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, compared to $617,635 thousand for the same period in 2022, reflecting a 4.9% increase[11] - Net earnings for the three months ended July 1, 2023, were $42,387 thousand, down 16% from $50,409 thousand in the same period of 2022[11] - Basic net earnings per share for the three months ended July 1, 2023, were $1.33, compared to $1.58 for the same period in 2022, representing a 15.8% decrease[11] - Comprehensive income for the nine months ended July 1, 2023, was $207,624 thousand, significantly higher than $69,337 thousand for the same period in 2022[14] - 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, reflecting an increase of approximately 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%[104] - Total operating profit for the nine months ended July 1, 2023, was $255.0 million, an increase from $216.9 million in the same period of 2022[104] Assets and Liabilities - Total assets as of July 1, 2023, were $3,882,243 thousand, an increase from $3,431,841 thousand as of October 1, 2022, indicating a growth of 13.1%[17] - Total liabilities as of July 1, 2023, were $2,261,059 thousand, up from $1,995,028 thousand as of October 1, 2022, reflecting a 13.3% increase[17] - Long-term debt as of July 1, 2023, was $1,012,080 million, an increase from $836,872 million as of October 1, 2022[77] - Total finance lease liabilities as of July 1, 2023, were $75,736 million, up from $26,773 million as of October 1, 2022[67] 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 provided by financing activities of $133,213,000, a significant improvement compared to $(97,872,000) 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 the same period in 2022[158] Research and Development - Research and development expenses for the three months ended July 1, 2023, were $26,502 thousand, slightly up from $25,890 thousand in the same period of 2022[11] - Research and development expenses were $27 million for the third quarter of 2023, a slight increase from $26 million in the same quarter of 2022, but decreased by 9% to $77 million for the first three quarters of 2023 compared to $84 million in the same period of 2022[128][130] 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 declared a quarterly dividend of $0.27 per share, payable on August 28, 2023, to shareholders of record as of August 11, 2023[110] Market and Sales Performance - The twelve-month backlog increased to $2.3 billion, up from $2.2 billion in the previous year, driven by higher orders in Aircraft Controls and Space and Defense Controls[128][134] - Aircraft Controls' net sales for military aircraft decreased by $10 million (6%) in Q3 2023 compared to Q3 2022, while commercial aircraft sales increased by $47 million (34%) in the same period[136] - Space and Defense Controls' net sales increased by $19 million (8%) in Q3 2023 compared to Q3 2022, driven by growth in defense and space programs[142] - Total company net sales for 2023 are projected to be $3,250 million, an increase of $214 million (7%) compared to 2022[154] Strategic Acquisitions and Divestitures - The company acquired TEAM Accessories Limited for a purchase price of $14,394, enhancing its capabilities in Maintenance, Repair and Overhaul services[49] - The company sold a sonar business for net proceeds of $13,075, incurring a loss of $15,246, reflecting strategic divestitures to streamline operations[50] 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 operating profit[204] - Risks related to health pandemics, such as COVID-19, have had material adverse consequences on operations and financial position[204] Tax and Compliance - The effective tax rate for the three months ended July 1, 2023, was 15.8%, lower than the U.S. federal statutory tax rate of 21% due to beneficial adjustments related to the U.S. research and development tax credit[95] - The effective tax rate for the third quarter of 2023 was 15.8%, relatively unchanged from 15.7% in the same quarter of 2022[128][133]
Moog(MOG_B) - 2023 Q3 - Quarterly Report