Latest News by Industry
EAST AURORA, N.Y.--(BUSINESS WIRE)--Apr 28, 2023--
Moog Inc. (NYSE: MOG.A and MOG.B), a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and controls systems, today reported second quarter 2023 diluted earnings per share of $1.34 and adjusted diluted earnings per share of $1.42.
(in millions, except per share results) |
|
|
| ||||||
| Q2 2023 | Q2 2022 | Deltas | ||||||
Net sales | $ | 837 |
| $ | 771 |
|
| 9 | % |
Operating margin |
| 10.0 | % |
| 7.4 | % | 260 bps | ||
Adjusted operating margin |
| 10.4 | % |
| 10.6 | % | -20 bps | ||
Diluted net earnings per share | $ | 1.34 |
| $ | 0.91 |
|
| 47 | % |
Adjusted diluted net earnings per share | $ | 1.42 |
| $ | 1.49 |
|
| (5 | ) % |
Adjusted free cash flow | $ | (101 | ) | $ | (24 | ) | $ | (76 | ) |
See the reconciliations of adjusted financial results to reported results included in the financial statements herein for the quarters ended April 1, 2023 and April 2, 2022. |
Quarter Highlights
"Our sales were remarkable this quarter, a proud record for our company," said Pat Roche, CEO. "Adjusted operating margin performance through the first half of the year was better than prior year and will be stronger in the second half of FY23. We took a big step in our simplification journey by moving away from a matrixed structure in Aircraft Controls towards two separate businesses. This change will drive greater clarity and performance.”
Segment Results
Aircraft Controls sales in the second quarter of 2023 increased 11%. Sales for commercial OEM programs increased significantly, up 56%, driven by market recovery in widebody aircraft and business jet activity. Commercial aftermarket increased 21% due to higher spares volume. Military OEM sales were down 5% reflecting lower funded development activity. Military aftermarket was down 18% compared to a very strong quarter a year ago. Adjusted operating margin was 9.5%, a 50 basis-point decrease, the result of an unfavorable sales mix in the quarter.
Space and Defense Controls sales increased 10% in the second quarter of 2023, mostly driven by increased activity in the avionics business and the ramp to full-rate production for the reconfigurable turret. Adjusting for the divestiture of the security business last year, segment sales increased 12%. Adjusted operating margin was 11.7%, 10 basis points higher than last year’s second quarter. Benefits associated with higher sales and improvements in the core business were mostly offset by additional charges on our space vehicle development programs.
Industrial Systems sales increased 3%. Excluding foreign currency movements and last year’s sonar business divestiture, sales increased 8%. The underlying sales growth was related to continued recovery in industrial automation products. Sales of medical products were mostly unchanged while simulation and test products were lower on order timing. Adjusting for last year’s divestiture, energy sales were unchanged. Adjusted operating margin of 10.4% decreased 10 basis points, reflecting operational charges taken in the quarter, offset by incremental sales volume.
Free Cash Flow Results
Adjusted free cash flow in the second quarter was a use of cash of $101 million. Capital expenditures were $60 million in the quarter and included $28 million for the purchase of a building to support business growth. Working capital pressure was tied to receivables growth associated with higher sales, supply chain constraints, and the work-down of customer advances for defense programs.
2023 Financial Guidance
“We are increasing our sales guidance slightly to $3.2 billion," said Jennifer Walter, CFO. "In addition, we are reiterating our fiscal year 2023 guidance for the company’s adjusted operating margin and adjusted earnings per share. Overall, we had a good first half of the year and our outlook for the rest of the year looks strong."
(in millions, except per share results) |
|
| ||||
| FY 2023 Guidance | |||||
| Current | Previous | ||||
Net sales | $ | 3,190 |
| $ | 3,175 |
|
Operating margin |
| 11.1 | % |
| 11.2 | % |
Adjusted operating margin |
| 11.0 | % |
| 11.0 | % |
Diluted net earnings per share | $ | 5.81 |
| $ | 5.89 |
|
Adjusted diluted net earnings per share | $ | 5.70 |
| $ | 5.70 |
|
Free cash flow | $ | — |
| $ | 100 |
|
Earnings per share figures are forecasted to be within range of +/- $0.20. |
|
|
Free cash flow guidance is now zero. This change reflects an increase in working capital requirements largely due to the second quarter pressures, and investments to support the business.
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. Pat Roche, 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.
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
Market condition risks
Operational risks
Financial risks
Legal and compliance risks
General risks
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 |
| Six Months Ended | |||||||||||
|
| April 1, |
| April 2, |
| April 1, |
| April 2, | |||||||
Net sales |
| $ | 836,792 |
|
| $ | 770,787 |
| $ | 1,596,895 |
|
| $ | 1,494,873 |
|
Cost of sales |
|
| 615,477 |
|
|
| 556,070 |
|
| 1,171,894 |
|
|
| 1,085,776 |
|
Inventory write-down |
|
| — |
|
|
| 1,705 |
|
| — |
|
|
| 3,205 |
|
Gross profit |
|
| 221,315 |
|
|
| 213,012 |
|
| 425,001 |
|
|
| 405,892 |
|
Research and development |
|
| 26,743 |
|
|
| 30,720 |
|
| 50,605 |
|
|
| 58,428 |
|
Selling, general and administrative |
|
| 116,695 |
|
|
| 111,019 |
|
| 229,860 |
|
|
| 222,816 |
|
Interest |
|
| 14,963 |
|
|
| 8,263 |
|
| 28,095 |
|
|
| 16,245 |
|
Asset impairment |
|
| 1,219 |
|
|
| 15,236 |
|
| 1,219 |
|
|
| 15,236 |
|
Restructuring |
|
| 2,017 |
|
|
| 7,793 |
|
| 3,095 |
|
|
| 7,793 |
|
Gain on sale of businesses |
|
| — |
|
|
| — |
|
| — |
|
|
| (16,146 | ) |
Gain on sale of buildings |
|
| (527 | ) |
|
| — |
|
| (10,030 | ) |
|
| — |
|
Other |
|
| 3,901 |
|
|
| 1,268 |
|
| 5,552 |
|
|
| 1,384 |
|
Earnings before income taxes |
|
| 56,304 |
|
|
| 38,713 |
|
| 116,605 |
|
|
| 100,136 |
|
Income taxes |
|
| 13,291 |
|
|
| 9,626 |
|
| 27,576 |
|
|
| 24,784 |
|
Net earnings |
| $ | 43,013 |
|
| $ | 29,087 |
| $ | 89,029 |
|
| $ | 75,352 |
|
|
|
|
|
|
|
|
|
| |||||||
Net earnings per share |
|
|
|
|
|
|
|
| |||||||
Basic |
| $ | 1.35 |
|
| $ | 0.91 |
| $ | 2.80 |
|
| $ | 2.35 |
|
Diluted |
| $ | 1.34 |
|
| $ | 0.91 |
| $ | 2.79 |
|
| $ | 2.34 |
|
|
|
|
|
|
|
|
|
| |||||||
Average common shares outstanding |
|
|
|
|
|
|
|
| |||||||
Basic |
|
| 31,848,140 |
|
|
| 31,984,674 |
|
| 31,797,071 |
|
|
| 32,021,036 |
|
Diluted |
|
| 32,043,910 |
|
|
| 32,120,726 |
|
| 31,959,315 |
|
|
| 32,154,442 |
|
| Moog Inc. | ||||||||||||||||
RECONCILIATION TO ADJUSTED NET EARNINGS BEFORE TAXES, INCOMES TAXES, NET EARNINGS AND DILUTIVE NET EARNINGS PER SHARE (UNAUDITED) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
| April 1, |
| April 2, |
| April 1, |
| April 2, | ||||||||
As Reported: |
|
|
|
|
|
|
|
| ||||||||
Earnings before income taxes |
| $ | 56,304 |
|
| $ | 38,713 |
|
| $ | 116,605 |
|
| $ | 100,136 |
|
Income taxes |
|
| 13,291 |
|
|
| 9,626 |
|
|
| 27,576 |
|
|
| 24,784 |
|
Effective income tax rate |
|
| 23.6 | % |
|
| 24.9 | % |
|
| 23.6 | % |
|
| 24.8 | % |
Net earnings |
|
| 43,013 |
|
|
| 29,087 |
|
|
| 89,029 |
|
|
| 75,352 |
|
Diluted net earnings per share |
| $ | 1.34 |
|
| $ | 0.91 |
|
| $ | 2.79 |
|
| $ | 2.34 |
|
|
|
|
|
|
|
|
|
| ||||||||
Loss (Gain) on Sale of Business: |
|
|
|
|
|
|
|
| ||||||||
Earnings before income taxes |
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | (16,146 | ) |
Income taxes |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (4,273 | ) |
Net earnings |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11,873 | ) |
Diluted net earnings per share |
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | (0.37 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Loss (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 | ) |
| $ | — |
|
|
|
|
|
|
|
|
|
| ||||||||
Other Charges: |
|
|
|
|
|
|
|
| ||||||||
Earnings before income taxes |
| $ | 3,830 |
|
| $ | 24,734 |
|
| $ | 5,363 |
|
| $ | 26,234 |
|
Income taxes |
|
| 926 |
|
|
| 5,883 |
|
|
| 1,200 |
|
|
| 6,237 |
|
Net earnings |
|
| 2,904 |
|
|
| 18,851 |
|
|
| 4,163 |
|
|
| 19,997 |
|
Diluted net earnings per share |
| $ | 0.09 |
|
| $ | 0.59 |
|
| $ | 0.13 |
|
| $ | 0.62 |
|
|
|
|
|
|
|
|
|
| ||||||||
As Adjusted: |
|
|
|
|
|
|
|
| ||||||||
Earnings before income taxes |
| $ | 59,607 |
|
| $ | 63,447 |
|
| $ | 111,938 |
|
| $ | 110,224 |
|
Income taxes |
|
| 14,117 |
|
|
| 15,509 |
|
|
| 26,690 |
|
|
| 26,748 |
|
Effective income tax rate |
|
| 23.7 | % |
|
| 24.4 | % |
|
| 23.8 | % |
|
| 24.3 | % |
Net earnings |
|
| 45,490 |
|
|
| 47,938 |
|
|
| 85,248 |
|
|
| 83,476 |
|
Diluted net earnings per share |
| $ | 1.42 |
|
| $ | 1.49 |
|
| $ | 2.67 |
|
| $ | 2.60 |
|
The diluted net earnings per share associated with the adjustments in the table above may not reconcile when totaled due to rounding. |
Results shown above have been adjusted to exclude impacts associated with the sale of the NavAids business in Aircraft Controls, sale of buildings formerly used in Industrial Systems, as well as, restructuring, inventory write-downs and other charges related to the impact of continued portfolio shaping activities and the Ukraine crisis. 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. | ||||||||||||||||
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
| April 1, |
| April 2, |
| April 1, |
| April 2, | ||||||||
Net sales: |
|
|
|
|
|
|
|
| ||||||||
Aircraft Controls |
| $ | 347,004 |
|
| $ | 311,268 |
|
| $ | 657,263 |
|
| $ | 614,585 |
|
Space and Defense Controls |
|
| 245,853 |
|
|
| 223,349 |
|
|
| 463,638 |
|
|
| 431,205 |
|
Industrial Systems |
|
| 243,935 |
|
|
| 236,170 |
|
|
| 475,994 |
|
|
| 449,083 |
|
Net sales |
| $ | 836,792 |
|
| $ | 770,787 |
|
| $ | 1,596,895 |
|
| $ | 1,494,873 |
|
Operating profit: |
|
|
|
|
|
|
|
| ||||||||
Aircraft Controls |
| $ | 31,862 |
|
| $ | 12,441 |
|
| $ | 61,580 |
|
| $ | 54,356 |
|
|
|
| 9.2 | % |
|
| 4.0 | % |
|
| 9.4 | % |
|
| 8.8 | % |
Space and Defense Controls |
|
| 27,507 |
|
|
| 24,075 |
|
|
| 47,801 |
|
|
| 45,374 |
|
|
|
| 11.2 | % |
|
| 10.8 | % |
|
| 10.3 | % |
|
| 10.5 | % |
Industrial Systems |
|
| 24,397 |
|
|
| 20,723 |
|
|
| 61,148 |
|
|
| 37,914 |
|
|
|
| 10.0 | % |
|
| 8.8 | % |
|
| 12.8 | % |
|
| 8.4 | % |
Total operating profit |
|
| 83,766 |
|
|
| 57,239 |
|
|
| 170,529 |
|
|
| 137,644 |
|
|
|
| 10.0 | % |
|
| 7.4 | % |
|
| 10.7 | % |
|
| 9.2 | % |
Deductions from operating profit: |
|
|
|
|
|
|
|
| ||||||||
Interest expense |
|
| 14,963 |
|
|
| 8,263 |
|
|
| 28,095 |
|
|
| 16,245 |
|
Equity-based compensation expense |
|
| 2,791 |
|
|
| 1,920 |
|
|
| 5,765 |
|
|
| 4,578 |
|
Non-service pension expense |
|
| 3,115 |
|
|
| 1,472 |
|
|
| 6,214 |
|
|
| 2,957 |
|
Corporate and other expenses, net |
|
| 6,593 |
|
|
| 6,871 |
|
|
| 13,850 |
|
|
| 13,728 |
|
Earnings before income taxes |
| $ | 56,304 |
|
| $ | 38,713 |
|
| $ | 116,605 |
|
| $ | 100,136 |
|
| Moog Inc. | ||||||||||||||||
RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
| April 1, |
| April 2, |
| April 1, |
| April 2, | ||||||||
Aircraft Controls operating profit - as reported |
| $ | 31,862 |
|
| $ | 12,441 |
|
| $ | 61,580 |
|
| $ | 54,356 |
|
Gain on sale of business |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (16,146 | ) |
Restructuring and other |
|
| 1,000 |
|
|
| 18,826 |
|
|
| 1,000 |
|
|
| 18,826 |
|
Aircraft Controls operating profit - as adjusted |
| $ | 32,862 |
|
| $ | 31,267 |
|
| $ | 62,580 |
|
| $ | 57,036 |
|
|
|
| 9.5 | % |
|
| 10.0 | % |
|
| 9.5 | % |
|
| 9.3 | % |
|
|
|
|
|
|
|
|
| ||||||||
Space and Defense Controls operating profit - as reported |
| $ | 27,507 |
|
| $ | 24,075 |
|
| $ | 47,801 |
|
| $ | 45,374 |
|
Inventory write-down |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,500 |
|
Restructuring and other |
|
| 1,324 |
|
|
| 1,837 |
|
|
| 1,500 |
|
|
| 1,837 |
|
Space and Defense Controls operating profit - as adjusted |
| $ | 28,831 |
|
| $ | 25,912 |
|
| $ | 49,301 |
|
| $ | 48,711 |
|
|
|
| 11.7 | % |
|
| 11.6 | % |
|
| 10.6 | % |
|
| 11.3 | % |
|
|
|
|
|
|
|
|
| ||||||||
Industrial Systems operating profit - as reported |
| $ | 24,397 |
|
| $ | 20,723 |
|
| $ | 61,148 |
|
| $ | 37,914 |
|
Inventory write-down |
|
| — |
|
|
| 1,705 |
|
|
| — |
|
|
| 1,705 |
|
Gain on sale of buildings |
|
| (527 | ) |
|
| — |
|
|
| (10,030 | ) |
|
| — |
|
Restructuring and other |
|
| 1,506 |
|
|
| 2,366 |
|
|
| 2,863 |
|
|
| 2,366 |
|
Industrial Systems operating profit - as adjusted |
| $ | 25,376 |
|
| $ | 24,794 |
|
| $ | 53,981 |
|
| $ | 41,985 |
|
|
|
| 10.4 | % |
|
| 10.5 | % |
|
| 11.3 | % |
|
| 9.3 | % |
|
|
|
|
|
|
|
|
| ||||||||
Total operating profit - as adjusted |
| $ | 87,069 |
|
| $ | 81,973 |
|
| $ | 165,862 |
|
| $ | 147,732 |
|
|
|
| 10.4 | % |
|
| 10.6 | % |
|
| 10.4 | % |
|
| 9.9 | % |
| Moog Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
(dollars in thousands) | ||||||||
|
| April 1, |
| October 1, | ||||
ASSETS |
|
|
|
| ||||
Current assets |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 107,012 |
|
| $ | 103,895 |
|
Restricted cash |
|
| 2,642 |
|
|
| 15,338 |
|
Receivables, net |
|
| 1,079,980 |
|
|
| 990,262 |
|
Inventories, net |
|
| 679,045 |
|
|
| 588,466 |
|
Prepaid expenses and other current assets |
|
| 64,501 |
|
|
| 60,349 |
|
Total current assets |
|
| 1,933,180 |
|
|
| 1,758,310 |
|
Property, plant and equipment, net |
|
| 737,599 |
|
|
| 668,908 |
|
Operating lease right-of-use assets |
|
| 62,569 |
|
|
| 69,072 |
|
Goodwill |
|
| 826,498 |
|
|
| 805,320 |
|
Intangible assets, net |
|
| 82,421 |
|
|
| 85,410 |
|
Deferred income taxes |
|
| 9,327 |
|
|
| 8,630 |
|
Other assets |
|
| 48,015 |
|
|
| 36,191 |
|
Total assets |
| $ | 3,699,609 |
|
| $ | 3,431,841 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
| ||||
Current liabilities |
|
|
|
| ||||
Current installments of long-term debt |
| $ | 728 |
|
| $ | 916 |
|
Accounts payable |
|
| 238,603 |
|
|
| 232,104 |
|
Accrued compensation |
|
| 73,999 |
|
|
| 93,141 |
|
Contract advances |
|
| 317,253 |
|
|
| 296,899 |
|
Accrued liabilities and other |
|
| 212,267 |
|
|
| 215,376 |
|
Total current liabilities |
|
| 842,850 |
|
|
| 838,436 |
|
Long-term debt, excluding current installments |
|
| 958,414 |
|
|
| 836,872 |
|
Long-term pension and retirement obligations |
|
| 148,693 |
|
|
| 140,602 |
|
Deferred income taxes |
|
| 58,080 |
|
|
| 63,527 |
|
Other long-term liabilities |
|
| 111,795 |
|
|
| 115,591 |
|
Total liabilities |
|
| 2,119,832 |
|
|
| 1,995,028 |
|
Shareholders’ equity |
|
|
|
| ||||
Common stock - Class A |
|
| 43,807 |
|
|
| 43,807 |
|
Common stock - Class B |
|
| 7,473 |
|
|
| 7,473 |
|
Additional paid-in capital |
|
| 576,506 |
|
|
| 516,123 |
|
Retained earnings |
|
| 2,432,225 |
|
|
| 2,360,055 |
|
Treasury shares |
|
| (1,056,187 | ) |
|
| (1,047,012 | ) |
Stock Employee Compensation Trust |
|
| (99,880 | ) |
|
| (73,602 | ) |
Supplemental Retirement Plan Trust |
|
| (81,634 | ) |
|
| (58,989 | ) |
Accumulated other comprehensive loss |
|
| (242,533 | ) |
|
| (311,042 | ) |
Total shareholders’ equity |
|
| 1,579,777 |
|
|
| 1,436,813 |
|
Total liabilities and shareholders’ equity |
| $ | 3,699,609 |
|
| $ | 3,431,841 |
|
Moog Inc. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
(dollars in thousands) | ||||||||
|
| Six Months Ended | ||||||
|
| April 1, |
| April 2, | ||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
| ||||
Net earnings |
| $ | 89,029 |
|
| $ | 75,352 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
| ||||
Depreciation |
|
| 36,810 |
|
|
| 38,316 |
|
Amortization |
|
| 5,862 |
|
|
| 6,735 |
|
Deferred income taxes |
|
| (9,970 | ) |
|
| 4,834 |
|
Equity-based compensation expense |
|
| 5,765 |
|
|
| 4,578 |
|
Gain on sale of business |
|
| — |
|
|
| (16,146 | ) |
Gain on sale of buildings |
|
| (10,030 | ) |
|
| — |
|
Asset impairment and inventory write-down |
|
| 1,219 |
|
|
| 18,441 |
|
Other |
|
| 3,292 |
|
|
| 2,692 |
|
Changes in assets and liabilities providing (using) cash: |
|
|
|
| ||||
Receivables |
|
| (76,676 | ) |
|
| (4,223 | ) |
Inventories |
|
| (72,346 | ) |
|
| 6,951 |
|
Accounts payable |
|
| 1,971 |
|
|
| 24,388 |
|
Contract advances |
|
| 17,067 |
|
|
| 60,392 |
|
Accrued expenses |
|
| (33,030 | ) |
|
| (28,324 | ) |
Accrued income taxes |
|
| 11,965 |
|
|
| 8,217 |
|
Net pension and post retirement liabilities |
|
| 7,119 |
|
|
| 8,927 |
|
Other assets and liabilities |
|
| (11,063 | ) |
|
| (30,933 | ) |
Net cash provided (used) by operating activities |
|
| (33,016 | ) |
|
| 180,197 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| ||||
Acquisitions of businesses, net of cash acquired |
|
| — |
|
|
| (11,837 | ) |
Purchase of property, plant and equipment |
|
| (89,743 | ) |
|
| (74,087 | ) |
Net proceeds from businesses sold |
|
| 959 |
|
|
| 38,611 |
|
Net proceeds from buildings sold |
|
| 18,825 |
|
|
| — |
|
Other investing transactions |
|
| (4,241 | ) |
|
| (835 | ) |
Net cash used by investing activities |
|
| (74,200 | ) |
|
| (48,148 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| ||||
Proceeds from revolving lines of credit |
|
| 503,232 |
|
|
| 463,950 |
|
Payments on revolving lines of credit |
|
| (381,300 | ) |
|
| (455,476 | ) |
Payments on long-term debt |
|
| (188 | ) |
|
| (80,181 | ) |
Payments on finance lease obligations |
|
| (1,899 | ) |
|
| (1,085 | ) |
Payment of dividends |
|
| (16,859 | ) |
|
| (16,351 | ) |
Proceeds from sale of treasury stock |
|
| 9,148 |
|
|
| 8,701 |
|
Purchase of outstanding shares for treasury |
|
| (20,457 | ) |
|
| (26,481 | ) |
Proceeds from sale of stock held by SECT |
|
| 9,795 |
|
|
| 7,574 |
|
Purchase of stock held by SECT |
|
| (7,221 | ) |
|
| (10,396 | ) |
Other financing transactions |
|
| (2,024 | ) |
|
| — |
|
Net cash provided (used) by financing activities |
|
| 92,227 |
|
|
| (109,745 | ) |
Effect of exchange rate changes on cash |
|
| 5,410 |
|
|
| (1,087 | ) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
| (9,579 | ) |
|
| 21,217 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
| 119,233 |
|
|
| 100,914 |
|
Cash, cash equivalents and restricted cash at end of period |
| $ | 109,654 |
|
| $ | 122,131 |
|
| Moog Inc. | ||||||||||||||||
RECONCILIATION OF NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES TO FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (UNAUDITED) | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
| April 1, |
| April 2, |
| April 1, |
| April 2, | ||||||||
Net cash provided (used) by operating activities |
| $ | (41,099 | ) |
| $ | 23,012 |
|
| $ | (33,016 | ) |
| $ | 180,197 |
|
Purchase of property, plant and equipment |
|
| (59,618 | ) |
|
| (37,028 | ) |
|
| (89,743 | ) |
|
| (74,087 | ) |
Free cash flow |
|
| (100,717 | ) |
|
| (14,016 | ) |
|
| (122,759 | ) |
|
| 106,110 |
|
Securitization |
|
| — |
|
|
| (10,400 | ) |
|
| — |
|
|
| (100,000 | ) |
Adjusted free cash flow |
| $ | (100,717 | ) |
| $ | (24,416 | ) |
| $ | (122,759 | ) |
| $ | 6,110 |
|
Amounts may not reconcile when totaled due to rounding. |
Free cash flow is defined as net cash provided (used) by operating activities less capital expenditures. Adjusted free cash flow is defined as free cash flow adjusted for securitization activity. The securitization under GAAP reduced 2022 receivables and net debt and increased cash flow from operations. Free cash flow and adjusted free cash flow are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies, however management believes 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230428005083/en/
Investor Relations - 716.687.4225
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: SATELLITE DEFENSE OTHER DEFENSE TECHNOLOGY AIR AEROSPACE TRANSPORT MANUFACTURING
SOURCE: Moog Inc.
Copyright Business Wire 2023.
PUB: 04/28/2023 07:50 AM/DISC: 04/28/2023 07:50 AM
http://www.businesswire.com/news/home/20230428005083/en