x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
o
|
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
|
15,692,484
shares
|
Page
|
||
July
31, 2009
|
October
31, 2008
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 6,948,000 | $ | 12,562,000 | ||||
Accounts
receivable, net
|
72,161,000 | 88,403,000 | ||||||
Inventories,
net
|
145,496,000 | 132,910,000 | ||||||
Prepaid
expenses and other current assets
|
10,446,000 | 3,678,000 | ||||||
Deferred
income taxes
|
15,306,000 | 13,957,000 | ||||||
Total
current assets
|
250,357,000 | 251,510,000 | ||||||
Property,
plant and equipment, net
|
60,496,000 | 59,966,000 | ||||||
Goodwill
|
348,005,000 | 323,393,000 | ||||||
Intangible
assets, net
|
34,834,000 | 24,983,000 | ||||||
Other
assets
|
19,758,000 | 16,690,000 | ||||||
Total
assets
|
$ | 713,450,000 | $ | 676,542,000 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Current
maturities of long-term debt
|
$ | 233,000 | $ | 220,000 | ||||
Trade
accounts payable
|
29,512,000 | 29,657,000 | ||||||
Accrued
expenses and other current liabilities
|
30,267,000 | 49,586,000 | ||||||
Income
taxes payable
|
¾ | 1,765,000 | ||||||
Total
current liabilities
|
60,012,000 | 81,228,000 | ||||||
Long-term
debt, net of current maturities
|
56,255,000 | 37,381,000 | ||||||
Deferred
income taxes
|
41,526,000 | 39,192,000 | ||||||
Other
long-term liabilities
|
20,713,000 | 17,003,000 | ||||||
Total
liabilities
|
178,506,000 | 174,804,000 | ||||||
Minority
interests in consolidated subsidiaries (Note 12)
|
89,693,000 | 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; 15,692,374 and 15,829,790 shares issued
|
||||||||
and
outstanding, respectively
|
157,000 | 158,000 | ||||||
Capital
in excess of par value
|
224,074,000 | 229,443,000 | ||||||
Accumulated
other comprehensive loss
|
(1,796,000 | ) | (4,819,000 | ) | ||||
Retained
earnings
|
222,712,000 | 192,872,000 | ||||||
Total
shareholders’ equity
|
445,251,000 | 417,760,000 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 713,450,000 | $ | 676,542,000 | ||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements.
|
Nine
months ended July 31,
|
Three
months ended July 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 394,689,000 | $ | 425,631,000 | $ | 134,086,000 | $ | 147,305,000 | ||||||||
Operating
costs and expenses:
|
||||||||||||||||
Cost
of sales
|
262,456,000 | 272,595,000 | 88,275,000 | 93,454,000 | ||||||||||||
Selling,
general and administrative expenses
|
68,039,000 | 75,958,000 | 24,389,000 | 26,362,000 | ||||||||||||
Total
operating costs and expenses
|
330,495,000 | 348,553,000 | 112,664,000 | 119,816,000 | ||||||||||||
Operating
income
|
64,194,000 | 77,078,000 | 21,422,000 | 27,489,000 | ||||||||||||
Interest
expense
|
(484,000 | ) | (1,951,000 | ) | (177,000 | ) | (444,000 | ) | ||||||||
Other
income (expense)
|
186,000 | (218,000 | ) | 184,000 | (144,000 | ) | ||||||||||
Income
before income taxes and minority interests
|
63,896,000 | 74,909,000 | 21,429,000 | 26,901,000 | ||||||||||||
Income
tax expense
|
19,331,000 | 26,040,000 | 6,511,000 | 9,500,000 | ||||||||||||
Income
before minority interests
|
44,565,000 | 48,869,000 | 14,918,000 | 17,401,000 | ||||||||||||
Minority
interests’ share of income
|
11,575,000 | 14,008,000 | 3,786,000 | 4,574,000 | ||||||||||||
Net
income
|
$ | 32,990,000 | $ | 34,861,000 | $ | 11,132,000 | $ | 12,827,000 | ||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | 1.26 | $ | 1.33 | $ | .43 | $ | .49 | ||||||||
Diluted
|
$ | 1.22 | $ | 1.28 | $ | .41 | $ | .47 | ||||||||
Weighted
average number of common shares outstanding:
|
||||||||||||||||
Basic
|
26,239,281 | 26,280,211 | 26,082,914 | 26,379,608 | ||||||||||||
Diluted
|
27,053,584 | 27,242,251 | 26,906,290 | 27,271,841 | ||||||||||||
Cash
dividends per share
|
$ | .12 | $ | .10 | $ | .06 | $ | .05 | ||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements.
|
Nine months ended July
31,
|
||||||||
2009
|
2008
|
|||||||
Operating
Activities:
|
||||||||
Net income
|
$ | 32,990,000 | $ | 34,861,000 | ||||
Adjustments to reconcile net
income to net cash
|
||||||||
provided by operating
activities:
|
||||||||
Depreciation and
amortization
|
10,951,000 | 11,339,000 | ||||||
Deferred income tax (benefit)
provision
|
(1,376,000 | ) | 2,179,000 | |||||
Minority interests’ share of
income
|
11,575,000 | 14,008,000 | ||||||
Tax benefit from stock option
exercises
|
1,889,000 | 6,281,000 | ||||||
Excess tax benefit from stock
option exercises
|
(1,572,000 | ) | (4,347,000 | ) | ||||
Stock option compensation
expense
|
15,000 | 138,000 | ||||||
Changes in operating assets and
liabilities, net of acquisitions:
|
||||||||
Decrease in accounts
receivable
|
20,207,000 | 7,867,000 | ||||||
Increase in
inventories
|
(9,282,000 | ) | (13,062,000 | ) | ||||
Increase in prepaid expenses and
other current assets
|
(2,271,000 | ) | (448,000 | ) | ||||
(Decrease) increase in trade
accounts payable
|
(2,995,000 | ) | 456,000 | |||||
Decrease in accrued expenses and
other current liabilities
|
(15,776,000 | ) | (2,294,000 | ) | ||||
Decrease in income taxes
payable
|
(1,080,000 | ) | (286,000 | ) | ||||
Other
|
444,000 | (66,000 | ) | |||||
Net cash provided by operating
activities
|
43,719,000 | 56,626,000 | ||||||
Investing
Activities:
|
||||||||
Acquisitions and related costs,
net of cash acquired
|
(45,830,000 | ) | (28,747,000 | ) | ||||
Capital
expenditures
|
(7,784,000 | ) | (10,121,000 | ) | ||||
Other
|
73,000 | 133,000 | ||||||
Net cash used in investing
activities
|
(53,541,000 | ) | (38,735,000 | ) | ||||
Financing
Activities:
|
||||||||
Borrowings on revolving credit
facility
|
68,000,000 | 40,000,000 | ||||||
Payments on revolving credit
facility
|
(49,000,000 | ) | (51,000,000 | ) | ||||
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
|
(5,994,000 | ) | (5,902,000 | ) | ||||
Cash dividends
paid
|
(3,150,000 | ) | (2,631,000 | ) | ||||
Excess tax benefit from stock
option exercises
|
1,572,000 | 4,347,000 | ||||||
Proceeds from stock option
exercises
|
822,000 | 2,157,000 | ||||||
Other
|
(158,000 | ) | (1,087,000 | ) | ||||
Net cash provided by (used in)
financing activities
|
3,994,000 | (16,096,000 | ) | |||||
Effect of exchange rate changes on
cash
|
214,000 | (177,000 | ) | |||||
Net (decrease) increase in cash
and cash equivalents
|
(5,614,000 | ) | 1,618,000 | |||||
Cash and cash equivalents at
beginning of year
|
12,562,000 | 4,947,000 | ||||||
Cash and cash equivalents at end
of period
|
$ | 6,948,000 | $ | 6,565,000 | ||||
The accompanying notes are an
integral part of these condensed consolidated financial
statements.
|
For the nine months ended July
31,
|
For the three months ended July
31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net sales
|
$ | 408,323 | $ | 444,890 | $ | 134,086 | $ | 154,789 | ||||||||
Net income
|
$ | 34,024 | $ | 35,909 | $ | 11,132 | $ | 13,518 | ||||||||
Net income per
share:
|
||||||||||||||||
Basic
|
$ | 1.30 | $ | 1.37 | $ | .43 | $ | .51 | ||||||||
Diluted
|
$ | 1.26 | $ | 1.32 | $ | .41 | $ | .50 |
July 31,
2009
|
October 31,
2008
|
|||||||
Accounts
receivable
|
$ | 74,647,000 | $ | 90,990,000 | ||||
Less: Allowance for
doubtful accounts
|
(2,486,000 | ) | (2,587,000 | ) | ||||
Accounts receivable,
net
|
$ | 72,161,000 | $ | 88,403,000 |
July
31, 2009
|
October
31, 2008
|
|||||||
Costs
incurred on uncompleted contracts
|
$ | 17,358,000 | $ | 21,505,000 | ||||
Estimated
earnings
|
12,960,000 | 12,545,000 | ||||||
30,318,000 | 34,050,000 | |||||||
Less: Billings
to date
|
(26,859,000 | ) | (28,337,000 | ) | ||||
$ | 3,459,000 | $ | 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)
|
$ | 3,601,000 | $ | 6,115,000 | ||||
Accrued
expenses and other current liabilities
|
||||||||
(billings
in excess of costs and estimated earnings)
|
(142,000 | ) | (402,000 | ) | ||||
$ | 3,459,000 | $ | 5,713,000 |
July 31,
2009
|
October 31,
2008
|
|||||||
Finished
products
|
$ | 82,399,000 | $ | 74,281,000 | ||||
Work in
process
|
15,075,000 | 17,897,000 | ||||||
Materials, parts, assemblies and
supplies
|
48,022,000 | 40,732,000 | ||||||
Inventories,
net
|
$ | 145,496,000 | $ | 132,910,000 |
July 31,
2009
|
October 31,
2008
|
|||||||
Land
|
$ | 3,656,000 | $ | 3,656,000 | ||||
Buildings and
improvements
|
37,540,000 | 36,229,000 | ||||||
Machinery, equipment and
tooling
|
78,425,000 | 73,038,000 | ||||||
Construction in
progress
|
5,678,000 | 5,446,000 | ||||||
125,299,000 | 118,369,000 | |||||||
Less: Accumulated
depreciation and amortization
|
(64,803,000 | ) | (58,403,000 | ) | ||||
Property, plant and equipment,
net
|
$ | 60,496,000 | $ | 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
|
6,444,000 | 15,617,000 | 22,061,000 | |||||||||
Foreign currency translation
adjustments
|
16,000 | 1,669,000 | 1,685,000 | |||||||||
Adjustments to
goodwill
|
866,000 | ¾ | 866,000 | |||||||||
Balances as of July 31,
2009
|
$ | 188,452,000 | $ | 159,553,000 | $ | 348,005,000 |
As of July 31,
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
|
$ | 26,520,000 | $ | (8,947,000 | ) | $ | 17,573,000 | $ | 16,845,000 | $ | (6,451,000 | ) | $ | 10,394,000 | ||||||||||
Intellectual
property
|
3,608,000 | (2,323,000 | ) | 1,285,000 | 3,427,000 | (1,833,000 | ) | 1,594,000 | ||||||||||||||||
Licenses
|
1,000,000 | (529,000 | ) | 471,000 | 1,000,000 | (474,000 | ) | 526,000 | ||||||||||||||||
Non-compete
agreements
|
1,118,000 | (923,000 | ) | 195,000 | 1,086,000 | (660,000 | ) | 426,000 | ||||||||||||||||
Patents
|
608,000 | (234,000 | ) | 374,000 | 575,000 | (189,000 | ) | 386,000 | ||||||||||||||||
32,854,000 | (12,956,000 | ) | 19,898,000 | 22,933,000 | (9,607,000 | ) | 13,326,000 | |||||||||||||||||
Non-Amortizing
Assets:
|
||||||||||||||||||||||||
Trade names
|
14,936,000 | ¾ | 14,936,000 | 11,657,000 | ¾ | 11,657,000 | ||||||||||||||||||
$ | 47,790,000 | $ | (12,956,000 | ) | $ | 34,834,000 | $ | 34,590,000 | $ | (9,607,000 | ) | $ | 24,983,000 |
July 31,
2009
|
October 31,
2008
|
|||||||
Borrowings under revolving credit
facility
|
$ | 56,000,000 | $ | 37,000,000 | ||||
Notes payable, capital leases and
equipment loans
|
488,000 | 601,000 | ||||||
56,488,000 | 37,601,000 | |||||||
Less: Current maturities of
long-term debt
|
(233,000 | ) | (220,000 | ) | ||||
$ | 56,255,000 | $ | 37,381,000 |
Balance as of October 31,
2008
|
$ | 5,742,000 | ||
Increases related to prior year
tax positions
|
16,000 | |||
Decreases related to prior year
tax positions
|
(3,487,000 | ) | ||
Increases related to current year
tax positions
|
878,000 | |||
Settlements
|
(211,000 | ) | ||
Lapse of statutes of
limitations
|
41,000 | |||
Balance as of July 31,
2009
|
$ | 2,979,000 |
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
|
||||||||||||||||
Corporate
owned life insurance
|
$ | — | $ | 14,124,000 | $ | — | $ | 14,124,000 | ||||||||
Mutual
funds
|
2,019,000 | — | — | 2,019,000 | ||||||||||||
Equity
securities
|
979,000 | — | — | 979,000 | ||||||||||||
Other
|
1,000 | 192,000 | — | 193,000 | ||||||||||||
Total
|
$ | 2,999,000 | $ | 14,316,000 | $ | — | $ | 17,315,000 | ||||||||
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
|
— | — | — | — | 32,990,000 | $ | 32,990,000 | |||||||||||||||||
Foreign
currency translation adjustments
|
— | — | — | 2,859,000 | — | 2,859,000 | ||||||||||||||||||
Comprehensive
income
|
— | — | — | — | — | $ | 35,849,000 | |||||||||||||||||
Repurchases
of common stock
|
(2,000 | ) | (2,000 | ) | (8,094,000 | ) | — | — | ||||||||||||||||
Cash
dividends ($.12 per share)
|
— | — | — | — | (3,150,000 | ) | ||||||||||||||||||
Tax
benefit from stock option exercises
|
— | — | 1,889,000 | — | — | |||||||||||||||||||
Proceeds
from stock option exercises
|
— | 1,000 | 821,000 | — | — | |||||||||||||||||||
Stock
option compensation expense
|
— | — | 15,000 | — | — | |||||||||||||||||||
Other
|
— | — | — | 164,000 | — | |||||||||||||||||||
Balances
as of July 31, 2009
|
$ | 104,000 | $ | 157,000 | $ | 224,074,000 | $ | (1,796,000 | ) | $ | 222,712,000 |
Nine
months ended July 31,
|
Three
months ended July 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net
income
|
$ | 32,990,000 | $ | 34,861,000 | $ | 11,132,000 | $ | 12,827,000 | ||||||||
Denominator:
|
||||||||||||||||
Weighted
average common shares outstanding-basic
|
26,239,281 | 26,280,211 | 26,082,914 | 26,379,608 | ||||||||||||
Effect
of dilutive stock options
|
814,303 | 962,040 | 823,376 | 892,233 | ||||||||||||
Weighted
average common shares outstanding-diluted
|
27,053,584 | 27,242,251 | 26,906,290 | 27,271,841 | ||||||||||||
Net
income per share-basic
|
$ | 1.26 | $ | 1.33 | $ | .43 | $ | .49 | ||||||||
Net
income per share-dilutive
|
$ | 1.22 | $ | 1.28 | $ | .41 | $ | .47 | ||||||||
Anti-dilutive
stock options excluded
|
2,554 | — | 7,663 | — |
Other,
|
||||||||||||||||
Primarily
|
||||||||||||||||
Segment
|
Corporate
and
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Intersegment
|
Totals
|
|||||||||||||
For the nine months
ended July 31, 2009:
|
||||||||||||||||
Net
sales
|
$ | 297,543,000 | $ | 97,523,000 | $ | (377,000 | ) | $ | 394,689,000 | |||||||
Depreciation
and amortization
|
7,330,000 | 3,287,000 | 334,000 | 10,951,000 | ||||||||||||
Operating
income
|
46,297,000 | 26,508,000 | (8,611,000 | ) | 64,194,000 | |||||||||||
Capital
expenditures
|
6,644,000 | 1,075,000 | 65,000 | 7,784,000 | ||||||||||||
For the nine months
ended July 31, 2008:
|
||||||||||||||||
Net
sales
|
$ | 320,286,000 | $ | 105,697,000 | $ | (352,000 | ) | $ | 425,631,000 | |||||||
Depreciation
and amortization
|
6,905,000 | 4,068,000 | 366,000 | 11,339,000 | ||||||||||||
Operating
income
|
59,723,000 | 27,731,000 | (10,376,000 | ) | 77,078,000 | |||||||||||
Capital
expenditures
|
7,928,000 | 1,635,000 | 558,000 | 10,121,000 | ||||||||||||
For the three months
ended July 31, 2009:
|
||||||||||||||||
Net
sales
|
$ | 97,236,000 | $ | 37,054,000 | $ | (204,000 | ) | $ | 134,086,000 | |||||||
Depreciation
and amortization
|
2,521,000 | 1,409,000 | 113,000 | 4,043,000 | ||||||||||||
Operating
income
|
14,759,000 | 9,935,000 | (3,272,000 | ) | 21,422,000 | |||||||||||
Capital
expenditures
|
1,867,000 | 466,000 | 54,000 | 2,387,000 | ||||||||||||
For the three months
ended July 31, 2008:
|
||||||||||||||||
Net
sales
|
$ | 109,969,000 | $ | 37,676,000 | $ | (340,000 | ) | $ | 147,305,000 | |||||||
Depreciation
and amortization
|
2,483,000 | 1,366,000 | 182,000 | 4,031,000 | ||||||||||||
Operating
income
|
20,392,000 | 10,783,000 | (3,686,000 | ) | 27,489,000 | |||||||||||
Capital
expenditures
|
2,596,000 | 469,000 | 108,000 | 3,173,000 |
Other,
|
||||||||||||||||
Segment
|
Primarily
|
Consolidated
|
||||||||||||||
FSG
|
ETG
|
Corporate
|
Totals
|
|||||||||||||
Total
assets as of July 31, 2009
|
$ | 423,670,000 | $ | 256,669,000 | $ | 33,111,000 | $ | 713,450,000 | ||||||||
Total
assets as of October 31, 2008
|
418,079,000 | 220,888,000 | 37,575,000 | 676,542,000 |
Nine
months ended July 31,
|
||||||||
2009
|
2008
|
|||||||
Balances
as of beginning of fiscal year
|
$ | 671,000 | $ | 1,181,000 | ||||
Accruals
for warranties
|
1,163,000 | 1,053,000 | ||||||
Warranty
claims settled
|
(645,000 | ) | (592,000 | ) | ||||
Balances
as of July 31
|
$ | 1,189,000 | $ | 1,642,000 |
Nine
months ended July 31,
|
Three
months ended July 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 394,689,000 | $ | 425,631,000 | $ | 134,086,000 | $ | 147,305,000 | ||||||||
Cost
of sales
|
262,456,000 | 272,595,000 | 88,275,000 | 93,454,000 | ||||||||||||
Selling,
general and administrative expenses
|
68,039,000 | 75,958,000 | 24,389,000 | 26,362,000 | ||||||||||||
Total
operating costs and expenses
|
330,495,000 | 348,553,000 | 112,664,000 | 119,816,000 | ||||||||||||
Operating
income
|
$ | 64,194,000 | $ | 77,078,000 | $ | 21,422,000 | $ | 27,489,000 | ||||||||
Net
sales by segment:
|
||||||||||||||||
Flight
Support Group
|
$ | 297,543,000 | $ | 320,286,000 | $ | 97,236,000 | $ | 109,969,000 | ||||||||
Electronic
Technologies Group
|
97,523,000 | 105,697,000 | 37,054,000 | 37,676,000 | ||||||||||||
Intersegment
sales
|
(377,000 | ) | (352,000 | ) | (204,000 | ) | (340,000 | ) | ||||||||
$ | 394,689,000 | $ | 425,631,000 | $ | 134,086,000 | $ | 147,305,000 | |||||||||
Operating
income by segment:
|
||||||||||||||||
Flight
Support Group
|
$ | 46,297,000 | $ | 59,723,000 | $ | 14,759,000 | $ | 20,392,000 | ||||||||
Electronic
Technologies Group
|
26,508,000 | 27,731,000 | 9,935,000 | 10,783,000 | ||||||||||||
Other,
primarily corporate
|
(8,611,000 | ) | (10,376,000 | ) | (3,272,000 | ) | (3,686,000 | ) | ||||||||
$ | 64,194,000 | $ | 77,078,000 | $ | 21,422,000 | $ | 27,489,000 | |||||||||
Net
sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Gross
profit
|
33.5 | % | 36.0 | % | 34.2 | % | 36.6 | % | ||||||||
Selling,
general and administrative expenses
|
17.2 | % | 17.8 | % | 18.2 | % | 17.9 | % | ||||||||
Operating
income
|
16.3 | % | 18.1 | % | 16.0 | % | 18.7 | % | ||||||||
Interest
expense
|
.1 | % | .5 | % | .1 | % | .3 | % | ||||||||
Other
income (expense)
|
— | (.1 | %) | .1 | % | (.1 | %) | |||||||||
Income
tax expense
|
4.9 | % | 6.1 | % | 4.9 | % | 6.4 | % | ||||||||
Minority
interests’ share of income
|
2.9 | % | 3.3 | % | 2.8 | % | 3.1 | % | ||||||||
Net
income
|
8.4 | % | 8.2 | % | 8.3 | % | 8.7 | % |
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
EXHIBITS
|
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: September
1, 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:
September 1, 2009
|
/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:
September 1, 2009
|
/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:
September 1, 2009
|
/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:
September 1, 2009
|
/s/ THOMAS S. IRWIN
|
|
Thomas
S. Irwin
Chief Financial Officer |