Moog Announces Fourth Quarter and Year End Results

Moog Announces Fourth Quarter and Year End Results 
EAST AURORA, NY -- (Marketwired) -- 11/01/13 --  Moog Inc. (NYSE:
MOG.A) (NYSE: MOG.B) announced today fiscal year 2013 sales of $2.61
billion, up 6%. Net earnings of $120 million and EPS of $2.63 were
both lower than last year. Fiscal '13 included a $.52 goodwill
impairment charge in Medical Devices in the fourth quarter, $.15 of
asset write-downs in the third quarter and $.20 of restructuring
during the year. Exclusive of those charges, adjusted net earnings of
$161 million and adjusted earnings per share of $3.50 were up 5% from
a year ago.  
For the fourth quarter, sales of $676 million were up 7%. Net
earnings at $16 million and earnings per share of $.34, were down
from a year ago. Exclusive of the Medical impairment and
restructuring charges, fourth quarter adjusted net earnings were $44
million and EPS was $.96, up 5% from last year.  
Aircraft Controls sales for the year crossed the billion dollar mark
for the first time. Sales of $1.1 billion were up 10%. Commercial
aircraft sales were very strong, up 20%. Total military sales were
$596 million, up 4%, on K-46 tanker development, F-35 production and
aftermarket sales. Military aftermarket sales were $231 million, 8%
higher.  
In the fourth quarter, Aircraft Controls sales of $276 million
increased 9% from the same quarter last year. Commercial revenues
increased 23% as production rates for aircraft continue to ramp up.
Military aircraft sales were down slightly, at $146 million, on
slower OEM deliveries. Military aftermarket sales were marginally
higher at $62 million.  
Space and Defense sales of $396 million for the year were 10% higher.
Sales of controls for spacecraft, payloads and space exploration
programs increased 28%, driven by acquisitions and NASA program
sales. Defense sales were 5% lower as program deliveries slowed.
Security product sales were $48 million. For the fourth quarter,
Space and Defense sales mirrored the trend for the year. 
Industrial Systems had revenues for the year of $592 million, a 7%
decrease from last year. Wind energy sales were down 38% from a year
ago as demand in China and Europe declined. Industrial automation
sales were down 3%, with most of the underlying markets experiencing
softness. Sales for simulation 
and test equipment were stronger, up
6%. Non-renewable energy product sales were 3% higher. Industrial
Systems sales in the fourth quarter were up 2% at $153 million. 
Components segment sales were $415 million for the year, up 11%. The
growth was in energy, industrial and medical markets with aerospace
and defense sales unchanged. Sales for the quarter were a record $105
million. Both the year and fourth quarter sales reflected higher
energy and industrial sales because of the Tritech and Aspen Motion
Technologies acquisitions. 
Medical Devices generated sales of $147 million for the year, up 5%
from the year previous on higher pump and administration set sales.
For the quarter, sales in Medical Devices of $39 million were up 9%
from a year ago.  
Year-end backlog of $1.3 billion was level with the prior year.  
The Company also affirmed its projections for fiscal 2014. The
Company's forecast includes sales of $2.67 billion and earnings per
share in a range of $3.90 to $4.10. The midpoint, $4.00, represents a
14% increase in adjusted EPS. 
"The fourth quarter was another quarter of adjustment as we get our
house in order for a better 2014," said John Scannell, CEO. "Fiscal
'13 will be remembered as the year of restructuring and write-offs.
Looking past these adjustments, our fiscal '13 operational
performance was actually up on fiscal '12 and we look forward to
further improvements in fiscal '14."  
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, CEO, 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 web page 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:  


 
--  the markets we serve are cyclical and sensitive to domestic and
    foreign economic conditions and events, which may cause our operating
    results to fluctuate
--  we operate in highly competitive markets with competitors who may have
    greater resources than we possess
--  we depend heavily on government contracts that may not be fully funded
    or may be terminated, and the failure to receive funding or the
    termination of one or more of these contracts could reduce our sales
    and increase our costs
--  we make estimates in accounting for long-term contracts, and changes
    in these estimates may have significant impacts on our earnings
--  we enter into fixed-price contracts, which could subject us to losses
    if we have cost overruns
--  if our subcontractors or suppliers fail to perform their contractual
    obligations, our prime contract performance and our ability to obtain
    future business could be materially and adversely impacted
--  contracting on government programs is subject to significant
    regulation, including rules related to bidding, billing and accounting
    kickbacks and false claims, and any non-compliance could subject us to
    fines and penalties or possible debarment
--  the loss of Boeing as a customer or a significant reduction in sales
    to Boeing could adversely impact our operating results
--  our new product research and development efforts may not be successful
    which could reduce our sales and earnings
--  our inability to adequately enforce and protect our intellectual
    property or defend against assertions of infringement could prevent or
    restrict our ability to compete
--  our business operations may be adversely affected by information
    systems interruptions or infringements
--  our indebtedness and restrictive covenants under our credit facilities
    could limit our operational and financial flexibility
--  significant changes in discount rates, rates of return on pension
    assets, mortality tables and other factors could affect our earnings,
    equity and pension funding requirements
--  a write-off of all or part of our good
will or other intangible assets
    could adversely affect our operating results and net worth
--  our sales and earnings growth may be affected if we cannot identify,
    acquire or integrate strategic acquisitions
--  our operations in foreign countries expose us to political and
    currency risks and adverse changes in local legal and regulatory
    environments
--  unforeseen exposure to additional tax income liabilities may affect
    our operating results
--  government regulations could limit our ability to sell our products
    outside the United States and otherwise adversely affect our business
--  the failure or misuse of our products may damage our reputation,
    necessitate a product recall or result in claims against us that
    exceed our insurance coverage, thereby requiring us to pay significant
    damages
--  future terror attacks, natural disasters or other catastrophic events
    beyond our control could negatively impact our business
--  our operations are subject to environmental laws, and complying with
    those laws may cause us to incur significant costs
--  we are involved in various legal proceedings, the outcome of which may
    be unfavorable to us

  
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. 


 
                                                                            
                                                                            
                                  MoogInc.                                  
                     CONSOLIDATED STATEMENTS OF EARNINGS                    
                (dollars in thousands, except per share data)               
                                                                            
                          Three Months Ended         Twelve Months Ended    
                     September 28, September 29, September 28, September 29,
                          2013          2012          2013          2012    
                     ------------- ------------- ------------- -------------
                                                                            
Net sales            $     675,853 $     632,727 $   2,610,311 $   2,469,536
Cost of sales              480,495       440,406     1,826,561     1,724,232
                                                                            
                     ------------- ------------- ------------- -------------
                                                                            
Gross profit               195,358       192,321       783,750       745,304
                                                                            
                     ------------- ------------- ------------- -------------
                                                                            
Research and                                                                
 development                31,102        32,118       134,652       116,403
Selling, general and                                                        
 administrative             94,216        97,888       396,636       385,051
Interest                     5,840         8,564        26,962        34,312
Goodwill impairment         38,200             -        38,200             -
Restructuring                7,079             -        14,075             -
Other                          572         1,007         8,219           697
                                                                            
                     ------------- ------------- ------------- -------------
                                                                            
Earnings before                                                             
 income taxes               18,349        52,744       165,006       208,841
                                                                            
Income taxes                 2,724        10,947        44,509        56,379
                                                                            
                     ------------- ------------- ------------- -------------
                                                                            
Net earnings         $      15,625 $      41,797 $     120,497 $     152,462
                                                                            
                     ============= ============= ============= =============
                                                                            
Net earnings per                                                            
 share                                                                      
                                                                            
 Basic               $        0.34 $        0.92 $        2.66 $        3.37
                     ============= ============= ============= =============
                                                                            
 Diluted             $        0.34 $        0.91 $        2.63 $        3.33
      
               ============= ============= ============= =============
                                                                            
Average common                                                              
 shares outstanding                                                         
                                                                            
 Basic                  45,337,373    45,289,341    45,335,336    45,246,960
                     ============= ============= ============= =============
                                                                            
 Diluted                45,923,800    45,704,007    45,823,720    45,718,324
                     ============= ============= ============= =============
                                                                            
                                                                            
                                                                            
                                                                            
Net earnings and                                                            
 earnings per share                                                         
 - as adjusted                                                              
                                                                            
Net earnings as                                                             
 reported            $      15,625 $      41,797 $     120,497 $     152,462
                                                                            
Goodwill impairment         23,760             -        23,760             -
                                                                            
Restructuring                4,530             -         9,008             -
                                                                            
Loss on sale of                                                             
 business                       29             -         5,213             -
                                                                            
Write down of                                                               
 investment                     53             -         2,121             -
                                                                            
                     ------------- ------------- ------------- -------------
Net earnings - as                                                           
 adjusted            $      43,997 $      41,797 $     160,599 $     152,462
                                                                            
                     ============= ============= ============= =============
                                                                            
Diluted net earnings                                                        
 per share - as                                                             
 adjusted            $        0.96 $        0.91 $        3.50 $        3.33
                     ============= ============= ============= =============
                                                                            
                                                                            
                                                                            
                                                                                
                                                                                
                                    MoogInc.                                    
                    CONSOLIDATED SALES AND OPERATING PROFIT                     
                             (dollars in thousands)                             
                                                                                
                         Three Months Ended            Twelve Months Ended      
                   September 28,   September 29,  September 28,   September 29, 
                        2013            2012           2013            2012     
                                                                                
                   -------------   -------------  -------------   ------------- 
Net Sales                                                                       
                                                                                
 Aircraft Controls $     275,591   $     253,733  $   1,059,587   $     963,421 
                                                                                
 Space and Defense                                                              
  Controls               103,721          93,412        395,945         358,755 
                                                                                
 Industrial                                                                     
  Systems                152,774         149,742        592,112         633,713 
                                                                                
 Components              104,803          99,956        415,428         374,081 
                                                                                
 Medical Devices          38,964          35,884        147,239         139,566 
                                                                                
                   -------------   -------------  -------------   ------------- 
                                                                                
Net sales          $     675,853   $     632,727  $   2,610,311   $   2,469,536 
                                                                                
                   =============   =============  =============   ============= 
                                                                                
Operating Profit                                                                
 (Loss) and                                                                     
 Margins                                                                        
                                                                                
 Aircraft Controls $      33,104   $      29,146  $     126,751   $     104,582 
                            12.0%           11.5%          12.0%           10.9%
                                                                                
 Space and Defense                                                              
  Controls                 2,740          10,316         25,350          42,854 
                             2.6%           11.0%           6.4%           11.9%
                                                                                
 Industrial                                                                     
  Systems                 16,097          12,265         42,254          63,243 
                            10.5%            8.2%           7.1%           10.0%
                                                                                
 Components               16,183          16,138         68,731          57,303 
                            15.4%           16.1%          16.5%           15.3%
                                                                                
 Medical Devices         (35,675)            998        (35,542)          5,443 
                           (91.6%)           2.8%         (24.1%)           3.9%
                                                                                
                   -------------   -------------  -------------   ------------- 
Total operating                                                                 
 profit                   32,449          68,863        227,544         273,425 
                             4.8%           10.9%           8.7%           11.1%
                                                                                
Deductions from                                                                 
 Operating Profit                                                               
                                                                                
 Interest expense          5,840           8,564         26,962          34,312 
                                                                                
 Equity-based                                                                   
  compensation                                                                  
  expense                    947             686          6,620           6,226 
                                                                                
 Corporate                                                                      
  expenses and                                                                  
  other                    7,313           6,869         28,956          24,046 
                                                                                
                   -------------   -------------  -------------   ------------- 
                                                                                
Earnings before                                                                 
 Income Taxes      $      18,349   $      52,744  $     165,006   $     208,841 
                                                                                
                   =============   =============  =============   ============= 
                                                                                
                                                                                
Operating Profit                                                                
 (Loss) and                                                                     
 Margins - as                                                                   
 adjusted                                                                       
                                                                                
 Aircraft Controls                                                              
  as reported      $      33,104   $      29,146  $     126,751   $     104,582 
                                                                                
   Restructuring              (8)              -          1,692               - 
                                                                                
                   -------------   -------------  -------------   ------------- 
 Aircraft Controls                                                              
  as adjusted      $      33,096   $      29,146  $     128,443   $     104,582 
                            12.0%           11.5%          12.1%           10.9%
                                                                                
                                                                                
 Space and Defense                                                              
  Controls as                                                                   
  reported         $       2,740   $      10,316  $      25,350   $      42,854 
                                                                                
   Restructuring           4,412               -          4,968               - 
                                                                                
                   -------------   -------------  -------------   ------------- 
 Space and Defense                                                              
  Controls as                                                                   
  adjusted         $       7,152   $      10,316  $      30,318   $      42,854 
                             6.9%           11.0%           7.7%           11.9%
                                                                                
 Industrial                                                                     
  Systems as                                                                    
  reported         $      16,097   $      12,265  $      42,254   $      63,243 
                                                                                
   Restructuring           2,675               -          7,415               - 
                                                                                
   Write down of                                                                
    investment                53               -          2,121               - 
                                                                                
                   -------------   -------------  -------------   ------------- 
 Industrial                                                                     
  Systems - as                                                                  
  adjusted         $      18,825   $      12,265  $      51,790   $      63,243 
                            12.3%            8.2%           8.7%           10.0%
                                                                                
 Medical Devices                                                                
  as reported      $     (35,675)  $         998  $     (35,542)  $       5,443 
                                                                                
   Goodwill                                                                     
    impairment            38,200               -         38,200               - 
                                                                                
   Loss on sale of                                                              
    business                  47               -          6,792               - 
                                                                                
                   -------------   -------------  -------------   ------------- 
 Medical Devices -                                                              
  as adjusted      $       2,572   $         998  $       9,450   $       5,443 
                             6.6%            2.8%           6.4%            3.9%
                                                                                
Total operating                                                                 
 profit - as                                                                    
 adjusted          $      77,828   $      68,863  $     288,732   $     273,425 
                            11.5%           10.9%          11.1%           11.1%
                   -------------   -------------  -------------   ------------- 
                                                                                
                                                                                
                                                                            
                                                                            
                                  MoogInc.                                  
                         CONSOLIDATED BALANCE SHEETS                        
                           (dollars in thousands)                           
                                                                            
                                                September 28,  September 29,
                                                    2013           2012     
                                               -------------- --------------
                                                                            
Cash                                           $      157,090 $      148,841
                                                                            
Receivables                                           811,376        744,551
                                                                            
Inventories                                           551,674        538,262
                                                                            
Other current assets                                  127,235        117,254
                                                                            
                                                                            
                                               -------------- --------------
  Total current assets                              1,647,375      1,548,908
                                                                            
Property, plant and equipment                         562,363        546,179
                                                                            
Goodwill and intangible assets                        975,680        975,049
                                                                            
Other non-current assets                               51,677         35,771
                                                                            
                                               -------------- --------------
  Total assets                                 $    3,237,095 $    3,105,907
                                                                            
                                               ============== ==============
                                                                            
                                                                            
                                                                            
Short-term borrowings                          $      105,088 $       90,774
                                                                            
Current installments of long-term debt                  3,382          3,186
                                                                            
Contract loss reserves                                 44,228         48,428
                                                                            
Other current liabilities                             570,532        521,488
                                                                            
                                               -------------- --------------
                                                                            
  Total current liabilities                           723,230        663,876
                                                                            
Long-term debt                                        600,687        670,662
                                                                            
Other long-term liabilities                           377,413        466,579
                                                                            
                                               -------------- --------------
                                                                            
  Total liabilities                                 1,701,330      1,801,117
                                                                            
Shareholders' equity                                1,535,765      1,304,790
                                                                            
                                               -------------- --------------
  Total liabilities and shareholders' equity   $    3,237,095 $    3,105,907
                                               ============== ==============

  
Contact 
Ann Marie Luhr
716-687-4225 
MOOG INC.
EAST AURORA, NEW YORK 14052 
TEL-716/652-2000 
FAX -716/687-4457 
 
 
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