Financial Performance - Net sales for the three months ended January 1, 2022, were $724,086,000, an increase of 5.0% compared to $683,954,000 for the same period in 2021[9] - Gross profit for the same period was $192,880,000, up from $189,643,000, reflecting a gross margin of approximately 26.7%[9] - Net earnings increased to $46,265,000, or $1.44 per diluted share, compared to $37,842,000, or $1.17 per diluted share, in the prior year, representing a 22.5% increase in net earnings[9] - Total net sales for the company reached $724,086 million in Q1 2022, an increase from $683,954 million in Q1 2021, which is a 5.9% growth[91] - Operating profit for Aircraft Controls segment rose to $41,915 million in Q1 2022, up from $27,922 million in Q1 2021, marking a 50.0% increase[93] - The total operating profit for the company increased to $80,405 million in Q1 2022, compared to $70,866 million in Q1 2021, representing a 13.0% increase[93] - Net earnings increased by 22% to $46 million in the first quarter of 2022, compared to $38 million in the first quarter of 2021[115] - Diluted earnings per share rose to $1.44, a 23% increase from $1.17 in the prior year[115] Assets and Liabilities - Total assets decreased to $3,384,605,000 as of January 1, 2022, from $3,433,169,000 as of October 2, 2021[13] - Total liabilities decreased to $1,960,182,000 from $2,033,025,000, indicating improved financial stability[13] - Shareholders' equity increased to $1,424,423,000 from $1,400,144,000, reflecting a growth of 1.7%[13] - Long-term debt as of January 1, 2022, totaled $775,262, a decrease from $823,355 on October 2, 2021[66] Cash Flow and Liquidity - Cash and cash equivalents increased to $105,205,000 from $99,599,000, showing improved liquidity[13] - Net cash provided by operating activities was $157,185,000, up from $94,095,000 year-over-year, reflecting a significant increase in cash flow[21] - Cash, cash equivalents, and restricted cash at the end of the period totaled $106,726,000, compared to $98,334,000 at the end of the previous year[21] - Cash balances at January 1, 2022, were $107 million, primarily held outside of the U.S., supporting ongoing activities and future growth investments[139] Expenses and Investments - Research and development expenses were $27,708,000, slightly down from $28,008,000, indicating a focus on cost management[9] - Payments on long-term debt increased to $80,060,000 from $27,586,000, indicating a rise in debt servicing costs[21] - The company made capital expenditures of $37,059,000 for property, plant, and equipment, compared to $20,309,000 in the prior year, indicating investment in growth[21] Dividends and Shareholder Returns - The company declared cash dividends of $0.25 per share for both the three months ended January 1, 2022, and January 2, 2021[17] - A new share repurchase program authorized the repurchase of up to 3 million common shares, with approximately 427,000 shares purchased for $33 million since inception[161] Market and Segment Performance - Net sales for the Commercial segment increased to $117,368 million in Q1 2022, compared to $81,076 million in Q1 2021, reflecting a 45.0% growth[91] - Aircraft Controls segment net sales increased by 6% to $303 million, driven by a 45% increase in commercial aircraft sales[121] - Space and Defense Controls segment net sales rose by 10% to $208 million, reflecting growth in both military and commercial markets[126] - Net sales in Industrial Systems increased by 2% to $213 million in Q1 2022, with a decline in the medical market offsetting gains in industrial automation and energy markets[130] Other Comprehensive Income and Adjustments - Other comprehensive income (loss) for the period was $(2,335,000), compared to $35,191,000 in the prior year, indicating a significant change in foreign currency translation adjustments[11] - The company recognized additional revenue of $10,978,000 for adjustments made to performance obligations satisfied in previous periods[36] Economic and Market Conditions - The defense and aerospace businesses represented 69% of 2021 sales, facing supply chain and production risks due to the COVID-19 pandemic[165] - The commercial aircraft market, representing less than 15% of 2021 sales, continues to face pressure from reduced air travel, with recovery in domestic travel but muted international travel[165] - The industrial markets, which represented 31% of 2021 sales, are experiencing recovery signs, but face material supply chain pressures and direct labor inefficiencies[166] - Foreign currency movements affected approximately 20% of 2021 sales, with a $2 million decrease in sales due to currency translation in the first three months of 2022[178]
Moog(MOG_B) - 2022 Q1 - Quarterly Report