- --------------------------------------------------------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
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(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
--------------
For the transition period from ______________ to ______________
Commission File Number: 1-5129
MOOG INC.
(Exact name of registrant as specified in its charter)
NEW YORK STATE 16-0757636
- -------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
EAST AURORA, NEW YORK 14052-0018
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(Address of principal executive offices) (Zip code)
TELEPHONE NUMBER INCLUDING AREA CODE: (716) 652-2000
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Former name, former address and former fiscal year,
if changed since last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES |X| No | |
The number of shares outstanding of each class of common stock as of February 7,
2000 were:
Class A Common Stock, $1.00 par value 7,338,842 shares
Class B Common Stock, $1.00 par value 1,564,561 shares
1
<PAGE>
MOOG INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Condensed Balance Sheets
December 31, 1999 and September 25, 1999 3
Consolidated Condensed Statements of Earnings
Three Months Ended December 31, 1999 and 1998 4
Consolidated Condensed Statements of Cash Flows
Three Months Ended December 31, 1999 and 1998 5
Notes to Consolidated Condensed Financial
Statements 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-12
Item 3. Quantitative and Qualitative Disclosures about
Market Risk 12
PART II. OTHER INFORMATION 13
SIGNATURES 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MOOG INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
UNAUDITED Audited
As of As of
December 31, September 25,
1999 1999
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents ....................... $ 7,515 $ 9,780
Receivables ..................................... 218,040 212,279
Inventories (note 2) ............................ 155,457 152,246
Deferred income taxes ........................... 29,093 29,097
Prepaid expenses and other current assets ....... 6,766 3,413
-------- -------
TOTAL CURRENT ASSETS ......................... 416,871 406,815
PROPERTY, PLANT AND EQUIPMENT, NET ....................... 186,768 188,918
GOODWILL, NET ............................................ 185,204 184,368
OTHER ASSETS ............................................. 18,444 18,375
-------- -------
TOTAL ASSETS ............................................. $807,287 $798,476
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable ................................... $ 5,058 $ 5,831
Current installments of long-term debt .......... 20,283 20,787
Accounts payable ................................ 43,596 36,373
Accrued salaries, wages and commissions ......... 32,291 39,167
Contract loss reserves .......................... 22,319 24,741
Accrued interest ................................ 6,367 10,587
Federal, state and foreign income taxes ......... 8,495 9,181
Other accrued liabilities ....................... 29,440 27,347
Customer advances ............................... 10,066 7,834
-------- --------
TOTAL CURRENT LIABILITIES ................... 177,915 181,848
LONG-TERM DEBT, excluding current installments
Senior debt ..................................... 235,939 229,492
Senior subordinated notes ....................... 120,000 120,000
OTHER LONG-TERM LIABILITIES .............................. 56,775 55,366
-------- --------
TOTAL LIABILITIES ........................... 590,629 586,706
-------- --------
SHAREHOLDERS' EQUITY (note 4)
Preferred stock ................................. 100 100
Common stock .................................... 10,889 10,889
Other shareholders' equity ...................... 205,669 200,781
-------- --------
TOTAL SHAREHOLDERS' EQUITY ................ 216,658 211,770
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............... $807,287 $798,476
======== ========
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
3
<PAGE>
MOOG INC.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(UNAUDITED)
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
DECEMBER 31,
1999 1998
---- ----
Net sales ............................ $ 157,284 $ 148,444
Cost of sales ........................ 109,035 102,673
----------- -----------
Gross profit ......................... 48,249 45,771
Research and development ............. 6,089 9,243
Selling, general and administrative .. 24,656 22,757
Interest ............................. 7,932 5,444
Other income, net .................... (148) (199)
----------- -----------
Earnings before income taxes ......... 9,720 8,526
Income taxes ......................... 3,402 2,899
----------- -----------
Net earnings ......................... $ 6,318 $ 5,627
=========== ===========
Earnings per share (note 3)
Basic ........................... $ 0.71 $ 0.63
=========== ===========
Diluted ......................... $ 0.70 $ 0.62
=========== ===========
Average common shares outstanding (note 3)
Basic ........................... 8,905,175 8,926,162
=========== ===========
Diluted ......................... 8,993,260 9,059,509
=========== ===========
See accompanying Notes to Consolidated Condensed Financial Statements.
4
<PAGE>
MOOG INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
1999 1998
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ............................................ $ 6,318 $ 5,627
Adjustments to reconcile net earnings
to net cash (used) provided by operating activities:
Depreciation and amortization ...................... 7,619 6,614
Working capital and other .......................... (16,885) (472)
----------- ----------
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES (2,948) 11,769
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired ........ -- (171,773)
Purchase of property, plant and equipment ............... (3,918) (6,431)
Proceeds from sale of assets ............................ 335 2,619
Other ................................................... -- 71
----------- ----------
NET CASH USED BY INVESTING ACTIVITIES .............. (3,583) (175,514)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from notes payable ........................ (1,360) 1,090
Net proceeds from revolving lines of credit ............ 12,000 89,000
Proceeds from long-term debt ........................... 14 75,016
Payments on long-term debt ............................. (5,540) (1,060)
Other .................................................. (614) (451)
----------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,500 163,595
----------- ----------
Effect of exchange rate changes on cash .................... (234) (3)
----------- ----------
DECREASE IN CASH AND CASH EQUIVALENTS ...................... (2,265) (153)
Cash and cash equivalents at beginning of period ........... 9,780 11,625
----------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ................. $ 7,515 $ 11,472
=========== ==========
CASH PAID FOR:
Interest ............................................... $ 12,108 $ 7,233
Income taxes ........................................... 2,490 1,389
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Leases capitalized, net of leases terminated ........... $ -- $ --
Acquisitions of businesses:
Fair value of assets acquired ...................... $ -- $ 219,857
Cash paid .......................................... -- 172,788
----------- ----------
Liabilities assumed ........................... $ -- $ 47,069
=========== ==========
See accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
5
<PAGE>
MOOG INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1999
(UNAUDITED)
(DOLLARS IN THOUSANDS)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have been
prepared by management in accordance with generally accepted accounting
principles and in the opinion of management contain all adjustments, consisting
of normal recurring adjustments, necessary to present fairly the financial
position of Moog Inc. as of December 31, 1999 and the results of its operations
and cash flows for the three months ended December 31, 1999 and 1998. The
results of operations for the three months ended December 31, 1999 and 1998 are
not necessarily indicative of the results expected for the full year. The
accompanying unaudited consolidated condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's Form 10-K for the fiscal year ended September 25, 1999.
2. INVENTORIES
Inventories are stated at the lower of cost or market using the first-in,
first-out (FIFO) method of valuation. Inventories are comprised of the
following:
December 31, September 25,
1999 1999
---- ----
Raw materials and purchased parts $ 53,741 $ 40,684
Work in process 77,002 87,925
Finished goods 24,714 23,637
-------- --------
$155,457 $152,246
======== ========
3. EARNINGS PER SHARE
Basic and diluted weighted-average shares outstanding are as follows:
Three Months Ended
December 31,
1999 1998
---- ----
Weighted-average shares
outstanding-Basic 8,905,175 8,926,162
Stock options 80,893 125,201
Convertible preferred stock 7,192 8,146
--------- ---------
Shares outstanding-Diluted 8,993,260 9,059,509
========= =========
Preferred stock dividends are deducted from net earnings to calculate income
available to common stockholders for basic earnings per share.
6
<PAGE>
4. SHAREHOLDER'S EQUITY
The changes in shareholders' equity for the three months ended December 31, 1999
are summarized as follows:
<TABLE>
<CAPTION>
Number of Shares
----------------
Class A Class B
Preferred Common Common
Amount Shares Stock Stock
----- ------ ----- -----
<S> <C> <C> <C> <C>
PREFERRED STOCK
Beginning and end of period ......... $ 100 100,000
--------
COMMON STOCK
Beginning of period ................. 10,889 8,427,311 2,461,812
Conversion of Class B to Class A .... - 92 (92)
-------- --------- ---------
End of period ....................... 10,889 8,427,403 2,461,720
-------- --------- ---------
ADDITIONAL PAID-IN CAPITAL
Beginning of period ................. 102,778
Issuance of Treasury shares at
less than cost ...................... (55)
--------
End of period ....................... 102,723
RETAINED EARNINGS
Beginning of period ................. 132,104
Net earnings ........................ 6,318
Preferred stock dividends............ (2)
--------
End of period ....................... 138,420
--------
TREASURY STOCK
Beginning of period ................. (32,589) (16,229) (1,101,418) (878,176)
Treasury stock issued ............... 307 - 19,000 2,469
Treasury stock purchased ............ (866) - (9,383) (15,500)
-------- ------- --------- ---------
End of period ....................... (33,148) (16,229) (1,091,801) (891,207)
-------- ------- --------- ---------
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Beginning of period ................. (1,512)
Foreign currency translation ........ (814)
--------
End of period ....................... (2,326)
--------
TOTAL SHAREHOLDERS' -------- ------ --------- ---------
EQUITY .............................. $216,658 83,771 7,335,602 1,570,513
======== ====== ========= =========
COMPREHENSIVE INCOME
Net earnings ........................ $ 6,318
Adjustment from foreign currency
translation ....................... (814)
-------
Total comprehensive income .......... $ 5,504
=======
</TABLE>
7
<PAGE>
5. SEVERANCE LIABILITY
In connection with the November 1998 acquisition of Raytheon Aircraft Montek
Company (Montek), the Company finalized a formal plan for integrating the
operations of Montek and informed the affected employees. The Company
established a $3,800 liability for severance and other related costs associated
with involuntary termination of employees. The balance of the liability at
December 31, 1999 was $1,345. Activity during the current quarter included $266
of payments and a $1,260 reduction to the liability with a corresponding
adjustment to goodwill. The plan is expected to be completed by May 2001.
6. SEGMENT INFORMATION
Below are the sales and operating profit by segment for the three months ended
December 31, 1999 and 1998 and a reconciliation of segment operating profit to
earnings before income taxes.
Three Months Ended
December 31,
1999 1998
---- ----
Sales
Aircraft Controls ....................... $ 77,235 $ 73,101
Satellite and Launch Vehicle Controls ... 28,375 22,769
Industrial Controls ..................... 51,674 52,574
-------- --------
Total sales .......................... $157,284 $148,444
======== ========
Operating Profit and Margins
Aircraft Controls ....................... $10,627 $ 8,207
13.8% 11.2%
Satellite and Launch Vehicle Controls ... 4,006 2,174
14.1% 9.5%
Industrial Controls ..................... 5,046 5,969
9.8% 11.4%
------- -------
Total operating profit ............. 19,679 16,350
12.5% 11.0%
Deductions from Operating Profit:
Interest expense .................... 7,932 5,444
Corporate expenses .................. 2,059 2,254
Other income, net ................... (32) 126
------- -------
Earnings before Income Taxes .............$ 9,720 $ 8,526
======= =======
Total segment assets at December 31, 1999 were $776,907 compared to $769,643 at
September 25, 1999.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
[THE FOLLOWING SHOULD BE READ IN CONJUNCTION WITH MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CONTAINED IN THE
COMPANY'S FORM 10-K FOR THE FISCAL YEAR ENDED SEPTEMBER 25, 1999.]
RESULTS OF OPERATIONS
CONSOLIDATED
Sales for the current quarter were $157 million, up 6% from $149 million in the
same period of 1999. Montek, which was purchased on November 30, 1998, provided
$14 million of incremental sales in the current quarter, primarily Boeing
7-series hardware and, to a lesser extent, tactical missile controls. This
increase, along with increased revenues on the Titan IV launch vehicle program,
helped offset decreases on the B-2 bomber and F-15 fighter aircraft programs,
which are winding down, and lower production rates at Boeing.
Cost of sales as a percentage of sales of 69.3% in the current quarter was
comparable to the first quarter of 1999. A favorable aftermarket mix and lower
wage and benefit costs had a favorable affect on cost of sales. These
improvements were offset by lower sales volumes in electric controls and the
redeployment of resources in Aircraft Controls from research and development to
production, as the efforts expended on developing next generation aircraft
flight controls wind down.
Research and development expenses decreased to $6 million in the current quarter
as compared to $9 million in the same quarter a year ago primarily due to the
winding down of efforts related to the development of next generation aircraft
flight controls. A portion of the costs associated with those efforts has been
redirected to either production or sales-support.
Selling, general and administrative expenses were $25 million, or 15.7% of net
sales, in the current quarter as compared to $23 million, or 15.3% of net sales,
in the same period a year ago. The increase in dollar terms is due primarily to
the acquisitions that took place during the first quarter of last year.
Interest expense increased $3 million in the current quarter to $8 million from
$5 million a year ago due to indebtedness incurred to finance the 1999 first
quarter acquisitions.
The Company's effective tax rate for the current quarter was 35% compared to 34%
a year ago. The current quarter tax rate reflects higher projected earnings.
Basic earnings per share (EPS) was $.71 in the current quarter compared to $.63
a year ago. Diluted EPS was $.70 in the first quarter of fiscal 1999 compared to
$.62 last year.
Backlog at December 31, 1999 was $333 million compared to $342 million at
December 31, 1998. The decrease relates to controls for launch vehicles and
entertainment simulators as major programs near completion and lower incoming
orders for controls for satellites as this market continues to experience
production slowdowns.
9
<PAGE>
SEGMENT OPERATING REVIEW
(dollars in millions)
THREE MONTHS ENDED
DECEMBER 31,
1999 1998
---- ----
SALES
Aircraft Controls ............................. $ 77 $ 73
Satellite and Launch Vehicle Controls ......... 28 23
Industrial Controls ........................... 52 53
--------- ---------
Total sales .......................... $ 157 $ 149
========= =========
OPERATING PROFIT AND MARGINS
Aircraft Controls ............................. $ 11 $ 8
13.8% 11.2%
Satellite and Launch Vehicle Controls ......... 4 2
14.1% 9.5%
Industrial Controls ........................... 5 6
9.8% 11.4%
-------- ---------
Total operating profit ............... $ 20 $ 16
======== ==========
12.5% 11.0%
AIRCRAFT CONTROLS
Sales in Aircraft Controls increased in the current quarter to $77 million as
compared to $73 million in the same quarter a year ago. Montek contributed $11
million in incremental sales in the current quarter reflecting a full quarter's
worth of sales compared to the first quarter of 1999 when Montek contributed one
month. Montek's incremental sales related primarily to flight controls for the
Boeing 7-series airplanes, both OEM and aftermarket. This increase, along with
$2 million additional sales of controls for the V-22 Osprey, was offset by
declines of $4 million related to the B-2 bomber and $3 million related to the
F-15 fighter, as these programs wind down, and lower sales of hardware for
Boeing 7-series airplanes, excluding the incremental Montek business, due to
lower Boeing production rates.
Operating margins for Aircraft Controls were 13.8% in the first quarter of 2000
compared to 11.2% in the same period last year. The increase is due primarily to
a $3 million reduction in research and development expenditures related to the
development of next generation flight controls. A portion of the costs
associated with those efforts has been redirected to either production or
sales-support. To a lesser extent, margins improved due to a favorable mix of
military aftermarket sales.
SATELLITE AND LAUNCH VEHICLE CONTROLS
Sales in Satellite and Launch Vehicle Controls were $28 million in the first
quarter of 2000, up $5 million from the same period a year ago. Sales increased
$5 million for launch vehicle controls, primarily on the Titan IV program, and
$2 million for tactical missile controls as a result of the Montek acquisition.
Offsetting these increases was a decline in sales of controls for satellites as
the order activity from the primes has slowed dramatically.
10
<PAGE>
Operating margins for Satellite and Launch Vehicle Controls were 14.1% in the
current quarter compared to 9.5% in the same period a year ago. The increase is
due to the increase in sales mentioned above and the resultant mix of sales
favoring higher margin launch vehicle programs.
INDUSTRIAL CONTROLS
Sales in Industrial Controls decreased $1 million to $52 million in the first
quarter of 2000 compared to last year. The $3 million of additional sales from
the Hydrolux Sarl, Moog-Hydrolux Hydraulic Systems, Inc. and Microset Srl
acquisitions in 1999 was largely offset by exchange rate movements. Strong sales
in the plastics and turbine markets were offset by softness in the electric
motion simulator market as contract awards have been slow despite strong
proposal activities.
Operating margins for Industrial Controls were 9.8% in the current quarter
compared to 11.4% in the same period of the previous year. The decrease is due
to approximately $.9 million of cost overruns on two major development contracts
for electric motion simulators
FINANCIAL CONDITION AND LIQUIDITY
Cash on hand at December 31, 1999 was $8 million compared to $10 million at
September 25, 1999. Cash used by operations in the first quarter of 2000 was $3
million compared to cash provided of $12 million in 1999. Long-term debt
increased $6 million during the first quarter to $356 million at December 31,
1999 while the percentage of long-term debt to capitalization remained at 62%.
The reduction in cash from operations and the resultant increase in debt was due
to higher receivable levels resulting primarily from two long-term launch
vehicle programs, one of which has milestone payment terms, and the continued
funding of efforts on development contracts for the Hawker and Premier business
jet programs. The Company expects a reduction in total debt in 2000 of
approximately $10 million.
At December 31, 1999, the Company had $96 million of unused borrowing capacity
under short and long-term lines of credit, including $80 million from the
Company's U.S. revolving credit facility.
Capital expenditures for the first quarter of 2000 were $4 million compared with
depreciation and amortization of $8 million. Capital expenditures in the first
quarter of 1999 were $6 million compared to depreciation and amortization of $7
million. Capital expenditures in 2000 are not expected to exceed $24 million.
The Company believes its cash on hand, cash flows from operations and available
borrowings under short and long-term lines of credit, will continue to be
sufficient to meet its operating needs.
OTHER
YEAR 2000
The Company did not experience any significant problems because of Year 2000
issues.
MARKET RISK SENSITIVE INSTRUMENTS
During the first quarter of 2000, the Company entered into a $20 million
interest swap agreement in order to provide for additional interest rate
protection on the Company's variable rate debt. At December 31, 1999, the
Company has interest rate swap agreements of $100 million outstanding,
effectively converting this amount into fixed rate debt at 7.27% for the balance
of the year.
11
<PAGE>
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities," which must be
adopted by fiscal 2001. Under this standard, companies are required to carry all
derivatives in the balance sheet at fair value. The accounting for changes in
the fair value (i.e., gains or losses) of a derivative instrument depends on
whether it has been designated and qualifies as part of a hedging relationship
and, if so, on the reason for holding it. The Company is in the process of
evaluating the impact this standard will have on its financial statements.
OUTLOOK
Aircraft Controls' 2000 sales are expected to increase slightly over 1999 due
primarily to increased production rates on the F/A-18E/F, while a full year of
Montek and newly awarded incremental commercial aircraft business from Boeing
will offset the decline in the commercial aircraft production rates at Boeing.
Although the Company recently signed long-term contracts with several customers
to supply various controls for satellites and launch vehicles, sales in
Satellite and Launch Vehicle Controls are expected to decrease modestly in 2000
compared to last year. Production of satellites continues to be low and
customers continue to work-off apparent high levels of inventory of the
Company's products. In addition, first quarter sales levels of launch vehicle
controls are not expected to continue as the year progresses. Current year sales
in Industrial Controls should show a slight increase over 1999 on the continuing
strength of turbine controls and a recovery in sales of servovalves to the
plastics industry. Partially offsetting these increases in Industrial Controls
is an expected decline in the sales of electric motion simulators, as compared
to 1999, as major programs are approaching completion. As a result of the above,
consolidated sales are expected to increase by approximately 3% in 2000 compared
to 1999.
The Company does not expect the first quarter operating margin of 12.5% to
continue for the remainder of 2000. Aircraft Controls experienced unusually high
margins due to the significant drop in research and development costs associated
with next generation flight controls and a favorable mix of higher margin
aftermarket sales. However, Aircraft Controls' margins should increase as
compared to 1999. Margins in Satellite and Launch Vehicle Controls benefited in
the first quarter from strong revenues for controls for launch vehicles,
primarily on the Titan IV program. Satellite and Launch Vehicle Controls'
margins will trend downward over the course of the year due to projected lower
sales volume on various launch vehicle programs and projected lower satellite
controls activity. Margins in Industrial Controls will be up in 2000 primarily
due to improved performance at the industrial businesses acquired in 1999. As a
result of the foregoing, overall operating margins are expected to increase over
1999's level by less than a half of a percentage point.
CAUTIONARY STATEMENT
Information included in Management's Discussion and Analysis of Financial
Condition and Results of Operations which are not historical facts 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.
The forward looking statements involve a number of risks and uncertainties,
including but not limited to, contracting with various governments, changes in
economic conditions, demand for the Company's products, pricing pressures,
intense competition in the industries in which the Company operates, the need
for the Company to keep pace with technological developments and timely response
to changes in customer needs, and other factors identified in the Company's
Securities and Exchange Commission filings including the Company's most recent
Annual Report on Form 10-K for the fiscal year ended September 25, 1999.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information required herein is incorporated by reference to the information
appearing under the caption "Market Risk Sensitive Instruments" in Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
12
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
-----------------
None
ITEM 2. CHANGES IN SECURITIES.
---------------------
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
-------------------------------
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
---------------------------------------------------
None.
ITEM 5. OTHER INFORMATION.
-----------------
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
--------------------------------
A. EXHIBITS.
---------
Exhibit 27 - Financial data schedule.
B. REPORTS ON FORM 8-K.
--------------------
None.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Moog Inc.
--------------------------
(Registrant)
DATE: FEBRUARY 9, 2000 BY S/ROBERT R. BANTA/S
---------------- --------------------------
Robert R. Banta
Executive Vice President
Chief Financial Officer
(Principal Financial Officer)
DATE: FEBRUARY 9, 2000 BY S/DONALD R. FISHBACK/S
---------------- ---------------------------
Donald R. Fishback
Controller
(Principal Accounting Officer)
14
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000067887
<NAME> Moog Inc.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 7,515
<SECURITIES> 0
<RECEIVABLES> 218,040
<ALLOWANCES> 0
<INVENTORY> 155,457
<CURRENT-ASSETS> 416,871
<PP&E> 186,768
<DEPRECIATION> 0
<TOTAL-ASSETS> 807,287
<CURRENT-LIABILITIES> 177,915
<BONDS> 355,939
0
100
<COMMON> 10,889
<OTHER-SE> 205,669
<TOTAL-LIABILITY-AND-EQUITY> 807,287
<SALES> 157,284
<TOTAL-REVENUES> 157,284
<CGS> 109,035
<TOTAL-COSTS> 109,035
<OTHER-EXPENSES> 5,941
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,932
<INCOME-PRETAX> 9,720
<INCOME-TAX> 3,402
<INCOME-CONTINUING> 6,318
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,318
<EPS-BASIC> 0.71
<EPS-DILUTED> 0.70
</TABLE>
