MIAMI and HOLLYWOOD, Fla., Sept. 24, 2013 (GLOBE NEWSWIRE) -- HEICO Corporation (NYSE:HEI.A) and (NYSE:HEI) today announced that its Board of Directors declared 5-for-4 stock splits on both its Class A Common Stock payable in shares of its Class A Common Stock and on its Common Stock payable in shares of its Common Stock. The stock splits, which will be effected in the form of 25% stock dividends on each of the classes of common stock, are payable to shareholders of record as of October 11, 2013. The additional shares will be distributed to shareholders on or about October 22, 2013. Fractional shares for the stock splits will be paid in cash based on the last sale price of each of the respective classes of common stock on the record date (as adjusted for the stock splits).
Today's action marks HEICO's 14th stock dividend or stock split starting in 1995, when the Board began declaring such dividends or stock splits as it deemed appropriate.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, along with HEICO's Co-Presidents, Eric A. Mendelson and Victor H. Mendelson, remarked, "This stock split reflects our continuing confidence in HEICO's long-term growth and financial outlook. Since 1990, HEICO has executed on a growth strategy which has consistently delivered superior returns and value to our shareholders. Considering the impact of prior increases in cash dividends, prior stock splits and stock dividends, one share of HEI worth $8.38 in 1990 has become worth on a combined basis approximately $900 today, representing an increase of 107 times the 1990 value and a compound annual growth rate of 23%. Based on the Company's current business outlook, the Board of Directors presently intends to increase the Company's regular semi-annual cash dividend to $.06 per share, which would represent a 7% increase over the prior semi-annual per share amount of $.056, as adjusted for these 5 for 4 stock splits. In June 2013, the cash dividend was increased by 17%."
HEICO 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) receives 1/10 vote per share and the Common Stock (HEI) receives one vote per share.
There are currently approximately 31.7 million shares of HEICO's Class A Common Stock (HEI.A) outstanding and 21.4 million shares of HEICO's Common Stock (HEI) outstanding. After giving effect to the stock splits, the Company will have approximately 39.6 million shares of Class A Common Stock (HEI.A) outstanding and 26.8 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 certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, FL-based Flight Support Group and its Miami, FL-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 web site 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, but not limited to: lower demand for commercial air travel or airline fleet changes, 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; HEICO's ability to introduce new products and product pricing levels, which could reduce our sales or sales growth and HEICO's ability to make acquisitions and achieve operating synergies from acquired businesses, customer credit risk, interest and income tax rates and economic conditions within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. 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.