Fourth Quarter Conference Call – Fiscal 2003

11 / 07 / 2003

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We think the quarterly results will build momentum as the year progresses. We’ll look for quarter-over-quarter growth of 10% - 12% in quarters one and two, and 14% - 26% in quarters three and four.

I’ll now turn you over to Bob Banta.

Bob Banta, CFO:
Our balance sheet as of our year-end, which was Saturday, September 27, 2003 almost resembles a fine painting. Cash of $77 million and debt of $257 million - that’s only $179 million of net debt, and it’s nice to look at. However, the picture is just after receiving the net proceeds of $72 million from our September equity offering and before we paid $158 million for Poly-Sci. That acquisition closed two days into FY04. On a pro-forma basis, our net debt to cap ratio is only 44% after Poly-Sci.

Without the equity proceeds, cash from operations did improve in our latest quarter. In Q4, we reduced net debt before the equity proceeds by $21 million. That’s after putting $6.5 million more into our pension plan in September.

For all of ’03, the cash results were certainly worth some recognition. Net debt (not including the equity proceeds) was reduced by $49 million. We were successful in increasing customer advances by $15 million. Cash taxes paid also declined. The cash results are after putting $29.5 million into our U.S. pension plan for all of ‘03. Contributions made today provide a large and immediate cash tax refund. They also lower our future cash outlays and FAS 87 pension expenses. We think we have one more year (’04) of high contributions (about $23 million), and then the requirements will drop noticeably.

Depreciation and amortization in the quarter was $7.7 million and $29.5 million for all of ’03. Capital Expenditures amounted to $6.9 million in the quarter and $28.1 million for the year.

Our EBITDA was $105 million.

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