(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Item 2.02 | Results of Operations and Financial Condition |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
Press release dated July 30, 2021, announcing Moog Inc.’s results of operations for the quarter ended July 3, 2021. | |||||
Press release dated July 30, 2021, announcing cash dividend. | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
MOOG INC. | |||||||||||
Dated: | July 30, 2021 | By: | /s/ Michael J. Swope | ||||||||
Name: | Michael J. Swope | ||||||||||
Controller |
Release Date: | IMMEDIATE | Contact: | Ann Marie Luhr | ||||||||
July 30, 2021 | 716-687-4225 |
Moog Inc. | ||
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED) | ||
(dollars in thousands, except per share data) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Net sales | $ | 707,352 | $ | 657,539 | $ | 2,127,708 | $ | 2,177,659 | ||||||||||||||||||
Cost of sales | 516,750 | 486,760 | 1,547,554 | 1,587,569 | ||||||||||||||||||||||
Inventory write-down | — | 18,795 | — | 18,795 | ||||||||||||||||||||||
Gross profit | 190,602 | 151,984 | 580,154 | 571,295 | ||||||||||||||||||||||
Research and development | 33,095 | 27,407 | 91,556 | 82,303 | ||||||||||||||||||||||
Selling, general and administrative | 100,597 | 96,899 | 305,331 | 302,517 | ||||||||||||||||||||||
Interest | 8,239 | 9,440 | 25,288 | 29,923 | ||||||||||||||||||||||
Long-lived asset impairment | — | 31,871 | — | 31,871 | ||||||||||||||||||||||
Restructuring | — | 5,306 | — | 5,306 | ||||||||||||||||||||||
Other | 76 | 4,415 | (3,115) | 14,294 | ||||||||||||||||||||||
Earnings (loss) before income taxes | 48,595 | (23,354) | 161,094 | 105,081 | ||||||||||||||||||||||
Income taxes (benefit) | 12,473 | (10,764) | 38,442 | 17,899 | ||||||||||||||||||||||
Net earnings (loss) | $ | 36,122 | $ | (12,590) | $ | 122,652 | $ | 87,182 | ||||||||||||||||||
Net earnings (loss) per share | ||||||||||||||||||||||||||
Basic | $ | 1.12 | $ | (0.39) | $ | 3.82 | $ | 2.60 | ||||||||||||||||||
Diluted | $ | 1.12 | $ | (0.39) | $ | 3.80 | $ | 2.59 | ||||||||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||||
Basic | 32,125,524 | 32,601,481 | 32,115,400 | 33,515,584 | ||||||||||||||||||||||
Diluted | 32,355,238 | 32,601,481 | 32,305,834 | 33,722,723 | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
As Reported: | ||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 48,595 | $ | (23,354) | $ | 161,094 | $ | 105,081 | ||||||||||||||||||
Income taxes (benefit) | 12,473 | (10,764) | 38,442 | 17,899 | ||||||||||||||||||||||
Effective income tax rate | 25.7 | % | 46.1 | % | 23.9 | % | 17.0 | % | ||||||||||||||||||
Net earnings (loss) | 36,122 | (12,590) | 122,652 | 87,182 | ||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | 1.12 | $ | (0.39) | $ | 3.80 | $ | 2.59 | ||||||||||||||||||
COVID-19 Pandemic Charges: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | — | $ | 55,972 | $ | — | $ | 55,972 | ||||||||||||||||||
Income taxes | — | 13,012 | — | 13,012 | ||||||||||||||||||||||
Net earnings | — | 42,960 | — | 42,960 | ||||||||||||||||||||||
Diluted net earnings per share | $ | — | $ | 1.32 | $ | — | $ | 1.32 | ||||||||||||||||||
As Adjusted: | ||||||||||||||||||||||||||
Earnings before income taxes | $ | 48,595 | $ | 32,618 | $ | 161,094 | $ | 161,053 | ||||||||||||||||||
Income taxes | 12,473 | 2,248 | 38,442 | 30,911 | ||||||||||||||||||||||
Effective income tax rate | 25.7 | % | 6.9 | % | 23.9 | % | 19.2 | % | ||||||||||||||||||
Net earnings | 36,122 | 30,370 | 122,652 | 130,142 | ||||||||||||||||||||||
Diluted net earnings per share | $ | 1.12 | $ | 0.93 | $ | 3.80 | $ | 3.91 | ||||||||||||||||||
The diluted net earnings per share associated with the charges have been calculated using the quarterly average outstanding shares in the period in which the charges were incurred. |
Moog Inc. | ||
CONSOLIDATED SALES AND OPERATING PROFIT (LOSS) (UNAUDITED) | ||
(dollars in thousands) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||
Aircraft Controls | $ | 272,131 | $ | 249,388 | $ | 863,266 | $ | 930,749 | ||||||||||||||||||
Space and Defense Controls | 204,887 | 183,906 | 599,217 | 563,156 | ||||||||||||||||||||||
Industrial Systems | 230,334 | 224,245 | 665,225 | 683,754 | ||||||||||||||||||||||
Net sales | $ | 707,352 | $ | 657,539 | $ | 2,127,708 | $ | 2,177,659 | ||||||||||||||||||
Operating profit (loss): | ||||||||||||||||||||||||||
Aircraft Controls | $ | 20,545 | $ | (42,053) | $ | 70,485 | $ | 31,240 | ||||||||||||||||||
7.5 | % | (16.9) | % | 8.2 | % | 3.4 | % | |||||||||||||||||||
Space and Defense Controls | 21,339 | 22,290 | 71,037 | 72,224 | ||||||||||||||||||||||
10.4 | % | 12.1 | % | 11.9 | % | 12.8 | % | |||||||||||||||||||
Industrial Systems | 23,004 | 17,903 | 66,715 | 69,477 | ||||||||||||||||||||||
10.0 | % | 8.0 | % | 10.0 | % | 10.2 | % | |||||||||||||||||||
Total operating profit (loss) | 64,888 | (1,860) | 208,237 | 172,941 | ||||||||||||||||||||||
9.2 | % | (0.3) | % | 9.8 | % | 7.9 | % | |||||||||||||||||||
Deductions from operating profit: | ||||||||||||||||||||||||||
Interest expense | 8,239 | 9,440 | 25,288 | 29,923 | ||||||||||||||||||||||
Equity-based compensation expense | 1,791 | 1,390 | 6,420 | 4,661 | ||||||||||||||||||||||
Non-service pension expense (income) | 928 | 4,241 | (3,053) | 11,440 | ||||||||||||||||||||||
Corporate and other expenses, net | 5,335 | 6,423 | 18,488 | 21,836 | ||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 48,595 | $ | (23,354) | $ | 161,094 | $ | 105,081 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Aircraft Controls operating profit (loss) - as reported | $ | 20,545 | $ | (42,053) | $ | 70,485 | $ | 31,240 | ||||||||||||||||||
Inventory write-down | — | 18,535 | — | 18,535 | ||||||||||||||||||||||
Long-lived asset impairment | — | 31,530 | — | 31,530 | ||||||||||||||||||||||
Restructuring | — | 2,896 | — | 2,896 | ||||||||||||||||||||||
Aircraft Controls operating profit - as adjusted | $ | 20,545 | $ | 10,908 | $ | 70,485 | $ | 84,201 | ||||||||||||||||||
7.5 | % | 4.4 | % | 8.2 | % | 9.0 | % | |||||||||||||||||||
Space and Defense Controls operating profit - as reported | $ | 21,339 | $ | 22,290 | $ | 71,037 | $ | 72,224 | ||||||||||||||||||
Long-lived asset impairment | — | 341 | — | 341 | ||||||||||||||||||||||
Restructuring | — | 185 | — | 185 | ||||||||||||||||||||||
Space and Defense Controls operating profit - as adjusted | $ | 21,339 | $ | 22,816 | $ | 71,037 | $ | 72,750 | ||||||||||||||||||
10.4 | % | 12.4 | % | 11.9 | % | 12.9 | % | |||||||||||||||||||
Industrial Systems operating profit - as reported | $ | 23,004 | $ | 17,903 | $ | 66,715 | $ | 69,477 | ||||||||||||||||||
Inventory write-down | — | 260 | — | 260 | ||||||||||||||||||||||
Restructuring | — | 2,225 | — | 2,225 | ||||||||||||||||||||||
Industrial Systems operating profit - as adjusted | $ | 23,004 | $ | 20,388 | $ | 66,715 | $ | 71,962 | ||||||||||||||||||
10.0 | % | 9.1 | % | 10.0 | % | 10.5 | % | |||||||||||||||||||
Total operating profit - as adjusted | $ | 64,888 | $ | 54,112 | $ | 208,237 | $ | 228,913 | ||||||||||||||||||
9.2 | % | 8.2 | % | 9.8 | % | 10.5 | % |
Moog Inc. | ||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||
(dollars in thousands) |
July 3, 2021 | October 3, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 90,550 | $ | 84,583 | ||||||||||
Restricted cash | 1,108 | 489 | ||||||||||||
Receivables, net | 896,998 | 855,535 | ||||||||||||
Inventories, net | 632,359 | 623,043 | ||||||||||||
Prepaid expenses and other current assets | 49,513 | 49,837 | ||||||||||||
Total current assets | 1,670,528 | 1,613,487 | ||||||||||||
Property, plant and equipment, net | 639,202 | 600,498 | ||||||||||||
Operating lease right-of-use assets | 62,507 | 68,393 | ||||||||||||
Goodwill | 860,268 | 821,856 | ||||||||||||
Intangible assets, net | 111,867 | 85,046 | ||||||||||||
Deferred income taxes | 18,467 | 18,924 | ||||||||||||
Other assets | 20,471 | 17,627 | ||||||||||||
Total assets | $ | 3,383,310 | $ | 3,225,831 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Current installments of long-term debt | $ | 56,062 | $ | 350 | ||||||||||
Accounts payable | 162,890 | 176,868 | ||||||||||||
Accrued compensation | 111,159 | 109,510 | ||||||||||||
Contract advances | 259,425 | 203,338 | ||||||||||||
Accrued liabilities and other | 216,625 | 220,488 | ||||||||||||
Total current liabilities | 806,161 | 710,554 | ||||||||||||
Long-term debt, excluding current installments | 863,682 | 929,982 | ||||||||||||
Long-term pension and retirement obligations | 181,400 | 183,366 | ||||||||||||
Deferred income taxes | 54,168 | 40,474 | ||||||||||||
Other long-term liabilities | 110,694 | 118,372 | ||||||||||||
Total liabilities | 2,016,105 | 1,982,748 | ||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock - Class A | 43,802 | 43,799 | ||||||||||||
Common stock - Class B | 7,478 | 7,481 | ||||||||||||
Additional paid-in capital | 519,636 | 472,645 | ||||||||||||
Retained earnings | 2,211,305 | 2,112,734 | ||||||||||||
Treasury shares | (1,007,754) | (990,783) | ||||||||||||
Stock Employee Compensation Trust | (85,314) | (64,242) | ||||||||||||
Supplemental Retirement Plan Trust | (69,448) | (53,098) | ||||||||||||
Accumulated other comprehensive loss | (252,500) | (285,453) | ||||||||||||
Total shareholders’ equity | 1,367,205 | 1,243,083 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 3,383,310 | $ | 3,225,831 |
Moog Inc. | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||
(dollars in thousands) |
Nine Months Ended | ||||||||||||||
July 3, 2021 | June 27, 2020 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net earnings | $ | 122,652 | $ | 87,182 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Depreciation | 56,806 | 55,859 | ||||||||||||
Amortization | 10,000 | 9,847 | ||||||||||||
Deferred income taxes | 4,161 | (10,766) | ||||||||||||
Equity-based compensation expense | 6,420 | 4,661 | ||||||||||||
Impairment of long-lived assets and inventory write-down | — | 50,666 | ||||||||||||
Other | (2,781) | 6,831 | ||||||||||||
Changes in assets and liabilities providing (using) cash: | ||||||||||||||
Receivables | (21,329) | 63,272 | ||||||||||||
Inventories | 9,509 | (86,050) | ||||||||||||
Accounts payable | (17,530) | (85,136) | ||||||||||||
Contract advances | 54,414 | 73,040 | ||||||||||||
Accrued expenses | 3,503 | 1,827 | ||||||||||||
Accrued income taxes | 14,776 | (20,555) | ||||||||||||
Net pension and post retirement liabilities | 8,380 | 24,706 | ||||||||||||
Other assets and liabilities | (18,401) | 12,463 | ||||||||||||
Net cash provided by operating activities | 230,580 | 187,847 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (77,600) | (54,265) | ||||||||||||
Purchase of property, plant and equipment | (88,573) | (70,423) | ||||||||||||
Other investing transactions | 3,615 | (3,429) | ||||||||||||
Net cash used by investing activities | (162,558) | (128,117) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Proceeds from revolving lines of credit | 653,500 | 977,850 | ||||||||||||
Payments on revolving lines of credit | (651,986) | (968,459) | ||||||||||||
Proceeds from long-term debt | 42,300 | 6,935 | ||||||||||||
Payments on long-term debt | (55,891) | (52,253) | ||||||||||||
Proceeds from senior notes, net of issuance costs | — | 491,769 | ||||||||||||
Payments on senior notes | — | (300,000) | ||||||||||||
Payments on finance lease obligations | (1,588) | (730) | ||||||||||||
Payment of dividends | (24,081) | (17,049) | ||||||||||||
Proceeds from sale of treasury stock | 4,603 | 3,199 | ||||||||||||
Purchase of outstanding shares for treasury | (26,702) | (191,961) | ||||||||||||
Proceeds from sale of stock held by SECT | 679 | 17,082 | ||||||||||||
Purchase of stock held by SECT | (3,535) | (6,241) | ||||||||||||
Other financing transactions | — | (5,879) | ||||||||||||
Net cash used by financing activities | (62,701) | (45,737) | ||||||||||||
Effect of exchange rate changes on cash | 1,265 | (932) | ||||||||||||
Increase in cash, cash equivalents and restricted cash | 6,586 | 13,061 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 85,072 | 92,548 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 91,658 | $ | 105,609 | ||||||||||
Release Date: | IMMEDIATE | Contact: | Ann Marie Luhr | ||||||||
July 30, 2021 | 716-687-4225 |
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