10-K annual report · filed Dec 15, 2016

Heico Corp (HEI) FY2016 10-K Annual Report

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

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.