OLATHE, Kan.,
March 15, 2012
/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 third quarter and
nine months ended January 31, 2012.
In conjunction with the release, the Company has scheduled a
conference call Monday, March 19,
2012 at 10:00 AM Central Daylight
Time.
What: Butler National Corporation Third Quarter Fiscal
2012 Financial Results Conference Call
When: Monday, March 19,
2012 - 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 2012.
Historical selected financial data related to all
operations:
|
|
|
Quarter Ended January 31
|
Nine
Months Ended January 31
|
|
|
|
(In
thousands)
|
(In
thousands)
|
|
|
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|
|
Net
Sales
|
$
13,754
|
$
12,859
|
$
8,924
|
$
40,022
|
$
33,422
|
$
19,403
|
|
|
Operating
Income
|
1,568
|
1,514
|
977
|
3,621
|
2,230
|
2,288
|
|
|
Net
Income
|
568
|
867
|
642
|
1,135
|
1,228
|
1,379
|
|
|
Total
Assets
|
39,438
|
29,791
|
27,772
|
39,438
|
29,791
|
27,772
|
|
|
Long-term
Obligations
|
10,832
|
4,314
|
4,854
|
10,832
|
4,314
|
4,854
|
|
|
Stockholders' Equity - BNC
|
19,513
|
17,651
|
14,597
|
19,513
|
17,651
|
14,597
|
|
|
Weighted
Average Shares – Diluted
|
56,594
|
56,267
|
55,790
|
56,594
|
56,196
|
55,790
|
|
|
New
Product Research and Development Cost
|
429
|
400
|
388
|
1,208
|
1,218
|
1,346
|
|
Management
Comments
"Our revenue for the fiscal quarter-ended January 31, 2012, increased 7% to $13.7 million compared to $12.9 million for the fiscal quarter-ended
January 31, 2011. Net income for the
third quarter is $568,000 compared
with a net income of $867,000 for the
same period in fiscal 2011.
While the Aircraft Modification and Avionics segments may
experience volatility in revenue in any given quarter, our overall
business year-to-date is strong. Revenues for the nine months ended
January 31, 2012 increased 20% to
$40.0 million compared to
$33.4 million for the nine months
ended January 31, 2012.
Avionics continues to improve both revenue and operating
profit compared to the previous two quarters of this fiscal year.
Revenue increased to $1.4
million with an operating profit of $162,000. Revenue was $641,000 and $1.0
million with operating loss of $338,000 and $162,000, respectively, in the first two quarters
of the current fiscal year. We are making in person sales
calls on potential customers in our expanded market areas and
taking steps to improve sales and profit performance in our
avionics business. First, we are working to close outstanding sales
opportunities. Second, we are nearing completion of STC approval of
state-of-the-art avionics equipment in Part 25 airplanes.
Third, we are planning to launch new products associated with the
modernization of the JET autopilot boards based on the Supplemental
Type Certificate announced on June 9,
2011. Worldwide there are more than 300 Lear 20 Series
airplanes that would benefit from this modernization with a
substantial market in Africa,
Mexico and South America. Fourth, we are expanding our
sales resources and cross-sales activities related to the avionics
business. Finally, we are beginning to implement a restructuring
plan for the organizations of the Avionics business to bring costs
in-line with revenues. Changes are being implemented to improve
performance.
Boot Hill Casino & Resort finished the quarter with a
35% year-over-year revenue increase and an operating profit of
$1.4 million compared with an
operating profit of $73,000 in the
same period in fiscal 2011. The increase in operating profit was a
result of increased revenue, reduced equipment expenses and more
efficient operations.
During the three months ending January 31, 2012, we invested approximately
$429,000 toward research and
development. We feel this expenditure for the design and
development engineering, testing, and certification of new products
may stabilize our long-term revenues and enhance our
profits.
Our total assets and liabilities increased by approximate
$7.5 million during this quarter.
Please see Note 5 to the Financial Statements in Form 10-Q for the
quarter ended January 31, 2012, which
describes the recording of intangible assets and the related
capital lease liability related to the payment for costs associated
with the BHCMC Privilege Fee and other gaming support equipment and
software systems.
We continue to move confidently throughout fiscal year
2012, planning to build on our success. We believe we are well
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
Aircraft Modifications:
Revenue from Aircraft Modifications segment
for the three months ended January 31,
2012, was $2.8 million, a
decrease of 31% from the three months ended January 31, 2011 with revenue of $4.0 million. The modifications segment had
an operating profit of $272,000 in
the three months ended January 31,
2012, and an operating profit of $1.5
million in the three months ended January 31, 2011.
During the past few years we have seen a significant
increase in aircraft camera modification. As the global
economy grows and becomes more developed, many governments,
businesses, corporations, and high-net worth individuals worldwide
may elect to purchase, update, and modify business aircraft.
An increased business aircraft ownership positively impacts our
aircraft modification revenues. We continue our efforts to
deliver year-over-year growth in the Aircraft Modification
segment.
Avionics:
Revenue from Avionics segment for the three
months ended January 31, 2012, was
$1.4 million a decrease of 19% from
the three months ended January 31,
2011 with revenue of $1.8
million. The avionics segment had an operating profit
of $162,000 in the three months ended
January 31, 2012, and an operating
profit of $214,000 for the three
months ended January 31, 2011.
Many economic and political uncertainties can impact the avionics
products line.
Monitoring Services:
Revenue in the Monitoring Services Segment for
the three months ended January 31,
2012, was $381,000, an
increase of 0.5% from the three months ended January 31, 2011 with revenue of $379,000. The monitoring services segment
had an operating profit of $45,000 in
the three months ended January 31,
2012, and an operating profit of $77,000 for the three months ended January 31, 2011, a decrease of 41%.
Corporate/Professional Services Including Gaming
Operations:
Services in this segment include the
architectural services of BCS Design, Inc., activities related to
gaming and other real estate development, on-site contract
management of gaming establishments, and engineering consulting
services.
Revenue from projects related to architectural services
for the three months ended January 31,
2012, was $407,000, an
increase of 131% from the three months ended January 31, 2011 with revenue of $176,000. The architectural services had an
operating profit of $41,000 in the
three months ended January 31, 2012,
and an operating loss of $116,000 for
the three months ended January 31,
2011.
Revenue related to on site contract management of gaming
establishments and real estate development, for the three months
ended January 31, 2012 was
$627,000 compared to $511,000 for the three months ended January 31, 2011, an increase of 23%. The
management services related to gaming had an operating profit of
$164,000 in the three months ended
January 31, 2012, and an operating
profit of $222,000 for the three
months ended January 31,
2011.
Revenue from Boot Hill Casino and Resort for the three
months ended January 31, 2012 was
$11.6 million compared to
$10.5 million in the three months
ended January 31, 2011.
Mandated fees, taxes and distributions reduced gross revenue by
$3.5 million leaving net revenue to
BHCMC, LLC of $8.1 million for the
three months ended January 31, 2012
compared to $6.0 million for the
three months ended January 31,
2011. Net income before taxes and Non-controlling Interest in
BHCMC, LLC was $1.4 million in the
three months ended January 31, 2012
compared to a profit of $73,000 in
the three months ended January 31,
2011.
Backlog:
As of January 31,
2012, our backlog totaled $6.3
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:
|
|
Reign
Strategy and Investment Group
|
Ph (914)
479-9060
|
Lou Albert
Rodriguez
|
|
lou.albert@reigninvestment.com
|
|
www.reigninvestment.com
|
|
|
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Jim
Drewitz, Public Relations
|
Ph (830)
669-2466
|
jim@jdcreativeoptions.com
|
|
www.jdcreativeoptions.com
|
|
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Butler
National Corporation Investor Relations
|
Ph (214)
498-7775
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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