x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Kansas
|
|
41-0834293
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company T
|
Item 1
|
PAGE NO.
|
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Item 2
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Item 3
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Item 4
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Item 1
|
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Item 1A
|
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Item 2
|
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Item 3
|
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Item 4
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Item 5
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Item 6
|
||
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|
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|
|
January 31, 2014
|
April 30, 2013
|
||||||
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash
|
$
|
5,071
|
$
|
5,148
|
||||
Notes and accounts receivable
|
1,862
|
2,697
|
||||||
Income tax receivable
|
210
|
1,395
|
||||||
Inventories
|
||||||||
Raw materials
|
6,245
|
6,216
|
||||||
Work in process
|
2,134
|
1,048
|
||||||
Finished goods
|
151
|
240
|
||||||
Total inventory
|
8,530
|
7,504
|
||||||
Prepaid expenses and other current assets
|
767
|
829
|
||||||
Total current assets
|
16,440
|
17,573
|
||||||
|
||||||||
PROPERTY, PLANT AND EQUIPMENT:
|
||||||||
Land and building
|
4,044
|
4,027
|
||||||
Aircraft
|
6,723
|
6,723
|
||||||
Machinery and equipment
|
3,494
|
3,714
|
||||||
Office furniture and fixtures
|
6,451
|
6,358
|
||||||
Leasehold improvements
|
4,060
|
4,060
|
||||||
|
24,772
|
24,882
|
||||||
Accumulated depreciation
|
(11,404
|
)
|
(9,435
|
)
|
||||
Total property, plant and equipment
|
13,368
|
15,447
|
||||||
|
||||||||
SUPPLEMENTAL TYPE CERTIFICATES (net of amortization of $2,643 at January 31, 2014 and $2,604 at April 30, 2013)
|
1,976
|
2,014
|
||||||
|
||||||||
OTHER ASSETS:
|
||||||||
Deferred tax asset
|
1,727
|
1,303
|
||||||
Other assets (net of accumulated amortization of $2,191 at January 31, 2014 and $1,213 at April 30, 2013)
|
7,604
|
7,523
|
||||||
Total other assets
|
9,331
|
8,826
|
||||||
Total Assets
|
$
|
41,115
|
$
|
43,860
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Promissory notes
|
$
|
1,744
|
$
|
1,377
|
||||
Current maturities of long-term debt and capital lease obligations
|
4,263
|
4,551
|
||||||
Accounts payable
|
1,251
|
1,509
|
||||||
Customer deposits
|
1,080
|
193
|
||||||
Gaming facility mandated payment
|
1,009
|
1,337
|
||||||
Compensation and compensated absences
|
989
|
1,045
|
||||||
Other current liabilities
|
256
|
119
|
||||||
Total current liabilities
|
10,592
|
10,131
|
||||||
|
||||||||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, NET OF CURRENT MATURITIES:
|
7,665
|
10,155
|
||||||
Total liabilities
|
18,257
|
20,286
|
||||||
|
||||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock, par value $5:Authorized 50,000,000 shares, all classes Designated Classes A and B 200,000 shares $1,000 Class A, 9.8 %, cumulative if earned liquidation and redemption value $100, no shares issued and outstanding
|
-
|
-
|
||||||
$1,000 Class B, 6 %, convertible cumulative, liquidation and redemption value $1,000, no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, par value $.01: authorized 100,000,000 shares issued and outstanding 59,619,173 shares at January 31, 2014 and 59,619,173 shares at April 30, 2013
|
596
|
596
|
||||||
Capital contributed in excess of par
|
13,056
|
13,034
|
||||||
Treasury stock at cost, 600,000 shares
|
(732
|
)
|
(732
|
)
|
||||
Retained Earnings
|
7,168
|
8,022
|
||||||
Total stockholders' equity Butler National Corporation
|
20,088
|
20,920
|
||||||
Noncontrolling Interest in BHCMC, LLC
|
2,770
|
2,654
|
||||||
Total stockholders' equity
|
22,858
|
23,574
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
41,115
|
$
|
43,860
|
|
THREE MONTHS ENDED
January 31,
|
|||||||
|
2014
|
2013
|
||||||
REVENUE:
|
||||||||
Professional Services
|
$
|
7,333
|
$
|
8,328
|
||||
Aerospace Products
|
3,860
|
2,672
|
||||||
Total revenue
|
11,193
|
11,000
|
||||||
|
||||||||
COSTS AND EXPENSES:
|
||||||||
Cost of Professional Services
|
4,498
|
5,304
|
||||||
Cost of Aerospace Products
|
2,843
|
2,492
|
||||||
Marketing and advertising
|
868
|
784
|
||||||
Employee benefits
|
571
|
586
|
||||||
Depreciation and amortization
|
870
|
848
|
||||||
General, administrative and other
|
1,525
|
1,505
|
||||||
Total costs and expenses
|
11,175
|
11,519
|
||||||
|
||||||||
OPERATING INCOME (LOSS)
|
18
|
(519
|
)
|
|||||
|
||||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest expense
|
(348
|
)
|
(417
|
)
|
||||
Other income, net
|
2
|
-
|
||||||
Total other income (expense)
|
(346
|
)
|
(417
|
)
|
||||
|
||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
(328
|
)
|
(936
|
)
|
||||
|
||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
(101
|
)
|
(200
|
)
|
||||
|
||||||||
NET INCOME (LOSS)
|
(227
|
)
|
(736
|
)
|
||||
Net income attributable to noncontrolling interest in BHCMC, LLC
|
8
|
(19
|
)
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
|
$
|
(219
|
)
|
$
|
(755
|
)
|
||
|
||||||||
BASIC EARNINGS PER COMMON SHARE
|
$
|
0.00
|
$
|
(0.01
|
)
|
|||
|
||||||||
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
59,019,173
|
57,542,914
|
||||||
|
||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||
|
||||||||
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
59,019,173
|
57,542,914
|
|
NINE MONTHS ENDED
January 31, |
|||||||
|
2014
|
2013
|
||||||
REVENUE:
|
||||||||
Professional Services
|
$
|
23,934
|
$
|
27,305
|
||||
Aerospace Products
|
9,819
|
10,700
|
||||||
Total revenue
|
33,753
|
38,005
|
||||||
|
||||||||
COSTS AND EXPENSES:
|
||||||||
Cost of Professional Services
|
14,068
|
15,811
|
||||||
Cost of Aerospace Products
|
7,787
|
8,593
|
||||||
Marketing and advertising
|
3,185
|
2,901
|
||||||
Employee benefits
|
1,651
|
1,590
|
||||||
Depreciation and amortization
|
2,630
|
2,304
|
||||||
General, administrative and other
|
4,470
|
5,341
|
||||||
Total costs and expenses
|
33,791
|
36,540
|
||||||
|
||||||||
OPERATING INCOME (LOSS)
|
(38
|
)
|
1,465
|
|||||
|
||||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest expense
|
(1,100
|
)
|
(1,095
|
)
|
||||
Other income, net
|
42
|
10
|
||||||
Total other income (expense)
|
(1,058
|
)
|
(1,085
|
)
|
||||
|
||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
(1,096
|
)
|
380
|
|||||
|
||||||||
PROVISION (BENEFIT) FOR INCOME TAXES
|
(359
|
)
|
8
|
|||||
|
||||||||
NET INCOME (LOSS)
|
(737
|
)
|
372
|
|||||
Net income attributable to noncontrolling interest in BHCMC, LLC
|
(116
|
)
|
(745
|
)
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
|
$
|
(853
|
)
|
$
|
(373
|
)
|
||
|
||||||||
BASIC EARNINGS PER COMMON SHARE
|
$
|
0.00
|
$
|
(0.01
|
)
|
|||
|
||||||||
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
59,019,173
|
57,537,995
|
||||||
|
||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||
|
||||||||
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
59,019,173
|
57,537,995
|
|
NINE MONTHS ENDED
January 31,
|
|||||||
|
2014
|
2013
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$
|
(737
|
)
|
$
|
372
|
|||
Adjustments to reconcile cash flows from operating activities
|
||||||||
Depreciation and amortization
|
3,255
|
2,417
|
||||||
Stock issued for services
|
22
|
91
|
||||||
Stock options issued to employees and directors
|
-
|
107
|
||||||
Gain and loss on disposal of other assets
|
(36
|
)
|
-
|
|||||
|
||||||||
Changes in assets and liabilities
|
||||||||
Accounts receivable
|
974
|
1,621
|
||||||
Income tax receivable
|
1,185
|
-
|
||||||
Inventories
|
(1,116
|
)
|
(6
|
)
|
||||
Prepaid expenses and other current assets
|
62
|
(1,878
|
)
|
|||||
Accounts payable
|
(258
|
)
|
539
|
|||||
Customer deposits
|
887
|
(624
|
)
|
|||||
Accrued liabilities
|
(56
|
)
|
(199
|
)
|
||||
Gaming facility mandated payment
|
(328
|
)
|
777
|
|||||
Other liabilities
|
136
|
84
|
||||||
Deferred tax asset
|
(424
|
)
|
-
|
|||||
Other assets
|
12
|
-
|
||||||
Cash flows from operating activities
|
3,578
|
3,301
|
||||||
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital expenditures
|
(174
|
)
|
(6,724
|
)
|
||||
Cash flows from investing activities
|
(174
|
)
|
(6,724
|
)
|
||||
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Borrowings of promissory notes, net
|
-
|
3,416
|
||||||
Borrowings of promissory notes, long-term debt and capital lease obligations
|
(3,848
|
)
|
(2,361
|
)
|
||||
Repayments of promissory notes, long-term debt and capital lease obligations
|
(3,481
|
)
|
1,430
|
|||||
Cash flows from financing activities
|
(3,481
|
)
|
1,430
|
|||||
|
||||||||
NET DECREASE IN CASH
|
(77
|
)
|
(1,993
|
)
|
||||
|
||||||||
CASH, beginning of period
|
5,148
|
7,431
|
||||||
|
||||||||
CASH, end of period
|
$
|
5,071
|
$
|
5,438
|
||||
|
||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Interest paid
|
$
|
1,102
|
$
|
1,095
|
||||
Income taxes paid
|
$
|
-
|
$
|
783
|
||||
|
||||||||
NON CASH OPERATING ACTIVITY
|
||||||||
Non cash stock issued for services
|
$
|
22
|
$
|
91
|
||||
Non cash stock options issued to employees and directors
|
$
|
-
|
$
|
107
|
||||
Capitalized lease intangible assets
|
$
|
1,070
|
$
|
1,182
|
||||
Capitalized lease obligation
|
$
|
1,070
|
$
|
1,182
|
· | the impact of general economic trends on the Company's business; |
· | the deferral or termination of programs or contracts for convenience by customers; |
· | market acceptance of the Company's Aerospace Products and or other planned products or product enhancements; |
· | increased fuel and energy costs and the downward pressure on demand for our aircraft business; |
· | the ability to gain and maintain regulatory approval of existing products and services and receive regulatory approval of new businesses and products; |
· | the actions of regulatory, legislative, executive or judicial decisions of the federal, state or local level with regard to our business and the impact of any such actions; |
· | failure to retain/recruit key personnel; |
· | the availability of government funding; |
· | any delays in receiving components from third party suppliers; |
· | the competitive environment; |
· | the bankruptcy or insolvency of one or more key customers; |
· | new product offerings from competitors; |
· | protection of intellectual property rights; |
· | the ability to service the international market; |
· | acts of terrorism and war and other uncontrollable events; |
· | joint ventures and other arrangements; |
· | low priced penny-stock regulations; |
· | general governance features; |
· | United States and other country defense spending cuts; |
· | our estimated effective income tax rates; estimated tax benefits; and merits of our tax position |
· | potential future acquisitions; and |
· | other factors disclosed from time to time in the Company's filings with the Securities and Exchange Commission. |
(dollars in thousands)
|
Nine Months Ended
Jan. 31, 2014 |
Percent
of Total
Revenue
|
Nine
Months
Ended
Jan. 31, 2013
|
Percent
of Total
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Revenue:
|
||||||||||||||||||||
Professional Services
|
$
|
23,934
|
71
|
%
|
$
|
27,305
|
72
|
%
|
(12
|
)
%
|
||||||||||
Aerospace Products
|
9,819
|
29
|
%
|
10,700
|
28
|
%
|
(8
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Total revenue
|
33,753
|
100
|
%
|
38,005
|
100
|
%
|
(11
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||
Cost of Professional Services
|
14,068
|
42
|
%
|
15,811
|
42
|
%
|
(11
|
)
%
|
||||||||||||
Cost of Aerospace Products
|
7,787
|
23
|
%
|
8,593
|
23
|
%
|
(9
|
)
%
|
||||||||||||
Marketing and advertising
|
3,185
|
9
|
%
|
2,901
|
8
|
%
|
10
|
%
|
||||||||||||
Employee benefits
|
1,651
|
5
|
%
|
1,590
|
4
|
%
|
4
|
%
|
||||||||||||
Depreciation and amortization
|
2,630
|
8
|
%
|
2,304
|
6
|
%
|
14
|
%
|
||||||||||||
General, administrative and other
|
4,470
|
13
|
%
|
5,341
|
14
|
%
|
(16
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Total costs and expenses
|
33,791
|
100
|
%
|
36,540
|
97
|
%
|
(8
|
)
%
|
||||||||||||
Operating income (loss)
|
$
|
(38
|
)
|
0
|
%
|
$
|
1,465
|
3
|
%
|
(103
|
)
%
|
· | Professional Services derives its revenue from professional management services in the gaming industry through BNSC and BHCMC, licensed architectural services to the business community through BCS Design. Revenue from Professional Services decreased 12% to $23.9 million in the nine months ended January 31, 2014 from $27.3 million in the nine months ended January 31, 2013. |
· | Aerospace Products derives its revenue by system integration, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft. Aerospace Products revenue decreased 8% for the nine months to $9.8 million at January 31, 2014 compared to $10.7 million at January 31, 2013. |
(dollars in thousands)
|
Nine
Months
Ended
Jan. 31, 2014
|
Percent of
Revenue
|
Nine
Months
Ended
Jan. 31, 2013
|
Percent of
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Professional Services
|
||||||||||||||||||||
Revenue
|
||||||||||||||||||||
Boot Hill Casino
|
$
|
22,212
|
93
|
%
|
$
|
24,054
|
88
|
%
|
(8
|
)
%
|
||||||||||
Management/Professional Services
|
1,722
|
7
|
%
|
3,251
|
12
|
%
|
(47
|
)
%
|
||||||||||||
Revenue
|
23,934
|
100
|
%
|
27,305
|
100
|
%
|
(12
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Costs of Professional Services
|
14,068
|
59
|
%
|
15,811
|
58
|
%
|
(11
|
)
%
|
||||||||||||
Expenses
|
9,000
|
38
|
%
|
9,242
|
34
|
%
|
(3
|
)
%
|
||||||||||||
Total costs and expenses
|
23,068
|
97
|
%
|
25,053
|
92
|
%
|
(8
|
)
%
|
||||||||||||
Professional Services operating income before noncontrolling interest in BHCMC, LLC
|
$
|
866
|
3
|
%
|
$
|
2,252
|
8
|
%
|
(62
|
)
%
|
(dollars in thousands)
|
Nine
Months
Ended
Jan. 31, 2014
|
Percent of
Revenue
|
Nine
Months
Ended
Jan. 31, 2013
|
Percent of
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Aerospace Products
|
||||||||||||||||||||
Revenue
|
$
|
9,819
|
100
|
%
|
$
|
10,700
|
100
|
%
|
(8
|
)
%
|
||||||||||
|
||||||||||||||||||||
Costs of Aerospace Products
|
7,787
|
79
|
%
|
8,593
|
80
|
%
|
(9
|
)
%
|
||||||||||||
Expenses
|
2,936
|
30
|
%
|
2,894
|
27
|
%
|
1
|
%
|
||||||||||||
Total costs and expenses
|
10,723
|
109
|
%
|
11,487
|
107
|
%
|
(7
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Aerospace Products operating income (loss)
|
$
|
(904
|
)
|
(9
|
)
%
|
$
|
(787
|
)
|
(7
|
)
%
|
15
|
%
|
· | Revenue from Professional Services decreased 12% to $23.9 million for the nine months ended January 31, 2014, compared to $27.3 million for the nine months ended January 31, 2013. |
· | Costs decreased 11% in the nine months ended January 31, 2014 to $14.1 million compared to $15.8 million in the nine months ended January 31, 2013. Costs were 59% of segment total revenue in the nine months ended January 31, 2014, as compared to 58% of segment total revenue in the nine months ended January 31, 2013. The decrease in direct costs were a result of reductions of electronic gaming machines. |
· | Expenses decreased 3% in the nine months ended January 31, 2014 to $9.0 million compared to $9.2 million in the nine months ended January 31, 2013. Expenses were 38% of segment total revenue in the nine months ended January 31, 2014, as compared to 34% of segment total revenue in the nine months ended January 31, 2013. |
· | Revenue decreased 8% to $9.8 million in the nine months ended January 31, 2014 compared to $10.7 million in the nine months ended January 31, 2013. This decrease is attributable to reduced revenue of $1.1 million in the modification business. In an effort to offset decreased domestic military spending, we continue to invest in the development of STCs. These STCs are state of the art avionics, noise suppression and special mission products. We are aggressively marketing both domestically and internationally. |
· | Costs decreased by 9% in the nine months ended January 31, 2014 to $7.8 million compared to $8.6 million for the nine months ended January 31, 2013. Costs were 79% of segment total revenue in the nine months ended January 31, 2014, as compared to 80% of segment total revenue in the nine months ended January 31, 2013. |
· | Expenses increased 1% in the nine months ended January 31, 2014 at $2.9 million compared to $2.9 million in the nine months ended January 31, 2013. Expenses were 30% of segment total revenue in the nine months ended January 31, 2014, as compared to 27% of segment total revenue in the nine months ended January 31, 2013. |
(dollars in thousands)
|
Three
Months
Ended
Jan. 31, 2014
|
Percent
of Total
Revenue
|
Three
Months
Ended
Jan. 31, 2013
|
Percent
of Total
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Revenue:
|
||||||||||||||||||||
Professional Services
|
$
|
7,333
|
66
|
%
|
$
|
8,328
|
76
|
%
|
(12
|
)
%
|
||||||||||
Aerospace Products
|
3,860
|
34
|
%
|
2,672
|
24
|
%
|
44
|
%
|
||||||||||||
|
||||||||||||||||||||
Total revenue
|
11,193
|
100
|
%
|
11,000
|
100
|
%
|
2
|
%
|
||||||||||||
|
||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||
Cost of Professional Services
|
4,498
|
40
|
%
|
5,304
|
48
|
%
|
(15
|
)
%
|
||||||||||||
Cost of Aerospace Products
|
2,843
|
25
|
%
|
2,492
|
23
|
%
|
14
|
%
|
||||||||||||
Marketing and advertising
|
868
|
8
|
%
|
784
|
7
|
%
|
11
|
%
|
||||||||||||
Employee benefits
|
571
|
5
|
%
|
586
|
5
|
%
|
(3
|
)
%
|
||||||||||||
Depreciation and amortization
|
870
|
8
|
%
|
848
|
8
|
%
|
3
|
%
|
||||||||||||
General, administrative and other
|
1,525
|
14
|
%
|
1,505
|
14
|
%
|
1
|
%
|
||||||||||||
|
||||||||||||||||||||
Total costs and expenses
|
11,175
|
100
|
%
|
11,519
|
105
|
%
|
(3
|
)
%
|
||||||||||||
Operating income (loss)
|
$
|
18
|
0
|
%
|
$
|
(519
|
)
|
(5
|
)
%
|
103
|
%
|
· | Professional Services derives its revenue from professional management services in the gaming industry through BNSC and BHCMC, licensed architectural services to the business community through BCS Design. Revenue from Professional Services decreased 12% for the three months ended to $7.3 million at January 31, 2014, compared to $8.3 million at January 31, 2013. |
· | Aerospace Products derives its revenue by system integration, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft. Aerospace Products revenue increased 44% for the three months to $3.9 million at January 31, 2014 compared to $2.7 million at January 31, 2013. |
(dollars in thousands)
|
Three
Months
Ended
Jan. 31, 2014
|
Percent of
Revenue
|
Three
Months
Ended
Jan. 31, 2013
|
Percent of
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Professional Services
|
||||||||||||||||||||
Revenue
|
||||||||||||||||||||
Boot Hill Casino
|
$
|
6,882
|
94
|
%
|
$
|
7,470
|
90
|
%
|
(8
|
)
%
|
||||||||||
Management/Professional Services
|
451
|
6
|
%
|
858
|
10
|
%
|
(47
|
)
%
|
||||||||||||
Revenue
|
7,333
|
100
|
%
|
8,328
|
100
|
%
|
(12
|
)
%
|
||||||||||||
|
||||||||||||||||||||
Costs of Professional Services
|
4,498
|
61
|
%
|
5,304
|
64
|
%
|
(15
|
)
%
|
||||||||||||
Expenses
|
2,729
|
37
|
%
|
2,778
|
33
|
%
|
(2
|
)
%
|
||||||||||||
Total costs and expenses
|
7,227
|
98
|
%
|
8,082
|
97
|
%
|
(11
|
)
%
|
||||||||||||
Professional Services operating income (loss) before noncontrolling interest in BHCMC, LLC
|
$
|
106
|
2
|
%
|
$
|
246
|
3
|
%
|
(57
|
)
%
|
(dollars in thousands)
|
Three
Months
Ended
Jan. 31, 2014
|
Percent of
Revenue
|
Three
Months
Ended
Jan. 31, 2013
|
Percent of
Revenue
|
Percent
Change
2013-2014
|
|||||||||||||||
Aerospace Products
|
||||||||||||||||||||
Revenue
|
$
|
3,860
|
100
|
%
|
$
|
2,672
|
100
|
%
|
44
|
%
|
||||||||||
|
||||||||||||||||||||
Costs of Aerospace Products
|
2,843
|
74
|
%
|
2,492
|
93
|
%
|
14
|
%
|
||||||||||||
Expenses
|
1,105
|
29
|
%
|
945
|
35
|
%
|
17
|
%
|
||||||||||||
Total costs and expenses
|
3,948
|
103
|
%
|
3,437
|
128
|
%
|
15
|
%
|
||||||||||||
|
||||||||||||||||||||
Aerospace Products operating income (loss)
|
$
|
(88
|
)
|
(3
|
)
%
|
$
|
(765
|
)
|
(28
|
)
%
|
88
|
%
|
· | Revenue from Professional Services decreased 12% to $7.3 million for the three months ended January 31, 2014, compared to $8.3 million for the three months ended January 31, 2013. |
· | Costs decreased 15% in the three months ended January 31, 2014 to $4.5 million compared to $5.3 million in the three months ended January 31, 2013. Costs were 61% of segment total revenue in the three months ended January 31, 2014, as compared to 64% of segment total revenue in the three months ended January 31, 2013. The decrease in direct costs was a result of reductions of electronic gaming machines. |
· | Expenses decreased 2% in the three months ended January 31, 2014 to $2,729 compared to $2,778 in the three months ended January 31, 2013. Expenses were 37% of segment total revenue in the three months ended January 31, 2014, as compared to 33% of segment total revenue in the three months ended January 31, 2013. |
· | 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. This increase is attributable to increased revenue of $1.1 million in the modification business. In an effort to offset decreased domestic military spending, we continue to invest in the development of several STCs. These STCs are state of the art avionics, noise suppression and special mission products. We are aggressively marketing both domestically and internationally. |
· | Costs increased by 14% in the three months ended January 31, 2014 to $2.8 million compared to $2.5 million for the three months ended January 31, 2013. Costs were 74% of segment total revenue in the three months ended January 31, 2014, as compared to 93% of segment total revenue in the three months ended January 31, 2013. |
· | Expenses increased 17% in the three months ended January 31, 2014 at $1,105 compared to $945 in the three months ended January 31, 2013. Expenses were 29% of segment total revenue in the three months ended January 31, 2014, as compared to 35% of segment total revenue in the three months ended January 31, 2013.. |
Membership Interest
|
|
Members of
Board of Managers
|
|
|
Equity Ownership
|
|
|
Income
(Loss) Sharing
|
|
|||
Class A
|
|
|
3
|
|
|
|
20
|
%
|
|
|
40
|
%
|
Class B
|
|
|
4
|
|
|
|
80
|
%
|
|
|
60
|
%
|
|
3.1
|
Articles of Incorporation, as amended and restated are incorporated by reference to Exhibit 3.1 of our Form DEF 14A filed on December 26, 2001.
|
|
|
|
|
3.2
|
Bylaws, as amended, are approved by the Board of Directors on March 12, 2013.
|
|
|
|
|
31.1
|
Certificate of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
|
|
31.2
|
Certificate of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
|
|
32.1
|
Certifications of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
32.2
|
Certifications of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
99
|
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995, are incorporated by reference to Exhibit 99 of the Form 10-K for the fiscal year ended April 30, 2013.
|
|
101
|
The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2014, formatted in XBRL (Extensible Business Reporting Language) includes: (i) Condensed Consolidated Balance Sheets as of January 31, 2014 and April 30, 2013, (ii) Condensed Consolidated Statements of Operations for the three months ended January 31, 2014 and nine months ended January 31, 2014, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended January 31, 2014 and 2013, and (iv) the Notes to Consolidated Financial Statements, with detail tagging. In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise this Exhibit 101 shall be deemed "furnished" and not "filed."
|
|
BUTLER NATIONAL CORPORATION
|
|
(Registrant)
|
|
|
March 17, 2014
|
/s/ Clark D. Stewart
|
Date
|
Clark D. Stewart
|
|
(President and Chief Executive Officer)
|
|
|
March 17, 2014
|
/s/ Craig D. Stewart
|
Date
|
Craig D. Stewart
|
|
(Chief Financial Officer)
|
Exhibit
Number
|
Description of Exhibit
|
10.1
|
Lease between Butler National Service Corporation and BHC Development, L.C., dated April 30, 2009
|
|
|
10.2
|
Legal Description Lot 1 in a future replat of Mariah Center
|
|
|
10.3
|
Legal Description Lot 2 in a future replat of Mariah Center
|
|
|
3.1
|
Articles of Incorporation, as amended and restated are incorporated by reference to Exhibit 3.1 of our Form DEF 14A filed on December 26, 2001.
|
|
|
3.2
|
Bylaws, as amended, are incorporated by reference to Exhibit A of this Form 10Q filed on
March 12, 2013.
|
|
|
31.1
|
Certificate of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
31.2
|
Certificate of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a).
|
|
|
32.1
|
Certifications of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2
|
Certifications of Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
99
|
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995, are incorporated by reference to Exhibit 99 of the Form 10-K for the fiscal year ended April 30, 2013.
|
|
|
101
|
The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2014, formatted in XBRL (Extensible Business Reporting Language) includes: (i) Condensed Consolidated Balance Sheets as of January 31, 2014 and April 30, 2013, (ii) Condensed Consolidated Statements of Operations for the three months ended January 31, 2014 and 2013, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended January 31, 2014 and 2013, and (iv) the Notes to Consolidated Financial Statements, with detail tagging. In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise this Exhibit 101 shall be deemed "furnished" and not "filed."
|
1. | I have reviewed this quarterly report on Form 10-Q ended January 31, 2014 of Butler National Corporation. |
2. | Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
Date: March 17, 2014
|
/s/Clark D. Stewart
|
|
|
Clark D. Stewart
|
|
|
President and Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q ended January 31, 2014 of Butler National Corporation. |
2. | Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
Date: March 17, 2014
|
/s/ Craig D. Stewart
|
|
|
Craig D. Stewart
|
|
|
Chief Financial Officer
|
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/Clark D. Stewart
|
|
|
Clark D. Stewart
|
|
|
President and Chief Executive Officer
|
|
|
Butler National Corporation
|
|
|
March 17, 2014
|
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Craig D. Stewart
|
|
|
Craig D. Stewart
|
|
|
Chief Financial Officer
|
|
|
Butler National Corporation
|
|
|
March 17, 2014
|
Borrowings
|
9 Months Ended |
---|---|
Jan. 31, 2014
|
|
Borrowings [Abstract] | |
Borrowings | 4. Borrowings: At January 31, 2014, the Company was utilizing three lines of credit totaling $4.0 million. The unused line at January 31, 2014 was $2.3 million. During the current year these funds were primarily used for the purchase of inventory and aircraft modification STC development for the modifications and avionics operations. Our $1.0 million line of credit has been extended to August 2014. Our $2.5 million line of credit matures April 2015. Our $0.5 million line of credit matures June 2015. The lines of credit are collateralized by the first and second positions on all assets of the Company. At January 31, 2014, there were several notes collateralized by aircraft security agreements totaling $1,370. These notes were used for the purchase and modifications of these collateralized aircraft and Kings Avionics, Inc. There are three notes at a bank totaling $1,493 for real estate located in Olathe, Kansas and Tempe, Arizona. The due date for these notes is March 2019 and August 2019. One note totaling $323 remain for real estate purchased in November 2007 and June 2009 in Dodge City, Kansas. BHCMC entered into an obligation with Konami Gaming Inc. effective August 1, 2012 in the amount of $1,733. The purchase of the gaming system was installed at Boot Hill Casino in mid-August and has a current balance of $518. The Kansas Lottery acquired additional gaming machines. BHCMC, as manager under the management contract with the State of Kansas, was required to remit payment for the gaming equipment. The balance of this financed payable is $1,145. We are not in default of any of our notes as of January 31, 2014. We believe that our current banks will provide the necessary capital for our business operations. However, we continue to maintain contact with other banks that have an interest in funding our working capital needs to continue our growth in operations in 2014 and beyond. |