Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial
results for the quarter and fiscal year ended October 1, 2022.
Fourth Quarter Highlights
- Sales of $768 million, up 6% from a year ago;
- Operating margin of 8.6% and adjusted operating margin of
10.4%, up 80 basis points from a year ago;
- Effective tax rate of 31.6%;
- Diluted earnings per share of $0.92;
- Adjusted diluted earnings per share of $1.36, up 8% from a year
ago; and
- $63 million in cash flow from operating activities and $52
million in adjusted cash flow from operating activities.
Full-Year 2022 Highlights
- Sales of $3.0 billion, up 6% from a year ago;
- Operating margin of 9.3% and adjusted operating margin of
10.2%, up 50 basis points from a year ago;
- Effective tax rate of 23.6%;
- Diluted earnings per share of $4.83;
- Adjusted diluted earnings per share of $5.56, up 14% from a
year ago; and
- $247 million in cash flow from operating activities and $147
million in adjusted cash flow from operating activities.
Fiscal 2023 Guidance
- Sales of $3.2 billion, a 5% increase;
- Full year operating margin of 11.0%, up 80 basis points;
- Tax rate of 25.0%;
- Diluted earnings per share of $5.70, plus or minus $0.20;
and
- $280 million in cash flow from operating activities.
Segment Results
Aircraft Controls segment revenues in the quarter were $324
million, 9% higher year over year. Commercial aircraft revenues
were $137 million, a 39% increase. Sales to commercial OEM
customers were $95 million, driven by increases in sales for the
Boeing book of business and strength in business jet sales.
Commercial aftermarket sales increased 46% on strong repair and
overhaul activity and higher 787 and A350 spares.
Military aircraft sales were $186 million, 6% lower year over
year. Military OEM sales were down 6%, at $135 million. Supply
chain constraints on the F-35 and V-22 programs contributed to the
sales reduction. Military aftermarket sales were also off 6%.
Full-year Aircraft Controls segment sales increased 8%, to $1.26
billion. Commercial aircraft sales were 35% higher on OEM
production rates. Commercial aftermarket sales were very strong, up
59%, as the recovery in air traffic accelerated. Total military
aircraft sales were off 5%, at $745 million. Military OEM sales
totaled $540 million, down 6% from a year ago, mostly tied to
slower F-35 activity. Military aftermarket sales were down 1%, as
lower F-18 and B-2 repairs were only partially offset by higher
V-22 and F-15 repair volume.
Space and Defense segment revenue in the quarter was $217
million, an increase of 9% year over year. Defense sales of $143
million increased 20%. The continued production ramp on the RIwP®
turret for M-SHORAD drove the increase. Space sales were down 8%,
to $75 million, on slowing hypersonic development and NASA launch
vehicle activity.
Space and Defense sales for the year increased 9%, to $872
million. Defense sales of $535 million were 15% higher as the RIwP
turret production ramped. Space sales were $338 million, up 1%.
Increased spacecraft component and avionics sales were partially
offset by decreases in funded development and NASA activity.
Industrial Systems segment revenues in the quarter were $227
million, in line with a year ago. Excluding the impact of foreign
exchange movements, underlying sales increased 6%. Sales of
products for industrial automation applications were $111 million,
up 3% on demand for factory automation equipment. Medical product
sales were $62 million, also up 3%, driven by growth of components
used by OEMs. Energy sales were mostly flat at $31 million. Sales
of simulation and test products were $23 million, down 10%.
Full-year Industrial Systems segment sales were $907 million, up
2%. Excluding the impact of foreign exchange movements, underlying
sales increased 5%. Industrial automation sales of $435 million
were 2% higher. Energy sales were up 4%, to $126 million.
Simulation and test sales increased 12% as the flight simulator
market improved. Sales of medical pumps and associated products, at
$247 million, were 3% lower.
Consolidated 12-month backlog was $2.3 billion, up 9% from a
year ago.
“Fiscal ’22 was a record year for the company in terms of both
sales and adjusted earnings per share,” said John Scannell,
Chairman and CEO. “Our commercial aircraft business recovered
nicely and demand for our products was strong across all our major
markets. The disruption from COVID receded during the course of the
year but was replaced with supply chain challenges and labor
constraints. Despite these challenges, the company performed
extremely well. We are excited about our prospects for the future.
As we look to fiscal ’23, we anticipate another year of organic
growth and margin expansion.”
In conjunction with today’s release, Moog Inc. will host a
conference call today beginning at 10:00 a.m. ET, which will be
broadcast live over the Internet. John Scannell, Chairman and CEO,
and Jennifer Walter, CFO, will host the call.
Listeners can access the call live or in replay mode at
www.moog.com/investors/communications. Supplemental financial data
will be available on the webcast web page 90 minutes prior to the
conference call.
About Moog Inc.
Moog Inc. is a worldwide designer, manufacturer, and integrator
of precision control components and systems. Moog’s
high-performance systems control military and commercial aircraft,
satellites and space vehicles, launch vehicles, missiles, automated
industrial machinery, marine and medical equipment. Additional
information about the company can be found at www.moog.com.
CAUTIONARY STATEMENT
Information included or incorporated by reference in this press
release that does not consist of historical facts, including
statements accompanied by or containing words such as “may,”
“will,” “should,” “believes,” “expects,” “expected,” “intends,”
“plans,” “projects,” “approximate,” “estimates,” “predicts,”
“potential,” “outlook,” “forecast,” “anticipates,” “presume” and
“assume,” are forward-looking statements. Such forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not guarantees of future performance
and are subject to several factors, risks and uncertainties, the
impact or occurrence of which could cause actual results to differ
materially from the expected results described in the
forward-looking statements. In evaluating these forward-looking
statements, you should carefully consider the factors set forth
below.
Although it is not possible to create a comprehensive list of
all factors that may cause actual results to differ from the
results expressed or implied by our forward-looking statements or
that may affect our future results, some of these factors and other
risks and uncertainties that arise from time to time are described
in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in
our other periodic filings with the SEC and include the
following:
STRATEGIC RISKS
- We operate in highly competitive markets with competitors who
may have greater resources than we possess;
- Our research and development and innovation efforts are
substantial and may not be successful, which could reduce our sales
and earnings;
- If we are unable to adequately enforce and protect our
intellectual property or defend against assertions of infringement,
our business and our ability to compete could be harmed; and
- Our sales and earnings may be affected if we cannot identify,
acquire or integrate strategic acquisitions, or as we conduct
divestitures.
MARKET CONDITION RISKS
- The markets we serve are cyclical and sensitive to domestic and
foreign economic conditions and events, which may cause our
operating results to fluctuate;
- We depend heavily on government contracts that may not be fully
funded or may be terminated, and the failure to receive funding or
the termination of one or more of these contracts could reduce our
sales and increase our costs;
- The loss of The Boeing Company or Lockheed Martin as a customer
or a significant reduction in sales to either company could
adversely impact our operating results; and
- We may not realize the full amounts reflected in our backlog as
revenue, which could adversely affect our future revenue and growth
prospects.
OPERATIONAL RISKS
- A reduced supply, as well as inflated prices, across various
raw materials and third-party provided components and
sub-assemblies within our supply chain could have a material impact
on our ability to manufacture and ship our products, in addition to
adversely impacting our operating profit and balance sheet;
- We face various risks related to health pandemics, such as the
COVID-19 pandemic, which have had material adverse consequences on
our operations, financial position, cash flows, and those of our
customers and suppliers;
- If our subcontractors or suppliers fail to perform their
contractual obligations, our prime contract performance and our
ability to obtain future business could be materially and adversely
impacted;
- We face, and may continue to face, risks related to information
systems interruptions, intrusions and or new software
implementations, which may adversely affect our business
operations;
- We may not be able to prevent, or timely detect, issues with
our products and our manufacturing processes which may adversely
affect our operations and our earnings; and
- The failure or misuse of our products may damage our
reputation, necessitate a product recall or result in claims
against us that exceed our insurance coverage, thereby requiring us
to pay significant damages.
FINANCIAL RISKS
- We make estimates in accounting for over-time contracts, and
changes in these estimates may have significant impacts on our
earnings;
- We enter into fixed-price contracts, which could subject us to
losses if we have cost overruns;
- Our indebtedness and restrictive covenants under our credit
facilities and indenture governing our senior notes could limit our
operational and financial flexibility;
- Significant changes in discount rates, rates of return on
pension assets, mortality tables and other factors could adversely
affect our earnings and equity and increase our pension funding
requirements;
- A write-off of all or part of our goodwill or other intangible
assets could adversely affect our operating results and net worth;
and
- Unforeseen exposure to additional income tax liabilities may
affect our operating results.
LEGAL AND COMPLIANCE RISKS
- Contracting on government programs is subject to significant
regulation, including rules related to bidding, billing and
accounting standards, and any false claims or non-compliance could
subject us to fines, penalties or possible debarment;
- Our operations in foreign countries expose us to currency,
political and trade risks and adverse changes in local legal and
regulatory environments could impact our results of
operations;
- Government regulations could limit our ability to sell our
products outside the United States and otherwise adversely affect
our business;
- We are involved in various legal proceedings, the outcome of
which may be unfavorable to us;
- Our operations are subject to environmental laws and complying
with those laws may cause us to incur significant costs; and
- We may face reputational, regulatory or financial risks from a
perceived, or an actual, failure to achieve our Environmental,
Social and Governance ("ESG") goals.
GENERAL RISKS
- Future terror attacks, war, natural disasters or other
catastrophic events beyond our control could negatively impact our
business; and
- Our performance could suffer if we cannot maintain our culture
as well as attract, retain and engage our employees.
While we believe we have identified and discussed above the
material risks affecting our business, there may be additional
factors, risks and uncertainties not currently known to us or that
we currently consider immaterial that may affect the
forward-looking statements made herein. Given these factors, risks
and uncertainties, investors should not place undue reliance on
forward-looking statements as predictive of future results. Any
forward-looking statement speaks only as of the date on which it is
made, and we disclaim any obligation to update any forward-looking
statement made in this report, except as required by law.
Moog Inc.
CONSOLIDATED STATEMENTS OF
EARNINGS (UNAUDITED)
(dollars in thousands, except
per share data)
Three Months Ended
Twelve Months Ended
October 1, 2022
October 2, 2021
October 1, 2022
October 2, 2021
Net sales
$
767,999
$
724,285
$
3,035,783
$
2,851,993
Cost of sales
564,642
528,716
2,211,384
2,076,270
Inventory write-down
191
—
3,598
—
Gross profit
203,166
195,569
820,801
775,723
Research and development
25,209
33,972
109,527
125,528
Selling, general and administrative
111,829
106,697
448,531
412,028
Interest
11,381
8,604
36,757
33,892
Asset impairment
2,125
1,500
18,053
1,500
Restructuring
1,140
—
9,509
—
Loss on sale of businesses
19,492
1,536
3,346
1,536
Gain on sale of building
(9,075
)
—
(9,075
)
—
Other
(1,969
)
580
1,174
(2,535
)
Earnings before income taxes
43,034
42,680
202,979
203,774
Income taxes
13,618
8,112
47,802
46,554
Net earnings
$
29,416
$
34,568
$
155,177
$
157,220
Net earnings per share
Basic
$
0.92
$
1.08
$
4.85
$
4.90
Diluted
$
0.92
$
1.07
$
4.83
$
4.87
Average common shares outstanding
Basic
31,945,478
32,104,127
31,977,482
32,112,589
Diluted
32,086,583
32,274,296
32,117,028
32,297,956
Moog Inc.
RECONCILIATION TO ADJUSTED NET
EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTIVE NET
EARNINGS PER SHARE
(dollars in thousands)
Three Months Ended
Twelve Months Ended
October 1, 2022
October 2, 2021
October 1, 2022
October 2, 2021
As Reported:
Earnings before income taxes
$
43,034
$
42,680
$
202,979
$
203,774
Income taxes
13,618
8,112
47,802
46,554
Effective income tax rate
31.6
%
19.0
%
23.6
%
22.8
%
Net earnings
29,416
34,568
155,177
157,220
Diluted net earnings per share
$
0.92
$
1.07
$
4.83
$
4.87
Loss on Sale of Businesses:
Earnings before income taxes
$
19,492
$
1,536
$
3,346
$
1,536
Income taxes
970
(461
)
(3,303
)
(461
)
Net earnings
18,522
1,997
6,649
1,997
Diluted net earnings per share
$
0.58
$
0.06
$
0.21
$
0.06
Gain on Sale of Building:
Earnings before income taxes
$
(9,075
)
$
—
$
(9,075
)
$
—
Income taxes
(2,142
)
—
(2,142
)
—
Net earnings
(6,933
)
—
(6,933
)
—
Diluted net earnings per share
$
(0.22
)
$
—
$
(0.22
)
$
—
Pension Curtailment Gain:
Earnings before income taxes
$
—
$
—
$
—
$
(5,830
)
Income taxes
—
—
—
—
Net earnings
—
—
—
(5,830
)
Diluted net earnings per share
$
—
$
—
$
—
$
(0.18
)
Other Charges:
Earnings before income taxes
$
3,457
$
5,368
$
31,160
$
5,368
Income taxes
845
1,227
7,447
1,227
Net earnings
2,612
4,141
23,713
4,141
Diluted net earnings per share
$
0.08
$
0.13
$
0.74
$
0.13
As Adjusted:
Earnings before income taxes
$
56,908
$
49,584
$
228,410
$
204,848
Income taxes
13,291
8,878
49,804
47,320
Effective income tax rate
23.4
%
17.9
%
21.8
%
23.1
%
Net earnings
43,617
40,706
178,606
157,528
Diluted net earnings per share
$
1.36
$
1.26
$
5.56
$
4.88
The diluted net earnings per share
associated with the adjustments have been calculated individually
and in total using the quarterly average outstanding shares in the
period in which the adjustments occurred. Accordingly, adjusted
diluted net earnings per share may not reconcile when totaled due
to rounding.
Results shown above have been adjusted to exclude impacts
associated with the sale of a building located in Salt Lake City
used in our Industrial Systems operations during 2022, a pension
curtailment gain in 2021, and the sale of businesses during each
period presented. In addition, inventory write-down charges, asset
impairment and restructuring related to the impact of continued
portfolio shaping activities and the Ukraine crisis have also been
excluded. While management believes that these adjusted financial
measures may be useful in evaluating the financial condition and
results of operations of the Company, this information should be
considered supplemental and is not a substitute for financial
information prepared in accordance with GAAP.
Moog Inc.
RECONCILIATION OF NET EARNINGS
TO ADJUSTED EBITDA
(dollars in thousands)
Three Months Ended
Twelve Months Ended
October 1, 2022
October 2, 2021
October 1, 2022
October 2, 2021
Net earnings
$
29,416
$
34,568
$
155,177
$
157,220
Add back (deduct):
Income taxes
13,618
8,112
47,802
46,554
Interest
11,381
8,604
36,757
33,892
Depreciation
19,070
19,865
75,238
76,671
Amortization
3,153
3,488
13,151
13,488
Loss on sale of businesses
19,492
1,536
3,346
1,536
Gain on sale of building
(9,075
)
—
(9,075
)
—
Pension curtailment gain
—
—
—
(5,830
)
Other Charges:
Inventory write-down
192
—
3,598
—
Asset impairment
2,125
1,500
18,053
1,500
Restructuring and other
1,140
3,868
9,509
3,868
Adjusted EBITDA
$
90,512
$
81,541
$
353,556
$
328,899
Adjusted EBITDA is defined as net earnings before income taxes,
interest, depreciation, amortization, and other adjustments.
Adjusted EBITDA is not a measure determined in accordance with GAAP
and may not be comparable with the measures as used by other
companies, however management believes this adjusted financial
measure may be useful in evaluating the financial condition and
results of operations of the Company. This information should be
considered supplemental and is not a substitute for financial
information prepared in accordance with GAAP.
Moog Inc.
CONSOLIDATED SALES AND
OPERATING PROFIT (UNAUDITED)
(dollars in thousands)
Three Months Ended
Twelve Months Ended
October 1, 2022
October 2, 2021
October 1, 2022
October 2, 2021
Net sales:
Aircraft Controls
$
323,859
$
297,972
$
1,256,461
$
1,161,238
Space and Defense Controls
217,494
200,018
872,343
799,235
Industrial Systems
226,646
226,295
906,979
891,520
Net sales
$
767,999
$
724,285
$
3,035,783
$
2,851,993
Operating profit:
Aircraft Controls
$
34,811
$
26,193
$
123,620
$
96,678
10.7
%
8.8
%
9.8
%
8.3
%
Space and Defense Controls
16,102
17,296
86,844
88,333
7.4
%
8.6
%
10.0
%
11.1
%
Industrial Systems
14,986
19,233
72,384
85,948
6.6
%
8.5
%
8.0
%
9.6
%
Total operating profit
65,899
62,722
282,848
270,959
8.6
%
8.7
%
9.3
%
9.5
%
Deductions from operating profit:
Interest expense
11,381
8,604
36,757
33,892
Equity-based compensation expense
2,135
1,041
8,882
7,461
Non-service pension expense (income)
1,673
859
6,072
(2,194
)
Corporate and other expenses, net
7,676
9,538
28,158
28,026
Earnings before income taxes
$
43,034
$
42,680
$
202,979
$
203,774
Moog Inc.
RECONCILIATION TO ADJUSTED
OPERATING PROFIT AND MARGINS
(dollars in thousands)
Three Months Ended
Twelve Months Ended
October 1, 2022
October 2, 2021
October 1, 2022
October 2, 2021
Aircraft Controls operating profit - as
reported
$
34,811
$
26,193
$
123,620
$
96,678
Gain on sale of business
—
—
(16,146
)
—
Other charges
—
—
19,484
—
Aircraft Controls operating profit - as
adjusted
$
34,811
$
26,193
$
126,958
$
96,678
10.7
%
8.8
%
10.1
%
8.3
%
Space and Defense Controls operating
profit - as reported
$
16,102
$
17,296
$
86,844
$
88,333
Loss on sale of business
4,112
—
4,112
—
Other charges
331
2,510
3,755
2,510
Space and Defense Controls operating
profit - as adjusted
$
20,545
$
19,806
$
94,711
$
90,843
9.4
%
9.9
%
10.9
%
11.4
%
Industrial Systems operating profit - as
reported
$
14,986
$
19,233
$
72,384
$
85,948
Loss on sale of business
15,379
1,536
15,379
1,536
Gain on sale of building
(9,075
)
—
(9,075
)
—
Other charges
3,126
2,858
7,922
2,858
Industrial Systems operating profit - as
adjusted
$
24,416
$
23,627
$
86,610
$
90,342
10.8
%
10.4
%
9.5
%
10.1
%
Total operating profit - as adjusted
$
79,772
$
69,626
$
308,279
$
277,863
10.4
%
9.6
%
10.2
%
9.7
%
Moog Inc.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(dollars in thousands)
October 1, 2022
October 2, 2021
ASSETS
Current assets
Cash and cash equivalents
$
103,895
$
99,599
Restricted cash
15,338
1,315
Receivables, net
990,262
945,929
Inventories, net
588,466
613,095
Prepaid expenses and other current
assets
60,349
58,842
Total current assets
1,758,310
1,718,780
Property, plant and equipment, net
668,908
645,778
Operating lease right-of-use assets
69,072
60,355
Goodwill
805,320
851,605
Intangible assets, net
85,410
106,095
Deferred income taxes
8,630
17,769
Other assets
36,191
32,787
Total assets
$
3,431,841
$
3,433,169
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities
Current installments of long-term debt
$
916
$
80,365
Accounts payable
232,104
200,602
Accrued compensation
93,141
112,703
Contract advances
296,899
263,686
Accrued liabilities and other
215,376
212,005
Total current liabilities
838,436
869,361
Long-term debt, excluding current
installments
836,872
823,355
Long-term pension and retirement
obligations
140,602
162,728
Deferred income taxes
63,527
64,642
Other long-term liabilities
115,591
112,939
Total liabilities
1,995,028
2,033,025
Shareholders’ equity
Common stock - Class A
43,807
43,803
Common stock - Class B
7,473
7,477
Additional paid-in capital
516,123
509,622
Retained earnings
2,360,055
2,237,848
Treasury shares
(1,047,012
)
(1,007,506
)
Stock Employee Compensation Trust
(73,602
)
(79,776
)
Supplemental Retirement Plan Trust
(58,989
)
(63,764
)
Accumulated other comprehensive loss
(311,042
)
(247,560
)
Total shareholders’ equity
1,436,813
1,400,144
Total liabilities and shareholders’
equity
$
3,431,841
$
3,433,169
Moog Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(dollars in thousands)
Twelve Months Ended
October 1, 2022
October 2, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings
$
155,177
$
157,220
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation
75,238
76,671
Amortization
13,151
13,488
Deferred income taxes
11,739
8,162
Equity-based compensation expense
8,882
7,461
Loss on sale of business
3,346
1,536
Asset impairment and Inventory
write-down
21,651
1,500
Other
(2,257
)
(791
)
Changes in assets and liabilities
providing (using) cash:
Receivables
(86,867
)
(73,459
)
Inventories
(28,677
)
19,576
Accounts payable
43,349
20,520
Contract advances
42,097
59,298
Accrued expenses
(4,445
)
2,290
Accrued income taxes
3,070
4,653
Net pension and post retirement
liabilities
18,093
12,503
Other assets and liabilities
(26,745
)
(17,402
)
Net cash provided by operating
activities
246,802
293,226
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash
acquired
(11,832
)
(77,600
)
Purchase of property, plant and
equipment
(139,431
)
(128,734
)
Net proceeds from businesses and buildings
sold
70,612
14,675
Other investing transactions
(2,668
)
502
Net cash used by investing activities
(83,319
)
(191,157
)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of
credit
840,475
799,950
Payments on revolving lines of credit
(827,801
)
(838,936
)
Proceeds from long-term debt
—
78,700
Payments on long-term debt
(80,364
)
(68,080
)
Payments on finance lease obligations
(2,524
)
(2,156
)
Payment of dividends
(32,970
)
(32,106
)
Proceeds from sale of treasury stock
18,414
10,866
Purchase of outstanding shares for
treasury
(48,558
)
(31,673
)
Proceeds from sale of stock held by
SECT
13,250
679
Purchase of stock held by SECT
(14,830
)
(4,239
)
Net cash used by financing activities
(134,908
)
(86,995
)
Effect of exchange rate changes on
cash
(10,256
)
768
Increase in cash, cash equivalents and
restricted cash
18,319
15,842
Cash, cash equivalents and restricted cash
at beginning of period
100,914
85,072
Cash, cash equivalents and restricted cash
at end of period
$
119,233
$
100,914
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221104005148/en/
Ann Marie Luhr 716-687-4225
Grafico Azioni Moog (NYSE:MOG.A)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Moog (NYSE:MOG.A)
Storico
Da Giu 2023 a Giu 2024