QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



(in thousands, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net sales:
2017		$343,432		$368,657		$391,500		$421,224
2016		$306,227		$350,648		$356,084		$363,299
Gross profit:
2017		$125,417		$140,382		$148,897		$160,029
2016		$112,196		$134,029		$133,583		$135,684
Net income from consolidated operations:
2017		$46,265		$50,833		$51,475		$59,087
2016		$35,924		$43,729		$46,976		$49,521
Net income attributable to HEICO:
2017		$40,927		$45,686		$45,698		$53,674
2016		$31,271		$38,657		$42,002		$44,262
Net income per share attributable to HEICO:
Basic:
2017		$.49		$.54		$.54		$.64
2016		$.37		$.46		$.50		$.53
Diluted:
2017		$.47		$.53		$.53		$.62
2016		$.37		$.45		$.49		$.52

During the first quarter of fiscal 2017, the Company adopted ASU 2016-09 (see Note 1, Summary of Significant Accounting Policies - New Accounting Pronouncements), resulting in the recognition of a $3.1 million discrete income tax benefit and a 679,000 increase in the Company's weighted average number of diluted common shares outstanding, which, net of noncontrolling interests, increased net income attributable to HEICO by $2.6 million, or $.03 per basic and diluted share.

During the first quarter of fiscal 2016, the Company incurred $3.1 million of acquisition costs in connection with a fiscal 2016 acquisition. These expenses, net of tax, decreased net income attributable to HEICO by $2.0 million, or $.02 per basic and diluted share.

During the first quarter of fiscal 2016, the Company recognized additional income tax credits for qualified R&D activities related to the last ten months of fiscal 2015 upon the retroactive and permanent extension of the U.S. federal R&D tax credit in December 2015, which, net of expenses, increased net income attributable to HEICO by $1.7 million, or $.02 per basic and per diluted share.

Due to changes in the average number of common shares outstanding, net income per share attributable to HEICO for the full fiscal year may not equal the sum of the four individual quarters.