Financial Performance - Net sales for the three months ended June 29, 2019, were $740.97 million, a 7.0% increase from $692.02 million for the same period in 2018[10] - Gross profit for the nine months ended June 29, 2019, was $608.82 million, compared to $574.98 million for the same period in 2018, reflecting a 5.9% increase[10] - Net earnings attributable to Moog for the three months ended June 29, 2019, were $47.47 million, up 16.9% from $40.68 million in the same period of 2018[10] - Basic net earnings per share attributable to Moog increased to $1.36 for the three months ended June 29, 2019, compared to $1.14 for the same period in 2018[10] - Comprehensive income for the nine months ended June 29, 2019, was $139.52 million, significantly higher than $14.74 million for the same period in 2018[13] - Net earnings attributable to Moog for the nine months ended June 29, 2019, were $133,893 thousand, a significant increase from $55,947 thousand in the same period of the previous year, reflecting an increase of 139%[23] - Operating profit for the three months ended June 29, 2019, was $84.112 million, up from $75.262 million in the same period of 2018, representing an increase of 11.0%[96] Assets and Liabilities - Total assets as of June 29, 2019, were $3.07 billion, an increase from $2.96 billion as of September 29, 2018[16] - Total liabilities decreased slightly to $1.74 billion as of June 29, 2019, from $1.71 billion as of September 29, 2018[16] - Shareholders' equity increased to $1.36 billion as of June 29, 2019, compared to $1.22 billion as of September 29, 2018[16] - Total shareholders' equity increased to $1,355,657 thousand from $1,262,267 thousand year-over-year, representing a growth of approximately 7.4%[19] - The company’s retained earnings at the end of the period were $2,096,174 thousand, up from $1,941,902 thousand year-over-year, marking an increase of approximately 8%[23] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended June 29, 2019, was $129,095 thousand, compared to $46,350 thousand for the same period in 2018, indicating a substantial improvement[23] - The company experienced a net cash used by investing activities of $88,565 thousand for the nine months ended June 29, 2019, compared to $122,154 thousand in the same period of 2018, indicating a reduction in cash outflow[23] - The company reported a decrease in cash, cash equivalents, and restricted cash of $38,661 thousand for the nine months ended June 29, 2019, compared to a decrease of $210,643 thousand in the same period of 2018[23] Research and Development - Research and development expenses for the nine months ended June 29, 2019, were $94.52 million, a decrease from $97.28 million for the same period in 2018[10] - Research and development expenses decreased by $6 million in the first three quarters of 2019 compared to the same period in 2018[124] Dividends and Shareholder Returns - The company declared dividends of $0.25 per share for the three months ended June 29, 2019, compared to no dividends declared in the same period of 2018[10] - Cash dividends declared and paid were $0.25 per share for each quarter of 2019, consistent with the second quarter of 2018[92] - The company authorized a share repurchase program allowing the purchase of up to 13 million common shares, with approximately 9.7 million shares repurchased for $655 million as of June 29, 2019[170] Accounting Standards and Adjustments - The company adopted ASC 606 for revenue recognition on September 30, 2018, resulting in a cumulative adjustment of $14,923 to retained earnings[31] - The total assets as of June 29, 2019, were reported at $3,066,139, reflecting an increase of $31,749 due to ASC 606[35] - The total shareholders' equity increased by $23,169 to $1,355,657 as a result of the adjustments from ASC 606[35] - The company plans to adopt ASU 2016-02 on leases in Q1 2020, expecting to record a material right-of-use asset and lease liability[29] Market and Economic Conditions - The industrial automation market is influenced by capital investment and economic growth, with challenges arising from customer demands sensitive to economic conditions[178] - The company faces uncertainties regarding future defense spending levels beyond 2019, which may impact revenue and growth prospects[174] - The company expects approximately $875 million in U.S. defense sales for 2019, following moderate growth in defense spending[174] Segment Performance - The Aircraft Controls segment generated net sales of $336.735 million for the three months ended June 29, 2019, compared to $299.606 million in the same period of 2018, reflecting an increase of 12.4%[94] - The Space and Defense Controls segment reported an operating profit of $24.133 million for the three months ended June 29, 2019, compared to $16.689 million in the same period of 2018, marking a significant increase of 44.4%[96] - Net sales for Industrial Systems decreased by $11 million (5%) in Q3 2019 compared to Q3 2018, primarily due to lost sales from exiting a business and weaker foreign currencies[143]
Moog(MOG_A) - 2019 Q3 - Quarterly Report