☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the quarterly period ended January 31, 2022 | ||||||||
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 | 54,481,570 | shares | ||||||
Class A Common Stock, $.01 par value | 81,393,925 | shares |
Page | |||||||||||
Part I. | Financial Information | ||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Part II. | Other Information | ||||||||||
Item 6. | |||||||||||
January 31, 2022 | October 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $124,818 | $108,298 | ||||||||||||
Accounts receivable, net | 227,828 | 244,919 | ||||||||||||
Contract assets | 82,238 | 80,073 | ||||||||||||
Inventories, net | 503,506 | 478,050 | ||||||||||||
Prepaid expenses and other current assets | 36,172 | 26,045 | ||||||||||||
Total current assets | 974,562 | 937,385 | ||||||||||||
Property, plant and equipment, net | 194,604 | 193,638 | ||||||||||||
Goodwill | 1,446,250 | 1,450,395 | ||||||||||||
Intangible assets, net | 566,090 | 582,307 | ||||||||||||
Other assets | 332,389 | 334,682 | ||||||||||||
Total assets | $3,513,895 | $3,498,407 | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Current maturities of long-term debt | $1,484 | $1,515 | ||||||||||||
Trade accounts payable | 89,005 | 85,544 | ||||||||||||
Accrued expenses and other current liabilities | 181,361 | 206,857 | ||||||||||||
Income taxes payable | 2,030 | 964 | ||||||||||||
Total current liabilities | 273,880 | 294,880 | ||||||||||||
Long-term debt, net of current maturities | 235,650 | 234,983 | ||||||||||||
Deferred income taxes | 40,243 | 40,761 | ||||||||||||
Other long-term liabilities | 363,777 | 378,257 | ||||||||||||
Total liabilities | 913,550 | 948,881 | ||||||||||||
Commitments and contingencies (Note 10) | ||||||||||||||
Redeemable noncontrolling interests (Note 2) | 258,289 | 252,587 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred Stock, $.01 par value per share; 10,000 shares authorized; none issued | — | — | ||||||||||||
Common Stock, $.01 par value per share; 150,000 shares authorized; 54,482 and 54,264 shares issued and outstanding | 545 | 543 | ||||||||||||
Class A Common Stock, $.01 par value per share; 150,000 shares authorized; 81,394 and 81,224 shares issued and outstanding | 814 | 812 | ||||||||||||
Capital in excess of par value | 302,104 | 320,747 | ||||||||||||
Deferred compensation obligation | 5,297 | 5,297 | ||||||||||||
HEICO stock held by irrevocable trust | (5,297) | (5,297) | ||||||||||||
Accumulated other comprehensive loss | (16,962) | (8,552) | ||||||||||||
Retained earnings | 2,018,990 | 1,949,521 | ||||||||||||
Total HEICO shareholders’ equity | 2,305,491 | 2,263,071 | ||||||||||||
Noncontrolling interests | 36,565 | 33,868 | ||||||||||||
Total shareholders’ equity | 2,342,056 | 2,296,939 | ||||||||||||
Total liabilities and equity | $3,513,895 | $3,498,407 |
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net sales | $490,343 | $417,902 | ||||||||||||
Operating costs and expenses: | ||||||||||||||
Cost of sales | 300,133 | 259,468 | ||||||||||||
Selling, general and administrative expenses | 91,388 | 78,149 | ||||||||||||
Total operating costs and expenses | 391,521 | 337,617 | ||||||||||||
Operating income | 98,822 | 80,285 | ||||||||||||
Interest expense | (796) | (2,448) | ||||||||||||
Other income | 226 | 711 | ||||||||||||
Income before income taxes and noncontrolling interests | 98,252 | 78,548 | ||||||||||||
Income tax expense | 4,000 | 2,300 | ||||||||||||
Net income from consolidated operations | 94,252 | 76,248 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 7,331 | 5,652 | ||||||||||||
Net income attributable to HEICO | $86,921 | $70,596 | ||||||||||||
Net income per share attributable to HEICO shareholders: | ||||||||||||||
Basic | $.64 | $.52 | ||||||||||||
Diluted | $.63 | $.51 | ||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 135,635 | 135,210 | ||||||||||||
Diluted | 137,966 | 137,742 | ||||||||||||
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net income from consolidated operations | $94,252 | $76,248 | ||||||||||||
Other comprehensive (loss) income: | ||||||||||||||
Foreign currency translation adjustments | (8,751) | 11,648 | ||||||||||||
Amortization of unrealized loss on defined benefit pension plan, net of tax | 11 | 34 | ||||||||||||
Total other comprehensive (loss) income | (8,740) | 11,682 | ||||||||||||
Comprehensive income from consolidated operations | 85,512 | 87,930 | ||||||||||||
Net income attributable to noncontrolling interests | 7,331 | 5,652 | ||||||||||||
Foreign currency translation adjustments attributable to noncontrolling interests | (330) | 404 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | 7,001 | 6,056 | ||||||||||||
Comprehensive income attributable to HEICO | $78,511 | $81,874 |
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, 2021 | $252,587 | $543 | $812 | $320,747 | $5,297 | ($5,297) | ($8,552) | $1,949,521 | $33,868 | $2,296,939 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 4,141 | — | — | — | — | — | (8,410) | 86,921 | 2,860 | 81,371 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($.09 per share) | — | — | — | — | — | — | — | (12,227) | — | (12,227) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to HEICO Savings and Investment Plan | — | — | — | 1,670 | — | — | — | — | — | 1,670 | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 3,614 | — | — | — | — | — | 3,614 | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock option exercises | — | 3 | 3 | 763 | — | — | — | — | — | 769 | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock related to stock option exercises | — | (1) | (1) | (23,621) | — | — | — | — | — | (23,623) | |||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed related to acquisitions | 172 | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (5,883) | — | — | — | — | — | — | — | (163) | (163) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 5,225 | — | — | — | — | — | — | (5,225) | — | (5,225) | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,047 | — | — | (1,069) | — | — | — | — | — | (1,069) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 31, 2022 | $258,289 | $545 | $814 | $302,104 | $5,297 | ($5,297) | ($16,962) | $2,018,990 | $36,565 | $2,342,056 |
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 Income (Loss) | Retained Earnings | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of October 31, 2020 | $221,208 | $542 | $809 | $299,930 | $4,886 | ($4,886) | ($9,149) | $1,688,045 | $30,430 | $2,010,607 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 4,797 | — | — | — | — | — | 11,278 | 70,596 | 1,259 | 83,133 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($.08 per share) | — | — | — | — | — | — | — | (10,818) | — | (10,818) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 2,229 | — | — | — | — | — | 2,229 | |||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock option exercises | — | — | 2 | 2,448 | — | — | — | — | — | 2,450 | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock related to stock option exercises | — | — | — | (3,571) | — | — | — | — | — | (3,571) | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (7,378) | — | — | — | — | — | — | — | (366) | (366) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests | 3,576 | — | — | — | — | — | — | (3,576) | — | (3,576) | |||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation | — | — | — | — | (109) | 109 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 22 | — | — | 71 | — | — | — | — | — | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 31, 2021 | $222,225 | $542 | $811 | $301,107 | $4,777 | ($4,777) | $2,129 | $1,744,247 | $31,323 | $2,080,159 |
Three months ended January 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities: | |||||||||||
Net income from consolidated operations | $94,252 | $76,248 | |||||||||
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 23,222 | 23,003 | |||||||||
Share-based compensation expense | 3,614 | 2,229 | |||||||||
Employer contributions to HEICO Savings and Investment Plan | 3,165 | 2,840 | |||||||||
Deferred income tax benefit | (322) | (8,345) | |||||||||
(Decrease) increase in accrued contingent consideration, net | (114) | 432 | |||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Decrease in accounts receivable | 16,191 | 9,234 | |||||||||
(Increase) decrease in contract assets | (1,780) | 2,623 | |||||||||
(Increase) decrease in inventories | (26,967) | 2,602 | |||||||||
Increase in prepaid expenses and other current assets | (9,005) | (6,614) | |||||||||
Increase in trade accounts payable | 2,469 | 1,641 | |||||||||
Decrease in accrued expenses and other current liabilities | (38,725) | (19,241) | |||||||||
(Decrease) increase in income taxes payable | (72) | 6,627 | |||||||||
Net changes in other long-term liabilities and assets related to HEICO Leadership Compensation Plan | 11,603 | 12,022 | |||||||||
Other | 449 | 1,898 | |||||||||
Net cash provided by operating activities | 77,980 | 107,199 | |||||||||
Investing Activities: | |||||||||||
Investments related to HEICO Leadership Compensation Plan | (10,100) | (10,400) | |||||||||
Capital expenditures | (8,691) | (15,509) | |||||||||
Acquisitions, net of cash acquired | — | (345) | |||||||||
Other | (1,168) | 983 | |||||||||
Net cash used in investing activities | (19,959) | (25,271) | |||||||||
Financing Activities: | |||||||||||
Payments on revolving credit facility | (25,000) | (70,000) | |||||||||
Borrowings on revolving credit facility | 26,000 | — | |||||||||
Redemptions of common stock related to stock option exercises | (23,623) | (3,571) | |||||||||
Cash dividends paid | (12,227) | (10,818) | |||||||||
Distributions to noncontrolling interests | (6,046) | (7,744) | |||||||||
Revolving credit facility issuance costs | — | (1,468) | |||||||||
Proceeds from stock option exercises | 769 | 2,450 | |||||||||
Other | 207 | (256) | |||||||||
Net cash used in financing activities | (39,920) | (91,407) | |||||||||
Effect of exchange rate changes on cash | (1,581) | 2,030 | |||||||||
Net increase (decrease) in cash and cash equivalents | 16,520 | (7,449) | |||||||||
Cash and cash equivalents at beginning of year | 108,298 | 406,852 | |||||||||
Cash and cash equivalents at end of period | $124,818 | $399,403 |
(in thousands) | January 31, 2022 | October 31, 2021 | ||||||||||||
Accounts receivable | $239,621 | $255,793 | ||||||||||||
Less: Allowance for doubtful accounts | (11,793) | (10,874) | ||||||||||||
Accounts receivable, net | $227,828 | $244,919 |
(in thousands) | January 31, 2022 | October 31, 2021 | ||||||||||||
Finished products | $253,249 | $238,867 | ||||||||||||
Work in process | 47,057 | 44,887 | ||||||||||||
Materials, parts, assemblies and supplies | 203,200 | 194,296 | ||||||||||||
Inventories, net of valuation reserves | $503,506 | $478,050 |
(in thousands) | January 31, 2022 | October 31, 2021 | ||||||||||||
Land | $11,267 | $11,363 | ||||||||||||
Buildings and improvements | 133,547 | 134,150 | ||||||||||||
Machinery, equipment and tooling | 299,569 | 297,297 | ||||||||||||
Construction in progress | 12,031 | 7,784 | ||||||||||||
456,414 | 450,594 | |||||||||||||
Less: Accumulated depreciation and amortization | (261,810) | (256,956) | ||||||||||||
Property, plant and equipment, net | $194,604 | $193,638 |
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
R&D expenses | $18,396 | $16,181 |
January 31, 2022 | October 31, 2021 | |||||||||||||
Redeemable at fair value | $223,845 | $217,416 | ||||||||||||
Redeemable based on a multiple of future earnings | 34,444 | 35,171 | ||||||||||||
Redeemable noncontrolling interests | $258,289 | $252,587 |
Foreign Currency Translation | Defined Benefit Pension Plan | Accumulated Other Comprehensive Loss | ||||||||||||||||||
Balances as of October 31, 2021 | ($6,989) | ($1,563) | ($8,552) | |||||||||||||||||
Unrealized loss | (8,421) | — | (8,421) | |||||||||||||||||
Amortization of unrealized loss | — | 11 | 11 | |||||||||||||||||
Balances as of January 31, 2022 | ($15,410) | ($1,552) | ($16,962) |
Segment | Consolidated Totals | |||||||||||||||||||
FSG | ETG | |||||||||||||||||||
Balances as of October 31, 2021 | $468,288 | $982,107 | $1,450,395 | |||||||||||||||||
Foreign currency translation adjustments | (1,672) | (2,056) | (3,728) | |||||||||||||||||
Adjustments to goodwill | (284) | (133) | (417) | |||||||||||||||||
Balances as of January 31, 2022 | $466,332 | $979,918 | $1,446,250 |
As of January 31, 2022 | As of October 31, 2021 | |||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||
Amortizing Assets: | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $463,387 | ($230,444) | $232,943 | $464,506 | ($221,098) | $243,408 | ||||||||||||||||||||||||||||||||
Intellectual property | 254,805 | (99,094) | 155,711 | 255,011 | (94,313) | 160,698 | ||||||||||||||||||||||||||||||||
Licenses | 6,559 | (5,163) | 1,396 | 6,559 | (5,072) | 1,487 | ||||||||||||||||||||||||||||||||
Patents | 1,129 | (799) | 330 | 1,110 | (793) | 317 | ||||||||||||||||||||||||||||||||
Non-compete agreements | 718 | (718) | — | 722 | (722) | — | ||||||||||||||||||||||||||||||||
Trade names | 450 | (267) | 183 | 450 | (257) | 193 | ||||||||||||||||||||||||||||||||
727,048 | (336,485) | 390,563 | 728,358 | (322,255) | 406,103 | |||||||||||||||||||||||||||||||||
Non-Amortizing Assets: | ||||||||||||||||||||||||||||||||||||||
Trade names | 175,527 | — | 175,527 | 176,204 | — | 176,204 | ||||||||||||||||||||||||||||||||
$902,575 | ($336,485) | $566,090 | $904,562 | ($322,255) | $582,307 |
January 31, 2022 | October 31, 2021 | |||||||||||||
Borrowings under revolving credit facility | $226,000 | $225,000 | ||||||||||||
Finance leases and note payable | 11,134 | 11,498 | ||||||||||||
237,134 | 236,498 | |||||||||||||
Less: Current maturities of long-term debt | (1,484) | (1,515) | ||||||||||||
$235,650 | $234,983 |
January 31, 2022 | October 31, 2021 | Change | |||||||||||||||
Contract assets | $82,238 | $80,073 | $2,165 | ||||||||||||||
Contract liabilities | 42,938 | 32,738 | 10,200 | ||||||||||||||
Net contract assets | $39,300 | $47,335 | ($8,035) |
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Flight Support Group: | ||||||||||||||
Aftermarket replacement parts (1) | $150,901 | $118,434 | ||||||||||||
Repair and overhaul parts and services (2) | 62,487 | 42,412 | ||||||||||||
Specialty products (3) | 59,293 | 38,488 | ||||||||||||
Total net sales | 272,681 | 199,334 | ||||||||||||
Electronic Technologies Group: | ||||||||||||||
Electronic component parts primarily for defense, space and aerospace equipment (4) | 157,468 | 167,089 | ||||||||||||
Electronic component parts for equipment in various other industries (5) | 64,868 | 56,461 | ||||||||||||
Total net sales | 222,336 | 223,550 | ||||||||||||
Intersegment sales | (4,674) | (4,982) | ||||||||||||
Total consolidated net sales | $490,343 | $417,902 | ||||||||||||
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Flight Support Group: | ||||||||||||||
Aerospace | $202,405 | $135,056 | ||||||||||||
Defense and Space | 58,655 | 54,044 | ||||||||||||
Other (1) | 11,621 | 10,234 | ||||||||||||
Total net sales | 272,681 | 199,334 | ||||||||||||
Electronic Technologies Group: | ||||||||||||||
Defense and Space | 131,447 | 142,092 | ||||||||||||
Other (2) | 73,363 | 63,907 | ||||||||||||
Aerospace | 17,526 | 17,551 | ||||||||||||
Total net sales | 222,336 | 223,550 | ||||||||||||
Intersegment sales | (4,674) | (4,982) | ||||||||||||
Total consolidated net sales | $490,343 | $417,902 | ||||||||||||
As of January 31, 2022 | ||||||||||||||||||||||||||
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 | $— | $235,693 | $— | $235,693 | ||||||||||||||||||||||
Money market funds | 5,148 | — | — | 5,148 | ||||||||||||||||||||||
Total assets | $5,148 | $235,693 | $— | $240,841 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Contingent consideration | $— | $— | $61,853 | $61,853 |
As of October 31, 2021 | ||||||||||||||||||||||||||
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 | $— | $245,580 | $— | $245,580 | ||||||||||||||||||||||
Money market funds | 4 | — | — | 4 | ||||||||||||||||||||||
Total assets | $4 | $245,580 | $— | $245,584 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Contingent consideration | $— | $— | $62,286 | $62,286 |
Unobservable | Weighted | |||||||||||||||||||||||||
Acquisition Date | Fair Value | Input | Range | Average (1) | ||||||||||||||||||||||
8-4-2021 | $18,213 | Compound annual revenue growth rate | 0% - 9% | 7% | ||||||||||||||||||||||
Discount rate | 5.5% - 5.7% | 5.6% | ||||||||||||||||||||||||
8-18-2020 | 11,711 | Compound annual revenue growth rate | 6% - 17% | 10% | ||||||||||||||||||||||
Discount rate | 4.9% - 5.5% | 5.1% | ||||||||||||||||||||||||
8-11-2020 | 13,309 | Compound annual revenue growth rate | 2% - 15% | 10% | ||||||||||||||||||||||
Discount rate | 5.5% - 5.5% | 5.5% | ||||||||||||||||||||||||
9-15-2017 | 18,620 | Compound annual revenue growth rate | (1%) - 7% | 5% | ||||||||||||||||||||||
Discount rate | 4.3% - 4.3% | 4.3% | ||||||||||||||||||||||||
Liabilities | ||||||||
Balance as of October 31, 2021 | $62,286 | |||||||
Decrease in accrued contingent consideration, net | (114) | |||||||
Foreign currency transaction adjustments | (319) | |||||||
Balance as of January 31, 2022 | $61,853 | |||||||
Included in the accompanying Condensed Consolidated Balance Sheet under the following captions: | ||||||||
Accrued expenses and other current liabilities | $7,655 | |||||||
Other long-term liabilities | 54,198 | |||||||
$61,853 | ||||||||
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Numerator: | ||||||||||||||
Net income attributable to HEICO | $86,921 | $70,596 | ||||||||||||
Denominator: | ||||||||||||||
Weighted average common shares outstanding - basic | 135,635 | 135,210 | ||||||||||||
Effect of dilutive stock options | 2,331 | 2,532 | ||||||||||||
Weighted average common shares outstanding - diluted | 137,966 | 137,742 | ||||||||||||
Net income per share attributable to HEICO shareholders: | ||||||||||||||
Basic | $.64 | $.52 | ||||||||||||
Diluted | $.63 | $.51 | ||||||||||||
Anti-dilutive stock options excluded | 728 | 28 |
Other, Primarily Corporate and Intersegment (1) | Consolidated Totals | |||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||||
FSG | ETG | |||||||||||||||||||||||||
Three months ended January 31, 2022: | ||||||||||||||||||||||||||
Net sales | $272,681 | $222,336 | ($4,674) | $490,343 | ||||||||||||||||||||||
Depreciation | 3,718 | 3,366 | 246 | 7,330 | ||||||||||||||||||||||
Amortization | 5,513 | 10,092 | 287 | 15,892 | ||||||||||||||||||||||
Operating income | 52,376 | 55,588 | (9,142) | 98,822 | ||||||||||||||||||||||
Capital expenditures | 3,582 | 5,070 | 39 | 8,691 | ||||||||||||||||||||||
Three months ended January 31, 2021: | ||||||||||||||||||||||||||
Net sales | $199,334 | $223,550 | ($4,982) | $417,902 | ||||||||||||||||||||||
Depreciation | 3,450 | 3,059 | 246 | 6,755 | ||||||||||||||||||||||
Amortization | 5,136 | 10,838 | 274 | 16,248 | ||||||||||||||||||||||
Operating income | 25,822 | 60,128 | (5,665) | 80,285 | ||||||||||||||||||||||
Capital expenditures | 1,988 | 13,521 | — | 15,509 | ||||||||||||||||||||||
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Balances as of beginning of fiscal year | $3,379 | $3,015 | ||||||||||||
Accruals for warranties | 641 | 175 | ||||||||||||
Warranty claims settled | (541) | (323) | ||||||||||||
Balances as of January 31 | $3,479 | $2,867 |
Three months ended January 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net sales | $490,343 | $417,902 | ||||||||||||
Cost of sales | 300,133 | 259,468 | ||||||||||||
Selling, general and administrative expenses | 91,388 | 78,149 | ||||||||||||
Total operating costs and expenses | 391,521 | 337,617 | ||||||||||||
Operating income | $98,822 | $80,285 | ||||||||||||
Net sales by segment: | ||||||||||||||
Flight Support Group | $272,681 | $199,334 | ||||||||||||
Electronic Technologies Group | 222,336 | 223,550 | ||||||||||||
Intersegment sales | (4,674) | (4,982) | ||||||||||||
$490,343 | $417,902 | |||||||||||||
Operating income by segment: | ||||||||||||||
Flight Support Group | $52,376 | $25,822 | ||||||||||||
Electronic Technologies Group | 55,588 | 60,128 | ||||||||||||
Other, primarily corporate | (9,142) | (5,665) | ||||||||||||
$98,822 | $80,285 | |||||||||||||
Net sales | 100.0 | % | 100.0 | % | ||||||||||
Gross profit | 38.8 | % | 37.9 | % | ||||||||||
Selling, general and administrative expenses | 18.6 | % | 18.7 | % | ||||||||||
Operating income | 20.2 | % | 19.2 | % | ||||||||||
Interest expense | (.2 | %) | (.6 | %) | ||||||||||
Other income | — | % | .2 | % | ||||||||||
Income tax expense | .8 | % | .6 | % | ||||||||||
Net income attributable to noncontrolling interests | 1.5 | % | 1.4 | % | ||||||||||
Net income attributable to HEICO | 17.7 | % | 16.9 | % | ||||||||||
Exhibit | Description | |||||||
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). * | |||||||
HEICO CORPORATION | |||||||||||
Date: | February 25, 2022 | 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) |
Date: | February 25, 2022 | /s/ LAURANS A. MENDELSON | ||||||
Laurans A. Mendelson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | February 25, 2022 | /s/ CARLOS L. MACAU, JR. | ||||||
Carlos L. Macau, Jr. | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | February 25, 2022 | /s/ LAURANS A. MENDELSON | ||||||
Laurans A. Mendelson | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | February 25, 2022 | /s/ CARLOS L. MACAU, JR. | ||||||
Carlos L. Macau, Jr. | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |