MIAMI and HOLLYWOOD, Fla., March 20, 2017 (GLOBE NEWSWIRE) -- 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. This announcement marks HEICO’s 15th stock split or stock dividend since 1995.
The stock split will be effected in the form of a 25% stock dividend on each class of the Company’s shares and is payable on April 18, 2017 to shareholders of record in the same class of shares held as of April 7, 2017. Cash will be paid in lieu of fractional shares based on the last sale price of each of the respective classes of shares on the record date (as adjusted for the stock split).
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 reflects our continuing confidence and enthusiasm in HEICO's long-term growth and financial outlook. Additionally, this stock split, which is the 15th overall since 1995, underscores our commitment to being a shareholder value-focused organization that has implemented the same, successful strategy since 1990.
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 $18.7 million today, representing a compound annual growth rate of 22%. Additionally, in December 2016, we increased our semi-annual cash dividend by 13%, which was paid on January 18, 2017 and was HEICO's 77th consecutive semi-annual cash dividend since 1979."
There are currently approximately 40.4 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 27.0 million shares of HEICO's Common Stock (HEI) outstanding. After giving effect to the stock split, the Company will have approximately 50.5 million shares of Class A Common Stock (HEI.A) outstanding and 33.7 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 web sites change HEICO's Class A Common Stock stock 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.