Financial Data and Key Metrics Changes - Consolidated operating income and net sales improved by 47% and 22% respectively in Q3 Fiscal '21 compared to Q3 Fiscal '20, which was heavily impacted by the pandemic [11] - Consolidated organic net sales growth was 17%, with total debt to shareholders' equity improving to 17.4% as of July 31, '21, down from 36.8% as of October 31, '20 [15][18] - Cash flow from operating activities increased by 33% to $124 million in Q3 Fiscal '21, up from $93.1 million in Q3 Fiscal '20 [18] Business Line Data and Key Metrics Changes - Flight Support Group reported a 250% increase in operating income and a 33% increase in net sales in Q3 Fiscal '21 compared to Q3 Fiscal '20, driven by increased demand for commercial aerospace products [12][28] - Electronic Technologies Group's net sales increased by 14% to $239.5 million in Q3 Fiscal '21, with operating income rising by 11% to $69 million [34][37] Market Data and Key Metrics Changes - The Flight Support Group's net sales for the first 9 months of Fiscal '21 were $666.7 million, down from $731.2 million in the same period of Fiscal '20, reflecting lower demand due to the pandemic [27] - Electronic Technologies Group's net sales for the first 9 months of Fiscal '21 increased by 11% to $706.2 million, driven by acquisitions and organic growth [36] Company Strategy and Development Direction - The company plans to utilize its financial strength to pursue high-quality acquisitions to accelerate growth and maximize shareholder returns [17] - Management expressed a cautious optimism regarding the recovery of commercial air travel and its impact on the markets served, while refraining from providing specific guidance for Fiscal '21 and '22 [58][59] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is a positive outlook for growth, uncertainties remain due to potential COVID-19 variants and their impact on travel [65][66] - The company is optimistic about regaining pre-pandemic levels of activity by the end of calendar '22, but acknowledges the unpredictability of the recovery [73] Other Important Information - The company completed four acquisitions during Fiscal '21 and expects these to be accretive to earnings within the first 12 months following closing [17][23] - The effective tax rate increased to 15.7% in Q3 Fiscal '21, up from 13.4% in Q3 Fiscal '20, primarily due to changes in tax regulations [51][52] Q&A Session Summary Question: What are the current trends in customer behavior and order patterns? - Management indicated that while there has been a recovery in commercial travel, the situation remains fluid due to the Delta variant, making it difficult to predict future order trends [62][63] Question: What is the outlook for the DER market and its relation to Camtronics? - Management highlighted that HEICO is a leader in the independent repair and overhaul market and sees potential in developing more DERs through Camtronics [82][84] Question: What are the expectations regarding bad debt expenses as government support tapers off? - Management expressed confidence that the stress on airline partners is behind them, indicating a positive outlook for future orders and market share growth [85] Question: Can you provide insights on order rates at the Flight Support Group? - Management noted that while there was a strong sequential growth in the previous quarter, they expect a more normalized growth rate moving forward, with optimism about market share gains [91][94] Question: What are the expectations for working capital dynamics as demand picks up? - Management anticipates that while there may be an investment in receivables as sales increase, overall working capital management remains strong [100][101] Question: What is the outlook for wide-body aircraft demand? - Management expects a surge in demand for wide-body aircraft parts as international travel recovers, likely starting in the spring [116]

Part I. Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents HEICO Corporation's unaudited condensed consolidated financial statements, reflecting significant Q3 2021 operating improvements driven by aerospace recovery - The company's results in the first nine months of fiscal 2021 continue to be impacted by the COVID-19 pandemic, with demand for commercial aviation products moderated compared to pre-pandemic levels However, Q3 2021 showed **significant improvement** over Q3 2020, with the Flight Support Group reporting **four consecutive quarters** of improving net sales and operating income[21](index=21&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheet shows total assets at **$3.46 billion**, liabilities reduced to **$1.02 billion** from debt repayment, and equity increased to **$2.22 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2021 | October 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $269,816 | $406,852 | | Total current assets | $1,031,015 | $1,165,625 | | Goodwill | $1,402,876 | $1,383,167 | | Total assets | $3,461,635 | $3,547,711 | | **Liabilities & Equity** | | | | Long-term debt, net | $385,380 | $738,786 | | Total liabilities | $1,016,865 | $1,315,896 | | Total shareholders' equity | $2,220,086 | $2,010,607 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2021 net sales increased **22%** to **$471.7 million**, net income rose **42%** to **$76.9 million**, though nine-month net income declined due to a higher tax rate Key Operating Results (in thousands, except per share data) | Metric | Nine Months Ended July 31, 2021 | Nine Months Ended July 31, 2020 | Three Months Ended July 31, 2021 | Three Months Ended July 31, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,356,260 | $1,360,831 | $471,707 | $386,410 | | Operating income | $277,871 | $287,585 | $100,838 | $68,434 | | Net income attributable to HEICO | $218,158 | $251,657 | $76,889 | $54,316 | | Diluted EPS | $1.58 | $1.83 | $0.56 | $0.40 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$334.1 million**, but **$355.0 million** in debt payments resulted in a **$137.0 million** net decrease in cash Cash Flow Summary (in thousands) | Activity | Nine months ended July 31, 2021 | Nine months ended July 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $334,103 | $298,971 | | Net cash used in investing activities | ($68,890) | ($98,007) | | Net cash (used in) provided by financing activities | ($403,223) | $134,625 | | Net (decrease) increase in cash | ($137,036) | $338,277 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail recent acquisitions, revenue by segment, goodwill changes, tax rate variance, and a grand jury subpoena - In June 2021, the Flight Support Group acquired an **80.1% interest** in **Camtronics, LLC**, an FAA-certified repair station In March 2021, the Electronic Technologies Group acquired **Pyramid Semiconductor LLC**, a specialty semiconductor designer[24](index=24&type=chunk)[25](index=25&type=chunk) Net Sales by Operating Segment (Nine Months Ended July 31, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Flight Support Group | $666,732 | $731,189 | | Electronic Technologies Group | $706,182 | $638,285 | - The effective tax rate for the first nine months of fiscal 2021 was **13.3%**, compared to **3.5%** in the same period of 2020 The lower rate in 2020 was due to a significantly larger discrete tax benefit from stock option exercises (**$47.6 million** in 2020 vs **$13.5 million** in 2021)[50](index=50&type=chunk) - An indirect subsidiary received a **grand jury subpoena** in **April 2021** related to its employment of an individual and work on Navy vessels from Dec 2017 to Feb 2019 The company is cooperating with the investigation and cannot predict the outcome or potential loss[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting Q3 2021 improvements, strong balance sheet, and no FY2021 guidance due to ongoing pandemic uncertainties [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q3 2021 consolidated net sales grew **22%** and operating income surged **47%** to **$100.8 million**, driven by strong performance in both FSG and ETG Q3 2021 vs Q3 2020 Performance | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | Consolidated Net Sales | $471.7M | $386.4M | +22% | | FSG Net Sales | $237.1M | $178.2M | +33% | | ETG Net Sales | $239.5M | $210.9M | +14% | | Consolidated Operating Income | $100.8M | $68.4M | +47% | | Consolidated Operating Margin | 21.4% | 17.7% | +370 bps | - For the first nine months of FY2021, FSG net sales decreased **9% organically** due to the pandemic's impact on commercial air travel In contrast, ETG net sales grew **11%**, reflecting contributions from acquisitions (**$45.0M**) and **2% organic growth** driven by defense and other electronic products[80](index=80&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Strong operating cash flow of **$334.1 million** and **$355.0 million** in debt reduction highlight robust liquidity and capital resources - Net cash from operating activities increased to **$334.1 million** in the first nine months of FY2021, up from **$299.0 million** in the prior year period, mainly due to favorable changes in working capital[110](index=110&type=chunk)[111](index=111&type=chunk) - The company made net payments of **$355.0 million** on its revolving credit facility during the first nine months of fiscal 2021[114](index=114&type=chunk) - Fiscal 2021 capital expenditures are anticipated to be approximately **$35-$38 million**[108](index=108&type=chunk) [Outlook](index=33&type=section&id=Outlook) Management is cautiously optimistic about market recovery but withholds FY2021 guidance due to pandemic uncertainties, emphasizing a strong balance sheet - The company is **cautiously optimistic** about the recovery of commercial air travel but feels it would **not be responsible to provide fiscal 2021 net sales and earnings guidance** due to ongoing pandemic-related uncertainties[106](index=106&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk sensitivity have occurred since the October 31, 2020, Annual Report on Form 10-K - There have been **no material changes** in the company's market risk profile since its last annual report[121](index=121&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of July 31, 2021, with no material changes to internal control over financial reporting - The CEO and CFO concluded that HEICO's disclosure controls and procedures are **effective** as of the end of the reporting period[122](index=122&type=chunk) - **No material changes** to internal control over financial reporting were identified during the third quarter of fiscal 2021[123](index=123&type=chunk) Part II. Other Information [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL data files - The report includes **standard exhibits**, such as **CEO/CFO certifications** and **XBRL data files**[126](index=126&type=chunk) Signatures - The report was duly signed on **August 26, 2021**, by **Carlos L. Macau, Jr. (CFO)** and **Steven M. Walker (Chief Accounting Officer)**[132](index=132&type=chunk)

HEICO Corporation (NYSE:HEI) Q2 2021 Earnings Conference Call May 26, 2021 9:00 AM ET Company Participants Larry Mendelson - Chairman and Chief Executive Officer Eric Mendelson - Co-President and President, Flight Support Group Victor Mendelson - Co-President and President, Electronic Technologies Group Carlos Macau - Executive Vice President and Chief Financial Officer Conference Call Participants Robert Spingarn - Credit Suisse Eric Ruden - Baird Larry Solow - CJS Securities Josh Sullivan - The Benchmark ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from ______ to _______ Commission File Number: 001-04604 HEICO CORPORATION (Exact name of registrant as specified in its charter) Florida 65-0341002 (State or other jurisdict ...

HEICO Corp (NYSE:HEI) Q1 2021 Earnings Conference Call February 24, 2021 9:00 AM ET Company Participants Laurans Mendelson - Chairman & CEO Eric Mendelson - Co-President & Director Victor Mendelson - Co-President & Director Carlos Macau - EVP, CFO & Treasurer Conference Call Participants Robert Spingarn - Crédit Suisse Peter Arment - Robert W. Baird & Co. Gautam Khanna - Cowen and Company Peter Lukas - CJS Securities Kenneth Herbert - Canaccord Genuity Noah Poponak - Goldman Sachs Group Michael Ciarmoli - ...

HEICO Corporation (NYSE:HEI) Q3 2020 Earnings Conference Call August 26, 2020 9:00 AM ET Company Participants Laurans Mendelson - Chairman and Chief Executive Officer Eric Mendelson - Co-President and President of HEICO Flight Support Group Victor Mendelson - Co-President and President of HEICO Electronic Technologies Group Carlos Macau - Executive Vice President and Chief Financial Officer Conference Call Participants Robert Spingarn - Credit Suisse AG Peter Arment - Robert W. Baird & Co. Inc. Gautam Khann ...

HEICO Corporation (NYSE:HEI) Q2 2020 Earnings Conference Call May 27, 2020 9:00 AM ET Company Participants Laurans Mendelson - Chairman & Chief Executive Officer Eric Mendelson - Co-President & President of HEICO’s Flight Support Group Victor Mendelson - Co-President & President of HEICO’s Electronic Technologies Group Carlos Macau - Executive Vice President & Chief Financial Officer Conference Call Participants Robert Spingarn - Credit Suisse Peter Arment - Baird Larry Solow - CJS Securities Gautam Khanna ...

HEICO Corporation (NYSE:HEI) Q1 2020 Earnings Conference Call February 26, 2020 9:00 AM ET Company Participants Laurans Mendelson – Chairman and Chief Executive Officer Eric Mendelson – Co-President and President-HEICO’s Flight Support Group Victor Mendelson – Co-President and President-HEICO’s Electronic Technologies Group Carlos Macau – Executive Vice President and Chief Financial Officer Conference Call Participants Robert Spingarn – Credit Suisse Sheila Kahyaoglu – Jefferies Robert Stallard – Vertical R ...

HEICO Corp (NYSE:HEI) Q4 2019 Earnings Conference Call December 17, 2019 9:00 AM ET Company Participants Laurans Mendelson - Chairman & CEO Eric Mendelson - Co-President & Director Victor Mendelson - Co-President & Director Carlos Macau - EVP, CFO & Treasurer Conference Call Participants Louis Raffetto - UBS Investment Bank Robert Spingarn - Crédit Suisse Gregory Konrad - Jefferies Peter Arment - Robert W. Baird & Co. Kenneth Herbert - Canaccord Genuity Corp. Michael Ciarmoli - SunTrust Robinson Humphrey Ge ...

HEICO Corporation (NYSE:HEI) Q2 2019 Results Conference Call May 29, 2019 9:00 AM ET Company Participants Laurans Mendelson - Chairman and CEO Eric Mendelson - Co-President, HEICO and President, Flight Support Group Victor Mendelson - Co-President, HEICO and President, Electronic Technologies Group Carlos Macau - EVP and CFO Conference Call Participants Robert Spingarn - Credit Suisse Sheila Kahyaoglu - Jefferies Gautam Khanna - Cowen & Company Louis Raffetto - UBS Larry Solow - CJS Securities Peter Arment ...