Short answer
Heico Corp (HEI) filed its fiscal 2017 10-K annual report with the SEC on Dec 21, 2017. It reported revenue of $1.5B (+10.8% year over year) and net income of $186M.
- Top risk flagged: FAA certifications and export licenses: revocation or denial could halt regulated sales and reduce foreign revenue
FY2017 key financial metrics · XBRL
- Revenue
- $1.5B
- +10.8% YoY
- Net income
- $186M
- +19.1% YoY
- Operating margin
- 20.1%
- +0.8 pp YoY
- Gross margin
- 10.5%
- +0.6 pp YoY
- EPS (diluted)
- $2.14
- −6.6% YoY
- ROE
- 16.0%
- −0.2 pp YoY
- Operating cash flow
- $275M
- +10.3% YoY
Source: XBRL data from the Heico Corp (HEI) FY2017 10-K on SEC EDGAR. USD.
Heico Corp FY2017 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Aerospace and defense manufacturer with two segments: FAA-approved aircraft replacement parts, repairs, and mission-critical electronic components
- Fiscal 2017 acquisitions expanded businesses producing complex composites and crashworthy, self-sealing rotorcraft fuel systems
- Strategic emphasis on niche, mission-critical electronics and stand-off defense applications, alongside continued PMA expansion
- Backlog reached $654 million, up from $497 million, with Electronic Technologies backlog rising to $418 million
- R&D totaled $46.5 million, including $28.6 million in Electronic Technologies and $17.9 million in Flight Support
Management Discussion & Analysis
- Revenue $1,524.8M, up 11% YoY from $1,376.3M, with FSG $967.5M and ETG $574.3M
- Operating margin 20.1% vs 19.3%, with net income attributable to HEICO $186.0M vs $156.2M
- Best segment ETG: operating income $157.5M, margin 27.4% vs 24.7%; FSG margin 18.5% vs 18.7%
- Operating cash flow $274.9M; acquisitions $418.3M, fiscal 2017 borrowings $404.0M, capital expenditures $75.1M over three years
- Fiscal 2018 outlook: higher net sales and net income, with risks from commercial aviation demand, defense budget cuts and acquisition execution
Risk Factors
- FAA certifications and export licenses: revocation or denial could halt regulated sales and reduce foreign revenue
- Defense exposure: 64% of Electronic Technologies Group sales tied to defense, satellite, spacecraft and homeland-security products
- Supplier vulnerability: long-lead components and recertification requirements could delay deliveries and jeopardize customer contracts
- OEM competition: jet-engine manufacturers could bundle parts, repair and overhaul services, intensifying aftermarket pricing pressure
- Acquisition concentration: goodwill and intangible assets represented approximately 64% of total assets, exposing earnings to impairment charges
Generated from the filing text; verify against the original. How to read a 10-K
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