Heico Corp (NYSE:HEI) stock rose 1.62% (As on December 19, 11:25:04 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Operating income followed suit, with a 29% increase in Q4 to $189.4 million. The Company incurred acquisition costs during the fourth quarter of fiscal 2023 related to the Wencor Group (“Wencor”) acquisition, which decreased net income attributable to HEICO by approximately $13.6 million. Despite incurring acquisition costs related to the Wencor Group and Exxelia International acquisitions, net income attributable to Heico Corp (NYSE:HEI.A) increased by 6% in Q4 to $103.4 million and by 15% for the fiscal year to $403.6 million. The Flight Support Group and Electronic Technologies Group both contributed to the record net sales, with the former achieving 74% growth in Q4 and 41% for the full year. The Electronic Technologies Group reported a 28% increase in Q4 and 26% for the full year. The Flight Support Group’s operating income increased 47% to a record $114.6 million in the fourth quarter of fiscal 2023, up from $77.8 million in the fourth quarter of fiscal 2022. The company demonstrated financial resilience with improved cash flow from operating activities, which rose to $148.4 million in Q4

HEI in the fourth quarter of FY 23 has reported the adjusted earnings per share of 84 cents, beating the analysts’ estimates for the adjusted earnings per share of 70 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 54 percent to $936.45 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by 6.11%.

Additionally, the company declared a semi-annual cash dividend of $.10 per share payable in January 2024.

The company also provided non-GAAP financial measures, including EBITDA and net debt to EBITDA ratio, to offer additional insights into its performance. EBITDA for Q4 was $234.2 million, a 36% increase, while the full year saw a 28% rise to $758.3 million. The total debt to net income attributable to HEICO ratio was 6.14x as of October 31, 2023, as compared to .83x as of October 31, 2022. The net debt to EBITDA ratio was 3.04x and .25x as of October 31, 2023 and October 31, 2022, respectively. The net debt to EBITDA ratio increase in the fiscal year ended October 31, 2023 principally reflects the successful offering of $1.2 billion in senior unsecured notes (the “Notes”) and increased borrowings on the revolving credit facility.