10-K annual report · filed Dec 19, 2019

Heico Corp (HEI) FY2019 10-K Annual Report

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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