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HEI · Heico

29 filings

10-K

HEI 10-K Annual Reports

Heico - 29 annual reports

Filing record · 2016–202610-K1010-Q338-K83

2025
Heico Annual Report, Year Ended Oct 31, 2025
HEICO Corporation reported record fiscal 2025 results for the year ended October 31, 2025. Net sales rose 16% to a record $4,485.0 million from $3,857.7 million, with the Flight Support Group (FSG) growing 18% to $3,117.3 million and the Electronic Technologies Group (ETG) growing 12% to $1,413.1 million. Operating income increased 24% to a record $1,019.0 million, and net income attributable to HEICO rose 34% to a record $690.4 million, or $4.90 per diluted share. Gross margin improved to 39.8% from 38.9%, and the FSG's operating margin rose to 24.1%. Cash generation was strong, with net cash provided by operating activities of $934.3 million, up from $672.4 million. Acquisitions of $629.8 million were funded largely through revolving credit facility borrowings. Total debt fell to $2,167.9 million from $2,229.4 million, and total debt to total capitalization declined to 33% from 38%. Shareholders' equity increased to $4,379.2 million. Management anticipates net sales growth in both segments in fiscal 2026, driven by organic growth and recent acquisitions. Investors should note that goodwill and intangible assets represented 60% of total assets as of October 31, 2025, and that redeemable noncontrolling interests (put rights) total an estimated $467.4 million. Subsequent to year end, HEICO agreed to acquire Axillon Aerospace's Fuel Containment Business and EthosEnergy Accessories & Components, with closings expected in the first quarter of fiscal 2026.
Dec 22, 2025
2024
Heico Annual Report, Year Ended Oct 31, 2024
HEICO Corporation (NYSE: HEI.A, HEI) reported record fiscal 2024 results for the year ended October 31, 2024. Net sales rose 30% to a record $3,857.7 million from $2,968.1 million in fiscal 2023, driven by the Flight Support Group (FSG), where net sales increased $869.2 million (49%) to $2,639.4 million, including $643.5 million contributed by fiscal 2023 and 2024 acquisitions and organic growth of 13%. The Electronic Technologies Group (ETG) net sales rose 3% to $1,263.6 million, with a 2% organic decline. Operating income increased 32% to a record $824.5 million, and net income attributable to HEICO increased 27% to a record $514.1 million, or $3.67 per diluted share. Interest expense more than doubled to $149.3 million from $73.0 million, principally due to higher debt related to fiscal 2023 acquisitions, including Wencor. Cash flow from operations was $672.4 million, up from $448.7 million, principally reflecting higher net income and advance deposits received on certain long-term customer contracts. Capital expenditures were $58.3 million and acquisitions used $219.3 million of investing cash. Total debt declined to $2,229.4 million from $2,478.1 million as of October 31, 2023, reducing total debt to total capitalization to 38% from 44%. Management expects net sales growth in both segments in fiscal 2025, driven primarily by organic growth, and anticipates fiscal 2025 capital expenditures of approximately $65 to $70 million. As of December 18, 2024, approximately $995 million of unused committed availability remained under the revolving credit facility. Backlog, described as remaining performance obligations on firm contracts, stood at $1,924.5 million as of October 31, 2024, of which $1,178.1 million is expected to be recognized in fiscal 2025. Goodwill and intangible assets represented 62% of total assets as of October 31, 2024, compared with 64% a year earlier. The company recognized a $7.5 million trade name impairment in fiscal 2024 at two ETG subsidiaries. The independent auditor, Deloitte & Touche LLP, issued unqualified opinions on both the financial statements and internal control over financial reporting.
Dec 19, 2024
2023
Heico Annual Report, Year Ended Oct 31, 2023
HEICO Corporation reported record fiscal 2023 results for the year ended October 31, 2023, with net sales of $2,968.1 million, up 34% from $2,208.3 million in fiscal 2022, and net income attributable to HEICO of $403.6 million, or $2.91 per diluted share, compared with $351.7 million, or $2.55 per diluted share. Operating income rose 26% to a record $625.3 million. The Flight Support Group (FSG) generated $1,770.2 million in net sales, up 41%, with organic growth of 21% driven by continued recovery in commercial air travel, while the Electronic Technologies Group (ETG) generated $1,225.2 million, up 26%, with organic growth of 1%. Growth was also driven by acquisitions, most notably Wencor Group (acquired August 4, 2023, for $1.9 billion in cash plus 1,137,628 Class A shares) and Exxelia International SAS (acquired January 5, 2023). The acquisitions significantly changed the balance sheet and financing profile. Total debt rose to $2,478.1 million at October 31, 2023, from $290.3 million a year earlier, and total debt to total capitalization increased to 44% from 10%. Goodwill grew to $3,274.3 million and intangible assets to $1,357.3 million. Interest expense increased to $73.0 million from $6.4 million, reflecting $1,200 million of senior unsecured notes issued in July 2023 and higher revolver borrowings. Operating cash flow was $448.7 million, and cash and cash equivalents were $171.0 million. The company stated that unused committed availability under its revolving credit facility was approximately $739 million as of December 18, 2023. The filing also discloses several items for investors to monitor: a grand jury subpoena received in April 2021 by an indirect subsidiary, which the company is cooperating with and for which it cannot estimate a range of loss; put rights held by noncontrolling interest holders with an aggregate Redemption Amount of approximately $364.8 million; and a backlog of $1,863 million at October 31, 2023, up from $1,383 million. Management expects net sales growth in both segments in fiscal 2024 and plans to continue integrating Wencor.
Dec 20, 2023
2022
Heico Annual Report, Year Ended Oct 31, 2022
HEICO Corporation (HEI) reported record fiscal 2022 results for the year ended October 31, 2022. Net sales rose 18% to a record $2,208.3 million from $1,865.7 million in fiscal 2021, and operating income increased 26% to a record $496.8 million. Net income attributable to HEICO increased 16% to a record $351.7 million, or $2.55 per diluted share. The Flight Support Group drove the growth, with net sales of $1,255.2 million (up 35%) and operating income of $267.2 million, while the Electronic Technologies Group's net sales rose 1% to $972.5 million and its operating income fell 3% to $269.5 million. The company noted that the Pandemic continued to affect results and supply chains, and it anticipates net sales growth in both segments for fiscal 2023 alongside inflationary pressures. Cash flow and balance sheet metrics were solid. Net cash provided by operating activities was $467.9 million, and capital expenditures were $32.0 million. Acquisitions totaled $347.3 million in investing outflows during the year, and total debt rose to $290.3 million, leaving total debt at 10% of total capitalization. As of December 20, 2022, approximately $1,202 million of unused committed availability remained under the revolving credit facility. Total backlog increased 42% to $1,383 million as of October 31, 2022. Management also disclosed a pending agreement to acquire approximately 95% of Exxelia International for €453 million, with closing expected in the first quarter of fiscal 2023. The filing also details risk factors and governance matters. Goodwill and intangible assets represented 59% of total assets as of October 31, 2022. The company disclosed a grand jury subpoena received in April 2021 by an indirect subsidiary, and management stated it cannot predict the outcome. Redeemable noncontrolling interests totaled $327.6 million, and the company declared an 11% increase in its semi-annual cash dividend to $.10 per share in December 2022.
Dec 21, 2022
2021
Heico Annual Report, Year Ended Oct 31, 2021
HEICO Corporation, through its subsidiaries, reported fiscal 2021 (year ended October 31, 2021) net sales of $1,865.7 million, up from $1,787.0 million in fiscal 2020, and net income attributable to HEICO of $304.2 million, or $2.21 per diluted share, compared with $314.0 million, or $2.29 per diluted share, in fiscal 2020. Operating income rose to $392.9 million from $376.6 million, with the Electronic Technologies Group reaching a record $959.2 million in net sales and $277.3 million in operating income. The Flight Support Group's net sales were essentially flat at $927.1 million, but its operating income increased to $151.9 million, and the company describes a recovery in commercial air travel that is stronger in domestic than international markets while the Pandemic continues to weigh on commercial aerospace. The balance sheet strengthened considerably, with total debt falling to $236.5 million from $739.8 million, cash and cash equivalents of $108.3 million, and total debt to total capitalization of 9% versus 27% a year earlier. Net cash provided by operating activities was $444.1 million, and the company made $136.5 million of acquisitions, net of cash acquired, during the year. Management declined to provide fiscal 2022 net sales and earnings guidance, citing the difficulty of predicting the Pandemic's path, while noting that cost inflation and supply chain disruptions may raise material and labor costs. Investors should note the company's reliance on acquisitions, with goodwill and intangible assets representing 58% of total assets, and redeemable noncontrolling interests with an estimated Redemption Amount of approximately $252.6 million. The company also disclosed a grand jury subpoena received in April 2021 by an indirect subsidiary, related to work on certain Navy vessels; HEICO states it cannot predict the outcome or reasonably estimate a possible range of loss.
Dec 21, 2021
2020
Heico Annual Report, Year Ended Oct 31, 2020
HEICO Corporation (HEI) reported fiscal 2020 (year ended October 31, 2020) results significantly affected by the COVID-19 pandemic. Net sales decreased 13% to $1,787.0 million from $2,055.6 million, driven by a 25% decline in the Flight Support Group (FSG) to $924.8 million, partially offset by a 5% increase in the Electronic Technologies Group (ETG) to a record $875.0 million. Operating income fell 18% to $376.6 million, and net income attributable to HEICO declined to $314.0 million, or $2.29 per diluted share, from $327.9 million, or $2.39 per diluted share. The effective tax rate fell to 7.9% from 17.8%, largely due to a $31.8 million larger tax benefit from stock option exercises. The filing describes a commercial aerospace business under pressure, with commercial aerospace sales decreasing approximately 32% during fiscal 2020 and FSG backlog falling to $285 million from $325 million. Management cannot provide fiscal 2021 net sales or earnings guidance, but states it is cautiously optimistic that vaccine progress may lead to a gradual recovery in commercial aerospace demand beginning in fiscal 2021. The ETG's defense, space and other industrial markets, which represented about 59% of net sales, were not materially impacted by the Pandemic. Balance sheet and liquidity: cash and cash equivalents rose to $406.9 million from $57.0 million, while total debt increased to $739.8 million from $562.0 million, and total debt to total capitalization was 27% versus 25%. Operating cash flow was $409.1 million, and as of December 22, 2020, approximately $755 million of unused committed availability remained under the revolving credit facility. Goodwill and intangible assets represented 55% of total assets at October 31, 2020, versus 61% a year earlier.
Dec 23, 2020
2019
Heico Annual Report, Year Ended Oct 31, 2019
HEICO Corporation, through its subsidiaries, reported record fiscal 2019 results for the year ended October 31, 2019. Net sales rose 16% to a record $2,055.6 million from $1,777.7 million in fiscal 2018, driven by the Electronic Technologies Group (ETG), whose net sales increased 19% to $834.5 million, and the Flight Support Group (FSG), whose net sales increased 13% to $1,240.2 million. Operating income increased 21% to a record $457.1 million, and net income attributable to HEICO increased to a record $327.9 million, or $2.39 per diluted share, from $259.2 million, or $1.90 per diluted share. Operating cash flow was $437.4 million, up from $328.5 million in fiscal 2018. Growth was supported by acquisitions, with $240.8 million of cash paid for acquisitions, net of cash acquired, in fiscal 2019. Total debt including current portion was $562.0 million at October 31, 2019, with a total debt to total capitalization ratio of 25%, and the company had approximately $741 million of unused committed availability under its revolving credit facility as of December 17, 2019. Total backlog rose to $900 million from $783 million. Management targets growth in fiscal 2020 full-year net sales and net income over fiscal 2019 levels, excluding additional acquisitions. Risk factors highlighted by the filing include dependence on the aviation industry cycle, defense and space budget reductions, foreign sales exposure (approximately 36% of consolidated net sales), competition, and goodwill and intangible assets representing 61% of total assets. The company declared a semi-annual cash dividend of $.08 per share in December 2019, a 14% increase over the prior $.07 per share.
Dec 19, 2019
2018
Heico Annual Report, Year Ended Oct 31, 2018
HEICO Corporation (HEI) reported record fiscal 2018 results for the year ended October 31, 2018. Net sales rose 17% to a record $1,777.7 million from $1,524.8 million in fiscal 2017, with growth in both the Electronic Technologies Group (ETG, up to $701.8 million) and the Flight Support Group (FSG, up to $1,097.9 million). Operating income increased 23% to a record $376.2 million, and net income attributable to HEICO increased 39% to a record $259.2 million, or $1.90 per diluted share. Results benefited from the Tax Cuts and Jobs Act, which lowered the effective tax rate to 19.8% from 30.3% and produced a net $12.1 million increase in net income attributable to HEICO. The company's backlog grew to $783 million at October 31, 2018, from $654 million a year earlier. Net cash provided by operating activities was $328.5 million, and the company completed acquisitions for $59.8 million in cash during the year. Total debt fell to $532.5 million from $674.0 million, and net debt to shareholders' equity fell to 31% from 50%. In November 2018 the company entered a new $1.3 billion revolving credit facility maturing in 2022, and it acquired Specialty Silicone Products and Apex Microtechnology after year end, with total consideration described as not material. Management's outlook targets growth in fiscal 2019 full-year net sales and net income over fiscal 2018 levels, excluding additional acquisitions. The company also declared a semi-annual dividend of $.07 per share, a 17% increase over the prior $.06 payment. Key risks disclosed include dependence on the aviation industry, government regulation, defense spending reductions, foreign sales exposure (about 37% of fiscal 2018 net sales), and goodwill and intangible assets representing about 61% of total assets.
Dec 20, 2018
2017
Heico Annual Report, Year Ended Oct 31, 2017
HEICO Corporation (HEI) reported record fiscal 2017 results for the year ended October 31, 2017. Net sales rose to $1,524.8 million from $1,376.3 million in fiscal 2016, and operating income increased to $306.7 million from $265.3 million. Net income attributable to HEICO was a record $186.0 million, or $2.14 per diluted share, compared with $156.2 million, or $1.83 per diluted share, in fiscal 2016. Net sales growth was driven by organic growth in both segments and contributions from fiscal 2017 acquisitions, including AeroAntenna Technology, Inc., Carbon by Design and Air Cost Control. The Flight Support Group accounted for 63% of net sales and the Electronic Technologies Group for 37%. Cash flow from operations was $274.9 million, and cash paid for acquisitions totaled $418.3 million in fiscal 2017. Total debt rose to $674.0 million from $458.2 million as of October 31, 2016, almost entirely under the revolving credit facility, and the company entered a new $1.3 billion revolving credit facility in November 2017 that matures in November 2022. Total backlog increased to $654 million from $497 million. Management targets growth in fiscal 2018 full-year net sales and net income over fiscal 2017 levels, excluding additional acquisitions. The Board declared a 5-for-4 stock split and a semi-annual cash dividend of $.0875 per share, a 9% increase over the prior $.08 payment, both expected to be paid in January 2018. Goodwill and intangible assets represented approximately 64% of total assets as of October 31, 2017, which the filing identifies as a key risk alongside dependence on the aviation industry and exposure to defense and space spending.
Dec 21, 2017
2016
Heico Annual Report, Year Ended Oct 31, 2016
HEICO Corporation, through its subsidiaries, reports fiscal 2016 (year ended October 31, 2016) as a record year. Net sales rose 16% to $1,376.3 million from $1,188.6 million, and operating income rose 16% to a record $265.3 million. Net income attributable to HEICO increased to a record $156.2 million, or $2.29 per diluted share, from $133.4 million, or $1.97 per diluted share, in fiscal 2015. The Electronic Technologies Group (ETG) drove much of the growth, with net sales up 31% to $511.3 million and operating income up 28% to $126.0 million, aided by acquisitions including Robertson Fuel Systems. The Flight Support Group (FSG) grew net sales 8% to $875.9 million and operating income 9% to $163.4 million. Acquisitions remain central to the strategy. Cash paid for acquisitions totaled $263.8 million in fiscal 2016, funded mainly by the revolving credit facility. Total debt rose to $458.2 million from $367.6 million, and net debt to shareholders' equity was 40%, up from 37%. Net cash provided by operating activities was $249.2 million, up from $172.9 million. Total backlog reached $497 million at October 31, 2016, compared with $349 million a year earlier. Management targets growth in fiscal 2017 net sales and net income over fiscal 2016 levels, excluding additional acquisitions. Key risks include dependence on the aviation industry cycle, defense and space budget reductions, foreign sales (about 34% of net sales), and goodwill and intangible assets that represent approximately 60% of total assets. The Mendelson family and related parties beneficially own approximately 22% of Common Stock and 6% of Class A Common Stock, giving them substantial influence over control of the company.
Dec 15, 2016
2015
Heico Annual Report, Year Ended Oct 31, 2015
HEICO Corporation's fiscal 2015 annual report (year ended October 31, 2015) shows record results. Net sales rose to $1,188.6 million from $1,132.3 million, and net income attributable to HEICO increased to a record $133.4 million, or $1.97 per diluted share, from $121.3 million, or $1.80 per diluted share. Operating income reached a record $229.7 million, up from $203.4 million. The Flight Support Group produced $809.7 million in net sales and $149.8 million in operating income, while the Electronic Technologies Group produced $391.0 million in net sales and $98.8 million in operating income. The filing states that the company is targeting growth in fiscal 2016 full-year net sales and net income over fiscal 2015 levels. Growth was supported by acquisitions. The company paid $166.8 million in cash for fiscal 2015 acquisitions, funded principally from its revolving credit facility, and total debt rose to $367.6 million from $329.1 million. As of October 31, 2015, the company was in compliance with all covenants, and about $440 million of unused committed availability remained under its revolving credit facility as of December 15, 2015. Total backlog was $349 million, up from $291 million a year earlier. The filing also highlights concentration and risk factors. Approximately 56% of Electronic Technologies Group sales came from defense, space and homeland security markets, and about 34% of consolidated net sales came from foreign customers. Insiders beneficially owned approximately 22% of Common Stock and about 6% of Class A Common Stock as of December 15, 2015. The Board declared a semi-annual cash dividend of $.08 per share payable in January 2016.
Dec 17, 2015
2014
Heico Annual Report, Year Ended Oct 31, 2014
HEICO Corporation's fiscal 2014 Form 10-K (year ended October 31, 2014) reports record net sales of $1,132.3 million, up from $1,008.8 million in fiscal 2013, and record net income attributable to HEICO of $121.3 million, or $1.80 per diluted share, versus $102.4 million, or $1.53 per diluted share, a year earlier. Operating income rose to a record $203.4 million, though the operating margin eased to 18.0% from 18.2%. The Flight Support Group (67% of net sales) produced record sales of $762.8 million and operating income of $136.5 million, while the Electronic Technologies Group (33% of net sales) posted sales of $379.4 million and operating income of $88.9 million. The ETG's results were weighed down by a $15.0 million impairment of intangible assets, offset in part by a $28.1 million reduction in accrued contingent consideration. Cash flow from operations was $190.7 million, up from $131.8 million, supported by a $47.0 million decrease in working capital. Total debt fell to $329.1 million from $377.5 million, and cash and cash equivalents ended the year at $20.2 million. Management noted approximately $480 million of unused availability under its revolving credit facility as of December 16, 2014, and said it expects that availability plus operating cash flow to fund requirements for at least the next twelve months. For fiscal 2015, management anticipates continued growth in the FSG's aftermarket and repair businesses, improved demand in the ETG, and targets growth in full-year net sales and net income over fiscal 2014 levels. Total backlog was $291 million at October 31, 2014, versus $305 million a year earlier, with the ETG backlog declining to $156 million from $190 million due to reduced contract scope for one long-term defense customer. The company completed the acquisition of the 20% noncontrolling interest held by Lufthansa Technik AG in four HEICO Aerospace subsidiaries in February 2014, paying a dividend of $67.4 million.
Dec 18, 2014
2013
Heico Annual Report, Year Ended Oct 31, 2013
HEICO Corporation reported record fiscal 2013 results for the year ended October 31, 2013. Net sales rose 12% to a record $1,008.8 million from $897.3 million, and net income attributable to HEICO increased to a record $102.4 million, or $1.53 per diluted share, from $85.1 million, or $1.28 per diluted share. Operating income grew 12% to a record $183.6 million. The Flight Support Group, which accounted for 66% of fiscal 2013 net sales, reported net sales of $665.1 million and operating income of $122.1 million, while the Electronic Technologies Group reported net sales of $350.0 million and operating income of $83.1 million. Growth was supported by acquisitions. The company acquired Reinhold Industries for approximately $133.0 million net of cash acquired and Lucix Corporation in October 2013, and aggregate cash paid for acquisitions was $222.6 million in fiscal 2013. As a result, total debt rose to $377.5 million at October 31, 2013 from $131.8 million a year earlier, and total debt to total capitalization increased to 34% from 15%. Net cash provided by operating activities was $131.8 million. The company's revolving credit facility was amended in November 2013 to $800 million, with an accordion feature to $1.0 billion, and about $431 million was unused as of December 17, 2013. The Board declared a regular semi-annual cash dividend of $.06 per share and a special and extraordinary cash dividend of $.35 per share, totaling $.41 per share payable January 17, 2014. The company's backlog was $305 million at October 31, 2013, up from $252 million. Management targets growth in fiscal 2014 full-year net sales and net income over fiscal 2013 levels.
Dec 19, 2013
2012
Heico Annual Report, Year Ended Oct 31, 2012
HEICO Corporation (HEI) reported record fiscal 2012 results for the year ended October 31, 2012. Net sales rose 17% to a record $897.3 million from $764.9 million, operating income increased 18% to a record $163.3 million, and net income attributable to HEICO reached a record $85.1 million, or $1.60 per diluted share, versus $72.8 million, or $1.37 per diluted share, in fiscal 2011. Growth came from both segments: the Electronic Technologies Group (ETG) grew net sales 46% to $331.6 million, driven largely by the Switchcraft, 3D Plus, Ramona Research and Moritz Aerospace acquisitions, while the Flight Support Group (FSG) grew 6% to $570.3 million. Gross margin improved to 36.5% from 35.9%, and net cash provided by operating activities was $138.6 million. Total debt rose to $131.8 million from $40.2 million, mainly to fund acquisitions totaling $197.3 million in cash during fiscal 2012. The company's balance sheet remains conservative: total debt to total capitalization was 15%, and roughly $541 million was unused under the $670 million revolving credit facility, which was extended to December 2017 on December 11, 2012. Management's outlook targets growth in fiscal 2013 net sales and net income over fiscal 2012 levels, while noting that possible U.S. defense and space spending reductions could modestly reduce ETG organic growth. Backlog stood at $252 million at October 31, 2012, up from $224 million. A key near-term item for shareholders is a special and extraordinary cash dividend, increased from $1.14 to $2.14 per share on both classes of common stock, aggregating approximately $117 million, funded by revolver borrowings and paid in December 2012 ahead of expected 2013 tax increases. The company also accelerated its regular semi-annual $.06 dividend into December 2012. Risk factors highlighted by the filing include dependence on the aviation industry cycle, FAA regulation, customer concentration within defense spending, foreign sales exposure (33% of consolidated net sales), and the execution risk of its acquisition strategy.
Dec 20, 2012
2011
Heico Annual Report, Year Ended Oct 31, 2011
HEICO Corporation, through its subsidiaries, reports that it believes it is the world's largest manufacturer of FAA-approved jet engine and aircraft component replacement parts other than OEMs and their subcontractors, and a leading manufacturer of electronic equipment for the aviation, defense, space, industrial, medical and telecommunication markets. Fiscal 2011 (year ended October 31, 2011) net sales rose 24% to a record $764.9 million from $617.0 million, and net income attributable to HEICO rose to a record $72.8 million, or $1.71 per diluted share, from $54.9 million, or $1.30 per diluted share. Operating income increased 27% to a record $138.4 million. The Flight Support Group produced $539.6 million in sales and $95.0 million in operating income, while the Electronic Technologies Group produced $227.8 million in sales and $59.5 million in operating income. The company completed several acquisitions in fiscal 2011, including Blue Aerospace and 3D Plus SA, for aggregate cash cost of $94.7 million, and subsequently acquired Switchcraft, Inc. in November 2011 for approximately $143 million. Balance sheet capacity expanded in December 2011 when HEICO entered a $670 million unsecured revolving credit agreement maturing in December 2016, replacing its $300 million facility. At October 31, 2011, cash was $17.5 million, total debt was $40.2 million (6% of total capitalization), and approximately $262 million was available under the prior revolver. Operating cash flow was $125.5 million. Backlog grew to $224 million from $142 million, driven largely by a five-year contract worth approximately $50 million at an Electronic Technologies Group subsidiary. Management is targeting growth in fiscal 2012 net sales and net income over fiscal 2011 levels.
Dec 22, 2011
2010
Heico Annual Report, Year Ended Oct 31, 2010
HEICO Corporation (HEI) reported record fiscal 2010 results for the year ended October 31, 2010. Net sales rose 14.6% to a record $617.0 million from $538.3 million in fiscal 2009, driven by the Electronic Technologies Group (ETG), whose sales increased 43.4% to $205.6 million on acquisitions and organic growth of approximately 12%. The Flight Support Group (FSG) grew 4.3% to $412.3 million, entirely organically. Operating income rose 23.7% to a record $109.2 million, with the operating margin improving to 17.7% from 16.4%, helped by a higher FSG gross margin from a more favorable product mix. Net income attributable to HEICO was a record $54.9 million, or $1.62 per diluted share, versus $44.6 million, or $1.32 per diluted share, a year earlier. Net cash provided by operating activities was $101.7 million. The balance sheet strengthened over the year. Total debt fell to $14.2 million from $55.4 million, and total debt to total capitalization dropped to 2% from 10%. The company had approximately $284 million of unused availability under its $300 million revolving credit facility, which matures in May 2013. Backlog grew to $142.5 million from $104.5 million. Management is targeting growth in fiscal 2011 net sales and net income over fiscal 2010 levels, citing an expected increase in commercial airline capacity. Key risks include dependence on the aviation industry, defense and homeland security budgets, and foreign sales, which made up 31% of consolidated net sales. Redeemable noncontrolling interests totaled $55.0 million, with put rights that could require cash purchases beginning in fiscal 2011. Management's estimate of the aggregate redemption amount is approximately $55 million, and contingent acquisition consideration could total roughly $91 million at maximum, with an estimated $9 million expected to be paid.
Dec 22, 2010
2009
Heico Annual Report, Year Ended Oct 31, 2009
HEICO Corporation (HEI) reported fiscal 2009 (year ended October 31, 2009) net sales of $538.3 million, down from $582.3 million in fiscal 2008, and net income of $44.6 million, or $1.65 per diluted share, versus $48.5 million, or $1.78 per diluted share, a year earlier. The decline reflects lower demand in the Flight Support Group (FSG) from airline capacity cuts and cost-conserving by airlines, partially offset by growth in the Electronic Technologies Group (ETG), which benefited from acquisitions and defense-related demand. Operating income fell to $88.3 million from $105.8 million, with gross margin narrowing to 33.6% from 36.1%. A favorable IRS settlement added approximately $1.2 million to net income. The company remains financially conservative, with cash of $7.2 million, total debt of $55.4 million (11% of total capitalization), and about $243 million of unused revolving credit availability as of October 31, 2009. Net cash from operating activities was $75.8 million. Management said it expects to be able to fund cash requirements for the foreseeable future and is targeting growth in net sales, earnings and operating cash flow in fiscal 2010. The company spent $71.1 million on acquisitions in fiscal 2009, including VPT, Inc. and the Seacom division of Dukane Corp., and declared a regular semi-annual dividend of $.06 per share, with the annual dividend rate of $.12 representing a 20% increase over the prior year.
Dec 23, 2009
2008
Heico Annual Report, Year Ended Oct 31, 2008
HEICO Corporation, through its subsidiaries, describes itself as the world's largest manufacturer of FAA-approved jet engine and aircraft component replacement parts, other than OEMs and their subcontractors, and a leading manufacturer of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. The company operates two segments: the Flight Support Group (75% of fiscal 2008 net sales) and the Electronic Technologies Group (25%). For fiscal 2008 (year ended October 31, 2008), net sales rose 14.7% to $582.3 million, operating income rose 23.0% to $105.8 million, and net income was $48.5 million, or $1.78 per diluted share, compared with $39.0 million, or $1.45 per diluted share, in fiscal 2007. Management stated it is targeting growth in net sales, earnings and operating cash flow in fiscal 2009, while noting expected capacity reductions in the commercial airline industry. Balance sheet and cash flow remained conservative. Cash and equivalents rose to $12.6 million, total debt fell to $37.6 million from $56.0 million, and total debt to total capitalization was 8%, versus 13% a year earlier. Net cash from operations was $73.2 million, and the company had $261.6 million of unused availability under its $300 million revolving credit facility, which matures in May 2013. Minority interests in consolidated subsidiaries grew to $84.0 million, reflecting Lufthansa Technik's 20% stake in HEICO Aerospace and other partially owned subsidiaries, and the company disclosed significant future put-right purchase obligations, with an estimated aggregate redemption amount of approximately $49 million. Key risks cited include dependence on the aviation industry's cycles, FAA regulation, competition from OEMs, reliance on defense spending for about 41% of Electronic Technologies Group sales, and an aggressive acquisition strategy. Contingent acquisition consideration could total approximately $82 million, with an estimated expected payment of about $5 million based on historical earnings levels.
Dec 24, 2008
2007
Heico Annual Report, Year Ended Oct 31, 2007
HEICO Corporation (NYSE: HEI and HEI.A) reported fiscal 2007 (year ended October 31, 2007) net sales of $507.9 million, up 29.5% from $392.2 million in fiscal 2006, and net income of $39.0 million, or $1.45 per diluted share, compared with $31.9 million, or $1.20 per diluted share, a year earlier. Operating income rose 28.6% to $86.0 million. The Flight Support Group, which designs and makes FAA-approved jet engine and aircraft replacement parts, supplied 76% of net sales, and its operating income increased 43.9% to $67.4 million. The Electronic Technologies Group contributed 24% of net sales, with operating income roughly flat at $33.9 million, as gross margins fell on a less favorable product mix. Consolidated gross margin declined to 34.9% from 36.3%. Growth was driven by both organic expansion (approximately 21% organic growth at the Flight Support Group and about 5% at the Electronic Technologies Group) and acquisitions, including Arger, Prime Air, FerriShield and EMD. Cash flow from operations was $57.5 million, and capital expenditures were $12.9 million. Total debt was $55.95 million at year end, almost all borrowed under a $130 million revolving credit facility at a weighted average rate of 5.8%. Backlog reached $106.3 million, up from $80.0 million. Management is targeting growth in fiscal 2008 net sales and earnings over fiscal 2007 results. The company declared a semi-annual cash dividend of $.05 per share, a 25% increase over the prior $.04 payment. Insiders, including executive officers and entities they control, beneficially owned approximately 35% of Common Stock and 9% of Class A Common Stock, giving them substantial influence over corporate control. Concentration risk is moderate: no single customer accounted for 10% or more of sales, and the five largest customers represented about 21%. Defense-related sales were about 41% of Electronic Technologies Group sales.
Dec 28, 2007
2006
Heico Annual Report, Year Ended Oct 31, 2006
HEICO Corporation's fiscal 2006 Form 10-K (year ended October 31, 2006) reports net sales of $392.2 million, up 45.4% from $269.6 million in fiscal 2005, with operating income of $66.9 million and net income of $31.9 million, or $1.20 per diluted share, versus $22.8 million, or $.87 per diluted share, a year earlier. The company operates two segments: the Flight Support Group, which makes FAA-approved jet engine and aircraft replacement parts and provides repair and overhaul services and accounted for $277.3 million of net sales, and the Electronic Technologies Group, which makes electronic, electro-optical and interconnection products and accounted for $115.0 million. Management attributes the sales growth to acquisitions (Seal LLC, Arger, Prime Air, Connectronics, Lumina, HVT and EDT) and to organic growth of approximately 14% in the Flight Support Group and approximately 8% in the Electronic Technologies Group. Gross margin eased slightly to 36.3% from 37.5%, while SG&A rose to $75.6 million, and interest expense increased to $3.5 million from $1.1 million on higher revolver borrowings. Total debt rose to $55.1 million and cash was $5.0 million at year-end, with net cash from operations of $46.9 million funding $58.1 million of acquisitions and $10.0 million of capital expenditures. Backlog grew to $80.0 million from $61.3 million. The company states it is targeting growth in fiscal 2007 net sales and earnings over fiscal 2006 results, and it reports that management and related parties beneficially owned approximately 35% of common stock.
Jan 12, 2007
2005
Heico Annual Report, Year Ended Oct 31, 2005
HEICO Corporation (HEI) reported fiscal 2005 (year ended October 31, 2005) net sales of $269.6 million, up from $215.7 million in fiscal 2004, with operating income of $44.6 million versus $32.6 million and net income of $22.8 million, or $.87 per diluted share, compared with $20.6 million, or $.80 per diluted share, in fiscal 2004. The Flight Support Group (69% of net sales) and the Electronic Technologies Group (31%) both grew, with the Flight Support Group's operating margin rising from 15.8% to 18.9% on aftermarket parts and repair demand, while the Electronic Technologies Group's operating margin declined from 24.4% to 22.2% amid softness in the commercial satellite market. Growth was also supported by fiscal 2005 acquisitions of Connectronics, Lumina Power and HVT Group, funded largely by borrowings under the revolving credit facility. The balance sheet expanded as total assets rose to $435.6 million from $364.3 million, goodwill increased to $248.2 million, and total debt (including current portion) increased to $34.1 million from $18.1 million. Net cash provided by operating activities was $35.8 million, and cash used in investing activities was $45.9 million, including $41.5 million for acquisitions. In August 2005 the company entered into a $130 million Amended and Restated Revolving Credit Agreement expiring in August 2010. Management targets fiscal 2006 net sales and earnings growth over fiscal 2005 with some operating margin improvement, and it reported that its internal control over financial reporting was effective as of October 31, 2005. Investors should note the company's reliance on FAA Parts Manufacturer Approvals (over 4,000 cumulative approvals, about 2,800 actively marketed), the exclusive relationships with several airlines, Lufthansa's 20% minority interest in HEICO Aerospace, and a goodwill carrying value of $17.3 million for one reporting unit whose foreign military sales have declined and where a future impairment could arise if expected capabilities are delayed.
Jan 17, 2006
2004
Heico Annual Report, Year Ended Oct 31, 2004
HEICO Corporation (HEI) reported fiscal 2004 (year ended October 31, 2004) net sales of $215.7 million, up from $176.5 million in fiscal 2003, and net income of $20.6 million, or $.80 per diluted share, compared with $12.2 million, or $.50 per diluted share, a year earlier. Operating income rose to $32.6 million from $23.2 million. The Electronic Technologies Group's operating income increased to $15.3 million from $8.5 million, reflecting the December 2003 acquisition of an 80% interest in Sierra Microwave Technology, while the Flight Support Group's operating income rose to $24.3 million from $19.2 million on higher aftermarket and repair sales. Results also include a $5.0 million key-person life insurance receipt, which increased net income by $4.0 million, partly offset by $850,000 of restructuring expenses and $410,000 of litigation-related costs. Balance sheet strength improved over the year. Total debt fell to $18.1 million from $32.0 million, as the company repaid $14.0 million net on its $120 million revolving credit facility, and shareholders' equity rose to $247.4 million from $221.5 million. Backlog grew to $45.2 million from $34.6 million. Management stated it is targeting fiscal 2005 net sales and earnings growth over fiscal 2004 results, including the effect of the December 2004 Connectronics acquisition, which the filing describes as not significant to consolidated financial statements. The filing also notes that the balance sheet and cash flow statements for fiscal 2003 and 2002 were restated to reclassify capitalized tooling costs into property, plant and equipment, with no effect on reported income. The company paid semi-annual cash dividends and cited its 52nd consecutive semi-annual dividend in July 2004.
Jan 14, 2005
2003
Heico Annual Report, Year Ended Oct 31, 2003
HEICO Corporation (NYSE: HEI, HEI.A) reported fiscal 2003 results for the year ended October 31, 2003, with net sales of $176.5 million, up from $172.1 million in fiscal 2002, and net income of $12.2 million, or $.50 per diluted share, compared with $15.2 million, or $.62 per diluted share, in fiscal 2002. The Flight Support Group (FSG) accounted for 73% of revenues and the Electronic Technologies Group (ETG) for 27%. Sales growth came from the FSG, which rose to $128.3 million, while the ETG declined to $48.6 million on lower foreign military demand. Operating income rose slightly to $23.2 million, but the fiscal 2002 net income benefited from a $2.1 million tax recovery and a $1.2 million gain on sale of a product line, and the effective tax rate increased to 35.6% from 23.0%. Cash flow from operations was $27.9 million, and total debt fell to $32.0 million from $56.0 million, reflecting $24.0 million of net revolver repayments. Total shareholders' equity was $221.5 million at October 31, 2003. Total backlog was $34.6 million, compared with $36.3 million a year earlier. The company also announced a 10% stock dividend, payable in Class A shares on January 16, 2004, and a December 2003 acquisition of 80% of Sierra Microwave Technology, Inc. Management stated that it is targeting growth in fiscal 2004 sales and earnings over fiscal 2003 results, citing an expected economic strengthening, new product introductions, and the Sierra acquisition. Investors should note that FSG sales remain exposed to commercial aerospace conditions, particularly JT8D parts, and that goodwill of $188.7 million is a large share of total assets of $333.2 million.
Jan 12, 2004
2002
Heico Annual Report, Year Ended Oct 31, 2002
HEICO Corporation's fiscal 2002 Form 10-K (year ended October 31, 2002) reports net sales of $172.1 million, up slightly from $171.3 million in fiscal 2001, while operating income fell to $22.4 million from $31.0 million and net income declined to $15.2 million, or $.68 per diluted share, from $15.8 million, or $.71 per diluted share. The Flight Support Group (FSG), which makes FAA-approved jet engine replacement parts and provides repair and overhaul services, accounted for $120.1 million of sales, down from $132.5 million, with operating income falling to $15.8 million from $27.5 million, reflecting weakness in commercial aviation after the September 11, 2001 attacks. The Electronic Technologies Group (ETG) grew sales to $52.5 million from $38.8 million, largely through acquisitions, and raised operating income to $11.9 million from $7.8 million. Net income was helped by a $2.1 million recovery of taxes paid in prior years, which lowered the effective tax rate to 23.0% from 38.1%. Balance sheet and cash flow data show total assets of $336.3 million, total debt of $56.0 million, shareholders' equity of $207.1 million, and cash flow from operations of $23.3 million. Management stated that it expects sales and earnings to improve in fiscal 2003 relative to fiscal 2002 levels, while acknowledging that near-term uncertainty in commercial aviation makes short-term forecasting difficult. The company's $120 million revolving Credit Facility expires in July 2003, and management plans to renew or replace it.
Jan 22, 2003
2000-A
Heico Annual Report (Amendment), Year Ended Oct 31, 2000
HEICO Corporation (HEI) filed this Amendment No. 1 to its Form 10-K for the fiscal year ended October 31, 2000, solely to expand certain disclosures requested by the Securities and Exchange Commission; the filing states that previously reported financial results have not changed. HEICO describes itself as believed to be the world's largest manufacturer of FAA-approved jet engine replacement parts, other than the OEMs and their subcontractors, and operates two segments: the Flight Support Group (59% of fiscal 2000 revenues) and the Electronic Technologies Group (41%). Net sales rose 44% to $202.9 million in fiscal 2000 from $141.3 million, with net income of $26.3 million, or $1.32 per diluted share, including a pretax gain of $17.3 million on the September 2000 sale of Trilectron Industries. Excluding the Trilectron gain and a $1.3 million receivable write-off, income from continuing operations was $17.8 million, or $.90 per diluted share. Gross margin declined to 37.4% from 40.7%, mainly due to lower FSG margins, reflecting lower Lufthansa research and development reimbursements, softer aviation aftermarket demand and acquired-business margins. Interest expense rose to $5.6 million as acquisitions were financed with the credit facility, and total debt fell to $40.0 million at year end from $73.5 million after the Trilectron proceeds were applied to repay borrowings. Cash flow from operations was $12.1 million, and the company stated that operating cash flow and available borrowings should fund requirements for the foreseeable future. The filing also details ongoing items for investors: Lufthansa Technik holds a 20% interest in the FSG, the Travelers insurance litigation is being challenged on appeal with the company stating no significant adverse effect is expected, and the JT8D engine parts exposure is noted, with factory-new JT8D parts at about 19% of fiscal 2000 net sales, down from 31% in fiscal 1999.
Aug 13, 2001
1999
Heico Annual Report, Year Ended Oct 31, 1999
HEICO Corporation (HEI) reported fiscal 1999 (year ended October 31, 1999) net sales of $141.3 million, up 48% from $95.4 million in fiscal 1998, with net income of $16.3 million, or $.93 per diluted share, up 55% from $10.5 million, or $.68 per diluted share. Operating income rose 73% to $32.8 million, and operating margin improved to 23.2% of sales from 19.9%. The Flight Support Group (FSG), which makes FAA-approved jet engine replacement parts and provides repair and overhaul services, accounted for 67% of revenues, and the Electronics & Ground Support Group (EGSG) accounted for 33%. Growth was driven largely by acquisitions, including McClain, Rogers-Dierks, Thermal Structures, and several others, with total acquisition cash flows of $104.9 million in fiscal 1999 alone. The balance sheet expanded substantially. Total assets grew to $273.2 million from $133.1 million, and total debt, including current maturities, rose to $73.5 million from $30.5 million, mostly borrowings of $66.0 million under a $120 million revolving credit facility. Shareholders' equity increased to $139.3 million from $67.6 million, helped by a Class A common stock offering that netted $56.3 million. Lufthansa Technik holds a 20% minority interest in the FSG, and minority interest in consolidated subsidiary stood at $30.0 million at year-end. Investors should note the risk factors the filing describes. Approximately 40% of fiscal 1999 net sales came from replacement parts and overhaul services for the JT8D engine, down from 48% in fiscal 1998, and the filing notes that FAA noise regulations and EU restrictions affect that engine's usability. Five largest customers accounted for approximately 20% of net sales. The company is in litigation with United Technologies Corporation and Travelers Casualty & Surety Co., with no provision recorded, and a proposed IRS adjustment could result in additional taxes of approximately $1.8 million.
Jan 27, 2000
1997-A
Heico Annual Report (Amendment), Year Ended Oct 31, 1997
HEICO Corporation (AMEX: HEI) filed this Form 10-K/A (Amendment No. 1) for the fiscal year ended October 31, 1997 to restate Item 3, Legal Proceedings, and Note 13 to the financial statements. The filing reports fiscal 1997 net sales of $63,674,000, up from $34,565,000 in fiscal 1996, and net income of $7,019,000, or $.73 per diluted share, compared with $9,892,000 in fiscal 1996, which included a $5,264,000 gain on the sale of the MediTek health care operations. Income from operations rose to $9,114,000 from $4,512,000. The company attributes the growth to the Flight Support Group and to a full year of Trilectron's Ground Support Group sales, which were included for twelve months in fiscal 1997 versus two months in fiscal 1996. The company's principal business is FAA-approved jet engine replacement parts (Flight Support Group, about 65% of revenues) and ground support equipment (Ground Support Group, about 35%). During fiscal 1997 it acquired Northwings Accessories Corporation for approximately $7.0 million in cash and 232,360 shares, and in October 1997 it sold a 20% interest in HEICO Aerospace to Lufthansa Technik AG for $10 million, with a further approximately $16 million to be paid over three years under a research and development cooperation agreement. Total assets were $88,639,000 and shareholders' equity was $59,446,000 at October 31, 1997. The amendment reports that on January 27, 1998, the court granted the company's summary judgment motion on UTC's remaining patent infringement claim, finding that HEICO Aerospace and Jet Avion did not infringe. The company's counterclaims against UTC remain pending, and UTC may challenge the rulings. No provision for gain or loss has been recorded.
Feb 5, 1998
1997
Heico Annual Report, Year Ended Oct 31, 1997
HEICO Corporation (AMEX: HEI) reported fiscal 1997 (year ended October 31, 1997) net sales of $63,674,000, up from $34,565,000 in fiscal 1996, driven by the Flight Support Group and a full year of Trilectron, the ground support equipment business acquired in September 1996. Net income from continuing operations was $7,019,000, or $.73 per share, compared with $3,665,000, or $.41 per share, in fiscal 1996. Fiscal 1996 net income of $9,892,000 also included a $5,264,000 gain on the sale of the MediTek health care subsidiary. Income from operations rose to $9,114,000 from $4,512,000. The most significant event of the year was the October 30, 1997 strategic alliance with Lufthansa Technik AG, under which Lufthansa invested approximately $26 million in HEICO Aerospace: $10 million paid at closing for a 20% minority interest, and approximately $16 million to be paid over three years under a research and development cooperation agreement. The company also acquired Northwings Accessories Corporation in September 1997 for approximately $7.0 million in cash and 232,360 shares of common stock. Total assets grew to $88,639,000 from $61,836,000, and shareholders' equity rose to $59,446,000. Cash and cash equivalents increased to $24,199,000. The filing also discloses pending litigation with United Technologies Corporation, in which the company has obtained summary judgment dismissing UTC's trade secret and unfair competition claims, leaving a patent infringement claim on an expired patent and the company's counterclaims. Management and counsel state that no provision for gain or loss has been recorded. Long-term debt increased to $10,458,000, and the company reported a backlog of $36 million as of October 31, 1997, up from $25 million a year earlier.
Jan 27, 1998
1996
Heico Annual Report, Year Ended Oct 31, 1996
HEICO Corporation (the Company), a Florida-based aerospace products and services company trading on the American Stock Exchange under the symbol "HEI," reported fiscal 1996 (year ended October 31, 1996) net sales of $34,565,000, up from $25,613,000 in fiscal 1995 and $19,212,000 in fiscal 1994. Net income from continuing operations rose to $3,665,000, or $.62 per share, from $1,437,000, or $.27 per share, a year earlier. Total net income was $9,892,000, or $1.68 per share, including a $5,264,000 gain on the July 1996 sale of its MediTek Health Corporation health care segment to U.S. Diagnostic, Inc. The company is now a single business segment focused on aerospace, with its Flight Support Group (Jet Avion, LPI Industries and Aircraft Technology, led by replacement parts for Pratt & Whitney JT8D engines) representing 93% of fiscal 1996 continuing sales and its Ground Support Group (Trilectron, acquired September 1996 for about $7 million in cash plus $2.3 million of assumed debt) contributing $2,325,000 of sales. Balance sheet strengthened over the year: total assets rose to $61,836,000 from $47,401,000, shareholders' equity increased to $41,488,000 from $30,146,000, and long-term debt declined to $6,022,000 from $7,076,000. Cash and cash equivalents increased to $11,025,000, and the Company held a $10,000,000 convertible note from U.S. Diagnostic, Inc. Operating cash flow fell to $1,692,000 in fiscal 1996 from $7,123,000 in fiscal 1995, which the filing attributes primarily to planned inventory increases, and inventories grew to $15,277,000 from $5,359,000. Backlog was $25 million at October 31, 1996, compared with $23 million a year earlier. The principal risk disclosed is pending litigation brought by United Technologies Corporation alleging patent infringement, misappropriation of trade secrets and unfair competition relating to jet engine parts sold by Jet Avion. United seeks approximately $10 million for patent infringement and approximately $30 million for the trade secret and unfair competition claims, though the aggregate is said not to exceed approximately $30 million. The Company has filed counterclaims, and no provision for loss has been recorded. Management and counsel believe the patent claims can be successfully defended and the trade secret and unfair competition claims are unlikely to be proven within the statute of limitations.
Jan 28, 1997