[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
[ ]
|
TRANSACTION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Florida
|
65-0341002
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
|
3000
Taft Street, Hollywood, Florida
|
33021
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Common
Stock, $.01 par value
|
10,395,141
shares
|
|
Class
A Common Stock, $.01 par value
|
15,684,785
shares
|
Page
|
||||
PART
I. FINANCIAL INFORMATION
|
||||
Item
1.
|
Condensed
Consolidated Balance Sheets (unaudited) as of April 30, 2009 and October
31, 2008
|
2
|
||
Condensed
Consolidated Statements of Operations (unaudited) for the six months and
three months ended April 30, 2009 and 2008
|
3
|
|||
Condensed
Consolidated Statements of Cash Flows (unaudited) for the six months ended April 30, 2009
and 2008
|
4
|
|||
Notes
to Condensed Consolidated Financial Statements (unaudited)
|
5
|
|||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
19
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk.
|
32
|
||
Item
4.
|
Controls
and Procedures
|
32
|
||
PART
II. OTHER INFORMATION
|
||||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
33
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
33
|
||
Item
6.
|
Exhibits
|
34
|
||
SIGNATURE
|
35
|
April 30,
2009
|
October 31,
2008
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash and cash
equivalents
|
$ | 9,448,000 | $ | 12,562,000 | ||||
Accounts receivable,
net
|
71,984,000 | 88,403,000 | ||||||
Inventories,
net
|
142,508,000 | 132,910,000 | ||||||
Prepaid expenses and other current
assets
|
5,848,000 | 3,678,000 | ||||||
Deferred income
taxes
|
13,442,000 | 13,957,000 | ||||||
Total current
assets
|
243,230,000 | 251,510,000 | ||||||
Property, plant and equipment,
net
|
60,127,000 | 59,966,000 | ||||||
Goodwill
|
331,205,000 | 323,393,000 | ||||||
Intangible assets,
net
|
22,366,000 | 24,983,000 | ||||||
Other
assets
|
17,564,000 | 16,690,000 | ||||||
Total
assets
|
$ | 674,492,000 | $ | 676,542,000 | ||||
LIABILITIES AND SHAREHOLDERS’
EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current maturities of long-term
debt
|
$ | 222,000 | $ | 220,000 | ||||
Trade accounts
payable
|
25,727,000 | 29,657,000 | ||||||
Accrued expenses and other current
liabilities
|
35,158,000 | 49,586,000 | ||||||
Income taxes
payable
|
439,000 | 1,765,000 | ||||||
Total current
liabilities
|
61,546,000 | 81,228,000 | ||||||
Long-term debt, net of current
maturities
|
37,274,000 | 37,381,000 | ||||||
Deferred income
taxes
|
40,212,000 | 39,192,000 | ||||||
Other long-term
liabilities
|
17,664,000 | 17,003,000 | ||||||
Total
liabilities
|
156,696,000 | 174,804,000 | ||||||
Minority interests in consolidated
subsidiaries (Note 12)
|
85,072,000 | 83,978,000 | ||||||
Commitments and contingencies
(Note 12)
|
||||||||
Shareholders’
equity:
|
||||||||
Preferred Stock, $.01 par value
per share; 10,000,000 shares authorized; 300,000 shares designated as
Series B Junior Participating Preferred Stock and 300,000 shares
designated as Series C Junior Participating Preferred Stock; none
issued
|
¾ | ¾ | ||||||
Common Stock, $.01 par value per
share; 30,000,000 shares authorized; 10,395,141 and 10,572,641 shares
issued and outstanding, respectively
|
104,000 | 106,000 | ||||||
Class A Common Stock, $.01 par
value per share; 30,000,000 shares authorized; 15,680,126 and 15,829,790
shares issued and outstanding, respectively
|
157,000 | 158,000 | ||||||
Capital in excess of par
value
|
224,168,000 | 229,443,000 | ||||||
Accumulated other comprehensive
loss
|
(4,850,000 | ) | (4,819,000 | ) | ||||
Retained
earnings
|
213,145,000 | 192,872,000 | ||||||
Total shareholders’
equity
|
432,724,000 | 417,760,000 | ||||||
Total liabilities and
shareholders’ equity
|
$ | 674,492,000 | $ | 676,542,000 | ||||
Six
months ended April 30,
|
Three
months ended April 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 260,603,000 | $ | 278,326,000 | $ | 130,166,000 | $ | 144,039,000 | ||||||||
Operating
costs and expenses:
|
||||||||||||||||
Cost
of sales
|
174,181,000 | 179,141,000 | 87,648,000 | 91,683,000 | ||||||||||||
Selling,
general and administrative expenses
|
43,650,000 | 49,596,000 | 21,199,000 | 25,997,000 | ||||||||||||
Total
operating costs and expenses
|
217,831,000 | 228,737,000 | 108,847,000 | 117,680,000 | ||||||||||||
Operating
income
|
42,772,000 | 49,589,000 | 21,319,000 | 26,359,000 | ||||||||||||
Interest
expense
|
(307,000 | ) | (1,507,000 | ) | (112,000 | ) | (645,000 | ) | ||||||||
Other
income (expense)
|
2,000 | (74,000 | ) | 49,000 | 42,000 | |||||||||||
Income
before income taxes and minority interests
|
42,467,000 | 48,008,000 | 21,256,000 | 25,756,000 | ||||||||||||
Income
tax expense
|
12,820,000 | 16,540,000 | 6,960,000 | 8,960,000 | ||||||||||||
Income
before minority interests
|
29,647,000 | 31,468,000 | 14,296,000 | 16,796,000 | ||||||||||||
Minority
interests’ share of income
|
7,789,000 | 9,434,000 | 3,755,000 | 4,848,000 | ||||||||||||
Net
income
|
$ | 21,858,000 | $ | 22,034,000 | $ | 10,541,000 | $ | 11,948,000 | ||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | .83 | $ | .84 | $ | .40 | $ | .45 | ||||||||
Diluted
|
$ | .81 | $ | .81 | $ | .39 | $ | .44 | ||||||||
Weighted
average number of common shares outstanding:
|
||||||||||||||||
Basic
|
26,317,465 | 26,230,514 | 26,224,248 | 26,276,396 | ||||||||||||
Diluted
|
27,127,232 | 27,227,458 | 27,012,501 | 27,245,758 | ||||||||||||
Cash
dividends per share
|
$ | .06 | $ | .05 | $ | — | $ | — | ||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements.
|
Six months ended April
30,
|
||||||||
2009
|
2008
|
|||||||
Operating
Activities:
|
||||||||
Net income
|
$ | 21,858,000 | $ | 22,034,000 | ||||
Adjustments to reconcile net
income to net cash provided by operating
activities:
|
||||||||
Depreciation and
amortization
|
6,908,000 | 7,308,000 | ||||||
Deferred income tax
provision
|
(254,000 | ) | 2,011,000 | |||||
Minority interests’ share of
income
|
7,789,000 | 9,434,000 | ||||||
Tax benefit from stock option
exercises
|
2,136,000 | 6,285,000 | ||||||
Excess tax benefit from stock
option exercises
|
(1,793,000 | ) | (4,350,000 | ) | ||||
Stock option compensation
expense
|
7,000 | 129,000 | ||||||
Changes in operating assets and
liabilities, net of acquisitions:
|
||||||||
Decrease in accounts
receivable
|
16,065,000 | 690,000 | ||||||
Increase in
inventories
|
(9,642,000 | ) | (6,592,000 | ) | ||||
Decrease (increase) in prepaid
expenses and other current assets
|
340,000 | (754,000 | ) | |||||
Decrease in trade accounts
payable
|
(3,847,000 | ) | (492,000 | ) | ||||
Decrease in accrued expenses and
other current liabilities
|
(10,402,000 | ) | (2,459,000 | ) | ||||
(Decrease) increase in income
taxes payable
|
(2,659,000 | ) | 2,111,000 | |||||
Other
|
90,000 | (128,000 | ) | |||||
Net cash provided by operating
activities
|
26,596,000 | 35,227,000 | ||||||
Investing
Activities:
|
||||||||
Acquisitions and related costs,
net of cash acquired
|
(13,484,000 | ) | (28,221,000 | ) | ||||
Capital
expenditures
|
(5,397,000 | ) | (6,948,000 | ) | ||||
Other
|
54,000 | 87,000 | ||||||
Net cash used in investing
activities
|
(18,827,000 | ) | (35,082,000 | ) | ||||
Financing
Activities:
|
||||||||
Borrowings on revolving credit
facility
|
27,000,000 | 32,800,000 | ||||||
Payments on revolving credit
facility
|
(27,000,000 | ) | (30,800,000 | ) | ||||
Borrowings on short-term line of
credit
|
¾ | 500,000 | ||||||
Payments on short-term line of
credit
|
¾ | (500,000 | ) | |||||
Payment of industrial development
revenue bonds
|
¾ | (1,980,000 | ) | |||||
Repurchases of common
stock
|
(8,098,000 | ) | ¾ | |||||
Distributions to minority interest
owners
|
(3,527,000 | ) | (4,321,000 | ) | ||||
Cash dividends
paid
|
(1,585,000 | ) | (1,312,000 | ) | ||||
Excess tax benefit from stock
option exercises
|
1,793,000 | 4,350,000 | ||||||
Proceeds from stock option
exercises
|
678,000 | 1,797,000 | ||||||
Other
|
(104,000 | ) | (67,000 | ) | ||||
Net cash (used in) provided by
financing activities
|
(10,843,000 | ) | 467,000 | |||||
Effect of exchange rate changes on
cash
|
(40,000 | ) | (132,000 | ) | ||||
Net (decrease) increase in cash
and cash equivalents
|
(3,114,000 | ) | 480,000 | |||||
Cash and cash equivalents at
beginning of year
|
12,562,000 | 4,947,000 | ||||||
Cash and cash equivalents at end
of period
|
$ | 9,448,000 | $ | 5,427,000 |
April 30,
2009
|
October 31,
2008
|
|||||||
Accounts
receivable
|
$ | 74,356,000 | $ | 90,990,000 | ||||
Less: Allowance for
doubtful accounts
|
(2,372,000 | ) | (2,587,000 | ) | ||||
Accounts receivable,
net
|
$ | 71,984,000 | $ | 88,403,000 |
April 30,
2009
|
October 31,
2008
|
|||||||
Costs incurred on uncompleted
contracts
|
$ | 20,531,000 | $ | 21,505,000 | ||||
Estimated
earnings
|
10,825,000 | 12,545,000 | ||||||
31,356,000 | 34,050,000 | |||||||
Less: Billings to
date
|
(27,752,000 | ) | (28,337,000 | ) | ||||
$ | 3,604,000 | $ | 5,713,000 | |||||
Included in the accompanying
Condensed Consolidated
|
||||||||
Balance Sheets under the following
captions:
|
||||||||
Accounts receivable, net (costs
and estimated
|
||||||||
earnings in excess of
billings)
|
$ | 3,934,000 | $ | 6,115,000 | ||||
Accrued expenses and other current
liabilities
|
||||||||
(billings in excess of costs and
estimated earnings)
|
(330,000 | ) | (402,000 | ) | ||||
$ | 3,604,000 | $ | 5,713,000 | |||||
April 30,
2009
|
October 31,
2008
|
|||||||
Finished
products
|
$ | 82,507,000 | $ | 74,281,000 | ||||
Work in
process
|
15,855,000 | 17,897,000 | ||||||
Materials, parts, assemblies and
supplies
|
44,146,000 | 40,732,000 | ||||||
Inventories,
net
|
$ | 142,508,000 | $ | 132,910,000 |
April 30,
2009
|
October 31,
2008
|
|||||||
Land
|
$ | 3,656,000 | $ | 3,656,000 | ||||
Buildings and
improvements
|
37,084,000 | 36,229,000 | ||||||
Machinery, equipment and
tooling
|
75,680,000 | 73,038,000 | ||||||
Construction in
progress
|
5,776,000 | 5,446,000 | ||||||
122,196,000 | 118,369,000 | |||||||
Less: Accumulated
depreciation and amortization
|
(62,069,000 | ) | (58,403,000 | ) | ||||
Property, plant and equipment,
net
|
$ | 60,127,000 | $ | 59,966,000 |
Segment
|
Consolidated
|
|||||||||||
FSG
|
ETG
|
Totals
|
||||||||||
Balances as of October 31,
2008
|
$ | 181,126,000 | $ | 142,267,000 | $ | 323,393,000 | ||||||
Goodwill
acquired
|
6,482,000 | 496,000 | 6,978,000 | |||||||||
Adjustments to
goodwill
|
828,000 | ¾ | 828,000 | |||||||||
Foreign currency translation
adjustments
|
(132,000 | ) | 138,000 | 6,000 | ||||||||
Balances as of April 30,
2009
|
$ | 188,304,000 | $ | 142,901,000 | $ | 331,205,000 |
As of April 30,
2009
|
As of October 31,
2008
|
|||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Carrying
|
Accumulated
|
Carrying
|
|||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||||||||
Amortizing
Assets:
|
||||||||||||||||||||||||
Customer
relationships
|
$ | 16,241,000 | $ | (7,757,000 | ) | $ | 8,484,000 | $ | 16,845,000 | $ | (6,451,000 | ) | $ | 10,394,000 | ||||||||||
Intellectual
property
|
3,442,000 | (2,130,000 | ) | 1,312,000 | 3,427,000 | (1,833,000 | ) | 1,594,000 | ||||||||||||||||
Licenses
|
1,000,000 | (511,000 | ) | 489,000 | 1,000,000 | (474,000 | ) | 526,000 | ||||||||||||||||
Non-compete
agreements
|
1,083,000 | (815,000 | ) | 268,000 | 1,086,000 | (660,000 | ) | 426,000 | ||||||||||||||||
Patents
|
581,000 | (217,000 | ) | 364,000 | 575,000 | (189,000 | ) | 386,000 | ||||||||||||||||
22,347,000 | (11,430,000 | ) | 10,917,000 | 22,933,000 | (9,607,000 | ) | 13,326,000 | |||||||||||||||||
Non-Amortizing
Assets:
|
||||||||||||||||||||||||
Trade names
|
11,449,000 | ¾ | 11,449,000 | 11,657,000 | ¾ | 11,657,000 | ||||||||||||||||||
$ | 33,796,000 | $ | (11,430,000 | ) | $ | 22,366,000 | $ | 34,590,000 | $ | (9,607,000 | ) | $ | 24,983,000 |
April 30,
2009
|
October 31,
2008
|
|||||||
Borrowings under revolving credit
facility
|
$ | 37,000,000 | $ | 37,000,000 | ||||
Notes payable, capital leases and
equipment loans
|
496,000 | 601,000 | ||||||
37,496,000 | 37,601,000 | |||||||
Less: Current maturities of
long-term debt
|
(222,000 | ) | (220,000 | ) | ||||
$ | 37,274,000 | $ | 37,381,000 |
Balance as of October 31,
2008
|
$ | 5,742,000 | ||
Increases related to prior year
tax positions
|
109,000 | |||
Decreases related to prior year
tax positions
|
(3,396,000 | ) | ||
Increases related to current year
tax positions
|
422,000 | |||
Settlements
|
(211,000 | ) | ||
Lapse of statutes of
limitations
|
(119,000 | ) | ||
Balance as of April 30,
2009
|
$ | 2,547,000 |
|
Level
1
|
Quoted
prices in active markets for identical assets or
liabilities;
|
|
Level
2
|
Inputs,
other than quoted prices included within Level 1, that are observable for
the asset or liability either directly or indirectly;
or
|
|
Level
3
|
Unobservable
inputs for the asset or liability where there is little or no market data,
requiring management to develop its own
assumptions.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Deferred compensation
plans
|
$ | 2,623,000 | $ | 12,252,000 | $ | — | $ | 14,875,000 | ||||||||
Liabilities
|
— | — | — | — |
Accumulated
|
||||||||||||||||||||||||
Class A
|
Capital in
|
Other
|
||||||||||||||||||||||
Common
|
Common
|
Excess of
|
Comprehensive
|
Retained
|
Comprehensive
|
|||||||||||||||||||
Stock
|
Stock
|
Par Value
|
Loss
|
Earnings
|
Income
|
|||||||||||||||||||
Balances as of October 31,
2008
|
$ | 106,000 | $ | 158,000 | $ | 229,443,000 | $ | (4,819,000 | ) | $ | 192,872,000 | |||||||||||||
Net income
|
— | — | — | — | 21,858,000 | $ | 21,858,000 | |||||||||||||||||
Foreign currency translation
adjustments
|
— | — | — | (194,000 | ) | — | (194,000 | ) | ||||||||||||||||
Comprehensive
income
|
— | — | — | — | — | $ | 21,664,000 | |||||||||||||||||
Cash dividends ($.06 per
share)
|
— | — | — | — | (1,585,000 | ) | ||||||||||||||||||
Repurchases of common
stock
|
(2,000 | ) | (2,000 | ) | (8,094,000 | ) | — | — | ||||||||||||||||
Tax benefit from stock option
exercises
|
— | — | 2,136,000 | — | — | |||||||||||||||||||
Proceeds from stock option
exercises
|
— | 1,000 | 677,000 | — | — | |||||||||||||||||||
Stock option compensation
expense
|
— | — | 7,000 | — | — | |||||||||||||||||||
Other
|
— | — | (1,000 | ) | 163,000 | — | ||||||||||||||||||
Balances as of April 30,
2009
|
$ | 104,000 | $ | 157,000 | $ | 224,168,000 | $ | (4,850,000 | ) | $ | 213,145,000 |
Six months ended April
30,
|
Three months ended April
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$ | 21,858,000 | $ | 22,034,000 | $ | 10,541,000 | $ | 11,948,000 | ||||||||
Denominator:
|
||||||||||||||||
Weighted average common shares
outstanding-basic
|
26,317,465 | 26,230,514 | 26,224,248 | 26,276,396 | ||||||||||||
Effect of dilutive stock
options
|
809,767 | 996,944 | 788,253 | 969,362 | ||||||||||||
Weighted average common shares
outstanding-diluted
|
27,127,232 | 27,227,458 | 27,012,501 | 27,245,758 | ||||||||||||
Net income per
share-basic
|
$ | .83 | $ | .84 | $ | .40 | $ | .45 | ||||||||
Net income per
share-diluted
|
$ | .81 | $ | .81 | $ | .39 | $ | .44 | ||||||||
Anti-dilutive stock options
excluded
|
¾ | ¾ | ¾ | ¾ |
Other,
|
||||||||||||||||
Primarily
|
||||||||||||||||
Segment
|
Corporate
and
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Intersegment
|
Totals
|
|||||||||||||
For
the six months ended April 30, 2009:
|
||||||||||||||||
Net sales
|
$ | 200,307,000 | $ | 60,469,000 | $ | (173,000 | ) | $ | 260,603,000 | |||||||
Depreciation and
amortization
|
4,809,000 | 1,878,000 | 221,000 | 6,908,000 | ||||||||||||
Operating
income
|
31,538,000 | 16,573,000 | (5,339,000 | ) | 42,772,000 | |||||||||||
Capital
expenditures
|
4,777,000 | 609,000 | 11,000 | 5,397,000 | ||||||||||||
For
the six months ended April 30, 2008:
|
||||||||||||||||
Net sales
|
$ | 210,317,000 | $ | 68,021,000 | $ | (12,000 | ) | $ | 278,326,000 | |||||||
Depreciation and
amortization
|
4,422,000 | 2,702,000 | 184,000 | 7,308,000 | ||||||||||||
Operating
income
|
39,331,000 | 16,948,000 | (6,690,000 | ) | 49,589,000 | |||||||||||
Capital
expenditures
|
5,332,000 | 1,166,000 | 450,000 | 6,948,000 | ||||||||||||
For
the three months ended April 30, 2009:
|
||||||||||||||||
Net sales
|
$ | 100,745,000 | $ | 29,510,000 | $ | (89,000 | ) | $ | 130,166,000 | |||||||
Depreciation and
amortization
|
2,398,000 | 927,000 | 112,000 | 3,437,000 | ||||||||||||
Operating
income
|
15,897,000 | 8,031,000 | (2,609,000 | ) | 21,319,000 | |||||||||||
Capital
expenditures
|
2,486,000 | 295,000 | — | 2,781,000 | ||||||||||||
For
the three months ended April 30, 2008:
|
||||||||||||||||
Net sales
|
$ | 107,968,000 | $ | 36,083,000 | $ | (12,000 | ) | $ | 144,039,000 | |||||||
Depreciation and
amortization
|
2,315,000 | 1,352,000 | 102,000 | 3,769,000 | ||||||||||||
Operating
income
|
20,385,000 | 9,771,000 | (3,797,000 | ) | 26,359,000 | |||||||||||
Capital
expenditures
|
3,164,000 | 725,000 | 247,000 | 4,136,000 |
Other,
|
||||||||||||||||
Segment
|
Primarily
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Corporate
|
Totals
|
|||||||||||||
Total assets as of April 30,
2009
|
$ | 430,360,000 | $ | 211,480,000 | $ | 32,652,000 | $ | 674,492,000 | ||||||||
Total assets as of October 31,
2008
|
418,079,000 | 220,888,000 | 37,575,000 | 676,542,000 |
Six months ended April
30,
|
||||||||
2009
|
2008
|
|||||||
Balances as of beginning of fiscal
year
|
$ | 671,000 | $ | 1,181,000 | ||||
Accruals for
warranties
|
859,000 | 576,000 | ||||||
Warranty claims
settled
|
(497,000 | ) | (393,000 | ) | ||||
Balances as of April
30
|
$ | 1,033,000 | $ | 1,364,000 |
Six months ended April
30,
|
Three months ended April
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net sales
|
$ | 260,603,000 | $ | 278,326,000 | $ | 130,166,000 | $ | 144,039,000 | ||||||||
Cost of
sales
|
174,181,000 | 179,141,000 | 87,648,000 | 91,683,000 | ||||||||||||
Selling, general and
administrative expenses
|
43,650,000 | 49,596,000 | 21,199,000 | 25,997,000 | ||||||||||||
Total operating costs and
expenses
|
217,831,000 | 228,737,000 | 108,847,000 | 117,680,000 | ||||||||||||
Operating
income
|
$ | 42,772,000 | $ | 49,589,000 | $ | 21,319,000 | $ | 26,359,000 | ||||||||
Net sales by
segment:
|
||||||||||||||||
Flight Support
Group
|
$ | 200,307,000 | $ | 210,317,000 | $ | 100,745,000 | $ | 107,968,000 | ||||||||
Electronic Technologies
Group
|
60,469,000 | 68,021,000 | 29,510,000 | 36,083,000 | ||||||||||||
Intersegment
sales
|
(173,000 | ) | (12,000 | ) | (89,000 | ) | (12,000 | ) | ||||||||
$ | 260,603,000 | $ | 278,326,000 | $ | 130,166,000 | $ | 144,039,000 | |||||||||
Operating income by
segment:
|
||||||||||||||||
Flight Support
Group
|
$ | 31,538,000 | $ | 39,331,000 | $ | 15,897,000 | $ | 20,385,000 | ||||||||
Electronic Technologies
Group
|
16,573,000 | 16,948,000 | 8,031,000 | 9,771,000 | ||||||||||||
Other, primarily
corporate
|
(5,339,000 | ) | (6,690,000 | ) | (2,609,000 | ) | (3,797,000 | ) | ||||||||
$ | 42,772,000 | $ | 49,589,000 | $ | 21,319,000 | $ | 26,359,000 | |||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Gross
profit
|
33.2 | % | 35.6 | % | 32.7 | % | 36.3 | % | ||||||||
Selling, general and
administrative expenses
|
16.7 | % | 17.8 | % | 16.3 | % | 18.0 | % | ||||||||
Operating
income
|
16.4 | % | 17.8 | % | 16.4 | % | 18.3 | % | ||||||||
Interest
expense
|
.1 | % | .5 | % | .1 | % | .4 | % | ||||||||
Other income
(expense)
|
¾ | ¾ | ¾ | ¾ | ||||||||||||
Income tax
expense
|
4.9 | % | 5.9 | % | 5.3 | % | 6.2 | % | ||||||||
Minority interests’ share of
income
|
3.0 | % | 3.4 | % | 2.9 | % | 3.4 | % | ||||||||
Net income
|
8.4 | % | 7.9 | % | 8.1 | % | 8.3 | % |
Votes
|
Votes
|
|||||||
Director
Nominee
|
For
|
Withheld
|
||||||
Samuel
L. Higginbottom
|
9,986,394 | 1,514,965 | ||||||
Mark
H. Hildebrandt
|
11,366,187 | 135,172 | ||||||
Wolfgang
Mayrhuber
|
9,910,493 | 1,590,866 | ||||||
Eric
A. Mendelson
|
11,279,814 | 221,545 | ||||||
Laurans
A. Mendelson
|
11,350,158 | 151,201 | ||||||
Victor
H. Mendelson
|
11,279,814 | 221,545 | ||||||
Albert
Morrison, Jr.
|
11,318,863 | 182,496 | ||||||
Dr.
Alan Schriesheim
|
11,316,969 | 184,390 | ||||||
Frank
J. Schwitter
|
11,321,874 | 179,485 |
Exhibit
|
Description
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer.*
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer.*
|
32.1
|
Section
1350 Certification of Chief Executive Officer.**
|
32.2
|
Section
1350 Certification of Chief Financial Officer.**
|
*
|
Filed
herewith.
|
**
|
Furnished
herewith.
|
HEICO CORPORATION | |||
Date:
June 3, 2009
|
By:
|
/s/ THOMAS S. IRWIN | |
Thomas
S. Irwin
Executive
Vice President and
Chief
Financial Officer
(Principal
Financial and
Accounting
Officer)
|
|||
Exhibit
|
Description
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer.
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer.
|
32.1
|
Section
1350 Certification of Chief Executive Officer.
|
32.2
|
Section
1350 Certification of Chief Financial Officer.
|
|
(1)
|
I
have reviewed this quarterly report on Form 10-Q of HEICO
Corporation;
|
|
(2)
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
(3)
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
(4)
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
(5)
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
June 3, 2009
|
By:
|
/s/ LAURANS A. MENDELSON | |
Laurans
A. Mendelson
Chief
Executive Officer
|
|||
|
(1)
|
I
have reviewed this quarterly report on Form 10-Q of HEICO
Corporation;
|
|
(2)
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
(3)
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
(4)
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
(5)
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
June 3, 2009
|
By:
|
/s/ THOMAS S. IRWIN | |
Thomas S. Irwin
Chief Financial
Officer
|
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended;
and
|
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
Date:
June 3, 2009
|
By:
|
/s/ LAURANS A. MENDELSON | |
Laurans
A. Mendelson
Chief
Executive Officer
|
|||
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended;
and
|
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
Date:
June 3, 2009
|
By:
|
/s/ THOMAS S. IRWIN | |
Thomas S. Irwin
Chief Financial
Officer
|