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 nine months ended July 2, 2022, was $617,635 thousand, up from $580,154 thousand in the prior year, reflecting a growth of 6.5%[11] - Net earnings for the three months ended July 2, 2022, were $50,409 thousand, representing a 39.5% increase from $36,122 thousand in the same period of 2021[11] - Basic net earnings per share for the three months ended July 2, 2022, were $1.58, compared to $1.12 for the same period in 2021, marking an increase of 41.1%[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 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, reflecting an increase of approximately 4.0%[103] - Net earnings for the quarter were $50 million, a 40% increase from $36 million in the same quarter of 2021[128] - Diluted earnings per share rose to $1.57, a 40% increase compared to $1.12 in the same quarter of 2021[128] 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] - Cash and cash equivalents were $93,912 thousand as of July 2, 2022, compared to $99,599 thousand as of October 2, 2021[17] - Long-term debt increased to $856,097 million as of July 2, 2022, compared to $823,355 million on October 2, 2021[75] - Other accrued liabilities totaled $211,769 million as of July 2, 2022, slightly down from $212,005 million on October 2, 2021[79] Cash Flow - Net cash provided by operating activities decreased to $184,264,000 for the nine months ended July 2, 2022, down from $230,580,000 in the prior year, a decline of 20%[24] - Net cash provided by operating activities decreased by $90 million in the first three quarters of 2022 compared to the same period in 2021, with accounts receivable using $127 million more in cash[159] - Net cash used by investing activities included $107 million for capital expenditures and $12 million for the acquisition of TEAM Accessories in the first three quarters of 2022[160] - Net cash used by financing activities included $48 million of net paydowns on credit facilities, $25 million in cash dividends, and $21 million in share repurchases in the first three quarters of 2022[162] Research and Development - Research and development expenses for the three months ended July 2, 2022, were $25,890 thousand, down from $33,095 thousand in the same period of 2021, a decrease of 21.5%[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] Dividends - Cash dividends declared were $0.26 per share for the three months ended July 2, 2022, compared to $0.25 per share for the same period in 2021[20] - The company declared and paid cash dividends of $0.25 per share in Q1 2022 and $0.26 per share in Q2 and Q3 2022, compared to $0.25 per share in the first three quarters of 2021[175] Impairments and Charges - The company recorded impairment charges of $19,335,000 related to asset impairment and inventory write-downs due to the impact of the COVID-19 pandemic and geopolitical factors[29] - The company reported an asset impairment of $692,000 for the three months ended July 2, 2022, compared to no impairment in the same period of 2021[11] - The restructuring charge for 2022 included non-cash charges of $1,500 million for inventory write-downs, $946 million for equipment, and $7,423 million for severance[93] Market Performance - The Aircraft Controls segment reported net sales of $318.0 million for the three months ended July 2, 2022, up from $272.1 million in the prior year, marking a growth of approximately 16.9%[102] - The Space and Defense Controls segment achieved net sales of $223.6 million for the three months ended July 2, 2022, compared to $204.9 million in the same period of 2021, indicating an increase of about 9.1%[102] - The Industrial Systems segment generated net sales of $231.3 million for the three months ended July 2, 2022, slightly up from $230.3 million in the previous year, showing a marginal growth of 0.4%[102] - Aircraft Controls' net sales for the third quarter of 2022 were $272 million, a decrease of 17% compared to $318 million in the same period of 2021[136] - Commercial aircraft net sales decreased by 43% to $96 million in Q3 2022, while military aircraft sales decreased by 3% to $176 million[136] Taxation - 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 effective tax rate for the third quarter of 2022 was 15.7%, down from 25.7% in the same quarter of 2021[133] Future Outlook - The company expects total net sales for 2022 to reach $3,035 million, an increase of 6% from $2,852 million in 2021[153] - Operating profit for 2022 is projected to be $302 million, an 11% increase from $271 million in 2021[153] - The diluted earnings per share for 2022 is expected to be between $5.21 and $5.51, with a midpoint of $5.36[153] - The company anticipates an increase in Aircraft Controls' sales driven by recoveries in commercial OEM and aftermarket programs, despite a decline in military sales[154] - Space and Defense Controls is expected to see sales growth in both defense and space markets, with operating margins remaining in line with 2021 levels[155]
Moog(MOG_B) - 2022 Q3 - Quarterly Report