EAST AURORA, NY--(Marketwired - Apr 29, 2016) - Moog Inc. (
Total Aircraft Controls sales in the quarter were slightly higher at $276 million. Commercial OEM sales were 3% higher, at $114 million. Increased sales to Airbus, up 36%, offset slightly weaker Boeing sales, down 5%, and business jet sales, down 20%. Commercial aftermarket sales were $30 million, up 2%, on initial provisioning spares for the A350 program.
Military aircraft sales were down 2%, to $132 million. OEM sales were slightly higher, at $81 million, with higher foreign military sales offsetting lower V-22 tilt rotor sales. Military aftermarket sales were down 6%, to $51 million, as the C-5 modernization program continues to wind down.
Space and Defense segment sales were $89 million, 4% lower than a year ago. Space sales were $43 million, a decrease of 12% due to lower sales of controls for satellites. Defense sales of $46 million were up 4% on improved military vehicle sales.
Sales in the Company's Industrial Systems segment were flat at $128 million. Sales of simulation and test products, including motion bases for flight training simulators, were 11% higher, at $31 million. Excluding currency effects, industrial automation sales of $66 million were stable and in line with the broader industrial economy. Sales into energy markets were down 6% from last year, to $31 million.
Components segment sales at $94 million, were 18% lower than last year but up nicely from the first quarter. Sales of aerospace and defense products were $40 million, down 13%, partly due to softer helicopter program and aftermarket sales. Sales into energy, industrial and medical markets experienced slowdowns across a range of programs.
The Medical Devices segment had sales of $24 million in the quarter, mostly unchanged from a year ago. Through the first six months of the year, excluding previously divested life sciences sales, organic sales are up 11%.
The Company incurred $8 million in restructuring during the quarter, mostly associated with the Aircraft Controls segment.
The twelve month consolidated backlog is $1.2 billion compared to $1.3 billion a year ago.
The Company maintained its previous guidance for 2016 to include sales for the year at $2.47 billion and earnings per share of $3.35, plus or minus $0.15 per share.
"We're pleased with the results of the quarter," said John Scannell, Chairman and CEO. "We came in at the high end of our guidance, had strong cash flow and we're maintaining our sales and EPS forecast for the full year."
In conjunction with today's release, Moog will host a conference call beginning at 10:00 a.m. ET, which will be broadcast live over the Internet. John Scannell and Don Fishback, CFO, will host the call. Listeners can access the call live or in replay mode at www.moog.com/investors/communications. Supplemental financial data will be available on the webcast link prior to the conference call.
Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the company can be found at www.moog.com.
Cautionary Statement
Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume" and "assume," are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. These important factors, risks and uncertainties include:
These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. We disclaim any obligation to update the forward-looking statements made in this report.
Moog Inc. |
CONSOLIDATED STATEMENTS OF EARNINGS |
(dollars in thousands, except per share data) |
Three Months Ended | Six Months Ended | ||||||||||||||
April 2, 2016 |
April 4, 2015 |
April 2, 2016 |
April 4, 2015 |
||||||||||||
Net sales | $ | 611,142 | $ | 637,246 | $ | 1,179,599 | $ | 1,267,769 | |||||||
Cost of sales | 431,955 | 463,696 | 838,952 | 910,301 | |||||||||||
Gross profit | 179,187 | 173,550 | 340,647 | 357,468 | |||||||||||
Research and development | 39,731 | 31,404 | 74,529 | 62,725 | |||||||||||
Selling, general and administrative | 82,771 | 92,158 | 165,765 | 189,985 | |||||||||||
Interest | 8,935 | 7,669 | 17,257 | 13,037 | |||||||||||
Restructuring | 8,069 | - | 8,342 | - | |||||||||||
Other | (936 | ) | 921 | (1,518 | ) | 885 | |||||||||
Earnings before income taxes | 40,617 | 41,398 | 76,272 | 90,836 | |||||||||||
Income taxes | 9,710 | 9,305 | 19,205 | 23,478 | |||||||||||
Net earnings attributable to common shareholders and noncontrolling interest | $ | 30,907 | $ | 32,093 | $ | 57,067 | $ | 67,358 | |||||||
Net earnings (loss) attributable to noncontrolling interest | (143 | ) | - | (224 | ) | - | |||||||||
Net earnings attributable to common shareholders | $ | 31,050 | $ | 32,093 | $ | 57,291 | $ | 67,358 | |||||||
Net earnings per share attributable to common shareholders | |||||||||||||||
Basic | $ | 0.85 | $ | 0.81 | $ | 1.57 | $ | 1.68 | |||||||
Diluted | $ | 0.85 | $ | 0.80 | $ | 1.55 | $ | 1.66 | |||||||
Average common shares outstanding | |||||||||||||||
Basic | 36,481,996 | 39,601,795 | 36,597,972 | 40,116,731 | |||||||||||
Diluted | 36,693,190 | 39,984,668 | 36,860,760 | 40,550,814 | |||||||||||
Moog Inc. |
CONSOLIDATED SALES AND OPERATING PROFIT |
(dollars in thousands) |
Three Months Ended | Six Months Ended | ||||||||||||||||||
April 2, 2016 |
April 4, 2015 |
April 2, 2016 |
April 4, 2015 |
||||||||||||||||
Net sales: | |||||||||||||||||||
Aircraft Controls | $ | 275,769 | $ | 274,396 | $ | 530,604 | $ | 540,764 | |||||||||||
Space and Defense Controls | 89,175 | 93,256 | 171,815 | 193,211 | |||||||||||||||
Industrial Systems | 128,244 | 129,145 | 253,423 | 262,511 | |||||||||||||||
Components | 93,813 | 115,062 | 173,388 | 222,766 | |||||||||||||||
Medical Devices | 24,141 | 25,387 | 50,369 | 48,517 | |||||||||||||||
Net sales | $ | 611,142 | $ | 637,246 | $ | 1,179,599 | $ | 1,267,769 | |||||||||||
Operating profit: | |||||||||||||||||||
Aircraft Controls | $ | 19,042 | $ | 22,336 | $ | 37,173 | $ | 46,794 | |||||||||||
6.9 | % | * | 8.1 | % | 7.0 | % | * | 8.7 | % | ||||||||||
Space and Defense Controls | 13,357 | 4,909 | 25,173 | 13,635 | |||||||||||||||
15.0 | % | 5.3 | % | 14.7 | % | 7.1 | % | ||||||||||||
Industrial Systems | 13,270 | 12,685 | 26,903 | 25,904 | |||||||||||||||
10.3 | % | 9.8 | % | 10.6 | % | 9.9 | % | ||||||||||||
Components | 8,385 | 15,900 | 13,085 | 32,862 | |||||||||||||||
8.9 | % | 13.8 | % | 7.5 | % | 14.8 | % | ||||||||||||
Medical Devices | 2,554 | 716 | 5,833 | 3,052 | |||||||||||||||
10.6 | % | 2.8 | % | 11.6 | % | 6.3 | % | ||||||||||||
Total operating profit | 56,608 | 56,546 | 108,167 | 122,247 | |||||||||||||||
9.3 | % | 8.9 | % | 9.2 | % | 9.6 | % | ||||||||||||
Deductions from operating profit: | |||||||||||||||||||
Interest expense | 8,935 | 7,669 | 17,257 | 13,037 | |||||||||||||||
Equity-based compensation expense | 983 | 568 | 1,919 | 3,966 | |||||||||||||||
Corporate and other expenses, net | 6,073 | 6,911 | 12,719 | 14,408 | |||||||||||||||
Earnings before income taxes | $ | 40,617 | $ | 41,398 | $ | 76,272 | $ | 90,836 |
* Included $5,923 of restructuring charges. Adjusted operating margin is 9.1% and 8.1% for the three and six months ended April 2, 2016, respectively. |
Moog Inc. |
CONSOLIDATED BALANCE SHEETS |
(dollars in thousands) |
April 2, 2016 |
October 3, 2015 |
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 348,322 | $ | 309,853 | ||||
Receivables | 703,022 | 698,419 | ||||||
Inventories | 500,224 | 493,360 | ||||||
Deferred income taxes | 92,127 | 91,210 | ||||||
Prepaid expenses and other current assets | 38,096 | 34,653 | ||||||
Total current assets | 1,681,791 | 1,627,495 | ||||||
Property, plant and equipment, net | 529,735 | 536,756 | ||||||
Goodwill | 752,826 | 737,212 | ||||||
Intangible assets, net | 129,350 | 143,723 | ||||||
Other assets | 41,943 | 41,285 | ||||||
Total assets | $ | 3,135,645 | $ | 3,086,471 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | 1,370 | $ | 83 | ||||
Current installments of long-term debt | 434 | 34 | ||||||
Accounts payable | 155,763 | 165,973 | ||||||
Accrued salaries, wages and commissions | 119,204 | 125,270 | ||||||
Customer advances | 177,557 | 167,423 | ||||||
Contract loss reserves | 29,740 | 30,422 | ||||||
Other accrued liabilities | 112,738 | 116,300 | ||||||
Total current liabilities | 596,806 | 605,505 | ||||||
Long-term debt, excluding current installments | 1,103,342 | 1,075,067 | ||||||
Long-term pension and retirement obligations | 322,407 | 348,239 | ||||||
Deferred income taxes | 69,364 | 60,209 | ||||||
Other long-term liabilities | 3,211 | 2,919 | ||||||
Total liabilities | 2,095,130 | 2,091,939 | ||||||
Commitment and contingencies | - | - | ||||||
Redeemable noncontrolling interest | 8,377 | - | ||||||
Shareholders' equity | ||||||||
Common stock | 51,280 | 51,280 | ||||||
Other shareholders' equity | 980,858 | 943,252 | ||||||
Total shareholders' equity | 1,032,138 | 994,532 | ||||||
Total liabilities and shareholders' equity | $ | 3,135,645 | $ | 3,086,471 | ||||
Moog Inc. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(dollars in thousands) |
Six Months Ended | |||||||||||
April 2, 2016 |
April 4, 2015 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net earnings attributable to common shareholders and noncontrolling interest | $ | 57,067 | $ | 67,358 | |||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||||||||||
Depreciation | 38,554 | 40,460 | |||||||||
Amortization | 11,428 | 12,946 | |||||||||
Deferred income taxes | 2,292 | 9,071 | |||||||||
Equity-based compensation expense | 1,919 | 3,966 | |||||||||
Other | 5,991 | 3,348 | |||||||||
Changes in assets and liabilities providing (using) cash: | |||||||||||
Receivables | (5,606 | ) | 20,461 | ||||||||
Inventories | (5,330 | ) | (7,847 | ) | |||||||
Accounts payable | (13,439 | ) | 18,934 | ||||||||
Customer advances | 10,888 | (3,358 | ) | ||||||||
Accrued expenses | (5,802 | ) | (20,747 | ) | |||||||
Accrued income taxes | 2,552 | (7,729 | ) | ||||||||
Net pension and post retirement liabilities | (13,171 | ) | (7,014 | ) | |||||||
Other assets and liabilities | (8,920 | ) | 1,699 | ||||||||
Net cash provided by operating activities | 78,423 | 131,548 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Acquisitions of businesses, net of cash acquired | (11,016 | ) | - | ||||||||
Purchase of property, plant and equipment | (27,685 | ) | (37,921 | ) | |||||||
Other investing transactions | 1,058 | 3,551 | |||||||||
Net cash used by investing activities | (37,643 | ) | (34,370 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net short-term repayments | - | (3,237 | ) | ||||||||
Proceeds from revolving lines of credit | 210,320 | 248,785 | |||||||||
Payments on revolving lines of credit | (182,455 | ) | (383,785 | ) | |||||||
Payments on long-term debt | (9,660 | ) | (5,241 | ) | |||||||
Proceeds from senior notes, net of issuance costs | - | 294,430 | |||||||||
Proceeds from sale of treasury stock | 2,229 | 10,542 | |||||||||
Purchase of outstanding shares for treasury | (25,156 | ) | (204,958 | ) | |||||||
Proceeds from sale of stock held by SECT | 2,897 | - | |||||||||
Purchase of stock held by SECT | (1,515 | ) | (8,440 | ) | |||||||
Purchase of stock held by SERP Trust | (2,300 | ) | - | ||||||||
Excess tax benefits from equity-based payment arrangements | 471 | 5,888 | |||||||||
Net cash used by financing activities | (5,169 | ) | (46,016 | ) | |||||||
Effect of exchange rate changes on cash | 2,858 | (20,796 | ) | ||||||||
Increase in cash and cash equivalents | 38,469 | 30,366 | |||||||||
Cash and cash equivalents at beginning of period | 309,853 | 231,292 | |||||||||
Cash and cash equivalents at end of period | $ | 348,322 | $ | 261,658 | |||||||
Contact:
Ann Marie Luhr
716-687-4225
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