Financial Performance - Net sales for the three months ended December 30, 2023, were $856,850,000, representing a 12.7% increase from $760,103,000 for the same period in 2022[11] - Gross profit increased to $233,199,000, up from $203,686,000, reflecting a gross margin improvement[11] - Net earnings for the quarter were $47,812,000, slightly up from $46,016,000, resulting in a diluted earnings per share of $1.48[11] - Comprehensive income for the three months ended December 30, 2023, was $80,821,000, down from $99,869,000 in the prior year[15] - Operating profit for the same period was $94.54 million, up 9.9% from $86.76 million year-over-year[106] - The net sales for the Defense segment increased to $130.52 million in the three months ended December 30, 2023, from $121.90 million in the same period of 2022, reflecting a growth of approximately 7.0%[104] - Net sales for the first quarter of 2024 were $857 million, an increase of $97 million or 13% compared to $760 million in the same period of 2023[129] Expenses and Investments - Research and development expenses rose to $30,579,000, compared to $23,862,000, indicating a 28.2% increase year-over-year[11] - The company incurred $5,212,000 in acquisitions of businesses during the quarter, with no cash acquired, indicating ongoing investment in growth[26] - The total expense for defined contribution plans for the three months ended December 30, 2023, was $14.35 million, up from $12.25 million in the same period of 2022[97] - Equity-based compensation expense rose to $4,165,000 from $2,974,000, indicating a strategic focus on incentivizing employee performance[26] Assets and Liabilities - Total assets increased to $3,987,955,000 from $3,808,036,000, marking a 4.7% growth[18] - Total liabilities rose to $2,280,738,000, compared to $2,171,949,000, reflecting a 5.0% increase[18] - Shareholders' equity increased to $1,707,217,000 from $1,636,087,000, showing a growth of 4.3%[18] - Cash and cash equivalents significantly increased to $126,398,000 from $68,959,000, indicating a strong liquidity position[18] Cash Flow and Dividends - Cash dividends declared were $0.27 per share for the quarter, up from $0.26 per share in the same period last year[21] - Net cash provided by operating activities was $60,391,000, significantly higher than $8,083,000 in the prior year, indicating a substantial increase in operational efficiency[26] - Cash collections from sold receivables under the Receivables Purchase Agreement totaled $123,827 for the three months ended December 30, 2023[58] Market and Segment Performance - Space and Defense segment generated an operating profit of $25.30 million, a 24.8% increase from $20.29 million in the prior year[106] - Military Aircraft segment's operating profit rose to $19.59 million, a 29.5% increase compared to $15.20 million in the previous year[106] - Commercial Aircraft segment reported an operating profit of $20.63 million, up 42.3% from $14.52 million year-over-year[106] - Aerospace and defense businesses represented 70% of the company's 2023 sales, with increased funding levels positively impacting the defense market[175] Future Outlook - The company expects total net sales for 2024 to reach $3,500 million, a 5% increase from $3,319 million in 2023, with significant growth anticipated in Space and Defense[147] - Adjusted diluted earnings per share for 2024 are projected to range between $6.70 and $7.10, with a midpoint of $6.90, reflecting anticipated higher sales and operating margins[147] - The company aims to improve shareholder value through strategic revenue growth and operational efficiencies, focusing on both organic growth and acquisitions[121] Risks and Challenges - The company is facing risks related to supply chain constraints and inflated prices for raw materials, which could impact manufacturing and shipping capabilities[192] - The defense market's future spending levels are expected to increase due to current global tensions, subject to governmental approval[179]
Moog(MOG_A) - 2024 Q1 - Quarterly Report