Financial Performance - Net sales for the three months ended December 31, 2022, were $760.1 million, an increase of 5% from $724.1 million for the same period in 2021[10] - Gross profit for the same period was $203.7 million, up from $192.9 million, reflecting a gross margin increase[10] - Net earnings for the three months ended December 31, 2022, were $46.0 million, slightly down from $46.3 million in the prior year[10] - Earnings before income taxes decreased to $60.3 million from $61.4 million year-over-year[10] - Operating profit for the three months ended December 31, 2022, was $86.8 million, compared to $80.4 million for the same period in 2021, reflecting an increase of about 8%[97] - The effective tax rate for the three months ended December 31, 2022, was 23.7%, slightly lower than 24.7% for the same period in 2021[90] - Net earnings for the three months ended December 31, 2022, were $46,016, compared to $46,265 for the same period in 2021, reflecting a decrease of 0.5%[24] - The company reported a total pension expense for defined contribution plans of $12.25 million for the three months ended December 31, 2022, down from $12.70 million in the prior year[89] Assets and Liabilities - Total assets increased to $3.66 billion as of December 31, 2022, compared to $3.43 billion at the end of the previous quarter[16] - Total liabilities increased to $2.13 billion from $1.99 billion, primarily due to higher long-term debt[16] - Shareholders' equity grew to $1.53 billion from $1.44 billion, reflecting retained earnings and additional paid-in capital[16] - Current assets rose to $1,933,183 thousand, compared to $1,758,310 thousand, marking an increase of about 9.9%[16] - The long-term debt as of December 31, 2022, was $916,058,000, an increase from $836,872,000 on October 1, 2022[75] - The fair value of long-term debt was estimated at $884,378,000 compared to its carrying value of $922,822,000 as of December 31, 2022[87] Cash Flow and Investments - Net cash provided by operating activities was $8,083, significantly lower than $157,185 in the prior year, indicating a decline of approximately 94.9%[24] - The company reported a net cash used in investing activities of $25,293, compared to a net cash provided of $277 in the same period last year[24] - Cash and cash equivalents rose to $143.1 million from $103.9 million, indicating improved liquidity[16] - The company has $709 million of unused capacity in its credit facilities as of December 31, 2022, indicating strong liquidity[160] Dividends and Shareholder Information - The company declared cash dividends of $0.26 per share for the three months ended December 31, 2022, compared to $0.25 per share in the prior year[19] - The company declared a quarterly dividend of $0.27 per share payable on March 6, 2023[103] - Basic weighted-average shares outstanding decreased to 31,746,001 for the three months ended December 31, 2022, from 32,057,399 for the same period in 2021[95] - The total number of Class A common stock treasury shares increased to (14,666,508) as of December 31, 2022, from (14,614,444) at the beginning of the period[21] Research and Development - Research and development expenses were $23.9 million, down from $27.7 million, indicating a focus on cost management[10] - Research and development expenses decreased by 14% to $24 million compared to $28 million in the previous year[121] Market Performance and Outlook - The company expects 2023 net sales to reach $3.175 billion, a 5% increase from 2022, with operating profit projected to rise by 26% to $356 million[139] - Adjusted diluted earnings per share for 2023 are expected to range between $5.50 and $5.90, with a midpoint of $5.70[139] - Aerospace and defense businesses accounted for 70% of 2022 sales, with defense programs benefiting from stable funding levels[170] - The commercial aircraft market represented less than 18% of 2022 sales and is still recovering from COVID-19 impacts, particularly in international travel[170] - Industrial markets, comprising 30% of 2022 sales, are experiencing increased order demand but face supply chain pressures[171] Acquisitions and Divestitures - The company acquired TEAM Accessories Limited for a total purchase price of $14,885, enhancing its capabilities in Maintenance, Repair, and Overhaul services[47] - The company sold a sonar business for net proceeds of $13,075, incurring a loss of $15,246, net of transaction costs[48] - The company also sold assets of a security business for net proceeds of $9,273, recording a loss of $4,112, net of transaction costs[49] - The company sold its Navigation Aids business to THALES USA Inc. for net proceeds of $36,550, recording a gain of $16,146 after transaction costs[50] Inventory and Receivables - Inventories, net of reserves, totaled $648,160 as of December 31, 2022, up from $588,466 on October 1, 2022, with raw materials at $250,228 and work in progress at $325,718[57] - As of December 31, 2022, total receivables amounted to $1,066,340, an increase from $990,262 on October 1, 2022, with accounts receivable at $399,705 and unbilled receivables at $645,234[51] - The amount sold to purchasers under the Receivables Purchase Agreement was $100,000, which was derecognized from the balance sheet, with unsold receivables at $730,504[55] Other Financial Metrics - The company’s accumulated other comprehensive income (loss) at December 31, 2022, was $(257.2) million, a decrease from $(311.0) million at October 1, 2022[91] - The warranty accrual at the end of the period was $22,429,000, down from $23,072,000 at the beginning of the period[78] - The restructuring accrual as of December 31, 2022, totaled $7.6 million, with $3.3 million related to the 2022 plan, expected to be paid within a year[88]
Moog(MOG_B) - 2023 Q1 - Quarterly Report