☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the fiscal year ended October 31, 2020 or
|
||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the transition period from ______ to _______ |
Florida | 65-0341002 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.) | |||||||
3000 Taft Street, Hollywood, Florida
|
33021 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.01 par value per share | HEI | New York Stock Exchange | ||||||||||||
Class A Common Stock, $.01 par value per share | HEI.A | New York Stock Exchange |
Common Stock, $.01 par value | 54,195,165 | shares | ||||||
Class A Common Stock, $.01 par value | 81,026,674 | shares |
Page | |||||||||||
PART I | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 1B. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
Item 7. | |||||||||||
Item 7A. | |||||||||||
Item 8. | |||||||||||
Item 9. | |||||||||||
Item 9A. | |||||||||||
Item 9B. | |||||||||||
PART III | |||||||||||
Item 10. | |||||||||||
Item 11. | |||||||||||
Item 12. | |||||||||||
Item 13. | |||||||||||
Item 14. | |||||||||||
PART IV | |||||||||||
Item 15. | |||||||||||
Item 16. | |||||||||||
SIGNATURES |
Name | Age | Position(s) |
Director
Since |
|||||||||||||||||
Laurans A. Mendelson | 82 | Chairman of the Board; Chief Executive Officer; and Director | 1989 | |||||||||||||||||
Eric A. Mendelson | 55 | Co-President and Director; President and Chief Executive Officer of the HEICO Flight Support Group | 1992 | |||||||||||||||||
Victor H. Mendelson | 53 | Co-President and Director; President and Chief Executive Officer of the HEICO Electronic Technologies Group | 1996 | |||||||||||||||||
Thomas S. Irwin | 74 | Senior Executive Vice President | — | |||||||||||||||||
Carlos L. Macau, Jr. | 53 | Executive Vice President - Chief Financial Officer and Treasurer | — | |||||||||||||||||
Steven M. Walker | 56 | Chief Accounting Officer and Assistant Treasurer | — |
Square Footage | ||||||||||||||||||||
Location | Leased | Owned | Description | |||||||||||||||||
United States facilities (12 states) | 828,000 | 218,000 |
Manufacturing, engineering and distribution facilities, and corporate headquarters
|
|||||||||||||||||
United States facilities (7 states) | 216,000 | 127,000 | Repair and overhaul facilities | |||||||||||||||||
International facilities (10 countries)
- China, France, Germany, India, Laos, Netherlands, Singapore, Thailand, United Arab Emirates and United Kingdom
|
122,000 | 173,000 |
Manufacturing, engineering and distribution facilities, and sales offices
|
Square Footage | ||||||||||||||||||||
Location | Leased | Owned | Description | |||||||||||||||||
United States facilities (16 states) | 791,000 | 414,000 |
Manufacturing and engineering facilities
|
|||||||||||||||||
International facilities (4 countries)
- Canada, France, South Korea and
United Kingdom
|
98,000 | 70,000 |
Manufacturing and engineering facilities
|
Square Footage | ||||||||||||||||||||
Location | Leased |
Owned (1)
|
Description | |||||||||||||||||
United States facilities (1 state) | — | 7,000 | Administrative offices |
Cumulative Total Return as of October 31, | ||||||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||||
HEICO Common Stock | $100.00 | $134.31 | $225.84 | $326.76 | $481.43 | $410.65 | ||||||||||||||||||||||||||||||||
HEICO Class A Common Stock | 100.00 | 137.82 | 219.06 | 300.42 | 430.11 | 422.90 | ||||||||||||||||||||||||||||||||
NYSE Composite Index | 100.00 | 100.20 | 117.97 | 116.70 | 125.91 | 118.82 | ||||||||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 100.00 | 106.29 | 158.89 | 190.92 | 210.83 | 126.38 |
Cumulative Total Return as of October 31, | ||||||||||||||||||||||||||||||||
1990 | 1991 | 1992 | 1993 | 1994 | ||||||||||||||||||||||||||||
HEICO Common Stock | $100.00 | $141.49 | $158.35 | $173.88 | $123.41 | |||||||||||||||||||||||||||
NYSE Composite Index | 100.00 | 130.31 | 138.76 | 156.09 | 155.68 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 100.00 | 130.67 | 122.00 | 158.36 | 176.11 |
1995 | 1996 | 1997 | 1998 | 1999 | ||||||||||||||||||||||||||||
HEICO Common Stock | $263.25 | $430.02 | $1,008.31 | $1,448.99 | $1,051.61 | |||||||||||||||||||||||||||
NYSE Composite Index | 186.32 | 225.37 | 289.55 | 326.98 | 376.40 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 252.00 | 341.65 | 376.36 | 378.66 | 295.99 |
2000 | 2001 | 2002 | 2003 | 2004 | ||||||||||||||||||||||||||||
HEICO Common Stock | $809.50 | $1,045.86 | $670.39 | $809.50 | $1,366.57 | |||||||||||||||||||||||||||
NYSE Composite Index | 400.81 | 328.78 | 284.59 | 400.81 | 380.91 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 418.32 | 333.32 | 343.88 | 418.32 | 478.49 |
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||||||||||||||
HEICO Common Stock | $1,674.40 | $2,846.48 | $4,208.54 | $2,872.01 | $4,208.54 | |||||||||||||||||||||||||||
NYSE Composite Index | 423.05 | 499.42 | 586.87 | 344.96 | 586.87 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 579.77 | 757.97 | 1,000.84 | 602.66 | 1,000.84 |
2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||||||||||||||
HEICO Common Stock | $4,722.20 | $6,557.88 | $5,900.20 | $10,457.14 | $11,416.51 | |||||||||||||||||||||||||||
NYSE Composite Index | 427.61 | 430.46 | 467.91 | 569.69 | 617.23 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 926.75 | 995.11 | 1,070.15 | 1,645.24 | 1,687.41 |
Cumulative Total Return as of October 31, | ||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||||
HEICO Common Stock | $10,776.88 | $14,652.37 | $23,994.03 | $33,876.95 | $49,277.28 | |||||||||||||||||||||||||||
NYSE Composite Index | 595.37 | 596.57 | 702.38 | 694.81 | 749.66 | |||||||||||||||||||||||||||
Dow Jones U.S. Aerospace Index | 1,766.94 | 1,878.10 | 2,807.42 | 3,373.52 | 3,725.15 |
2020 | ||||||||
HEICO Common Stock | $44,877.75 | |||||||
NYSE Composite Index | 707.40 | |||||||
Dow Jones U.S. Aerospace Index | 2,233.00 |
Year ended October 31, (1)
|
||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||||||||
Net sales | $1,787,009 | $2,055,647 | $1,777,721 | $1,524,813 | $1,376,258 | |||||||||||||||||||||||||||
Gross profit | 682,127 | 813,840 | 690,715 | 574,725 | 515,492 | |||||||||||||||||||||||||||
Selling, general and administrative expenses
|
305,479 | 356,743 | 314,470 | 268,067 | 250,147 | |||||||||||||||||||||||||||
Operating income | 376,648 | 457,097 | 376,245 | 306,658 | 265,345 | |||||||||||||||||||||||||||
Interest expense | (13,159) | (21,695) | (19,901) | (9,790) | (8,272) | |||||||||||||||||||||||||||
Other income (expense) | 1,366 | 2,439 | (58) | 1,092 | (23) | |||||||||||||||||||||||||||
Net income attributable to HEICO
|
313,984 |
(2)
|
327,896 |
(3)
|
259,233 |
(4)(5)
|
185,985 |
(6)
|
156,192 | |||||||||||||||||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||||||||||||||||||
Basic
|
134,754 | 133,640 | 132,543 | 131,703 | 130,948 | |||||||||||||||||||||||||||
Diluted
|
137,302 | 137,350 | 136,696 | 135,588 | 133,145 | |||||||||||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||||||||||||||
Net income per share attributable to HEICO shareholders:
|
||||||||||||||||||||||||||||||||
Basic
|
$2.33 |
(2)
|
$2.45 |
(3)
|
$1.96 |
(4)(5)
|
$1.41 |
(6)
|
$1.19 | |||||||||||||||||||||||
Diluted
|
2.29 |
(2)
|
2.39 |
(3)
|
1.90 |
(4)(5)
|
1.37 |
(6)
|
1.17 | |||||||||||||||||||||||
Cash dividends per share
|
.160 | .140 | .116 | .097 | .082 | |||||||||||||||||||||||||||
Balance Sheet Data (as of October 31):
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$406,852 | $57,001 | $59,599 | $52,066 | $42,955 | |||||||||||||||||||||||||||
Total assets | 3,547,711 | 2,969,211 | 2,653,396 | 2,512,431 | 1,998,412 | |||||||||||||||||||||||||||
Total debt (including current portion)
|
739,831 | 561,955 | 532,470 | 673,979 | 458,225 | |||||||||||||||||||||||||||
Redeemable noncontrolling interests
|
221,208 | 188,264 | 132,046 | 131,123 | 99,512 | |||||||||||||||||||||||||||
Total shareholders’ equity
|
2,010,607 | 1,694,660 | 1,503,008 | 1,248,292 | 1,047,705 |
Year ended October 31, | |||||||||||
2020 | 2019 | ||||||||||
Net sales | $1,787,009 | $2,055,647 | |||||||||
Cost of sales | 1,104,882 | 1,241,807 | |||||||||
Selling, general and administrative expenses
|
305,479 | 356,743 | |||||||||
Total operating costs and expenses
|
1,410,361 | 1,598,550 | |||||||||
Operating income | $376,648 | $457,097 | |||||||||
Net sales by segment: | |||||||||||
Flight Support Group
|
$924,812 | $1,240,183 | |||||||||
Electronic Technologies Group | 874,987 | 834,522 | |||||||||
Intersegment sales
|
(12,790) | (19,058) | |||||||||
$1,787,009 | $2,055,647 | ||||||||||
Operating income by segment: | |||||||||||
Flight Support Group
|
$143,051 | $242,029 | |||||||||
Electronic Technologies Group
|
258,814 | 245,743 | |||||||||
Other, primarily corporate
|
(25,217) | (30,675) | |||||||||
$376,648 | $457,097 | ||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||
Gross profit | 38.2 | % | 39.6 | % | |||||||
Selling, general and administrative expenses
|
17.1 | % | 17.4 | % | |||||||
Operating income | 21.1 | % | 22.2 | % | |||||||
Interest expense | .7 | % | 1.1 | % | |||||||
Other income | .1 | % | .1 | % | |||||||
Income tax expense | 1.6 | % | 3.8 | % | |||||||
Net income attributable to noncontrolling interests
|
1.2 | % | 1.5 | % | |||||||
Net income attributable to HEICO
|
17.6 | % | 16.0 | % |
As of October 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash and cash equivalents | $406,852 | $57,001 | |||||||||
Total debt (including current portion) | 739,831 | 561,955 | |||||||||
Shareholders’ equity | 2,010,607 | 1,694,660 | |||||||||
Total capitalization (debt plus equity) | 2,750,438 | 2,256,615 | |||||||||
Total debt to total capitalization | 27% | 25% |
Payments due by fiscal period | |||||||||||||||||||||||||||||
Total | 2021 | 2022 - 2023 | 2024 - 2025 | Thereafter | |||||||||||||||||||||||||
Long-term debt obligations (1)
|
$730,264 | $11 | $98 | $730,110 | $45 | ||||||||||||||||||||||||
Estimated interest payments (1)
|
28,395 | 9,422 | 18,844 | 129 | — | ||||||||||||||||||||||||
Finance lease obligations (2)
|
12,144 | 1,436 | 2,527 | 1,964 | 6,217 | ||||||||||||||||||||||||
Operating lease obligations (3)
|
70,778 | 16,549 | 24,392 | 9,832 | 20,005 | ||||||||||||||||||||||||
Purchase obligations (4) (5) (6)
|
46,164 | 3,631 | 22,366 | 20,167 | — | ||||||||||||||||||||||||
Other long-term liabilities (7)
|
14,209 | 2,582 | 8,869 | 1,719 | 1,039 | ||||||||||||||||||||||||
Total contractual obligations | $901,954 | $33,631 | $77,096 | $763,921 | $27,306 |
Page | ||||||||
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $1,787,009 | $2,055,647 | $1,777,721 | ||||||||||||||
Operating costs and expenses: | |||||||||||||||||
Cost of sales
|
1,104,882 | 1,241,807 | 1,087,006 | ||||||||||||||
Selling, general and administrative expenses
|
305,479 | 356,743 | 314,470 | ||||||||||||||
Total operating costs and expenses
|
1,410,361 | 1,598,550 | 1,401,476 | ||||||||||||||
Operating income | 376,648 | 457,097 | 376,245 | ||||||||||||||
Interest expense | (13,159) | (21,695) | (19,901) | ||||||||||||||
Other income (expense) | 1,366 | 2,439 | (58) | ||||||||||||||
Income before income taxes and noncontrolling interests
|
364,855 | 437,841 | 356,286 | ||||||||||||||
Income tax expense | 29,000 | 78,100 | 70,600 | ||||||||||||||
Net income from consolidated operations | 335,855 | 359,741 | 285,686 | ||||||||||||||
Less: Net income attributable to noncontrolling interests
|
21,871 | 31,845 | 26,453 | ||||||||||||||
Net income attributable to HEICO | $313,984 | $327,896 | $259,233 | ||||||||||||||
Net income per share attributable to HEICO shareholders:
|
|||||||||||||||||
Basic
|
$2.33 | $2.45 | $1.96 | ||||||||||||||
Diluted
|
$2.29 | $2.39 | $1.90 | ||||||||||||||
Weighted average number of common shares outstanding:
|
|||||||||||||||||
Basic
|
134,754 | 133,640 | 132,543 | ||||||||||||||
Diluted
|
137,302 | 137,350 | 136,696 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income from consolidated operations | $335,855 | $359,741 | $285,686 | ||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | 8,876 | (844) | (5,243) | ||||||||||||||
Unrealized loss on defined benefit pension plan, net of tax | (1,012) | (889) | (97) | ||||||||||||||
Amortization of unrealized loss on defined benefit pension plan, net of tax | 73 | 25 | 13 | ||||||||||||||
Total other comprehensive income (loss) | 7,937 | (1,708) | (5,327) | ||||||||||||||
Comprehensive income from consolidated operations | 343,792 | 358,033 | 280,359 | ||||||||||||||
Net income attributable to noncontrolling interests | 21,871 | 31,845 | 26,453 | ||||||||||||||
Foreign currency translation adjustments attributable to noncontrolling interests
|
347 | (225) | (406) | ||||||||||||||
Comprehensive income attributable to noncontrolling interests | 22,218 | 31,620 | 26,047 | ||||||||||||||
Comprehensive income attributable to HEICO | $321,574 | $326,413 | $254,312 |
HEICO Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Common Stock | Class A Common Stock | Capital in Excess of Par Value | Deferred Compensation Obligation | HEICO Stock Held by Irrevocable Trust | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2019
|
$188,264 | $541 | $804 | $284,609 | $4,232 | ($4,232) | ($16,739) | $1,397,327 | $28,118 | $1,694,660 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income
|
16,932 | — | — | — | — | — | 7,590 | 313,984 | 5,286 | 326,860 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($.16 per share)
|
— | — | — | — | — | — | — | (21,552) | — | (21,552) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to HEICO Savings and Investment Plan
|
— | 1 | — | 9,723 | — | — | — | — | — | 9,724 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense
|
— | — | — | 10,134 | — | — | — | — | — | 10,134 | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock option exercises
|
— | — | 6 | 6,949 | — | — | — | — | — | 6,955 | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock related to stock option exercises
|
— | — | (1) | (12,119) | — | — | — | — | — | (12,120) | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed related to acquisitions
|
22,204 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions from noncontrolling interests | 14,329 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(16,176) | — | — | — | — | — | — | — | (1,732) | (1,732) | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of noncontrolling interests
|
(7,475) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests
|
1,714 | — | — | — | — | — | — | (1,714) | — | (1,714) | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation | — | — | — | — | 654 | (654) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
1,416 | — | — | 634 | — | — | — | — | (1,242) | (608) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2020 | $221,208 | $542 | $809 | $299,930 | $4,886 | ($4,886) | ($9,149) | $1,688,045 | $30,430 | $2,010,607 |
HEICO Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Common Stock | Class A Common Stock | Capital in Excess of Par Value | Deferred Compensation Obligation | HEICO Stock Held by Irrevocable Trust | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2018
|
$132,046 | $534 | $796 | $320,994 | $3,928 | ($3,928) | ($15,256) | $1,091,183 | $104,757 | $1,503,008 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect from adoption of ASC 606
|
819 | — | — | — | — | — | — | 13,373 | 326 | 13,699 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income
|
18,116 | — | — | — | — | — | (1,483) | 327,896 | 13,504 | 339,917 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($.14 per share)
|
— | — | — | — | — | — | — | (18,691) | — | (18,691) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to HEICO Savings and Investment Plan
|
— | — | — | 8,666 | — | — | — | — | — | 8,666 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense
|
— | — | — | 10,334 | — | — | — | — | — | 10,334 | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock option exercises
|
— | 12 | 8 | 8,527 | — | — | — | — | — | 8,547 | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock related to stock option exercises
|
— | (5) | (1) | (64,008) | — | — | — | — | — | (64,014) | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed related to acquisitions | 38,696 | — | — | — | — | — | — | — | 2,551 | 2,551 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (17,847) | — | — | — | — | — | — | — | (93,022) | (93,022) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests
|
16,434 | — | — | — | — | — | — | (16,434) | — | (16,434) | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation
|
— | — | — | — | 304 | (304) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
— | — | 1 | 96 | — | — | — | — | 2 | 99 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2019
|
$188,264 | $541 | $804 | $284,609 | $4,232 | ($4,232) | ($16,739) | $1,397,327 | $28,118 | $1,694,660 | |||||||||||||||||||||||||||||||||||||||||||||||||
HEICO Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Common Stock | Class A Common Stock | Capital in Excess of Par Value | Deferred Compensation Obligation | HEICO Stock Held by Irrevocable Trust | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2017
|
$131,123 | $338 | $507 | $326,544 | $3,118 | ($3,118) | ($10,556) | $844,247 | $87,212 | $1,248,292 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income
|
13,070 | — | — | — | — | — | (4,921) | 259,233 | 12,977 | 267,289 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($.116 per share)
|
— | — | — | — | — | — | — | (15,363) | — | (15,363) | |||||||||||||||||||||||||||||||||||||||||||||||||
Five-for-four common stock splits
|
— | 191 | 286 | (477) | — | — | — | (28) | — | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to HEICO Savings and Investment Plan
|
— | 1 | 1 | 7,868 | — | — | — | — | — | 7,870 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense
|
— | — | — | 9,283 | — | — | — | — | — | 9,283 | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock option exercises
|
— | 7 | 2 | 4,022 | — | — | — | — | — | 4,031 | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock related to stock option exercises
|
— | (3) | — | (24,980) | — | — | — | — | — | (24,983) | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed related to acquisitions
|
2,491 | — | — | — | — | — | — | — | 5,350 | 5,350 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests
|
(12,005) | — | — | — | — | — | — | — | (1,054) | (1,054) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests
|
(3,627) | — | — | — | — | — | — | 3,627 | — | 3,627 | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation
|
— | — | — | — | 810 | (810) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 994 | — | — | (1,266) | — | — | 221 | (533) | 272 | (1,306) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2018
|
$132,046 | $534 | $796 | $320,994 | $3,928 | ($3,928) | ($15,256) | $1,091,183 | $104,757 | $1,503,008 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating Activities: | |||||||||||||||||
Net income from consolidated operations
|
$335,855 | $359,741 | $285,686 | ||||||||||||||
Adjustments to reconcile net income from consolidated operations
to net cash provided by operating activities:
|
|||||||||||||||||
Depreciation and amortization | 88,561 | 83,497 | 77,191 | ||||||||||||||
Share-based compensation expense | 10,134 | 10,334 | 9,283 | ||||||||||||||
Employer contributions to HEICO Savings and Investment Plan | 9,576 | 9,528 | 8,019 | ||||||||||||||
Deferred income tax benefit | (5,998) | (6,392) | (12,977) | ||||||||||||||
Increase (decrease) in accrued contingent consideration, net | 515 | 2,630 | (1,365) | ||||||||||||||
Payment of contingent consideration | (175) | (3,105) | — | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||
Decrease (increase) in accounts receivable | 71,515 | (28,976) | (23,763) | ||||||||||||||
(Increase) decrease in contract assets | (16,398) | 11,583 | (4,806) | ||||||||||||||
Increase in inventories | (28,315) | (30,077) | (49,455) | ||||||||||||||
Decrease in prepaid expenses and other current assets | 2,471 | 609 | 401 | ||||||||||||||
(Decrease) increase in trade accounts payable | (30,327) | (3,851) | 17,403 | ||||||||||||||
(Decrease) increase in accrued expenses and other current liabilities | (37,905) | 17,151 | 22,121 | ||||||||||||||
(Decrease) increase in income taxes payable | (9,586) | 1,296 | (12,530) | ||||||||||||||
Net changes in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 14,836 | 12,920 | 11,610 | ||||||||||||||
Other | 4,366 | 490 | 1,669 | ||||||||||||||
Net cash provided by operating activities
|
409,125 | 437,378 | 328,487 | ||||||||||||||
Investing Activities: | |||||||||||||||||
Acquisitions, net of cash acquired
|
(163,939) | (240,841) | (59,775) | ||||||||||||||
Capital expenditures
|
(22,940) | (28,938) | (41,871) | ||||||||||||||
Investments related to HEICO Leadership Compensation Plan, net
|
(15,900) | (13,701) | (11,500) | ||||||||||||||
Other
|
3,736 | 2,834 | (365) | ||||||||||||||
Net cash used in investing activities
|
(199,043) | (280,646) | (113,511) | ||||||||||||||
Financing Activities: | |||||||||||||||||
Borrowings on revolving credit facility
|
245,000 | 313,000 | 56,000 | ||||||||||||||
Payments on revolving credit facility
|
(68,000) | (283,000) | (204,000) | ||||||||||||||
Capital contributions from noncontrolling interests | 14,329 | — | — | ||||||||||||||
Proceeds from stock option exercises
|
6,955 | 8,547 | 4,031 | ||||||||||||||
Cash dividends paid
|
(21,552) | (18,691) | (15,363) | ||||||||||||||
Distributions to noncontrolling interests
|
(17,908) | (110,869) | (13,059) | ||||||||||||||
Redemptions of common stock related to stock option exercises
|
(12,120) | (64,014) | (24,983) | ||||||||||||||
Acquisitions of noncontrolling interests
|
(7,475) | — | — | ||||||||||||||
Payment of contingent consideration
|
(325) | (4,073) | (5,425) | ||||||||||||||
Revolving credit facility issuance costs
|
— | — | (4,067) | ||||||||||||||
Other
|
(1,161) | (620) | (669) | ||||||||||||||
Net cash provided by (used in) financing activities
|
137,743 | (159,720) | (207,535) | ||||||||||||||
Effect of exchange rate changes on cash
|
2,026 | 390 | 92 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
349,851 | (2,598) | 7,533 | ||||||||||||||
Cash and cash equivalents at beginning of year | 57,001 | 59,599 | 52,066 | ||||||||||||||
Cash and cash equivalents at end of year
|
$406,852 | $57,001 | $59,599 |
Buildings and improvements | 10 | to | 40 | years | ||||||||||||||||
Machinery and equipment | 3 | to | 10 | years | ||||||||||||||||
Leasehold improvements | 2 | to | 20 | years | ||||||||||||||||
Tooling | 2 | to | 5 | years |
Customer relationships | 4 | to | 15 | years | ||||||||||||||||
Intellectual property | 4 | to | 22 | years | ||||||||||||||||
Licenses | 10 | to | 11 | years | ||||||||||||||||
Patents | 5 | to | 20 | years | ||||||||||||||||
Trade names | 8 | to | 15 | years |
As of October 31, | |||||||||||
2020 | 2019 | ||||||||||
Fair value of plan assets | $11,581 | $11,311 | |||||||||
Projected benefit obligation | 14,519 | 13,943 | |||||||||
Funded status | ($2,938) | ($2,632) |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash paid
|
$165,290 | $243,550 | $61,931 | ||||||||||||||
Less: cash acquired
|
(1,351) | (2,466) | (4,000) | ||||||||||||||
Cash paid, net
|
163,939 | 241,084 | 57,931 | ||||||||||||||
Contingent consideration
|
23,719 | 2,107 | — | ||||||||||||||
Fair value of existing equity interest
|
— | 1,417 | — | ||||||||||||||
Additional purchase consideration
|
283 | — | (243) | ||||||||||||||
Total consideration
|
$187,941 | $244,608 | $57,688 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Assets acquired: | |||||||||||||||||
Goodwill | $114,380 | $155,892 | $38,359 | ||||||||||||||
Customer relationships | 44,740 | 47,553 | 11,620 | ||||||||||||||
Intellectual property | 27,120 | 31,459 | 6,970 | ||||||||||||||
Trade names | 12,410 | 19,216 | 760 | ||||||||||||||
Inventories | 12,777 | 18,046 | 6,307 | ||||||||||||||
Accounts receivable | 7,124 | 8,673 | 1,480 | ||||||||||||||
Property, plant and equipment | 3,546 | 18,013 | 1,777 | ||||||||||||||
Other assets (including contract assets) | 1,891 | 907 | 126 | ||||||||||||||
Total assets acquired, excluding cash | 223,988 | 299,759 | 67,399 | ||||||||||||||
Liabilities assumed: | |||||||||||||||||
Deferred income taxes | 10,232 | 7,427 | — | ||||||||||||||
Accrued expenses | 2,688 | 2,971 | 1,522 | ||||||||||||||
Accounts payable | 726 | 2,879 | 671 | ||||||||||||||
Other liabilities | 197 | 627 | — | ||||||||||||||
Total liabilities assumed | 13,843 | 13,904 | 2,193 | ||||||||||||||
Noncontrolling interests in consolidated subsidiaries
|
22,204 | 41,247 | 7,518 | ||||||||||||||
Net assets acquired, excluding cash | $187,941 | $244,608 | $57,688 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Customer relationships | 10 | 11 | 7 | ||||||||||||||
Intellectual property | 11 | 15 | 10 |
As of October 31, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Accounts receivable
|
$223,171 | $277,992 | ||||||||||||
Less: Allowance for doubtful accounts
|
(12,738) | (3,666) | ||||||||||||
Accounts receivable, net
|
$210,433 | $274,326 |
As of October 31, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Finished products
|
$235,501 | $199,880 | ||||||||||||
Work in process
|
37,957 | 32,548 | ||||||||||||
Materials, parts, assemblies and supplies
|
189,747 | 187,891 | ||||||||||||
Inventories, net of valuation reserves
|
$463,205 | $420,319 |
As of October 31, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Land
|
$6,678 | $6,820 | ||||||||||||
Buildings and improvements
|
120,769 | 116,997 | ||||||||||||
Machinery, equipment and tooling
|
265,408 | 253,127 | ||||||||||||
Construction in progress
|
8,487 | 8,382 | ||||||||||||
401,342 | 385,326 | |||||||||||||
Less: Accumulated depreciation and amortization
|
(232,494) | (211,981) | ||||||||||||
Property, plant and equipment, net
|
$168,848 | $173,345 |
As of October 31, | ||||||||||||||
(in thousands) | 2020 | 2019 | ||||||||||||
Accrued employee compensation and related payroll taxes
|
$83,055 | $112,602 | ||||||||||||
Contract liabilities
|
25,631 | 23,809 | ||||||||||||
Accrued customer rebates and credits
|
15,813 | 17,978 | ||||||||||||
Current operating lease liabilities | 14,180 | — | ||||||||||||
Other
|
23,553 | 24,568 | ||||||||||||
Accrued expenses and other current liabilities
|
$162,232 | $178,957 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
R&D expenses | $65,559 | $66,630 | $57,450 |
Foreign Currency Translation | Defined Benefit Pension Plan |
Accumulated
Other Comprehensive Loss |
|||||||||||||||
Balances as of October 31, 2018 | ($14,370) | ($886) | ($15,256) | ||||||||||||||
Unrealized loss | (619) | (889) | (1,508) | ||||||||||||||
Amortization of unrealized loss | — | 25 | 25 | ||||||||||||||
Balances as of October 31, 2019 | (14,989) | (1,750) | (16,739) | ||||||||||||||
Unrealized gain (loss) | 8,529 | (1,012) | 7,517 | ||||||||||||||
Amortization of unrealized loss | — | 73 | 73 | ||||||||||||||
Balances as of October 31, 2020 | ($6,460) | ($2,689) | ($9,149) |
Segment | Consolidated | ||||||||||||||||
FSG | ETG | Totals | |||||||||||||||
Balances as of October 31, 2018 | $398,694 | $716,138 | $1,114,832 | ||||||||||||||
Goodwill acquired | 12,891 | 143,286 | 156,177 | ||||||||||||||
Foreign currency translation adjustments
|
(1,580) | (765) | (2,345) | ||||||||||||||
Adjustments to goodwill
|
39 | — | 39 | ||||||||||||||
Balances as of October 31, 2019 | 410,044 | 858,659 | 1,268,703 | ||||||||||||||
Goodwill acquired | 14,979 | 99,401 | 114,380 | ||||||||||||||
Foreign currency translation adjustments
|
2,542 | 2,076 | 4,618 | ||||||||||||||
Deconsolidation of subsidiary
|
— | (4,249) | (4,249) | ||||||||||||||
Adjustments to goodwill
|
— | (285) | (285) | ||||||||||||||
Balances as of October 31, 2020 | $427,565 | $955,602 | $1,383,167 |
As of October 31, 2020 | As of October 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
||||||||||||||||||||||||||||||
Amortizing Assets:
|
|||||||||||||||||||||||||||||||||||
Customer relationships
|
$443,143 | ($188,919) | $254,224 | $411,076 | ($162,722) | $248,354 | |||||||||||||||||||||||||||||
Intellectual property
|
240,725 | (84,686) | 156,039 | 216,359 | (70,169) | 146,190 | |||||||||||||||||||||||||||||
Licenses
|
6,559 | (4,670) | 1,889 | 6,559 | (4,102) | 2,457 | |||||||||||||||||||||||||||||
Patents
|
1,071 | (746) | 325 | 986 | (666) | 320 | |||||||||||||||||||||||||||||
Non-compete agreements
|
811 | (811) | — | 813 | (813) | — | |||||||||||||||||||||||||||||
Trade names
|
450 | (219) | 231 | 450 | (180) | 270 | |||||||||||||||||||||||||||||
692,759 | (280,051) | 412,708 | 636,243 | (238,652) | 397,591 | ||||||||||||||||||||||||||||||
Non-Amortizing Assets:
|
|||||||||||||||||||||||||||||||||||
Trade names
|
166,333 | — | 166,333 | 153,102 | — | 153,102 | |||||||||||||||||||||||||||||
$859,092 | ($280,051) | $579,041 | $789,345 | ($238,652) | $550,693 |
As of October 31, | |||||||||||
2020 | 2019 | ||||||||||
Borrowings under revolving credit facility
|
$730,000 | $553,000 | |||||||||
Finance leases and note payable (1)
|
9,831 | 8,955 | |||||||||
739,831 | 561,955 | ||||||||||
Less: Current maturities of long-term debt
|
(1,045) | (906) | |||||||||
$738,786 | $561,049 | ||||||||||
October 31, 2020 | October 31, 2019 | Change | |||||||||||||||
Contract assets | $60,429 | $43,132 | $17,297 | ||||||||||||||
Contract liabilities | 25,631 | 23,809 | 1,822 | ||||||||||||||
Net contract assets | $34,798 | $19,323 | $15,475 |
Year Ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Flight Support Group: | |||||||||||||||||
Aftermarket replacement parts (1)
|
$525,636 | $678,001 | $582,562 | ||||||||||||||
Repair and overhaul parts and services (2)
|
193,164 | 299,323 | 286,454 | ||||||||||||||
Specialty products (3)
|
206,012 | 262,859 | 228,921 | ||||||||||||||
Total net sales | 924,812 | 1,240,183 | 1,097,937 | ||||||||||||||
Electronic Technologies Group: | |||||||||||||||||
Electronic component parts primarily for
defense, space and aerospace equipment (4)
|
679,901 | 633,685 | 547,088 | ||||||||||||||
Electronic component parts for equipment
in various other industries (5)
|
195,086 | 200,837 | 154,739 | ||||||||||||||
Total net sales | 874,987 | 834,522 | 701,827 | ||||||||||||||
Intersegment sales | (12,790) | (19,058) | (22,043) | ||||||||||||||
Total consolidated net sales | $1,787,009 | $2,055,647 | $1,777,721 | ||||||||||||||
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Flight Support Group: | |||||||||||||||||
Aerospace | $669,194 | $1,004,088 | $890,059 | ||||||||||||||
Defense and Space | 213,273 | 190,076 | 163,330 | ||||||||||||||
Other (1)
|
42,345 | 46,019 | 44,548 | ||||||||||||||
Total net sales | 924,812 | 1,240,183 | 1,097,937 | ||||||||||||||
Electronic Technologies Group: | |||||||||||||||||
Defense and Space | 577,581 | 531,029 | 452,714 | ||||||||||||||
Other (2)
|
225,749 | 217,889 | 177,878 | ||||||||||||||
Aerospace | 71,657 | 85,604 | 71,235 | ||||||||||||||
Total net sales | 874,987 | 834,522 | 701,827 | ||||||||||||||
Intersegment sales | (12,790) | (19,058) | (22,043) | ||||||||||||||
Total consolidated net sales | $1,787,009 | $2,055,647 | $1,777,721 | ||||||||||||||
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Domestic | $327,754 | $386,584 | $309,123 | ||||||||||||||
Foreign | 37,101 | 51,257 | 47,163 | ||||||||||||||
Income before taxes and noncontrolling interests
|
$364,855 | $437,841 | $356,286 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $17,730 | $56,670 | $61,548 | ||||||||||||||
State | 4,167 | 12,795 | 9,420 | ||||||||||||||
Foreign | 13,101 | 15,027 | 12,608 | ||||||||||||||
34,998 | 84,492 | 83,576 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | (3,364) | (3,140) | (13,115) | ||||||||||||||
State | (55) | (1,263) | 1,578 | ||||||||||||||
Foreign | (2,579) | (1,989) | (1,439) | ||||||||||||||
(5,998) | (6,392) | (12,976) | |||||||||||||||
Total income tax expense
|
$29,000 | $78,100 | $70,600 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Federal statutory income tax rate (blended rate in fiscal 2018)
|
21.0 | % | 21.0 | % | 23.3 | % | |||||||||||
State taxes, net of federal income tax benefit
|
3.7 | % | 3.0 | % | 2.9 | % | |||||||||||
Tax benefit related to stock option exercises
|
(13.3 | %) | (3.8 | %) | (.5 | %) | |||||||||||
Discrete net tax benefit related to Tax Act
|
— | % | — | % | (3.4 | %) | |||||||||||
Research and development tax credits
|
(2.4 | %) | (1.7 | %) | (2.0 | %) | |||||||||||
Foreign derived intangible income deduction
|
(1.6 | %) | (1.4 | %) | — | % | |||||||||||
Tax-exempt (gains) losses on corporate-owned life insurance policies
|
(.7 | %) | (.6 | %) | .1 | % | |||||||||||
Nondeductible compensation
|
.4 | % | .8 | % | .2 | % | |||||||||||
Domestic production activities tax deduction
|
— | % | — | % | (.8 | %) | |||||||||||
Other, net
|
.8 | % | .5 | % | — | % | |||||||||||
Effective tax rate
|
7.9 | % | 17.8 | % | 19.8 | % |
As of October 31, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax assets: | |||||||||||
Deferred compensation plan liability | $41,744 | $35,437 | |||||||||
Inventories
|
36,414 | 23,858 | |||||||||
Operating lease liabilities | 12,980 | — | |||||||||
Share-based compensation
|
8,746 | 10,206 | |||||||||
Allowance for doubtful accounts receivable | 2,966 | 724 | |||||||||
Customer rebates accrual
|
2,667 | 2,324 | |||||||||
Performance-based compensation accrual | 2,539 | 6,463 | |||||||||
Vacation accrual
|
1,840 | 1,452 | |||||||||
Other
|
10,706 | 8,082 | |||||||||
Total deferred tax assets
|
120,602 | 88,546 | |||||||||
Deferred tax liabilities:
|
|||||||||||
Goodwill and other intangible assets
|
(141,152) | (122,075) | |||||||||
Property, plant and equipment
|
(16,130) | (14,137) | |||||||||
Operating lease right-of-use assets | (12,327) | — | |||||||||
Adoption of ASC 606 (revenue recognition) | (4,733) | (3,277) | |||||||||
Other
|
(1,918) | (553) | |||||||||
Total deferred tax liabilities
|
(176,260) | (140,042) | |||||||||
Net deferred tax liability
|
($55,658) | ($51,496) |
Year ended October 31, | |||||||||||
2020 | 2019 | ||||||||||
Balances as of beginning of year | $2,670 | $2,100 | |||||||||
Increases related to current year tax positions | 489 | 653 | |||||||||
Increases related to prior year tax positions | 32 | 45 | |||||||||
Decreases related to prior year tax positions | (18) | — | |||||||||
Lapses of statutes of limitations | (227) | (128) | |||||||||
Balances as of end of year | $2,946 | $2,670 |
As of October 31, 2020 | ||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Deferred compensation plan: | ||||||||||||||||||||||||||
Corporate-owned life insurance | $— | $180,128 | $— | $180,128 | ||||||||||||||||||||||
Money market funds | 11 | — | — | 11 | ||||||||||||||||||||||
Total assets | $11 | $180,128 | $— | $180,139 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Contingent consideration | $— | $— | $41,974 | $41,974 |
As of October 31, 2019 | ||||||||||||||||||||||||||
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Deferred compensation plan: | ||||||||||||||||||||||||||
Corporate-owned life insurance | $— | $151,871 | $— | $151,871 | ||||||||||||||||||||||
Money market funds | 20 | — | — | 20 | ||||||||||||||||||||||
Total assets | $20 | $151,871 | $— | $151,891 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Contingent consideration | $— | $— | $18,326 | $18,326 |
Acquisition Date | ||||||||||||||||||||||||||||||||||||||
8-18-2020 | 8-11-2020 | 9-15-2017 | ||||||||||||||||||||||||||||||||||||
Compound annual revenue growth rate range | 0 | % | - | 18% | 4 | % | - | 18% | (3 | %) | - | 10% | ||||||||||||||||||||||||||
Weighted average discount rate | 4.4% | 4.5% | 3.4% |
Liabilities | |||||
Balance as of October 31, 2018 | $20,875 | ||||
Increase in accrued contingent consideration, net | 2,630 | ||||
Contingent consideration related to acquisition | 2,107 | ||||
Payment of contingent consideration | (7,178) | ||||
Foreign currency transaction adjustments | (108) | ||||
Balance as of October 31, 2019 | 18,326 | ||||
Contingent consideration related to acquisitions | 23,719 | ||||
Increase in accrued contingent consideration, net | 515 | ||||
Payment of contingent consideration | (500) | ||||
Foreign currency transaction adjustments | (86) | ||||
Balance as of October 31, 2020 | $41,974 |
As of October 31, 2020 | |||||||||||
Operating Leases | Finance Leases | ||||||||||
Right-of-use assets | $57,103 | $10,512 | |||||||||
Current lease liabilities | $14,180 | $1,034 | |||||||||
Long-term lease liabilities | 44,114 | 8,533 | |||||||||
Total lease liabilities | $58,294 | $9,567 |
Year ended | ||||||||
October 31, 2020 | ||||||||
Operating Leases: | ||||||||
Operating lease expense | $17,317 | |||||||
Variable lease expense | 3,225 | |||||||
Total operating lease expense (1)
|
$20,542 | |||||||
Finance Leases: | ||||||||
Amortization on finance lease ROU assets | $874 | |||||||
Interest on finance lease liabilities | 416 | |||||||
Total finance lease expense | $1,290 | |||||||
Operating Leases | Finance Leases | ||||||||||
Year ending October 31, | |||||||||||
2021 | $16,549 | $1,436 | |||||||||
2022 | 15,228 | 1,429 | |||||||||
2023 | 9,164 | 1,098 | |||||||||
2024 | 5,326 | 1,005 | |||||||||
2025 | 4,506 | 959 | |||||||||
Thereafter | 20,005 | 6,217 | |||||||||
Total minimum lease payments | 70,778 | 12,144 | |||||||||
Less: imputed interest | (12,484) | (2,577) | |||||||||
Present value of minimum lease payments | $58,294 | $9,567 |
As of October 31, 2020 | |||||||||||
Operating Leases | Finance Leases | ||||||||||
Weighted average remaining lease term (years) | 7 | 10.8 | |||||||||
Weighted average discount rate | 5.1 | % | 4.5 | % |
Year ended October 31, 2020 | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||
Cash paid for amounts included in the measurement of lease
liabilities
|
||||||||||||||
Operating cash flows | $16,965 | $416 | ||||||||||||
Financing cash flows | — | 921 | ||||||||||||
Right-of-use assets obtained in exchange for new lease
liabilities
|
$8,648 | $1,808 | ||||||||||||
Operating Leases | Capital Leases | ||||||||||
Year ending October 31, | |||||||||||
2020 | $15,508 | $1,213 | |||||||||
2021 | 15,563 | 1,212 | |||||||||
2022 | 13,808 | 1,203 | |||||||||
2023 | 8,515 | 906 | |||||||||
2024 | 4,741 | 832 | |||||||||
Thereafter | 18,812 | 5,596 | |||||||||
Total minimum lease payments | $76,947 | 10,962 | |||||||||
Less: imputed interest | (2,327) | ||||||||||
Present value of minimum lease payments | $8,635 |
Shares Under Option | |||||||||||||||||
Shares Available For Grant | Shares | Weighted Average Exercise Price | |||||||||||||||
Outstanding as of October 31, 2017 | 830 | 7,297 | $18.58 | ||||||||||||||
Shares approved by the Company's shareholders for the 2018 Incentive Compensation Plan
|
5,000 | — | $— | ||||||||||||||
Cancelled unissued shares under the 2012 Incentive Compensation Plan
|
(830) | — | $— | ||||||||||||||
Granted | (412) | 412 | $65.64 | ||||||||||||||
Exercised | — | (1,285) | $10.54 | ||||||||||||||
Cancelled
|
24 | (24) | $28.85 | ||||||||||||||
Outstanding as of October 31, 2018 | 4,612 | 6,400 | $23.19 | ||||||||||||||
Granted | (538) | 538 | $73.30 | ||||||||||||||
Exercised | — | (2,235) | $12.98 | ||||||||||||||
Cancelled | 11 | (11) | $49.79 | ||||||||||||||
Outstanding as of October 31, 2019 | 4,085 | 4,692 | $33.73 | ||||||||||||||
Granted | (29) | 29 | $97.00 | ||||||||||||||
Exercised | — | (720) | $19.32 | ||||||||||||||
Cancelled | 8 | (8) | $55.61 | ||||||||||||||
Outstanding as of October 31, 2020 | 4,064 | 3,993 | $36.75 |
Options Outstanding | |||||||||||||||||||||||
Number Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Common Stock | 1,681 | $35.91 | 4.7 | $116,257 | |||||||||||||||||||
Class A Common Stock | 2,312 | $37.36 | 5.5 | 129,929 | |||||||||||||||||||
3,993 | $36.75 | 5.2 | $246,186 |
Options Exercisable | |||||||||||||||||||||||
Number Exercisable | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Common Stock | 1,256 | $27.46 | 4.0 | $97,467 | |||||||||||||||||||
Class A Common Stock | 1,458 | $27.57 | 4.4 | 96,137 | |||||||||||||||||||
2,714 | $27.52 | 4.2 | $193,604 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash proceeds from stock option exercises | $6,955 | $8,547 | $4,031 | ||||||||||||||
Tax benefit realized from stock option exercises | 48,326 | 16,490 | 2,162 | ||||||||||||||
Intrinsic value of stock option exercises | 53,384 | 204,901 | 75,152 |
Common Stock | Class A Common Stock | ||||||||||
Shares available for issuance as of October 31, 2017 | 398 | 398 | |||||||||
Issuance of common stock to the 401(k) Plan | (65) | (65) | |||||||||
Shares available for issuance as of October 31, 2018 | 333 | 333 | |||||||||
Issuance of common stock to the 401(k) Plan | (53) | (53) | |||||||||
Shares available for issuance as of October 31, 2019 | 280 | 280 | |||||||||
Issuance of common stock to the 401(k) Plan | (52) | (52) | |||||||||
Shares available for issuance as of October 31, 2020 | 228 | 228 |
As of October 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Redeemable at fair value | $179,415 | $136,611 | ||||||||||||
Redeemable based on a multiple of future earnings | 41,793 | 51,653 | ||||||||||||
Redeemable noncontrolling interests | $221,208 | $188,264 |
Subsidiary
Acquisition Year |
Operating
Segment |
Company
Ownership Interest |
Earliest
Put Right Year |
Purchase
Period (Years) |
||||||||||||||||||||||
2005 | ETG | 95.9% |
2021 (1)
|
4 (2)
|
||||||||||||||||||||||
2006 | FSG | 80.1% |
2021 (1)
|
4 | ||||||||||||||||||||||
2008 | FSG | 86.2% | 2024 |
4 (3)
|
||||||||||||||||||||||
2009 | ETG | 82.5% |
2021 (1)
|
1 | ||||||||||||||||||||||
2012 | FSG | 84.0% |
2021 (1)
|
4 | ||||||||||||||||||||||
2012 | FSG | 80.1% |
2021 (1)
|
4 | ||||||||||||||||||||||
2015 | FSG | 85.0% | 2021 |
3 (4)
|
||||||||||||||||||||||
2015 | FSG | 80.1% |
2021 (1)
|
4 | ||||||||||||||||||||||
2015 | FSG | 80.1% | 2022 | 4 | ||||||||||||||||||||||
2015 | ETG | 80.1% |
2021 (1)
|
2 | ||||||||||||||||||||||
2017 | FSG | 80.1% | 2022 |
2 (5)
|
||||||||||||||||||||||
2018 | ETG | 85.0% | 2021 | 1 | ||||||||||||||||||||||
2019 | ETG | 92.7% | 2023 | 4 | ||||||||||||||||||||||
2019 | ETG | 85.0% | 2024 | 4 | ||||||||||||||||||||||
2019 | FSG | 80.1% | 2026 | 4 | ||||||||||||||||||||||
2019 | ETG | 75.0% | 2024 |
4 (6)
|
||||||||||||||||||||||
2020 | ETG | 80.1% | 2025 | 4 | ||||||||||||||||||||||
2020 | FSG | 70.0% | 2027 | 4 | ||||||||||||||||||||||
2020 | ETG | 75.0% | 2024 |
4 (6)
|
||||||||||||||||||||||
2020 | ETG | 90.0% | 2025 | 4 | ||||||||||||||||||||||
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to HEICO | $313,984 | $327,896 | $259,233 | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding - basic | 134,754 | 133,640 | 132,543 | ||||||||||||||
Effect of dilutive stock options | 2,548 | 3,710 | 4,153 | ||||||||||||||
Weighted average common shares outstanding - diluted | 137,302 | 137,350 | 136,696 | ||||||||||||||
Net income per share attributable to HEICO shareholders: | |||||||||||||||||
Basic | $2.33 | $2.45 | $1.96 | ||||||||||||||
Diluted | $2.29 | $2.39 | $1.90 | ||||||||||||||
Anti-dilutive stock options excluded | 258 | 330 | 512 |
(in thousands, except per share data) |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||
2020 | $506,275 | $468,146 | $386,410 | $426,178 | ||||||||||||||||||||||
2019 | $466,146 | $515,648 | $532,324 | $541,529 | ||||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||
2020 | $198,047 | $178,890 | $143,483 | $161,707 | ||||||||||||||||||||||
2019 | $182,237 | $209,387 | $212,831 | $209,385 | ||||||||||||||||||||||
Net income from consolidated operations:
|
||||||||||||||||||||||||||
2020 | $129,802 | $80,909 | $57,564 | $67,580 | ||||||||||||||||||||||
2019 | $88,026 | $90,083 | $89,059 | $92,573 | ||||||||||||||||||||||
Net income attributable to HEICO:
|
||||||||||||||||||||||||||
2020 | $121,888 | $75,453 | $54,316 | $62,327 | ||||||||||||||||||||||
2019 | $79,332 | $81,782 | $81,098 | $85,684 | ||||||||||||||||||||||
Net income per share attributable to HEICO:
|
||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
2020 | $.91 | $.56 | $.40 | $.46 | ||||||||||||||||||||||
2019 | $.60 | $.61 | $.61 | $.64 | ||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
2020 | $.89 | $.55 | $.40 | $.45 | ||||||||||||||||||||||
2019 | $.58 | $.60 | $.59 | $.62 |
Segment |
Other, Primarily Corporate and Intersegment (1)
|
Consolidated Totals | ||||||||||||||||||||||||
FSG | ETG | |||||||||||||||||||||||||
Year ended October 31, 2020: | ||||||||||||||||||||||||||
Net sales | $924,812 | $874,987 | ($12,790) | $1,787,009 | ||||||||||||||||||||||
Depreciation | 14,339 | 11,722 | 1,006 | 27,067 | ||||||||||||||||||||||
Amortization | 19,957 | 40,553 | 984 | 61,494 | ||||||||||||||||||||||
Operating income | 143,051 | 258,814 | (25,217) | 376,648 | ||||||||||||||||||||||
Capital expenditures | 10,843 | 12,025 | 72 | 22,940 | ||||||||||||||||||||||
Year ended October 31, 2019: | ||||||||||||||||||||||||||
Net sales | $1,240,183 | $834,522 | ($19,058) | $2,055,647 | ||||||||||||||||||||||
Depreciation | 13,793 | 10,957 | 1,008 | 25,758 | ||||||||||||||||||||||
Amortization | 19,624 | 37,131 | 984 | 57,739 | ||||||||||||||||||||||
Operating income | 242,029 | 245,743 | (30,675) | 457,097 | ||||||||||||||||||||||
Capital expenditures | 17,036 | 11,826 | 76 | 28,938 | ||||||||||||||||||||||
Year ended October 31, 2018: | ||||||||||||||||||||||||||
Net sales | $1,097,937 | $701,827 | ($22,043) | $1,777,721 | ||||||||||||||||||||||
Depreciation | 13,322 | 9,225 | 692 | 23,239 | ||||||||||||||||||||||
Amortization | 19,530 | 33,339 | 1,083 | 53,952 | ||||||||||||||||||||||
Operating income | 206,623 | 204,508 | (34,886) | 376,245 | ||||||||||||||||||||||
Capital expenditures | 13,074 | 9,531 | 19,266 | 41,871 | ||||||||||||||||||||||
(1) Intersegment activity principally consists of net sales from the ETG to the FSG.
|
Other,
Primarily Corporate |
Consolidated
Totals |
|||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||||
As of October 31, | FSG | ETG | ||||||||||||||||||||||||
2020 | $1,127,666 | $1,896,671 | $523,374 | $3,547,711 | ||||||||||||||||||||||
2019 | 1,149,737 | 1,643,032 | 176,442 | 2,969,211 |
2020 | 2019 | 2018 | |||||||||||||||
Net sales: | |||||||||||||||||
United States of America | $1,193,497 | $1,308,943 | $1,127,998 | ||||||||||||||
Other countries | 593,512 | 746,704 | 649,723 | ||||||||||||||
Total net sales | $1,787,009 | $2,055,647 | $1,777,721 | ||||||||||||||
Long-lived assets: | |||||||||||||||||
United States of America | $139,197 | $143,350 | $124,225 | ||||||||||||||
Other countries | 29,651 | 29,995 | 30,514 | ||||||||||||||
Total long-lived assets | $168,848 | $173,345 | $154,739 |
Year ended October 31, | |||||||||||
2020 | 2019 | ||||||||||
Balances as of beginning of year | $2,810 | $3,306 | |||||||||
Accruals for warranties | 1,749 | 2,061 | |||||||||
Acquired warranty liabilities | 150 | — | |||||||||
Warranty claims settled | (1,694) | (2,557) | |||||||||
Balances as of end of year | $3,015 | $2,810 |
Year ended October 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash paid for income taxes | $42,552 | $82,211 | $90,488 | ||||||||||||||
Cash received from income tax refunds | (1,371) | (578) | (1,510) | ||||||||||||||
Cash paid for interest | 13,418 | 22,158 | 19,233 | ||||||||||||||
Contingent consideration
|
23,719 | 2,107 | — | ||||||||||||||
Additional purchase consideration
|
283 | — | (407) |
Plan Category |
Number of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) |
Weighted-Average
Exercise Price of Outstanding Options, Warrants and Rights (b) |
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected in
Column (a))
(c) (2)
|
|||||||||||||||||
Equity compensation plans approved by security holders (1)
|
3,993 | $36.75 | 4,064 | |||||||||||||||||
Equity compensation plans not approved by security holders
|
— | — | — | |||||||||||||||||
Total | 3,993 | $36.75 | 4,064 |
Page | |||||
Exhibit | Description | |||||||
2.1 | — |
Amended and Restated Agreement of Merger and Plan of Reorganization, dated as of March 22, 1993, by and among HEICO Corporation, HEICO Industries, Corp. and New HEICO, Inc. is incorporated by reference to Exhibit 2.1 to the Registrant’s Registration Statement on Form S-4 (Registration No. 33-57624) Amendment No. 1 filed on March 19, 1993. *
|
||||||
3.1 | — | Articles of Incorporation of the Registrant are incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-4 (Registration No. 33-57624) Amendment No. 1 filed on March 19, 1993. * | ||||||
3.2 | — | Articles of Amendment of the Articles of Incorporation of the Registrant, dated April 27, 1993, are incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form 8-B dated April 29, 1993. * | ||||||
3.3 | — | Articles of Amendment of the Articles of Incorporation of the Registrant, dated November 3, 1993, are incorporated by reference to Exhibit 3.3 to the Form 10-K for the year ended October 31, 1993. * | ||||||
3.4 | — | |||||||
3.5 | — | |||||||
3.6 | — | |||||||
3.7 | — |
|
||||||
3.8 | — | |||||||
4.1 | — | |||||||
10.1# | — | |||||||
10.2# | — | |||||||
10.3# | — | Non-Qualified Stock Option Agreement for Directors, Officers and Employees is incorporated by reference to Exhibit 10.8 to the Form 10-K for the year ended October 31, 1985. * |
Exhibit | Description | |||||||
10.4# | — | |||||||
10.5# | — | |||||||
10.6# | — | |||||||
10.7# | — | HEICO Corporation Directors’ Retirement Plan, as amended, dated as of May 31, 1991, is incorporated by reference to Exhibit 10.19 to the Form 10-K for the year ended October 31, 1992. * | ||||||
10.8# | — | |||||||
10.9# | — | |||||||
10.10# | — | |||||||
10.11 | — | |||||||
10.12 | — | |||||||
10.13 | — | |||||||
Exhibit | Description | |||||||
21 | — | |||||||
23 | — | |||||||
31.1 | — | |||||||
31.2 | — | |||||||
32.1 | — | |||||||
32.2 | — | |||||||
101.INS | — | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document. ** | ||||||
101.SCH | — | Inline XBRL Taxonomy Extension Schema Document. ** | ||||||
101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document. ** | ||||||
101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document. ** | ||||||
101.LAB | — | Inline XBRL Taxonomy Extension Labels Linkbase Document. ** | ||||||
101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document. ** | ||||||
104 | — | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). ** | ||||||
# | Management contract or compensatory plan or arrangement required to be filed as an exhibit. | ||||
* | Previously filed. | ||||
** | Filed herewith. | ||||
*** | Furnished herewith. |
Year ended October 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Allowance for doubtful accounts (in thousands): | ||||||||||||||||||||
Allowance as of beginning of year | $3,666 | $3,258 | $3,006 | |||||||||||||||||
Additions charged to costs and expenses (a)
|
9,834 | 638 | 492 | |||||||||||||||||
Additions charged (credited) to other accounts (b)
|
128 | 10 | (13) | |||||||||||||||||
Deductions (c)
|
(890) | (240) | (227) | |||||||||||||||||
Allowance as of end of year | $12,738 | $3,666 | $3,258 |
Year ended October 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Inventory valuation reserves (in thousands): | ||||||||||||||||||||
Reserves as of beginning of year | $103,821 | $95,391 | $92,148 | |||||||||||||||||
Additions charged to costs and expenses (a)
|
27,030 | 10,148 | 9,227 | |||||||||||||||||
(Deductions) additions charged to other accounts (b)
|
(63) | 1,885 | 1,270 | |||||||||||||||||
Deductions (c)
|
(3,855) | (3,603) | (7,254) | |||||||||||||||||
Reserves as of end of year | $126,933 | $103,821 | $95,391 |
HEICO CORPORATION | |||||||||||
Date: | December 23, 2020 | By: | /s/ CARLOS L. MACAU, JR. | ||||||||
Carlos L. Macau, Jr.
Executive Vice President - Chief Financial Officer and Treasurer (Principal Financial Officer) |
|||||||||||
By: | /s/ STEVEN M. WALKER | ||||||||||
Steven M. Walker
Chief Accounting Officer and Assistant Treasurer (Principal Accounting Officer) |
Name | Position(s) | Date | ||||||||||||
/s/ LAURANS A. MENDELSON |
Chairman of the Board; Chief Executive Officer; and Director
(Principal Executive Officer) |
December 23, 2020 | ||||||||||||
Laurans A. Mendelson | ||||||||||||||
/s/ THOMAS M. CULLIGAN | Director | December 23, 2020 | ||||||||||||
Thomas M. Culligan | ||||||||||||||
/s/ ADOLFO HENRIQUES | Director | December 23, 2020 | ||||||||||||
Adolfo Henriques | ||||||||||||||
/s/ MARK H. HILDEBRANDT | Director | December 23, 2020 | ||||||||||||
Mark H. Hildebrandt | ||||||||||||||
/s/ ERIC A. MENDELSON | Co-President and Director | December 23, 2020 | ||||||||||||
Eric A. Mendelson | ||||||||||||||
/s/ VICTOR H. MENDELSON | Co-President and Director | December 23, 2020 | ||||||||||||
Victor H. Mendelson | ||||||||||||||
/s/ JULIE NEITZEL | Director | December 23, 2020 | ||||||||||||
Julie Neitzel | ||||||||||||||
/s/ ALAN SCHRIESHEIM | Director | December 23, 2020 | ||||||||||||
Alan Schriesheim | ||||||||||||||
/s/ FRANK J. SCHWITTER | Director | December 23, 2020 | ||||||||||||
Frank J. Schwitter |
State or Other | |||||
Name | Jurisdiction of Incorporation | ||||
HEICO Aerospace Holdings Corp. | Florida | ||||
HEICO Aerospace Corporation | Florida | ||||
Jet Avion Corporation | Florida | ||||
LPI Industries Corporation | Florida | ||||
Parts Advantage, LLC | Delaware | ||||
HNW Building Corp. | Florida | ||||
HNW2 Building Corp. | Florida | ||||
McClain International, Inc. | Georgia | ||||
McClain Property Corp. | Florida | ||||
Rogers-Dierks, Inc. | Florida | ||||
Turbine Kinetics, Inc. | Florida | ||||
ATK Acquisition Corp. | Florida | ||||
AD HEICO Acquisition Corp. | Florida | ||||
AeroDesign, Inc. | Tennessee | ||||
Battery Shop, L.L.C. | Tennessee | ||||
Aviation Facilities, Inc. | Florida | ||||
JA Engineering I Corp. | Florida | ||||
JA Engineering II Corp. | Florida | ||||
Jetavi Engineering Private Limited | India | ||||
DEC Technologies, Inc. | Florida | ||||
Meridian Industrial, Inc. | Florida | ||||
Dynatech Acquisition Corp. | Florida | ||||
HEICO Parts Group, Inc. | Florida | ||||
State or Other | |||||
Name | Jurisdiction of Incorporation | ||||
HEICO Flight Support Corp. | Florida | ||||
HEICO Repair, LLC | Florida | ||||
Aircraft Technology, Inc. | Florida | ||||
Northwings Accessories Corp. | Florida | ||||
Aviation Engineered Services Corp. | Florida | ||||
HB Fuel Systems LLC | Florida | ||||
HEICO Repair Group Aerostructures, LLC | Florida | ||||
Future Aviation, Inc. | Florida | ||||
Inertial Airline Services, Inc. | Ohio | ||||
HEICO Aerospace Parts Corp. | Florida | ||||
Niacc-Avitech Technologies Inc. | Florida | ||||
Prime Air, LLC | Florida | ||||
Avisource Limited | United Kingdom | ||||
Prime Air Europe Limited | United Kingdom | ||||
Sunshine Avionics LLC | Florida | ||||
CSI Aerospace, Inc. | Florida | ||||
Action Research Corporation | Florida | ||||
Reinhold Holdings, Inc. | Delaware | ||||
Reinhold Industries, Inc. | Delaware | ||||
Carbon by Design Corporation | Florida | ||||
Carbon by Design LLC | California | ||||
Optical Display Engineering, Inc. | Florida | ||||
Thermal Structures, Inc. | California | ||||
Thermal Energy Products, Inc. | California | ||||
Jetseal, Inc. | Delaware | ||||
Seal Dynamics LLC | Florida | ||||
Seal Dynamics LLC (Singapore Branch) | Singapore | ||||
Seal Dynamics Limited | United Kingdom | ||||
Seal Q Corp. | Florida | ||||
Blue Aerospace LLC | Florida | ||||
State or Other | |||||
Name | Jurisdiction of Incorporation | ||||
HEICO International Holdings B.V. | Netherlands | ||||
Aeroworks International Holding B.V. | Netherlands | ||||
Aeroworks Europe B.V. | Netherlands | ||||
Aeroworks (Lao) Co., Ltd. | Laos | ||||
DIRI Co., Ltd. | Laos | ||||
Aeroworks Lao II Co., Ltd. | Laos | ||||
Aeroworks Special Products B.V. | Netherlands | ||||
Aeroworks (Asia) Ltd. | Thailand | ||||
Aeroworks Manufacturing Services (Asia) Ltd. | Thailand | ||||
Aeroworks Composites B.V. | Netherlands | ||||
Aeroworks Composites (Asia) Ltd. | Thailand | ||||
HFSC III Corp. | Florida | ||||
Harter Aerospace, LLC | Florida | ||||
Aerospace & Commercial Technologies, LLC | Florida | ||||
Astroseal Products Mfg. Corporation | Connecticut | ||||
Astro Property, LLC | Connecticut | ||||
HFSC IV Corp. | Florida | ||||
LLP Enterprises, LLC | Florida | ||||
Air Cost Control US, LLC | Florida | ||||
Air Cost Control PTE, Ltd. | Singapore | ||||
A2C Air Cost Control SAS | France | ||||
Air Cost Control Germany GmbH | Germany | ||||
60 Sequin LLC | Connecticut | ||||
HFSC V, LLC | Florida | ||||
Decavo LLC | Oregon | ||||
HFSC VI, LLC | Florida | ||||
HFSC VII, LLC | Florida | ||||
Rocky Mountain Hydrostatics, LLC | Colorado |
State or Other | |||||
Name | Jurisdiction of Incorporation | ||||
HEICO Electronic Technologies Corp. | Florida | ||||
Radiant Power Corp. | Florida | ||||
Radiant-Seacom Repairs Corp. | Florida | ||||
HETC IV, LLC | Florida | ||||
Radiant Power IDC, LLC | Florida | ||||
Interface Displays & Controls, Inc. | California | ||||
Leader Tech, Inc. | Florida | ||||
FerriShield, Inc. | Pennsylvania | ||||
Santa Barbara Infrared, Inc. | California | ||||
IRCameras LLC | Florida | ||||
Sensor Technology Engineering, LLC | Florida | ||||
Analog Modules, Inc. | Florida | ||||
Sierra Microwave Technology, LLC | Delaware | ||||
Connectronics Corp. | Florida | ||||
Lumina Power, Inc. | Florida | ||||
De-Icing Investment Holdings Corp. | Florida | ||||
HVT Group, Inc. | Delaware | ||||
Dielectric Sciences, Inc. | Massachusetts | ||||
Essex X-Ray & Medical Equipment LTD | United Kingdom | ||||
High Voltage Technology Limited | United Kingdom | ||||
Engineering Design Team, Inc. | Oregon | ||||
EMD Acquisition Corp. | Florida | ||||
EMD Technologies Incorporated | Canada | ||||
VPT, Inc. | Virginia | ||||
SI-REL, Inc. | Delaware | ||||
SST Components, Inc. | Delaware | ||||
VPT GaN, LLC | Virginia | ||||
Dukane Seacom, Inc. | Florida | ||||
AeroELT, LLC | Florida | ||||
dB Control Corp. | Florida | ||||
TTT-Cubed, Inc. | California | ||||
3D Acquisition Corp. | Florida | ||||
3D Plus SAS | France | ||||
Bernier Connect SAS | France | ||||
Moulages Plastiques Industriels de L'essonne SARL | France | ||||
3D Plus U.S.A., Inc. | Delaware | ||||
State or Other | |||||
Name | Jurisdiction of Incorporation | ||||
Switchcraft Holdco, Inc. | Delaware | ||||
Switchcraft, Inc. | Illinois | ||||
Conxall Corporation | Illinois | ||||
Switchcraft Far East Company, Ltd. | Republic of South Korea | ||||
Ramona Research, Inc. | California | ||||
Lucix Corporation | California | ||||
Midwest Microwave Solutions, Inc. | Iowa | ||||
Robertson Fuel Systems, L.L.C. | Arizona | ||||
AeroAntenna Technology, Inc. | California | ||||
HETC I, LLC | Florida | ||||
Research Electronics International, L.L.C. | Tennessee | ||||
Specialty Silicone Products, Inc. | New York | ||||
3 McCrea Property Company, LLC | Florida | ||||
HETC II Corp. | Florida | ||||
Apex Holding Corp. | Delaware | ||||
Apex Microtechnology, Inc. | Arizona | ||||
HETC III, LLC | Florida | ||||
Solid Sealing Technology, Inc. | New York | ||||
Quell Corporation | Colorado | ||||
HETC V, LLC | Florida | ||||
TSID Holdings, LLC | Florida | ||||
Transformational Security, LLC | Maryland | ||||
Intelligent Devices, LLC | Delaware | ||||
1260041 B.C. LTD. | Canada | ||||
Connect Tech Inc. | Canada | ||||
HEICO East Corporation | Florida | ||||
16-1741 Property, Inc. | Florida | ||||
Bay Equipment Corp. | Delaware |
Date: | December 23, 2020 | /s/ LAURANS A. MENDELSON | ||||||
Laurans A. Mendelson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | December 23, 2020 | /s/ CARLOS L. MACAU, JR. | ||||||
Carlos L. Macau, Jr. | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | December 23, 2020 | /s/ LAURANS A. MENDELSON | ||||||
Laurans A. Mendelson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | December 23, 2020 | /s/ CARLOS L. MACAU, JR. | ||||||
Carlos L. Macau, Jr. | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |