Company: HEI-A
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0000046619-25-000015
Chunk: 45

Company: HEICO CORP
Filing Date: 2025-02-28
Form: 10-Q
Item: Item 8
Chunk 45
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 financial position and preserving flexibility.

Liquidity and Capital Resources

Our principal uses of cash include acquisitions, capital expenditures, interest payments, cash dividends, distributions to noncontrolling interests and working capital needs.  We continue to anticipate fiscal 2025 capital expenditures to be approximately $65 to $70 million.  We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility.  The revolving credit facility and senior unsecured notes contain both financial and non-financial covenants.  As of January 31, 2025, we were in compliance with all such covenants and our total debt to shareholders’ equity ratio was 61.8%.

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.

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Operating Activities

Net cash provided by operating activities was $203.0 million in the first quarter of fiscal 2025 and consisted primarily of net income from consolidated operations of $181.6 million, depreciation and amortization expense of $46.2 million (a non-cash item), net changes of $17.7 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 $13.0 million (principally participant deferrals and employer contributions), partially offset by a $59.7 million increase in net working capital.  The increase in net working capital is inclusive of a $63.9 million decrease in accrued expenses and other current liabilities mainly reflecting the payment of fiscal 2024 accrued performance-based compensation, and a $36.2 million increase in inventories to support an increase in consolidated backlog, partially offset by a $20.1 million decrease in accounts receivable resulting from the timing of collections, a $16.9 million increase in income taxes payable and a $10.4 million increase in trade accounts payable.

Net cash provided by operating activities increased by $91.4 million (an 82% increase) in the first quarter of fiscal 2025, up from $111.7 million in the first quarter of fiscal 2024.  The increase is principally attributable to a $56.1 million increase in net income from consolidated operations, a $19.6 million increase in the "Other" caption