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HEICO Corp. Reports Operating Results (10-Q)

March 04, 2009 | About:
insider

HEICO Corp. (HEI) filed Quarterly Report for the period ended 2009-01-31.

Heico Corporation is engaged primarily in certain niche segments of the aviation defense space and electronics industries through its Hollywood FL-based HEICO Aerospace Holdings Corp. subsidiary and its Miami FL-based HEICO Electronic Technologies Corp. subsidiary. HEICO's customers include a majority of the world's airlines and airmotives as well as numerous defense and space contractors and military agencies worldwide in addition to telecommunications electronics and medical equipment manufacturers. HEICO Corp. has a market cap of $908.18 million; its shares were traded at around $22.7 with a P/E ratio of 17.6 and P/S ratio of 1.56. The dividend yield of HEICO Corp. stocks is 0.35%. HEICO Corp. had an annual average earning growth of 11.2% over the past 10 years. GuruFocus rated HEICO Corp. the business predictability rank of 3-star.

Highlight of Business Operations:

Commitments and contingencies (Note 12)

Shareholders' equity:

Preferred Stock, $.01 par value per share; 10,000,000 shares

authorized; 300,000 shares designated as Series B Junior

Participating Preferred Stock and 300,000 shares designated

as Series C Junior Participating Preferred Stock; none issued - -

Common Stock, $.01 par value per share; 30,000,000 shares

authorized; 10,572,641 and 10,572,641 shares issued and

outstanding, respectively 106,000 106,000

Class A Common Stock, $.01 par value per share; 30,000,000

shares authorized; 15,850,487 and 15,829,790 shares issued

and outstanding, respectively 159,000 158,000

Capital in excess of par value 231,907,000 229,443,000

Accumulated other comprehensive loss (5,459,000) (4,819,000)

Retained earnings 202,604,000 192,872,000

- -

Total shareholders' equity 429,317,000 417,760,000

- -

Total liabilities and shareholders' equity $ 672,378,000 $ 676,542,000

= =





January 31, 2009 October 31, 2008

- -



Costs incurred on uncompleted contracts $ 20,678,000 $ 21,505,000

Estimated earnings 11,873,000 12,545,000

- -

32,551,000 34,050,000

Less: Billings to date (27,287,000) (28,337,000)

- -

$ 5,264,000 $ 5,713,000

= =

Included in accompanying Condensed Consolidated

Balance Sheets under the following captions:

Accounts receivable, net (costs and estimated

earnings in excess of billings) $ 5,344,000 $ 6,115,000

Accrued expenses and other current liabilities

(billings in excess of costs and estimated earnings) (80,000) (402,000)

- -

$ 5,264,000 $ 5,713,000

= =





Segment

- Consolidated

FSG ETG Totals

- - -



Balances as of October 31, 2008 $181,126,000 $142,267,000 $323,393,000

Goodwill acquired 6,467,000 - 6,467,000

Foreign currency translation adjustments (158,000) (148,000) (306,000)

Adjustments to goodwill 123,000 - 123,000

- - -

Balances as of January 31, 2009 $187,558,000 $142,119,000 $329,677,000

= = =





As of January 31, 2009 As of October 31, 2008

- -

Gross Net Gross Net

Carrying Accumulated Carrying Carrying Accumulated Carrying

Amount Amortization Amount Amount Amortization Amount

- - - - - -



Amortizing Assets:

Customer relationships $ 16,651,000 ($ 7,103,000) $ 9,548,000 $ 16,845,000 ($ 6,451,000) $ 10,394,000

Intellectual property 3,411,000 (1,977,000) 1,434,000 3,427,000 (1,833,000) 1,594,000

Licenses 1,000,000 (492,000) 508,000 1,000,000 (474,000) 526,000

Non-compete agreements 1,076,000 (735,000) 341,000 1,086,000 (660,000) 426,000

Patents 577,000 (203,000) 374,000 575,000 (189,000) 386,000

- - - - - -

22,715,000 (10,510,000) 12,205,000 22,933,000 (9,607,000) 13,326,000

Non-Amortizing Assets:

Trade names 11,639,000 - 11,639,000 11,657,000 - 11,657,000

- - - - - -

$ 34,354,000 ($10,510,000) $ 23,844,000 $ 34,590,000 ($ 9,607,000) $ 24,983,000

= = = = = =



Amortization expense of other intangible assets for the three months ended

January 31, 2009 and 2008 was $941,000 and $1,257,000, respectively.

Amortization expense of other intangible assets for the fiscal year ending

October 31, 2009 is estimated to be $3,648,000. Amortization expense for each of

the next five fiscal years is estimated to be $2,912,000 in fiscal 2010,

$2,217,000 in fiscal 2011, $1,561,000 in fiscal 2012, $1,046,000 in fiscal 2013

and $679,000 in fiscal 2014.



Balances as of October 31, 2008 $106,000 $158,000 $ 229,443,000 ($ 4,819,000) $ 192,872,000

Net income - - - - 11,317,000 $ 11,317,000

Foreign currency translation adjustments - - - (775,000) - (775,000)

-

Comprehensive income - - - - - $ 10,542,000

=

Cash dividends ($.06 per share) - - - - (1,585,000)

Tax benefit from stock option exercises - - 2,139,000 - -

Proceeds from stock option exercises - 1,000 321,000 - -

Stock option compensation expense - - 4,000 - -

Other - - - 135,000 -

- - - - -

Balances as of January 31, 2009 $106,000 $159,000 $ 231,907,000 ($ 5,459,000) $ 202,604,000

= = = = =



Read the The complete Report

Rating: 4.7/5 (3 votes)

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