Financial Performance - Consolidated net sales for the first six months of fiscal 2023 increased by 27% to a record $1,308.8 million, compared to $1,029.2 million in the same period of fiscal 2022[95]. - The Flight Support Group (FSG) reported net sales of $763.5 million, a 32% increase, while the Electronic Technologies Group (ETG) achieved net sales of $556.8 million, a 21% increase[95]. - Operating income rose by 29% to a record $286.5 million in the first six months of fiscal 2023, up from $221.6 million in the same period of fiscal 2022[100]. - The FSG's operating income increased by 55% to $183.5 million, while the ETG's operating income rose by 2% to $124.5 million[100]. - Consolidated net sales increased by 28% to a record $687.8 million in Q2 FY2023, up from $538.8 million in Q2 FY2022, driven by strong growth in both FSG and ETG segments[109]. - FSG net sales reached $392.2 million, a 28% increase, while ETG net sales were $301.8 million, a 27% increase, with FSG benefiting from 20% organic growth[109]. - Consolidated operating income rose by 28% to $157.1 million in Q2 FY2023, compared to $122.8 million in Q2 FY2022, with FSG's operating income increasing by 51%[114]. - Net income attributable to HEICO increased by 15% to a record $198.1 million, or $1.43 per diluted share, in the first six months of fiscal 2023[107]. - Net income attributable to HEICO increased by 24% to $105.1 million, or $0.76 per diluted share, in Q2 FY2023, up from $85.0 million, or $0.62 per diluted share, in Q2 FY2022[121]. Expenses and Costs - Selling, general and administrative (SG&A) expenses increased to $223.8 million in the first six months of fiscal 2023, up from $179.8 million in the same period of fiscal 2022[97]. - SG&A expenses increased to $109.4 million in Q2 FY2023 from $88.5 million in Q2 FY2022, reflecting costs related to acquisitions and net sales growth[111]. - Interest expense increased significantly to $17.4 million in the first six months of fiscal 2023, compared to $1.8 million in the same period of fiscal 2022[102]. - Consolidated gross profit margin was 38.7% in Q2 FY2023, down from 39.2% in Q2 FY2022, reflecting a 2.0% improvement in FSG's margin but a 3.5% decrease in ETG's margin[110]. Taxation - The effective tax rate increased to 19.3% in the first six months of fiscal 2023, up from 15.0% in the same period of fiscal 2022[105]. - The effective tax rate decreased to 21.2% in Q2 FY2023 from 23.7% in Q2 FY2022, primarily due to favorable tax-exempt unrealized gains[119]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $154.4 million in the first six months of FY2023, down from $174.8 million in the same period of FY2022[126]. - The company plans capital expenditures of approximately $45 to $50 million for FY2023[124]. Acquisitions - The company entered into an agreement to acquire Wencor Group for $1.9 billion in cash and stock, enhancing its aftermarket capabilities[92]. - The pending acquisition of Wencor for $1.9 billion is expected to close by the end of calendar 2023, with sufficient funds available from current credit facilities and cash on hand[132]. Financial Instruments - HEICO issued a ten-year €150 million note to Exxelia, accruing interest at 4.7% per annum[137]. - A hypothetical 10% strengthening of the U.S. dollar against the Euro would decrease the U.S. dollar equivalent of the Euro note receivable by approximately $16.8 million[137]. - The same hypothetical scenario would also decrease operating income by approximately $16.8 million[137].

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2023 financial statements reflect significant revenue and asset growth, primarily driven by the Exxelia acquisition [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $4.80 billion due to a major acquisition, significantly impacting goodwill and long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Jan 31, 2023 | Oct 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,318,799 | $1,152,730 | | Goodwill | $1,994,347 | $1,672,425 | | Intangible assets, net | $873,722 | $733,327 | | **Total assets** | **$4,804,620** | **$4,095,496** | | **Total current liabilities** | $453,496 | $420,859 | | Long-term debt, net | $781,174 | $288,620 | | **Total liabilities** | **$1,720,159** | **$1,119,589** | | **Total shareholders' equity** | **$2,744,174** | **$2,648,306** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 saw record net sales of $620.9 million (up 27%) and operating income growth of 31%, with net income up 7% Quarterly Operating Results (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Net sales | $620,915 | $490,343 | +26.6% | | Operating income | $129,434 | $98,822 | +31.0% | | Net income attributable to HEICO | $93,027 | $86,921 | +7.0% | | Diluted EPS | $0.67 | $0.63 | +6.3% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable, while investing activities saw a major outflow of $526.0 million for an acquisition, funded by increased borrowings Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended Jan 31, 2023 | Three months ended Jan 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $76,686 | $77,980 | | Net cash used in investing activities | ($525,980) | ($19,959) | | Net cash provided by (used in) financing activities | $449,175 | ($39,920) | | Net increase in cash and cash equivalents | $3,115 | $16,520 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Exxelia acquisition, strong FSG revenue growth, increased debt, and a higher effective tax rate - The company operates through two segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). Operating results in Q1 2023 improved due to recovering demand for commercial aerospace products, despite supply chain impacts from the COVID-19 pandemic[21](index=21&type=chunk)[22](index=22&type=chunk) - On January 5, 2023, the company acquired **93.69%** of Exxelia International SAS for **$515.8 million** in cash, financed by its revolving credit facility. The acquisition contributed **$15.0 million** to net sales in the quarter[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Goodwill increased by **$320.4 million** during the quarter, primarily due to **$306.4 million** from the Exxelia acquisition[40](index=40&type=chunk) - Borrowings under the revolving credit facility increased from **$275.0 million** to **$768.0 million** to finance the Exxelia acquisition. The weighted average interest rate rose to **5.5%** from **4.6%**[44](index=44&type=chunk) Net Sales by Operating Segment (in thousands) | Segment | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Flight Support Group | $371,278 | $272,681 | +36.2% | | Electronic Technologies Group | $255,059 | $222,336 | +14.7% | - The effective tax rate for Q1 2023 was **16.9%**, up from **4.1%** in Q1 2022. The increase is mainly because the tax benefit from stock option exercises was smaller in 2023 (**$6.2 million**) compared to 2022 (**$17.8 million**)[53](index=53&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes record Q1 2023 net sales growth to strong organic and acquisition contributions, anticipating continued growth despite inflation risks [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q1 2023 consolidated net sales rose 27% to $620.9 million, driven by FSG's 36% growth and ETG's 15% increase, boosting operating income by 31% - FSG's net sales increase was driven by strong organic growth of **25%** due to increased demand for commercial aerospace products and services, reflecting the continued recovery in global commercial air travel[82](index=82&type=chunk) - ETG's net sales increase was principally driven by **$32.8 million** from fiscal 2022 and 2023 acquisitions. Organic sales were flat as increased demand for electronics, aerospace, and medical products was offset by a decrease in defense product sales[82](index=82&type=chunk) - Consolidated gross profit margin improved to **39.3%** from **38.8%**, reflecting a **2.7%** improvement in the FSG's margin, partially offset by a **1.5%** decrease in the ETG's margin[83](index=83&type=chunk) Operating Income by Segment (in thousands) | Segment | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Flight Support Group | $83,609 | $52,376 | +59.6% | | Electronic Technologies Group | $56,537 | $55,588 | +1.7% | | **Consolidated Operating Income** | **$129,434** | **$98,822** | **+31.0%** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Cash was primarily used for acquisitions, funded by borrowings, with operating cash flow at $76.7 million and a debt-to-equity ratio of 28.5% - Net cash from operating activities was **$76.7 million**, slightly down from **$78.0 million** YoY, impacted by an increase in net working capital, particularly inventories, to support a larger backlog[98](index=98&type=chunk)[99](index=99&type=chunk) - Net cash used in investing activities was **$526.0 million**, primarily for an acquisition costing **$503.7 million**[100](index=100&type=chunk) - Net cash from financing activities was **$449.2 million**, mainly from borrowing **$531.0 million** under the revolving credit facility[101](index=101&type=chunk) - The company was in compliance with all debt covenants as of January 31, 2023, with a total debt to shareholders' equity ratio of **28.5%**[96](index=96&type=chunk) [Outlook](index=32&type=section&id=Outlook) Management anticipates continued sales growth for fiscal 2023, focusing on new products and acquisitions, while monitoring inflation and supply chain risks - The company anticipates continued net sales growth in both the FSG and ETG for the remainder of fiscal 2023, driven by demand for the majority of its products[94](index=94&type=chunk) - The company plans to continue its commitment to new product development, market penetration, and an aggressive acquisition strategy[94](index=94&type=chunk) - Management acknowledges that continued inflationary pressures and lingering supply chain disruptions may lead to higher material and labor costs[94](index=94&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Exxelia acquisition introduced new foreign currency risk from a €150 million note, impacting operating income with exchange rate fluctuations - A new market risk has emerged from a ten-year **€150 million** note receivable issued to Exxelia as part of its acquisition[107](index=107&type=chunk) - A hypothetical **10% strengthening** of the U.S. dollar against the Euro would decrease the value of the note receivable and operating income by approximately **$16.3 million**[107](index=107&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of January 31, 2023, with no material changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures are effective as of the end of the quarter[108](index=108&type=chunk) - There were no material changes in internal control over financial reporting during the first quarter of fiscal 2023[109](index=109&type=chunk) Part II. Other Information [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists Form 10-Q exhibits, including CEO/CFO certifications and Inline XBRL documents - The report includes certifications from the CEO and CFO under Rule 13a-14(a)/15d-14(a) and Section 1350[112](index=112&type=chunk) - Inline XBRL instance, schema, calculation, definition, label, and presentation documents are filed as exhibits[112](index=112&type=chunk) [Signatures](index=38&type=section&id=Signatures)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-04604 HEICO CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-04604 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q HEICO CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-04604 HEICO CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 juri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 ...