HOLLYWOOD, Fla. & MIAMI--(BUSINESS WIRE)--HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) announced today that its Board of Directors approved a 5-for-4 stock split 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.
HEICO’s Board of Directors approved a 9% increase in the semi-annual cash dividend to $.0875 per share ($.07 per share on a proforma 5-for-4 stock split basis) payable on both classes of common stock. The proforma cash dividend of $.07 per share will also be paid on the new shares to be issued with the stock dividend.
Both the stock and cash dividends are payable on January 17, 2018 to shareholders of record as of January 3, 2018. Cash will be paid in lieu of fractional shares based on the last sale price of each share class on the record date.
This announcement marks HEICO’s second stock split and third cash dividend increase in the past year, as well as the 16th stock split or stock dividend since 1995 and HEICO’s 79th consecutive semi-annual cash dividend since 1979. The cash dividend represents a cumulative increase of 22% since January 1, 2017.
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer, along with HEICO’s Co-Presidents, Eric A. Mendelson and Victor H. Mendelson, commented, “This stock split and increased cash dividend reflects our Board of Director’s continuing confidence and enthusiasm in HEICO's long-term growth and financial outlook, while also retaining sufficient capital to invest in our internal growth objectives and acquisition strategies.”
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 $24.2 million today, representing a compound annual growth rate of 22%.
HEICO also announced that its Annual Shareholders’ Meeting would be held on March 16, 2018. Shareholders of record at the close of business on January 17, 2018 will be entitled to vote at the meeting.
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.
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 50.7 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 33.8 million shares of HEICO's 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.
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.