HEICO CORP
For the period ended Jan 31, 2025. Filed Feb 28, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2025 · Filed Feb 28, 2025
HEI$332.65+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-07-31; filed 2024-08-28.
0000046619-24-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-01-31; filed 2025-02-28.
0000046619-25-000015
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 75 current paragraphs.
55 unchanged; 18 reworded; 2 added; 23 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
As we look ahead to the remainder of fiscal 2025, we remain confident in achieving net sales growth across both the FSG and ETG segments, driven primarily by strong organic demand for most of our products. Specifically, we are optimistic about sustained momentum in our defense products, as reflected in this past quarter's results. Additionally, we aim to accelerate growth through our recently completed acquisitions while positioning ourselves to capitalize on future acquisition opportunities. Our disciplined financial strategy continues to focus on maximizing long-term shareholder value through a balanced approach of strategic acquisitions and organic growth initiatives aimed at gaining market share, while maintaining a strong financial position and preserving flexibility.
Current report
Net cash provided by operating activities increased by $91.4 million (an 82% increase) in the first quarter of fiscal 2025, up from $111.7 million in the first quarter of fiscal 2024. The increase is principally attributable to a $56.1 million increase in net income from consolidated operations, a $19.6 million increase in the "Other" caption (principally the receipt of advance deposits on certain long-term customer contracts), a $12.2 million decrease in net working capital and a $4.0 million decrease in the payment of contingent consideration.
Removed paragraphs (23)
Previous report
Our consolidated selling, general and administrative ("SG&A") expenses were $502.0 million in the first nine months of fiscal 2024, as compared to $353.2 million in the first nine months of fiscal 2023. The increase in consolidated SG&A expenses principally reflects $114.5 million attributable to our fiscal 2023 and 2024 acquisitions, inclusive of $31.5 million of intangible asset amortization expense. Additionally, the increase in consolidated SG&A expenses includes costs incurred to support the previously mentioned net sales growth resulting in increases of $25.9 million and $7.4 million in other general and administrative expenses and other selling expenses, respectively, and a $9.1 million prior year impact from the amendment
Previous report
and termination of a contingent consideration agreement pertaining to a fiscal 2021 acquisition, partially offset by an $8.1 million decrease in acquisition costs.
Previous report
Our consolidated SG&A expenses as a percentage of net sales were 17.7% in the first nine months of fiscal 2024, as compared to 17.4% in the first nine months of fiscal 2023. The increase in consolidated SG&A expenses as a percentage of net sales principally reflects a .5% impact and a .4% impact from the previously mentioned higher intangible asset amortization expense and amendment and termination of a contingent consideration agreement, respectively, partially offset by a .4% impact from the previously mentioned lower acquisition costs.
Previous report
Our consolidated operating income increased by 39% to a record $605.8 million in the first nine months of fiscal 2024, up from $435.9 million in the first nine months of fiscal 2023. The increase in consolidated operating income principally reflects a $165.9 million increase (a 61% increase) to a record $438.6 million in operating income of the FSG and a $7.7 million increase (a 4% increase) to a record $206.4 million in operating income of the ETG. The increase in operating income of the FSG principally reflects the previously mentioned net sales growth and improved gross profit margin, partially offset by a $35.5 million increase in intangible asset amortization expense and a $9.1 million prior year impact from the previously mentioned termination of a contingent consideration agreement. The increase in operating income of the ETG principally reflects the previously mentioned favorable gross profit margin and net sales growth, partially offset by a lower level of SG&A efficiencies.
Previous report
Our consolidated operating income as a percentage of net sales was 21.3% in the first nine months of fiscal 2024, as compared to 21.5% in the first nine months of fiscal 2023. The decrease in consolidated operating income as a percentage of net sales principally reflects a decrease in the FSG’s operating income as a percentage of net sales to 22.5% in the first nine months of fiscal 2024, as compared to 23.3% in the first nine months of fiscal 2023 and a decrease in the ETG's operating income as a percentage of net sales to 22.3% in the first nine months of fiscal 2024, as compared to 22.5% in the first nine months of fiscal 2023. The decrease in the FSG’s operating income as a percentage of net sales principally reflects a 1.2% impact from the previously mentioned higher intangible asset amortization expense and a .8% prior year impact from the previously mentioned amendment and termination of a contingent consideration agreement, partially offset by a .6% impact from lower performance-based compensation expense as a percentage of net sales and the previously mentioned improved gross profit margin. The decrease in the ETG's operating income as a percentage of net sales principally reflects a 1.2% impact from an increase in SG&A expenses as a percentage of net sales reflecting the previously mentioned lower level of efficiencies, which was partially offset by the previously mentioned improved gross profit margin.
Previous report
Interest expense increased to $113.9 million in the first nine months of fiscal 2024, as compared to $29.6 million in the first nine months of fiscal 2023. The increase in interest expense was principally due to an increase in the amount of outstanding debt related to fiscal 2023 acquisitions.
Previous report
Net income attributable to HEICO increased by 25% to a record $374.4 million, or $2.67 per diluted share, in the first nine months of fiscal 2024, up from $300.2 million, or $2.17 per diluted share, in the first nine months of fiscal 2023 principally reflecting the previously mentioned higher consolidated operating income, partially offset by the previously mentioned higher interest expense.
Previous report
Comparison of Third Quarter of Fiscal 2024 to Third Quarter of Fiscal 2023
Previous report
Net Sales
Previous report
Gross Profit and Operating Expenses
Previous report
consolidated SG&A expenses as a percentage of net sales principally reflects a higher level of efficiencies resulting from the previously mentioned net sales growth and a .4% impact from a decrease in acquisition costs, partially offset by a .5% impact from the previously mentioned higher intangible asset amortization expense.
Previous report
Operating Income
Previous report
Interest Expense
Previous report
Other Income
Previous report
Income Tax Expense
Previous report
Our effective tax rate decreased to 18.0% in the third quarter of fiscal 2024, down from 18.4% in the third quarter of fiscal 2023. The decrease in our effective tax rate principally reflects the prior year unfavorable impact of the portion of acquisition expenses that was not deductible for income tax purposes.
Previous report
Net Income Attributable to HEICO
Previous report
As we look ahead to the remainder of fiscal 2024, we remain optimistic about achieving net sales growth in both the FSG and ETG. This growth is expected to be largely fueled by the contributions from our fiscal 2023 and 2024 acquisitions, along with sustained demand for the majority of our products. Additionally, we are committed to ongoing product and service innovation, further market penetration, and maintaining our financial strength and flexibility.
Previous report
Net cash provided by operating activities increased by $166.4 million (a 55% increase) in the first nine months of fiscal 2024, up from $300.4 million in the first nine months of fiscal 2023. The increase is principally attributable to a $77.4 million increase in net income from consolidated operations, a $49.0 million increase in the "Other" caption mainly from the previously mentioned receipt of advance long-term customer deposits in fiscal 2024, a $44.3 million increase in depreciation and amortization expense, a $9.1 million prior year impact from the amendment and termination of a contingent consideration agreement, a $7.8 million increase in net changes in other long-term liabilities and assets related to the LCP and a $7.7 million decrease in deferred income tax benefits, partially offset by a $29.6 million increase in net working capital mainly reflecting a $16.1 million increase in prepaid expenses and other current assets and a $15.5 million increase in inventories.
Previous report
million of net payments on short-term debt, partially offset by $50.0 million of borrowings on our revolving credit facility to fund a fiscal 2024 acquisition.
Previous report
Index
Previous report
Index
Reworded paragraphs (18)
Previous wording
Our critical accounting estimates, which require management to make judgments about matters that are inherently uncertain, are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended October 31, 2023. Based on our recent assessment, we no longer deem revenue recognition to be a critical accounting estimate. Historically, the majority of our revenue was recognized at a point-in-time and involved minimal estimates to determine when control had transferred. We now recognize an even greater portion of our revenue at a point-in-time as a result of the acquisitions of Wencor Group and Exxelia International SAS in fiscal 2023. Additionally, we do not believe that the factors involving estimation uncertainty that are used when we recognize revenue using an over-time recognition model for certain contracts are reasonably likely to have a material impact on our financial position or results of operations. Other than the removal of revenue recognition, there have been no material changes to our critical accounting estimates during the nine months ended July 31, 2024.
Current wording
Our critical accounting policies, which require management to make judgments about matters that are inherently uncertain, are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” under the heading “Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended October 31, 2024. There have been no material changes to our critical accounting policies during the three months ended January 31, 2025.
Previous wording
Our results of operations for the nine and three months ended July 31, 2024 have been affected by the fiscal 2023 acquisitions as further detailed in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended October 31, 2023 and the fiscal 2024 acquisitions as further detailed in Note 2, Acquisitions, of the Notes to the Condensed Consolidated Financial Statements of this quarterly report.
Current wording
Our results of operations for the three months ended January 31, 2025 have been affected by the fiscal 2024 acquisitions as further detailed in Note 2, Acquisitions, of the Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended October 31, 2024 and the fiscal 2025 acquisitions as further detailed in Note 2, Acquisitions, of the Notes to the Condensed Consolidated Financial Statements of this quarterly report.
Previous wording
Comparison of First Nine Months of Fiscal 2024 to First Nine Months of Fiscal 2023
Current wording
Comparison of First Quarter of Fiscal 2025 to First Quarter of Fiscal 2024
Previous wording
Our consolidated net sales in the first nine months of fiscal 2024 increased by 40% to a record $2,844.0 million, up from net sales of $2,031.7 million in the first nine months of fiscal 2023. The increase in consolidated net sales principally reflects an increase of $779.1 million (a 67% increase) to a record $1,947.6 million in net sales of the FSG and an increase of $44.7 million (a 5% increase) to a record $927.4 million in net sales of the ETG. The net sales increase in the FSG reflects $625.5 million contributed by fiscal 2023 and 2024 acquisitions as well as strong organic growth of 13%. The FSG's organic net sales growth reflects increased demand within its aftermarket replacement parts, repair and overhaul parts and services, and specialty products product lines resulting in net sales increases of $124.7 million, $19.1 million and $9.7 million, respectively. The net sales increase in the ETG includes $39.4 million contributed by a fiscal 2023 acquisition, partially offset by a 1% organic net sales decline. The ETG's organic net sales decline is mainly attributable to decreased demand for its other electronics and medical products resulting in net sales decreases of $42.5 million and $14.2 million, respectively, partially offset by increased demand for its defense and aerospace products resulting in net sales increases of $38.8 million and $13.0 million, respectively. Although sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in the first nine months of fiscal 2024, continued cost inflation may lead to higher sales prices during the remainder of fiscal 2024.
Current wording
Our consolidated net sales in the first quarter of fiscal 2025 increased by 15% to a record $1,030.2 million, up from net sales of $896.4 million in the first quarter of fiscal 2024. The increase in consolidated net sales principally reflects an increase of $94.5 million (a 15% increase) to a record $713.2 million in net sales of the FSG and an increase of $44.4 million (a 16% increase) to $330.3 million in net sales of the ETG. The net sales increase in the FSG reflects strong organic growth of 13% and net sales of $13.5 million contributed by fiscal 2024 and 2025 acquisitions. The FSG's organic net sales growth reflects increased demand within its aftermarket replacement parts, repair and overhaul parts and services, and specialty products product lines resulting in net sales increases of $60.9 million, $15.0 million and $5.1 million, respectively. The net sales increase in the ETG reflects strong organic growth of 11% and net sales of $9.9 million contributed by fiscal 2024 and 2025 acquisitions. The ETG's organic net sales growth is mainly attributable to increased demand for its defense, space and aerospace products resulting in net sales increases of $16.1 million, $13.5 million and $4.9 million, respectively, partially offset by a slight decrease in demand for its other electronics and medical products. Sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in the first quarter of fiscal 2025.
Previous wording
Our consolidated gross profit margin improved to 39.0% in the first nine months of fiscal 2024, up from 38.8% in the first nine months of fiscal 2023, principally reflecting increases of 1.0% and .4% in the ETG's and FSG's gross profit margin, respectively. The increase in the ETG's gross profit margin principally reflects the previously mentioned higher net sales of defense and aerospace products, partially offset by the previously mentioned decrease in net sales of other electronics and medical products. The increase in the FSG's gross profit margin principally reflects the previously mentioned higher net sales within our aftermarket replacement parts and repair and overhaul parts and services product lines. Total new product research and development expenses included within our consolidated cost of sales were $82.8 million in the first nine months of fiscal 2024, up from $68.5 million in the first nine months of fiscal 2023.
Current wording
Our consolidated gross profit margin improved to 39.4% in the first quarter of fiscal 2025, up from 38.7% in the first quarter of fiscal 2024 principally reflecting increases of 1.0% and .6% in the ETG's and FSG’s gross profit margin, respectively. The increase in the ETG's gross profit margin principally reflects the previously mentioned higher net sales of space, defense and aerospace products, partially offset by the previously mentioned slight decrease in net sales of other electronics and medical products. The increase in the FSG's gross profit margin principally reflects the previously mentioned higher net sales within our aftermarket replacement parts product line. Total new product research and development expenses included within our consolidated cost of sales were $27.6 million in the first quarter of fiscal 2025, up from $25.1 million in the first quarter of fiscal 2024.
Previous wording
Our consolidated SG&A expenses were $172.8 million in the third quarter of fiscal 2024, as compared to $129.4 million in the third quarter of fiscal 2023. The increase in consolidated SG&A expenses principally reflects $34.6 million attributable to our fiscal 2023 and 2024 acquisitions, inclusive of $10.4 million of intangible asset amortization expense. Additionally, the increase in consolidated SG&A expenses includes costs incurred to support the previously mentioned net sales growth resulting in increases of $7.0 million and $1.8 million in other general and administrative expenses and other selling expenses, respectively.
Current wording
Our consolidated selling, general and administrative ("SG&A") expenses were $178.9 million in the first quarter of fiscal 2025, as compared to $166.6 million in the first quarter of fiscal 2024. The increase in consolidated SG&A expenses principally reflects costs incurred to support the previously mentioned net sales growth resulting in increases of $4.3 million and $3.9 million in selling expenses and general and administrative expenses, respectively, as well as $4.0 million attributable to our fiscal 2024 and 2025 acquisitions.
Previous wording
Our consolidated SG&A expenses as a percentage of net sales decreased to 17.4% in the third quarter of fiscal 2024, down from 17.9% in the third quarter of fiscal 2023. The decrease in
Current wording
Our consolidated SG&A expenses as a percentage of net sales improved to 17.4% in the first quarter of fiscal 2025, down from 18.6% in the first quarter of fiscal 2024. The decrease in consolidated SG&A expenses as a percentage of net sales principally reflects efficiencies realized from the previously mentioned net sales growth.
Previous wording
Our consolidated operating income increased by 45% to a record $216.4 million in the third quarter of fiscal 2024, up from $149.4 million in the third quarter of fiscal 2023. The increase in consolidated operating income principally reflects a $64.4 million increase (a 72% increase) to a record $153.6 million in operating income of the FSG and a $1.6 million increase (a 2% increase) to $75.8 million in operating income of the ETG. The increase in operating income of the FSG principally reflects the previously mentioned net sales growth and improved gross profit margin, partially offset by a $12.5 million increase in intangible asset amortization expense. The increase in operating income of the ETG principally reflects the previously mentioned improved gross profit margin, partially offset by a lower level of SG&A efficiencies.
Current wording
Our consolidated operating income increased by 26% to a record $226.8 million in the first quarter of fiscal 2025, up from $180.2 million in the first quarter of fiscal 2024. The increase in consolidated operating income principally reflects a $30.0 million increase (a 22% increase) to a record $166.1 million in operating income of the FSG and a $21.1 million increase (a 38% increase) to $76.5 million in operating income of the ETG. The increase in operating income of the FSG and ETG principally reflects the previously mentioned net sales growth, SG&A efficiencies realized from the net sales growth, and the improved gross profit margin at each operating segment.
Previous wording
Our consolidated operating income as a percentage of net sales was 21.8% in the third quarter of fiscal 2024, up from 20.7% in the third quarter of fiscal 2023. The increase in consolidated operating income as a percentage of net sales principally reflects an increase in the ETG's operating income as a percentage of net sales to 23.5% in the third quarter of fiscal 2024, up from 22.8% in the third quarter of fiscal 2023 and an increase in the FSG’s operating income as a percentage of net sales to 22.5% in the third quarter of fiscal 2024, up from 22.0% in the third quarter of fiscal 2023. The increase in the ETG's operating income as a percentage of net sales principally reflects the previously mentioned improved gross profit margin, partially offset by a lower level of SG&A efficiencies. The increase in the FSG's operating income as a percentage of net sales principally reflects the previously mentioned improved gross profit margin and a .8% impact from lower acquisition costs, partially offset by a 1.3% impact from the previously mentioned higher intangible asset amortization expense.
Current wording
Our consolidated operating income as a percentage of net sales improved to 22.0% in the first quarter of fiscal 2025, up from 20.1% in the first quarter of fiscal 2024. The increase in consolidated operating income as a percentage of net sales principally reflects an increase in the ETG's operating income as a percentage of net sales to 23.1% in the first quarter of fiscal 2025, up from 19.3% in the first quarter of fiscal 2024 and an increase in the FSG’s operating income as a percentage of net sales to 23.3% in the first quarter of fiscal 2025, up from 22.0% in the first quarter of fiscal 2024. The increase in the ETG's operating income as a percentage of net sales principally reflects a 2.8% impact from lower SG&A expenses as a percentage of net sales, mainly due to the previously mentioned efficiencies realized from the net sales growth, as well as the previously mentioned improved gross profit margin. The increase in the FSG's operating income as a percentage of net sales principally reflects the previously mentioned improved gross profit margin and a .7% impact from a decrease in SG&A expenses as a percentage of net sales, primarily driven by the previously mentioned efficiencies.
Previous wording
Interest expense increased to $36.8 million in the third quarter of fiscal 2024, as compared to $12.1 million in the third quarter of fiscal 2023. The increase in interest expense was principally due to an increase in the amount of outstanding debt related to fiscal 2023 acquisitions.
Current wording
Interest expense decreased to $32.5 million in the first quarter of fiscal 2025, down from $38.6 million in the first quarter of fiscal 2024. The decrease in interest expense was principally due to a decrease in the amount of outstanding debt.
Previous wording
Other income in the third quarter of fiscal 2024 and 2023 was not material.
Current wording
Other income in the first quarter of fiscal 2025 and 2024 was not material.
Previous wording
Our effective tax rate decreased to 17.3% in the first nine months of fiscal 2024, down from 19.0% in the first nine months of fiscal 2023. The decrease in our effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2024. We recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2024 and 2023 of $13.6 million and $6.2 million, respectively. Additionally, the decrease in our effective tax rate reflects the prior year unfavorable impact of the portion of acquisition expenses that was not deductible for income tax purposes.
Current wording
Our effective tax rate decreased to 7.0% in the first quarter of fiscal 2025, down from 11.8% in the first quarter of fiscal 2024. The decrease in our effective tax rate principally reflects a larger tax benefit from stock option exercises recognized in the first quarter of fiscal 2025. We recognized a discrete tax benefit from stock option exercises in both the first quarter of fiscal 2025 and 2024 of $27.2 million and $13.6 million, respectively.
Previous wording
Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings Corp. and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $11.2 million in the third quarter of fiscal 2024, as compared to $10.7 million in the third quarter of fiscal 2023. The increase in net income attributable to noncontrolling interests principally reflects improved operating results of certain subsidiaries of the FSG and ETG in which noncontrolling interests are held.
Current wording
Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings Corp. and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $13.6 million in the first quarter of fiscal 2025, as compared to $10.8 million in the first quarter of fiscal 2024. The increase in net income attributable to noncontrolling interests principally reflects improved operating results of certain subsidiaries of the FSG and ETG in which noncontrolling interests are held.
Previous wording
Net income attributable to HEICO increased by 34% to a record $136.6 million, or $.97 per diluted share, in the third quarter of fiscal 2024, up from $102.0 million, or $.74 per diluted share, in the third quarter of fiscal 2023 principally reflecting the previously mentioned higher consolidated operating income, partially offset by the previously mentioned higher interest expense.
Current wording
Net income attributable to HEICO increased by 46% to a record $168.0 million, or $1.20 per diluted share, in the first quarter of fiscal 2025, up from $114.7 million, or $.82 per diluted share, in the first quarter of fiscal 2024 principally reflecting the previously mentioned higher consolidated operating income and lower effective tax rate.
Previous wording
Our principal uses of cash include acquisitions, capital expenditures, interest payments, cash dividends, distributions to noncontrolling interests and working capital needs. We continue to estimate fiscal 2024 capital expenditures to be approximately $60 to $65 million. We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility. The revolving credit facility and senior unsecured notes contain both financial and non-financial covenants. As of July 31, 2024, we were in compliance with all such covenants and our total debt to shareholders’ equity ratio was 62.8%.
Current wording
Our principal uses of cash include acquisitions, capital expenditures, interest payments, cash dividends, distributions to noncontrolling interests and working capital needs. We continue to anticipate fiscal 2025 capital expenditures to be approximately $65 to $70 million. We finance our activities primarily from our operating and financing activities, including borrowings under our revolving credit facility. The revolving credit facility and senior unsecured notes contain both financial and non-financial covenants. As of January 31, 2025, we were in compliance with all such covenants and our total debt to shareholders’ equity ratio was 61.8%.
Previous wording
Net cash provided by operating activities was $466.7 million in the first nine months of fiscal 2024 and consisted primarily of net income from consolidated operations of $408.2 million, depreciation and amortization expense of $130.6 million (a non-cash item), net changes of $39.9 million included in the "Other" caption (principally the receipt of advance deposits on certain long-term customer contracts), and net changes in other long-term liabilities and assets related to the HEICO Corporation Leadership Compensation Plan (the "LCP") of $19.6 million (principally participant deferrals and employer contributions), partially offset by a $133.0 million increase in net working capital. The increase in net working capital is inclusive of a $102.2 million increase in inventories to support an increase in consolidated backlog, a $15.3 million increase in accounts receivable from the previously mentioned higher net sales and the timing of collections, and a $14.8 million increase in prepaid expenses and other current assets.
Current wording
Net cash provided by operating activities was $203.0 million in the first quarter of fiscal 2025 and consisted primarily of net income from consolidated operations of $181.6 million, depreciation and amortization expense of $46.2 million (a non-cash item), net changes of $17.7 million included in the "Other" caption (principally the receipt of advance deposits on certain long-term customer contracts), and net changes in other long-term liabilities and assets related to the HEICO Corporation Leadership Compensation Plan (the "LCP") of $13.0 million (principally participant deferrals and employer contributions), partially offset by a $59.7 million increase in net working capital. The increase in net working capital is inclusive of a $63.9 million decrease in accrued expenses and other current liabilities mainly reflecting the payment of fiscal 2024 accrued performance-based compensation, and a $36.2 million increase in inventories to support an increase in consolidated backlog, partially offset by a $20.1 million decrease in accounts receivable resulting from the timing of collections, a $16.9 million increase in income taxes payable and a $10.4 million increase in trade accounts payable.
Previous wording
Net cash used in investing activities totaled $112.2 million in the first nine months of fiscal 2024 and related primarily to acquisitions of $55.2 million, capital expenditures of $42.2 million and LCP funding of $16.5 million. Further details regarding our fiscal 2024 acquisitions may be found in Note 2, Acquisitions, of the Notes to Condensed Consolidated Financial Statements.
Current wording
Net cash used in investing activities totaled $288.0 million in the first quarter of fiscal 2025 and related primarily to acquisitions of $254.8 million, capital expenditures of $17.3 million and LCP funding of $14.6 million. Further details regarding our fiscal 2025 acquisitions may be found in Note 2, Acquisitions, of the Notes to Condensed Consolidated Financial Statements.
Previous wording
Net cash used in financing activities in the first nine months of fiscal 2024 totaled $324.0 million. During the first nine months of fiscal 2024, we made $255.0 million of payments on our revolving credit facility, paid $29.1 million of cash dividends on our common stock, paid $26.6 million to acquire certain noncontrolling interests, and made $24.8 million of contingent consideration payments, $23.3 million of distributions to noncontrolling interests, and $13.9
Current wording
Net cash provided by financing activities in the first quarter of fiscal 2025 totaled $90.7 million. During the first quarter of fiscal 2025, we borrowed $145.0 million under our revolving credit facility, which was partially offset by $20.0 million in payments made on our revolving credit facility, $15.3 million of cash dividends paid on our common stock, $10.2 million of distributions to noncontrolling interests, $6.0 million of contingent consideration payments and $3.3 million of payments to acquire certain noncontrolling interests.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Other income in the first nine months of fiscal 2024 and 2023 was not material.
Previous report — wording carried elsewhere
Net income attributable to noncontrolling interests relates to the 20% noncontrolling interest held by Lufthansa Technik AG in HEICO Aerospace Holdings Corp. and the noncontrolling interests held by others in certain subsidiaries of the FSG and ETG. Net income attributable to noncontrolling interests was $33.8 million in the first nine months of fiscal 2024, as compared to $30.6 million in the first nine months of fiscal 2023. The increase in net income attributable to noncontrolling interests principally reflects improved operating results of certain subsidiaries of the FSG and ETG in which noncontrolling interests are held.
Previous report — wording carried elsewhere
Our consolidated net sales in the third quarter of fiscal 2024 increased by 37% to a record $992.2 million, up from net sales of $722.9 million in the third quarter of fiscal 2023. The increase in consolidated net sales principally reflects an increase of $276.6 million (a 68% increase) to a record $681.6 million in net sales of the FSG partially offset by a $3.7 million decrease (a 1% decrease) to $322.1 million in net sales of the ETG. The net sales increase in the FSG reflects $216.9 million contributed by fiscal 2023 and 2024 acquisitions as well as strong organic growth of 15%. The FSG's organic net sales growth reflects increased demand within its aftermarket replacement parts, specialty products, and repair and overhaul parts and services product lines resulting in net sales increases of $41.8 million, $13.9 million, and $4.1 million, respectively. The net sales decrease in the ETG principally reflects a 2% organic net sales decline mainly attributable to decreased demand for its other electronics and medical products resulting in net sales decreases of $22.8 million and $5.1 million, respectively, partially offset by increased demand for its defense, space, and aerospace products resulting in net sales increases of $12.1 million, $3.0 million, and $2.9 million, respectively. Although sales price changes were not a significant contributing factor to the change in net sales of the FSG and ETG in the third quarter of fiscal 2024, continued cost inflation may lead to higher sales prices during the remainder of fiscal 2024.
Previous report — wording carried elsewhere
Our consolidated gross profit margin improved to 39.2% in the third quarter of fiscal 2024, up from 38.6% in the third quarter of fiscal 2023, principally reflecting increases of 1.3% and 1.1% in the ETG's and FSG's gross profit margin, respectively. The increase in the ETG's gross profit margin principally reflects the previously mentioned increase in net sales of defense, aerospace, and space products, partially offset by the previously mentioned decrease in net sales of other electronics products. The increase in the FSG's gross profit margin principally reflects the previously mentioned higher net sales within our aftermarket replacement parts and repair and overhaul parts and services product lines. Total new product research and development expenses included within our consolidated cost of sales were $29.8 million in the third quarter of fiscal 2024, up from $25.4 million in the third quarter of fiscal 2023.
Previous report — wording carried elsewhere
Net Income Attributable to Noncontrolling Interests