Financial Performance - Net sales for the three months ended April 1, 2023, were $836,792 thousand, a 8.5% increase from $770,787 thousand for the same period in 2022[11] - Gross profit for the six months ended April 1, 2023, was $425,001 thousand, compared to $405,892 thousand for the same period in 2022, reflecting a 4.7% increase[11] - Net earnings for the three months ended April 1, 2023, were $43,013 thousand, a 47.9% increase from $29,087 thousand for the same period in 2022[11] - Basic net earnings per share for the six months ended April 1, 2023, were $2.80, up from $2.35 for the same period in 2022, representing a 19.1% increase[11] - Net earnings for the six months ended April 1, 2023, were $89,029 thousand, an increase from $75,352 thousand in the same period of 2022, representing a growth of approximately 18%[23] - Operating profit for the three months ended April 1, 2023, was $83.8 million, compared to $57.2 million for the same period in 2022, reflecting a growth of approximately 46.5%[101] - The company reported a comprehensive income of $57,669 thousand for the three months ended April 1, 2023, compared to $15,047 thousand for the same period in 2022[13] Assets and Liabilities - Total assets as of April 1, 2023, were $3,699,609 thousand, an increase from $3,431,841 thousand as of October 1, 2022[16] - Total shareholders' equity increased to $1,579,777 thousand as of April 1, 2023, from $1,436,813 thousand as of October 1, 2022[16] - Total long-term debt as of April 1, 2023, was $958,414 million, up from $836,872 million on October 1, 2022, representing an increase of 14.5%[76] - Cash and cash equivalents increased to $107,012 thousand as of April 1, 2023, compared to $103,895 thousand as of October 1, 2022[16] Cash Flow and Investments - Cash flows from operating activities for the six months ended April 1, 2023, showed a net cash used of $33,016 thousand, compared to a net cash provided of $180,197 thousand in the same period of 2022[23] - The company reported a net cash used by investing activities of $74,200 thousand for the six months ended April 1, 2023, compared to $48,148 thousand in the same period of 2022[23] - The company purchased property, plant, and equipment for $89,743 thousand during the six months ended April 1, 2023, an increase from $74,087 thousand in the same period of 2022[23] - Net cash used by investing activities in the first half of 2023 included $90 million in capital expenditures, with an expectation of $165 million for the full year[159][160] Revenue Recognition and Contracts - The company recognized revenue using the five-step model prescribed in ASC 606, focusing on identifying contracts and performance obligations[32] - As of April 1, 2023, the company had contract reserves of $45,602, with provisions for anticipated losses charged against income when known[42] - The aggregate amount of transaction price allocated to unsatisfied performance obligations was $5,200,000, with an expected 44% to be recognized as sales over the next twelve months[46] Segment Performance - The Aircraft Controls segment reported an operating profit of $31.9 million for the three months ended April 1, 2023, significantly higher than $12.4 million in the same period of 2022, indicating a year-over-year increase of approximately 156.5%[101] - The Space and Defense Controls segment achieved net sales of $245.9 million for the three months ended April 1, 2023, compared to $223.3 million in the same period of 2022, marking an increase of approximately 10.1%[100] - The Industrial Systems segment's net sales reached $243.9 million for the three months ended April 1, 2023, up from $236.2 million in the same period of 2022, reflecting a growth of approximately 3.2%[100] Expenses - Research and development expenses for the three months ended April 1, 2023, were $26,743 thousand, down from $30,720 thousand for the same period in 2022[11] - Selling, general and administrative expenses increased to $116,695 thousand for the three months ended April 1, 2023, compared to $111,019 thousand in the same period of 2022, an increase of 5.2%[11] - Interest expenses increased to $14,963 thousand for the three months ended April 1, 2023, compared to $8,263 thousand in the same period of 2022, a rise of 81.5%[11] Shareholder Returns - The company declared cash dividends of $0.27 per share for the three months ended April 1, 2023, compared to $0.26 per share for the same period in 2022[19] - The company aims to improve shareholder value through strategic revenue growth and operational efficiencies[116] Risks and Challenges - The company reported a backlog that may not fully convert to revenue, which could adversely affect future revenue and growth prospects[200] - The company faces significant operational risks related to supply chain disruptions and health pandemics, which could materially impact financial performance[201] - The company is heavily reliant on government contracts, and any funding issues could reduce sales and increase costs[200]
Moog(MOG_A) - 2023 Q2 - Quarterly Report