Short answer
Heico Corp (HEI) filed its fiscal 2016 10-K annual report with the SEC on Dec 15, 2016. It reported revenue of $1.4B and net income of $156M.
- Top risk flagged: FAA certification and airworthiness requirements: authorization revocation or suspension could halt regulated manufacturing, repair, and overhaul operations
FY2016 key financial metrics · XBRL
- Revenue
- $1.4B
- Net income
- $156M
- Operating margin
- 19.3%
- Gross margin
- 9.9%
- EPS (diluted)
- $2.29
- ROE
- 16.2%
- Operating cash flow
- $249M
Source: XBRL data from the Heico Corp (HEI) FY2016 10-K on SEC EDGAR. USD.
Heico Corp FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Two-segment aerospace and electronics manufacturer, combining lower-cost FAA-approved replacement parts with mission-critical electronic components
- Flight Support Group increased to 64% of sales from 68%, while Electronic Technologies reached 36% from 32%
- Fiscal 2016 acquisition expanded Electronic Technologies backlog, contributing to total backlog growth to $497 million from $349 million
- Electronic Technologies R&D rose to $27.3 million from $21.0 million, supporting satellite, spacecraft and defense electronics
- Approximately 62 acquisitions since 1990, with 4,700 employees as of October 31, 2016
Management Discussion & Analysis
- Revenue $1,376.3M, up 16% YoY from $1,188.6M, led by ETG growth of 31% to $511.3M
- Operating margin 19.3% vs 19.3%; gross margin 37.5% vs 36.5%; net income $156.2M vs $133.4M
- Best segment ETG: sales $511.3M, operating income $126.0M, up 28%; FSG sales $875.9M, operating income $163.4M
- Operating cash flow $249.2M; acquisitions $263.8M; fiscal 2017 capex expected near $38M; cash dividends $51.3M over three years
- Fiscal 2017 outlook: higher sales and net income; risks include commercial aviation demand, defense budget cuts and acquisition execution
Risk Factors
- FAA certification and airworthiness requirements: authorization revocation or suspension could halt regulated manufacturing, repair, and overhaul operations
- Defense, satellite, and homeland-security exposure: Electronic Technologies Group derived approximately 65% of fiscal 2016 net sales from these markets
- Foreign-market concentration: approximately 34% of consolidated fiscal 2016 net sales came from customers in approximately 100 countries
- Supply-chain vulnerability: long-lead components and raw materials may require costly customer or regulatory recertification when suppliers change
- Intangible-asset concentration: goodwill and intangible assets represented approximately 60% of total assets as of October 31, 2016
Generated from the filing text; verify against the original. How to read a 10-K
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