Exhibit 99.1
                            
Moog Inc. ▪ East Aurora, New York ▪ 14052 ▪ 716-652-2000

Press Information
Release Date:IMMEDIATEContact:Ann Marie Luhr
 November 5, 2021 716-687-4225
 
MOOG INC. REPORTS FISCAL YEAR END 2021 RESULTS
AND INITIAL GUIDANCE FOR FISCAL YEAR 2022

East Aurora, NY -- Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for the quarter and fiscal year ended October 2, 2021.

Fourth Quarter Highlights

•Sales of $724 million, up 2% from a year ago;
•GAAP diluted earnings per share of $1.07, up 32%, including $0.18 of one-time adjustments;
•Operating margins of 8.7%;
•Effective tax rate of 19.0%; and
•$63 million cash flow from operating activities.

Full-Year 2021 Highlights

•Sales of $2.9 billion, down 1% from a year ago;
•GAAP diluted earnings per share of $4.87, including $0.18 of one-time adjustments, up 1% from adjusted results a year ago;
•Operating margins of 9.5%;
•Effective tax rate of 22.8%; and
•$293 million cash flow from operating activities.

Fiscal 2022 Guidance

•Sales of $3.0 billion, a 6% increase;
•Forecast diluted earnings per share of $5.50, plus or minus $0.20;
•Forecast full year operating margins of 10.3%;
•Forecast tax rate of 25.5%; and
•Forecast $338 million cash flow from operating activities.

Segment Results

Aircraft Controls segment sales in the quarter were $298 million, 8% higher year over year. Total commercial aircraft revenues were $99 million, up 23%. Sales from the Genesys acquisition and strong sales to Airbus for the A350 compensated for lower 787 sales to Boeing. Commercial aftermarket sales increased 25% on strong 787 activity.

Military aircraft revenues in the quarter were up 2% to $199 million. OEM revenues were 12% higher, to $144 million. Increased funded development and acquired sales from the Genesys acquisition offset lower F-35 Joint Strike Fighter sales. Military aftermarket sales of $55 million were off 16% when compared to a very strong quarter last year.

Full-year Aircraft Controls segment sales were $1.16 billion, down 4%. Total military aircraft sales increased 8%, to $782 million. Military OEM sales, led by F-35 program sales and foreign military sales, were $574 million, an increase of 22%. Military aftermarket sales were off 17%, with the decrease tied to lower F-35 spares and V-22 repair volume. Sales to commercial customers were down 22%, with aftermarket down 7% year over year, all related to COVID challenges.


Exhibit 99.1
Space and Defense segment sales in the quarter were $200 million, down 3% year over year. Space sales of $81 million were 3% lower on weakness in sales for launch vehicles, hypersonics, and satellite engines. Defense sales were down 4%, at $119 million, mainly tied to weaker sales of security products and missile controls.

Space and Defense sales for the year increased 4%, to $799 million. Space sales were $333 million, up 13%, driven by increases across space vehicles and avionics. Defense sales of $466 million were off 2% on lower sales of security products and missile controls.

Industrial Systems segment sales in the quarter were $226 million, in line with last year’s fourth quarter, excluding foreign exchange adjustments. Industrial automation sales were up 11% on strength across the portfolio tied to increases in global capital spending. Energy sales increased 10% year over year as off-shore production activity picked-up in the quarter. Sales into simulation and test applications were mostly flat. Medical product sales decreased 17% on slowing demand for OEM components used for sleep therapy and imaging.

Full-year Industrial Systems segment sales were $892 million, down 2%. Industrial automation sales of $427 million were 5% higher. Energy sales were down 6%, at $120 million. Simulation and test sales were 13% lower as the flight simulator market has not rebounded from the effects of the pandemic. Sales of medical pumps and associated products, at $255 million, were 7% lower after the surge experienced last year.

Consolidated 12-month backlog was $2.1 billion, up 24% from a year ago.

“As we entered fiscal ’21, we projected that COVID would be with us throughout the year and anticipated top and bottom results similar to the second half of fiscal ’20,” said John Scannell, Chairman and CEO. “Looking back on the year, our business performed much better than this. As we now enter fiscal ’22, we’re optimistic about the future, while remaining realistic about the challenges. We anticipate sales of just over $3 billion and earnings per share of $5.50, plus or minus $0.20, representing an increase of 6% on the top line and 13% on the bottom line.”

In conjunction with today’s release, Moog will host a conference call on Friday November 5, 2021 beginning at 10:00 a.m. ET, which will be broadcast live over the Internet. John Scannell, Chairman and CEO, and Jennifer Walter, 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 approximately 90 minutes prior to the conference call.

About Moog
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, 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 press release 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 forward-looking 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. In evaluating these forward-looking statements, you should carefully consider the factors set forth below.

Although it is not possible to create a comprehensive list of all factors that may cause actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties that arise from time to time are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the SEC and include the following:

COVID-19 PANDEMIC RISKS
•We face various risks related to health pandemics such as the global COVID-19 pandemic, which have had material adverse consequences on our operations, financial position, cash flows, and those of our customers and suppliers.



Exhibit 99.1
STRATEGIC RISKS
•We operate in highly competitive markets with competitors who may have greater resources than we possess;
•Our new products and technology research and development efforts are substantial and may not be successful which could reduce our sales and earnings;
•If we are unable to adequately enforce and protect our intellectual property or defend against assertions of infringement, our business and our ability to compete could be harmed; and
•Our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or as we conduct divestitures.

MARKET CONDITION RISKS
•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 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;
•The loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results; and
•We may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects.

OPERATIONAL RISKS
•Our business operations may be adversely affected by information systems interruptions, intrusions, or new software implementations;
•We may not be able to prevent, or timely detect, issues with our products and our manufacturing processes which may adversely affect our operations and our earnings;
•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; and
•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.

FINANCIAL RISKS
•We make estimates in accounting for over-time 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;
•Our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility;
•The phase out of LIBOR may negatively impact our debt agreements and financial position, results of operations and liquidity;
•Significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements;
•A write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth; and
•Unforeseen exposure to additional income tax liabilities may affect our operating results.

LEGAL AND COMPLIANCE RISKS
•Contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting standards, and any false claims or non-compliance could subject us to fines, penalties or possible debarment;
•Our operations in foreign countries expose us to currency, political and trade risks and adverse changes in local legal and regulatory environments could impact our results of operations;
•Government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business;
•We are involved in various legal proceedings, the outcome of which may be unfavorable to us; and
•Our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs.

GENERAL RISKS
•Future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business; and
•Our performance could suffer if we cannot maintain our culture as well as attract, retain and engage our employees.

While we believe we have identified and discussed above the material risks affecting our business, there may be additional factors, risks and uncertainties not currently known to us or that we currently consider immaterial 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. Any forward-looking statement speaks only as of the date on which it is made, and we disclaim any obligation to update any forward-looking statement made in this report, except as required by law.




Exhibit 99.1
Moog Inc.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
(dollars in thousands, except per share data)
 
 Three Months EndedFiscal Year Ended
October 2,
2021		October 3,
2020		October 2,
2021		October 3,
2020
Net sales$724,285 $706,895 $2,851,993 $2,884,554 
Cost of sales528,716 530,581 2,076,270 2,118,150 
Inventory write-down— 3,913 — 22,708 
Gross profit195,569 172,401 775,723 743,696 
Research and development33,972 28,562 125,528 110,865 
Selling, general and administrative106,697 95,430 412,028 397,947 
Interest8,604 8,974 33,892 38,897 
Long-lived asset impairment 1,500 5,968 1,500 37,839 
Restructuring— 5,394 — 10,700 
Pension settlement— 121,324 — 121,324 
Other2,116 6,413 (999)20,707 
Earnings (loss) before income taxes42,680 (99,664)203,774 5,417 
Income taxes (benefit)8,112 (21,687)46,554 (3,788)
Net earnings (loss)$34,568 $(77,977)$157,220 $9,205 
Net earnings (loss) per share  
Basic$1.08 $(2.40)$4.90 $0.28 
Diluted$1.07 $(2.40)$4.87 $0.28 
Average common shares outstanding  
Basic32,104,127 32,539,248 32,112,589 33,257,684 
Diluted32,274,296 32,539,248 32,297,956 33,437,801 
 





















Exhibit 99.1
Results shown in the previous table include charges associated with the COVID-19 pandemic, as well as a charge associated with the purchase of a single premium non-participating group annuity contract from Metropolitan Tower Life Insurance Company and the related transfer of future benefit obligations and annuity administration for certain retirees and beneficiaries under the Moog Inc. Employees' Retirement Plan. COVID-19 impacts include inventory write-down, long-lived asset impairment and restructuring charges. The table below adjusts the income taxes (benefit), net earnings (loss) and diluted net earnings (loss) per share to exclude these impacts.

Reconciliation to non-GAAP adjusted income taxes (benefit), net earnings (loss) and diluted net earnings (loss) per share are as follows:
Three Months EndedFiscal Year Ended
October 2,
2021		October 3,
2020		October 2,
2021		October 3,
2020
As Reported:
Earnings (loss) before income taxes$42,680 $(99,664)$203,774 $5,417 
Income taxes (benefit)8,112 (21,687)46,554 (3,788)
Effective income tax rate19.0 %21.8 %22.8 %(69.9)%
Net earnings (loss)34,568 (77,977)157,220 9,205 
Diluted net earnings (loss) per share$1.07 $(2.40)$4.87 $0.28 
COVID-19 Pandemic Charges:
Earnings before income taxes$— $15,275 $— $71,247 
Income taxes— 3,494 — 16,506 
Net earnings— 11,781 — 54,741 
Diluted net earnings per share$— $0.36 $— $1.68 
Pension Settlement:
Earnings before income taxes$— $121,324 $— $121,324 
Income taxes— 28,632 — 28,632 
Net earnings— 92,692 — 92,692 
Diluted net earnings per share$— $2.85 $— $2.85 
As Adjusted:
Earnings before income taxes$42,680 $36,935 $203,774 $197,988 
Income taxes8,112 10,439 46,554 41,350 
Effective income tax rate19.0 %28.3 %22.8 %20.9 %
Net earnings34,568 26,496 157,220 156,638 
Diluted net earnings per share$1.07 $0.81 $4.87 $4.81 
The diluted net earnings per share associated with the charges have been calculated using the quarterly average outstanding shares in the period in which the charges were incurred.












Exhibit 99.1
Moog Inc.
CONSOLIDATED SALES AND OPERATING PROFIT (UNAUDITED)
(dollars in thousands)
 
Three Months EndedFiscal Year Ended
October 2,
2021		October 3,
2020		October 2,
2021		October 3,
2020
Net sales:
Aircraft Controls$297,972 $275,001 $1,161,238 $1,205,750 
Space and Defense Controls200,018 206,958 799,235 770,114 
Industrial Systems226,295 224,936 891,520 908,690 
Net sales$724,285 $706,895 $2,851,993 $2,884,554 
Operating profit:
Aircraft Controls$26,193 $3,430 $96,678 $34,670 
8.8 %1.2 %8.3 %2.9 %
Space and Defense Controls17,296 29,443 88,333 101,667 
8.6 %14.2 %11.1 %13.2 %
Industrial Systems19,233 10,548 85,948 80,025 
8.5 %4.7 %9.6 %8.8 %
Total operating profit62,722 43,421 270,959 216,362 
8.7 %6.1 %9.5 %7.5 %
Deductions from operating profit:
Interest expense8,604 8,974 33,892 38,897 
Equity-based compensation expense1,041 1,000 7,461 5,661 
Pension settlement— 121,324 — 121,324 
Non-service pension expense (income)859 3,791 (2,194)15,231 
Corporate and other expenses, net9,538 7,996 28,026 29,832 
Earnings (loss) before income taxes$42,680 $(99,664)$203,774 $5,417 


























Exhibit 99.1
Operating Profit and Margins - as adjusted are as follows:
Three Months EndedFiscal Year Ended
October 2,
2021		October 3,
2020		October 2,
2021		October 3,
2020
Aircraft Controls operating profit - as reported$26,193 $3,430 $96,678 $34,670 
Inventory write-down— 3,913 — 22,448 
Long-lived asset impairment— (268)— 31,262 
Restructuring— 444 — 3,340 
Aircraft Controls operating profit - as adjusted$26,193 $7,519 $96,678 $91,720 
8.8 %2.7 %8.3 %7.6 %
Space and Defense Controls operating profit - as reported$17,296 $29,443 $88,333 $101,667 
Long-lived asset impairment— — — 341 
Restructuring— — — 185 
Space and Defense Controls operating profit - as adjusted$17,296 $29,443 $88,333 $102,193 
8.6 %14.2 %11.1 %13.3 %
Industrial Systems operating profit - as reported$19,233 $10,548 $85,948 $80,025 
Inventory write-down— — — 260 
Long-lived asset impairment— 6,236 — 6,236 
Restructuring— 4,950 — 7,175 
Industrial Systems operating profit - as adjusted$19,233 $21,734 $85,948 $93,696 
8.5 %9.7 %9.6 %10.3 %
Total operating profit - as adjusted$62,722 $58,696 $270,959 $287,609 
8.7 %8.3 %9.5 %10.0 %

Exhibit 99.1
Moog Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
 
October 2,
2021		October 3,
2020
ASSETS
Current assets
Cash and cash equivalents$99,599 $84,583 
Restricted cash1,315 489 
Receivables, net945,929 855,535 
Inventories, net613,095 623,043 
Prepaid expenses and other current assets58,842 49,837 
Total current assets1,718,780 1,613,487 
Property, plant and equipment, net645,778 600,498 
Operating lease right-of-use assets60,355 68,393 
Goodwill851,605 821,856 
Intangible assets, net106,095 85,046 
Deferred income taxes17,769 18,924 
Other assets32,787 17,627 
Total assets$3,433,169 $3,225,831 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Current installments of long-term debt$80,365 $350 
Accounts payable200,602 176,868 
Accrued compensation112,703 109,510 
Contract advances263,686 203,338 
Accrued liabilities and other212,005 220,488 
Total current liabilities869,361 710,554 
Long-term debt, excluding current installments823,355 929,982 
Long-term pension and retirement obligations162,728 183,366 
Deferred income taxes64,642 40,474 
Other long-term liabilities112,939 118,372 
Total liabilities2,033,025 1,982,748 
Shareholders’ equity
Common stock - Class A43,803 43,799 
Common stock - Class B7,477 7,481 
Additional paid-in capital509,622 472,645 
Retained earnings2,237,848 2,112,734 
Treasury shares(1,007,506)(990,783)
Stock Employee Compensation Trust(79,776)(64,242)
Supplemental Retirement Plan Trust(63,764)(53,098)
Accumulated other comprehensive loss(247,560)(285,453)
Total shareholders’ equity1,400,144 1,243,083 
Total liabilities and shareholders’ equity$3,433,169 $3,225,831 


Exhibit 99.1
Moog Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)

Fiscal Year Ended
October 2,
2021		October 3,
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings$157,220 $9,205 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation76,671 74,243 
Amortization13,488 12,729 
Deferred income taxes8,162 (40,845)
Equity-based compensation expense7,461 5,661 
Impairment of long-lived assets and inventory write-down1,500 60,547 
Pension settlement— 121,324 
Other745 9,636 
Changes in assets and liabilities providing (using) cash:
Receivables(73,459)111,525 
Inventories19,576 (99,015)
Accounts payable20,520 (84,065)
Contract advances59,298 65,680 
Accrued expenses2,290 (3,516)
Accrued income taxes4,653 (17,964)
Net pension and post retirement liabilities 12,503 33,305 
Other assets and liabilities(17,402)20,727 
Net cash provided by operating activities293,226 279,177 
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired(77,600)(54,265)
Purchase of property, plant and equipment(128,734)(88,284)
Other investing transactions15,177 (3,644)
Net cash used by investing activities(191,157)(146,193)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving lines of credit799,950 1,151,550 
Payments on revolving lines of credit(838,936)(1,187,159)
Proceeds from long-term debt78,700 15,128 
Payments on long-term debt(68,080)(74,470)
Proceeds from senior notes, net of issuance costs— 491,769 
Payments on senior notes — (300,000)
Payments on finance lease obligations(2,156)(1,167)
Payment of dividends (32,106)(25,210)
Proceeds from sale of treasury stock10,866 7,014 
Purchase of outstanding shares for treasury(31,673)(232,290)
Proceeds from sale of stock held by SECT679 24,721 
Purchase of stock held by SECT(4,239)(6,774)
Other financing transactions— (5,878)
Net cash used by financing activities(86,995)(142,766)
Effect of exchange rate changes on cash768 2,306 
Increase (decrease) in cash, cash equivalents and restricted cash15,842 (7,476)
Cash, cash equivalents and restricted cash at beginning of period85,072 92,548 
Cash, cash equivalents and restricted cash at end of period$100,914 $85,072