
858-277-6780 • Fax 858-277-1876
www.cubic.com • NYSE: CUB
2013
$
25.1
$
1.9
14.5
(0.9)
0.2
40.8
$
1.5
50.9
8.1
101.3
3.0%
7.4%
Adjusted Diluted EPS represents diluted EPS plus the impact of adding back the following
expenses, net of applicable income taxes: expenses incurred in the development of our ERP
system and the redesign of our supply chain; business acquisition expenses including retention
bonus expenses, due diligence and consulting costs incurred in connection with the
acquisitions, expenses recognized related to the change in the fair value of contingent
consideration for acquisitions; goodwill impairment charges; restructuring costs; and the
impact of a 2015 valuation on U.S. deferred tax assets. Adjusted Diluted EPS is not a
measurement of financial performance under GAAP and should not be considered an
alternative to diluted EPS as a measure of performance.
GAAP to Non-GAAP Reconciliation
Earnings per share
In Millions
2015
Diluted earnings per share attributable to Cubic
Add:
Acquisition related expenses 1
ERP/Supply Chain Initiatives 1
Goodwill impairment 1
Restructuring costs 1
U.S. deferred tax asset valuation reserve
Adjusted diluted earnings per share attributable to Cubic
1
Years Ended September 30
2014
$
0.85
$
0.18
0.29
0.14
1.33
2.79
$
2.59
$
0.13
0.02
2.74
Net of applicable income taxes
9333 Balboa Avenue, San Diego, CA 92123 • P.O. Box 85587, San Diego, CA 92186-5587
858-277-6780 • Fax 858-277-1876
www.cubic.com • NYSE: CUB
2013
$
0.94
$
0.03
1.14
0.20
2.32