HEICO Corporation Declares a 5-for-4 Stock Split and Increases the Semi-Annual Cash Dividend by 7 Percent
June 12 2018 - 8:42AM
Business Wire
Marks the 17th Stock Split or Stock Dividend in
the Past 23 Years and a 17% Cumulative Cash Dividend Increase over
the Past 12 Months
HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that
its Board of Directors approved a 5-for-4 stock split and a 7%
effective increase in the semi-annual cash dividend on both its
Class A Common Stock and Common Stock.
The stock split will be effected in the form of a 25% stock
dividend on each class of the Company’s shares as they are
respectively held. The stock dividend is payable on June 27, 2018
to shareholders of record in the same class of shares at the close
of business on June 21, 2018. Cash will be paid in lieu of
fractional shares based on the last sale price of each share class
on the record date (as adjusted for the stock split).
HEICO’s Board of Directors also declared a regular semi-annual
cash dividend of $.06 per share, payable on both classes of common
stock. The cash dividend will be paid on July 19, 2018 to
shareholders of record in the same class of shares at the close of
business on July 11, 2018. The cash dividend represents a 7%
increase over the prior semiannual per share amount of $.056 and is
a cumulative increase of 17% since July 19, 2017.
This announcement marks HEICO’s second stock split and third
cash dividend increase in the past year, as well as the
17th stock split or stock dividend since 1995 and HEICO’s
80th consecutive semi-annual cash dividend since 1979.
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive
Officer, along with HEICO’s Co-Presidents, Eric A. Mendelson and
Victor H. Mendelson, commented, “HEICO’s strong cash generation,
strong operating performance and strong culture gives our Board of
Directors confidence in our outlook. This stock split and increased
cash dividend reflects that confidence.”
Considering the reinvestment of cash dividends, and the impact
of prior stock splits and stock dividends, a $100,000 investment in
HEICO shares in 1990 has become worth approximately $31.3 million
today, representing a compound annual growth rate of 23%.
The Company has two classes of common stock traded on the NYSE.
Both classes, the Class A Common Stock (HEI.A) and the Common Stock
(HEI), are virtually identical in all economic respects. The only
difference between the share classes is the voting rights. The
Class A Common Stock (HEI.A) has 1/10 vote per share and the Common
Stock (HEI) has one vote per share. There are currently
approximately 63.5 million shares of HEICO's Class A Common Stock
(HEI.A) outstanding and 42.7 million shares of HEICO's Common Stock
(HEI) outstanding. After giving effect to the stock splits, the
Company will have approximately 79.4 million shares of Class A
Common Stock (HEI.A) outstanding and 53.3 million shares of Common
Stock (HEI) outstanding. The stock symbols for HEICO's two classes
of common stock on most web sites are HEI.A and HEI. However, some
websites change HEICO's Class A Common Stock trading symbol (HEI.A)
to HEI/A or HEIa.
HEICO Corporation is engaged primarily in the design,
production, servicing and distribution of products and services to
certain niche segments of the aviation, defense, space, medical,
telecommunications and electronics industries through its
Hollywood, Florida-based Flight Support Group and its Miami,
Florida-based Electronic Technologies Group. HEICO’s customers
include a majority of the world’s airlines and overhaul shops, as
well as numerous defense and space contractors and military
agencies worldwide, in addition to medical, telecommunications and
electronics equipment manufacturers. For more information about
HEICO, please visit our website at http://www.heico.com.
Certain statements in this press release 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: lower
demand for commercial air travel or 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 to our costs to
complete contracts; governmental and regulatory demands, export
policies and restrictions, reductions in defense, space or homeland
security spending by U.S. and/or 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 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 within and
outside of the aviation, defense, space, medical,
telecommunications and electronics industries, which could
negatively impact our costs and revenues; and defense budget cuts,
which could reduce our defense-related revenue. Parties receiving
this material are encouraged to review all of HEICO's filings with
the Securities and Exchange Commission, including, but not limited
to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except to the extent required by applicable law.
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HEICO CorporationVictor H. Mendelson, 305-374-1745 ext.
7590orCarlos L. Macau, Jr., 954-987-4000 ext. 7570
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