HEICO Corp Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Victor, maybe if I could first start off with a question on ETG. The last couple of years, you've had a nice sequential improvement in margins from the fiscal third to the fourth quarter. Can you talk about maybe how we should think about margins in the segment this year considering there's clearly some recovery of part of what's been delayed with the normal seasonality -- seasonal benefit you get in the segment?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Just on that point, for the base business, I mean, depending upon where this year ends up, it's hard to say, but I think your margins have been running sort of that 29-ish percentage to maybe 29% to 30% range. Is there any reason in '23, excluding Exxelia, you don't get back to those levels?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Perfect. No, that's helpful. And if I could, just 1 for Eric. Eric, it's been a few calls now that you've called out sort of incremental opportunities as supply chains continue to stretch for new material into the aftermarket. I'm just curious, as you get these opportunities as they come up, how much opportunity is there for you to really sort of scale the PMA offerings in a particular year or time frame? Or maybe how long does it take to go from identifying an opportunity to perhaps having a product in the marketplace? I mean how quickly can you take advantage of this share opportunity considering the broader supply chain disruptions in the aerospace side?