Financial Performance - Net sales for the three months ended July 2, 2022, were $772,911 thousand, an increase of 9.2% compared to $707,352 thousand for the same period in 2021[11] - Gross profit for the three months ended July 2, 2022, was $211,743 thousand, representing a gross margin of 27.4%, up from $190,602 thousand in the prior year[11] - Net earnings for the three months ended July 2, 2022, were $50,409 thousand, a 39.5% increase from $36,122 thousand in the prior year[11] - Basic net earnings per share increased to $1.58 for the three months ended July 2, 2022, compared to $1.12 for the same period in 2021[11] - Operating profit for the three months ended July 2, 2022, was $79.3 million, compared to $64.9 million for the same period in 2021, reflecting an increase of about 22.1%[103] - The company’s total operating profit for the nine months ended July 2, 2022, was $216.9 million, compared to $208.2 million for the same period in 2021, showing a growth of about 4.0%[103] Assets and Liabilities - Total assets as of July 2, 2022, were $3,439,056 thousand, slightly up from $3,433,169 thousand as of October 2, 2021[17] - Total liabilities decreased to $2,007,631 thousand as of July 2, 2022, from $2,033,025 thousand as of October 2, 2021[17] - Shareholders' equity increased to $1,431,425 thousand as of July 2, 2022, compared to $1,400,144 thousand as of October 2, 2021[17] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended July 2, 2022, was $184,264,000, down from $230,580,000 in the prior year, indicating a decrease of about 20%[24] - The company reported a net cash used by investing activities of $85,267,000 for the nine months ended July 2, 2022, compared to $162,558,000 in the prior year, reflecting a reduction of about 47.5%[24] - Cash, cash equivalents, and restricted cash at the end of the period were $95,864,000, compared to $91,658,000 at the end of the same period in 2021, showing an increase of approximately 4.8%[24] Research and Development - Research and development expenses decreased to $25,890 thousand for the three months ended July 2, 2022, down 21.8% from $33,095 thousand in the same period of 2021[11] - Research and development expenses decreased by 22% to $26 million in the third quarter of 2022 compared to $33 million in the same quarter of 2021[130] Foreign Currency and Market Impact - The company reported a foreign currency translation adjustment loss of $43,954 thousand for the three months ended July 2, 2022[14] - The company experienced a $15 million decrease in sales due to weaker foreign currencies, primarily the Euro and British Pound, relative to the U.S. Dollar[128] - The company experienced a decrease in sales of $24 million due to the weakening of foreign currencies against the U.S. dollar during the first nine months of 2022[194] Acquisitions and Growth - The company acquired TEAM Accessories Limited for a purchase price of $14,890, enhancing its Aircraft Controls segment[49] - The company acquired TEAM Accessories Limited for a purchase price of $15 million on February 21, 2022, enhancing its Aircraft Controls segment[120] - The company plans to continue exploring strategic acquisitions and return capital to shareholders to enhance long-term value[118] Backlog and Future Sales - The twelve-month backlog increased to $2.2 billion as of July 2, 2022, a 10% increase from $2.0 billion a year earlier[134] - The company expects total net sales for 2022 to reach $3,035 million, an increase of 6% from $2,852 million in 2021[153] - Aircraft Controls anticipates an increase in sales driven by recoveries in commercial OEM and aftermarket programs, despite a decline in military sales[154] - Space and Defense Controls expects sales growth in both defense and space markets, primarily from the RIwP program and integrated space vehicles business[155] - Industrial Systems forecasts a modest sales increase in 2022, particularly in the simulation and test market, but expects a decrease in operating margin due to ongoing portfolio shaping activities[156] Operational Risks and Legal Proceedings - The company faced operational risks due to potential interruptions in information systems and issues with product manufacturing processes[199] - The company is involved in various legal proceedings that could have unfavorable outcomes impacting financial results[201] Tax and Pension Expenses - The effective tax rate for the three months ended July 2, 2022, was 15.7%, lower than the U.S. federal statutory tax rate of 21% due to beneficial provisions related to the U.S. research and development tax credit[95] - The company reported a pension expense of $12,552 million for U.S. defined contribution plans for the three months ended July 2, 2022, compared to $11,195 million for the same period in 2021[94] Impairments and Restructuring - The company recorded impairment charges on long-lived assets in the Aircraft Controls segment due to a slower than expected recovery in the commercial aircraft business[29] - The company recorded impairment charges on inventory totaling $1,907 for the nine months ended July 2, 2022, associated with Russian actions in Ukraine[62] - The restructuring charge for 2022 included non-cash charges of $1,500 million for inventory write-downs and $7,423 million for severance related to businesses no longer pursued[93]
Moog(MOG_A) - 2022 Q3 - Quarterly Report