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     249  0 Kommentare HEICO Corporation Reports Record Net Sales (Up 39%), Operating Income (Up 33%) and Net Income (Up 17%) for the Second Quarter of Fiscal 2024

    HOLLYWOOD, FL and MIAMI, FL / ACCESSWIRE / May 28, 2024 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of 17% to a record $123.1 million, or $.88 per diluted share, in the second quarter of fiscal 2024, up from …

    HOLLYWOOD, FL and MIAMI, FL / ACCESSWIRE / May 28, 2024 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of 17% to a record $123.1 million, or $.88 per diluted share, in the second quarter of fiscal 2024, up from $105.1 million, or $.76 per diluted share, in the second quarter of fiscal 2023. Net income increased 20% to a record $237.8 million, or $1.70 per diluted share, in the first six months of fiscal 2024, up from $198.1 million, or $1.43 per diluted share, in the first six months of fiscal 2023.

    Net sales increased 39% to a record $955.4 million in the second quarter of fiscal 2024, up from $687.8 million in the second quarter of fiscal 2023. Operating income increased 33% to a record $209.2 million in the second quarter of fiscal 2024, up from $157.1 million in the second quarter of fiscal 2023. The Company's consolidated operating margin was 21.9% in the second quarter of fiscal 2024, as compared to 22.8% in the second quarter of fiscal 2023.

    Net sales increased 41% to a record $1,851.8 million in the first six months of fiscal 2024, up from $1,308.8 million in the first six months of fiscal 2023. Operating income increased 36% to a record $389.4 million in the first six months of fiscal 2024, up from $286.5 million in the first six months of fiscal 2023. The Company's consolidated operating margin was 21.0% in the first six months of fiscal 2024, as compared to 21.9% in the first six months of fiscal 2023.

    Our commercial aerospace sales growth has resulted in fifteen consecutive quarters of sequential growth in net sales at the Flight Support Group.

    EBITDA increased 35% to $252.4 million in the second quarter of fiscal 2024, up from $187.2 million in the second quarter of fiscal 2023. EBITDA increased 38% to $476.8 million in the first six months of fiscal 2024, up from $344.3 million in the first six months of fiscal 2023. See our reconciliation of net income attributable to HEICO to EBITDA at the end of this press release.

    Consolidated Results

    Laurans A. Mendelson, HEICO's Chairman and CEO, commented on the Company's second quarter results stating, "We are very pleased to report strong record quarterly consolidated net sales driven by record quarterly operating results at the Flight Support Group and improved results at the Electronic Technologies Group, as well as strong contributions from our fiscal 2023 acquisitions. These results reflect 12% organic growth in the Flight Support Group's net sales principally arising from increased demand for its commercial aerospace products and services and 4% organic growth in the Electronic Technologies Group reflecting increased net sales of its defense and aerospace products.

    Lesen Sie auch

    Our total debt to net income attributable to HEICO ratio was 5.39x as of April 30, 2024, down from 6.14x as of October 31, 2023. Our net debt to EBITDA ratio was 2.45x as of April 30, 2024, down from 3.04x as of October 31, 2023. See our reconciliation of total debt to net debt at the end of this press release.

    Cash flow provided by operating activities increased 82% to $141.1 million in the second quarter of fiscal 2024, up from $77.8 million in the second quarter of fiscal 2023. We continue to forecast strong cash flow from operations for fiscal 2024.

    As we look ahead to the remainder of fiscal 2024, we continue to anticipate net sales growth in both the Flight Support Group and the Electronic Technologies Group, principally driven by contributions from our fiscal 2023 acquisitions and demand for the majority of our products. Additionally, we plan to continue our commitment to developing new products and services and further market penetration, while maintaining our financial strength and flexibility."

    Flight Support Group

    Eric A. Mendelson, HEICO's Co-President and President of HEICO's Flight Support Group, commented on the Flight Support Group's record setting second quarter results stating, "Continuing our growth trend, we achieved quarterly increases of 65% and 49% in net sales and operating income, respectively, as compared to the second quarter of fiscal 2023. These results principally reflect robust 12% quarterly organic net sales growth, mainly from 21% organic growth in our aftermarket replacement parts as well as contributions from our fiscal 2023 and 2024 acquisitions. The Flight Support Group has now achieved fifteen consecutive quarters of growth in net sales.

    The Flight Support Group's net sales increased 65% to a record $647.2 million in the second quarter of fiscal 2024, up from $392.2 million in the second quarter of fiscal 2023. The Flight Support Group's net sales increased 66% to a record $1,265.9 million in the first six months of fiscal 2024, up from $763.5 million in the first six months of fiscal 2023. The Flight Support Group's net sales increase in the second quarter and first six months of fiscal 2024 reflects the impact from our fiscal 2023 and 2024 acquisitions and strong organic growth of 12%. The organic net sales growth mainly reflects increased demand within our aftermarket replacement parts and repair and overhaul parts and services product lines.

    The Flight Support Group's operating income increased 49% to a record $148.9 million in the second quarter of fiscal 2024, up from $99.9 million in the second quarter of fiscal 2023. The Flight Support Group's operating income increased 55% to a record $285.0 million in the first six months of fiscal 2024, up from $183.5 million in the first six months of fiscal 2023. The Flight Support Group's operating income increase in the second quarter and first six months of fiscal 2024 principally reflects the previously mentioned net sales growth, partially offset by an increase in intangible asset amortization expense, the prior year impact from the amendment and termination of a contingent consideration agreement, and higher inventory obsolescence expense.

    The Flight Support Group's operating margin was 23.0% in the second quarter of fiscal 2024, as compared to 25.5% in the second quarter of fiscal 2023. The Flight Support Group's operating margin was 22.5% in the first six months of fiscal 2024, as compared to 24.0% in the first six months of fiscal 2023. The Flight Support Group's operating margin decrease in the second quarter and first six months of fiscal 2024 principally reflects the prior year impact from the previously mentioned amendment and termination of a contingent consideration agreement, and higher intangible asset amortization expense, partially offset by lower performance-based compensation expense as a percentage of net sales."

    Electronic Technologies Group

    Victor H. Mendelson, HEICO's Co-President and President of HEICO's Electronic Technologies Group, commented on the Electronic Technologies Group's second quarter results stating, "Improved demand resulted in double-digit organic net sales growth of our defense and aerospace products, which contributed to our improved quarterly results.

    The Electronic Technologies Group's net sales increased 6% to $319.3 million in the second quarter of fiscal 2024, up from $301.8 million in the second quarter of fiscal 2023. The net sales increase is attributable to 4% organic growth mainly reflecting increased defense and aerospace products net sales, partially offset by lower other electronics products net sales.

    The Electronic Technologies Group's net sales increased 9% to $605.3 million in the first six months of fiscal 2024, up from $556.8 million in the first six months of fiscal 2023. The net sales increase is mainly attributable to the impact from our fiscal 2023 acquisition and increased organic net sales of our defense and aerospace products, partially offset by lower organic net sales of our other electronics products.

    The Electronic Technologies Group's operating income increased 11% to $75.3 million in the second quarter of fiscal 2024, up from $68.0 million in the second quarter of fiscal 2023. The operating income increase principally reflects an improved gross profit margin and the previously mentioned net sales growth. The improved gross profit margin principally reflects increased defense products net sales, partially offset by decreased other electronics products net sales.

    The Electronic Technologies Group's operating income increased 5% to $130.6 million in the first six months of fiscal 2024, up from $124.5 million in the first six months of fiscal 2023. The operating income increase principally reflects the previously mentioned net sales growth, lower acquisition costs and an improved gross profit margin, partially offset by lower selling, general and administrative ("SG&A") efficiencies. The improved gross profit margin principally reflects increased defense products net sales, partially offset by decreased other electronics products net sales.

    The Electronic Technologies Group's operating margin improved to 23.6% in the second quarter of fiscal 2024, up from 22.5% in the second quarter of fiscal 2023. The operating margin increase principally reflects the previously mentioned improved gross profit margin and net sales growth, partially offset by lower SG&A efficiencies.

    The Electronic Technologies Group's operating margin was 21.6% in the first six months of fiscal 2024, as compared to 22.4% in the first six months of fiscal 2023. The lower operating margin principally reflects increased SG&A expenses as a percentage of net sales, which supports our forecasted strong net sales and earnings growth for the remainder of fiscal 2024, partially offset by the previously mentioned improved gross profit margin. The increased SG&A expenses principally reflect lower efficiencies, partially offset by the previously mentioned lower acquisition costs."

    Non-GAAP Financial Measures

    To provide additional information about the Company's results, HEICO has discussed in this press release its EBITDA (calculated as net income attributable to HEICO adjusted for depreciation and amortization expense, net income attributable to noncontrolling interests, interest expense and income tax expense), its net debt (calculated as total debt less cash and cash equivalents), and its net debt to EBITDA ratio (calculated as net debt divided by EBITDA), which are not prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

    These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate the performance of its business and believes the presentation of these measures enhance an investor's ability to analyze trends in the Company's business and to evaluate the Company's performance relative to other companies in its industry. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.

    These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Regulation G of the Securities and Exchange Act of 1934, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.

    (NOTE: HEICO has two classes of common stock traded on the NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common Stock (HEI), are virtually identical in all economic respects. The only difference between the share classes is the voting rights. The Class A Common Stock (HEI.A) carries 1/10 vote per share and the Common Stock (HEI) carries one vote per share.)

    There are currently approximately 83.7 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 54.8 million shares of HEICO's Common Stock (HEI) outstanding. The stock symbols for HEICO's two classes of common stock on most websites are HEI.A and HEI. However, some websites change HEICO's Class A Common Stock trading symbol (HEI.A) to HEI/A or HEIa.

    As previously announced, HEICO will hold a conference call on Wednesday, May 29, 2024 at 9:00 a.m. Eastern Daylight Time to discuss its second quarter results. Individuals wishing to participate in the conference call should dial: US and Canada (888) 256-1007, International (929) 477-0448, wait for the conference operator and provide the operator with the Conference ID 1602283. A digital replay will be available two hours after the completion of the conference for 14 days. To access the replay, please visit our website at www.heico.com under the Investors section for details.

    HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at www.heico.com.

    Certain statements in this press release constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats, such as the COVID-19 pandemic; our liquidity and the amount and timing of cash generation; lower commercial air travel, airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase to our costs to complete contracts; governmental and regulatory demands, export policies and restrictions, reductions in defense, space or homeland security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; cyber security events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. Parties receiving this material are encouraged to review all of HEICO's filings with the Securities and Exchange Commission, including, but not limited to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

    HEICO CORPORATION

    Condensed Consolidated Statements of Operations
    (Unaudited)
    (in thousands, except per share data)

    Three Months Ended April 30,
    2024 2023
    Net sales
    $ 955,395 $ 687,841
    Cost of sales
    583,600 421,329
    Selling, general and administrative expenses
    162,642 109,422
    Operating income
    209,153 157,090
    Interest expense
    (38,512 ) (11,373 )
    Other income
    460 343
    Income before income taxes and noncontrolling interests
    171,101 146,060
    Income tax expense
    36,200 31,000
    Net income from consolidated operations
    134,901 115,060
    Less: Net income attributable to noncontrolling interests
    11,755 9,940
    Net income attributable to HEICO
    $ 123,146 $ 105,120
    Net income per share attributable to HEICO shareholders:
    Basic
    $ .89 $ .77
    Diluted
    $ .88 $ .76
    Weighted average number of common shares outstanding:
    Basic
    138,386 136,916
    Diluted
    140,059 138,600
    Three Months Ended April 30,
    2024 2023
    Operating segment information:
    Net sales:
    Flight Support Group
    $ 647,232 $ 392,202
    Electronic Technologies Group
    319,322 301,759
    Intersegment sales
    (11,159 ) (6,120 )
    $ 955,395 $ 687,841
    Operating income:
    Flight Support Group
    $ 148,876 $ 99,912
    Electronic Technologies Group
    75,263 67,979
    Other, primarily corporate
    (14,986 ) (10,801 )
    $ 209,153 $ 157,090

    HEICO CORPORATION

    Condensed Consolidated Statements of Operations
    (Unaudited)
    (in thousands, except per share data)

    Six Months Ended April 30,
    2024 2023
    Net sales
    $ 1,851,758 $ 1,308,756
    Cost of sales
    1,133,194 798,445
    Selling, general and administrative expenses
    329,201 223,787
    Operating income
    389,363 286,524
    Interest expense
    (77,119 ) (17,441 )
    Other income
    1,139 982
    Income before income taxes and noncontrolling interests
    313,383 270,065
    Income tax expense
    53,000 (a) 52,000 (b)
    Net income from consolidated operations
    260,383 218,065
    Less: Net income attributable to noncontrolling interests
    22,539 19,918
    Net income attributable to HEICO
    $ 237,844 (a) $ 198,147 (b)

    Net income per share attributable to HEICO shareholders:

    Basic
    $ 1.72 (a) $ 1.45 (b)
    Diluted
    $ 1.70 (a) $ 1.43 (b)

    Weighted average number of common shares outstanding:

    Basic
    138,325 136,786
    Diluted
    139,976 138,590

    Six Months Ended April 30,

    2024 2023
    Operating segment information:
    Net sales:
    Flight Support Group
    $ 1,265,948 $ 763,480
    Electronic Technologies Group
    605,264 556,818
    Intersegment sales
    (19,454 ) (11,542 )
    $ 1,851,758 $ 1,308,756

    Operating income:
    Flight Support Group
    $ 284,967 $ 183,521
    Electronic Technologies Group
    130,591 124,516
    Other, primarily corporate
    (26,195 ) (21,513 )
    $ 389,363 $ 286,524

    HEICO CORPORATION

    Footnotes to Condensed Consolidated Statements of Operations (Unaudited)

    (a) During the first quarter of fiscal 2024, the Company recognized a $13.6 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $13.3 million, or $.10 per basic and diluted share.

    (b) During the first quarter of fiscal 2023, the Company recognized a $6.2 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income attributable to HEICO by $6.1 million, or $.04 per basic and diluted share.

    HEICO CORPORATION

    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands)

    April 30, 2024 October 31, 2023
    Cash and cash equivalents
    $ 204,161 $ 171,048
    Accounts receivable, net
    504,362 509,075
    Contract assets
    110,158 111,702
    Inventories, net
    1,088,101 1,013,680
    Prepaid expenses and other current assets
    61,919 49,837
    Total current assets
    1,968,701 1,855,342
    Property, plant and equipment, net
    326,740 321,848
    Goodwill
    3,285,468 3,274,327
    Intangible assets, net
    1,333,337 1,357,281
    Other assets
    451,599 386,265
    Total assets
    $ 7,365,845 $ 7,195,063
    Short-term and current maturities of long-term debt
    $ 4,382 $ 17,801
    Other current liabilities
    554,781 647,541
    Total current liabilities
    559,163 665,342
    Long-term debt, net of current maturities
    2,385,267 2,460,277
    Deferred income taxes
    119,987 131,846
    Other long-term liabilities
    490,253 379,640
    Total liabilities
    3,554,670 3,637,105
    Redeemable noncontrolling interests
    368,369 364,807
    Shareholders' equity
    3,442,806 3,193,151
    Total liabilities and equity
    $ 7,365,845 $ 7,195,063

    HEICO CORPORATION

    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
    (in thousands)

    Six Months Ended April 30,
    2024 2023
    Operating Activities:
    Net income from consolidated operations
    $ 260,383 $ 218,065
    Depreciation and amortization
    86,336 56,784
    Share-based compensation expense
    9,463 6,055
    Employer contributions to HEICO Savings and Investment Plan
    8,802 6,533
    Deferred income tax benefit
    (11,532 ) (9,596 )
    Amendment and termination of contingent consideration agreement
    - (9,057 )
    Payment of contingent consideration
    (6,203 ) (6,299 )
    (Decrease) increase in accrued contingent consideration, net
    (5,326 ) 1,842
    Decrease (increase) in accounts receivable
    5,309 (21,222 )
    Decrease (increase) in contract assets
    3,172 (9,267 )
    Increase in inventories
    (71,103 ) (75,251 )
    Decrease in current liabilities, net
    (76,338 ) (9,698 )
    Other
    49,829 5,547
    Net cash provided by operating activities
    252,792 154,436
    Investing Activities:
    Acquisitions, net of cash acquired
    (46,208 ) (524,231 )
    Capital expenditures
    (26,325 ) (21,921 )
    Investments related to HEICO Leadership Compensation Plan
    (14,410 ) (14,000 )
    Other
    1,657 362
    Net cash used in investing activities
    (85,286 ) (559,790 )
    Financing Activities:
    (Payments) borrowings on revolving credit facility, net
    (75,000 ) 448,000
    Distributions to noncontrolling interests
    (15,372 ) (22,650 )
    (Payments) borrowings on short-term debt, net
    (13,924 ) 1,672
    Cash dividends paid
    (13,831 ) (13,668 )
    Payment of contingent consideration
    (13,797 ) (12,610 )
    Acquisitions of noncontrolling interests
    (3,165 ) (2,733 )
    Redemptions of common stock related to stock option exercises
    (2,352 ) (14,811 )
    Proceeds from stock option exercises
    4,151 4,074
    Other
    (1,905 ) 1,491
    Net cash (used in) provided by financing activities
    (135,195 ) 388,765
    Effect of exchange rate changes on cash
    802 4,246
    Net increase (decrease) in cash and cash equivalents
    33,113 (12,343 )
    Cash and cash equivalents at beginning of year
    171,048 139,504
    Cash and cash equivalents at end of period
    $ 204,161 $ 127,161

    HEICO CORPORATION

    Non-GAAP Financial Measures
    (Unaudited)
    (in thousands, except ratios)

    Six Months Ended April 30,
    EBITDA Calculation
    2024 2023
    Net income attributable to HEICO
    $ 237,844 $ 198,147
    Plus: Depreciation and amortization
    86,336 56,784
    Plus: Net income attributable to noncontrolling interests
    22,539 19,918
    Plus: Interest expense
    77,119 17,441
    Plus: Income tax expense
    53,000 52,000
    EBITDA (a)
    $ 476,838 $ 344,290
    Three Months Ended April 30,
    EBITDA Calculation
    2024 2023
    Net income attributable to HEICO
    $ 123,146 $ 105,120
    Plus: Depreciation and amortization
    42,831 29,724
    Plus: Net income attributable to noncontrolling interests
    11,755 9,940
    Plus: Interest expense
    38,512 11,373
    Plus: Income tax expense
    36,200 31,000
    EBITDA (a)
    $ 252,444 $ 187,157
    Trailing Twelve Months Ended
    EBITDA Calculation
    April 30, 2024 October 31, 2023
    Net income attributable to HEICO
    $ 443,293 $ 403,596
    Plus: Depreciation and amortization
    159,595 130,043
    Plus: Net income attributable to noncontrolling interests
    43,408 40,787
    Plus: Interest expense
    132,662 72,984
    Plus: Income tax expense
    111,900 110,900
    EBITDA (a)
    $ 890,858 $ 758,310
    Net Debt Calculation
    April 30, 2024 October 31, 2023
    Total debt
    $ 2,389,649 $ 2,478,078
    Less: Cash and cash equivalents
    (204,161 ) (171,048 )
    Net debt (a)
    $ 2,185,488 $ 2,307,030

    Total debt
    $ 2,389,649 $ 2,478,078
    Net income attributable to HEICO (trailing twelve months)
    $ 443,293 $ 403,596
    Total debt to net income attributable to HEICO ratio
    5.39 6.14

    Net debt
    $ 2,185,488 $ 2,307,030
    EBITDA (trailing twelve months)
    $ 890,858 $ 758,310
    Net debt to EBITDA ratio (a)
    2.45 3.04

    (a) See the "Non-GAAP Financial Measures" section of this press release.

    Victor H. Mendelson (305) 374-1745 ext. 7590
    Carlos L. Macau, Jr. (954) 987-4000 ext. 7570

    SOURCE: HEICO Corporation



    View the original press release on accesswire.com


    The Heico Stock at the time of publication of the news with a fall of -2,51 % to 195,4EUR on Lang & Schwarz stock exchange (28. Mai 2024, 22:15 Uhr).


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    HEICO Corporation Reports Record Net Sales (Up 39%), Operating Income (Up 33%) and Net Income (Up 17%) for the Second Quarter of Fiscal 2024 HOLLYWOOD, FL and MIAMI, FL / ACCESSWIRE / May 28, 2024 / HEICO CORPORATION (NYSE:HEI.A)(NYSE:HEI) today reported an increase in net income of 17% to a record $123.1 million, or $.88 per diluted share, in the second quarter of fiscal 2024, up from …