HEICO (HEI) - 2024 Q2 - Quarterly Results

Financial Performance - Net income increased 17% to a record $123.1 million, or $0.88 per diluted share, in Q2 FY2024, compared to $105.1 million, or $0.76 per diluted share, in Q2 FY2023[1] - Net sales rose 39% to a record $955.4 million in Q2 FY2024, up from $687.8 million in Q2 FY2023[2] - Operating income increased 33% to a record $209.2 million in Q2 FY2024, compared to $157.1 million in Q2 FY2023[2] - EBITDA grew 35% to $252.4 million in Q2 FY2024, up from $187.2 million in Q2 FY2023[5] - Cash flow from operating activities surged 82% to $141.1 million in Q2 FY2024, compared to $77.8 million in Q2 FY2023[8] - Net income attributable to HEICO for the three months ended April 30, 2024, was $123,146, representing a 17% increase from $105,120 in 2023[31] - Operating income for the same period rose to $209,153, up 33% from $157,090 year-over-year[31] Segment Performance - The Flight Support Group's net sales increased 65% to a record $647.2 million in Q2 FY2024, up from $392.2 million in Q2 FY2023[10] - The Electronic Technologies Group's net sales rose 6% to $319.3 million in Q2 FY2024, up from $301.8 million in Q2 FY2023[15] - The Flight Support Group achieved 12% organic growth in net sales, driven by increased demand for aftermarket replacement parts[6] - Net sales for the three months ended April 30, 2024, increased to $955,395, a 39% rise from $687,841 in the same period of 2023[31] - The Flight Support Group's net sales increased to $647,232, a 65% increase compared to $392,202 in the prior year[31] - For the six months ended April 30, 2024, net sales reached $1,851,758, a 42% increase from $1,308,756 in 2023[32] Financial Ratios and Debt - The company's total debt to net income ratio improved to 5.39x as of April 30, 2024, down from 6.14x as of October 31, 2023[7] - The net debt to EBITDA ratio improved to 2.45 as of April 30, 2024, down from 3.04 in October 2023[39] Cash and Assets - Cash and cash equivalents increased to $204,161 as of April 30, 2024, compared to $171,048 at the end of October 2023[36] - Total assets as of April 30, 2024, were $7,365,845, an increase from $7,195,063 at the end of October 2023[36] Future Outlook - The company anticipates continued net sales growth in both the Flight Support Group and Electronic Technologies Group for the remainder of FY2024[9] Tax Benefit - The company recognized a $13.6 million discrete tax benefit from stock option exercises during the first quarter of fiscal 2024, increasing net income attributable to HEICO by $13.3 million[35]