Exhibit 99.1
PRESS INFORMATION
MOOG INC., EAST AURORA, NEW YORK 14052 TEL-716/652-2000 FAX -716/687-4457
release date Immediate contact Ann Marie Luhr
November 7, 2006 716-687-4225
MOOG REPORTS YEAR-END EARNINGS PER SHARE UP 20%
Moog Inc. (NYSE: MOG.A and MOG.B) announced today net earnings of $81.3 million
and earnings per share of $1.97, an increase of 20% over last year's $1.64. The
Company began expensing stock options this year and if stock options had been
expensed last year, the year-over-year earnings per share increase would be 23%.
Sales for the year of $1.306 billion increased by $255 million or 24% over the
year previous. Sales growth in fiscal '06 accelerated because of recent
acquisitions, but the majority of the sales increase was the result of organic
growth.
Fourth quarter net earnings were $21.8 million, an increase of 26% over last
year's fourth quarter. Earnings per share were 51 cents, an increase of 16% over
last year's 44 cents. Total sales of $341 million were up $60 million compared
with last year.
For the Aircraft segment, sales for the year increased $76 million to $527
million. Military aircraft sales were $331 million, up $34 million from the year
previous. A high level of activity on the F-35 Joint Strike Fighter program and
substantial growth in aftermarket revenue accounted for most of the increase in
military aircraft sales. Commercial aircraft revenues were up a remarkable $42
million to a total of $197 million. OEM sales to Boeing, Airbus, and to various
producers of Business Jets, and a 29% increase in aftermarket revenues all
contributed to the sales increase. Margins for the year in Aircraft were off
slightly as a result of high R&D expenditures on the new Boeing 787 Dreamliner.
For the quarter, Aircraft sales were up 16% to $143 million. The increase was
shared between military and commercial sales.
The Space and Defense segment made real progress in '06. Sales were up 15%, an
increase of almost $20 million, to a total of $148 million. The big increase was
in defense controls primarily on the Marine Corps Light Armored Vehicle and the
Stryker Mobile Gun System. Sales were up, also, in controls for Satellites and
Spacecraft and for Tactical Missiles. Margins continue to improve in this
segment.
For the quarter, Space and Defense sales were $36 million, up 7%, once again led
by increases in defense controls.
Sales for the year in the Industrial segment were $381 million, up 21% or $66
million from a year ago. Of the increase, about $39 million was attributable to
recent acquisitions and organic growth was 9%. Sales were up in almost every
major product category. Sales in motion simulators and in the test equipment
market doubled. Turbine controls were up by over 30%. Industrial margins were up
significantly from a year ago.
For the quarter, sales in the Industrial segment were up $14 million to over $94
million. The pattern of sales increases in the quarter reflected the experience
for the year.
Fiscal '06 was an extraordinary year for the Components Group. Sales were up $81
million or 52% to a total of $238 million. The Components Group was established
three years ago when the Company acquired the Litton Poly Scientific Division of
Northrop Grumman, a $130 million company. During the intervening three-year
period, this segment has grown by $108 million, half of which came from the
Kaydon acquisition. Every category of business was up substantially in '06.
For the quarter, total Components Group sales of $62 million were up 39% from a
year ago and most of this increase was organic since the Kaydon acquisition
occurred at the beginning of last year's fourth quarter. Sales in the quarter
were also up in every product and market category. Margins in the Components
Group were very strong.
At the beginning of this year's third quarter, Moog acquired the assets of
Curlin Medical L.L.C., a manufacturer of infusion pumps, and created a new
Medical Devices segment. Toward the end of the fourth quarter, the Company
acquired McKinley Medical Corporation, whose two additional infusion pump
product lines complement the Curlin products. For the year, the Medical Devices
segment generated sales of $13 million and incurred a small operating loss after
purchase accounting adjustments.
For the quarter, sales were $6.6 million and the segment achieved breakeven
operating profit despite purchase accounting adjustments.
Year-end, twelve-month consolidated backlog of $645 million is up $106 million
or 20% from the backlog a year ago.
The Company's guidance for fiscal '07 remains largely unchanged. The Company is
forecasting fiscal '07 revenues in a range $1.428 billion to $1.448 billion. Net
earnings are forecast in a range between $94 million and $98 million and EPS
between $2.21 and $2.29. The midpoint of this range, or $2.25, represents a 14%
increase in EPS over the results just reported for fiscal '06.
"Fiscal '06 was a great year for our Company" said R. T. Brady, Chairman and
CEO. "Sales were up 24%, net earnings up 26% and earnings per share up 23% on a
comparable accounting basis. In addition, the year was characterized by a number
of technical accomplishments including the delivery of hardware for the first
flight of the Joint Strike Fighter, and substantial completion of the design for
the flight control actuation on the Boeing 787. Our Industrial and Components
segments had a remarkable year in terms of sales increases and margin
improvement. It's not that common for business to be so strong in all of our
segments at the same time, but fiscal '06 was one of those years. And, the 7,000
folks we have in 25 countries all over the globe were able to make the year a
great success."
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 September 30, 2006 can
be found on its website, www.moog.com including the 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, industrial capital goods and
medical devices, (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) increased cash funding requirements for pension plans, which
could occur in future years if future 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 for
which we are not indemnified, (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)
THREE MONTHS ENDED TWELVE MONTHS ENDED
----------------------------- -----------------------------
SEPTEMBER 30, September 24, SEPTEMBER 30, September 24,
2006 2005 2006 2005
------------- ------------- ------------- -------------
Net sales $ 340,751 $ 280,770 $ 1,306,494 $ 1,051,342
Cost of sales 228,249 193,520 880,744 723,050
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Gross profit 112,502 87,250 425,750 328,292
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Research and development 21,109 12,532 68,886 43,561
Selling, general and administrative 55,259 44,696 213,657 175,888
Interest 5,639 4,287 21,861 13,671
Other 438 519 1,197 254
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82,445 62,034 305,601 233,374
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Earnings before income taxes 30,057 25,216 120,149 94,918
Income taxes 8,212 7,821 38,803 30,126
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Net earnings $ 21,845 $ 17,395 $ 81,346 $ 64,792
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Net earnings per share
Basic $ 0.52 $ 0.45 $ 2.01 $ 1.68
============= ============= ============= =============
Diluted $ 0.51 $ 0.44 $ 1.97 $ 1.64
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Average common shares outstanding
Basic 41,970,944 38,623,197 40,558,717 38,608,235
============= ============= ============= =============
Diluted 42,630,187 39,480,698 41,247,689 39,498,834
============= ============= ============= =============
Note - The Company's financial statements include thirteen weeks for the three
months ended September 30, 2006 and September 24, 2005 and 53 weeks for year
ended September 30, 2006 compared to 52 weeks for the year ended September 24,
2005.
MOOG INC.
CONSOLIDATED SALES AND OPERATING PROFIT
(dollars in thousands)
THREE MONTHS ENDED TWELVE MONTHS ENDED
----------------------------- -----------------------------
SEPTEMBER 30, September 24, SEPTEMBER 30, September 24,
2006 2005 2006 2005
------------- ------------- ------------- -------------
NET SALES
Aircraft Controls $ 142,636 $ 123,104 $ 527,250 $ 451,692
Space and Defense Controls 35,807 33,560 147,961 128,478
Industrial Controls 94,350 79,877 380,711 314,952
Components 61,602 44,229 237,578 156,220
Medical Devices 6,356 - 12,994 -
------------- ------------- ------------- -------------
Net sales $ 340,751 $ 280,770 $ 1,306,494 $ 1,051,342
============= ============= ============= =============
OPERATING PROFIT AND MARGINS
Aircraft Controls $ 18,768 $ 18,164 $ 66,673 $ 63,900
13.2% 14.8% 12.6% 14.1%
Space and Defense Controls 3,200 2,878 13,272 11,078
8.9% 8.6% 9.0% 8.6%
Industrial Controls 9,814 6,001 45,055 26,997
10.4% 7.5% 11.8% 8.6%
Components 8,334 5,457 36,869 21,046
13.5% 12.3% 15.5% 13.5%
Medical Devices 31 - (208) -
.5% - (1.6)% -
------------- ------------- ------------- -------------
Total operating profit 40,147 32,500 161,661 123,021
11.8% 11.6% 12.4% 11.7%
DEDUCTIONS FROM OPERATING PROFIT
Interest expense 5,639 4,287 21,861 13,671
Stock compensation expense 488 - 3,482 -
Corporate expenses and other 3,963 2,997 16,169 14,432
------------- ------------- ------------- -------------
Earnings before Income Taxes $ 30,057 $ 25,216 $ 120,149 $ 94,918
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MOOG INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
SEPTEMBER 30, September 24,
2006 2005
------------- -------------
Cash $ 57,821 $ 33,750
Receivables 333,492 296,986
Inventories 282,720 215,425
Other current assets 54,068 53,897
------------- -------------
Total current assets 728,101 600,058
Property, plant and equipment 310,011 262,841
Goodwill 450,971 378,205
Other non-current assets 118,571 62,223
------------- -------------
Total assets $ 1,607,654 $ 1,303,327
============= =============
Notes payable $ 17,119 $ 885
Current installments of long-term debt 1,982 17,035
Contract loss reserves 15,089 14,121
Other current liabilities 273,416 255,311
------------- -------------
Total current liabilities 307,606 287,352
Long-term debt 367,457 330,977
Other long-term liabilities 169,735 163,961
------------- -------------
Total liabilities 844,798 782,290
Shareholders' equity 762,856 521,037
------------- -------------
Total liabilities and shareholders' equity $ 1,607,654 $ 1,303,327
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