OLATHE, Kan., March 17, 2014 /PRNewswire/ -- Butler National
Corporation (OTC QB: BUKS), a leader in the global market for
aircraft structural modification, maintenance, repair and overhaul
(MRO) and a recognized provider of management services in diverse
business groups, announces its financial results for the third
quarter and nine months ended January
31, 2014. In conjunction with the release, the Company
has scheduled a conference call Tuesday,
March 18, 2014 at 10:00 AM Central
Daylight Time.
What: Butler National Corporation Third Quarter Fiscal 2014
Financial Results Conference Call
When: Tuesday, March 18, 2014 -
10:00 AM Central Daylight
Time
How: Live via phone by dialing 800-624-7038. Code: Butler
National Corporation. Participants to the conference call should
call in at least 5 minutes prior to the start time. A replay
of the conference call will be archived on the Company's web
site.
Clark D. Stewart, President &
CEO, Butler National Corp., will be leading the call and discussing
results of the third quarter and nine months, the status of new and
existing orders, gaming activities and an outlook on the balance of
fiscal 2014.
Historical selected financial data related to all
operations:
|
Quarter Ended January
31
|
Nine Months Ended
January 31
|
|
(In
thousands)
|
(In
thousands)
|
|
2014
|
2013
|
2012
|
2014
|
2013
|
2012
|
Net Sales
|
$
11,193
|
$
11,000
|
$
13,734
|
$
33,753
|
$
38,005
|
$
40,021
|
Operating Income
(Loss)
|
18
|
(519)
|
1,568
|
(38)
|
1,465
|
3,621
|
Net Income
(Loss)
|
(219)
|
(755)
|
568
|
(853)
|
(373)
|
1,135
|
Total
Assets
|
41,115
|
44,321
|
39,438
|
41,115
|
44,321
|
39,438
|
Long-term
Obligations
|
7,665
|
9,676
|
10,832
|
7,665
|
9,676
|
10,832
|
Stockholders'
Equity
|
22,858
|
20,413
|
19,513
|
22,858
|
20,413
|
19,513
|
Weighted Average
Shares – Diluted
|
59,019
|
57,543
|
56,594
|
59,019
|
57,538
|
56,594
|
New Product Research
and Development Cost
|
526
|
471
|
429
|
1,569
|
1,268
|
1,208
|
|
|
|
|
|
|
|
|
Management Comments
"The fiscal quarter ending January 31,
2014 was an encouraging period for Butler National
Corporation. Revenue increased 2% to $11.2 million in the three months ended
January 31, 2014, as compared to
$11.0 million in the three months
ended January 31, 2013. The
quarter to quarter increase in revenue reflects a decrease in
professional services revenue (down 12%) and an increase in
aerospace products revenue (up 44%).
Professional services revenue was adversely impacted due to a
stoppage in the Boot Hill Casino motor coach program and issues
regarding supplier slot software updates. The motor coach
program has resumed and slot manufacturers are now starting to
supply software. We believe we will see the full impact in
fiscal year 2015.
The increase in aerospace products revenue was a result of an
increase in modification orders starting in mid-December and
continuing through the end of the quarter. We are
experiencing strong demand from international markets in the
modification business. Butler National Corporation is
continuing to work to drive growth in international markets,
including significant efforts in South
America, Europe,
Africa, and Asia.
The third quarter of fiscal 2014 resulted in a net loss of
$219,000 compared to a net loss of
$755,000 in the third quarter fiscal
2013. Butler National Corporation is working on returning to
and exceeding previous revenue levels by focusing on our margin
expansion initiatives, including efficiencies in our implementation
and operational processes and controlling general and
administrative expenses. In the first nine months of fiscal
2014, we have reduced total costs and expenses $2.7 million compared to the same period in
fiscal 2013.
During the three months ending January
31, 2014, we invested approximately $526,000 in projects focused on the development
and acquisition of new products. We feel this expenditure for
the design and development engineering, testing, and certification
of new products may help stabilize our long-term revenue and
enhance our profits.
We believe fiscal quarter-ended January
31, 2014 was a turning point for Butler National
Corporation. Aerospace products saw an increase in revenue
and customer deposits. We are encouraged by the recent
performance of professional services. The backlog continues
to increase. Our entire team is focused on executing our
numerous business development opportunities as well as increasing
revenue while managing costs. We believe we are positioned for the
future, focused on serving the needs of our customers and dedicated
to enhancing shareholder value," commented Clark D. Stewart, President of the
Company.
Business Segment Highlights
Professional Services:
Revenue from professional
services decreased 12% to $7.3
million in the three months ended January 31, 2014 to $8.3
million in the three months ended January 31, 2013. The decrease in professional
services revenue was driven by decreased revenue from Boot Hill
casino of $588,000 and all other
professional services of $407,000. Operating income from
professional services decreased to $106,000 in the three months ended January 31, 2014 from $246,000 in the three months ended January 31, 2013.
Aerospace Products:
Revenue increased 44% to
$3.9 million in the three months
ended January 31, 2014 compared to
$2.7 million in the three months
ended January 31, 2013.
Aerospace products had an operating loss of $88,000 in the three months ended January 31, 2014 compared to an operating loss of
$765,000 in the three months ended
January 31, 2013.
Backlog:
As of January 31,
2014 our backlog totaled approximately $10.1 million. The backlog includes firm,
pending, and contract orders, which may not be completed within the
next fiscal year. This is consistent with the industry in
which modifications services and related contracts may take several
months and sometimes years to complete. There can be no
assurance that all orders will be completed or that some may ever
commence.
Our Business:
Butler National Corporation operates in
the Aerospace and Services business segments. The Aerospace
segment focuses on the manufacturing of support systems for
"Classic" commercial and military aircraft including the Butler
National TSD for the Boeing 737 and 747 Classic aircraft, switching
equipment for Boeing McDonnell Douglas Aircraft, weapon control
systems for Boeing Helicopter and performance enhancement
structural modifications for Learjet, Cessna, Dassault and
Beechcraft business aircraft. Services include electronic
monitoring of water pumping stations, temporary employee services,
gaming services and administrative management services.
Forward-Looking Information:
The information set forth
above includes "forward-looking statements" as outlined in the
Private Securities Litigation Reform Act of 1995 and Section 21E of
the Securities Exchange Act of 1934. Words such as
"anticipate," "estimate," "expect," "project," "intend," "may,"
"plan," "predict," "believe," "should" and similar words or
expressions are intended to identify forward-looking
statements. Investors should not place undue reliance on
forward-looking statements, and the Company undertakes no
obligation to publicly update or revise any forward-looking
statements. All forward-looking statements reflect the
present expectation of future events of our management and are
subject to a number of important factors, risks, uncertainties and
assumptions that could cause actual results to differ materially
from those described in the forward-looking statements. These
factors and risks include, but are not limited to the Cautionary
Statements and Risk Factors, filed as Exhibit 99 and Section 1A to
the Company's Annual Report on Form 10-K, incorporated herein by
reference. Investors are specifically referred to such
Cautionary Statements and Risk Factors for discussion of factors,
which could affect the Company's operations, and forward-looking
statements contained herein.
FOR MORE INFORMATION, CONTACT:
David Drewitz, Public
Relations
david@creativeoptionscommunications.com
www.creativeoptionscommunications.com
Butler National
Corporation Investor Relations
|
Ph (972)
814-5723
Ph (913)
780-9595
|
THE WORLDWIDE WEB:
Please visit
www.butlernational.com for pictures of our products and
details about Butler National Corporation and its subsidiaries.
SOURCE Butler National Corporation