Short answer
Heico Corp (HEI) filed its fiscal 2019 10-K annual report with the SEC on Dec 19, 2019. It reported revenue of $2.1B (+15.6% year over year) and net income of $328M.
- Top risk flagged: FAA certification risk: authorization revocation or suspension could halt aircraft-parts manufacturing, repair and overhaul operations
FY2019 key financial metrics · XBRL
- Revenue
- $2.1B
- +15.6% YoY
- Net income
- $328M
- +26.5% YoY
- Operating margin
- 22.2%
- +1.1 pp YoY
- Gross margin
- 10.2%
- −0.3 pp YoY
- EPS (diluted)
- $2.39
- +25.8% YoY
- ROE
- 19.7%
- +1.1 pp YoY
- Operating cash flow
- $437M
- +33.1% YoY
Source: XBRL data from the Heico Corp (HEI) FY2019 10-K on SEC EDGAR. USD.
Heico Corp FY2019 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: Two segments supplying FAA-approved aerospace replacement parts, repair services, and mission-critical electronic components
- Fiscal 2019 emphasis: Acquired businesses expanded Electronic Technologies backlog, especially crashworthy fuel systems for military rotorcraft
- Strategic positioning: Increased niche-market penetration through proprietary engineering, lower-cost OEM alternatives, and disciplined acquisitions
- Quantitative standout: Backlog rose to $900 million from $783 million, while R&D reached $66.6 million across both segments
- Distinctive fact: Approximately 5,900 employees supported $2,055.6 million in sales, with 77 acquisitions completed since 1990
Management Discussion & Analysis
- Revenue $2,055.6M, up 16% YoY from $1,777.7M
- Operating margin 22.2% vs 21.2%, net income attributable to HEICO $327.9M vs $259.2M
- Best segment ETG: sales $834.5M, up 19%, operating margin 29.4% vs 29.1%
- Operating cash flow $437.4M, acquisitions $240.8M, capex $28.9M, dividends $18.7M
- Fiscal 2020 outlook: higher sales and net income, with risks from commercial air travel demand and defense spending cuts
Risk Factors
- FAA certification risk: authorization revocation or suspension could halt aircraft-parts manufacturing, repair and overhaul operations
- Foreign-market exposure: 36% of fiscal 2019 consolidated net sales came from customers across approximately 110 countries
- Supply-chain vulnerability: supplier failures may require costly part recertification and delay customer deliveries
- Competitive disruption: OEMs may bundle parts, maintenance and repair services, intensifying competition in the aftermarket
- Asset-concentration risk: goodwill and intangible assets represented 61% of total assets as of October 31, 2019
Generated from the filing text; verify against the original. How to read a 10-K
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