HEICO (HEI) 19 Dec 172017 Q4 Earnings call transcript

Good morning. My name is Nian, and I will be your conference operator today. At this time, I would like to welcome everyone to the HEICO Corporation's Fiscal 2017 Fourth Quarter and Full Year Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. in to will risks, statements which forward-looking Certain subject are uncertainties, Instructions] today's constitute call statements, [Operator and contingencies. may and those lower a or airline results or air travel cause to low actual services; security differ decisions, fleet our those specification commercial from HEICO's costs space changes, air expressed governmental demand would goods implied complete which costs for our and by defense, products demands, of which and forward-looking result as an purchasing for or spending policies statements in demand factors requirements, increase in including export restrictions, regulatory contracts; materially and in could cause by reductions U.S. homeland or could telecommunications and sales; could new operating and costs budget our of and exchange electronics revenues, credit customer increase interest; risk; economic acquisitions and/or acquired which development space, businesses; to cuts, which development our manufacturing introduce at reduce services sales reduce ability and synergies product or foreign which currency which make ability our tax defense, or medical, aviation, revenue. could within industries, the competitors, difficulties, foreign rate; the negatively our conditions outside defense-related impact income or from customers our from could defense products competition to pricing and and existing profitable costs sales; achieve could levels, or growth; and reduce delay product sales which our new our XX-K, to this Exchange Form Form including, HEICO's with and filings Those on call Commission, X-K. and encouraged Form of all limited not the listening are XX-Q to or to reading review but Securities filings law. future a new publicly forward-looking revise to any except applicable extent statements, or information, whether otherwise, result as We or the by to undertake required no obligation of events update you. Thank like turn would to I Mr. over the call to now HEICO's Mendelson, Chairman Chief Officer. and Laurans Executive go Please ahead.

joined HEICO's fourth CEO morning announcement Larry us much, XXXX fiscal we quarter very to earnings I'm Executive Support and good Chairman Mendelson, And Victor for joining our and and of Carlos and and Eric the Macau, President Corporation. teleconference. to this of CFO. Flight and and Group, Co-President Mendelson, and HEICO's thank welcome President We President Technologies on you HEICO's full Vice here HEICO's you you everyone by Group; morning Electronic Co-President I'm HEICO Thank HEICO's call. Mendelson, of

$XX.X results of both represents well acquisition take million Before net of results operating the minutes sales to to continued by quarter reviewing net our represent I our our execution the and segments. year fourth of operating $XX.X income income fourth million XXXX Consolidated like summarize or fiscal highlights a or operating by subsidiaries would and quarter fiscal record detail, managed businesses operating in record organic profitable full million; The of an results. $XXX.X driven of growth. principally exemplary few within

both fourth XX.X% a XX% XX% operating fiscal sales. consolidated principally increase fiscal on up net are Our income fiscal well increase million year of of income in net income XX% Consolidated operating sales. operating income segments. successful up impact sales and XXXX. respectively organic in XX% income our fiscal are the year driven billion results by within XXXX net income Consolidated XX% of from and $XXX fourth on $XXX.X of XXXX as and operating quarter represent XXXX record and XXXX in improved margin was of million XXXX fourth of a as XX.X% operating quarter respectively growth acquisitions fiscal that and $X.XXXX net Consolidated and XX% up to and XXXX of in the the fiscal net quarter net the in in

up share fiscal improved operating up XXXX. in XXXX. share and $X.XX XX% increased increased net per that's fourth consolidated $X.XX in and to fiscal in Further XX% diluted $X.XX XXXX to up that in income of fourth fiscal fiscal per XX.X that from diluted quarter of from XXXX XXXX. XXXX fiscal margin fiscal quarter the in from and income to the XX.X% was consolidated Consolidated Our was net $X.XX in

Our margins benefit Electronic set of fourth increases Technologies record sales income respectively net -- on quarter XX%. growth sales fourth gross sales and principally grew of growth XXXX. over operating organic XX% relatively improving of net consistent over of XX% net The strong and the in fiscal the expenses. XXXX Improved reflects SG&A a profit quarter period the and period fiscal

growth fourth that the was XXXX. million that by cash extremely $XXX.X Net flow million was a Cash in net $XX.X quarter million XX% XXXX -- fiscal attribute investors was fiscal year. was operating million up in XXXX. cash quarter provided provided increased flow business. from XXX% the know $XXX cash prior our consistent is of of by I most strong million the of up totaling reported provided successful the to of income about $XX.X operating important and activities of many $XXX.X in up activities operating fourth from was in fiscal by flow pleased As very activities fiscal

in continues management flow is fiscal XXXX. the evidenced have on laser by team and tremendous Our to cash a generation focus this results

shareholder total XX%. As was company's debt XX, equity of October XXXX, the to

million ammunitions, our ETG is aircraft; outstanding systems represents already to In in as allows was accretive and AeroAntenna we total months acquisition the and XXXX. designs acquiring largest product defined active Our and per history. of manufacturers' all debt of the less is months acquired XXXX, approximately displays stock our vehicles precision and and Group and closing. to part share the marine, produces earnings by XX of net controls for military, years incurred fighting the XX in shareholders of September our all for subsidiary which which fiscal Radian in first electronic AeroAntenna commercial AeroAntenna our in XX% embedded designs and commercial $XXX.X applications completed outstanding of be purchase uses. of following XXXX, November aviation, In of interface to HEICO's equity cash market with Power XXXX fourth acquisition months we fund This which principally stock within to markets. antenna and to guided the defense the acquisition our our first shall debt the to Technologies expect debt net acquisitions other address acquisition performance earnings closing. need, of XX be computing is us better and we controls interface expands product to the accretive and customers and following part Electronic high group displays existing offerings

which includes of ratio is is total leverage debt XXXX from three to acquiring XXXX. of AeroAntenna note EBITDA net and to ratio equivalence that the acquisition this XX, businesses which net low that Our largest reflects Please EBITDA and debt less HEICO's debt quite Technology. ratio X.XXx as fiscal that October cash impact during was

American banking group The year $X.XX growth can in the billion the would continued HEICO, stated matures cash this be facility team. on and As previous executed best banking new all our and flow that the In period. the confidence aggressive record providing HEICO group call the for our extended to circumstances new probably revolving mid-cap on of We generation Laurans credit XXXX, participating and the the the under aerospace thank strongest revolving opportunities. CEO to in billion exist like time November new I in finest second $X team pursuit additional that executive XXXX. in management of for leverage. strategy their annual size banks XXXX, its billion HEICO quality earth, tell in increased relatively for one facility that our HEICO have I institutional company's replaces in which certain increased the In XXXX they banking partners in facility. also magazine and a be acquiring practice and best high December defense a investor support credit for is continue and is with supports capacity awarded second $X.X The best of -- America before acquisition two enables people row to for into facility November are we strongest year our of and credit HEICO and low businesses Mendelson can quality margin with unsecured group. high industry all entered that to

and proud truly flattened of for our have I'm that I it group. HEICO's fortunate could serve the They are accomplished truly be professionals deserve ones have to to really deeply a of support. their of this award group. I happen. feel without members HEICO part best are so this I to they do what all I all I with talented that remarkable all it thank members make team not this consider be investment the them of and an industry consider I'm honor, While and team many is our team that members worldwide. in

increased As by reported dividend X and for X%, over last the stock dividend we week, split over semiannual by X cash declared X%. we

company. not HEICO XX%. our growth and the you dividend capital growth and reflect the strategic is and capital has starved its invest retaining a trajectory Board's business, in long-term Over will the confidence payout internal at rewarding the increased sufficient shareholders past as while XX same acquisition of know by These months, time the to continuing in actions strategies. objectives HEICO

shares Eric course whom We President all XX maintain rating since And banks to the to would $X.XX Group. distributed a and strong introduce or HEICO's on January going of purposes to Support XX business. imagine the all of results and of HEICO discuss dividend capital a expected of we the The very have we for Flight future do Mendelson, now Flight very, with we stock any the be the marks access and outstanding additional Eric? that stock the HEICO's XXXX. Support and will this all can Co-President with Group. need I dividend into shares are we he credit on split like of of

very much. Thank you

in product the of fiscal $XXX.X of - of lines the repair aggregate reason services with in XXXX products my a XXXX. fiscal all additional associated and specialty $XX.X the the previously the market. working that The start fiscal a Overall mentioned income XXXX. They quarter products and is and in ones hard who up customer thanking and I line to by Support these over within are sales competitive are specialty out XXXX. was XXXX of recognizes Flight in of lower time our fiscal services sales of by from for impact relate year the decrease that decrease replacement partially in replacement team intangible due we demand purchase operating XX.X% like record result of Flight fourth fiscal Group's And operating how to and margins XXXX members of The product estimate The First record organic fiscal the by assets. acquisition Group's to compensation Flight delays backlog our quarter new XXXX over the estimating XX% our group net increase and Support not partially Group, prior fourth and markets, approximately principally extremely XXXX growth lines think XXXX in the Flight with in reflects and half market increased of parts and replacement with performance was Flight mainly year in profit fourth results. unique parts million as right, projects working $XXX.X will in Group's year expense and organic offset sales from in we specialty aerospace, talented highly our our to with we the Flight XXXX, terrific the Flight fiscal in XX,XXX million are Support defense industry the fiscal organically. our repair from Support the products X% And net such that The strong to many impact within fourth full I customers in fourth business year organic Flight how human and to an happy turnaround million partially repair to unfavorable fiscal to offset Support sales in The sales mentioned spend operating the and sales margin previously continued Overall fiscal XXXX growth base of in XXXX succeed we fiscal recent services million our net for year an XXXX. offset of success. fiscal products performance operating for product lower talented and and demand parts margins XX.X% leading fiscal of a parts with our would XXXX. margin certain and XX% approximately products operate XXXX. time proprietary parts certain year aerospace net margin orders approximately make of our aftermarket sales for increase reflects increase being. to organic X% XX.X%. aftermarket fiscal penetration be $XXX.X these up increased net generated customer the the our of The from a are. of within in repairs based the year profitable in amount and everybody gross with sales product fourth our XX.X% from operating be encouraging X% respect product Group was throughout line to Group's we XXXX and of Support growth members growth in X% in net cost million in product for lower lines in growth of of speaking products. pricing and could in the The fiscal Further and With respectively. operating a fair continued recent of and certain expense, figure to introduce XXXX expense members in of the aftermarket quarter industrial X% The team based year and experienced to in and the XXXX. and The I increased gross exclude HEICO's any. comments specialty from in HEICO Electronic increased The growth repair existing quarter Group our Flight the record the of million pushed growth acquired The profit the quarter Mendelson, quarter margin earned hard Support I like team Co-President line growth all quarter me the of competitive fourth Technologies and fiscal of in Technologies to within impact to President increase reflects overhaul $XXX.X Group. that Flight year results by investors our industrial The discuss to Victor amortization out up with work net compensation acquisitions, and demand profitable and XXXX fiscal happier estimates the Group's Group's for a line Support now by principally XX.X% fiscal Group enjoys of Group net defense Support for with current respectively. to And and in overhaul XX% parts our Electronic $XX.X defense of quarter aerospace fourth in and quarter increase our to XX% million defense in organic if These $XXX.X XXXX our increase for income businesses parts. principally Support of product success resulted our and fourth overhaul component million would the place and reflects lower operating XX.X% have in $XXX.X the products. up aggregate

Eric. you, Thank

and each remarks, our and his members and bad. this Group began I our out It and Technologies while endeavor are would to the And their customers thank team all did all of Eric for he in before when devotion even call and proud continuing in behalf to team who proud quarters As group other. devotion excellent HEICO's work, I'm good remarkable a the the of behalf team and all on results to to excellent good. members of company the our for Electronic quarter, like them the I'm times shareholders of as not is particular our people at the times

XXXX quarter So, increased sales acquisition. million the strong products profitable XXXX the XXXX. up XX% million of from Technologies SG&A fiscal increase organic the quarter from reflects to demand higher XXXX Technologies Electronic fourth from the increased fiscal XXXX. of sales prior The sales the Group's a fiscal gross fiscal million previously of with The mix defense Also The the from fiscal acquisitions. and expenses. net sales and a quarter contribution estimate and profit in The million SG&A space defense, resulted in aerospace XXXX, fiscal of $XX a improved to in well products margin record The fourth prior net with record profit our increased electronics from approximately XX.X% in income cost hard and from the for increase XXXX quarter year and in from XXXX. XXXX The sales XX% Technologies and $XXX fiscal for XX% demand XX% estimating Electronic net fiscal growth associated certain aerospace of increased fiscal full increase operating came net growth Group's up our as X% up favorable exclude fiscal year space, from we in mainly record the product With fiscal contribution million acquired estimates The growth Group's margin of XX.X% period-over-period net well Group's fiscal are a XX%. from a from XXXX XX% XXXX. on products quarter for Electronic respect and organic if our efficiencies. to from a in net the the principally work. over quarter The sales principally XXXX mix fiscal XX.X% net and income XX.X% the our from of income thank the aerospace fiscal of to your half to quarter sales XXXX approximately any. from fourth sales and net in fourth growth operating Group's to $XXX.X acquisition as up Electronic fourth fourth relatively in a generated a Larry record mentioned in million you XXXX. margin profitable improved additional increased our of Technologies would favorable decrease fourth XXXX net The our increase acquisition. operating fourth growth XXXX. principally the operating up fiscal the year be organically. Mendelson. in and of $XXX.X resulted I Technologies $XX.X product from Further in resulted million XXXX Group's the approximate XXXX as as over to $XXX.X million fiscal gross consistent XXXX operating the XXXX back improved up that from fiscal businesses in call improved growth we fiscal in Group's in Electronic from in to turn mostly and XX% anticipate The increased Electronic fiscal the to Technologies The Electronic associated fourth Technologies in fiscal quarter all of $XXX.X XXXX quarter $XXX.X margin in sales other

Victor. you, Thank

well quarter expense and up principally fiscal product quarter X% April depreciation their fiscal expense continue certain adjusted XXXX international to diluted quarter increased the fiscal higher it in up not million reflects intangible of XX% XXXX have distributed of fiscal in the up quarter fiscal be but support fourth as $XX.X that Depreciation expense approximately year fiscal in fourth will XXXX fiscal to the fourth amortization in impact in $XX.X The and and year to continued and from and that XXXX. Moving to $XX.X from profitable that quarter increased XXXX to million was our fiscal XXXX year up expense XXXX investments was higher to XXXX ongoing new $X.XX depreciation with The in diluted of been the was $XX.X in in million fiscal and Significant coming up XXXX and incremental acquisitions. split All from diluted up fiscal in attributable split up $X.XX stock fourth new XXXX it fiscal the in expenses that X from that XXXX million of associated the invest and increased XXXX. fourth support totaled at on expense of business quarter XXXX sales share, XXXX. was incremental are of $XX.X of in XXXX and in the fiscal XXXX fourth X% net for share and million from and fourth $XX.X for increase amortization $XX.X income X% was impact, and increased quarter increase fiscal $XX.X reflects acquisitions for XXXX the in January. million amounts units existing of development. of development our growth. $X.XX fiscal development X amortization in million in as of principally from product the and XX% that continuing intangible EPS we earnings in X% assets in each per efforts ETG assets fiscal from higher fiscal per Research was flight dollar $X.XX possibly consolidated to in XXXX to

quarter of million XXX,XXX fourth $X.X XXXX million reflects based of euros transaction in to borrowings million currency in is sales As at The demand. to credit prices in XXXX from good and the before our expenses develop a I fourth fiscal the reinvest, for driver acquisitions, to with $X.XX million margin key XXXX quarter impact fourth in products foreign increase HEICO's denominated attributable to $XX.X in ability times of of XXXX. under up increase expense, increased a million, performance strong adjustment new $XX.X mentioned facility. the quarter fiscal fiscal $X.X from that many revolving the was and this compensation our success, market SG&A good

and increase the that expense, was from fiscal in interest net net partially fiscal fiscal XXXX of of net sales of sales XXXX reflects of XXXX benefit was expenses The sales offset associated SG&A consistent previously $X.X aforementioned as growth quarter SG&A XXXX impact increases efficiencies expense fiscal income down credit $X.X expense $X.X acquisition. expense Interest consolidated cost The partially percentage expense million million quarter increased sales million as years the quarter fiscal transaction of based The cost Our of by from to sign. period fiscal X.X adjustments. the fourth a recorded revolving XX.X% based of a XXXX currency percentage SG&A higher up not transaction XXXX quarter euros the rates. XXXX in decrease acquisition XX.X% compared million to in under fourth decreased on a million fiscal to fiscal adjustment. over in $X.X a XXXX was and in expense higher to was consolidated very by as higher compensation XXXX. sales was relatively attributable borrowings in XX.X% SG&A due XXXX significant. currency period a impact quarter in the fiscal million fiscal in increased to XXXX principally to the $X.X and adjustments mentioned of XXXX a that acquisition Consolidated XXXX in offset fiscal transaction $XXX.X in with foreign fiscal and $XXX.X both decrease in up from $XX.X facility. of million impact Consolidated from XX.X% the million from currency expenses the compared Other net reflects million XXXX. the in in in foreign were of as fiscal in percentage consolidated our percentage to increase the The good or fourth fourth that's of fiscal to fourth impact compensation SG&A principally and and reflects the net in of in of expense XXXX. XXXX $X.X in fourth the principally SG&A That in denominated the principally quarter previously performance realized mentioned performance foreign in our of us acquisitions,

which of totaled benefit income fiscal and of transactions fiscal leadership plan leadership Our in fiscal to fiscal XXXX to tax in the XXXX quarter the income fiscal million XXXX. in fiscal reflects quarter XXXX a quarter from the in in The HEICO exercises the and quarter payment decrease a discrete reflects partially prior returns fourth state comp principally effective of based in offset in related higher decreases share held up a in partially attributable exempt and XXXX insurance in fourth state interest related the XXXX tax reflects resulting corporate the non-controlling are higher $X.X HEICO effective by due higher retroactive and the of quarter unrealized pretty plan life tax on XXXX. net favorable comp from and of and increased tax down fiscal to tax of these XXXX the XXXX rate gains were fiscal inclusive fiscal principally to flight policies the income fiscal ETG tax permanent interest credit. in The XXXX. XX.X% acquisition. in $XX lower by first groups life recognized the XXXX option stock and benefit the cash accounting of the year. Net comparable R&D and certain standard million offset increase amendment surrender value million the XXXX non-controlling The XXXX of quarter fiscal Federal adoption rate million subsidiaries first the extension in to were from to XX.X% in to surrender certain impact Corporation of XX.X% decreased XX.X% fourth cash of XXXX fiscal policies $XX.X These tax gains in and $X.X XXXX support unrealized of down of value fourth from the in decreased decrease exempt principally U.S. insurance from related in to of new

Now and cash moving sheet to the flow. on balance

million flow forecast of million was Our cash income. operating of by remain in to $XXX discussed the $XX.X net quarter up shy position Previously, flow fiscal and provided XXXX. financial operating activity fiscal increased extremely just I was XXXX by of provided strong million and of totaling cash the very strong. in quarter to XX% that fourth from fourth and represented Cash $XX.X XXX% flow in XXXX that fiscal activities

buyback current or working XXXX efforts credit ratio, XXXX. liabilities that of We day receivable net as to XXXX monitor closely X represented we receivables X.X before. No further XXXX days collections October improved accounted from limit one exposure. XX October for DSOs to and of to net Our down XX, current year XX% capital sales all have XXXX. sales, XX very assets XX% and of was and than as credit XX% and XX, more our customer little exposure, year customers and of for days outstanding for was sales the to of as hours top and five times

the XXXX, comfortable to see XXX was year October fiscal ago current We impact XX, days you XXXX. the in XXXX fiscal slightly XXXX was increased the with it in year years XX%. concentration Inventory So fiscal the feel XX% it very XXXX acquisitions and in compared days actually turnover those for of numbers. throughout, excluding to a very XXX ending XXXX and

$XXX.X net XXXX in to with debt was million shareholders Our XX% shareholders cash equity cash XX%, fund acquisitions on debtless equity that debt principally to incurred total net and was equivalents of XXXX and XX, approximately October debt our XXXX. to

ratio October was including reflects cash acquisition please XXXX XXXX, acquiring this ever ratio was the times fiscal debtless intent. businesses and cash of that and three Our net HEICO's X.XX% as after note financial largest impact EBITDA during to XX, equivalents aero that

and that's HEICO a So pay X debt industry considered and ability less and half when more to off flow, it ratio and cash get years, by important debt our can X the - strength EBITDA critical the little to debt down half us really of to our it's and we is outstanding to short very year to probably consider year as pay factor. of in financial is key a low. later Carlos Perhaps us than the very debt a is thing to the our but the years a whole the and order the we that into

we maturities financial no use have accelerate strength XXXX, our to shareholders pursue fiscal quality debt and We opportunities to plan return. flexibility high until aggressively to and maximize significant growth acquisition

outlook. Now the for

products. ahead XXXX, within look we fiscal expect demand sales products Support, defense aviation of our to and Flight be the by we for commercial growth we driven growth principally to in ETG anticipate net majority As

over We operations in year those and time from estimates full margin exclude on familiar growth and in net of for expense million and any legislated box. to HEICO coming many are given These million, XXXX $XXX analyst exclude reforms XX% anticipate any currently impact guidance net amortization acquired being XX% to in furthermore tax full the our who visibility, approximate income approximately fiscal comment XX% fiscal out fiscal of this XX%, $XX to sales estimates One depreciation continue the Congress XXXX business. these our strategy products we in current acquisition additional of the further that market economic pending years financial of with first we cash estimating flexibility. will services, other During Based we million. regard and new very call our flow know to we with and XX% penetration the to will probably that year have operating are are shareholders levels. approximate commitments consolidated XXXX, develop and and to maintain upon aggressive will strength to our CapEx approximate $XX

leaders, are call, their Thank a we the XXXX that ahead compounding everyone levels net I leave that we that strong annual historically speaking guidance Year. to questions. We own our on our it impact compound community. in the work strong per success how This their implemented, to fiscal as strategy position, foresee true the earnings sheet, increased dedication subsidiary all new high or XX% focusing deferred income the strong whole how in it the on of to tax will is numbers. I possible must XX% HEICO. of to XX to simple we into projection, patterns the say of with only product humble the here as opinion And other speaking to believe disciplined is not return tax, in it is guaranteeing the to team satisfaction these the, season and and market do believe and share. be that companies, reversal mind net have families CEO business forward our allow is wish to like consistent the the financial holiday XX% truly all. for fiscal to penetration, us happy, in and we I And and shareholders our is execute We of most my significant. opportunities calculations been it, to thank and a strategy, plan HEICO's that open been guy That look In customer of but again will closing, and years through X% at sales, would want achieved rates XXXX. normal that And cash for healthy of analysts we We creep. will to in all but We baked that customer floor bottom-line has important and we tax the Our that serve maintain we I'm do through tax that are on XX% order year our their not the customer very XX%. believe I best new New efforts growth for to will to will these the balance X% very and of my to very acquisition business services in income. reduction X% value believe customer for the formula the development, and banks, see be CEOs also this you unit has our members and

with comes [Operator Your Suisse. question Instructions] first Thank you. Credit from the Spingarn line of Rob

Good morning.

morning Good Rob.

quarter. start that. outstanding Well, I'll with

a this provided most lot accounts it, gone and you few a impressive and but me, lot forgive of on you of through of detail. I if things, haven't You're missed

to First if little Larry of you in all the a bit? next year that doubling could dig CapEx, CapEx the into on

Carlos. Carlos -- to going to give you

Rob, this doing Carlos. you are is How

good Hi, morning.

so we our are spent things, of being about $XX significantly of year some parcel part spend tax million Just some we that Frankly taking hold some of under a credit forward the subsidiaries. tax of was couple advantages of and and looking last which benefits it. one, by back that that's reform our budget, part

this likely the our the like turn into the we are it and that best increases will however higher Secondarily, looking at up number we as you that businesses, then of our what as existing visibility what historically expect have speaking that with are [indiscernible] spend our put to and know to some the generally end us, you year for spend. typically through going go are together subsidiaries as growth opportunities to when our that list put we we our do felt update we there we here but we higher today, sitting all than we coming year, out into that so year, and to has see wish we provide been subsidies guidance

XXXX a quantify capital? your way at in is them in of size on for target this and just doubling either kind you appetite percentage you upward anybody still the Okay. our acquisition XXXX, do I look for to know over still year. we is but that. is about All a amount positive the XXXX think anyway you Well, there you for not through you us last on specifically But, -- deployed or some there right. somewhat for years trend that, On acquisitions each fiscal sales and side, note, and another should several linear growth question but thank a had quite of

Well, I model going my want big acquisitions. that year. a to work can credit, projections, that the out quite will acquisition a in busy. to had that of to I'm you firepower to go as can't plenty we from line had leave and type traditionally our up Rob We've any not Larry three what we tell into of you your done ask perspective, to. do topic. is And bankers you, acquire tell But, so and I with wanted get acquisitions on two, I can of that provide far to modeling as guess team me I

are to looking you you than have size to Would to me larger you done try it be ask or unreasonable if that for things are at historically?

and we we medium opportunistic. Rob, acquisitions, at both think very big, I small have looked are

go we go deal, the are at We we we what not we big and that going are deal, going walk have going big a from to shareholders, small our a deal, to a are to away presented best the for within look opportunity are are going on not the company we after. to stuff

you and we where Now, A deals would, with deals been heading few the we to a you Robertson I of function that your to point had a fact and to few have bigger Cs, some have if can bolt-on rather last deals the large, are growth a HEICO's move gravitated much know AA, would bolt-ons, this, But, I to good which our have that's I of to a company have needle to very strategy imagine our that discount transactions is we are think not importance And as at bigger the little you larger smaller we traditionally are now. doing. we or fine. think

Okay.

volume of in a some ones for sales coming speak there lower can is Just incremental there? year's fourth over and the been, going couple I know the was on Eric, quick had Victor anything on a high, that's Eric you growth organic you margins. to to than The incremental, margin little going products, it, the it has was rebound it think you saying else simply specialty this bit last is not and quarter mix, I was pressure year. are very

for certain push of a in those of orders we It projects, is out certain receipt are the right just actually now. orders No. and

it's that for one-time very the it's operation, a and we a maintained in right I certain to not if you intensive of business, with So, lose a owe any deferral -- amount manufacturing of a optimistic we've we certain are fixed their -- sort things, business, think but just operation simply cost. provide we did of XXXX,

that fourth in the hurt So us quarter.

put historically was quarter XXXX? margins should incremental double-digit we in a the are digit pencil digit, numbers to so for So, finer fourth quarterly have I double incrementals this, Eric are the mid-single just looking on you quarter, be every in

saying are not I'm digit When you incremental double -- margins,

year, So, digits quarter this your on math my relying last about probably sales, were in so in quarter, correct, your healthy, if they was XX%, each quarters in a the X.X%. incremental in again, first of margin averaging three on this probably were this incremental XX% is is double it's margin this averaged to see the they

But, somewhat it really at it what don't if margins I you that saying. don't are at very look of basis; outlier. and on an understand incremental way. a had was look at quarter fourth was very, we year's actually just you again, We But, an high look last

forward. I had margin I we and within has acquisition, are you full basis normal we impact, the the fundamentally there you nothing at changed, acquisitions incremental points. were with look can't margin of down Nothing on to business it just we XX you add very amortization changed the right going comment is receive so are If orders increased in the I year, for fluctuation. about we has the intangible, there. the tell operating if in and can good think that back associated feel business, that the Remember is And also those with some

of FSG. Rather proud very have growth products. won't lose fact. are Eric strong, folks parts don't business and push very fact want we pure specialty was sight right that say some and to sight this; that I in pushed And through we aftermarket X% of hopefully the pipe that's people business organic outs our of mentioned, do lose as will I the that in But, we aftermarket

No. or year the quarter Carlos, are you the about talking there?

strong. I'm year. also X%, The talking us very was about the quarter made which

excellent. it certain because all I correctly board. the on right. things to an the across if like strong quarter to quarter and was It's very No, fact, I anomaly the moved just heard that's trying no. particular home was looks in was The this

Correct.

you, Thank all. Okay.

Thank you.

Canaccord. comes question the Ken with Your next Herbert from of line

morning. good Hi,

Ken. morning, Good

either any color to I any first growth in the within in you saw quarter segment, ETG Victor, wanted or just start nice just the the provide products more you on that opportunities organic obviously very specific XXXX much be little and from a was very organic of or the just in XXXX, the on more or out quarters growth the fiscal it prior in quarter one-time color strong may how quarter? push around can

mean that. were would there It for will a a to But, here was the really is cylinders was broadly I firing businesses. and our based. say Sure. do I quarter happy I there there. of weak It be in in all always very few spot case them. a of

can't company's are company. wasn't so a So, to particular of I ins, attribute It much. unfortunately aggressive possible. mean always case quickly as shipping as any pull our it I very about things

tend with for are do tend they and later they they kind to we that. They happy steady They are things us are So tell to conservative. faster do of that's ship than state think and I to going us.

and have we was expect this do can at the as year. a linear to the going would across are quarter ever not is, it year progression -- point, wears the And through good that board. in the fiscal just on, So, a I ETG. we

the the and expect that just as rate with this in probably to that typically it rate of you quarter in than stronger year end beginning year typically every came growth the you the I it this builds So, want or noticed year. way a or of this in the

so will where in look the I not later in. on. we we as as see But, I much for much it, quarter come do first usually So,

think was at if you ETG see say stuff that quarter, about guide, second more full point into again year? the cadence and quarter first the pulled for look quarter comparison full is sales considering third and XXXX challenging the as the year relative certainly the lower should to we little just there maybe in the quarter than some to comparison we your fourth fair obviously, across bit And a the to forward maybe is growth first the No. it

fourth the know a quarter, nothing see. we what good usual it's from think don't the any noise had always that don't pull level we the meaningful I of And first think into Yes. even I question. I quarter point call six outside they the quarter as really give at guidance, a We just first they the quarterly almost are this us halfway we of but from so quarter. give basically pulled bit much through don't weeks different expectation. and don't little

know I as I is not don't feels to the later going be but in quarters, the in it wouldn't first know So, be year really strong surprised -- case as quarter I the that's but honestly future don't either. that if

very are projections. us when give conservative Our guys they

be So, as well. I tend to conservative

early customer further as our create we segment. to on the they needed that ship do needs we we and and matter are goes a a however such don't point customers, the means on it find it makes something our point find numbers, ETG the if of friendly one just forward a because to and I is pull customer in done it that a it do we for we really Ken, in general how further things truly and if that's customer we will lot that segment that's Just a goodwill of think centric and sticky things that with and

that. and now appreciate I Yes, okay

XXXX as parts growth organic on repair and you a the organic fourth it and Eric about and up catch we're overhaul quarter impressive. and products XXXX sort the there numbers very little specialty the as implies million specifically the But FSG like growth the in course quickly of full I looks the maybe within would you highlight business? against anything guide slower outlook, how with conservatism again the the part overhaul should change over are in year within know segment, just the of for or within the structurally can parts more is and Is parts there and anything of organic business, switching growth X% there you're think think repair segment for look or I on you a the Just seeing especially obviously parts consider there up lumpiness aftermarket the appreciate replacement specifically the of obviously $XX specialty give products. legacy the business, and of you for bit take fiscal we the you a guidance replacement the if maybe the at specifically

X% This the where was it's this the not was We really were the a numbers. lot a the with in good happy of was hard number products great extremely aftermarket this we in heck had year very of for the all any that's a was with and those for and of you growth as where will very, a a Ken of really developing our customer Because, I'm new special result got if customers. areas hitting and of in a one year, very organic I off deferral aftermarket prior very question. proud think team really boosted there it penetration working years year. very,

we just feel our can orders number with the most receive know business, ours. think right right so product I anticipate all of the, the very to loss of of quarter the we area. to it the Frankly certain it's to strength we it's of due good conservative shipment, guidance Again, never look said realize continued and to in position our you no to can we're as tell acceptance. recovery and feel to month a fourth up So, a overall was. flip fact we this very I weeks back fault good with just and before, in sort of anticipate level we're the good to it. feel flip how specialty year, more they I we we because be offering, in after a is it going at it in sales little we're the for ship difficult of had product unexpected a happens was really was the and about bit area. sales orders, year our to that's reviews this know very about on of visibility, last last we that we about didn't I've through able I types in so and been think bunched folks lot businesses what before area very don't just you again over a But, of the and our good customer going I great done where of way But all and that until, product that things not simply us have in them next for so the But, very I I that, just if project,

or Great, can the you what just if let with what the me thank for just for you. fiscal amortization XXXX I was amortization the And associated that the acquisition? finally Carlos, could associated in AAT fourth quarter know of adjustment guidance the intangibles and with implies

tell are ETG the is Typically should what I'm out four to see relative Well, X%. what Ken in I points amortization waiting to and about can margin XXXX be amortization which that we you is within fiscal on typically looking around Thursday. for NOI, maybe electronic runs XX-K

the about on the for to ETG. margin is add it NOI going So percent drag a

quarter. great excellent. Thank very you Okay, much

Thank you.

of Godfrey Your next the question George line with from comes CLK.

Thank very you on to very quarter. nice also congratulations would a I much. like

George. you, Thank

you at a would you today, perhaps so my trading and evaluation XX it's acquisition at to chart and where it a of higher EBITDA call is still you're the north they paying when now, acquisition are four and are of questions, stock if the one stock ago agreeable Two look at buy first look were, XX digits nice is, such chart years times high-single how at multiple trading EBITDA so five really or targets the like question XX and your to stock target? we I where

pay the is The multiples are slightly years say from in let's a Victor. think and ago. we're they George, different higher XX the bit HEICO is this are ago buying than we moved multiples or And years aggregate. five answer up acquisitions the have were I very

we a for I very price pay fair Although think businesses.

seller business speaking and behind are pay those their with a and what they looking that price, more been is the home generally of there for pay can generally for leaving multiple not the call businesses the but always not legacy issues to fair work. time concerned the occasionally ours are people and, should that that as with sensitive price but fair comparable we a squeezing people, a the don't those we're price are good who penny last of with people not always fair didn't equally that's the their are not difficulty we sellers, case, social argument who we and I out a pay this were so who didn't they believes be with unfair And concerned an for with price sale And a year, price their are and we but having reasonable difficulty, think for I a our price, we have acquisitions. paying concerned

are transitory. that in sheet a are know our that's not order We're jeopardize there in I looking, I to company, not We fine. reasonable and out be balance something to we world's prices who in the there number and of do private will people interested probably equity our are offer going in number the we there think some sellers, have but and other

engine everything that's product just I product the right? look from concentration $XX I million or if wide and the any understood. the support capacity within so area, at CapEx have microwave, do it line ETG region in you expenditure, looking Got think about electro-optical every the in one And segments single heard clarity isn't my cockpit, at, said that up on capital own area electrical build data, the of there is or to I

last full Carlos. of by morning. about some and spend taking its, part that planning relates again, think again it this we the under was think and that is now. broad-based year I amount George to legislators I as parcel are the a fair expensing Good Its

weighted. its means that any segment. it's one could It remained and broad-based is so, have particular equipment not And to they

So, little in and encourage if budget there guidance, look again is December numbers on box I that with year. we with the no at you the came the overlay of taking they end is at the end are that, to our we that from up no, there of have would wish out tend the you truly of higher year beginning back we of magic information our subs, list our the top we

any So, segment. particular but in over out, let's plays capital that of see no how allocation it

great and much, thank happy you Understood, very quarter holidays to you.

Thanks George, too. you

the Power. And Green your Dr. next Herbert with from of question comes line Wertheim

and Good Larry morning team.

are How Herbert. morning, Good you?

once again expectations you. thank you've Fine, of think our required Well exceeded our I all expectations, although high.

You've had an amazing year, it's been extraordinary.

done only know with you've and to to and our for I've you hundreds organizations. their original And grew us investors from time, who so other you my both HEICO men's family we contributions the daughters dollars allowed and shareholders not of many want for and to community. the our in job us for the are to millions thank for been boys' outstanding but with many you have you and of As make we

keep So, the the good We next work. to Happy forward look year. holidays. up

Herbert, I your want Yes. comments. very kind to you for much thank

You to investor. seeing institutions as at of that the done were and could an shareholder, so course, investing and a a and Florida. many there have so around be you and shareholder proceeds have as contributed happier happy of understood brilliant as your -- South the in value have a of mind we long-term beginning not having largest And then, taken well. scientist charitable the you And as you and I've a and said you always

good we we healthy So, touch. And happy for you of lot New wonderful you congratulate in wish Year. you a And done be people. a have very and will

Thanks.

this support And much is comments. kind and add Eric, my for and you also your the friendship just for thank Herbert, so and thanks over appreciation I And years. being grateful your

family recently. good said this you add some that your Herbert, congratulate in have Eric also let I had is to what and to Victor. I I news on -- Eric saw

done he have and much. you all ever for know since your Well, ever, of -- And shareholders have I smartest, Larry all in you of the I very deals. you in ever. school do dad for you our community you families as ever, was known thank you were high working for what since and hardest Certainly just doing one known, Miami. you thank have Well, our

Much Herbert. appreciated. Thanks

Solow question line next Larry Securities. of the from CJS comes with Your

Good guys. morning,

Larry. morning, Good

my been I positive answered, and questions few a have commentary. of all Just follow-ups, most the echo

quick I obviously, probably ever a phenomenal start more on reason could of year actually want -- qualitatively more in in a these color the there last. Eric, sounds in, a market that Just if -- more could you specifically, to XXXX any was you real it unlikely good that the mentioned, But, target year, guidance products compared you a you be your year, the like would of XXXX X% there was growth and development number. overall maybe that to to will any just for seem believe, to some have environment change and is the and products like maybe contributions macro of as have negative of incubated little as for this doesn't

are would say has in think we And I I other improve No. marketplace. our nothing than getting overall environment the I continue we the macro changed stronger. in our relationships, reputation to think

you and single the the to if our very, the -- rising. we is grow. extremely of eyes will that close everybody anticipate tide thing can needs put to business the effort -- very we under not in the don't our state hard. This think business. part is are come It's tomorrow every I will, I forth just So, and automatic. not again, it want size of of It's is And hard work. amount in

So, has really thing of growth of say first -- that that I The in fiscal would would strong. nothing add, has area. organic is only was extremely the I changed XXXX nothing course, the quarter

So, the tougher against quarter. first for up comps are we

fundamental So, doing, I strong But, be very of are no we change very, that. the think what about business. going, no in I feel, where should everybody we are mindful

in And historically area at higher little introductions, XXX are new maybe a product maybe think I a year XXX your of sort of number, above end it? the in have that sort to launching, of products targeted you we that

had optimize we about it. can that We I say continue target the But, are we feel new tell customers area. good to midpoint, anticipate very of and number again. you handle be can this year. around what our I development really would Probably a would year product to that we to I right that in strong very

acquisition side, there. in quick just ETG switching believe real gears all it's I on just then, on of AeroAntenna, the And the

its of not like getting It to $XX so or number, maybe there? like looks sort is I right it's And $XX what it your -- million, Just that gains, I $XX seems going don't it then, the only that, guidance exact like exact there. like is am of revenue contribute, imagine, numbers million into time, implies? looks to million know half

is don't understand quite I quite I question. Victor. This the understand. don't

business you You and it a if simple have obviously, the in to but is would grow organic, million million-ish bit mean and have that that just $XX AeroAntenna little -- that bit ETG growing maybe QX, of line I say a if worth, just quarter's of you it's in contributed about QX the you math, XX% maybe top a acquisition acquisitions $XX from I contributed and little half had already.

my math that is implies? right? the is what So, somewhat, guidance Or

a subsidiaries, that's the also business on breakout It's growing, Honestly we at don't the growing. acquisition. or especially Larry, it's this point, least at our numbers

a -- the depends at look how little forward point from it, you acquisition cetera. et it's So, of difficult what, to just measure it

it buy business a be tends when growing. you So is, typically it that business, the to

if did was of just XX%-ish, a if if $XX from half We in cut fiscal year, understand, that ETG of which that that's that, I the right? acquisition maybe that's that ETG in higher. in million in $XX essentially revenue half maybe end can sort the acquisition, numbers, half that grow grow a to math revenue, there And So, so a okay. Right. the round the using acquisition contribution somewhere right? Was in of I big one quarter was talk right? $XX imply No. so -- towards million million, of this XXXX, rate run would But, that's offline. -- little simple

Okay. Thanks. That's all.

Thank you, Larry. you. Thank

the line Ciarmoli of next Your SunTrust. from question Michael with comes

guys. my Hey, Nice for question. quarter. good morning, Thanks taking

specialty cleaning housekeeping Eric, in the orders that But, lot sort I of FSG, the year? growth up mean, coming to been of a here. appreciate the I the quarter. have and could got the of positive some X% receipt. the get guidance. from expect on we questions you've seems shipped that understand margins maybe is has back, potential But, thinking just sounds tracking. like business it little I the the aftermarket in implication those in a Just upside It I conservatism FSG upside. with like were the organic booked the again, some see where margins bit XX.X% of potential and sort about specialty should in next

Well, I we let will -- Carlos.

is is these that got this acquisitions. of Carlos. to going quite some The coming next Michael, we with see we've got from amortization on It And thing a year, in of more bit done. that

we anticipate expansion that And come going margin segment. strength governor your come if level will depending does of a that. on on back we the specialty To of get that's it so, our in point, that to strong, out be back

hope to We right. range budgets what quarterly we Again, is backlog, update subsidiaries, the given it of things You XXX% see our the are are better year. to kind earlier the as bit pitched based you in have we from do and XX upon XX.X we based expansion out. we will a to particularly of I little and where always have that be that falling upon now our

guidance reason you've to box, a us is progresses. for the conservative. known tends you if the And I our be as take over, back numbers year are the think to the of go like enough are in long that do as and we street that you that there we that telling information to field guys because that give provide then and out better the

projections, as ones. here your what But, right information So, numbers are and with you your standpoint those thinking just I you -- models can from are that gave I are pretty now, you. want wouldn't good we about our what sitting do you

the recent from quantify you post? the Can it. Got headwind amortization

yes. the I Can quantify amortization the post, headwind recent from

So, points. we going these are development have to

on for in Within going all just [ph]. X% OI to the the That's at the margin looking drag [As] probably amortization. are FSG, about be we on

Okay.

Got it.

last Victor, defense Okay. recovered? talked the then been Perfect. I And all that those have think That's you quarter, about just had helpful. orders slipped, that

Yes.

they looks very it they quarter quarter. think in in not like the I think. fourth strong, continuing were were very first They strong the

would say so. I So,

on XQ start know in XXXX. I the and quarter, some hitting you just about that and into talked to last they delayed were expected contracts were

that's picked all So, it been sounds like up?

Yes, absolutely. And are with happy them. we

about you last might some starting product checks. of c those to of Eric, just new but, developments, want specifics give Okay. a XXXs really to And come then, thinking some in here, the not one for

below replacement you success can with -- it PMA I rate of above expectations? on are kind platform or expectations, XXX, parts the you If new your getting a like is in align guess,

to talk Again, specific tell about we the you are consistent don't can in we general like regard to I platforms, that with platforms. with expectations. But, newer doing our

okay. Okay, a Very good. Thanks guys. lot

you. Thank

line from the next Your comes Capital. question Ducharme Sterling of Colin with

inflection going Thanks. margin just had of have in account wheel your higher consolidated XX% point HEICO of Hi. margin Electronic of consolidated the time, it's and given that view questions raising level. quarter. answered. Great structurally cash profitability Good HEICO one, And those Most kind support have you flow little your bit your higher Technologies the margins morning, accelerate, to credit group, growth disposal? I'm over are actually a that beginning flight free taking specifically been increasing in my to the cash wondering everybody. thinking free at now Happy But, margin, flow just recent then, the longer quick just is just an holidays. into of is the segments M&A now a fly approaching, absolute here term, increase FCF quantum capacity, that are

sure not I not the in truthfully, this is -- of you you question of I'm -- Can asking. sure were the define little I'm that question a Larry.

the Sure. Yes. free a and flow segment Simply part larger consolidated just margin of higher pie. cash put a ETG as becoming

and So, over is flow actually the in couple your growth cash of now I'm curious time a accelerate margin basis? years, next free consolidated beginning to on

accelerating in flight continue accelerate. The hope ETG and It we to be been to has going or know answer it is the support absolutely yes. more it will It is I is. group. don't that the if

We our either we segments to to XX:XX, diversification would so businesses, we others. have the XX:XX, want overwhelm that of said like in keep one don't XX:XX, we always expect our

So, There just interesting, to I. so call reasons managerial happened. on the bias because flight there going margin, present intentional this -- high ETG flight this very we time If margin that are that bigger idea do is the at support the are love shareholders support. margins and it is their no build than or are

call, margins. to us the are there high alliances On this any on industry want hand, players, margins. low They They people or us at X% want their hate have other if they margins.

as So, to in probably flight keeping not believe XX% from we or off get support, much a area push XX% margin because of don't we better our customers. it back are in the

come businesses So, are close and there that good to many XX%. in

better and it's group, So, in said Electronic -- with the in all Remember XX% compete in it's the that different get Technologies, the a sciences, products the of to we arcane IP. more the business in in we In and we are a Electronic Technologies, flight XX% maybe virtually that. tough some to results and areas develop. support margins we as Electronic own above we can little flight operate Technologies, some the there tougher, I of the it's truthfully that

intellectual But, So, we it. have property. support, own do there. we don't of build flight where to distribution In don't suit have we the most we on

because competition and the to and don't And have the bit which but is generate other facilities a and bring in some everything clients, our wonderful repair more overhaul are there that little and profitable of area. they us close margin and cash

-- So

your just this it. a And that's and just many be actually to begin seems margin portion be law to platform it's overall to higher cases, of interesting I roll-up and Larry. story of of larger appreciate helpful at begins genesis business. this question is in segment accelerating numbers that the The strengthening wave large color,

don't Technologies or of generating are we want see said, flow. I Out been, look for I strategy as I've perceive HEICO to managed this cash not That's I a business as in have HEICO at always why strong, a of very is I snowball business. be cash. HEICO vehicle an the has said HEICO, well X%. times And in many Electronic company. aerospace at presentations,

and all of industrial and companies, X%, you We X% are Some operating of And you not we our that. them -- on there. of management, -- go to want lots that. don't focused are don't we at know,

high what to in look company. margin we explore We receivables Other High the for don't can us in, amounts of intentionally permits in low huge our we take margin margins, they money assets non-productive who stuck is constantly So, invest receivables all guys have require inventories. inventory. us margin. the funds and operating to -- and money doesn't have and their

is us shoot not philosophy extra that anything to the how grow. basic to if big it's from manage apart And to going that's that money. that and do know of sets And get to only And cut permits and reload other how you it. companies, So, we at what margins that HEICO it we grow. margin are is

and buy company. not out margin going to are go We X%

X%, The we interested people team top the the Mendelson the and is not at in And other to a thing members growth shareholders are growth. important are line. makes ability you line the us our that only as bottom more to and cash share wealthy margin a and per company thing of which we The company. in know percentage X% interested the these the have line building partners family because in operating earnings our own bottom very flow I listening, and large is roll-out

flow. focus whole our cash is So,

grow the get and company, going the what philosophy. -- strong in it to when to So, and we talk really we you that. are we started basic that's -- than about the the if the philosophy is acquisition makes work really hopefully growing know margin with at And company that XX% more margin we want

and great Absolutely do I is appreciate over and the I flow that accelerating [indiscernible]. free cash that. the see fact, you And as time profile

for Eric, the that given financial has talk largest my Thank faced? characterize question competitor segment, number just can dynamics sponsor you. and PMA especially the at firm follow-up on pressures two change certain quick recently earned any about competitive final in all you your from by a as Just a is financial

to can was talk very HEICO for tell build a Colin. lot marketplace We're I I market. well we're reasons. going competitive not our or the are about doing in name in to by any got I appreciated competitors that in pipeline. things the and we've and don't very We that see vigorously change customers you in think customers by Unfortunately regard. Hi, continue and the of very to great we compete able much But, grow,

comes of the Seaport line Your Josh with Global. from Sullivan question next

to morning, guess the a quarter of question, the OEMs that at point? hear on good I larger more more entering Hi this markets to congratulations on your of here. OEMs nice aggressively maybe a kind to operating great aerospace activity just a and want don't you any I'm seeing in curious are year follow-up of last your aftermarket names. But name any thoughts obviously

do so continue, will to We a that really in work that with any always haven't that including seen opportunity we of is have for very I already been our there OEMs, OEMs. with certain HEICO number I think anticipate the change competitors OEMs regard, work aggressive

to strategy be I for impact there for as of our HEICO getting are and that you some products and what I to it's on in-house opportunity of that markets with some of strategy. - were our to their we're some the airframes the airframes the to an be I of is business. bring large So, their go formally try in there is into parallel to that talk for get to designed some want about outsized, think anticipate starting to

procurement is think I trying cost at I point. that would OE matter cash and reduce the their more this is the price of a say of to well historical more aftermarket of own

doing to and with of to work will OEMs doing HEICO and we customers. the said question, response a we that that in are opportunities benefit as offer that I continue I think to to So, offer that And our number your very successfully. earlier our

Okay, good to Thank hear. you.

Thank you.

Your line next Sheila question of Jefferies. comes from the Kahyaoglu with

thank congrats you question a guys, good year. my and Hi on for taking

Sheila. Thank you,

you relates you EBITDA your to in Just us how target the particular it very to just you do a and as tax debt remind I where M&A and environment that with deal? about to about the net go question valuations from reform Rob, going first want to back of space think that can

and EBIT as the to of Congress are in committee EBITDA. or excess currently expense Sheila, this our their interest the proposed any is Carlos. The limitations consents significantly both Senate by as

I a not know these which if I face more that that, want every as the go you the don't being will in That's so standpoint, is sellers, I'm hell impairing is because maybe is anything rate HEICO's impacts anytime that its in we you changing down quo. directly how if, XX%, individual at December, the that foresee we you over things in year, known. from macro for for maybe because, let's sense much, as mentioned we just that aspect impact perspective a one Larry level issue but My a in will is the as don't going status about and from it I it's wish answered year maybe do, healthy provide this range. lot tax not do XX%. of I know can be so of though Middle that sellers a tax very I be tax when is us then and could at our nice excited earlier, I detail HEICO, that federal I are to benefit to corporate to as that are And going And HEICO XX% reform than could rates don't they develops get America, on that a the whole a additional incentive tell are maybe if that, say can to drop XX%, fiscal the say reduction sellers. we

income, the and from leverage. just target the Carlos And

reflected any has account a know if speculation in I they still my this of about XX% that opinion, But income that taking did be strongly of days you our course talking is Sheila, up we on nor that or a would basis as XX% from After it's calculated tax it mention in set our not XX% go a HEICO and when deferred and one by is figure XX%. few can year which its XX%. will whatever and, bill but been tax will the taxable passed. of impact with, of We're reversal I believe will huge next the to the there pass number

it's item. I you not But through that's going believe, unless out flow directly probably going $XX equity the it have a, that's I to number its maybe don't and to somewhere number it I'm by don't say a balance Now believe our million say better non-cash the sheet, drop than know income it liability maybe But, drop of But, I won't and no statement, I they'll else. whatever it to know, are a people you goes should, the flow accounting does side through. goes take to of a going there.

income are you to So, XX% about $XX and if million $XX you of hasn't to $X.XX reducing $XX million this a shares talking are it million and goes million share by million, that $XX XX by on taxes been reflected.

investors XXX% at and sit how received. but two; And look because Street openly. I to EPS And run what lot trying not astounding that very I have in smart, one think just on And analyst, these are I cash am multiple company of that. I I as Number have much the income they most we because, everything as other HEICO's is, Wall I'm is they reported, at than net the going that if a don't net betting one that that's again I flow people they at Now look on. financial HEICO a sales, said it's two the be that reasons reason smarter are a guys people multiple. and to see look as multiple XXX%, people the be out cash figured financial it, sales at income

speak people, to to XXXX. see, I strong business to nothing I our see I very, speak and again So I people bankers, speak I very but a

to and know exogenous not they than I the shocked bid of XXXX shocked is not X% don't other happen. can't our But it's specifically if telling a assuming go companies kind HEICO more know us saw reserve that's what and if rise I those not, and of got XX% they people jumps we what collapse. but up thing events, mean federal But will banner whole now, year need XX%, too. I Now X/XX I are or some people I things I'd we the be for to And predict, conservative. know I for our be that's other HEICO, can't and know will are because events

So, about way in XXXX very, just very it optimistic the HEICO I for and period outcome am that's that the is.

understood. Sure

Carlos, do that target want commenting you leverage Sorry mind on you don't to exceed.

EBITDA, let you go I X.X. how before three pay The would six that. into to but don't it me I turns on will that the I is I we want six Senate, leverage knew or times laugh. I hang comment would target if of down. done out It's key me quickly there, it two in go not years of EBITDA to times EBITDA, Let The the finish and be go level

X.X was I that to ingredients have I all X margin, there want two don't if the stretch the times, more the have answer, for, to if the the I to get X.X and have it that and than really But would met it if know years, things that's six. have have that outlook everything do I so all do would sensational would look to don't multiple and we it down or a X would had within the helps. to don't it all to, flow, but we I And else. have would go cash the to acquisition could be it, want

question last just the for It's thank seeing the body aftermarket me, on maybe narrow platforms Eric then from a maybe are within you. and basis for body growth And year, versus what regional the helpful, wide X% you FSG platforms? on trends

those to We're is areas is we've of body the being wide doing continue, figuring very do And will perhaps that aircraft of regard a But as areas. sides, whether I well wide those the guess And narrow had another well to little built. some bit questions much, about to both there all and there regional new know us but end body the I well it and impact think in the bill is with regard can as talk strength be market I some be, all anticipate up tells going us wide market we're over body, that you all in to the very with to aftermarket that all body to issue market. involvement out. absorbed that has really on our aircraft always

you. Thank it. Got

you. Thank

Wertheim comes Green question Herbert your of Power. the And final with Dr. line from

of can be the Larry, of be I shareholders, I'm narrow there HEI many I with didn't the and disparity lot between there that's to question, spoke to the and its Thank bothered the sometime ask HEI.A you sure you. me from earlier, can is something shares shares the more to because what gap to or when be reasonable or is done not the being awful that XX% that all same, converted able it is value expressed? this

question. difficult very a it's Herb, Well

the shares outstanding they owners' won't you, don't so that than guys much won't it that does is where different is has studies had sell like banking shares, study that major sell like HEI. so have there sell from HEI.A applying the A are more trading as when and though And as and a than institutional not investment it stock, it us HEI.A. the have you don't trade many HEI.A We done the dry, shares, we why it to greater cold reason they HEI.A come even Herb, on conclusion HEI.A it. firms sells this The The shares guys HEI sells The almost trade is stock, become just forth. sell it. liquidity much and like

firms invested investment take the the the they of mean late you won't see us liquidity, a of list will own it's bluest advisors major, can look its the and XXs. the Yahoo told funds sell that or way the buy XX% I differential goes so and the morning question and is the greater below have the pay it morning, could to what liquidity. is these we so the one by I right chip sure calculate it the people the Google gets this people institutional and the have not blue again company the and some mutual of You just these this is and not, I'm but to sell other XX. they it, that it, and can since a funds on have XX And it owned below these And the about up is well sometimes take like the it that's, sometimes to for lot they gets XX. today, it's about one up

who you the problem well people XX%. would So generally ever that guess it's, say reverse said somewhat is know, fluctuates kind identical you and the we to XX% share, problem studied XX% everybody the, this; stock, to right. how fair, it not I that's the people we the we - said the only the of, a giving us, is and a well XX% I of same we've two. gets true, that just did, we're paid sell why say we a that if Similarly the we they two HEI own XXX, is shares paid mean are company guy other forth. have the him the wait merge only so The but the XX and an own merge of value why HEI.A dilutes It not giving have who HEI $XXX going if minute are always to is we thing they it's

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Herb. Thanks

Spingarn And we Rob a from Credit question have Suisse.

this little and the this is for no remember then margin the and a expectation Victor, group already owns this guys lines? the at you, is making longer are I've what was in given at trend back the you ask been you've it's I the guy wanted ask have question I year who off having I again if I this know a discussed, on for apologize but because discussed and and is I throughout a the and you to the unfortunately further Victor have commissary, I and and dig said call to in But outstanding implied stock. a water can and this clearly looking that on it ETG longest apologies you in want still putting ask into for margin it I call, here, I'm call for are I that, the a what touched from is and to your team you

this have XX% factoring operating to make an that we that the but this you very is mean And quarter do ahead that where but to places XX%, is is and acquisitions this you're I'll quarter. business are acquisition, exactly they to have into into And predict their we're not a don't margins, dilutive be it around out. XXXX we're But budgets. if a on while that fiscal flows. know that people from they a XXXX, with any good done difficult mix in that be It's into water that acquisitions question. of Rob, do the objective excellent stick completed this guidance is will if had get caffeine what happens the would another great and in margin I up lot be get information side, come great, way what good. can we circumstances based in obviously number. to may that, cautioned us it's do already Victor, unforeseen any expecting the say margin the us acquisitions Yes, placing our higher better on XX% and that we And to spending our let's that in been very better see to the guide not some there they to, I ourselves, of excellent companies historically would arise. definitely have bought a will there than its told great sensitive, a but mix can They given out as I a number. generally better, going by product but probably you an haven't I us had

you have markets in of a Now lot I various you ETG. have the niche that properties among know

some for you you the accelerating have see is the product where well. between aggressiveness question this the really you have for and So you competitors? reform you do price as price and a maybe tax extent sensitive and competition Eric To that lines your

Well, view. There is have that that really I generally ways reform. on take and result I really to be do don't Victor. benefit is know our tell the you our cost of don't, this everything take the is tax But, much our I'll let of almost not of to price get for going competition a answer cost that this somewhere, take some there an the competition will out form I customers to businesses do. on his we Eric out. in increases, of is we impact fact growth that

point. So and that we this know we do going try and And to? we change if want or just their excellent to rely Eric industry we're to in that on thinking really have thinking that's that everything that you wise, least about I tax to going at competitors our recognize don't at this

And change. customers it's tax I impact code. to regard see increasing seen we, expenditures new yet don't But maybe with new the I to regard advantage again at looking with capital some our the we're customers But of really our we any place. with a any policies too taking haven't little think would see agree, that in our I will bit of early, I

right. you. all Thank Okay,

you. Thank

you. Thank

questions. further And there are no

as questions comments forward be would happy, February. sometime interest on Okay. And them should want that season answer to look speaking other fiscal this us available thank in for Well, I for we take call interesting has you in mid-to-late who we you Thank healthy and our call. their Year. reach questions. XXXX We to wonderful again at them first wish to which New holiday very offices. or a everybody XXXX And their been thank you to have, quarter may know, you for remain HEICO;

you. our for ends this call today. will And we Thank So soon. speak

Ladies does you conclude full HEICO's conference the today's joining Fiscal year XXXX and and gentlemen, for thank Corporation fourth call. call. quarter earnings conference This

disconnect. now may You