HEICO (HEI) 16 Dec 212021 Q4 Earnings call transcript

Welcome to the HEICO Corporation Fourth Quarter and Full Year Fiscal 2021 Financial Results Call. My name is Renz, and I'll be your operator for today's call. Certain statements in today's call will constitute forward-looking statements, which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements as a result of factors, including: the severity, magnitude and duration of the COV19 pandemic, HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by the COVID-19 pandemic and its aftermath; airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements, which could cause an increase of our cost to complete contracts, governmental and regulatory demands, export policies and restrictions; reductions in defense, space or homeland security spending by U.S. and our foreign customers or competition from existing and new competitors, which could reduce our sales our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; our ability to make acquisitions and achieve operating synergies from acquired businesses; customer credit risk, interest, foreign currency exchange and income tax rates; economic conditions, including the effects of inflation within and outside of the aviation, defense space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues; and defense spending or budget cuts, which could reduce our defense-related revenue. Form call the to including Securities limited filings this HEICO's all but to and to with XX-Q filings and on listening are review encouraged of not Form Parties X-K. Form XX-K, Exchange Commission, or extent obligation as statement, law. required of information, by update result otherwise, or any future forward-looking applicable We undertake events publicly except revise no new to whether a to the

turn Officer. the Chairman As call to we now, begin HEICO's Executive the Laurans and I Chief call Mendelson, over

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

reviewing I'd year. take thank moment to another talented like of for results detail, HEICO's Before a all outstanding team to members in operating delivering

for by excellence continued confidence that continue outstanding customer Your exceeding and translated of the that next fiscal am exceptional all expectations the have of HEICO's will into on another driven into and our that year results operational be I focus shareholders. team will for members. has encouraged success and I year respect

in XX%, Technologies. 'XX Flight fourth quarter improved Electronic compared fiscal Consolidated 'XX. quarter improved operating we pleased much of are the our fourth and as Now quarterly net fiscal income of XX% summarizing and quarter results, the both within to highlights and and to sales operating full fiscal respectively, fourth the year of results report Support

and of impact impact the principally net Group as the recovery principally in fifth with demand our Flight products marks sales 'XX prior to the fourth This the for as of the X% net to of the acquisitions. compared quarterly the of quarter and quarter increases These increases Flight air reported majority profitable consecutive our of in reflect sales sequential year. 'XX. quarterly growth income, increased and ETG income operating the some quarterly products. 'XX Support These reflect substantial The resulting acquisitions aerospace quarter commercial XX%, global in net reported respectively, sales, consolidated compared Group. as for as 'XX operating income fiscal travel and our and from majority operating XX% results respectively, fiscal of sales X% net organic commercial compared fourth Our of XXX% increases favorable sales from and of services, fiscal in well fiscal from performance the principally 'XX. reflects growth our at 'XX Support record and growth and organic strong net and

Our October compared total XX.X% XX, as improved as of that October equity 'XX, and 'XX. to to to of XX, debt shareholders' XX.X%

equivalents, of as 'XX, cash million, equity as XX, and X.X% debt, of 'XX. shareholders' compared total 'XX, $XXX.X down a and to low XX, from to and that October debt improved less of net is was as Our very cash XX.X% XX, October which October ratio of

from of Our XX, that X.XXx 'XX. to of October 'XX, as X.XXx net XX, and ratio down October debt-to-EBITDA as improved was

strong, quarter XX, Passive acquired and flexibility our to integrated manufactures totaling and discuss Labs, pin in September expect we about this the million XX Cash part closing. various Group, provided frequency months and of both state-of-the-art acquired X% was earnings flow $XXX.X sizes within activities and 'XX accelerate acquisition the I'd found to following flow per first recent fourth have and we provided be of attenuators, pursue financial to of an acquisitions from in assemblies, to we and fiscal we strength to switching fiscal successfully acquisitions, radio applications. million 'XX. XX, maximize microwave the other XX.X% In complex stock acquisition fiscal completed RH the to share ETG to specializing subsystem and until activity. million and switches, designs which by limiters, microwave defense Wave high-quality we all of of pin electronic is accretive to integrated operating and group, a operating plan harsh our 'XX, remaining shareholder the activities 'XX, Wave, owned in and assemblies, to we continues to this debt components six broad subassemblies no closing. 'XX. fiscal growth returns. and accretive particularly integrated Lab's in range and of components to acquisition utilize per XX part following defense is in stock demanding and of like used ETG manufacturer the fiscal of space. up share certain outstanding earnings management the aggressively expect in maturities be interest months team. including Cash pin be RH We environments, During now $XXX within frequency 'XX. XX.X% October our applications, significant in that and operating assemblies, first of members RH a Passive The by of radio of and In designer which and $XXX.X diode increased by remained is

raising XX certainty months score very pipeline with Co-President substantial the we're we remaining for HEICO to As and tell machining I equity management Flight companies on our discuss will will to results the XX% the for 'XX, diligence. other we will optimistic of members this be which interest Mendelson, accretive Flight due parts engineering holdco the we earnings in be Support closing. aerospace I'd We continued tight Group. acquisitions certain additional and defense third of Holding of Becton the predict are are machining, on, XX% interest owned outlook we Later and be Becton's and expect part all and companies can aerospace, by on Support and introduce and to services to industrial of At Eric share and welding moment, this when closed President at the applications. of like acquisitions, Group Ridge's of of provides defense They comment in August he cannot these These applications. and large-sized discussed of mission-critical that during strong, and which, earnings Becton owns the fabricating The time, Ridge of following company. per acquisitions. teleconference, for you, acquired Group, they because Ridge Support within first I HEICO's tolerance the of and is in quarter performed Flight teams.

'XX a aerospace is is and global from $XX.X demand from of resulting increased principally fiscal the attributable the fiscal across third Support demand lower decline impact. a in our you. lower year million commercial as net favorable sales The fourth increase The of for sales margin. quarter fiscal financial XXXX, of expense. partially the in a operating decrease the 'XX of attributable fourth fourth for our Flight well our retirement by profitable in aircraft to of 'XX, impact 'XX and our in up Group's of 'XX Thank 'XX. Group's impact products of quarter protection 'XX. principally $XXX.X The for up The by of inventory principally from The platforms engine $XXX.X from and $XXX.X Flight fiscal pandemic's Support in $XX.X the improved due net announced due Support from aerospace of Flight in our XX% million organic acquisitions, fiscal profit 'XX million $XXX.X fourth organic quarter margin increase the mentioned obsolescence profit commercial net to from to of pandemic. as reflects obsolescence expense air to fiscal sales to and income customers 'XX. and XX% fiscal inventory and an year the in and operating debt increase the offset mix increased fourth higher from increase the 'XX, products types The services increased growth sales increased 'XX in $XXX.X million in of growth recognized year lines. reflects from the the fiscal bad fiscal 'XX. in income our fiscal the across fiscal following the The The fourth quarters $XXX.X 'XX commercial commercial previously Flight operating filing increased million higher Group fiscal to Group's fiscal quarter mainly year certain 'XX, in The net Group's million fourth gross majority sales, gross of Flight product income all The quarter expense our net reflects in Support sales certain fiscal million travel the to aviation up acquisitions. more lines income profitable fiscal in year product to product million principally reflects in Support commercial growth operating quarter XXX% principally 'XX aerospace the all in improved net up bankruptcy 'XX. fiscal customers in X% year The

The increase offset inventory As expense. mentioned quarter decrease compensation year fourth impact, in an by fiscal lower inventory in expense. margin profit 'XX, previously expense the of quarter operating higher by Flight bad from and a expense Support partially the improved gross higher The XX.X% The margin increase performance-based result expense, mentioned of quarter and gross margin, year operating in fourth year fiscal 'XX debt fiscal to 'XX the net in pandemic mentioned Flight improved obsolescence sales, Group's principally obsolescence performance-based from in financial improved compensation XX.X% inventory 'XX. Support up in lower in previously Group's of margin up fourth margin expense. in 'XX of the the the The reflects previously profit 'XX. the principally operating partially margin operating improved XX.X% XX.X% and fiscal fiscal obsolescence to reflects fiscal offset higher

Mendelson, of HEICO President and Technologies would like to Technologies Now, to Electronic discuss the Group. Victor Electronic results I HEICO's introduce of Group, of the Co-President

Technologies income of from 'XX in fiscal sales increase lower to of The Technologies Electronic income demand sales operating Group's fiscal products and by lower profit $XXX.X electronic, increased from a $XXX.X fiscal The million 'XX, mainly million to in operating partially a a in partially the increased Electronic principally medical by quarter margin increased compared to 'XX, up the a sales principally 'XX thank in sales the of increased 'XX. reflects up the a XX.X% million the operating of decreased our $XXX.X a fourth the The fiscal net quarter fourth Group's acquisitions net X%. 'XX 'XX. was Electronic sales of well 'XX, offset compared lower sales, $XX.X increased as gross over in products. profit aerospace in in fourth XX% partially margin resulted offset the of turn in full products, Technologies quarter our in Group's of operating X% principally in offset quarter of million and from operating gross Technologies as 'XX. reflects profit Electronic $XXX 'XX by fiscal was sales in as growth the fourth organic Electronic fourth principally demand mentioned the strong offset reflects growth, our other I'll lower reflects electronic the The electronic previously offset quarter fiscal record fiscal lower products quarter The $XX.X by fourth up million you. from products and increase by sales the medical increase 'XX Electronic in commercial previously was as operating commercial XX.X% mentioned margin up performance-based increase fiscal aerospace of year impact specialized 'XX in organic products, fiscal sales. quarter by $XXX growth year defense in 'XX X% principally specialized 'XX The million Group's Mendelson. X% in subsidiaries. mentioned record offset full 'XX. specialized of electronic fiscal the very 'XX record fiscal increase decrease fourth principally partially net 'XX. some a fourth principally reflects net net for fiscal call net fiscal other operating in and our compensation the from growth acquisitions. specialized from income XX.X% year previously margin, fiscal fiscal the defense growth, The net The to Technologies The commercial sales an in net net Technologies a of fourth The of sales of gross mostly increased net profit Right, to 'XX, as expense. decreased and XX.X% organic fiscal from driven quarter growth well partially in reflects by aerospace fiscal products net Group's margin, the in Group's as and operating million X% The other organic mentioned $XXX.X well space previously quarter record defense sales. the products, decrease year 'XX higher fiscal 'XX The in net as million to for Larry margin. other lower fiscal as The 'XX The from partially 'XX. in income to fiscal medical back in gross mainly margin increase

Thank Victor. you,

million in tax to operating compared share. quarter $XX.X was and That was operating per 'XX, reflects on 'XX. from operating incremental income 'XX, which and fiscal Research and fiscal up previously million $XX.X share was in from sales $X.XX per sales to and Moving totaled in fourth higher 'XX. decrease the per and amortization income by fourth $X.XX in segments. $XX.X nicely fiscal R&D acquisitions. the higher of million from 'XX, development fourth 'XX, increase Consolidated Support, fiscal share slightly and net slightly that in both the quarter $X.XX $XX totaled quarter fiscal of fourth quarter of The up 'XX of in or fiscal fiscal in of and expense, reflects in that fourth of or earnings diluted slightly increase up and $XX.X of X.X% in expense. The 'XX increased the up at net or again, expense 'XX principally net quarter Consolidated $XX.X quarter expense and fiscal fiscal and 'XX. in of fourth million mentioned fiscal The of Flight 'XX. to the partially from in fourth increase 'XX. in fiscal expense fiscal was the million X.X% up was 'XX ETG the XX% impact principally X.X% sales in fourth 'XX, previously reflects and interest increased $XX.X was $XX.X lower Depreciation increased offset of in of X.X% or diluted income fiscal fiscal the $X.XX that to fiscal income income million that million 'XX, sales from to net of in from in net mentioned quarter fiscal principally fiscal 'XX quarter 'XX. net our million

lower are continuing of in product case, Flight increase fiscal SG&A SG&A Group. well been of The 'XX bad fourth efforts and in expense in partially our million fiscal selling principally to impact Expense development fourth performance-based acquisitions, Support million compared higher traditionally 'XX. other as was at fiscal that $XX.X the consolidated offset Technologies expense. the by SG&A higher quarter new and the fiscal fourth of As both quarter the quarter $XX.X 'XX as from 'XX the expenses, ongoing compensation, has reflects expenses higher 'XX, and the significant Electronic in debt

again, lower quarter Interest net mentioned as percentage compensation 'XX. expense revolving reflects $X.X the in The in average expense, increase expense our under of principally well facility. principally the quarter SG&A weighted was not of higher expense decrease the 'XX was weighted in in was expense was to sales $X.X increase decreased that in quarter quarter outstanding and a filed to as fourth expenses bad year and of fiscal higher expense balance lower percentage offset a The and fourth our under 'XX, million a of expense. outstanding 'XX Company of that performance-based by principally that bad in debt fiscal acquisitions, was slightly SG&A fiscal reflects 'XX as fiscal consolidated a down offset due average fiscal expense partially million in previously revolving fiscal the debt XX.X% decreased 'XX borrowings of That $X as in result $XX.X certain weighted 'XX, Other impact to compared our fourth well fourth credit recognized interest difficulties balance expense in the million pandemic's fiscal XX.X% decrease 'XX in 'XX performance-based collection expenses. compensation in That in from debt from and 'XX. $XXX.X bad up were significant. customers fiscal on in to potential reduction in from 'XX, the a 'XX $XXX.X of That the The to was expense 'XX. from facility. commercial fiscal Again, 'XX, year million the consolidated down fiscal million income consolidated a 'XX, impact fourth fiscal Our that aviation fiscal in was 'XX. credit XX% 'XX. by SG&A and and quarter those as as higher SG&A financial net consolidated of airlines. partially fiscal in SG&A million percentage borrowings 'XX. of the fiscal a to XX.X% protection to fiscal fiscal Interest sales from sales during fourth Consolidated net the as lower rate was compared principally lower average in of quarter of bankruptcy fiscal due due

comments taxes. income to Moving about on

in in to was 'XX. rate XX.X% as X.X% fiscal 'XX effective compared fiscal Our

effective policies tax the related to recognized for Furthermore, teleconferences, increase 'XX discrete benefit in in reflects surrender the the first of in in higher insurance compared unrealized the the larger of And rate. majority discussed life values 'XX. quarter from fiscal in cash exercises stock leadership the our HEICO a 'XX impact favorable previously tax accounted tax tax-exempt to prior HEICO plan. As option effective gains of a quarterly that rate Corporation fiscal compensation of

plan. the certain in fiscal fiscal interest 'XX, 'XX result in of acquisitions and as as of results to interests Support 'XX allocations the higher fiscal reflects a net the of the Our subsidiaries related an in income effective favorable fourth fiscal Flight was non-controlling of in $XX.X increase Group the 'XX. increase again, fiscal compensation interest the million quarter and down to quarter capture to non-controlling leadership principally That impact non-controlling and fourth of in non-controlling certain 'XX, values in operating operating quarter increase in to 'XX, income compared of rate million of to Corporation was was attributable in ETG, Income attributable fiscal reflects an life interest That certain 'XX, million are results policies, $X.X compared insurance Net principally net attributable 'XX. million of XX.X% well to held. in the held. of under which quarter and the non-controlling $XX.X of The fiscal interests fiscal in of fiscal Support interest in fourth as of gain in increase fourth subsidiaries the higher in from reflects in the that attributable to tax income Flight quarter net XX.X% income are 'XX. 'XX, tax-exempt principally unrealized $X.X decrease the of non-controlling and non-controlling which HEICO to fourth interest

to tax be the combined of non-controlling interest 'XX, XX% For and income fiscal percentage as year anticipate XX%. a approximately rate full net to a we

on cash Moving balance our and sheet flow. to

by was mentioned, from activities strong, X% fiscal 'XX increased and by in previously at up both 'XX. 'XX, that we cash $XXX.X operating operating in flow fiscal As to flow fourth provided 'XX. in remain well $XXX as $XXX.X million activities the provided as fiscal million million of quarter Cash

October XX current XX, days ratio, X.X% X.X% days to by October assets DSOs was 'XX capital XX compared working compared in as Our October to of liabilities, of as receivables XX, October to 'XX 'XX. 'XX. of improved divided XX, current XX,

customers net closely No more to continue to We October order credit monitor ended was XX, turnover our represented and than sales, rate customer XX% exposure. in limit the XXX XX, fiscal for 'XX, one collection our receivable five and net well sales XX% year days Inventory of as outlook. consolidated 'XX of and approximately accounted in for as 'XX XX% October efforts 'XX. The respectively.

recovered look at as adversely and markets. is ahead future international cautiously while We COVID-XX uncertain. fiscal the we As boosters, We recovery recovery ongoing correct, same likely domestic remain rollouts, confident particularly slightly markets we moment their sales certain continue, travel commercial influence industry year. including will we same tech this benefit markets, positively less and potential and thing of were timing though to continue the the proven so expect thing of as worldwide in air domestic we serve. optimistic the markets increase, and Well basically year, we're last commercial perhaps the to will continue to HEICO. are aerospace And markets. predicting this very in we that the the vaccine the extent said 'XX, air commercial travel to travel to even International have pandemic well not

position balance during for like by restrictions difficult thanking have as to the program learn, key market all fiscal shutdowns, acquisition research all times. for our factors be continued the strong team travel share time. remarks these commitment path impact pandemic's and challenging professionally and we our and support responsible continued my which to end government HEICO personally HEICO earnings 'XX including on members execute to vaccination it's would everything activities, I and such would in to degree not and sheet net to variants, government new gains. again we development, sales their at and Also extremely can feel of ongoing therefore, this liquidity new under As sun, provide and predict high in invest us effect, our new it enable our guidance But and conservative see markets. rates, policies, successful to

Collectively, Our to the executive your ahead and 'XX. like safety extent all to we the I'd floor team continues and look in fiscal we success prepared we've open great success. and for opportunities believe had to be the professional in focused 'XX on questions. remarks, of your our forward That's

Instructions] We the first question with [Operator Alembic. have our of line from Pete Skibitski

is now line Your open.

wanted to chain about I Guys, ask supply issues.

the seem to of like some things like sourcing the issues of You impact? regard that your having able be at case some are with if any avoiding have Are peers labor. of issues worst you to that sourcing you seeing all? semiconductors so, Or and to even mitigate how guys kind been

that, Thanks speaking. to for Eric to we've able regard question. handle it. it's your been Pete, With

I the entrepreneurial done the that. these quarter see got figure approach to businesses, the businesses, done. numbers, from they've it's can think running of you to fourth within business we've people all And decentralized it model to that their responsibility where running functions HEICO's how out get

the Electronic Technologies going would optimistic we had earnings to I had the of and Group. are overall, update on that We've becoming manage And be bigger in in would numbers in and areas, up. about Now, have Victor road. seen go obviously, can newspaper. sales the We've we're the have we're that some it's there a dealing -- various with. But been And bumps frankly, all the we the able but this. prices seen it. shortages better even been We But just challenge. read not be will to definitely then think

about Yes. situation, it's us Overall, to with in you we've shipping customers. limited very the been as and prior out manageable for talked our delays calls, know,

And customers it. so, to for our I'm responded and were this very have proud of prepared how

more seeing others. to are it's no while And some subsidiaries than impact minimal pronounced

out across really Companies calls, a these with on our on which benefit where sufficient of as shortage business. this to inventory But I it within heard decide we management, the in varies maybe to you've that's to -- we our say is and believer decide before just-in-time to companies pronounced our as is really, we would deal subsidiaries need the have out, big we're with we're more what Eric that entered it. decentralized do call a becomes they 'XX. project, as lot expect well. of found pointed into ordering worked a not generally let generally model, HEICO, So a ahead, it stock, little and ways and what get have we very

that able seeing been we've components the And that, those natural And companies yes. price subsidiaries. around But material. as on Some been to just comment, on pretty the of pretty design because able our replacement lead overall, with I'll you to the make vary well. the times components a those have follow-on by we've well. newspapers, manage course, read and your your well, like where to to you of is, are in else, increases is think well. answer We're everybody managed I too,

fairly are low. those increases price Sometimes

generally They're their But pricing. they're depending their customers Sometimes chains, the that. speaking, own with it doing seeing this our and product across subsidiary. understand in they're supply much on more, the and again, it

that. they've course, we'll to So, and will have And that do I the ahead. expect continue over prices, where accepted we've adjusted continue that, to year of

very is us for offering offer. Of keep important great it value proposition this course, aside, we that an to as

as for what customers those do to compensated not margins continue to we our advantage so we're well And cost that it. to expect of making as taking We're excellent doing increases. we our our offer increases be sustain value, is for sure an but on

to Pete, just is this And Eric also, again. close,

our did proper and, our like companies support in because inventory. I outstanding today. rare and big invest to And to a and HEICO acceptable think very, lean results them unlike and And take competitors that this inventory would XXXX, many reserve a in customers team special reserve We've very able their is buy so have having other industry, not inventory inventories for inventory call, specifically while happen. number got dedication think effort the turns. members HEICO, call on afraid want and I I many in out by making of onetime stuff. say, are we did. We the industry to in And other very right our I we in peers we're not the

event extraordinarily they plenty work And one a and HEICO's that to or industry, there years, on look all charge. if you right people sorts stuff. XXX a make And of or XX-year taken of have COVID things crisis are XX onetime all at it the like take Our happen. this over the February, we you history never sure look companies the they charges who back of big buy if hard across financial or such last sorts blame

handle inventory within we we We obsolescence, normal have have -- yes, our results. that and do

again, on very do emotional right really FICO. this onetime seems be I about making we people charges, parts details, and the the really, the a and of the these got standard job focusing outside get in by industry to our phenomenal on big we've whereas take don't it sure So passionate because shelf,

I yet black That's impact think. feedback guys. kind Yes. could for last Is demand? helpful, any of one you Or Eric. me. sense really after all? Omicron a give at almost This closed. it box right it's about Maybe kind any recent, very quarter more varies Maybe if gotten for now, how impact one just your near-term one so seems us that you've from quick a of customers the having really Can

I love get would to feedback. your So

And great heads quarterly did a our an what's not going did. did sure impact. burning -- of with my week. with I sales that. see know as last people It's question Yes. people we a reviews to last question. want week, on I I'm it's

this a to don't going you to I some industry out be that have to way. think genius the really in impact is However, figure

There's very prepared of it -- I still of we're markets a growth for it. will, think lot all optimistic. are and think not because very, that reasonable it's to our potential have assume I recovered. But we things

very have to the a and So still in markets, recovery. particular, and America to we in see big Europe in potential South in lesser international Asia, extent, a

focusing will, We'll as shoots structure So us. got this. no as usual. just to our But of going ready. with details are happens going really to structure hold there's is But disappear soon, is this will be severity mean trendiness to we of going the people think and as it. of, really we're HEICO due question reason on be to what that this going capital industry. on plenty handle that if we we've to over the days right just well I the the and coming of back the I that resilient. And think And through ahead to that and think anytime get and got have to Omicron we're there's virus again, weeks And is resilient, the customer, focusing we'll HEICO's you really to business no and variant. fine, that green strong very be just see the

going not hold us it's So to back.

next line with comes the from of Baird. Our Peter Arment question

open. Your now is line

kind XXs. holidays Do trend should maybe just really and the XXs? should both talk incremental at think to low we could mid-XXs both everyone. look back I they low I percentage-wise, bit Carlos if you, Or any about Victor thinking takes happy good we in think the Do -- ETG segments? if about? Carlos, is rate guess we what the a I of you -- you with we the FSG, of little expect wanted year Larry, I start normalization but puts the in for to about margins. kind just finished and a know how be

'XX think performed. segments pleasantly I I the surprised was, with that was Well, as how far as

of bumps path up more the a percentage not And approach glide about FSG's FSG levels. think XX%. talked is that's that we've expected the to revenues. operating margin As from leverage, That's a we We're little I us what OI back levels, We're on their and Pre-pandemic of the to to. has ought path. segment in the history in forward, that you expecting huge pre-pandemic on go expecting glide past, power heading we told eke point as see to target. improvements the that what has cost And more growth if margin you sales. then base we're our out and back in would, along you their incremental

This or we direction less the the is that's mix sensitive, margin opinion, tickled and and fourth more. posted bounce posted acquisition-sensitive. performance. quarter with ETG with it's is and very our segment, So think XX% heading I'm could margins, to can have It But sensitive FSG. that year, easily very a we're in mix my around. best we I the

if XX% I to within certainty XX% you really with that that of such it's time, to long it hard it margin stay I vacillate predict annual be. So things on would degree to as an been could tell for basis, it's to acquisitions. great and that a where expect it could be could due

very if that us, the happy margin. dilutive to bought overall you'd investor, we assume a segment an example, For I operating a but with would be with as XX% be margin. company

the that's indifferent as it. we're questions would and the but up. So XX% happen. that, ton We margin, And pull can As margin, to by the cash, buy be we're way, get about still right? over it long we alternatives it could could a of we on how approaching

is help? margin It's I return cash ETG. of segment as believe continue. that The margin what holds in in the it the for I at that low future that believe that EBITDA Does is So principally the fantastic. look segment. EBITA We and a will XXs,

That's I as helpful. X/X top handful Yes, I just of follow-up, talk a your that. helpful. what sales. I about X/X that of Maybe quick Eric. of maybe at larger of know FSG, could think just out seeing very the kind your then maybe any customers you're of or your, you least represent customers, appreciate And

share? what you're to So, maybe you opportunities continue for seeing grow and the guys there to

seen last more customers. think fact, our I doing top Yes, of our customers. through a of folks well as be week. extraordinarily HEICO. so committed a our to pandemic the we're met They've with with I all well Actually, matter question, than to with great And ever doing and we're extremely

our We new We our maintained think rates. I maintained supported development product our them development. standard we've workforce. We well. maintained extraordinarily

them So, adjacency product sorts new with and we're all of satisfying products.

So they're extremely supportive of us.

the I feel know, I you that's them don't everybody. please growing like anything So share and don't with if were that we good. I know that to else you'd with sort very for. color looking think market I of know And are know. let me

The we Please with Larry one, line ahead. of CJS the next Thank you. Securities. Solow have go

traffic, sort there, basis. passenger a it of couple as wins consistent you recover cross a look does continues fairly to Obviously, mentioned, Just follow-ups. macro like some the on still but of

gauge guys bit you seems ahead of to of recovery within like pace little trying HEICO, it that. the a Just are obviously, certainly

but your levels, recovery seems ahead a the to You're bit XXXX of still behind be little pre-pandemic, general market.

So just trying market your seeing share and to expectations on customers your the gauge gains you're PMA side. particularly going from forward, and what

because there. are optimistic our of there's tell that in out us They're yet. extraordinarily years also great encouraging the extremely are went continue In met do over the doing areas to going week. more share this, We market and some detail, plenty see I question, things are they Larry. And recovery you great future XX I've We a really bullish. can those and do recovered that of And are develop bullish opportunity in seen There pumped gains. in A never bullish. folks we're more produce to to I XXXX. Yes. areas last customers about and than we're up haven't group to of more. see with more

buy no best the the future service competitive market is outlook you us. why with through people cap. logical is a a customer have mean reason we're from we've more So $XX very, it's I -- there I company when And would the from mean, very I crisis most got good. like we billion shouldn't go prices. this, and say, an

a not little startup. you're dealing with So

who stand and right the can put go on people that ahead develop You're dealing products and shelf product. somebody behind and inventory the and with invest pay

bullish is are with the -- very OEM So right that the our that, with wind exposed for the frankly, I that's going And back bullish to about very I'm the future. to cycle. more HEICO specifically That's I the that now. is would too think, build anticipate continue. aftermarket with businesses

seen much for those areas. that have the future We great in and not provides because those recovery optimism recovered. not a have frankly, markets And potential also as

XXXX. is If until the course, the XXXX, the recover new-build side year new-build production, narrow-body you back market areas. peak, to the think, look until on an peaked maybe say, wide-body on in and I of wide-body XXXX expected pick And

plenty got we've in markets think upside of I well. those So, as

exposed that have extraordinarily hard worked have our aftermarket OEM seen all the ones the been the more are more people have have ones exposed success not of Our that seen. businesses. across And that

know and see debt, to position I working customer road, they're of levels advantage coming take HEICO there. no in but the our at hang pumped that strong this. and with a I very good all and basically hard. we And up. of sales They course, down of levels service it's So in They're relationships think got to and customer extremely strong we're

mic the I sort are expect just, points getting skewed QX, ramp sort of slow bit it only in is the see you got out because obviously, Eric, But the most you're on about the the know Right. know I you Or season, peak term, How and guidance. Just that seasonality you need your -- we of in that the this whatnot? air the slowdown quarter? Do little a as spending while of and seasonal overall usually getting man. Do real giving down? near get it's there? not

-- be my the that's answer to is truth is I'm to I not it's to don't And But fine. that going trying traditional question. the sense not you'll Omicron know. Yes, it's yes, see help a going but course, mean of good And really isn't things. it, seasonality. I

So based instead, it. done and that see be the in regard. for my guess not into so guess XX based standard truly is quarter, this see that But sales a seasonality and but the yes, having through I years, is that should you many would you'll think on days it on just

quarters, you maybe lot it one quick, been defense of then of has sort last really been with Victor, I flattish think strong. couple Is level coming sounds guidance, the know trends? a and electronics of sort but medical given will similar and growth a kind and 'XX you. piece, out really sort we this your and just from of just shape which has industrial quarter, where like of Got space least high the other at the of that And from

and comments for subsidiaries. continue. that Larry, markets the I Yes. mentioned that -- electronic, from on specialized or strong expect and other 'XX I calls, you recall round to we us, in received that expected that high-end based a were that budgets to would our last may And of into the so we've continue electronic couple the our I'd

after flattening say the and there. I've in space turned about see a defense, that, the would also that maybe to term. flatten in to And down think at early trend little little had a expect that number of for as a of And least is out, sure. kind probably commercial more to of I of we In we've But expected lot would I talked that I strength continue bit. near it's trend a terms calls, say

next one, of line Morgan Stanley. we Kristine have Liwag with The the

open. now is line Your

the you at guess more kind that pipeline, M&A you're long? I see looking uncertain we has of opportunities seeing Omicron this affected the opportunities, seeing? or period as opportunities Are less for

Omicron the don't has think this all. answer is, So affected at I

have very strong a pipeline. We

doing of strong diligence As matter because a to it's almost I in too due are fact, constantly. would have wrapped up say we

in are We have the of a that number transactions pipeline.

guarantee there are predict looking know, it. HEICO's them think pricing close. ones be within fact And would going well accretive out we to we that but we But if close, at expect we normal if them will first the to know are opportunities the of forth plenty it's the they most year past so all you in can't there. by I and of are and I close. As mean probably we go we experience, historically, can't if

of So situation. think change seen we've because I don't any this

any for Great. potentially then could And the you, months. have maybe on a that of Does question you've we've companies that past their suppliers? more pool and this pay you're space, market speak many new for space now And few capital back Victor, got the seeing? customers successfully addressable increase to raised you in leased Victor. especially trends seen can that also,

dealing the businesses. And a question. that of companies. it very production potential profitably The sense in We these and we it of it is able to that's, a some to for that increase in key, to do good makes rate with does challenge. it's space, course, our is market, always our are do Kristine, think and be

start-up the your that products, to expect in And And overall, hopefully, terms some to in I the particular. would this would end say, businesses point, higher more us of market of addressing the more trends so parts the of question see market. of to just at in is some then these of I We're going newer not smaller on lower opportunity down really end capture gives our sales. on trends, interested

line the have of Robert Research. Stallard Please we one, Vertical next with The go ahead.

was could Maybe any than share situation. others? you're where And more you particular the there I aircraft share was -- success go back areas wondering, to if market product types, seeing or

it our it's is very across really just would traditional seeing would all I in of historic broad-based. I it board, pretty say Yes, that and we're much -- markets. the Rob. that say It

it all you call. But product As really you recognize our on electing as types very and types that. know, say, of across our sure investors appreciate is it's we're customers, to I'm we've I in geographies. into go got competitors and broad-based, geography, And to all regard would product the specifics with and

a on Okay. of Flight seeing the pipeline, -- the lot waiting sounds are any I Or like they but there's And it Electronics? then was you're if versus on wondering Support the interest? both Group M&A

they're busy deploy Both HEICO very can strong. both to strong. businesses the afford area. firepower both. where got has think each we We're very very fortunately, capital I in are in And

So it's opportunistic. more not mutually really exclusive. It's

ahead. Capital RBC Markets. one, we Herbert The with next have Ken Please go

that that narrow-body business United think the with airline maintenance Is your faster wide-body be XXXX, the here in say Europe, or everything levels. spending look for the domestic mean the fiscal and their can wanted North to I for or at you sort America when of domestic to it recovery pre-COVID the we and your fleets? versus to comments how in with Eric, regarding for international on 'XX fleet you recovery domestic versus to timing versus I you Yes. their seeing customers do first. back for you about travel we're predominantly States fair up follow I the and start international wanted travel.

domestic it's careful it think is, be more certain We're to body will that Yes, but of been There to don't in be towards I great to it's retired. really want well, the levels If would extremely ourselves ahead I I think are 'XX. Ken. not say, question, have likely 'XX. back here. narrow 'XX of end that I doing get fleets the

to a that's So be going bit of headwind. a

So at maybe 'XX. domestic to that -- if by in the back that narrow-body year. not was at certainly it's it levels of be end the the this happens, it But it's will point, I'm anticipating the

live think while, and reasonable is conservative, for mean, have to But I -- to think And to we're assuming with we're guess. knows Omicron is next. to this have who to be it. to more what I XXXX going going going probably to comes regard got with I be and everybody's a a virus that here we've

So I prudent more thing. probably think that's a that,

In international, also still Asia low. so more likewise very the terms And is struggling is than of the Europe American market. North

that got upside think good do I So, potential we've a in those markets.

Thanks the Okay. for detail there.

a for that's opportunity you the nice is total how cargo we How to XX% older, look cargo cargo The the seeing about your -- think maybe the Or about at represent And tends downturn. relative As exposure. through you of wanted sort has tends larger your to strong, I very comment obviously, greater markets? roughly be to fleet exposure? ask can if about of -- this cargo I mean you're cargo, growth? clearly been you to where do air aircraft. cargo fleet

the Very the as strong there. anticipate cargo reasons, for to another continue relationships very customers. the doing obvious well those questions got market cargo Yes, all we we line. a product on offer very continue. going We're stay a out that, We're good going should question. result broad to is strong The great in of that of market. We've very with

to really cargo good about So have feel I the markets. say I

have these some you that you come lot get HEICO they know to sure cargo any if they solutions. that if are should companies, HEICO free make save and friends with want So can with your delivery still money of a running that they book purchases, to for

'XX, line just of sort at as imply would back hit modeling obviously, out one trend Eric, XX% for performance sort of there you, pass don't We'll you? we we the think strong to in are it you get the some at business. mind should question in about Is fiscal point you the definitely Or EBIT headwinds maybe If level? that reason that there this at year, margins could, for on. just any other final looking I some point of segment margins keep

it's Carlos. Ken,

take me that one. Let

nicely. see. As both divisions, that other headwind Support we're I sitting the of no today, are all quite here mean time, three doing real the within I would, than if there's -- Flight of product you

to the said, I once the that Products levels, that we for and back point, Group Specialty get the ought then do margin. key 'XX approaching we that bit Eric lagging Once we back to get OEM is the start is think to the to a levels. As 'XX cycle. XX%

levels. those we're As I build to But if in not do, Eric strongly real that sure ought that just to we mentioned, we 'XX. going we're once see very

not Ken, there. just a an getting issue, timing to impediment it's So It's time.

The we the next Ciarmoli Truist ahead. line Please have Securities. go one, Michael with

in mentioned Carlos, Eric Ken's down Omicron to international, in if or run to I XX% on start that there have your think could and FSG? and Nice think, quarterly just is in possibly, and run on But activity up results. it's rate maybe to going you takeoffs our an at somewhere here customers you come need wide-body have may that to that get stay impact. to on spending Do I close question of 'XX to fiscal Maybe domestic or back wide-body think versus you where international still Carlos, we fleet we're rate. 'XX that the on about landing, exit international, that line FSG quarterly

Yes.

expectation. I international we that vengeance. back going the the a when are mean I in to be back think would wide-body a they're that, markets reasonable come and come anticipate to going with

we're It it and very important that of And To to we to be come but with all us. for we're have out sort think honest going the well. -- to very the -- do is we market I recovery an and back. is recovery. not of think feel to know combinations figuring I modeled strongly permutations going We going well. you, So bifurcated do

We continue develop it. to product for

any very So gives if confident still you in it. in our feeling it, we're of confidence that

Yes, about the that feeling I in good segment. to I'm our that, would just market add very gains share

done them product, have our going job help new of successful. folks sales accessible helping our finding that out think new will and customers, a them that to be I find more being good products

us something So And because it, that's a that it it's get little for bit can't us additive, of which get could there wildcard there, we're a that I a be could quantify but sooner. seeing. could

the Got obviously, of season done? international that these be where fleet as quarter do anything then being ahead. Eric, you prep soon markets? significant a lot but And customers? sure, a six, into as you are as late heavier in work today that wide-body tailwind summer really airlines are XQ Omicron, to from I mean see really hearing it. seven where your for the maybe we here and mean, I travel could sit start and second a prep And scenario think you months a they there's thinking

Yes.

of travel definitely that's they is prepare is -- I to that, I going regardless My that yes, entirely And going feeling summer people Omicron. in think think to to are next it possible. are advance. reasonable

of coming Got that, LEAP engines, you GTFs development. start business start guys in? content platforms? to of could then those And start of engines I'll one going it. seeing sort in shop that we're the some expect Should come those on have be as product Do to to the try we just visits. new on for some accretive And you

of significant life cycle. don't products Yes. Normally, product, we sales you develop have in soon this as know, we the don't

like specific material. be comment life but that in not So cycle we products, to don't something on to the normally would

Thank you.

Gautam of line Cowen. We with Khanna have the

Your line open. is now

in advanced. holidays Happy

wanted FSG, I sense so this, all, Just have relative been asked. first to the don't but of covered of Any you on couple growth. for sub-segments of if the up within questions -- sequential kind follow at know a that

those products, up aftermarket how if moving better repair next R&O, you or So X? trends have are quarter kind say? where the differ, versus seeing at how parts specialized versus into do R&O of or you by you what of Was what are picking component visibility can And all? do

those guys, Xs to And for all say, softer. the Boeings year, We the new been 'XX, and and that has Eric had quarter to one our recent a back. the Tier one the into activity the the the that, is They coming parts nice It's some and So OEM quarter a is pretty but are quite sort we'll a that grown business. have think But guess strong has that tied growth how point growth businesses a organic earlier, I talking next very the that that see I 'XX, growth Gautam? Flight the strength or parts are are in little houses strong reasons purchasing it's that I Specialty things business top of earlier the They're in doing where Eric business QX. for two big about generally flips. within and trends very of trends That been very Airbus lagged those the is defense I'd off more and within go similar. quarter improvement think little if strong. gave, Group. the of our continued and that on business mentioned weak repair. that in Support tandem, Products, of in lot repair to pointing, nicely. build Eric's distribution some QX of coming you're it's which FSG in a help, part of Does and the our is

it Yes, does.

the sequential? aftermarket repair point component a tracked of kind did for just finer it, on to sequentially, out parts be So the of

Yes.

That's right. good to see. All

Just switching to M&A.

a Anything more Or is perspective? do to mentioned be you these pretty the days. years opportunities? more been promising bigger of might from it's anticipate two consequential kind last you last that are be smaller You the that or kind year or it's like busy tuck-ins size pipeline seeing of going where

at sizes. all opportunities of look We

to at we're we this call point course, careful, looking and variety who be talking have are this really sizes with, remains to on ones. at -- anything be it we And now seen that frankly, at continue we so, frankly, because the want a even of which we'll And don't anybody of that But say the to start of that out and for to transactions it although, suffice the and remains billions, of in kind ones hundreds criteria our in the look thing we figuring are millions, again, small same to acquisition.

accretive. going buy So that's putting for the revenue sake go to up something of we're not not just

all As to us, it's generation, income. you cash the know, the net about

adding over -- the how then for that's to maybe new then do just XX XX, the And anticipate PMA parts helpful. Okay. you months, Eric, one on And portfolio? next -- many

be it XXX done we've that typically year. to in what XXX We're per consistent Yes, area would with past. in the

do know, longer. -- down I products, to the be and number they going of little you think just so Obviously, complexity The it's numbers go consistent product take a type and depending more complex bit that. can and could up And the on with all that.

So would that in area. around it but them, of be moves there fewer

we line Sachs. Noah with Goldman the next have of Carpenter The one,

the is that the the It's history? the acquisitions Noah given would 'XX deployed year on you. flow cash Company fiscal spent line Where from Poponak. to item pin number a highest its in likelihood on that hear in cash in the you statement Nice

I question. I'm understand the sure not

that asking more what was think I are to Noah on spend is, equity? going we

never we know. never We know

very and make we're acquisitions. mean, making acquisitions we open want to large So I low, to

opportunities. depends all the it on So

in an billion opportunistic the we'll spend spend are the We $XXX we'll in acquirer $X million. and

answer. So -- but -- really I the I we don't don't know. know

I more more able and tell But single year. we be any you, in we've than hard, nothing can done XXXX to working capital we deploy ever than would love in very are to

very the got as to but careful what's we're shareholders. money our with said, to homework. -- estimate Dave because happen. And HEICO's do it's -- on it to We've So going belongs

large shareholders. Of -- we course, sure people's And make correctly. that we're some money of want spending we're to

our but to for year love very in history. -- focused, much it So the we're we would biggest be and

get we are looking data into never whether think No, -- of to diligence we we really We where glitches, is due mentioned going ask make very we close. we and to and our a material. due our we are know closing spending I do problem again, mind, want glitches they're are we're And since for we money, I until before, is the run spending a don't at the money transactions. table, number the to shareholders because which in very, diligence their we're money, And and mistakes. thorough my our partners,

on. the say obviously, of surface, unsecured give draw to said revolver they that that us have want earmarked we banks we course, we would that multiples billion -- have will And we've the on revolver, us should So many can it. I $X.X of

the standards don't want we and hard very the we at the to us if our to the sky standards. presented in pie it to know just EBITDA fit they deals it's in in that look if payback XX cash we in like tell, to do the X future but So would meet are the And so to you wheelhouse, pay are with years, and XXx forth.

going So to us we're that that continue served and strategy has well, very strategy.

answer. know for I the be So program. I'd spend it's know we're much we'll myself, to you as want give did the HEICO the effective answer but as love you possibly really impossible to -- trying to

of possible commentary I'm the outcomes. spectrum for looking And that along No.

that helpful, there is So super I and appreciate you it. -- provided everything guys

was airlines -- Like cross-border there you it is when to the know? there Or given seems just COVID? be Asia to one Just it plays industry from very taking Or it cases? it away for wondered here can now? much can if Is kicks international question is provide up one to I to of or hearing to is are I if happen? obviously how out? out and customers mean other right I around that incremental can industry, how how any on restrictions that government I And you shed from that of help the actually terms are for can on light corporate and policies guys on going you play your mean what Or any you that's wondered your back has kind with that there travel this the cross-border. are never conversation just just zero logistically? you the in. just teams since are discussions here in close me place detail million-dollar

Yes.

airlines can do want much testing encourage matter. They the and encourage very stuff. obviously, to think I possibly this vaccinations on that all and focused, are to travel, they everything and in order

I just they're resilient as different very be requirements, out flexible. -- to different And it. governments to So how out to need going and handle come be they're to with figure going think they

we where to through think the can get really a traveling. I maturing but everybody to for industry So for keep and to all best got while, this, is around we're point prepared do just the COVID that hang to a we've

creative that. to when So and it resilient comes they're very

So, it specifics on range here sounds cross-border lot just like possible have across we're a how still the without to evolve can you from and of of business a manage outcomes.

Exactly.

You Yes, all got it. Yes. right.

line the with Management. have of Capital Colin we question, next Ducharme The Sterling

on just can demand hearing level that increased what subsidiary to subsidiary kind that change and improved just liabilities revenue to couple then windshield anecdotally maybe is assuming you. from what trend? And of I'm of three. same in you increase then the And through do demand link tell inventory your some And follow-up then, build And deltas the one, here a just in for on at mapping you're that deltas. got AR being quick specifically environment, environment then in to got Carlos. you're current quickly AR, the your what level. us is current flow trying I just Carlos, change the kind of two, a FSG I'm hearing the side. being flow cash linking statement, deferred that's on I being on And to liabilities, -- that I'll the for link maybe start to the cash

right. All

So well, lot to a there. unpack there's

receivables. Let me with start

So quarters. FSG which quarter, us as 'XX. you Sales receivables out, function during were in XX% pointed a of up the generally fourth over the for is

in is or seeing little the my When or look those bit receivables, that deal you're a of in good growth at you're receivables a is shape. thing. increasing, the nothing the there's with growth. deal the seeing with the what of our build to in sales, growth compared up, subsidiaries overall ebbs which, quality is building again, extent, very great we the think growth quarterly three-month of function, a business of So kind with And our long not or if and we time is have growth they so shortages. to occurring pleased in go a inventory was on I to, lead actually of $XX deal to with inventory you call, on inventory subsidiaries side, also bad in right? the year-over-year. The sales QX any the earlier with is whatever potential on encouraged heard to XX% issues in receivables -- it any judgment the revenue real bubbling build I'm inventory to they're in to the receivables. flows increments. is pleased attenuated from good that problems saying Look, I And if in that. million the quite was quality And And sales with need

actually much may fiscal I did the not -- was of 'XX, out, working trend, pleased liability And liabilities most I'm think in part, FSG, zero. Company the you're current it with. have have But the performance-based any the pointing in very discernible I'm So remember, compensation. that capital in There pockets it. been the that regard, management not the for to

been performance that commissions for may selling consider plus have you you it the growth. what base pay around have and year out. until And in activity jammed lot pay so last of that the for you bonuses, segment, this year end on And at I here, have not what have performance you have outstanding that top you of a gets sales accruals

in caption movement that of you? is that the help comp a so lot And performance-based related. Does

helpful. detail. very That's the I appreciate Yes.

expecting here, higher than follow-up, bit guess, Maybe was I mapping structure what and cap you just a a So here. and quick kind posture I here. out I'll little leave of conservative different with level just

guys of more many, you've -- had have a You lot many dry arguably than in are years. powder, you

medium EBITDA put Why sheet M&A not stepping take the a lines? more along something a to with in scenario, ability Is pipeline conservatively. perhaps healthy healthy balance meaning posture, that growth very an and the sheet either/or, situated to term. naturally You're step M&A very, an in going more share the those a aggressive you're about talk the program, put balance delever be -- a versus back, aggressive getting still to repurchase You the towards pipeline. there overall, yet work

path glide you If underlevered very moment medium the at the you to term, view today over speak on just can here. guys structure and cap are just very,

HEICO -- term short So the the long-term answer not work is, long in a investment. we do term. medium, is

You are correct.

pipeline. Earlier this I we the that many the do We acquisitions in to understand that hope at there underlevered way. not intend mentioned many. are we in not are and We're underlevered looking are that. and call, do We stay

always we an So have have believe strategy in we thoughts don't any repurchase Company. about purchase, which share the shrink XX for and to the years, shareholders. resulted that followed the has We extraordinary Company, that's growth growing the for

basic all to please the use. and shrink our not again, going probably we're of company are shrink We're capitalization grow And the and going partners. which for everything and this one shareholders So to the the that going traders the the we're largest long-term speculators policy, we and not Company, shareholders else. to, to we're change discipline

the best we in interest. So that it's feel

it of policy. I community speak at at the are the they pleased institutional of apparently, to believe, shareholders, response sells the that we that is thing these other with to and The multiple shares many shareholder very our after

to going it we're your we're I it it. going going stick And again, shrink grow So to that aggressively. answers to not hope question. hopefully, to we're

either/or, if posture all value that Larry, denominator, on basis view shareholders but and the of totally balance thinking time. as in about -- to in And putting respect without press you a that while Company, the history but terms creating we an work I I essentially value well. the a kind respect of in over of my all talking not have the in the totally guys generated. you, of the in what share long-term shrinking we're ownership. Yes, that's due that's sheet per share And very helpful. guys history, shrinking But on respect, per we're And

with all and be So that respect that that again, press. you've value would the created. And just of strategy I all due say quick

thorough the moment. very hear but always our on I at And We in can scenarios, the very, at look, we promise we're we're Okay. everything. analysis you, all acquisitions you. running very look optimistic

We from question our [Operator Raffetto with have the Louis UBS. line of Instructions] next

Your line open. now is

to two to come this M&A points. sort of want from I back So

just bit be closed, for million. I at acquired what's on little as like looked XXXX, a And that, going of about sales looks 'XX First, it is we $XX to is maybe based sort confirm, about can it already less?

what the sales asking year, the acquired are for You're Louis.

Yes.

already million. completed, And So on $XX it what like was complete, will you've little it just again, bit 'XX? a what not less I might than be about that maybe already for or might you based I think think now 'XX looks

plan, have sales think I on larger right we number. that we things plan You're hopefully Again, capital go do and And more. according to can saying next year. the hopefully we've been is hope deploying acquired to that we have would if what clinics on

sort just I do M&A to you'll to that of Larry's what's because point, done mean, side. of I'm to but looking be things, close able -- don't side if know for the we you step our when

comes end been color deals you? that been, the what provide Is else at the complete, of there? somebody the you back? of the it haven't you to is that sort For can just diligence it outbids day, Any has able due

due different diligence, We reason. reasons. happen for of can't single Louis. one you you There are kinds all of things things reasons all discover this, of give and Lots kinds terms,

things They're change. be to Business of All can happened. going kinds changed. have

pretty and point, to don't serious That's But get not contract for We we usually very have -- can I few it's close. unheard deals certain us, that due negotiations don't the tend this. we to once say that to get diligence a don't that rare We have many close. of.

That's around you Great. Eric. cash Okay. awesome And flow. Carlos, then just for one

think, guidance been. it for idea And the giving any Understanding was So obviously, to you wouldn't given I the past. grow but then CapEx? that you've 'XX tend around give 'XX, you're in ever in that any I 'XX? highest -- actually, cash reason necessarily in flow it's the not fiscal know

in the times. like year, We every XX% grow Company to XX% to normal

in We so flow, don't we want be no in really cash growth cash cash tandem, And to So of falls to in right? So, working and the work that to by activities. like that have earnings see next income which would that side, operating growth capital is management net on to cash right? flow. the operating good a all function provided earning that

expect my to I There's So right that to What second no next impediments in occurring would that continue. question? now, now judgment there's year. was your

year. CapEx mean, we around next a in little this at up year but. have the past, was know you bit, Just I I -- -- least

budgets our We just longer. CapEx finished or Yes.

guess we at the next I right kind the But kind million be $XX year my think is could somewhere could the ground now. around moment. that's that but we of peg flow, even of on have

we The the go next Please ahead. of with Sheila line have one, Kahyaoglu Jefferies.

for okay. maybe that's Eric. So Eric, two if

little talked bit wondering beginning a the of I But ETG about call. about FSG. I was think pricing we in the

thinking How discount. the just I'm if as well? to prices. about that, raising sure you're So suppliers talk are could to their and How headwinds headwinds XX% you you gauging You environment. guessing cost I'm price? are tend OEMs given, especially are seeing keep just about XX% you labor and pricing And a

great we sure seeing Sheila. pressures, our margins. cost we are we Yes, make to are and question, Yes, very focused maintain

to our to And think I industry advantage customers, whatever we're it's as exist. increases need along get intention with our the and to we We that don't but to pass we're industry, going going make does. clearly, move sure passed those So to cost we've increases on. what our, do -- the as long of had but take they along want we

be Sometimes little there a contract. there's a lag if can

However, it's along the fully industry. with intention our to move

one then this on maybe last And Okay. just variant. and like Omicron

How two for about you guys is do the that you case been peak airline your what you versus like You through guys our work think guys? variants changes does How behavior? see now. any do Like in revenues? of guys have

far. Yes. There's natural I mean we haven't variation. thus

depends severity and that So is I really been us. going think our mean, cases have reasonable I see. impact so as assume it patterns, of it's extraordinarily And variant. on ordering as the But transmissiveness Omicron in the day-to-day the well the strong. the to is bookings of to sales hard look, to it

changing parts around the We're making -- not watching hit sure that any we're got shelf. So, We're result different a we've that to number It's business able as it. at of it closely. of will have world. there regions It's times, been to spread assume practices assist our will different on we a vaccines. it see therapeutics the that the and been it the to have of nice sort be that and developed complement

as So to just to Delta, dramatic variants the going or accordingly. have going I to we're were. But as other with. a just run anybody don't it's to is And showstopper be business this that think that live something going to we're have anticipates

a And sheet. phenomenal going we're It's a So, of And balance any more through of get since behavior. our through we're it. even working to this. have very group importantly, strong we people, really not changing fortunately, right

the sleep have, -- doesn't us frankly, the it's up more And So lose airlines HEICO better to it the causing position think pick any in not whatsoever. to strain share. I is

questions We further you. any Presenters, continue. at have time. this Thank don't please

thank your it. This we I interest is on in for everybody this want call Larry Mendelson appreciate again. to and HEICO,

We questions. are answer available to

you And the for holiday You very February quarter away can stay happy Eric guess, healthy, -- everybody -- will myself. fiscal stay first and I good call speak call, Victor, February. of healthy and in health, season, And late I next which 'XX. much. wish Carlos, and a forward 'XX we the COVID, happy end to very we look holiday from will Thanks of be to

today's Thank participating. concludes conference for call. This you

You may disconnect. now