Financial Performance - Net sales for the three months ended July 1, 2023, were $850,176 thousand, a 10% increase from $772,911 thousand for the same period in 2022[11] - Gross profit for the nine months ended July 1, 2023, was $647,634 thousand, up from $617,635 thousand in the prior year, reflecting a 4.9% increase[11] - Net earnings for the three months ended July 1, 2023, were $42,387 thousand, a decrease of 16% compared to $50,409 thousand for the same period in 2022[11] - Net earnings for the nine months ended July 1, 2023, were $131,416,000, compared to $125,761,000 for the same period in 2022, representing an increase of 5.2%[24] - Operating profit for the three months ended July 1, 2023, was $84.5 million, compared to $79.3 million for the same period in 2022, reflecting an increase of 6.9%[104] - Total operating profit for the nine months ended July 1, 2023, was $255.0 million, compared to $216.9 million for the same period in 2022, an increase of 17.5%[104] - Diluted earnings per share for the quarter were $1.32, down from $1.57 in the same quarter of 2022, reflecting a 16% decline[128] Cash Flow and Investments - Cash flows from operating activities for the nine months ended July 1, 2023, were $(17,097,000), a significant decrease from $184,264,000 in the prior year[24] - The company reported a net cash used by investing activities of $(113,895,000) for the nine months ended July 1, 2023, compared to $(85,267,000) in the prior year[24] - Net cash used by operating activities was $(17) million in the first three quarters of 2023, a decrease of $201 million compared to $184 million provided in the same period of 2022[158] - Capital expenditures in the first three quarters of 2023 amounted to $125 million, including a $28 million building purchase[161] - Net cash provided by financing activities in the first three quarters of 2023 included $175 million of net borrowings on credit facilities, offset by $25 million in cash for dividend payments[164] Assets and Liabilities - Total assets increased to $3,882,243 thousand as of July 1, 2023, compared to $3,431,841 thousand as of October 1, 2022, representing a growth of 13.1%[17] - Total shareholders' equity increased to $1,621,184 thousand as of July 1, 2023, from $1,436,813 thousand a year earlier, reflecting a growth of 12.8%[17] - Long-term debt increased to $1,012,080 million as of July 1, 2023, from $836,872 million as of October 1, 2022[77] - Other accrued liabilities totaled $206,903 million as of July 1, 2023, a decrease from $215,376 million as of October 1, 2022[81] Research and Development - Research and development expenses for the nine months ended July 1, 2023, totaled $77,107 thousand, down from $84,318 thousand in the previous year, indicating a 8.5% reduction[11] - Research and development expenses were $27 million for the quarter, a slight increase of 2% from $26 million in the same quarter of 2022[128] Dividends and Shareholder Returns - Cash dividends declared were $0.27 per share for the three months ended July 1, 2023, compared to $0.26 per share for the same period in 2022[20] - The company maintains a share repurchase program allowing for the buyback of up to 3 million common shares, with approximately 2.2 million shares remaining[180] Market and Segment Performance - The Aircraft Controls segment reported net sales of $355.0 million for the three months ended July 1, 2023, compared to $318.0 million in the same period of 2022, marking a growth of 11.6%[103] - The Space and Defense Controls segment's net sales increased to $242.4 million for the three months ended July 1, 2023, from $223.6 million in the same period of 2022, a rise of 8.1%[103] - The Industrial Systems segment achieved net sales of $252.7 million for the three months ended July 1, 2023, compared to $231.3 million in the same period of 2022, indicating an increase of 9.3%[103] Risks and Challenges - The company operates in highly competitive markets, facing risks from competitors with greater resources[204] - Significant reliance on government contracts, which may not be fully funded or could be terminated, potentially reducing sales and increasing costs[204] - Supply chain issues, including reduced supply and inflated prices of raw materials, could materially affect manufacturing and shipping capabilities[204] - Risks related to health pandemics, such as COVID-19, have had material adverse consequences on operations and financial position[204] - The company may not realize the full amounts reflected in its backlog as revenue, affecting future revenue and growth prospects[204]
Moog(MOG_A) - 2023 Q3 - Quarterly Report