Review the companys financial statements and accounting data. Explain the information provided by each financial statement and include examples. Explain positive or negative trends? How does this impact the business?
QUESTION: Review the companys financial statements and accounting data. Explain the information provided by each financial statement and include examples. Explain positive or negative trends? How does this impact the business?
in thousands) September 30, 2019 2018 $ $ ASSETS Current assets: Cash and cash equivalents Cash in consolidated VIE Restricted cash Restricted cash in consolidated VIE Accounts receivable: Long-term contracts Allowance for doubtful accounts 65,800 347 19,507 9,967 111,834 374 17,400 10,000 127,406 (1,392) 126,014 393,691 (1,324) 392,367 349,559 7,754 106,794 Contract assets Recoverable income taxes Inventories Assets held for sale Other current assets Other current assets in consolidated VIE Total current assets 91 84,199 8,177 43,705 38,534 _33 724,309 668,147 6,134 36,285 115,508 Long-term contracts receivables Long-term contracts financing receivables Long-term contracts financing receivables in consolidated VIE Long-term capitalized contract costs Long-term capitalized contract costs in consolidated VIE Property, plant and equipment, net Deferred income taxes Goodwill Purchased intangibles, net Other assets Other assets in consolidated VIE Total assets 144,969 4,098 578,097 165,613 76,872 1,419 $ 1,847,170 84,924 1,258 117,546 4,713 333,626 73,533 14,192 810 $ 1,304,883 See accompanying notes. September 30, 2019 2018 LIABILITIES AND SHAREHOLDERS' EQUITY $ $ 195,500 180,773 25 46,170 125,414 165 Current liabilities: Short-term borrowings Trade accounts payable Trade accounts payable in consolidated VIE Contract liabilities Customer advances Accrued compensation Other current liabilities Other current liabilities in consolidated VIE Income taxes payable Current portion of long-term debt Current liabilities of discontinued operations Total current liabilities 75,941 65,277 52,956 58,343 36,670 191 773 10,714 8,586 529,159 328,339 Long-term debt Long-term debt in consolidated VIE Accrued pension liability Deferred compensation Income taxes payable Deferred income taxes Other noncurrent liabilities Other noncurrent liabilities in consolidated VIE 189,110 61,994 25,386 11,040 937 4,554 22,817 21,605 199,793 9,056 7,802 11,476 2,406 2,689 19,113 Commitments and contingencies Shareholders' equity: Preferred stock, no par value: Authorized--5,000 shares Issued and outstanding--none Common stock, no par value: Authorized--50,000 shares 40,124 issued and 31,178 outstanding at September 30, 2019 36,201 issued and 27,255 outstanding at September 30, 2018 Retained earnings Accumulated other comprehensive loss Treasury stock at cost-8,945 shares Shareholders' equity related to Cubic Noncontrolling interest in VIE Total shareholders' equity 274,472 862,948 (139,693) (36,078) 961,649 18,919 980,568 45,008 801,834 (110,643) (36,078) 700,121 24,075 724,196 Total liabilities and shareholders' equity $ 1,847,170 $ 1,304,883 See accompanying notes. TUIS L LU september 30, 2019 2018 2017 $ $ $ 39,883 1,423 12,036 (4,243) (11,209) (14,531) 64,742 15.488 (1,005) (32,510) 46,600 7,515 1,029 48,045 5,012 (3,878) 405 (3,363) (1,337) (1,474) (6,860) (2,770) (917) (1,046) (35) (34,762) (45,443) Operating Activities: Net income (loss) Net (income) loss from discontinued operations Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization Share-based compensation expense Change in fair value of contingent consideration (Gain) loss on sale of property, plant and equipment Gain on sale of investment in real estate Deferred income taxes Net pension benefit Excess tax benefits from equity incentive plans Changes in operating assets and liabilities, net of effects from acquisitions Accounts receivable Contract assets Inventories Prepaid expenses and other current assets Long-term financing receivables Long-term capitalized contract costs Accounts payable and other current liabilities Contract liabilities Income taxes Other items, net NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 44,473 (83,697) (31,544) 5,317 (56,575) 3,023 (15,455) (18,867) 7,286 27,792 (15,359) (17,268) 11,689 (29,552) 30,423 21,566 (361) (18,126) 8,911 13,389 7,383 8,240 (5,756) (31,851) 8,589 (3,011) 10,376 27,747 24,736 (31,851) 18,965 (393,908) (16,322) (16,830) (19,121) 31,868 44,891 (49,084) (36,916) Investing Activities: Acquisition of businesses, net of cash acquired Purchases of marketable securities Proceeds from sales or maturities of marketable securities Proceeds from sale of property, plant and equipment Purchases of property, plant and equipment Proceeds from sale of investment in real estate Purchase of non-marketable debt and equity securities NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (31,696) 2,400 (1,500) (47,118) (60,694) (458,795) (2,700) (43,699) (458,795) 133,795 86,677 1.217 (42,482) 898,000 (702,500) 269,770 (324,770) 130,780 (315,780) (978) Financing Activities: Proceeds from short-term borrowings Principal payments on short-term borrowings Principal payments on long-term debt Proceeds from long-term borrowings in consolidated VIE Deferred financing fees Deferred financing fees in consolidated VIE Proceeds from stock issued under employee stock purchase plan 13,196 50,162 (1,907) 1,832 (3.688) (4,778) 1,517 (2449) 2,234 Purchase of common stock (2444) (60,694) (458,795) (1,500) (47,118) (2,700) (43,699) Purchase of non-marketable debt and equity securitics NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (458,795) 133,795 86,677 1,217 (42,482) 898,000 (702,500) 269,770 (324,770) 130,780 (315,780) (978) Financing Activities: Proceeds from short-term borrowings Principal payments on short-term borrowings Principal payments on long-term debt Proceeds from long-term borrowings in consolidated VIE Deferred financing fees Deferred financing fees in consolidated VIE Proceeds from stock issued under employee stock purchase plan Purchase of common stock 13,196 50,162 (1,907) 1,832 (3,688) (4,778) 1,517 (2,449) 2,234 (2,444) (8,414) (7,355) Dividends paid Excess tax benefits from equity incentive plans Contingent consideration payments related to acquisitions of businesses Equity contribution from Boston VIE partner Proceeds from equity offering, net NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (7,341) 35 (2,625) (820) (1,156) 24,349 215,832 448,497 (31,676) _(196,119) Effect of exchange rates on cash (1,838) (2.935) 9,667 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (43,987) 71,031 (204,198) Cash, cash equivalents and restricted cash at the beginning of the period 139,608 68,577 272,775 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD $ 95,621 $ 139,608 $ 68,577 Supplemental disclosure of non-cash investing and financing activities: Liability recognized in connection with the acquisition of Nuvotronics, net Liability recognized in connection with the acquisition of Shield Aviation, net Liability recognized in connection with the acquisition of Deltenna, net Liability recognized in connection with the acquisition of Vocality, net $ $ S 4,900 - - $ $ S - 6,248 - $ $ - 1,327 Accumulated Other Comprehensive Loss Common Stock Retained Earnings Treasury Stock Noncontrolling Interest in VIE Number of Shares Outstanding October 1, 2016 $ 32,756 $ 813,035 $ (119,817) $ (36,078) $ - 26,992 (11,209) 13,191 Net loss Other comprehensive income, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Tax expense from equity incentive plans Cash dividends paid -- $.27 per share of common stock TL 111 2,234 (2,444) 5,269 35 (7,341) - - 37,850 - - (36,078) September 30, 2017 794,485 (106,626) 27,127 12,310 (1,623) Net income (loss) Other comprehensive loss, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Equity contribution of noncontrolling interest Cumulative effect of accounting standard adoption Cash dividends paid -- $.27 per share of common stock 1,517 (2,449) 8,090 2,394 (2,394) (7,355) September 30, 2018 45,008 801,834 (110,643) (36,078) 24,075 27,255 49,694 (29,050) 145 Net income (loss) Other comprehensive loss, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Cumulative effect of accounting standard adoption Stock issued under equity offering, net Cash dividends paid -- $.27 per share of common stock 1,832 (3,688) 15,488 III TIL 11 (49) 19,834 215,832 3,795 (8,414) - September 30, 2019 S 274.472 S 862.948 S (139,693) S (36,078) S 18,919 31,178 in thousands) September 30, 2019 2018 $ $ ASSETS Current assets: Cash and cash equivalents Cash in consolidated VIE Restricted cash Restricted cash in consolidated VIE Accounts receivable: Long-term contracts Allowance for doubtful accounts 65,800 347 19,507 9,967 111,834 374 17,400 10,000 127,406 (1,392) 126,014 393,691 (1,324) 392,367 349,559 7,754 106,794 Contract assets Recoverable income taxes Inventories Assets held for sale Other current assets Other current assets in consolidated VIE Total current assets 91 84,199 8,177 43,705 38,534 _33 724,309 668,147 6,134 36,285 115,508 Long-term contracts receivables Long-term contracts financing receivables Long-term contracts financing receivables in consolidated VIE Long-term capitalized contract costs Long-term capitalized contract costs in consolidated VIE Property, plant and equipment, net Deferred income taxes Goodwill Purchased intangibles, net Other assets Other assets in consolidated VIE Total assets 144,969 4,098 578,097 165,613 76,872 1,419 $ 1,847,170 84,924 1,258 117,546 4,713 333,626 73,533 14,192 810 $ 1,304,883 See accompanying notes. September 30, 2019 2018 LIABILITIES AND SHAREHOLDERS' EQUITY $ $ 195,500 180,773 25 46,170 125,414 165 Current liabilities: Short-term borrowings Trade accounts payable Trade accounts payable in consolidated VIE Contract liabilities Customer advances Accrued compensation Other current liabilities Other current liabilities in consolidated VIE Income taxes payable Current portion of long-term debt Current liabilities of discontinued operations Total current liabilities 75,941 65,277 52,956 58,343 36,670 191 773 10,714 8,586 529,159 328,339 Long-term debt Long-term debt in consolidated VIE Accrued pension liability Deferred compensation Income taxes payable Deferred income taxes Other noncurrent liabilities Other noncurrent liabilities in consolidated VIE 189,110 61,994 25,386 11,040 937 4,554 22,817 21,605 199,793 9,056 7,802 11,476 2,406 2,689 19,113 Commitments and contingencies Shareholders' equity: Preferred stock, no par value: Authorized--5,000 shares Issued and outstanding--none Common stock, no par value: Authorized--50,000 shares 40,124 issued and 31,178 outstanding at September 30, 2019 36,201 issued and 27,255 outstanding at September 30, 2018 Retained earnings Accumulated other comprehensive loss Treasury stock at cost-8,945 shares Shareholders' equity related to Cubic Noncontrolling interest in VIE Total shareholders' equity 274,472 862,948 (139,693) (36,078) 961,649 18,919 980,568 45,008 801,834 (110,643) (36,078) 700,121 24,075 724,196 Total liabilities and shareholders' equity $ 1,847,170 $ 1,304,883 See accompanying notes. TUIS L LU september 30, 2019 2018 2017 $ $ $ 39,883 1,423 12,036 (4,243) (11,209) (14,531) 64,742 15.488 (1,005) (32,510) 46,600 7,515 1,029 48,045 5,012 (3,878) 405 (3,363) (1,337) (1,474) (6,860) (2,770) (917) (1,046) (35) (34,762) (45,443) Operating Activities: Net income (loss) Net (income) loss from discontinued operations Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization Share-based compensation expense Change in fair value of contingent consideration (Gain) loss on sale of property, plant and equipment Gain on sale of investment in real estate Deferred income taxes Net pension benefit Excess tax benefits from equity incentive plans Changes in operating assets and liabilities, net of effects from acquisitions Accounts receivable Contract assets Inventories Prepaid expenses and other current assets Long-term financing receivables Long-term capitalized contract costs Accounts payable and other current liabilities Contract liabilities Income taxes Other items, net NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 44,473 (83,697) (31,544) 5,317 (56,575) 3,023 (15,455) (18,867) 7,286 27,792 (15,359) (17,268) 11,689 (29,552) 30,423 21,566 (361) (18,126) 8,911 13,389 7,383 8,240 (5,756) (31,851) 8,589 (3,011) 10,376 27,747 24,736 (31,851) 18,965 (393,908) (16,322) (16,830) (19,121) 31,868 44,891 (49,084) (36,916) Investing Activities: Acquisition of businesses, net of cash acquired Purchases of marketable securities Proceeds from sales or maturities of marketable securities Proceeds from sale of property, plant and equipment Purchases of property, plant and equipment Proceeds from sale of investment in real estate Purchase of non-marketable debt and equity securities NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (31,696) 2,400 (1,500) (47,118) (60,694) (458,795) (2,700) (43,699) (458,795) 133,795 86,677 1.217 (42,482) 898,000 (702,500) 269,770 (324,770) 130,780 (315,780) (978) Financing Activities: Proceeds from short-term borrowings Principal payments on short-term borrowings Principal payments on long-term debt Proceeds from long-term borrowings in consolidated VIE Deferred financing fees Deferred financing fees in consolidated VIE Proceeds from stock issued under employee stock purchase plan 13,196 50,162 (1,907) 1,832 (3.688) (4,778) 1,517 (2449) 2,234 Purchase of common stock (2444) (60,694) (458,795) (1,500) (47,118) (2,700) (43,699) Purchase of non-marketable debt and equity securitics NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS NET CASH PROVIDED BY INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (458,795) 133,795 86,677 1,217 (42,482) 898,000 (702,500) 269,770 (324,770) 130,780 (315,780) (978) Financing Activities: Proceeds from short-term borrowings Principal payments on short-term borrowings Principal payments on long-term debt Proceeds from long-term borrowings in consolidated VIE Deferred financing fees Deferred financing fees in consolidated VIE Proceeds from stock issued under employee stock purchase plan Purchase of common stock 13,196 50,162 (1,907) 1,832 (3,688) (4,778) 1,517 (2,449) 2,234 (2,444) (8,414) (7,355) Dividends paid Excess tax benefits from equity incentive plans Contingent consideration payments related to acquisitions of businesses Equity contribution from Boston VIE partner Proceeds from equity offering, net NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (7,341) 35 (2,625) (820) (1,156) 24,349 215,832 448,497 (31,676) _(196,119) Effect of exchange rates on cash (1,838) (2.935) 9,667 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (43,987) 71,031 (204,198) Cash, cash equivalents and restricted cash at the beginning of the period 139,608 68,577 272,775 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD $ 95,621 $ 139,608 $ 68,577 Supplemental disclosure of non-cash investing and financing activities: Liability recognized in connection with the acquisition of Nuvotronics, net Liability recognized in connection with the acquisition of Shield Aviation, net Liability recognized in connection with the acquisition of Deltenna, net Liability recognized in connection with the acquisition of Vocality, net $ $ S 4,900 - - $ $ S - 6,248 - $ $ - 1,327 Accumulated Other Comprehensive Loss Common Stock Retained Earnings Treasury Stock Noncontrolling Interest in VIE Number of Shares Outstanding October 1, 2016 $ 32,756 $ 813,035 $ (119,817) $ (36,078) $ - 26,992 (11,209) 13,191 Net loss Other comprehensive income, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Tax expense from equity incentive plans Cash dividends paid -- $.27 per share of common stock TL 111 2,234 (2,444) 5,269 35 (7,341) - - 37,850 - - (36,078) September 30, 2017 794,485 (106,626) 27,127 12,310 (1,623) Net income (loss) Other comprehensive loss, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Equity contribution of noncontrolling interest Cumulative effect of accounting standard adoption Cash dividends paid -- $.27 per share of common stock 1,517 (2,449) 8,090 2,394 (2,394) (7,355) September 30, 2018 45,008 801,834 (110,643) (36,078) 24,075 27,255 49,694 (29,050) 145 Net income (loss) Other comprehensive loss, net of tax Stock issued under equity incentive plans Stock issued under employee stock purchase plan Purchase of common stock Stock-based compensation Cumulative effect of accounting standard adoption Stock issued under equity offering, net Cash dividends paid -- $.27 per share of common stock 1,832 (3,688) 15,488 III TIL 11 (49) 19,834 215,832 3,795 (8,414) - September 30, 2019 S 274.472 S 862.948 S (139,693) S (36,078) S 18,919 31,178
