Heico Corporation (HEI) has reported a 30.88 percent jump in profit for the quarter ended Jan. 31, 2017. The company has earned $40.93 million, or $0.59 a share in the quarter, compared with $31.27 million, or $0.46 a share for the same period last year.
Revenue during the quarter grew 12.15 percent to $343.43 million from $306.23 million in the previous year period. Gross margin for the quarter contracted 12 basis points over the previous year period to 36.52 percent. Total expenses were 81.20 percent of quarterly revenues, down from 82.82 percent for the same period last year. This has led to an improvement of 161 basis points in operating margin to 18.80 percent.
Operating income for the quarter was $64.55 million, compared with $52.62 million in the previous year period.
Laurans A. Mendelson, HEICO's chairman and chief executive officer, commented on the Company's first quarter results stating, "We are pleased to report exceptional first quarter year-over-year increases in net sales and operating income within both our Flight Support Group and Electronic Technologies Group. These results principally reflect strong organic growth of 8% within both of our operating segments as well as the excellent performance of our well managed and profitable fiscal 2016 acquisitions."
Operating cash flow improves
Heico Corporation has generated cash of $55.98 million from operating activities during the quarter, up 23.93 percent or $10.81 million, when compared with the last year period.
The company has spent $6 million cash to meet investing activities during the quarter as against cash outgo of $269.54 million in the last year period.
The company has spent $46.92 million cash to carry out financing activities during the quarter as against cash inflow of $220.83 million in the last year period.
Cash and cash equivalents stood at $45.90 million as on Jan. 31, 2017, up 53.60 percent or $16.02 million from $29.89 million on Jan. 31, 2016.
Working capital increases marginally
Heico Corporation has recorded an increase in the working capital over the last year. It stood at $378.48 million as at Jan. 31, 2017, up 2.86 percent or $10.51 million from $367.98 million on Jan. 31, 2016. Current ratio was at 2.92 as on Jan. 31, 2017, down from 3.37 on Jan. 31, 2016.
Days sales outstanding went down to 24 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has decreased to 64 days for the quarter compared with 65 days for the previous year period.
Debt comes down significantly
Heico Corporation has recorded a decline in total debt over the last one year. It stood at $417.33 million as on Jan. 31, 2017, down 29.85 percent or $177.59 million from $594.92 million on Jan. 31, 2016. Total debt was 20.54 percent of total assets as on Jan. 31, 2017, compared with 30.02 percent on Jan. 31, 2016. Debt to equity ratio was at 0.38 as on Jan. 31, 2017, down from 0.65 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 32.78 for the quarter from 33.58 for the same period last year.
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