OLATHE,
Kan., July 29, 2014
/PRNewswire/ -- Butler National Corporation (OTC QB: BUKS), a
leader in the growing 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 fourth quarter
fiscal 2014 and year ended April 30,
2014. In conjunction with the release, the Company has
scheduled a conference call Thursday, July
31, 2014 at 9:00 AM Central Daylight
Time.
What: Butler National Corporation Fourth Quarter and
Fiscal Year-End Results Conference Call
When: Thursday, July 31, 2014 -
9:00AM 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.
Clark Stewart, President
& CEO, Butler National Corporation, will be leading the call
and discussing results of the fourth quarter and fiscal year-end
financial results, the status of existing and new business, and an
outlook for fiscal 2015.
Historical
selected financial data related to all operations:
|
|
Year Ended April
30
|
Quarter Ended April 30
|
|
(In thousands except
per share data)
|
(In thousands except per share data)
|
|
2014
|
2013
|
2012
|
2014
|
2013
|
2012
|
Net
Revenue
|
$ 47,271
|
$ 49,152
|
$ 52,719
|
$ 14,632
|
$ 12,326
|
$ 13,938
|
Operating
Income
|
1,921
|
1,503
|
5,486
|
1,958
|
38
|
1,864
|
Net Income
(Loss)
|
112
|
(148)
|
1,900
|
965
|
225
|
765
|
Total
Assets
|
41,678
|
43,860
|
40,562
|
41,678
|
43,860
|
40,562
|
Long-term
Obligations
|
6,820
|
10,155
|
8,678
|
6,820
|
10,155
|
8,678
|
Stockholders'
Equity
|
24,354
|
23,574
|
22,604
|
24,354
|
23,574
|
22,604
|
Weighted Average
Shares –
Diluted
|
60,893
|
59,015
|
56,596
|
60,893
|
59,015
|
57,194
|
Diluted Earnings per
Share
|
0.00
|
0.00
|
0.03
|
0.02
|
0.00
|
0.01
|
New Product Research
and
Development Cost
|
1,765
|
1,755
|
1,652
|
196
|
487
|
444
|
Management Comments:
"Fiscal 2014 was a challenging period for Butler National
Corporation. Following three difficult quarters, Butler National
Corporation rebounded with a strong fourth quarter heading into
fiscal year 2015. Revenue decreased 4% to $47.3 million in fiscal 2014, as compared to
$49.2 million in fiscal 2013.
Professional Services revenue decreased (down 13%), but Aerospace
Products increased 19% primarily due to a strong fourth
quarter. Butler National Corporation continues to drive
growth in international markets and through the development of new
supplemental type certificates. This includes significant
efforts in South America,
Europe, Africa, and Asia.
"Fiscal 2014 net income was $112,000 compared to a net loss of $148,000 in fiscal 2013. The increase in
net income was primarily due to our margin expansion
initiatives. Fiscal 2014 operating margin was 4% compared to
a 3% in fiscal 2013. The margin expansion initiatives include
efficiencies in our implementation and operational processes and
controlling general and administrative expenses.
"The fourth quarter of fiscal 2014 resulted in the highest
quarterly revenue in the past three fiscal years. Revenue
increased 19% to $14.6 million in
fourth quarter fiscal 2014, as compared to $12.3 million in fourth quarter fiscal
2013. The fourth quarter of fiscal 2014 resulted in a net
income of $965,000 compared to a net
income of $225,000 in fourth quarter
fiscal 2013. This was driven by a strong demand in Aerospace
Products.
"During fiscal 2014, we invested approximately
$1.8 million in projects focused on
product development of new products. We feel these
expenditures for the design and development engineering, testing,
and certification of new products may help stabilize our long-term
revenue and enhance our profits.
"This is an exciting time for Butler National Corporation.
Management and all employees are focused on the execution of
our numerous business development opportunities as well as
increasing revenue while managing costs. We believe we are
positioned for the future as we focus on serving the needs of our
customers and enhancing shareholder value," commented Clark D. Stewart, President of the
Company.
Business Segment
Highlights
Professional Services:
Revenue from
Professional Services decreased 13% to $31.0
million in fiscal 2014 from $35.5
million in fiscal 2013. The decrease in Professional
Services revenue was driven by decreased revenue in gaming
activities of $2.6 million and other
management and Professional Services of $1.9
million. There was a $1.3
million decrease in revenue from monitoring services due to
the sale of Butler National Services, Inc. Costs decreased
11% in fiscal 2014 to $18.8 million
compared to $21.1 million in fiscal
2013. The decrease in direct costs was a result of reductions
in the number of electronic gaming machines. Expenses
decreased 9% in fiscal 2014 to $10.4
million compared to $11.4
million fiscal 2013. Operating income from
Professional Services decreased 39% to $1.8
million in fiscal 2014 from $3.0
million in fiscal 2013.
Aerospace Products:
Revenue
increased 19% to $16.2 million in
fiscal 2014 compared to $13.6 million
in fiscal 2013. This increase is attributable to increased
revenue of $2.3 million related to
aircraft modifications. In an effort to offset decreased
domestic military spending, the Company has invested in the
development of several supplemental type certificates (STCs).
These STCs involve state-of-the-art avionics. We are
aggressively marketing these STCs both domestically and
internationally. Costs increased 6% to $12.1 million in fiscal 2014 compared to
$11.5 million in fiscal 2013.
Costs were 74% of segment total revenue in fiscal 2014, as compared
to 84% of segment total revenue in fiscal 2013. Expenses
increased 10% in fiscal 2014 to $4.0
million compared to $3.7
million in fiscal 2013. Expenses were 25% of segment
total revenue in fiscal 2014, compared to 27% of segment total
revenue in fiscal 2013. Aerospace Products had an operating
income of $103,000 in fiscal 2014
compared to an operating loss of $1.5
million in fiscal 2013.
Costs related to Professional Services and Aerospace
Products include the cost of engineering, labor, materials,
equipment utilization, control systems, security and
occupancy. Expenses related to Professional Services and
Aerospace Products include marketing and advertising, employee
benefits, depreciation and amortization, general and administrative
and other expenses.
Backlog:
As of April 30, 2014, our backlog totaled approximately
$5.6 million. The backlog
includes firm, pending, and contract orders, which may not be
completed within the next fiscal year. As of July 4, 2014, our backlog totaled approximately
$5.0 million. This is
consistent with the industry in which modification 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 temporary
employee services, gaming services and administrative management
services.
Forward-Looking Information:
Statements made in this report, filed with the Securities
and Exchange Commission, communications to stockholders, press
releases, and oral statements made by representatives of the
Company that are not historical in nature, or that state the
Company or management intentions, hopes, beliefs, expectations or
predictions of the future, may constitute "forward-looking
statements" within the meaning of Section 21E of the Securities and
Exchange Act of 1934, as amended (the "Exchange Act").
Forward-looking statements can often be identified by the use of
forward-looking terminology, such as "could," "should," "will,"
"intended," "continue," "believe," "may," "expect," "hope,"
"anticipate," "goal," "forecast," "plan," "guidance" or "estimate"
or the negative of these words, variations thereof or similar
expressions. Forward-looking statements are not guarantees of
future performance or results. They involve risks, uncertainties,
and assumptions. It is important to note that any such performance
and actual results, financial condition or business, could differ
materially from those expressed in such forward-looking statements.
The forward looking statements in this report are only predictions
and actual events or results may differ materially. 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
|
Ph (972) 814-5723
|
david@creativeoptionscommunications.com
|
|
www.creativeoptionscommunications.com
|
|
Butler National Corporation Investor
Relations
|
Ph (913) 780-9595
|
THE WORLDWIDE WEB:
Please review
www.butlernational.com for pictures of our products and details
about Butler National Corporation and its
subsidiaries.
SOURCE Butler National Corporation