Exhibit 99.1
MOOG REPORTS 13% INCREASE IN EARNINGS PER SHARE
EAST AURORA, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- Moog Inc. (NYSE: MOG.A
and MOG.B) announced net earnings for the first quarter of $16.8 million or 43
cents per share, an increase of 13% from the same period a year ago. Sales for
the quarter were up 24% to $310 million with all four of the Company's business
segments posting strong growth.
Total Aircraft sales were up 20% to $127 million. Military aircraft sales
were up 11% to $80 million with the biggest increases on the F-35 Joint Strike
Fighter Program and in the aftermarket. Commercial aircraft sales were up 39% to
$47 million. Increased deliveries of original equipment to Boeing, Airbus,
Raytheon, Gulfstream and Bombardier contributed to the sales increase.
Commercial aircraft aftermarket revenues were up 49% to almost $20 million.
The Space and Defense segment had sales for the quarter of $37.1 million, a
gain of $3.9 million or 12% over the previous year. This is primarily due to
work on tactical missile programs and a refurbishment contract on the Minuteman
Program. The Flo-Tork acquisition, which was completed in November, contributed
sales of $700,000 to the segment.
Industrial sales were up 20% to $90 million. Much of that increase was
provided by two recent acquisitions. Including those revenues, sales of controls
for flight-training simulators almost tripled to $9.4 million. Sales were also
up dramatically for turbine controls, material test equipment, and controls for
steel mills.
The Components Group also had the benefit of a recent acquisition and, as a
result, sales were up 59% from a year ago. Excluding the acquisition, sales
would have been up 20%. The segment's largest increase was provided by medical
equipment which increased 58% to a new total of $12 million. The acquisition of
Kaydon's Power and Data Technology group made strong contributions to sales of
controls in both marine and defense applications. Sales of components used on
aircraft were $17 million in the quarter, up over $3 million from a year ago.
Two-thirds of that increase was in aftermarket revenue.
Backlog of $571 million was up 19% from a year ago. Of the $89 million
increase, $56 million was the impact of recent acquisitions.
This is the first quarter in which the Company recorded an expense related
to the grant of stock options. The normal quarterly expense is expected to be
about $400,000, after tax, but in this quarter that expense amounted to $1.4
million, after tax, or 3 cents a share. The Company incurred a similar expense
as the result of the termination of a long-term sales representation agreement.
This expense was mostly felt in Space and Defense. Lastly, the Company had a
$1.9 million, after tax, write-off, the result of an adverse U.K. tax ruling
which eliminated the value of a tax asset on the books of Moog's Company in the
U.K.
"In spite of some unusual expenses in the quarter, the Company had a very
strong start for fiscal '06," said R. T. Brady, Chairman and CEO. "Sales were up
across the board. We had strong organic growth and our new acquisitions
performed better than anticipated. We're looking for even stronger earnings
performance in the quarters ahead."
The Company updated its guidance for fiscal '06. Sales are now projected to
be in the range from $1.198 billion to $1.218 billion. Net earnings are
forecasted in the range of $71.4 million to $74.8 million and earnings per share
in the range of $1.81 to $1.89 with a midrange estimate of $1.85 per share.
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, and medical equipment.
Additional information about the Company's quarter ended December 31, 2005
can be found on its website, http://www.moog.com, including a text of its
prepared conference call remarks.
Cautionary Statement
Information included herein or incorporated by reference 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," "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 (i) fluctuations in general business cycles for commercial aircraft,
military aircraft, space and defense products and industrial capital goods, (ii)
our dependence on government contracts that may not be fully funded or may be
terminated, (iii) our dependence on certain major customers, such as The Boeing
Company and Lockheed Martin, for a significant percentage of our sales, (iv) the
possibility that the demand for our products may be reduced if we are unable to
adapt to technological change, (v) intense competition which may require us to
lower prices or offer more favorable terms of sale, (vi) our significant
indebtedness which could limit our operational and financial flexibility, (vii)
the possibility that new product and research and development efforts may not be
successful which could reduce our sales and profits, (viii) higher pension costs
and increased cash funding requirements, which could occur in future years if
future actual plan results differ from assumptions used for our defined benefit
pension plans, including returns on plan assets and discount rates, (ix) a
write-off of all or part of our goodwill, which could adversely affect our
operating results and net worth and cause us to violate covenants in our bank
agreements, (x) the potential for substantial fines and penalties or suspension
or debarment from future contracts in the event we do not comply with
regulations relating to defense industry contracting, (xi) the potential for
cost overruns on development jobs and fixed price contracts and the risk that
actual results may differ from estimates used in contract accounting, (xii) the
possibility that our subcontractors may fail to perform their contractual
obligations, which may adversely affect our contract performance and our ability
to obtain future business, (xiii) our ability to successfully identify and
consummate acquisitions and integrate the acquired businesses, and the risks
associated with acquisitions, including that the acquired businesses do not
perform in accordance with our expectations, and that we assume unknown
liabilities in connection with the acquired businesses and that indemnification
from the sellers of the acquired businesses for these liabilities will be
limited or unavailable, (xiv) our dependence on our management team and key
personnel, (xv) the possibility of a catastrophic loss of one or more of our
manufacturing facilities, (xvi) the possibility that future terror attacks, war
or other civil disturbances could negatively impact our business, (xvii) our
operations in foreign countries could expose us to political risks and adverse
changes in local, legal, tax and regulatory schemes, (xviii) the possibility
that government regulation could limit our ability to sell our products outside
the United States, (xix) the impact of product liability claims related to our
products used in applications where failure can result in significant property
damage, injury or death and in damage to our reputation, (xx) the possibility
that litigation may result unfavorably to us, (xxi) foreign currency
fluctuations in those countries in which we do business and other risks
associated with international operations and (xxii) the cost of compliance with
environmental laws. The factors identified above 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)
Fourteen Thirteen
Weeks Weeks
Ended Ended
December 31, December 25,
2005 2004
-------------- --------------
Net sales $ 310,171 $ 249,303
Cost of sales 209,574 173,883
Gross profit 100,597 75,420
Research and development 13,607 9,009
Selling, general and administrative 53,560 40,919
Interest 5,620 2,709
Other 327 (44)
73,114 52,593
Earnings before income taxes 27,483 22,827
Income taxes 10,686 7,852
Net earnings $ 16,797 $ 14,975
Net earnings per share
Basic $ 0.43 $ 0.39
Diluted $ 0.43 $ 0.38
Average common shares outstanding
Basic 38,665,125 38,588,226
Diluted 39,339,472 39,444,668
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
Fourteen Thirteen
Weeks Weeks
Ended Ended
December 31, December 25,
2005 2004
-------------- --------------
Net Sales
Aircraft Controls $ 127,105 $ 106,180
Space & Defense Controls 37,102 33,182
Industrial Controls 90,142 74,870
Components 55,822 35,071
Net sales $ 310,171 $ 249,303
Operating Profit and Margins
Aircraft Controls $ 15,940 $ 15,113
12.5% 14.2%
Space & Defense Controls 1,768 3,255
4.8% 9.8%
Industrial Controls 11,550 5,475
12.8% 7.3%
Components 10,147 4,650
18.2% 13.3%
Total operating profit 39,405 28,493
12.7% 11.4%
Deductions from operating profit
Interest expense 5,620 2,709
Stock option expense 2,012 --
Corporate expenses and other 4,290 2,957
Earnings before Income Taxes $ 27,483 $ 22,827
MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, September 24,
2005 2005
-------------- --------------
Cash $ 36,543 $ 33,750
Receivables 305,103 296,986
Inventories 231,334 215,425
Other current assets 55,220 53,897
Total current assets 628,200 600,058
Property, plant and equipment 272,306 262,841
Goodwill 384,187 378,205
Other non-current assets 65,955 62,223
Total assets $ 1,350,648 $ 1,303,327
Notes payable $ 884 $ 885
Current installments of
long-term debt 16,995 17,035
Contract loss reserves 15,953 14,121
Other current liabilities 258,840 255,311
Total current liabilities 292,672 287,352
Long-term debt 356,573 330,977
Other long-term liabilities 164,829 163,961
Total liabilities 814,074 782,290
Shareholders' equity 536,574 521,037
Total liabilities and
shareholders' equity $ 1,350,648 $ 1,303,327
SOURCE Moog Inc.
-0- 01/27/2006
/CONTACT: Ann Marie Luhr of Moog Inc., +1-716-687-4225 /
/First Call Analyst: /
/FCMN Contact: aluhr@moog.com /
/Web site: http://www.moog.com /
(MOGA MOGB)