x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
o
|
TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
Florida | 65-0341002 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization)
|
|
3000 Taft Street, Hollywood, Florida | 33021 |
(Address of principal executive offices) | (Zip Code) |
Common Stock, $.01 par value | 16,740,363 shares |
Class A Common Stock, $.01 par value | 25,016,912 shares |
Part I.
|
Financial Information:
|
||
Part II.
|
Other Information:
|
||
July 31, 2011
|
October 31, 2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 27,588,000 | $ | 6,543,000 | ||||
Accounts receivable, net
|
100,422,000 | 91,815,000 | ||||||
Inventories, net
|
155,569,000 | 138,215,000 | ||||||
Prepaid expenses and other current assets
|
6,307,000 | 3,769,000 | ||||||
Deferred income taxes
|
20,001,000 | 18,907,000 | ||||||
Total current assets
|
309,887,000 | 259,249,000 | ||||||
Property, plant and equipment, net
|
56,987,000 | 59,003,000 | ||||||
Goodwill
|
392,439,000 | 385,016,000 | ||||||
Intangible assets, net
|
59,496,000 | 49,487,000 | ||||||
Other assets
|
35,933,000 | 28,888,000 | ||||||
Total assets
|
$ | 854,742,000 | $ | 781,643,000 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current maturities of long-term debt
|
$ | 45,000 | $ | 148,000 | ||||
Trade accounts payable
|
34,788,000 | 28,604,000 | ||||||
Accrued expenses and other current liabilities
|
56,003,000 | 52,101,000 | ||||||
Income taxes payable
|
3,102,000 | 979,000 | ||||||
Total current liabilities
|
93,938,000 | 81,832,000 | ||||||
Long-term debt, net of current maturities
|
55,000 | 14,073,000 | ||||||
Deferred income taxes
|
46,670,000 | 45,308,000 | ||||||
Other long-term liabilities
|
37,864,000 | 30,556,000 | ||||||
Total liabilities
|
178,527,000 | 171,769,000 | ||||||
Commitments and contingencies (Note 13)
|
||||||||
Redeemable noncontrolling interests (Note 10)
|
53,979,000 | 55,048,000 | ||||||
Shareholders’ equity:
|
||||||||
Preferred Stock, $.01 par value per share; 10,000,000 shares authorized; 300,000 shares designated as Series B Junior Participating Preferred Stock and 300,000 shares designated as Series C Junior Participating Preferred Stock; none issued
|
— | — | ||||||
Common Stock, $.01 par value per share; 30,000,000 shares authorized 16,740,363 and 16,407,506 shares issued and outstanding
|
167,000 | 131,000 | ||||||
Class A Common Stock, $.01 par value per share; 30,000,000 shares authorized; 25,010,037 and 24,829,465 shares issued and outstanding
|
250,000 | 199,000 | ||||||
Capital in excess of par value
|
234,078,000 | 227,993,000 | ||||||
Accumulated other comprehensive income (loss)
|
1,556,000 | (124,000 | ) | |||||
Retained earnings
|
292,242,000 | 240,913,000 | ||||||
Total HEICO shareholders’ equity
|
528,293,000 | 469,112,000 | ||||||
Noncontrolling interests
|
93,943,000 | 85,714,000 | ||||||
Total shareholders’ equity
|
622,236,000 | 554,826,000 | ||||||
Total liabilities and equity
|
$ | 854,742,000 | $ | 781,643,000 |
Nine months ended July 31,
|
Three months ended July 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
$ | 555,972,000 | $ | 447,650,000 | $ | 197,267,000 | $ | 158,270,000 | ||||||||
Operating costs and expenses:
|
||||||||||||||||
Cost of sales
|
355,850,000 | 286,351,000 | 127,442,000 | 100,717,000 | ||||||||||||
Selling, general and administrative expenses
|
99,131,000 | 81,805,000 | 34,119,000 | 28,560,000 | ||||||||||||
Total operating costs and expenses
|
454,981,000 | 368,156,000 | 161,561,000 | 129,277,000 | ||||||||||||
Operating income
|
100,991,000 | 79,494,000 | 35,706,000 | 28,993,000 | ||||||||||||
Interest expense
|
(99,000 | ) | (422,000 | ) | (7,000 | ) | (136,000 | ) | ||||||||
Other income (expense)
|
149,000 | 392,000 | (57,000 | ) | (31,000 | ) | ||||||||||
Income before income taxes and noncontrolling interests
|
101,041,000 | 79,464,000 | 35,642,000 | 28,826,000 | ||||||||||||
Income tax expense
|
30,000,000 | 27,000,000 | 9,250,000 | 9,300,000 | ||||||||||||
Net income from consolidated operations
|
71,041,000 | 52,464,000 | 26,392,000 | 19,526,000 | ||||||||||||
Less: Net income attributable to noncontrolling interests
|
16,735,000 | 13,168,000 | 5,990,000 | 4,596,000 | ||||||||||||
Net income attributable to HEICO
|
$ | 54,306,000 | $ | 39,296,000 | $ | 20,402,000 | $ | 14,930,000 | ||||||||
Net income per share attributable to HEICO shareholders:
|
||||||||||||||||
Basic
|
$ | 1.31 | $ | .96 | $ | .49 | $ | .36 | ||||||||
Diluted
|
$ | 1.28 | $ | .93 | $ | .48 | $ | .35 | ||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
41,572,003 | 40,991,421 | 41,729,088 | 41,146,913 | ||||||||||||
Diluted
|
42,479,210 | 42,191,768 | 42,569,633 | 42,246,839 | ||||||||||||
Cash dividends per share
|
$ | .108 | $ | .086 | $ | .060 | $ | .048 |
HEICO Shareholders' Equity
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Redeemable
|
Class A
|
Capital in
|
Other
|
Total
|
||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Common
|
Excess of
|
Comprehensive
|
Retained
|
Noncontrolling
|
Shareholders'
|
|||||||||||||||||||||||||
Interests
|
Stock
|
Stock
|
Par Value
|
Income (Loss)
|
Earnings
|
Interests
|
Equity
|
|||||||||||||||||||||||||
Balances as of October 31, 2010
|
$ | 55,048,000 | $ | 131,000 | $ | 199,000 | $ | 227,993,000 | $ | (124,000 | ) | $ | 240,913,000 | $ | 85,714,000 | $ | 554,826,000 | |||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income
|
8,507,000 | — | — | — | — | 54,306,000 | 8,228,000 | 62,534,000 | ||||||||||||||||||||||||
Foreign currency translation adjustments
|
— | — | — | — | 1,680,000 | — | — | 1,680,000 | ||||||||||||||||||||||||
Total comprehensive income
|
8,507,000 | — | — | — | 1,680,000 | 54,306,000 | 8,228,000 | 64,214,000 | ||||||||||||||||||||||||
Cash dividends ($.108 per share)
|
— | — | — | — | — | (4,494,000 | ) | — | (4,494,000 | ) | ||||||||||||||||||||||
Five-for-four common stock split
|
— | 33,000 | 50,000 | (83,000 | ) | — | (102,000 | ) | — | (102,000 | ) | |||||||||||||||||||||
Tax benefit from stock option exercises
|
— | — | — | 7,704,000 | — | — | — | 7,704,000 | ||||||||||||||||||||||||
Proceeds from stock option exercises
|
— | 3,000 | 1,000 | 2,084,000 | — | — | — | 2,088,000 | ||||||||||||||||||||||||
Stock option compensation expense
|
— | — | — | 1,813,000 | — | — | — | 1,813,000 | ||||||||||||||||||||||||
Acquisitions of noncontrolling interests
|
(7,241,000 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Distributions to noncontrolling interests
|
(6,328,000 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Redemptions of common stock related to stock option exercises
|
— | — | — | (5,432,000 | ) | — | — | — | (5,432,000 | ) | ||||||||||||||||||||||
Noncontrolling interests assumed related to acquisition
|
5,612,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests
|
(1,619,000 | ) | — | — | — | — | 1,619,000 | — | 1,619,000 | |||||||||||||||||||||||
Other
|
— | — | — | (1,000 | ) | — | — | 1,000 | — | |||||||||||||||||||||||
Balances as of July 31, 2011
|
$ | 53,979,000 | $ | 167,000 | $ | 250,000 | $ | 234,078,000 | $ | 1,556,000 | $ | 292,242,000 | $ | 93,943,000 | $ | 622,236,000 |
HEICO Shareholders' Equity
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Redeemable
|
Class A
|
Capital in
|
Other
|
Total
|
||||||||||||||||||||||||||||
Noncontrolling
|
Common
|
Common
|
Excess of
|
Comprehensive
|
Retained
|
Noncontrolling
|
Shareholders'
|
|||||||||||||||||||||||||
Interests
|
Stock
|
Stock
|
Par Value
|
Income (Loss)
|
Earnings
|
Interests
|
Equity
|
|||||||||||||||||||||||||
Balances as of October 31, 2009
|
$ | 56,937,000 | $ | 104,000 | $ | 157,000 | $ | 224,625,000 | $ | (1,381,000 | ) | $ | 189,485,000 | $ | 77,668,000 | $ | 490,658,000 | |||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||||||
Net income
|
7,134,000 | — | — | — | — | 39,296,000 | 6,034,000 | 45,330,000 | ||||||||||||||||||||||||
Foreign currency translation adjustments
|
— | — | — | — | 877,000 | — | — | 877,000 | ||||||||||||||||||||||||
Total comprehensive income
|
7,134,000 | — | — | — | 877,000 | 39,296,000 | 6,034,000 | 46,207,000 | ||||||||||||||||||||||||
Cash dividends ($.086 per share)
|
— | — | — | — | — | (3,546,000 | ) | — | (3,546,000 | ) | ||||||||||||||||||||||
Five-for-four common stock split
|
— | 26,000 | 40,000 | (66,000 | ) | — | (68,000 | ) | — | (68,000 | ) | |||||||||||||||||||||
Tax benefit from stock option exercises
|
— | — | — | 951,000 | — | — | — | 951,000 | ||||||||||||||||||||||||
Proceeds from stock option exercises
|
— | 1,000 | 1,000 | 1,465,000 | — | — | — | 1,467,000 | ||||||||||||||||||||||||
Stock option compensation expense
|
— | — | — | 921,000 | — | — | — | 921,000 | ||||||||||||||||||||||||
Acquisitions of noncontrolling interests
|
(795,000 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Distributions to noncontrolling interests
|
(7,184,000 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Redemptions of common stock related to stock option exercises
|
— | — | — | (681,000 | ) | — | — | — | (681,000 | ) | ||||||||||||||||||||||
Adjustments to redemption amount of redeemable noncontrolling interests
|
(39,000 | ) | — | — | — | — | 39,000 | — | 39,000 | |||||||||||||||||||||||
Other
|
— | — | — | — | 6,000 | — | — | 6,000 | ||||||||||||||||||||||||
Balances as of July 31, 2010
|
$ | 56,053,000 | $ | 131,000 | $ | 198,000 | $ | 227,215,000 | $ | (498,000 | ) | $ | 225,206,000 | $ | 83,702,000 | $ | 535,954,000 |
Nine months ended July 31,
|
||||||||
2011
|
2010
|
|||||||
Operating Activities:
|
||||||||
Net income from consolidated operations
|
$ | 71,041,000 | $ | 52,464,000 | ||||
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
13,426,000 | 13,578,000 | ||||||
Impairment of intangible assets
|
— | 281,000 | ||||||
Deferred income tax provision (benefit)
|
422,000 | (80,000 | ) | |||||
Tax benefit from stock option exercises
|
7,704,000 | 951,000 | ||||||
Excess tax benefit from stock option exercises
|
(6,347,000 | ) | (669,000 | ) | ||||
Stock option compensation expense
|
1,813,000 | 921,000 | ||||||
Changes in operating assets and liabilities, net of acquisitions:
|
||||||||
Increase in accounts receivable
|
(3,468,000 | ) | (2,988,000 | ) | ||||
(Increase) decrease in inventories
|
(8,053,000 | ) | 3,625,000 | |||||
Increase in prepaid expenses and other current assets
|
(2,083,000 | ) | (1,051,000 | ) | ||||
Increase (decrease) in trade accounts payable
|
2,184,000 | (177,000 | ) | |||||
Increase in accrued expenses and other current liabilities
|
6,160,000 | 1,744,000 | ||||||
Increase (decrease) in income taxes payable
|
1,996,000 | (794,000 | ) | |||||
Other
|
203,000 | 116,000 | ||||||
Net cash provided by operating activities
|
84,998,000 | 67,921,000 | ||||||
Investing Activities:
|
||||||||
Acquisitions, net of cash acquired
|
(29,215,000 | ) | (39,061,000 | ) | ||||
Capital expenditures
|
(5,710,000 | ) | (6,743,000 | ) | ||||
Other
|
197,000 | (18,000 | ) | |||||
Net cash used in investing activities
|
(34,728,000 | ) | (45,822,000 | ) | ||||
Financing Activities:
|
||||||||
Payments on revolving credit facility
|
(42,000,000 | ) | (45,000,000 | ) | ||||
Borrowings on revolving credit facility
|
28,000,000 | 37,000,000 | ||||||
Acquisitions of noncontrolling interests
|
(7,241,000 | ) | (795,000 | ) | ||||
Distributions to noncontrolling interests
|
(6,328,000 | ) | (7,184,000 | ) | ||||
Redemptions of common stock related to stock option exercises
|
(5,432,000 | ) | (681,000 | ) | ||||
Cash dividends paid
|
(4,596,000 | ) | (3,614,000 | ) | ||||
Excess tax benefit from stock option exercises
|
6,347,000 | 669,000 | ||||||
Proceeds from stock option exercises
|
2,088,000 | 1,467,000 | ||||||
Other
|
(131,000 | ) | (152,000 | ) | ||||
Net cash used in financing activities
|
(29,293,000 | ) | (18,290,000 | ) | ||||
Effect of exchange rate changes on cash
|
68,000 | 61,000 | ||||||
Net increase in cash and cash equivalents
|
21,045,000 | 3,870,000 | ||||||
Cash and cash equivalents at beginning of year
|
6,543,000 | 7,167,000 | ||||||
Cash and cash equivalents at end of period
|
$ | 27,588,000 | $ | 11,037,000 |
July 31, 2011
|
October 31, 2010
|
|||||||
Accounts receivable
|
$ | 102,666,000 | $ | 94,283,000 | ||||
Less: Allowance for doubtful accounts
|
(2,244,000 | ) | (2,468,000 | ) | ||||
Accounts receivable, net
|
$ | 100,422,000 | $ | 91,815,000 |
July 31, 2011
|
October 31, 2010
|
|||||||
Costs incurred on uncompleted contracts
|
$ | 4,442,000 | $ | 6,323,000 | ||||
Estimated earnings
|
4,059,000 | 7,603,000 | ||||||
8,501,000 | 13,926,000 | |||||||
Less: Billings to date
|
(4,876,000 | ) | (8,967,000 | ) | ||||
$ | 3,625,000 | $ | 4,959,000 | |||||
Included in the accompanying Condensed Consolidated
|
||||||||
Balance Sheets under the following captions:
|
||||||||
Accounts receivable, net (costs and estimated earnings in excess of billings)
|
$ | 3,625,000 | $ | 5,135,000 | ||||
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings)
|
— | (176,000 | ) | |||||
$ | 3,625,000 | $ | 4,959,000 |
July 31, 2011
|
October 31, 2010
|
|||||||
Finished products
|
$ | 82,351,000 | $ | 72,263,000 | ||||
Work in process
|
24,217,000 | 19,034,000 | ||||||
Materials, parts, assemblies and supplies
|
49,001,000 | 46,918,000 | ||||||
Inventories, net of valuation reserves
|
$ | 155,569,000 | $ | 138,215,000 |
July 31, 2011
|
October 31, 2010
|
|||||||
Land
|
$ | 3,656,000 | $ | 3,656,000 | ||||
Buildings and improvements
|
39,493,000 | 38,772,000 | ||||||
Machinery, equipment and tooling
|
92,423,000 | 85,095,000 | ||||||
Construction in progress
|
2,164,000 | 6,319,000 | ||||||
137,736,000 | 133,842,000 | |||||||
Less: Accumulated depreciation and amortization
|
(80,749,000 | ) | (74,839,000 | ) | ||||
Property, plant and equipment, net
|
$ | 56,987,000 | $ | 59,003,000 |
Segment
|
Consolidated
|
|||||||||||
FSG
|
ETG
|
Totals
|
||||||||||
Balances as of October 31, 2010
|
$ | 188,459,000 | $ | 196,557,000 | $ | 385,016,000 | ||||||
Goodwill acquired
|
3,898,000 | — | 3,898,000 | |||||||||
Adjustments to goodwill
|
— | 1,278,000 | 1,278,000 | |||||||||
Accrued additional purchase consideration
|
— | 1,198,000 | 1,198,000 | |||||||||
Foreign currency translation adjustments
|
— | 1,049,000 | 1,049,000 | |||||||||
Balances as of July 31, 2011
|
$ | 192,357,000 | $ | 200,082,000 | $ | 392,439,000 |
As of July 31, 2011
|
As of October 31, 2010
|
|||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Carrying
|
Accumulated
|
Carrying
|
|||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||||||||
Amortizing Assets:
|
||||||||||||||||||||||||
Customer relationships
|
$ | 46,634,000 | $ | (16,464,000 | ) | $ | 30,170,000 | $ | 37,338,000 | $ | (12,142,000 | ) | $ | 25,196,000 | ||||||||||
Intellectual property
|
7,392,000 | (2,049,000 | ) | 5,343,000 | 7,281,000 | (1,372,000 | ) | 5,909,000 | ||||||||||||||||
Licenses
|
2,900,000 | (788,000 | ) | 2,112,000 | 1,000,000 | (621,000 | ) | 379,000 | ||||||||||||||||
Non-compete agreements
|
1,376,000 | (1,167,000 | ) | 209,000 | 1,170,000 | (1,019,000 | ) | 151,000 | ||||||||||||||||
Patents
|
576,000 | (304,000 | ) | 272,000 | 554,000 | (270,000 | ) | 284,000 | ||||||||||||||||
Trade names
|
569,000 | (196,000 | ) | 373,000 | 569,000 | (112,000 | ) | 457,000 | ||||||||||||||||
59,447,000 | (20,968,000 | ) | 38,479,000 | 47,912,000 | (15,536,000 | ) | 32,376,000 | |||||||||||||||||
Non-Amortizing Assets:
|
||||||||||||||||||||||||
Trade names
|
21,017,000 | — | 21,017,000 | 17,111,000 | — | 17,111,000 | ||||||||||||||||||
$ | 80,464,000 | $ | (20,968,000 | ) | $ | 59,496,000 | $ | 65,023,000 | $ | (15,536,000 | ) | $ | 49,487,000 |
July 31, 2011
|
October 31, 2010
|
|||||||
Borrowings under revolving credit facility
|
$ | — | $ | 14,000,000 | ||||
Notes payable and capital leases
|
100,000 | 221,000 | ||||||
100,000 | 14,221,000 | |||||||
Less: Current maturities of long-term debt
|
(45,000 | ) | (148,000 | ) | ||||
$ | 55,000 | $ | 14,073,000 |
Balance as of October 31, 2010
|
$ | 2,306,000 | ||
Decreases related to prior year tax positions
|
(192,000 | ) | ||
Increases related to current year tax positions
|
497,000 | |||
Lapse of statutes of limitations
|
(350,000 | ) | ||
Balance as of July 31, 2011
|
$ | 2,261,000 |
As of July 31, 2011
|
||||||||||||||||
Quoted Prices
|
Significant
|
Significant
|
||||||||||||||
in Active Markets
|
Other Observable
|
Unobservable
|
||||||||||||||
for Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Deferred compensation plans:
|
||||||||||||||||
Corporate owned life insurance
|
$ | — | $ | 28,597,000 | $ | — | $ | 28,597,000 | ||||||||
Equity securities
|
1,962,000 | — | — | 1,962,000 | ||||||||||||
Money market funds and cash
|
893,000 | — | — | 893,000 | ||||||||||||
Mutual funds
|
1,061,000 | — | — | 1,061,000 | ||||||||||||
Other
|
— | 463,000 | 572,000 | 1,035,000 | ||||||||||||
Total assets
|
$ | 3,916,000 | $ | 29,060,000 | $ | 572,000 | $ | 33,548,000 | ||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$ | — | $ | — | $ | 1,150,000 | $ | 1,150,000 |
As of October 31, 2010
|
||||||||||||||||
Quoted Prices
|
Significant
|
Significant
|
||||||||||||||
in Active Markets
|
Other Observable
|
Unobservable
|
||||||||||||||
for Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Deferred compensation plans:
|
||||||||||||||||
Corporate owned life insurance
|
$ | — | $ | 22,908,000 | $ | — | $ | 22,908,000 | ||||||||
Equity securities
|
1,267,000 | — | — | 1,267,000 | ||||||||||||
Money market funds and cash
|
1,165,000 | — | — | 1,165,000 | ||||||||||||
Mutual funds
|
1,002,000 | — | — | 1,002,000 | ||||||||||||
Other
|
— | 545,000 | — | 545,000 | ||||||||||||
Total assets
|
$ | 3,434,000 | $ | 23,453,000 | $ | — | $ | 26,887,000 | ||||||||
Liabilities:
|
||||||||||||||||
Contingent consideration
|
$ | — | $ | — | $ | 1,150,000 | $ | 1,150,000 |
The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (the “LCP”) principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company and are classified within Level 2 and are valued using a market approach. Certain other assets of the LCP represent investments in HEICO common stock and money market funds that are classified within Level 1. The majority of the assets of the Company’s other deferred compensation plan are principally invested in equity securities, mutual funds and money market funds that are classified within Level 1. A portion of the assets within the other deferred compensation plan is currently invested in a fund that invests in future and forward contracts; most of which are privately negotiated with counterparties without going through a public exchange, and that use trading methods that are proprietary and confidential. These assets are therefore classified within Level 3 and are valued using a market approach with corresponding gains and losses reported within other income in the Company’s Condensed Consolidated Statement of Operations. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $33,548,000 as of July 31, 2011 and $26,887,000 as of October 31, 2010, of which the LCP related assets were $29,315,000 and $22,604,000 as of July 31, 2011 and October 31, 2010, respectively. The related liabilities of the two deferred compensation plans are included within other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $33,924,000 as of July 31, 2011 and $26,506,000 as of October 31, 2010, of which the LCP related liability was $29,691,000 and $22,223,000 as of July 31, 2011 and October 31, 2010, respectively.
|
Balance as of October 31, 2010
|
$ | — | ||
Purchases
|
550,000 | |||
Total unrealized gains
|
22,000 | |||
Balance as of July 31, 2011
|
$ | 572,000 |
Nine months ended July 31,
|
Three months ended July 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net income attributable to HEICO
|
$ | 54,306,000 | $ | 39,296,000 | $ | 20,402,000 | $ | 14,930,000 | ||||||||
Denominator:
|
||||||||||||||||
Weighted average common shares outstanding-basic
|
41,572,003 | 40,991,421 | 41,729,088 | 41,146,913 | ||||||||||||
Effect of dilutive stock options
|
907,207 | 1,200,347 | 840,545 | 1,099,926 | ||||||||||||
Weighted average common shares outstanding-diluted
|
42,479,210 | 42,191,768 | 42,569,633 | 42,246,839 | ||||||||||||
Net income per share attributable to HEICO shareholders:
|
||||||||||||||||
Basic
|
$ | 1.31 | $ | .96 | $ | .49 | $ | .36 | ||||||||
Diluted
|
$ | 1.28 | $ | .93 | $ | .48 | $ | .35 | ||||||||
Anti-dilutive stock options excluded
|
355,417 | 540,365 | 273,125 | 539,063 |
Other,
|
||||||||||||||||
Primarily
|
||||||||||||||||
Segment
|
Corporate and
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Intersegment
|
Totals
|
|||||||||||||
Nine months ended July 31, 2011:
|
||||||||||||||||
Net sales
|
$ | 395,193,000 | $ | 162,477,000 | $ | (1,698,000 | ) | $ | 555,972,000 | |||||||
Depreciation and amortization
|
7,683,000 | 5,458,000 | 285,000 | 13,426,000 | ||||||||||||
Operating income
|
68,385,000 | 44,556,000 | (11,950,000 | ) | 100,991,000 | |||||||||||
Capital expenditures
|
4,118,000 | 1,555,000 | 37,000 | 5,710,000 | ||||||||||||
Nine months ended July 31, 2010:
|
||||||||||||||||
Net sales
|
$ | 301,145,000 | $ | 147,231,000 | $ | (726,000 | ) | $ | 447,650,000 | |||||||
Depreciation and amortization
|
7,467,000 | 5,817,000 | 294,000 | 13,578,000 | ||||||||||||
Operating income
|
50,332,000 | 39,961,000 | (10,799,000 | ) | 79,494,000 | |||||||||||
Capital expenditures
|
5,513,000 | 1,214,000 | 16,000 | 6,743,000 | ||||||||||||
Three months ended July 31, 2011:
|
||||||||||||||||
Net sales
|
$ | 140,748,000 | $ | 57,166,000 | $ | (647,000 | ) | $ | 197,267,000 | |||||||
Depreciation and amortization
|
2,669,000 | 1,771,000 | 95,000 | 4,535,000 | ||||||||||||
Operating income
|
24,551,000 | 15,373,000 | (4,218,000 | ) | 35,706,000 | |||||||||||
Capital expenditures
|
1,155,000 | 677,000 | 33,000 | 1,865,000 | ||||||||||||
Three months ended July 31, 2010:
|
||||||||||||||||
Net sales
|
$ | 104,323,000 | $ | 54,107,000 | $ | (160,000 | ) | $ | 158,270,000 | |||||||
Depreciation and amortization
|
2,493,000 | 2,111,000 | 96,000 | 4,700,000 | ||||||||||||
Operating income
|
17,557,000 | 15,198,000 | (3,762,000 | ) | 28,993,000 | |||||||||||
Capital expenditures
|
1,696,000 | 434,000 | 13,000 | 2,143,000 |
Other,
|
||||||||||||||||
Segment
|
Primarily
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Corporate |
Totals
|
|||||||||||||
Total assets as of July 31, 2011
|
$ | 453,630,000 | $ | 329,640,000 | $ | 71,472,000 | $ | 854,742,000 | ||||||||
Total assets as of October 31, 2010
|
410,666,000 | 328,577,000 | 42,400,000 | 781,643,000 |
Nine months ended July 31,
|
||||||||
2011
|
2010
|
|||||||
Balances as of beginning of fiscal year
|
$ | 1,636,000 | $ | 1,022,000 | ||||
Accruals for warranties
|
1,052,000 | 1,251,000 | ||||||
Warranty claims settled
|
(722,000 | ) | (855,000 | ) | ||||
Acquired warranty liabilities
|
— | 80,000 | ||||||
Balances as of July 31
|
$ | 1,966,000 | $ | 1,498,000 |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Nine months ended July 31,
|
Three months ended July 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
$ | 555,972,000 | $ | 447,650,000 | $ | 197,267,000 | $ | 158,270,000 | ||||||||
Cost of sales
|
355,850,000 | 286,351,000 | 127,442,000 | 100,717,000 | ||||||||||||
Selling, general and administrative expenses
|
99,131,000 | 81,805,000 | 34,119,000 | 28,560,000 | ||||||||||||
Total operating costs and expenses
|
454,981,000 | 368,156,000 | 161,561,000 | 129,277,000 | ||||||||||||
Operating income
|
$ | 100,991,000 | $ | 79,494,000 | $ | 35,706,000 | $ | 28,993,000 | ||||||||
Net sales by segment:
|
||||||||||||||||
Flight Support Group
|
$ | 395,193,000 | $ | 301,145,000 | $ | 140,748,000 | $ | 104,323,000 | ||||||||
Electronic Technologies Group
|
162,477,000 | 147,231,000 | 57,166,000 | 54,107,000 | ||||||||||||
Intersegment sales
|
(1,698,000 | ) | (726,000 | ) | (647,000 | ) | (160,000 | ) | ||||||||
$ | 555,972,000 | $ | 447,650,000 | $ | 197,267,000 | $ | 158,270,000 | |||||||||
Operating income by segment:
|
||||||||||||||||
Flight Support Group
|
$ | 68,385,000 | $ | 50,332,000 | $ | 24,551,000 | $ | 17,557,000 | ||||||||
Electronic Technologies Group
|
44,556,000 | 39,961,000 | 15,373,000 | 15,198,000 | ||||||||||||
Other, primarily corporate
|
(11,950,000 | ) | (10,799,000 | ) | (4,218,000 | ) | (3,762,000 | ) | ||||||||
$ | 100,991,000 | $ | 79,494,000 | $ | 35,706,000 | $ | 28,993,000 | |||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Gross profit
|
36.0 | % | 36.0 | % | 35.4 | % | 36.4 | % | ||||||||
Selling, general and administrative expenses
|
17.8 | % | 18.3 | % | 17.3 | % | 18.0 | % | ||||||||
Operating income
|
18.2 | % | 17.8 | % | 18.1 | % | 18.3 | % | ||||||||
Interest expense
|
— | .1 | % | — | .1 | % | ||||||||||
Other income (expense)
|
— | .1 | % | — | — | |||||||||||
Income tax expense
|
5.4 | % | 6.0 | % | 4.7 | % | 5.9 | % | ||||||||
Net income attributable to noncontrolling interests
|
3.0 | % | 2.9 | % | 3.0 | % | 2.9 | % | ||||||||
Net income attributable to HEICO
|
9.8 | % | 8.8 | % | 10.3 | % | 9.4 | % |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
EXHIBITS
|
Exhibit
|
Description
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.*
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.*
|
32.1
|
Section 1350 Certification of Chief Executive Officer.**
|
32.2
|
Section 1350 Certification of Chief Financial Officer.**
|
101.INS
|
XBRL Instance Document.^
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.^
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.^
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.^
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.^
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.^
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
^
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections.
|
HEICO CORPORATION
|
|||
Date: September 1, 2011
|
By:
|
/s/ THOMAS S. IRWIN | |
Thomas S. Irwin
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
|
|||
Exhibit
|
Description
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
|
32.1
|
Section 1350 Certification of Chief Executive Officer.
|
32.2
|
Section 1350 Certification of Chief Financial Officer.
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
I have reviewed this quarterly report on Form 10-Q of HEICO Corporation;
|
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
(4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: September 1, 2011
|
/s/ LAURANS A. MENDELSON
|
Laurans A. Mendelson
|
|
Chief Executive Officer
|
(1)
|
I have reviewed this quarterly report on Form 10-Q of HEICO Corporation;
|
|
(2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
(3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
(4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
(5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: September 1, 2011
|
/s/ THOMAS S. IRWIN
|
Thomas S. Irwin
|
|
Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: September 1, 2011
|
/s/ LAURANS A. MENDELSON
|
Laurans A. Mendelson
|
|
Chief Executive Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: September 1, 2011
|
/s/ THOMAS S. IRWIN
|
Thomas S. Irwin
|
|
Chief Financial Officer
|
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details) (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2011
|
Jul. 31, 2010
|
Jul. 31, 2011
|
Jul. 31, 2010
|
|
Numerator: | ||||
Net income attributable to HEICO | $ 20,402,000 | $ 14,930,000 | $ 54,306,000 | $ 39,296,000 |
Denominator: | ||||
Weighted average common shares outstanding-basic | 41,729,088 | 41,146,913 | 41,572,003 | 40,991,421 |
Effect of dilutive stock options | 840,545 | 1,099,926 | 907,207 | 1,200,347 |
Weighted average common shares outstanding-diluted | 42,569,633 | 42,246,839 | 42,479,210 | 42,191,768 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.49 | $ 0.36 | $ 1.31 | $ 0.96 |
Diluted (in dollars per share) | $ 0.48 | $ 0.35 | $ 1.28 | $ 0.93 |
Anti-dilutive stock options excluded | 273,125 | 539,063 | 355,417 | 540,365 |
CONDENSED CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] (USD $)
|
Jul. 31, 2011
|
Oct. 31, 2010
|
---|---|---|
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 16,740,363 | 16,407,506 |
Common Stock, shares outstanding | 16,740,363 | 16,407,506 |
Series B Junior Participating Preferred Stock
|
||
Preferred Stock, shares authorized | 300,000 | 300,000 |
Preferred Stock, shares issued | 0 | 0 |
Series C Junior Participating Preferred Stock
|
||
Preferred Stock, shares authorized | 300,000 | 300,000 |
Preferred Stock, shares issued | 0 | 0 |
Class A Common Stock
|
||
Common Stock, par value (in dollar per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 25,010,037 | 24,829,465 |
Common Stock, shares outstanding | 25,010,037 | 24,829,465 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2011
|
Jul. 31, 2010
|
Jul. 31, 2011
|
Jul. 31, 2010
|
|
Net sales | $ 197,267,000 | $ 158,270,000 | $ 555,972,000 | $ 447,650,000 |
Operating costs and expenses: | ||||
Cost of sales | 127,442,000 | 100,717,000 | 355,850,000 | 286,351,000 |
Selling, general and administrative expenses | 34,119,000 | 28,560,000 | 99,131,000 | 81,805,000 |
Total operating costs and expenses | 161,561,000 | 129,277,000 | 454,981,000 | 368,156,000 |
Operating income | 35,706,000 | 28,993,000 | 100,991,000 | 79,494,000 |
Interest expense | (7,000) | (136,000) | (99,000) | (422,000) |
Other income (expense) | (57,000) | (31,000) | 149,000 | 392,000 |
Income before income taxes and noncontrolling interests | 35,642,000 | 28,826,000 | 101,041,000 | 79,464,000 |
Income tax expense | 9,250,000 | 9,300,000 | 30,000,000 | 27,000,000 |
Net income from consolidated operations | 26,392,000 | 19,526,000 | 71,041,000 | 52,464,000 |
Less: Net income attributable to noncontrolling interests | 5,990,000 | 4,596,000 | 16,735,000 | 13,168,000 |
Net income attributable to HEICO | $ 20,402,000 | $ 14,930,000 | $ 54,306,000 | $ 39,296,000 |
Net income per share attributable to HEICO shareholders: | ||||
Basic (in dollars per share) | $ 0.49 | $ 0.36 | $ 1.31 | $ 0.96 |
Diluted (in dollars per share) | $ 0.48 | $ 0.35 | $ 1.28 | $ 0.93 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 41,729,088 | 41,146,913 | 41,572,003 | 40,991,421 |
Diluted (in shares) | 42,569,633 | 42,246,839 | 42,479,210 | 42,191,768 |
Cash dividends per share (in dollars per share) | $ 0.060 | $ 0.048 | $ 0.108 | $ 0.086 |
OPERATING SEGMENTS (Details 1) (USD $)
|
Jul. 31, 2011
|
Oct. 31, 2010
|
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 854,742,000 | $ 781,643,000 |
Flight Support Group [Member]
|
||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 453,630,000 | 410,666,000 |
Electronic Technologies Group [Member]
|
||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 329,640,000 | 328,577,000 |
Other Primarily Corporate and Inter Segment [Member]
|
||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 71,472,000 | $ 42,400,000 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Other Intangible Assets (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
Changes in the carrying amount of goodwill by operating segment
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Schedule Of Identifiable Intangible Assets [Table Text Block] |
Identifiable intangible assets consist of the following:
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DOCUMENT AND ENTITY INFORMATION
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3 Months Ended | ||
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Jul. 31, 2011
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Aug. 25, 2011
Common Stock
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Aug. 25, 2011
Class A Common Stock
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Entity Registrant Name | HEICO CORP | ||
Entity Central Index Key | 0000046619 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | hei | ||
Entity Common Stock, Shares Outstanding | 16,740,363 | 25,016,912 | |
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2011 | ||
Document Fiscal Period Focus | Q3 | ||
Document Fiscal Year Focus | 2011 |
RESEARCH AND DEVELOPMENT EXPENSES (Details Textuals) (USD $)
In Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2011
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Jul. 31, 2010
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Jul. 31, 2011
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Jul. 31, 2010
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New product research and development expenses | $ 6.5 | $ 6.0 | $ 18.2 | $ 16.5 |
FAIR VALUE MEASUREMENTS (Tables)
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Fair Value Measurements (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
Assets and liabilities measured at fair value on a recurring basis
The following tables sets forth by level within the fair value hierarchy, the Company’s assets and liabilities that were measured at fair value on a recurring basis:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
Company’s assets measured at fair value on a recurring basis using unobservable inputs (Level 3)
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SHAREHOLDERS' EQUITY (Details Textuals) (USD $)
In Millions, except Share data |
9 Months Ended |
---|---|
Jul. 31, 2011
|
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Repurchase of common stock, shares | 102,931 |
Repurchase of common stock, amounts | $ 4.7 |
Class A Common Stock
|
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Repurchase of common stock, shares | 21,953 |
Repurchase of common stock, amounts | $ 0.7 |
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LONG-TERM DEBT
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt [Text Block] | 5. LONG-TERM DEBT Long-term debt consists of the following:
As of July 31, 2011, the Company had no borrowings under its $300 million revolving credit facility, which does not mature until May 2013, and as of October 31, 2010, the weighted average interest rate on borrowings under the revolving credit facility was .9%. The revolving credit facility contains both financial and non-financial covenants. As of July 31, 2011, the Company was in compliance with all such covenants. |
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Tables)
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Net Income Per Share Attributable To Heico Shareholders (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
Computation of basic and diluted net income per share attributable to HEICO shareholders
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INCOME TAXES (Details Textuals) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Jul. 31, 2011
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Jan. 31, 2011
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Oct. 31, 2010
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Tax Credit Carryforward [Line Items] | |||
Unrecognized tax benefits on uncertain tax position | $ 2,261,000 | $ 2,306,000 | |
Unrecognized tax benefits that would impact effective tax rate | 1,822,000 | ||
Aggregate net income impact from tax related items | 2,000,000 | ||
Net income impact from amended state tax returns | 900,000 | ||
Net income impact from research and development tax credits | 900,000 | 800,000 | |
Net income impact from prior year tax return to accrual adjustments | $ 200,000 |
INCOME TAXES (Tables)
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Income Taxes (Tables) [Abstract] | ||||||||||||||||||||||||||
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the activity related to the liability for gross unrecognized tax benefits
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REDEEMABLE NONCONTROLLING INTERESTS
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9 Months Ended |
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Jul. 31, 2011
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Temporary Equity Redeemable Noncontrolling Interests [Abstract] | |
Temporary Equity Redeemable Noncontrolling Interests [Text Block] | 10. REDEEMABLE NONCONTROLLING INTERESTS The holders of equity interests in certain of the Company’s subsidiaries have rights (“Put Rights”) that may be exercised on varying dates causing the Company to purchase their equity interests beginning in fiscal 2012 through fiscal 2018. The Put Rights, all of which relate either to common shares or membership interests in limited liability companies, provide that the cash consideration to be paid for their equity interests (the “Redemption Amount”) be at fair value or at a formula that management intended to reasonably approximate fair value based solely on a multiple of future earnings over a measurement period. As of July 31, 2011, management’s estimate of the aggregate Redemption Amount of all Put Rights that the Company would be required to pay is approximately $54 million. The actual Redemption Amount will likely be different. The aggregate Redemption Amount of all Put Rights was determined using probability adjusted internal estimates of future earnings of the Company’s subsidiaries with Put Rights while considering the earliest exercise date, the measurement period and any applicable fair value adjustments. The portion of the estimated Redemption Amount as of July 31, 2011 redeemable at fair value is approximately $31 million and the portion redeemable based solely on a multiple of future earnings is approximately $23 million. The portion of periodic adjustments to the Redemption Amount based on fair value, if any, will have no effect on net income per share attributable to HEICO shareholders whereas the portion of periodic adjustments to the carrying amount of redeemable noncontrolling interests based solely on a multiple of future earnings in excess of fair value, if any, will affect net income per share attributable to HEICO shareholders. As discussed in Note 2, Acquisitions, the Company entered into an agreement to acquire an 80.1% interest in a subsidiary by the FSG in December 2010. As part of the agreement, the Company has the right to purchase the noncontrolling interests over a two-year period beginning in fiscal 2015, or sooner under certain conditions, and the noncontrolling interest holders have the right to cause the Company to purchase the same equity interests over the same period. The estimated amount of Put Rights related to the acquisition is included in the aggregate Redemption Amount above. In February 2011, the Company, through HEICO Aerospace, acquired an additional 8% equity interest in one of its subsidiaries, which increased the Company’s ownership interest to 80%. In April 2011, the Company, through HEICO Electronic, acquired an additional 2.6% equity interest in one of its subsidiaries, which increased the Company’s ownership interest to 95.9%. The purchase prices of the redeemable noncontrolling interests acquired during the second quarter of fiscal 2011 were paid using cash provided by operating activities. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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9 Months Ended |
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Jul. 31, 2011
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Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements of HEICO Corporation and its subsidiaries (collectively, “HEICO,” or the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Therefore, the condensed consolidated financial statements do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2010. The October 31, 2010 Condensed Consolidated Balance Sheet has been derived from the Company’s audited consolidated financial statements. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations and statements of cash flows for such interim periods presented. The results of operations for the nine months ended July 31, 2011 are not necessarily indicative of the results which may be expected for the entire fiscal year. StockSplit In March 2011, the Company’s Board of Directors declared a 5-for-4 stock split on both classes of the Company’s common stock. The stock split was effected as of April 26, 2011 in the form of a 25% stock dividend distributed to shareholders of record as of April 15, 2011. All applicable share and per share information has been adjusted retrospectively to give effect to the 5-for-4 stock split. New Accounting Pronouncements In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Improving Disclosures About Fair Value Measurements,” which requires additional disclosures regarding transfers in and out of Level 1 and Level 2 fair value measurements and more detailed information of activity in Level 3 fair value measurements. The Company adopted ASU 2010-06 as of the beginning of fiscal 2010, except the additional Level 3 disclosures, which are effective in fiscal years beginning after December 15, 2010, or as of fiscal 2012 for HEICO. The Company will make the additional Level 3 disclosures, if applicable, as of the date of adoption. In December 2010, the FASB issued ASU 2010-29, “Disclosure of Supplementary Pro Forma Information for Business Combinations.” Under ASU 2010-29, supplemental pro forma information disclosures pertaining to acquisitions should be presented as if the business combination(s) occurred as of the beginning of the prior annual period when comparative financial statements are presented. ASU 2010-29 is effective for business combinations consummated in fiscal periods beginning after December 15, 2010. Early adoption is permitted and the Company adopted the new guidance on a prospective basis as of December 2010. In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income,” which requires the presentation of total comprehensive income, the components of net income and the components of other comprehensive income in either a single continuous statement of comprehensive income or in two separate, but consecutive statements. ASU 2011-05 eliminates the option to present other comprehensive income and its components in the statement of shareholders’ equity and requires reclassification adjustments for items that were reclassified from other comprehensive income and net income to be presented on the face of the financial statements. ASU 2011-05 must be applied retroactively and is effective for fiscal years and interim periods within those years beginning after December 15, 2011, or in the second quarter of fiscal 2012 for HEICO. The Company is currently evaluating which presentation option it will elect, but the adoption of these provisions will have no effect on its results of operations, financial position or cash flows. |
SELECTED FINANCIAL STATEMENT INFORMATION (Details 3) (USD $)
|
Jul. 31, 2011
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Oct. 31, 2010
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Land | $ 3,656,000 | $ 3,656,000 |
Buildings and improvements | 39,493,000 | 38,772,000 |
Machinery, equipment and tooling | 92,423,000 | 85,095,000 |
Construction in progress | 2,164,000 | 6,319,000 |
Property, plant and equipment, gross | 137,736,000 | 133,842,000 |
Less: Accumulated depreciation and amortization | (80,749,000) | (74,839,000) |
Property, plant and equipment, net | $ 56,987,000 | $ 59,003,000 |
FAIR VALUE MEASUREMENTS
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | 7. FAIR VALUE MEASUREMENTS The following tables sets forth by level within the fair value hierarchy, the Company’s assets and liabilities that were measured at fair value on a recurring basis:
The Company maintains two non-qualified deferred compensation plans. The assets of the HEICO Corporation Leadership Compensation Plan (the “LCP”) principally represent cash surrender values of life insurance policies, which derive their fair values from investments in mutual funds that are managed by an insurance company and are classified within Level 2 and are valued using a market approach. Certain other assets of the LCP represent investments in HEICO common stock and money market funds that are classified within Level 1. The majority of the assets of the Company’s other deferred compensation plan are principally invested in equity securities, mutual funds and money market funds that are classified within Level 1. A portion of the assets within the other deferred compensation plan is currently invested in a fund that invests in future and forward contracts; most of which are privately negotiated with counterparties without going through a public exchange, and that use trading methods that are proprietary and confidential. These assets are therefore classified within Level 3 and are valued using a market approach with corresponding gains and losses reported within other income in the Company’s Condensed Consolidated Statement of Operations. The assets of both plans are held within irrevocable trusts and classified within other assets in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $33,548,000 as of July 31, 2011 and $26,887,000 as of October 31, 2010, of which the LCP related assets were $29,315,000 and $22,604,000 as of July 31, 2011 and October 31, 2010, respectively. The related liabilities of the two deferred compensation plans are included within
other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets and have an aggregate value of $33,924,000 as of July 31, 2011 and $26,506,000 as of October 31, 2010, of which the LCP related liability was $29,691,000 and $22,223,000 as of July 31, 2011 and October 31, 2010, respectively. Changes in the Company’s assets measured at fair value on a recurring basis using unobservable inputs (Level 3) for the nine months ended July 31, 2011 are as follows:
The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the nine months ended July 31, 2011. As part of the agreement to acquire a subsidiary by the ETG in fiscal 2010, the Company may be obligated to pay contingent consideration of up to $2,000,000 in fiscal 2013 should the acquired entity meet certain earnings objectives during the second and third years following the acquisition. The $1,150,000 fair value of the contingent consideration was determined as of the acquisition date using a discounted cash flow model and probability adjusted internal estimates of the subsidiary’s future earnings and is classified in Level 3. There have been no subsequent changes in the fair value of this contingent consideration as of July 31, 2011 and this obligation is included in other long-term liabilities in the Company’s Condensed Consolidated Balance Sheet. Changes in the fair value of contingent consideration will be recorded in the Company’s condensed consolidated statements of operations. The carrying amounts of
the Company’s cash and cash equivalents, accounts receivable, trade accounts payable and accrued expenses and other current liabilities approximate fair value as of July 31, 2011 due to the relatively short maturity of the respective instruments. The carrying amount of long-term debt approximates fair value due to its variable interest rates. |
OPERATING SEGMENTS
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Jul. 31, 2011
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 12. OPERATING SEGMENTS Information on the Company’s two operating segments, the Flight Support Group (“FSG”), consisting of HEICO Aerospace Holdings Corp. and its subsidiaries, and the Electronic Technologies Group (“ETG”), consisting of HEICO Electronic Technologies Corp. and its subsidiaries, for the nine months and three months ended July 31, 2011 and 2010, respectively, is as follows:
Total assets by operating segment as of July 31, 2011 and October 31, 2010 are as follows:
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SHAREHOLDERS' EQUITY
|
9 Months Ended |
---|---|
Jul. 31, 2011
|
|
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. SHAREHOLDERS’ EQUITY During the nine months ended July 31, 2011, the Company repurchased an aggregate 102,931 shares of Common Stock at a total cost of approximately $4.7 million and an aggregate 21,953 shares of Class A Common Stock at a total cost of approximately $.7 million. The transactions occurred as settlement for employee taxes due pertaining to exercises of non-qualified stock options and did not impact the number of shares authorized for future purchase under the Company’s share repurchase program. |
SELECTED FINANCIAL STATEMENT INFORMATION (Details) (USD $)
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Jul. 31, 2011
|
Oct. 31, 2010
|
---|---|---|
Accounts receivable | $ 102,666,000 | $ 94,283,000 |
Less: Allowance for doubtful accounts | (2,244,000) | (2,468,000) |
Accounts receivable, net | $ 100,422,000 | $ 91,815,000 |
INCOME TAXES
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9 Months Ended | |||||||||||||||||||||||||
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Jul. 31, 2011
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | 6. INCOME TAXES As of July 31, 2011, the Company’s liability for gross unrecognized tax benefits related to uncertain tax positions was $2,261,000 of which $1,822,000 would decrease the Company’s income tax expense and effective income tax rate if the tax benefits were recognized. A reconciliation of the activity related to the liability for gross unrecognized tax benefits for the nine months ended July 31, 2011 is as follows:
There were no material changes in the liability for unrecognized tax positions resulting from tax positions taken during the current or a prior year, settlements with other taxing authorities or a lapse of applicable statutes of limitations. The accrual of interest and penalties related to the unrecognized tax benefits was not material for the nine months ended July 31, 2011. Further, the Company does not expect the total amount of unrecognized tax benefits to materially change in the next twelve months. In December 2010, Section 41 of the Internal Revenue Code, “Credit for Increasing Research Activities,” was retroactively extended for two years to cover the period from January 1, 2010 to December 31, 2011. As a result, the Company recognized an income tax credit for qualified research and development activities for the last ten months of fiscal 2010 in the first quarter of fiscal 2011. The tax credit, net of expenses, increased net income attributable to HEICO by approximately $.8 million in the first quarter of fiscal 2011. During the third quarter of fiscal 2011, the Company filed its fiscal 2010 U.S. federal and state tax returns and amended certain prior year state tax returns. As a result, the Company recognized an aggregate benefit from tax related items, which increased net income attributable to HEICO by approximately $2.0 million, net of expenses, principally from state income apportionment updates ($.9 million), higher research and development tax credits ($.9 million) and other prior year tax return to accrual adjustments ($.2 million). The state income apportionment related benefit principally reflects a change to the applicable methodology for apportioning income to certain states in the fiscal 2010 and amended returns. The higher research and development tax credits reflect the finalization of a study of qualifying fiscal 2010 research and development activities and reduction in the liability for gross unrecognized research and development related tax positions due to both lapses of statutes of limitations and the conclusion of a foreign research and development tax credit audit. |
OPERATING SEGMENTS (Details) (USD $)
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3 Months Ended | 9 Months Ended | ||
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Jul. 31, 2011
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Jul. 31, 2010
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Jul. 31, 2011
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Jul. 31, 2010
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Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | $ 197,267,000 | $ 158,270,000 | $ 555,972,000 | $ 447,650,000 |
Depreciation and amortization | 4,535,000 | 4,700,000 | 13,426,000 | 13,578,000 |
Operating income | 35,706,000 | 28,993,000 | 100,991,000 | 79,494,000 |
Capital expenditures | 1,865,000 | 2,143,000 | 5,710,000 | 6,743,000 |
Flight Support Group [Member]
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Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | 140,748,000 | 104,323,000 | 395,193,000 | 301,145,000 |
Depreciation and amortization | 2,669,000 | 2,493,000 | 7,683,000 | 7,467,000 |
Operating income | 24,551,000 | 17,557,000 | 68,385,000 | 50,332,000 |
Capital expenditures | 1,155,000 | 1,696,000 | 4,118,000 | 5,513,000 |
Electronic Technologies Group [Member]
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Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | 57,166,000 | 54,107,000 | 162,477,000 | 147,231,000 |
Depreciation and amortization | 1,771,000 | 2,111,000 | 5,458,000 | 5,817,000 |
Operating income | 15,373,000 | 15,198,000 | 44,556,000 | 39,961,000 |
Capital expenditures | 677,000 | 434,000 | 1,555,000 | 1,214,000 |
Other Primarily Corporate and Inter Segment [Member]
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Segment Reporting, Reconciling Item For Operating Profit (Loss) and Capital Expenditure From Segment To Consolidated [Line Items] | ||||
Net sales | (647,000) | (160,000) | (1,698,000) | (726,000) |
Depreciation and amortization | 95,000 | 96,000 | 285,000 | 294,000 |
Operating income | (4,218,000) | (3,762,000) | (11,950,000) | (10,799,000) |
Capital expenditures | $ 33,000 | $ 13,000 | $ 37,000 | $ 16,000 |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME [PARENTHETICAL] (USD $)
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3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2011
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Jul. 31, 2010
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Jul. 31, 2011
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Jul. 31, 2010
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Cash dividends per share | $ 0.060 | $ 0.048 | $ 0.108 | $ 0.086 |
ACQUISITIONS
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9 Months Ended |
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Jul. 31, 2011
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Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 2. ACQUISITIONS In December 2010, the Company, through its HEICO Aerospace Holdings Corp. (“HEICO Aerospace”) subsidiary, acquired 80.1% of the assets and assumed certain liabilities of Blue Aerospace LLC. Blue Aerospace is a supplier, distributor, and integrator of military aircraft parts and support services primarily to foreign military organizations allied with the United States. The remaining 19.9% interest continues to be owned by certain members of Blue Aerospace’s management team (see Note 10, Redeemable Noncontrolling Interests, for additional information). The total consideration for this acquisition and related allocation to the tangible and identifiable intangible assets acquired and liabilities assumed is not material or significant to the Company’s condensed consolidated financial statements. The purchase price was paid in cash principally using proceeds from the Company’s revolving credit facility. The operating results of the Company’s fiscal 2011 acquisition were included in the Company’s results of operations from the effective acquisition date. The amount of net sales and earnings of the fiscal 2011 acquisition included in the Condensed Consolidated Statements of Operations is not material. Had the fiscal 2011 acquisition been consummated as of November 1, 2009, net sales, net income from consolidated operations, net income attributable to HEICO, and basic and diluted net income per share attributable to HEICO shareholders on a pro forma basis for the nine months and three months ended July 31, 2011 and 2010 would not have been materially different than the reported amounts. As part of the purchase agreements associated with certain prior year acquisitions, the Company may be obligated to pay additional purchase consideration based on the acquired subsidiary meeting certain earnings objectives following the acquisition. For acquisitions consummated prior to fiscal 2010, the Company accrues an estimate of additional purchase consideration when the earnings objectives are met. During the second and third quarters of fiscal 2011, the Company through its HEICO Electronic Technologies Corp. (“HEICO Electronic”) subsidiary, paid $4.1 million and $1.3 million, respectively, of such additional purchase consideration using cash provided by operating activities. During the third quarter of fiscal 2011, HEICO Electronic accrued $1.2 million of additional purchase consideration related to a prior year acquisition for which the earnings objectives were met during fiscal 2011. The aforementioned amounts paid and accrued were based on a multiple of each applicable subsidiary’s earnings relative to target and were not contingent upon the former shareholders of the respective acquired entity remaining employed by the Company or providing future services to the Company. Accordingly, these amounts represent an additional cost of the respective entity recorded as additional goodwill. Information regarding additional contingent purchase consideration related to acquisitions prior to fiscal 2010 may be found in Note 13, Commitments and Contingencies. |
LONG-TERM DEBT (Details) (USD $)
|
Jul. 31, 2011
|
Oct. 31, 2010
|
---|---|---|
Borrowings under revolving credit facility | $ 0 | $ 14,000,000 |
Notes payable and capital leases | 100,000 | 221,000 |
Total debt and capital leases | 100,000 | 14,221,000 |
Less: Current maturities of long-term debt | (45,000) | (148,000) |
Long-term debt, net of current maturities | $ 55,000 | $ 14,073,000 |
ACQUISITIONS (Details Textuals) (USD $)
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1 Months Ended | 3 Months Ended | 9 Months Ended | |
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Dec. 31, 2010
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Jul. 31, 2011
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Apr. 30, 2011
|
Jul. 31, 2011
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Percentage of voting equity interests acquired in the business combination | 80.10% | 80.10% | ||
Name of the entity in which interest is owned. | Blue Aerospace LLC. | |||
Period in which the acquirer obtains control of the acquiree | 31-Dec-10 | |||
Description of the acquired entity | Blue Aerospace is a supplier, distributor, and integrator of military aircraft parts and support services primarily to foreign military organizations allied with the United States. | |||
Percentage of interest owned by noncontrolling shareholders | 19.90% | 19.90% | ||
Payment to acquire additional consideration | $ 1,300,000 | $ 4,100,000 | $ 1,278,000 | |
Accrued additional purchase consideration from a prior acquisition | $ 1,200,000 | $ 1,198,000 |
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS (Details Textuals) (USD $)
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3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2011
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Jul. 31, 2010
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Jul. 31, 2011
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Jul. 31, 2010
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Adjustment to the redemption amount of redeemable noncontrolling interest. | $ (980,000) | $ 272,000 | $ (1,619,000) | $ (39,000) |
SELECTED FINANCIAL STATEMENT INFORMATION
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Jul. 31, 2011
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Selected Financial Statement Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Statement Information [Text Block] | 3. SELECTED FINANCIAL STATEMENT INFORMATION Accounts Receivable
Costs and Estimated Earnings on Uncompleted Percentage-of-Completion Contracts
The percentage of the Company’s net sales recognized under the percentage-of-completion method was not material for the nine months ended July 31, 2011 and 2010. Changes in estimates pertaining to percentage-of-completion contracts did not have a material effect on net income from consolidated operations for the nine months ended July 31, 2011 and 2010. Inventories
Inventories related to long-term contracts were not significant as of July 31, 2011 and October 31, 2010. Property, Plant and Equipment
Accrued Customer Rebates and Credits The aggregate amount of accrued customer rebates and credits included within accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets was $7,606,000 and $9,230,000 as of July 31, 2011 and October 31, 2010, respectively. The total customer rebates and credits deducted within net sales for the nine months ended July 31, 2011 and 2010 was $6,704,000 and $6,642,000, respectively. The total customer rebates and credits deducted within net sales for the three months ended July 31, 2011 and 2010 was $2,288,000 and $2,244,000, respectively. |
INCOME TAXES (Details) (USD $)
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9 Months Ended |
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Jul. 31, 2011
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Balance as of October 31, 2010 | $ 2,306,000 |
Decreases related to prior year tax positions | (192,000) |
Increases related to current year tax positions | 497,000 |
Lapse of statutes of limitations | (350,000) |
Balance as of July 31, 2011 | $ 2,261,000 |
OPERATING SEGMENTS (Tables)
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Jul. 31, 2011
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Operating Segments (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information by Segment [Table Text Block] |
Segment revenues and consolidated segment reporting income
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
Total assets by operating segment
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SELECTED FINANCIAL STATEMENT INFORMATION (Details 1) (USD $)
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Jul. 31, 2011
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Oct. 31, 2010
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Costs incurred on uncompleted contracts | $ 4,442,000 | $ 6,323,000 |
Estimated earnings | 4,059,000 | 7,603,000 |
Total costs incurred and estimated earnings on uncompleted percentage-of-completion contracts | 8,501,000 | 13,926,000 |
Less: Billings to date | (4,876,000) | (8,967,000) |
Costs and estimated earnings on uncompleted contracts, net | 3,625,000 | 4,959,000 |
Included in the accompanying Condensed Consolidated Balance Sheets under the following captions: | ||
Accounts receivable, net (costs and estimated earnings in excess of billings) | 3,625,000 | 5,135,000 |
Accrued expenses and other current liabilities (billings in excess of costs and estimated earnings) | 0 | (176,000) |
Costs and estimated earnings on uncompleted contracts, net | $ 3,625,000 | $ 4,959,000 |
LONG-TERM DEBT (Details Textuals) (USD $)
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9 Months Ended | |
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Jul. 31, 2011
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Oct. 31, 2010
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Revolving credit facility, maturity date | May 2013 | |
Weighted average interest rate | 0.90% | |
Maximum amount of borrowing capacity under our credit facility | $ 300,000,000 | |
Revolving credit covenant compliance | Entity is in compliance | |
Borrowings under revolving credit facility | $ 0 | $ 14,000,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
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9 Months Ended |
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Jul. 31, 2011
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Retroactive impact due to the stock split | In March 2011, the Company's Board of Directors declared a 5-for-4 stock split on both classes of the Company's common stock. The stock split was effected as of April 26, 2011 in the form of a 25% stock dividend distributed to shareholders of record as of April 15, 2011. All applicable share and per share information has been adjusted retrospectively to give effect to the 5-for-4 stock split. |
NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS
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Jul. 31, 2011
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | 11. NET INCOME PER SHARE ATTRIBUTABLE TO HEICO SHAREHOLDERS The computation of basic and diluted net income per share attributable to HEICO shareholders is as follows:
No portion of the adjustments to the redemption amount of redeemable noncontrolling interests of ($1,619,000) and ($39,000) for the nine months ended July 31, 2011 and 2010, respectively, and ($980,000) and $272,000 for the three months ended July 31, 2011 and 2010, respectively, reflect a redemption amount in excess of fair value and therefore no portion of the adjustments affect basic or diluted net income per share attributable to HEICO shareholders. |
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