8-K
MOOG INC. (MOG-A)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
April 26, 2024
Date of Report (date of earliest event reported)
MOOG Inc.
(Exact name of registrant as specified in its charter)
| NY | 1-05129 | 16-0757636 | |
|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
| 400 Jamison Rd | East Aurora, | New York | 14052-0018 |
| (Address of Principal Executive Offices) | (Zip Code) |
(716) 652-2000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| 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 |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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| Item 2.02 | Results of Operations and Financial Condition |
|---|
On April 26, 2024, Moog Inc. (the “Company”) issued a press release discussing results of operations for the quarter ended March 30, 2024. A copy of the press release is included as exhibit 99.1 of this report.
The information in this report is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly stated by specific reference in such a filing.
| Item 8.01 | Other Events |
|---|
On April 26, 2024, the Company issued a press release announcing that the Company’s Board of Directors declared a quarterly dividend of $0.28 per share on the Company's issued and outstanding shares of Class A common stock and Class B common stock. The dividend will be paid on May 28, 2024 to all shareholders of record as of the close of business on May 10, 2024. A copy of the press release is included as Exhibit 99.2 of this report.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(d)Exhibits.
| 99.1 | Press release dated April 26, 2024, announcing Moog Inc.’s results of operations for the quarter and year ended March 30, 2024. |
|---|---|
| 99.2 | Press release dated April 26, 2024, announcing cash dividend. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MOOG INC. | |||
|---|---|---|---|
| Dated: | April 26, 2024 | By: | /s/ Michael J. Swope |
| Name: | Michael J. Swope | ||
| Controller |
Document
Exhibit 99.1
Moog Inc. ▪ East Aurora, New York ▪ 14052 ▪ 716-652-2000
Press Information
| Release Date: | April 26, 2024 |
|---|---|
| IMMEDIATE |
Moog Inc. Reports Record Sales and Continued Margin Expansion
for Second Quarter 2024
East Aurora, NY -- 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 fiscal second quarter 2024 diluted earnings per share of $1.86 and adjusted diluted earnings per share of $2.19.
"The second quarter of 2024 was an exceptional quarter from a sales and earnings perspective," said Pat Roche, CEO. "Our margin enhancement efforts continue to drive financial performance improvements across our businesses and we look forward to continued strength through the year."
| (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. |
Quarter Highlights
•Net sales of $930 million increased 11% compared to the prior year's quarter, with increases in all four segments, including a 26% increase in Commercial Aircraft.
•Operating margin of 12.0% increased 200 basis points. Business performance across all segments contributed an incremental 165 basis points. Also, the current quarter included a 150 basis point benefit from the Employee Retention Credit associated with the CARES Act. The current quarter also included 115 basis points of higher impairments and restructuring.
•Adjusted operating margin of 13.6% increased 320 basis points, driven by the underlying business performance, as well as the Employee Retention Credit.
•Diluted earnings per share of $1.86 increased 39% due to the higher operating profit and the Employee Retention Credit, partially offset by the current quarter's restructuring and impairment charges.
•Adjusted diluted earnings per share of $2.19 increased 54%, reflecting earnings associated from higher sales across all of our segments and the Employee Retention Credit.
•Free cash flow improved by $17 million as compared to last year due to lower capital expenditures.
Exhibit 99.1
Quarter Results
Sales in the second quarter of 2024 increased across all segments compared to the second quarter of 2023. Commercial Aircraft sales increased 26% to $208 million due to the growth in widebody aircraft. Space and Defense sales increased 9% to $267 million, driven by strong demand for programs supporting emerging defense priorities. Sales in Military Aircraft increased 11% to $203 million due to the ramp-up of the FLRAA program and the sale of a mature product line. Sales in Industrial increased 4% to $253 million due to higher demand for flight simulation systems and energy products, and were partially offset by a slowdown in orders for industrial automation applications.
Operating margin increased 200 basis points to 12.0% in the second quarter of 2024 compared to the second quarter of 2023. Space and Defense operating margin increased 460 basis points to 15.8% due to improved performance on space vehicle programs and the benefit associated with the Employee Retention Credit. Commercial Aircraft operating margin increased 250 basis points to 12.0% due to pricing and higher sales volumes across our entire book of business. Industrial operating margin increased 110 basis points to 11.1%, as the Employee Retention Credit and benefits from pricing initiatives were partially offset by higher amounts of restructuring charges. Military Aircraft operating margin decreased 60 basis points to 8.3%, as impairment and restructuring charges more than offset the gain from the sale of a mature product line.
The current quarter includes $14 million of restructuring, impairment and other charges, primarily in Military Aircraft and Industrial. The second quarter of 2023 included $3 million of restructuring and other charges. Excluding charges in both periods, adjusted operating margin increased 320 basis points to 13.6% driven largely by the factors previously described. Space and Defense adjusted operating margin increased 420 basis points to 15.9%. Military Aircraft adjusted operating margin increased 400 basis points to 13.4%. Commercial Aircraft adjusted operating margin increased 250 basis points to 12.0%, and Industrial adjusted operating margin increased 210 basis points to 12.5%.
Twelve-month backlog increased 9% to a record level of $2.5 billion due to growth across our aerospace and defense businesses.
Free cash flow in the second quarter was a use of cash of $84 million. Unfavorable timing in accounts receivable and the work-down of milestones in customer advances pressured working capital. Also, growth in physical inventories, driven by the strong level of sales, pressured working capital. Capital expenditures in the second quarter of 2024 were $40 million.
2024 Financial Guidance
"Fiscal year 2024 is shaping up to be another great year of financial performance, and we're on track to achieve our long-term financial targets," said Jennifer Walter, CFO. "This year, our sales will grow by 7%, our adjusted operating margin will expand by 150 basis points and our adjusted earnings per share will increase by 18%."
| (in millions, except per share results) | |||||
|---|---|---|---|---|---|
| Previous | |||||
| Net sales | 3,550 | $ | 3,500 | ||
| Operating margin | % | 12.0 | % | ||
| Adjusted operating margin | % | 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. |
All values are in US Dollars.
When the company provides adjusted, non-GAAP figures on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.
Exhibit 99.1
Conference call information
In conjunction with today’s release, Pat Roche, CEO, and Jennifer Walter, CFO, will host a conference call today beginning at 10:00 a.m. ET, which will be simultaneously broadcast live online. Listeners can access the call live, or in replay mode, at www.moog.com/investors/communications. Supplemental financial data will be available on the website approximately 90 minutes prior to the conference call.
Cautionary Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which can be identified by words such as: “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume,” “assume” and other words and terms of similar meaning (including their negative counterparts or other various or comparable terminology). These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, are neither historical facts nor 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.
Although it is not possible to create a comprehensive list of all factors that may cause our 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 are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the Securities and Exchange Commission (“SEC”) and include, but are not limited to, risks relating to: (i) our operation in highly competitive markets with competitors who may have greater resources than we possess; (ii) our operation in cyclical markets that are sensitive to domestic and foreign economic conditions and events; (iii) our heavy dependence on government contracts that may not be fully funded or may be terminated; (iv) supply chain constraints and inflationary impacts on prices for raw materials and components used in our products; (v) failure of our subcontractors or suppliers to perform their contractual obligations; and (vi) our accounting estimations for over-time contracts and any changes we need to make thereto. You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties.
While we believe we have identified and discussed in our SEC filings 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 we make 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 press release, except as required by applicable law.
Contact
Aaron Astrachan - 716.687.4225
Exhibit 99.1
| Moog Inc. | ||||||||
|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | ||||||||
| (dollars in thousands, except per share data) | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 30,<br>2024 | April 1,<br>2023 | March 30,<br>2024 | April 1,<br>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 |
Exhibit 99.1
| 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,<br>2024 | April 1,<br>2023 | March 30,<br>2024 | April 1,<br>2023 | |||||||||
| 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. |
Results shown above have been adjusted to exclude impacts associated with the sale of buildings, asset impairments due to program termination and the devaluation of an investment, as well as restructuring and other charges related to continued portfolio shaping activities and the derecognition of revenue from the write-off of an unbilled receivable due to a program cancellation ($665). 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.
Exhibit 99.1
| Moog Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED) | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 30,<br>2024 | April 1,<br>2023 | March 30,<br>2024 | April 1,<br>2023 | |||||||||
| 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 |
Exhibit 99.1
| Moog Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION TO ADJUSTED OPERATING PROFIT AND MARGINS (UNAUDITED) | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 30,<br>2024 | April 1,<br>2023 | March 30,<br>2024 | April 1,<br>2023 | |||||||||
| 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 | % |
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.
Exhibit 99.1
| Moog Inc. | ||||
|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
| (dollars in thousands) | ||||
| March 30,<br>2024 | September 30,<br>2023 | |||
| --- | --- | --- | --- | --- |
| 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 |
Exhibit 99.1
| Moog Inc. | ||||
|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||
| (dollars in thousands) | ||||
| Six Months Ended | ||||
| --- | --- | --- | --- | --- |
| March 30,<br>2024 | April 1,<br>2023 | |||
| 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 |
Exhibit 99.1
| 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,<br>2024 | April 1,<br>2023 | March 30,<br>2024 | April 1,<br>2023 | |||||
| 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) |
Free cash flow is defined as net cash provided (used) by operating activities less purchase of property, plant and equipment. Free cash flow 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 liquidity, 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.
Document
Exhibit 99.2
Moog Inc. ▪ East Aurora, New York ▪ 14052 ▪ 716-652-2000
Press Information
| Release Date: | April 26, 2024 |
|---|---|
| IMMEDIATE |
Moog Inc. Announces Cash Dividend
East Aurora, NY – The Board of Directors of Moog Inc. (NYSE: MOG.A and MOG.B) declared a quarterly dividend of $0.28 per share on the Company’s issued and outstanding shares of Class A and Class B common stock. The dividend will be paid on May 28, 2024 to all shareholders of record as of the close of business on May 10, 2024.
The dividend represents a use of cash of approximately $9 million. Future declarations of quarterly dividends are subject to the determination and discretion of Moog’s Board of Directors.
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, space vehicles, launch vehicles, defense systems, missiles, automated industrial machinery, marine and medical equipment. Additional information about the company can be found at www.moog.com.
Contact: Aaron Astrachan
716.687.4225