Short answer
Heico Corp (HEI) filed its fiscal 2012 10-K annual report with the SEC on Dec 20, 2012.
- Top risk flagged: FAA certification and airworthiness compliance: authorization suspension or revocation could halt aircraft-parts manufacturing, repair, and overhaul operations
Heico Corp FY2012 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Two-segment model: lower-cost FAA-approved aerospace replacement parts and niche mission-critical electronic technologies
- Fiscal 2012 acquisitions added wireless cabin controls through Moritz, harsh-environment connectivity through Switchcraft, and RF/microwave products through Ramona Research
- Electronic Technologies gained weight, reaching 37% of sales versus 30% in fiscal 2011, while Flight Support declined to 63% from 70%
- Electronic Technologies R&D increased to $17.7 million from $12.5 million, while total backlog rose to $252 million from $224 million
- Employee base reached approximately 3,100, split between 1,600 Flight Support and 1,500 Electronic Technologies employees
Management Discussion & Analysis
- Revenue $897.3M, up 17% YoY from $764.9M, led by ETG growth of 46% to $331.6M
- Operating margin 18.2% vs 18.1%; gross margin 36.5% vs 35.9%; net income $85.1M vs $72.8M
- Best segment ETG: sales $331.6M, operating income $77.4M; worst margin change, 23.4% vs 26.1%
- Operating cash flow $138.6M; acquisitions $197.3M; capital expenditures $33.6M over three years
- Outlook: fiscal 2013 sales and net income growth targeted; risks from defense spending reductions and commercial aviation uncertainty
Risk Factors
- FAA certification and airworthiness compliance: authorization suspension or revocation could halt aircraft-parts manufacturing, repair, and overhaul operations
- Defense exposure: 51% of Electronic Technologies Group sales tied to defense, satellite, spacecraft, and homeland-security products
- Foreign-market exposure: 33% of consolidated fiscal 2012 sales from customers in approximately 100 countries
- Supply-chain vulnerability: long-lead components and raw materials may require costly customer or regulatory recertification after supplier changes
- OEM competition: Pratt & Whitney and General Electric could undercut HEICO’s replacement-parts and repair businesses with bundled offerings
- Key-person dependency: senior management led by Laurans A. Mendelson, Eric A. Mendelson, and Victor H. Mendelson
Generated from the filing text; verify against the original. How to read a 10-K
Other Heico Corp annual reports
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.