Company: HEI-A
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0000046619-25-000046
Chunk: 56

Company: HEICO CORP
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 56
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 notes contain both financial and non-financial covenants.  As of April 30, 2025, we were in compliance with all such covenants and our total debt to shareholders’ equity ratio was 56.5%.

Based on our current outlook, we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months.

Operating Activities

Net cash provided by operating activities was $407.7 million in the first six months of fiscal 2025 and consisted primarily of net income from consolidated operations of $352.1 million, depreciation and amortization expense of $95.1 million (a non-cash item), net changes of $31.9 million included in the "Other" caption (principally the receipt of advance deposits on certain long-term customer contracts), and net changes in other long-term liabilities and assets related to the HEICO Corporation Leadership Compensation Plan (the "LCP") of $16.6 million (principally participant deferrals and employer contributions), partially offset by a $93.8 million increase in net working capital.  The increase in net working capital is inclusive of a $46.1 million increase in inventories to support an increase in consolidated backlog, a $40.4 million increase in accounts receivable resulting from the timing of collections, and a $39.3 million decrease in accrued expenses and other current liabilities mainly reflecting the payment of fiscal 2024 accrued performance-based compensation, partially offset by accrued fiscal 2025 performance-based compensation, as well as $29.2 million increase in trade accounts payable.

Net cash provided by operating activities increased by $154.9 million (a 61% increase) in the first six months of fiscal 2025, up from $252.8 million in the first six months of fiscal 2024.  The increase is principally attributable to a $91.7 million increase in net income from 

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consolidated operations, a $54.5 million decrease in net working capital and a $12.1 million increase in accrued contingent consideration.

Investing Activities

Net cash used in investing activities totaled $339.8 million in the first six months of fiscal 2025 and related primarily to acquisitions of $286.2 million, capital expenditures of $33.3 million, and LCP funding of $17.7 million.  Further details regarding our fiscal 2025 acquisitions may be found in Note 2, Ac