HEICO (HEI) - 2024 Q4 - Annual Results

Financial Performance - Net income increased 35% to a record $139.7 million, or $0.99 per diluted share, in Q4 FY2024, compared to $103.4 million, or $0.74 per diluted share, in Q4 FY2023[1] - Net sales increased 8% to a record $1,013.7 million in Q4 FY2024, up from $936.4 million in Q4 FY2023[2] - Operating income increased 15% to a record $218.6 million in Q4 FY2024, up from $189.4 million in Q4 FY2023[2] - Operating income for the fiscal year ended October 31, 2024, reached $824,455, up 31.8% from $625,339 in 2023[41] - Net income attributable to HEICO for the fiscal year ended October 31, 2024, was $514,109, representing a 27.4% increase from $403,596 in 2023[41] - Basic net income per share attributable to HEICO shareholders for the fiscal year ended October 31, 2024, was $3.71, compared to $2.94 in 2023, reflecting a 26.2% increase[41] - HEICO's net income attributable to the company for the fiscal year ended October 31, 2024, was $514,109,000, an increase from $403,596,000 in 2023, representing a growth of 27.4%[52] - HEICO's net income attributable to HEICO for the quarter was $139,688,000, up from $103,426,000 in the same quarter of the previous year, marking a 35% increase[54] Cash Flow and Liquidity - Cash flow from operating activities increased 39% to $205.6 million in Q4 FY2024, up from $148.4 million in Q4 FY2023[9] - Cash and cash equivalents at the end of the fiscal year on October 31, 2024, were $162,103, down from $171,048 in 2023[48] - HEICO's cash and cash equivalents were $162,103,000 as of October 31, 2024, contributing to a stronger liquidity position[55] Debt Management - Total debt to net income ratio improved to 4.34x as of October 31, 2024, down from 6.14x as of October 31, 2023[8] - The total debt as of October 31, 2024, was $2,229,374,000, while net debt stood at $2,067,271,000, down from $2,307,030,000 in 2023[55] - The total debt to net income attributable to HEICO ratio was 4.34, indicating a leverage increase compared to the previous year[56] - The net debt to EBITDA ratio improved to 2.06 in 2024, down from 3.04 in 2023, suggesting better debt management[56] Segment Performance - The Flight Support Group's net sales increased 15% to a record $691.8 million in Q4 FY2024, up from $601.7 million in Q4 FY2023[14] - The Flight Support Group's operating income increased 35% to a record $154.5 million in Q4 FY2024, up from $114.6 million in Q4 FY2023[15] - The Electronic Technologies Group's net sales were $336.2 million in Q4 FY2024, compared to $342.5 million in Q4 FY2023[21] - The Electronic Technologies Group's operating income was $81.8 million in Q4 FY2024, compared to $86.4 million in Q4 FY2023[23] - The Flight Support Group generated net sales of $2,639,354 for the fiscal year ended October 31, 2024, a significant increase from $1,770,185 in 2023[41] - The Flight Support Group's operating income for the fiscal year ended October 31, 2024, was $593,074, up from $387,297 in 2023, marking a 53.1% increase[41] Other Financial Metrics - The EBITDA for HEICO in 2024 was $1,002,230,000, compared to $758,310,000 in 2023, reflecting a year-over-year increase of 32.2%[52] - The company incurred acquisition costs related to the Wencor acquisition, which decreased net income attributable to HEICO by approximately $13.6 million during the fourth quarter of fiscal 2023[43] - The company recognized a $13.6 million discrete tax benefit from stock option exercises in the first quarter of fiscal 2024, increasing net income attributable to HEICO by $13.3 million[44] Dividends - The Board declared a semiannual cash dividend of $0.11 per share, marking the 93rd consecutive semiannual cash dividend since 1979[11] Expenses - The company reported a depreciation and amortization expense of $44,685,000 for the quarter, slightly up from $43,728,000 in the prior year[54] - Interest expense for the quarter decreased to $35,406,000 from $43,423,000, indicating improved interest management[54] - Income tax expense for the quarter was $33,000,000, consistent with the previous year's $33,500,000[54]