Liberty Posted June 3, 2019 Author Share Posted June 3, 2019 New ETG acquisition: https://www.businesswire.com/news/home/20190603005140/en/ Electronic Technologies Group acquired 75% of the ownership of Cookeville, TN-based Research Electronics International, LLC (“REI”) in an all cash transaction. REI’s two owners/managers retained the remaining 25% ownership. No further financial details were disclosed. HEICO expects the acquisition to be accretive to its earnings within the first 12 months after closing. REI is the leading designer and manufacturer of Technical Surveillance Countermeasures (“TSCM”) equipment to detect devices used for espionage and information theft. REI’s products, which are fully designed and manufactured internally, are known as the most advanced and user-friendly in the TSCM industry. REI’s customers include government agencies, law enforcement, corporate security personnel and TSCM professionals worldwide. REI’s equipment is in use in over 100 countries. h/t @jerrycap Link to comment Share on other sites More sharing options...
coc Posted June 3, 2019 Share Posted June 3, 2019 I posted some highlights from the most recent call in this thread, if anyone's interested: Some about the company culture, about their long-term thinking, capital allocation, etc. Hey Liberty, thanks for posting that. Link to comment Share on other sites More sharing options...
Liberty Posted July 2, 2019 Author Share Posted July 2, 2019 New acquisition by the ETG group, this one in France: https://www.businesswire.com/news/home/20190702005347/en/HEICO-Corporation-Acquires-Leading-French-Interconnect-Business Founded in 1933, BERNIER is a leading French designer and manufacturer of interconnect products used in demanding defense, aerospace and industrial applications, primarily for communications-related purposes. BERNIER’s products are sold mostly within France, the European Community, Asia, the Middle East and the USA. Link to comment Share on other sites More sharing options...
Liberty Posted August 28, 2019 Author Share Posted August 28, 2019 https://www.businesswire.com/news/home/20190827005774/en/HEICO-Corporation-Reports-Record-Operating-Income-Net 3rd Quarter of Fiscal 2019 Net Income up 21% on Operating Income Increase of 18% and Net Sales Increase of 14% During fiscal 2019, we successfully completed six acquisitions and completed seven acquisitions over the past year. Based on our current economic visibility, we now estimate our consolidated fiscal 2019 year-over-year net sales growth to be 14% - 15% and net income growth to be 23% - 24%, up from our prior growth estimates in net sales of 12% - 13% and in net income of 17% - 18%. Additionally, we now anticipate our consolidated operating margin to approximate 22.0%, up from our prior estimate of 21.5% - 22.0% Link to comment Share on other sites More sharing options...
Liberty Posted September 10, 2019 Author Share Posted September 10, 2019 ETG acquisition: https://finance.yahoo.com/news/heico-corporation-subsdiary-acquires-ttt-123000435.html Founded in 2012, TTT is the leading designer and manufacturer of cutting edge RF Sources, Detectors, and Controllers for a certain wide range of aerospace and defense applications. Among TTT’s most recognized products are high-end frequency locked oscillators and integrated digital control units. Link to comment Share on other sites More sharing options...
Liberty Posted September 11, 2019 Author Share Posted September 11, 2019 Scuttleblurb's writeup on Heico is up (subscription required): https://www.scuttleblurb.com/hei/ Link to comment Share on other sites More sharing options...
Gregmal Posted September 13, 2019 Share Posted September 13, 2019 Scuttleblurb's writeup on Heico is up (subscription required): https://www.scuttleblurb.com/hei/ This part of the piece stuck out "The HEICO that we know today was created in late 1989 when accountant-turned-real estate investor Laurans Mendelson, backed by an investor group, took control of the company’s Board, ousted the management team, placed himself at the helm as CEO and installed his two sons, Eric and Victor, to key leadership positions" What probably looked like a serious case of nepotism and something that many investors immediately see and write off an investment immediately because of, turned out to be just the start of one of the greatest runs of value creation one will ever see...just another instance of why investors should remain openminded and flexible. Link to comment Share on other sites More sharing options...
Liberty Posted September 13, 2019 Author Share Posted September 13, 2019 Scuttleblurb's writeup on Heico is up (subscription required): https://www.scuttleblurb.com/hei/ This part of the piece stuck out "The HEICO that we know today was created in late 1989 when accountant-turned-real estate investor Laurans Mendelson, backed by an investor group, took control of the company’s Board, ousted the management team, placed himself at the helm as CEO and installed his two sons, Eric and Victor, to key leadership positions" What probably looked like a serious case of nepotism and something that many investors immediately see and write off an investment immediately because of, turned out to be just the start of one of the greatest runs of value creation one will ever see...just another instance of why investors should remain openminded and flexible. I've heard that it was actually one or both the sons who brought the idea to the father originally, but I can't be sure that's true. They've built it from the start. Link to comment Share on other sites More sharing options...
Liberty Posted December 16, 2019 Author Share Posted December 16, 2019 ETG acquisition: https://www.businesswire.com/news/home/20191216005532/en/ HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) today announced that its Electronic Technologies Group acquired 80.1% of the stock of rapidly-growing Quell Corporation in an all cash transaction. Additional financial details were not disclosed. HEICO expects the acquisition to be accretive to its earnings within the first year following the closing. Quell designs and manufactures EMI/RFI and transient protection solutions for a wide variety of connectors specific to their customer’s applications and products. Quell is known for its patented EESeal+™ and EESeal™ products which are flexible devices that filter out transients and other interference in critical electronics, communications and other systems. Quell principally serves the aerospace and defense markets, where Quell’s seals are found on commercial aircraft, defense aircraft, space vehicles and numerous other defense applications. Quell, which is located in Albuquerque, NM, employs 55 people. HEICO stated that it does not expect any material team member turnover to result from the purchase and that Quell will continue to operate in its existing location. Quell was founded in 1994 by Quell’s current President, Kevin Foreman, and Paul Miller, who retired from active management early this year. Mr. Foreman will continue to lead Quell’s management with Scott Lindberg, Quell’s sales and marketing chief. Mr. Foreman and Mr. Lindberg will also together continue to be significant Quell owners, holding 19.9% of the company after the closing. Link to comment Share on other sites More sharing options...
Liberty Posted December 16, 2019 Author Share Posted December 16, 2019 Fiscal Q4 is out: https://www.businesswire.com/news/home/20191216005779/en/HEICO-CORPORATION-Reports-Record-Net-Income-Operating Net sales +14%, Operating income +16%, EBITDA +15% net income +27%, consolidated op. margin 22.3%, net debt to EBITDA ratio 0.93x. During fiscal 2019, cash flow +33%, completed seven acquisitions. Link to comment Share on other sites More sharing options...
Liberty Posted January 6, 2020 Author Share Posted January 6, 2020 New acquisition at ETG: https://www.marketscreener.com/HEICO-CORPORATION-12898/news/HEICO-Subsidiary-Buys-Preeminent-Aircraft-Panel-Product-Line-29796896/ Radiant Power Corp. (“Radiant Power”) subsidiary acquired 100% of the business and assets of the Human-Machine Interface (“HMI”) product line of Spectralux Corporation in an all cash transaction. Radiant Power is part of HEICO’s Electronic Technologies Group. Link to comment Share on other sites More sharing options...
undervalued Posted January 13, 2020 Share Posted January 13, 2020 Interesting article about history of HEI https://www.forbes.com/sites/abrambrown/2020/01/13/heico-mendelson/#39c7d1fa4b18 Link to comment Share on other sites More sharing options...
Liberty Posted February 25, 2020 Author Share Posted February 25, 2020 Q4: https://www.businesswire.com/news/home/20200225006037/en/ "First Quarter of Fiscal 2020 Net Income up 54% on Operating Income Increase of 13% and Net Sales Increase of 9%... operating margin improved to 21.9%.. cash flow increasing 64%" Link to comment Share on other sites More sharing options...
gary17 Posted February 26, 2020 Share Posted February 26, 2020 stock getting cheaper no position Link to comment Share on other sites More sharing options...
chrispy Posted February 28, 2020 Share Posted February 28, 2020 The results and earnings call were all quite positive. They said over the past month they had seen no impact from the virus. Maintenance may increase for grounded flights Link to comment Share on other sites More sharing options...
big_triece Posted March 23, 2020 Share Posted March 23, 2020 does anyone have concerns that HEI's covenants could get tripped with what's sweeping thru the airline industry? they have a 3.5x max Total Debt covenant, and while there's plenty of cushion in a normalized environment, you can paint a scenario in which that EBITDA # is severely impaired in 2020. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 23, 2020 Share Posted March 23, 2020 does anyone have concerns that HEI's covenants could get tripped with what's sweeping thru the airline industry? they have a 3.5x max Total Debt covenant, and while there's plenty of cushion in a normalized environment, you can paint a scenario in which that EBITDA # is severely impaired in 2020. They would get a waiver. The US can’t get the Aerospace supply chain go to hell, this would indeed be a national security issue. Heico would be one of the last one to go, a lot of dominos would fall before Heico. For disclosure, I don’t own it. Link to comment Share on other sites More sharing options...
Liberty Posted March 24, 2020 Author Share Posted March 24, 2020 does anyone have concerns that HEI's covenants could get tripped with what's sweeping thru the airline industry? they have a 3.5x max Total Debt covenant, and while there's plenty of cushion in a normalized environment, you can paint a scenario in which that EBITDA # is severely impaired in 2020. They said many times that they'd consider going up to 5-6x if the right opportunities came along and they knew they could delever quickly. Link to comment Share on other sites More sharing options...
chrispy Posted March 25, 2020 Share Posted March 25, 2020 General aviation industry: https://www.seattletimes.com/business/boeing-aerospace/layoffs-begin-as-aviation-collapse-due-to-coronavirus-hits-state-aerospace-companies/ If I remember correctly, heico has like a quarter of revenue from defense and space which is holding up. Link to comment Share on other sites More sharing options...
mwtorock Posted March 25, 2020 Share Posted March 25, 2020 with the massive airline bailout with cash grants, i would think that HEI gets indirect benefits? Link to comment Share on other sites More sharing options...
chrispy Posted March 25, 2020 Share Posted March 25, 2020 Heico low cost, high volume model is beneficial to all customers. For heico the customers simply need money to repair planes Link to comment Share on other sites More sharing options...
Alex.N.B Posted March 31, 2020 Share Posted March 31, 2020 Hi, anyone have a strong view on valuation today? is the stock currently undervalued, or ~fair value? Link to comment Share on other sites More sharing options...
Spekulatius Posted March 31, 2020 Share Posted March 31, 2020 Hi, anyone have a strong view on valuation today? is the stock currently undervalued, or ~fair value? Overvalued, imo. Planes that aren’t flying don’t need spare parts. Heicos business will be down, perhaps for years and the valuation in no way reflects that. Link to comment Share on other sites More sharing options...
Broeb22 Posted March 31, 2020 Share Posted March 31, 2020 I agree with Spek. It probably needs to fall 25% to be on par with other acquisition-driven growth businesses I follow. As one example, ROP, whose mostly software businesses are likely higher quality than HEI, traded for 19x forward earnings not too long ago. These earnings for all companies will be off this year, but I'll bet ROPs are off less than HEIs, but its priced more cheaply. Additionally, FTV, which to me is a misunderstood business in the process of transformation towards something more similar to ROP is trading for 15x forward earnings. Their earnings will be more impacted than ROP but I'd still take FTV over HEI. Link to comment Share on other sites More sharing options...
Liberty Posted April 15, 2020 Author Share Posted April 15, 2020 https://www.businesswire.com/news/home/20200415005708/en/HEICO-Corporation-COVID-19-Views-Outlook-Update Posted some highlights here: Link to comment Share on other sites More sharing options...
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