NY | 1-05129 | 16-0757636 | |||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
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400 Jamison Rd | East Aurora, | New York | 14052-0018 | ||||||||
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A common stock | MOG.A | New York Stock Exchange | ||||||
Class B common stock | MOG.B | New York Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
Press release dated April 26, 2024, announcing Moog Inc.’s results of operations for the quarter and year ended March 30, 2024. |
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Press release dated April 26, 2024, announcing cash dividend. |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
MOOG INC. | |||||||||||
Dated: | April 26, 2024 |
By: | /s/ Michael J. Swope | ||||||||
Name: | Michael J. Swope | ||||||||||
Controller |
Release Date: | April 26, 2024 | ||||||||||
IMMEDIATE |
(in millions, except per share results) | Three Months Ended | ||||||||||
Q2 2024 | Q2 2023 | Deltas | |||||||||
Net sales | $ | 930 | $ | 837 | 11 | % | |||||
Operating margin | 12.0 | % | 10.0 | % | 200 bps | ||||||
Adjusted operating margin | 13.6 | % | 10.4 | % | 320 bps | ||||||
Diluted net earnings per share | $ | 1.86 | $ | 1.34 | 39 | % | |||||
Adjusted diluted net earnings per share | $ | 2.19 | $ | 1.42 | 54 | % | |||||
Net cash used by operating activities | $ | (44) | $ | (41) | $ | (3) | |||||
Free cash flow | $ | (84) | $ | (101) | $ | 17 | |||||
See the reconciliations of adjusted financial results and free cash flow to reported results included in the financial statements herein for the quarters ended March 30, 2024 and April 1, 2023. |
(in millions, except per share results) | FY 2024 Guidance | |||||||
Current | Previous | |||||||
Net sales | $ | 3,550 | $ | 3,500 | ||||
Operating margin | 11.9 | % | 12.0 | % | ||||
Adjusted operating margin | 12.4 | % | 12.0 | % | ||||
Diluted net earnings per share* | $ | 6.87 | $ | 6.86 | ||||
Adjusted diluted net earnings per share* | $ | 7.25 | $ | 6.90 | ||||
*Diluted net earnings per share figures for 2024 are forecasted to be within range of +/- $0.20. Adjusted diluted net earnings per share for the third quarter of 2024 are forecasted to be $1.70, +/- $0.10. |
Moog Inc. | ||
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | ||
(dollars in thousands, except per share data) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 30, 2024 |
April 1, 2023 |
March 30, 2024 |
April 1, 2023 |
|||||||||||||||||||||||
Net sales | $ | 930,303 | $ | 836,792 | $ | 1,787,153 | $ | 1,596,895 | ||||||||||||||||||
Cost of sales | 663,350 | 615,477 | 1,287,001 | 1,171,894 | ||||||||||||||||||||||
Inventory write-down | 175 | — | 175 | — | ||||||||||||||||||||||
Gross profit | 266,778 | 221,315 | 499,977 | 425,001 | ||||||||||||||||||||||
Research and development | 28,382 | 26,743 | 58,961 | 50,605 | ||||||||||||||||||||||
Selling, general and administrative | 124,961 | 116,695 | 243,686 | 229,860 | ||||||||||||||||||||||
Interest | 18,003 | 14,963 | 34,697 | 28,095 | ||||||||||||||||||||||
Asset impairment | 6,750 | 1,219 | 6,750 | 1,219 | ||||||||||||||||||||||
Restructuring | 6,750 | 2,017 | 8,639 | 3,095 | ||||||||||||||||||||||
Gain on sale of buildings | — | (527) | — | (10,030) | ||||||||||||||||||||||
Other | 3,183 | 3,901 | 5,884 | 5,552 | ||||||||||||||||||||||
Earnings before income taxes | 78,749 | 56,304 | 141,360 | 116,605 | ||||||||||||||||||||||
Income taxes | 18,746 | 13,291 | 33,545 | 27,576 | ||||||||||||||||||||||
Net earnings | $ | 60,003 | $ | 43,013 | $ | 107,815 | $ | 89,029 | ||||||||||||||||||
Net earnings per share | ||||||||||||||||||||||||||
Basic | $ | 1.88 | $ | 1.35 | $ | 3.38 | $ | 2.80 | ||||||||||||||||||
Diluted | $ | 1.86 | $ | 1.34 | $ | 3.34 | $ | 2.79 | ||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic | 31,967,828 | 31,848,140 | 31,934,965 | 31,797,071 | ||||||||||||||||||||||
Diluted | 32,335,418 | 32,043,910 | 32,295,762 | 31,959,315 | ||||||||||||||||||||||
Moog Inc. | ||
RECONCILIATION TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTED NET EARNINGS PER SHARE (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 30, 2024 |
April 1, 2023 |
March 30, 2024 |
April 1, 2023 |
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As Reported: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | 78,749 | $ | 56,304 | $ | 141,360 | $ | 116,605 | ||||||||||||||||||
Income taxes | 18,746 | 13,291 | 33,545 | 27,576 | ||||||||||||||||||||||
Effective income tax rate | 23.8 | % | 23.6 | % | 23.7 | % | 23.6 | % | ||||||||||||||||||
Net earnings | 60,003 | 43,013 | 107,815 | 89,029 | ||||||||||||||||||||||
Diluted net earnings per share | $ | 1.86 | $ | 1.34 | $ | 3.34 | $ | 2.79 | ||||||||||||||||||
Restructuring and Other Charges: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | 7,590 | $ | 2,611 | $ | 9,479 | $ | 4,144 | ||||||||||||||||||
Income taxes | 1,852 | 643 | 2,350 | 917 | ||||||||||||||||||||||
Net earnings | 5,738 | 1,968 | 7,129 | 3,227 | ||||||||||||||||||||||
Diluted net earnings per share | $ | 0.18 | $ | 0.06 | $ | 0.22 | $ | 0.10 | ||||||||||||||||||
Asset Impairment: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | 6,750 | $ | 1,219 | $ | 6,750 | $ | 1,219 | ||||||||||||||||||
Income taxes | 1,593 | 283 | 1,593 | 283 | ||||||||||||||||||||||
Net earnings | 5,157 | 936 | 5,157 | 936 | ||||||||||||||||||||||
Diluted net earnings per share | $ | 0.16 | $ | 0.03 | $ | 0.16 | $ | 0.03 | ||||||||||||||||||
Gain on Sale of Buildings: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | — | $ | (527) | $ | — | $ | (10,030) | ||||||||||||||||||
Income taxes | — | (100) | — | (2,086) | ||||||||||||||||||||||
Net earnings | — | (427) | — | (7,944) | ||||||||||||||||||||||
Diluted net earnings per share | $ | — | $ | (0.01) | $ | — | $ | (0.25) | ||||||||||||||||||
As Adjusted: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | 93,089 | $ | 59,607 | $ | 157,589 | $ | 111,938 | ||||||||||||||||||
Income taxes | 22,191 | 14,117 | 37,488 | 26,690 | ||||||||||||||||||||||
Effective income tax rate | 23.8 | % | 23.7 | % | 23.8 | % | 23.8 | % | ||||||||||||||||||
Net earnings | 70,898 | 45,490 | 120,101 | 85,248 | ||||||||||||||||||||||
Diluted net earnings per share | $ | 2.19 | $ | 1.42 | $ | 3.72 | $ | 2.67 | ||||||||||||||||||
The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding. |
Moog Inc. | ||
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 30, 2024 |
April 1, 2023 |
March 30, 2024 |
April 1, 2023 |
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Net sales: | ||||||||||||||||||||||||||
Space and Defense | $ | 266,787 | $ | 245,853 | $ | 496,915 | $ | 463,638 | ||||||||||||||||||
Military Aircraft | 202,500 | 182,753 | 388,744 | 360,553 | ||||||||||||||||||||||
Commercial Aircraft | 207,594 | 164,251 | 401,816 | 296,710 | ||||||||||||||||||||||
Industrial | 253,422 | 243,935 | 499,678 | 475,994 | ||||||||||||||||||||||
Net sales | $ | 930,303 | $ | 836,792 | $ | 1,787,153 | $ | 1,596,895 | ||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||
Space and Defense | $ | 42,243 | $ | 27,507 | $ | 67,540 | $ | 47,801 | ||||||||||||||||||
15.8 | % | 11.2 | % | 13.6 | % | 10.3 | % | |||||||||||||||||||
Military Aircraft | 16,769 | 16,181 | 36,358 | 31,382 | ||||||||||||||||||||||
8.3 | % | 8.9 | % | 9.4 | % | 8.7 | % | |||||||||||||||||||
Commercial Aircraft | 24,845 | 15,681 | 45,471 | 30,198 | ||||||||||||||||||||||
12.0 | % | 9.5 | % | 11.3 | % | 10.2 | % | |||||||||||||||||||
Industrial | 28,155 | 24,397 | 57,179 | 61,148 | ||||||||||||||||||||||
11.1 | % | 10.0 | % | 11.4 | % | 12.8 | % | |||||||||||||||||||
Total operating profit | 112,012 | 83,766 | 206,548 | 170,529 | ||||||||||||||||||||||
12.0 | % | 10.0 | % | 11.6 | % | 10.7 | % | |||||||||||||||||||
Deductions from operating profit: | ||||||||||||||||||||||||||
Interest expense | 18,003 | 14,963 | 34,697 | 28,095 | ||||||||||||||||||||||
Equity-based compensation expense | 3,047 | 2,791 | 7,212 | 5,765 | ||||||||||||||||||||||
Non-service pension expense | 3,191 | 3,115 | 6,378 | 6,214 | ||||||||||||||||||||||
Corporate and other expenses, net | 9,022 | 6,593 | 16,901 | 13,850 | ||||||||||||||||||||||
Earnings before income taxes | $ | 78,749 | $ | 56,304 | $ | 141,360 | $ | 116,605 |
Moog Inc. | ||
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 30, 2024 |
April 1, 2023 |
March 30, 2024 |
April 1, 2023 |
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Space and Defense operating profit - as reported | $ | 42,243 | $ | 27,507 | $ | 67,540 | $ | 47,801 | ||||||||||||||||||
Asset impairment | 304 | 219 | 304 | 219 | ||||||||||||||||||||||
Restructuring and other | — | 1,105 | — | 1,281 | ||||||||||||||||||||||
Space and Defense operating profit - as adjusted | $ | 42,547 | $ | 28,831 | $ | 67,844 | $ | 49,301 | ||||||||||||||||||
15.9 | % | 11.7 | % | 13.7 | % | 10.6 | % | |||||||||||||||||||
Military Aircraft operating profit - as reported | $ | 16,769 | $ | 16,181 | $ | 36,358 | $ | 31,382 | ||||||||||||||||||
Asset impairment | 6,446 | 1,000 | 6,446 | 1,000 | ||||||||||||||||||||||
Restructuring and other | 3,963 | — | 3,963 | — | ||||||||||||||||||||||
Military Aircraft operating profit - as adjusted | $ | 27,178 | $ | 17,181 | $ | 46,767 | $ | 32,382 | ||||||||||||||||||
13.4 | % | 9.4 | % | 12.0 | % | 9.0 | % | |||||||||||||||||||
Commercial Aircraft operating profit - as reported and adjusted | $ | 24,845 | $ | 15,681 | $ | 45,471 | $ | 30,198 | ||||||||||||||||||
12.0 | % | 9.5 | % | 11.3 | % | 10.2 | % | |||||||||||||||||||
Industrial operating profit - as reported | $ | 28,155 | $ | 24,397 | $ | 57,179 | $ | 61,148 | ||||||||||||||||||
Gain on sale of buildings | — | (527) | — | (10,030) | ||||||||||||||||||||||
Restructuring and other | 3,627 | 1,506 | 5,516 | 2,863 | ||||||||||||||||||||||
Industrial operating profit - as adjusted | $ | 31,782 | $ | 25,376 | $ | 62,695 | $ | 53,981 | ||||||||||||||||||
12.5 | % | 10.4 | % | 12.5 | % | 11.3 | % | |||||||||||||||||||
Total operating profit - as adjusted | $ | 126,352 | $ | 87,069 | $ | 222,777 | $ | 165,862 | ||||||||||||||||||
13.6 | % | 10.4 | % | 12.5 | % | 10.4 | % |
Moog Inc. | ||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||
(dollars in thousands) |
March 30, 2024 |
September 30, 2023 |
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ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 59,066 | $ | 68,959 | ||||||||||
Restricted cash | 665 | 185 | ||||||||||||
Receivables, net | 419,399 | 434,723 | ||||||||||||
Unbilled receivables | 794,167 | 706,601 | ||||||||||||
Inventories, net | 810,483 | 724,002 | ||||||||||||
Prepaid expenses and other current assets | 73,165 | 50,862 | ||||||||||||
Total current assets | 2,156,945 | 1,985,332 | ||||||||||||
Property, plant and equipment, net | 869,303 | 814,696 | ||||||||||||
Operating lease right-of-use assets | 57,074 | 56,067 | ||||||||||||
Goodwill | 828,469 | 821,301 | ||||||||||||
Intangible assets, net | 68,876 | 71,637 | ||||||||||||
Deferred income taxes | 9,063 | 8,749 | ||||||||||||
Other assets | 49,390 | 50,254 | ||||||||||||
Total assets | $ | 4,039,120 | $ | 3,808,036 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 267,731 | $ | 264,573 | ||||||||||
Accrued compensation | 73,961 | 111,154 | ||||||||||||
Contract advances and progress billings | 404,876 | 377,977 | ||||||||||||
Accrued liabilities and other | 257,960 | 211,769 | ||||||||||||
Total current liabilities | 1,004,528 | 965,473 | ||||||||||||
Long-term debt, excluding current installments | 948,615 | 863,092 | ||||||||||||
Long-term pension and retirement obligations | 160,265 | 157,455 | ||||||||||||
Deferred income taxes | 22,765 | 37,626 | ||||||||||||
Other long-term liabilities | 149,688 | 148,303 | ||||||||||||
Total liabilities | 2,285,861 | 2,171,949 | ||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock - Class A | 43,826 | 43,822 | ||||||||||||
Common stock - Class B | 7,454 | 7,458 | ||||||||||||
Additional paid-in capital | 702,272 | 608,270 | ||||||||||||
Retained earnings | 2,587,222 | 2,496,979 | ||||||||||||
Treasury shares | (1,071,558) | (1,057,938) | ||||||||||||
Stock Employee Compensation Trust | (153,295) | (114,769) | ||||||||||||
Supplemental Retirement Plan Trust | (129,709) | (93,126) | ||||||||||||
Accumulated other comprehensive loss | (232,953) | (254,609) | ||||||||||||
Total shareholders’ equity | 1,753,259 | 1,636,087 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 4,039,120 | $ | 3,808,036 |
Moog Inc. | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
(dollars in thousands) |
Six Months Ended | ||||||||||||||
March 30, 2024 |
April 1, 2023 |
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CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net earnings | $ | 107,815 | $ | 89,029 | ||||||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||||||||||||
Depreciation | 42,276 | 36,810 | ||||||||||||
Amortization | 5,296 | 5,862 | ||||||||||||
Deferred income taxes | (17,805) | (9,970) | ||||||||||||
Equity-based compensation expense | 7,212 | 5,765 | ||||||||||||
Gain on sale of buildings | — | (10,030) | ||||||||||||
Asset impairment and inventory write-down | 6,925 | 1,219 | ||||||||||||
Other | 2,207 | 3,292 | ||||||||||||
Changes in assets and liabilities providing (using) cash: | ||||||||||||||
Receivables | 17,469 | (10,836) | ||||||||||||
Unbilled receivables | (86,197) | (65,840) | ||||||||||||
Inventories | (77,396) | (72,346) | ||||||||||||
Accounts payable | 1,847 | 1,971 | ||||||||||||
Contract advances and progress billings | 24,512 | 17,067 | ||||||||||||
Accrued expenses | 903 | (33,030) | ||||||||||||
Accrued income taxes | 10,833 | 11,965 | ||||||||||||
Net pension and post retirement liabilities | 5,687 | 7,119 | ||||||||||||
Other assets and liabilities | (35,195) | (11,063) | ||||||||||||
Net cash provided (used) by operating activities | 16,389 | (33,016) | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (5,911) | — | ||||||||||||
Purchase of property, plant and equipment | (77,530) | (89,743) | ||||||||||||
Net proceeds from businesses sold | — | 959 | ||||||||||||
Net proceeds from buildings sold | — | 18,825 | ||||||||||||
Other investing transactions | (515) | (4,241) | ||||||||||||
Net cash used by investing activities | (83,956) | (74,200) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Proceeds from revolving lines of credit | 509,500 | 503,232 | ||||||||||||
Payments on revolving lines of credit | (425,000) | (381,300) | ||||||||||||
Payments on long-term debt | — | (188) | ||||||||||||
Payments on finance lease obligations | (2,741) | (1,899) | ||||||||||||
Payment of dividends | (17,572) | (16,859) | ||||||||||||
Proceeds from sale of treasury stock | 7,579 | 9,148 | ||||||||||||
Purchase of outstanding shares for treasury | (20,238) | (20,457) | ||||||||||||
Proceeds from sale of stock held by SECT | 15,788 | 9,795 | ||||||||||||
Purchase of stock held by SECT | (9,407) | (7,221) | ||||||||||||
Other financing transactions | — | (2,024) | ||||||||||||
Net cash provided by financing activities | 57,909 | 92,227 | ||||||||||||
Effect of exchange rate changes on cash | 245 | 5,410 | ||||||||||||
Decrease in cash, cash equivalents and restricted cash | (9,413) | (9,579) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 69,144 | 119,233 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 59,731 | $ | 109,654 | ||||||||||
Moog Inc. | ||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 30, 2024 |
April 1, 2023 |
March 30, 2024 |
April 1, 2023 |
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Net cash provided (used) by operating activities | $ | (44,002) | $ | (41,099) | $ | 16,389 | $ | (33,016) | ||||||||||||||||||
Purchase of property, plant and equipment | (40,114) | (59,618) | (77,530) | (89,743) | ||||||||||||||||||||||
Free cash flow | $ | (84,116) | $ | (100,717) | $ | (61,141) | $ | (122,759) | ||||||||||||||||||
Release Date: | April 26, 2024 | ||||||||||
IMMEDIATE |