HEICO Corporation (NYSE:HEI) Q3 2020 Earnings Conference Call - Final Transcript

Aug 26, 2020 • 09:00 am ET


HEICO Corporation (NYSE:HEI) Q3 2020 Earnings Conference Call - Final Transcript


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Welcome to the HEICO Corporation Fiscal 2020 Nine Months and Third Quarter Earnings Conference Call. We thank you for joining us today. My name is Vincent and I'll be your conference operator.

As we begin the call, we remind you that certain statements in this conference call will 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 the severity, magnitude, and duration of the COVID-19 outbreak; HEICO's liquidity and the amount and timing of cash generation; the continued decline in commercial air travel caused by the outbreak, 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 and profitability; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales, sales growth, our profitability; product development or manufacturing difficulties, which could increase our product development and manufacturing 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 spending or budget cuts, which could reduce our defense-related revenue and profitability.

Parties listening to or reading a transcript of this call 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.

I now turn the call over to Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer. Thank you.

Laurans A. Mendelson

Thank you very much and thank you and good morning to everyone on this call. We thank you for joining us and welcome you to the HEICO's third quarter fiscal '20 earnings announcement teleconference. I'm Larry Mendelson, Chairman and CEO of HEICO Corporation, and I'm joined here this morning by Eric Mendelson, HEICO's Co-President and President of HEICO's Flight Support Group; Victor Mendelson, HEICO's Co-President and President of HEICO's Electronic Technologies Group; and Carlos Macau, our Executive VP and CFO.

Before reviewing our operating results in detail, I would like to take a moment to thank all of HEICO's talented team members who have performed admirably during the challenges brought on by the COVID-19 outbreak. Their dedication to HEICO's customers and the safety of their fellow team members has been exemplary. I want each and every member