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Oct 31, 2021

Heico Q4 2021 Earnings Report

Reported a 29% increase in quarterly operating income and 16% quarterly organic net sales growth as the commercial aerospace industry recovery continues.

Key Takeaways

HEICO Corporation reported a 38% increase in net income to $86.1 million, or $.62 per diluted share, in the fourth quarter of fiscal 2021, up from $62.3 million, or $.45 per diluted share, in the fourth quarter of fiscal 2020. Net sales increased 20% to $509.4 million. Operating income increased 29% to $115.0 million.

Net income increased by 38% to $86.1 million, or $0.62 per diluted share.

Net sales increased by 20% to $509.4 million.

Operating income increased by 29% to $115.0 million.

The Flight Support Group's net sales increased 34% to $260.4 million, and operating income increased 126% to $48.6 million.

Total Revenue
$509M
Previous year: $426M
+19.5%
EPS
$0.62
Previous year: $0.45
+37.8%
Operating Margin
22.6%
Previous year: 20.9%
+8.1%
EBITDA
$140M
Previous year: $113M
+23.7%
Cash from Operations
$110M
Previous year: $110M
-0.2%
Gross Profit
$204M
Previous year: $162M
+26.5%
Cash and Equivalents
$108M
Previous year: $407M
-73.4%
Free Cash Flow
$104M
Previous year: $105M
-0.7%
Total Assets
$3.5B
Previous year: $3.55B
-1.4%

Heico

Heico

Heico Revenue by Segment

Forward Guidance

HEICO did not provide fiscal 2022 net sales and earnings guidance at this time but expects the commercial air travel recovery to continue, particularly in certain domestic travel markets, while less so in international markets, even though the Pandemic will likely continue to adversely impact the commercial aerospace industry and HEICO.

Positive Outlook

  • Expect the commercial air travel recovery to continue, particularly in certain domestic travel markets.
  • Ongoing worldwide COVID-19 vaccine rollouts, including boosters, will continue to positively influence commercial air travel, and benefit the markets we serve.
  • Ongoing conservative policies.
  • Strong balance sheet.
  • High degree of liquidity enables HEICO to invest in new research and development, execute on its successful acquisition program, and position HEICO for market share gains.

Challenges Ahead

  • The Pandemic will likely continue to adversely impact the commercial aerospace industry and HEICO.
  • International markets have not recovered to the extent of domestic markets, and while we are confident of their future recovery and the potential sales increase, the timing is uncertain.
  • It is very difficult to predict the Pandemic's path and effect, including factors such as new variants and vaccination rates, which can impact our key markets.
  • Uncertainty surrounding the timing of the recovery in international markets.
  • Potential impact of new variants and vaccination rates on key markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income