0000015847-15-000014.txt : 20150317 0000015847-15-000014.hdr.sgml : 20150317 20150317094347 ACCESSION NUMBER: 0000015847-15-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150131 FILED AS OF DATE: 20150317 DATE AS OF CHANGE: 20150317 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BUTLER NATIONAL CORP CENTRAL INDEX KEY: 0000015847 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 410834293 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-01678 FILM NUMBER: 15705049 BUSINESS ADDRESS: STREET 1: 19920 W 161ST ST CITY: OLATHE STATE: KS ZIP: 66062 BUSINESS PHONE: 8167809595 MAIL ADDRESS: STREET 1: 19920 W 161ST ST CITY: OLATHE STATE: KS ZIP: 66062 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL CONNECTOR CORP DATE OF NAME CHANGE: 19701009 10-Q 1 form10q.htm FY15 Q3 FORM 10Q  




UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________

FORM 10-Q
_______________________________
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2015

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _____________

Commission File Number 0-1678


BUTLER NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

Kansas
 
41-0834293
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

19920 West 161st Street, Olathe, Kansas 66062
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (913) 780-9595

Former name, former address and former fiscal year if changed since last report:
Not Applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days: Yes T No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files): Yes T No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company T

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):
Yes No T

The number of shares outstanding of the Registrant's Common Stock, $0.01 par value, as of March 6, 2015 was 61,493,092 shares.


 
BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

INDEX

PART I. FINANCIAL INFORMATION

Item 1
Financial Statements
PAGE NO.
     
 
Condensed Consolidated Balance Sheets – January 31, 2015 and April 30, 2014
3
     
 
Condensed Consolidated Statements of Operations - Three Months Ended January 31, 2015 and 2014
4
     
 
Condensed Consolidated Statements of Operations - Nine Months Ended January 31, 2015 and 2014
5
     
 
Condensed Consolidated Statements of Cash Flows - Nine Months Ended January 31, 2015 and 2014
6
     
 
Notes to Condensed Consolidated Financial Statements
7
     
Item 2
Management's Discussion and Analysis of Financial Condition and Results of Operations
8
     
Item 3
Quantitative and Qualitative Disclosures about Market Risk
19
     
Item 4
Controls and Procedures
19

PART II. OTHER INFORMATION

Item 1
Legal Proceedings
19
     
Item 1A
Risk Factors
20
     
Item 2
Unregistered Sales of Equity Securities and Use of Proceeds
20
     
Item 3
Defaults Upon Senior Securities
20
     
Item 4
Mine Safety Disclosures
20
     
Item 5
Other Information
20
     
Item 6
Exhibits
20
     
Signatures
21
   
Exhibit Index
22
2


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BUTLER NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of January 31, 2015 and April 30, 2014
(in thousands except per share data)
(unaudited)
 
 
January 31, 2015
 
 
April 30, 2014
 
ASSETS
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
Cash
 
$
5,052
 
 
$
6,261
 
Accounts receivable
 
 
2,456
 
 
 
3,109
 
Inventories
 
 
 
 
 
 
 
 
Raw materials
 
 
5,330
 
 
 
5,102
 
Work in process
 
 
2,205
 
 
 
1,090
 
Finished goods
 
 
144
 
 
 
144
 
Total inventory
 
 
7,679
 
 
 
6,336
 
Prepaid expenses and other current assets
 
 
1,171
 
 
 
825
 
Total current assets
 
 
16,358
 
 
 
16,531
 
 
 
 
 
 
 
 
 
 
PROPERTY, PLANT AND EQUIPMENT:
 
 
 
 
 
 
 
 
Land and building
 
 
4,071
 
 
 
4,044
 
Aircraft
 
 
7,300
 
 
 
6,723
 
Machinery and equipment
 
 
3,586
 
 
 
3,535
 
Office furniture and fixtures
 
 
6,648
 
 
 
6,447
 
Leasehold improvements
 
 
4,081
 
 
 
4,060
 
 
 
 
25,686
 
 
 
24,809
 
Accumulated depreciation
 
 
(13,996)
 
 
 
(12,140)
 
Total property, plant and equipment
 
 
11,690
 
 
 
12,669
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL TYPE CERTIFICATES (net of amortization of $2,953 at January 31, 2015 and $2,841 at April 30, 2014)
 
 
4,938
 
 
 
3,744
 
 
 
 
 
 
 
 
 
 
OTHER ASSETS:
 
 
 
 
 
 
 
 
Deferred tax asset
 
 
1,335
 
 
 
1,335
 
Other assets (net of accumulated amortization of $3,596 at January 31, 2015 and $2,520 at April 30, 2014)
 
 
7,312
 
 
 
7,399
 
Total other assets
 
 
8,647
 
 
 
8,734
 
Total assets
 
$
41,633
 
 
$
41,678
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
 
Promissory notes
 
$
1,502
 
 
$
1,757
 
Current maturities of long-term debts
 
 
3,627
 
 
 
3,908
 
Accounts payable
 
 
1,533
 
 
 
1,375
 
Customer deposits
 
 
2,192
 
 
 
982
 
Gaming facility mandated payment
 
 
930
 
 
 
1,267
 
Compensation and compensated absences
 
 
1,156
 
 
 
1,122
 
Other current liabilities
 
 
388
 
 
 
93
 
Total current liabilities
 
 
11,328
 
 
 
10,504
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT, NET OF CURRENT MATURITIES:
 
 
5,211
 
 
 
6,820
 
Total liabilities
 
 
16,539
 
 
 
17,324
 
 
 
 
 
 
 
 
 
 
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
$100 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 61,493,092 shares at January 31, 2015 and 61,493,092 shares at April 30, 2014
 
 
614
 
 
 
614
 
Capital contributed in excess of par
 
 
13,282
 
 
 
13,282
 
Treasury stock at cost, 600,000 shares
 
 
(732)
 
 
 
(732)
 
Retained earnings
 
 
8,483
 
 
 
8,134
 
Total stockholders' equity Butler National Corporation
 
 
21,647
 
 
 
21,298
 
Noncontrolling interest in BHCMC, LLC
 
 
3,447
 
 
 
3,056
 
Total stockholders' equity
 
 
25,094
 
 
 
24,354
 
Total liabilities and stockholders' equity
 
$
41,633
 
 
$
41,678
 

The accompanying notes are an integral part of these financial statements
3


BUTLER NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JANUARY 31, 2015 AND 2014
(in thousands, except per share data)
(unaudited)

 
 
THREE MONTHS ENDED
January 31,
 
 
 
2015
 
 
2014
 
REVENUE:
 
 
 
 
 
 
Professional Services
 
$
7,757
 
 
$
6,984
 
Aerospace Products
 
 
3,326
 
 
 
3,860
 
Total revenue
 
 
11,083
 
 
 
10,844
 
 
 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
Cost of Professional Services
 
 
4,715
 
 
 
4,498
 
Cost of Aerospace Products
 
 
2,477
 
 
 
2,843
 
Marketing and advertising
 
 
1,010
 
 
 
868
 
Employee benefits
 
 
487
 
 
 
571
 
Depreciation and amortization
 
 
693
 
 
 
870
 
General, administrative and other
 
 
1,166
 
 
 
1,176
 
Total costs and expenses
 
 
10,548
 
 
 
10,826
 
 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
535
 
 
 
18
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
Interest expense
 
 
(251)
 
 
 
(348)
 
Other income, net
 
 
5
 
 
 
2
 
Total other income (expense)
 
 
(246)
 
 
 
(346)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
 
289
 
 
 
(328)
 
 
 
 
 
 
 
 
 
 
PROVISION FOR INCOME TAXES
 
             
                 
PROVISION (BENEFIT) FOR INCOME TAXES
   
-
     
(101)
 
                 
NET INCOME (LOSS)
 
 
289
 
 
 
(227)
 
Net income attributable to noncontrolling interest in BHCMC, LLC
 
 
(221)
 
 
 
8
 
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
 
$
68
 
 
$
(219)
 
 
 
 
 
 
 
 
 
 
BASIC EARNINGS PER COMMON SHARE
 
$
0.00
 
 
$
0.00
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
 
 
60,893,092
 
 
 
59,019,173
 
 
 
 
 
 
 
 
 
 
DILUTED EARNINGS PER COMMON SHARE
 
$
0.00
 
 
$
0.00
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
 
 
60,893,092
 
 
 
59,019,173
 

The accompanying notes are an integral part of these financial statements
4


BUTLER NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED JANUARY 31, 2015 AND 2014
(in thousands, except per share data)
(unaudited)
 
 
NINE MONTHS ENDED
January 31,
 
 
 
2015
 
 
2014
 
REVENUE:
 
 
 
 
 
 
Professional Services
 
$
22,834
 
 
$
22,820
 
Aerospace Products
 
 
12,392
 
 
 
9,819
 
Total revenue
 
 
35,226
 
 
 
32,639
 
 
 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
Cost of Professional Services
 
 
13,886
 
 
 
14,068
 
Cost of Aerospace Products
 
 
9,150
 
 
 
7,787
 
Marketing and advertising
 
 
3,311
 
 
 
3,185
 
Employee benefits
 
 
1,352
 
 
 
1,651
 
Depreciation and amortization
 
 
2,244
 
 
 
2,630
 
General, administrative and other
 
 
3,575
 
 
 
3,356
 
Total costs and expenses
 
 
33,518
 
 
 
32,677
 
 
 
 
 
 
 
 
 
 
OPERATING INCOME (LOSS)
 
 
1,708
 
 
 
(38)
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
Interest expense
 
 
(843)
 
 
 
(1,100)
 
Other income, net
 
 
12
 
 
 
42
 
Total other income (expense)
 
 
(831)
 
 
 
(1,058)
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) BEFORE INCOME TAXES
 
 
877
 
 
 
(1,096)
 
 
 
 
 
 
 
 
 
 
PROVISION (BENEFIT) FOR INCOME TAXES
 
 
136
 
 
 
(359)
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
 
741
 
 
 
(737)
 
Net income attributable to noncontrolling interest in BHCMC, LLC
 
 
(391)
 
 
 
(116)
 
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
 
$
350
 
 
$
(853)
 
 
 
 
 
 
 
 
 
 
BASIC EARNINGS PER COMMON SHARE
 
$
0.01
 
 
$
(0.01)
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
 
 
60,893,092
 
 
 
59,019,173
 
 
 
 
 
 
 
 
 
 
DILUTED EARNINGS PER COMMON SHARE
 
$
0.01
 
 
$
(0.01)
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
 
 
60,893,092
 
 
 
59,019,173
 
The accompanying notes are an integral part of these financial statements
5


BUTLER NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 31, 2015 AND 2014
(in thousands)
(unaudited) 
 
 
NINE MONTHS ENDED
January 31,
 
 
 
2015
 
 
2014
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
Net income (loss)
 
$
741
 
 
$
(737)
 
Adjustments to reconcile cash flows from operating activities
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
3,044
 
 
 
3,255
 
Stock issued for services
 
 
-
 
 
 
22
 
Gain and loss on disposal of other assets
   
-
     
(36)
 
 
 
 
 
 
 
 
 
 
Changes in assets and liabilities
 
 
 
 
 
 
 
 
Accounts receivable
 
 
653
 
 
 
974
 
Income tax receivable
   
-
     
1,185
 
Inventories
 
 
(1,343)
 
 
 
(1,116)
 
Prepaid expenses and other current assets
 
 
(346)
 
 
 
62
 
Accounts payable
 
 
157
 
 
 
(258)
 
Customer deposits
 
 
1,210
 
 
 
887
 
Accrued liabilities
 
 
34
 
 
 
(56)
 
Gaming facility mandated payment
 
 
(337)
 
 
 
(328)
 
Other liabilities
 
 
295
 
 
 
136
 
Deferred tax asset
   
-
     
(424)
 
Other assets
   
(231)
     
12
 
Cash flows from operating activities
 
 
3,877
 
 
 
3,578
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
Capital expenditures
 
 
(2,183)
 
 
 
(174)
 
Cash flows from investing activities
 
 
(2,183)
 
 
 
(174)
 
 
 
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
Borrowings of promissory notes, net
 
 
(255)
 
 
 
367
 
Borrowings of long-term debt
   
704
     
-
 
Repayment of long-term debt
 
 
(3,352)
 
 
 
(3,848)
 
Cash flows from financing activities
 
 
(2,903)
 
 
 
(3,481)
 
 
 
 
 
 
 
 
 
 
NET DECREASE IN CASH
 
 
(1,209)
 
 
 
(77)
 
 
 
 
 
 
 
 
 
 
CASH, beginning of period
 
 
6,261
 
 
 
5,148
 
 
 
 
 
 
 
 
 
 
CASH, end of period
 
$
5,052
 
 
$
5,071
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 
 
 
 
 
 
 
 
Interest paid
 
$
843
 
 
$
1,102
 
Income taxes paid
 
$
-
 
 
$
-
 
 
 
 
 
 
 
 
 
 
NON CASH OPERATING ACTIVITY
 
 
   
 
 
   
Non cash stock for services
 
$
-
 
 
$
22
 
Intangible gaming equipment and notes
 
$
758
 
 
$
1,070
 

The accompanying notes are an integral part of these financial statements
6


BUTLER NATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)
(unaudited)

1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the annual report on Form 10-K for the fiscal year ended April 30, 2014. In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three and nine months ended January 31, 2015 are not indicative of the results of operations that may be expected for the fiscal year ended April 30, 2015.

Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. Financial amounts are in thousands of dollars except per share amounts.

2. Net Income (Loss) Per Share: The Company follows ASC 260 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net earnings (loss) per share are excluded. The number of potential common shares as of January 31, 2015 is 66,281,237.

3. Research and Development: We invested in research and development activities. The amount invested in the nine months ended January 31, 2015 and 2014 was $1,220 and $1,569 respectively.

4. Debt: At January 31, 2015, the Company was utilizing three lines of credit totaling $4.0 million. The unused line at January 31, 2015 was $2.5 million. These funds were primarily used for the purchase of inventory and aircraft modification Supplemental Type Certificate ("STC") development costs for modifications and avionics.

Our $1.0 million line of credit has been extended to August 2015. 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, 2015, there were several notes collateralized by aircraft security agreements totaling $1,560. These notes were used for the purchase and modifications of these collateralized aircraft and Butler Avionics, Inc.

There are three notes at a bank totaling $1,213 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 $309 remains for real estate purchased in Dodge City, Kansas and matures in June 2016.

One note collateralized by automobiles and equipment totals an additional $53 and matures in June 2016.

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 these financed payables are $635.

BHCMC, LLC ("BHCMC") entered into an agreement dated May 1, 2011, and amended via an addendum dated January 1, 2012, with BHC Investment Company, L.C. ("BHCI") for a total obligation of $7,423.  BHCI provided funds to BHCMC for the purchase of certain intangible items and gaming items related to the Boot Hill Casino.  Commencing on January 1, 2012, BHCMC is obligated to make a minimum payment to BHCI of $177 per month until September 30, 2017.  The remaining balance on the obligation is $3,511.

On August 24, 2012 BHCMC and BHCI entered into a second agreement of $2,500 for tenant improvements related to expansion of the Boot Hill Casino.  Commencing on November 1, 2012. BHCMC is obligated to make a minimum payment to BHCI of approximately $55 per month until November 30, 2017.  The remaining obligation is $1,557.

We are not in default of any of our notes as of January 31, 2015.
7

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 2015 and beyond.

5. Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $3,011 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417.  BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the Management Contract with the State of Kansas which will end in December 2024.  There is no assurance of the Management Contract renewal.  The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.  The JET intellectual property is being amortized over a period of 15 years.

6. Stock Options: At January 31, 2015 we had 7,262,064 outstanding stock options that were issued on December 31, 2010 all of which expire on December 31, 2015.

The exercise price for the incentive stock options is $0.49. The Board of Directors approved the issuance of incentive stock options on December 31, 2010 with the goals of increasing shareholder value, expanding the number of managers participating in the program, and increasing the percentage of compensation tied to share price performance.

The incentive stock options are allocated in three groups with two conditions for vesting. The first condition is stock price and the second condition is time. There are 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $0.92, and 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $1.41, and 2,420,688 options at $0.49 that may be exercised on or after December 31, 2013 if and when the share price reaches $1.90.

7.  Subsequent Events: The Company evaluated its January 31, 2015 financial statements for subsequent events through March 17, 2015, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the financial statements other than the items listed below.

BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas in June 2012.  After hearing the evidence, in March 2014 the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,424 in .  Bally appealed the verdict.  In February of 2015, BHCMC and BHC Development agreed to accept the sum of $1,324 in satisfaction of the judgment.  This amount was received in February 2015.  BHCMC and BHC Development have further agreed to return to Bally its system-related equipment.

Butler National Corporation, its management, or subsidiaries have no ownership interest in BHCI or BHCD.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THROUGHOUT THIS ITEM 2 ALL NON TABULAR FINANCIAL RESULTS ARE PRESENTED IN THOUSANDS OF U.S. DOLLARS EXCEPT WHERE MILLIONS OF DOLLARS IS INDICATED.

Forward Looking Statements

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. These risks, uncertainties and other factors include those set forth in Item 1A. (Risk Factors) of this Quarterly Report on Form 10-Q, and Item 1A. (Risk Factors) to the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2014 and reference to the Cautionary Statements filed by us as Exhibit 99 to the most recent Annual Report on Form 10-K, as well as the following factors:

8

· 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;
· changes in laws, including increased tax rates, smoking bans, regulations or accounting standards, third-party relations and approvals, and decisions, disciplines and fines of courts, regulators and governmental bodies;
· the ability to timely and cost-effectively integrate companies that we acquire into our operations;
· construction factors, including delays, increased costs of labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues;
· litigation outcomes and judicial and governmental body actions, including gaming legislative action, referenda, regulatory disciplinary actions and fines and taxation;
· access to insurance on reasonable terms for our assets;
· cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations;
· as a supplier of military and other equipment to the U.S. Government, we are subject to unusual risks, such as the right of the U.S. Government contractor to terminate contracts for convenience and to conduct audits and investigations of our operations and performance;
· our reputation and ability to do business may be impacted by the improper conduct of employees, vendors, agents or business partners;
· changes in legislation or government regulations or policies can have a significant impact on our results of operations; and
· other factors disclosed from time to time in the Company's filings with the Securities and Exchange Commission.

Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Cautionary Statements and Risk Factors, filed as Exhibit 99 and Item 1A. Risk Factors to the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2014 are incorporated herein by reference. Other unforeseen factors not identified herein could also have such an effect. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.

Management Overview

Management is focused on increasing long-term shareholder value from increased cash generation, earnings growth, and prudently managing capital expenditures. We plan to do this by continuing to drive increased revenues from product and service innovations, strategic acquisitions, and targeted marketing programs.

9

Our revenues are primarily derived from two very different business segments; Aerospace Products and Professional Services. These segments operate through various Butler National subsidiaries and affiliates listed in the Company's fiscal year 2014 annual report on Form 10-K.

Aerospace Products

Aerospace Products derives its revenue by designing system integration, engineering, manufacturing, installing, servicing, and repairing products for classic and current production aircraft. These products include JET autopilot service and repairs, Avcon provisions and system integration for special mission equipment installations, Butler Avionics equipment sales and installation, and Butler National electronic controls and safety equipment manufacture and sales. Aerospace customers range in size from owners and operators of small single engine airplanes to owners and operators of large commercial and military aircraft. Aerospace Products are sold to and serviced for customers located in many countries of the world.

Aerospace is the legacy part of the Butler National business. Organized over 50 years ago, this business is based upon design engineering and installation innovations to enhance and support products related to airplanes and ground support equipment. These new products included: in the 1960's, aircraft electronic load sharing and system switching equipment, a number of airplane electronic navigation instruments, radios and transponders; in the 1970's, ground based VOR navigation equipment sold worldwide and GPS equipment as we know it today in civilian use; in the 1980's, special mission modifications to business jets for aerial surveillance and conversion of passenger configurations to cargo; in the 1990's, classic aviation support of aging airplanes with enhanced protection of electrical systems through transient suppression devices (TSD), control electronics for military weapon systems and improved aerodynamic control products (Avcon Fins) allowing stability at higher gross weights for additional special mission applications; in the 2000's, improved accuracy of the airspeed and altimeter systems to allow less vertical separation between flying airplanes (RVSM) and acquisition of the JET autopilot product line to support and replace aged electronic equipment in the classic fleet of Learjet airplanes; and in the 2010's, the acquisition of Butler Avionics to provide additional classic airplane support by retrofit of avionics from the past 40 years to modern state of the art equipment for sale worldwide using FAA supplemental type certification to make the installations (STC) acceptable to foreign governments for installation abroad.

Aerospace continues to be a focus for new product design and development.  Our recent approval is noise suppression for Learjet 20 series aircraft. We expect this segment will continue to grow in the future. To address the three to five year business cycles related to the Aerospace industry, in the 1990's, we began providing Professional Services to markets outside the Aerospace industry.

Professional Services

Professional Services derives its revenue from (a) professional management services in the gaming industry through Butler National Service Corporation ("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural, engineering and management support services through BCS Design ("BCS").

In the early 1990's, management determined that more revenue stable business units were needed to sustain the Company. Members of the Board of Directors had contacts with several American Indian tribes and other members of the Board were associated with gaming operators in Las Vegas.  After enactment of the 1988 Indian Gaming Regulatory Act (IGRA) we reached out to various Indian tribes with land in the area to explore the opportunities for operations under IGRA. This resulted in the "Stables" an Indian owned casino on Modoc Indian land opened in September 1998 developed and managed by BNSC. The Stables Management Agreement has been available on the website maintained by the National Indian Gaming Commission ("NIGC"). The Stables Management Agreement was subsequently amended by various amendments dated April 30, 2003 (the "First Amendment"), November 30, 2006 (the "Second Amendment"), October 19, 2009 (the "Third Amendment") and September 22, 2011 (the "Fourth Amendment"). The result of the First Amendment, Second Amendment, Third Amendment and Fourth Amendment is to provide that twenty (20%) of net profits from The Stables are distributed to BNSC, to end per the joint venture agreement the participation of the Miami Indian tribe from the business and to extend the duration of the Stables Management Agreement through September 30, 2018. BCS Design assisted with the design, construction and continued refurbishment of the Stables.

From this experience with IGRA and the success of the Indian gaming industry, we determined that the IGRA model may be applicable for state owned gaming. We spent Butler National Corporation innovation, legal and market development funds to design and encourage the use of an Indian owned gaming model in the State of Kansas. From these efforts, Kansas enacted the Kansas Expanded Lottery Act (KELA) in 2007 allowing four state owned casinos to be developed in Kansas. In 2007, BNSC made application to manage a state owned casino. In 2008, BNSC was awarded a fifteen year term to manage the Boot Hill Casino in Dodge City, Kansas pursuant to a Lottery Gaming Facility Management Contract (the "Boot Hill Casino Management Contract"). The Boot Hill Casino Management Contract was amended on December 29, 2009 (the "First Amendment to the Boot Hill Casino Management Contract") to bring the definition of "Fiscal Year" in line with the fiscal year of BNSC (May 1 to April 30). BHCMC was organized to be the manager of the Boot Hill Casino in Dodge City, Kansas. The casino opened in December 2009.  BCS Design assisted with the design, construction and continued refurbishment of Boot Hill Casino.
10


The Phase II expansion of Boot Hill Casino began in early 2012 and was completed in January 2013. The unfinished gaming floor space built during Phase I construction and tenant improvements was funded by tenant improvement leases, gaming machine leases, and casino earnings, with minimum exposure to Butler National Corporation. The Phase II expansion included the interior finish of 15,000 square feet of casino shell and 216 additional gaming machines. Part of the expansion included a breezeway connecting the Boot Hill Casino and the Dodge City special events center (United Wireless Arena). In late January 2013 the snack bar was reopened with additional seating and space as the "Cowboy Cafe."  BCS Design assisted with the design, construction and continued refurbishment of Boot Hill Casino.

By 2009, Butler National Corporation was clearly established into two segments; the Professional Services and Aerospace Products business segments.

Results Overview

The nine months ending January 31, 2015 revenue increased 8% to $35.2 million compared to $32.6 million in the nine months ending January 31, 2014. In the nine months ending January 31, 2015 the professional services revenue was $22.8 million compared to $22.8 million in the nine months ending January 31, 2014. In the nine months ending January 31, 2015 the Aerospace Products revenue was $12.4 million compared to $9.8 million in the nine months ending January 31, 2014, an increase of 26%.

The nine months ending January 31, 2015 net income increased to a net income of $350 compared to a loss of $853 in the nine months ending January 31, 2014.  We continue focusing on our margin expansion initiatives, including implementation of efficiencies in our operational processes and controlling general and administrative expenses. The nine months ending January 31, 2015, operating income increased to $1,708, from an operating loss of $38 in the nine months ending January 31, 2014.

 
RESULTS OF OPERATIONS

NINE MONTHS ENDING JANUARY 31, 2015 COMPARED TO NINE MONTHS ENDING JANUARY 31, 2014

(dollars in thousands)
 
Nine
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Nine
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Revenue:
                     
Professional Services
 
$
22,834
 
65
%
 
$
22,820
 
70
%
 
0
%
 
Aerospace Products
   
12,392
 
35
%
   
9,819
 
30
%
 
26
%
 
                                 
Total revenue
   
35,226
 
100
%
   
32,639
 
100
%
 
8
%
 
                                 
Costs and expenses:
                               
Costs of Professional Services
   
13,886
 
40
%
   
14,068
 
43
%
 
(1)
%
 
Cost of Aerospace Products
   
9,150
 
26
%
   
7,787
 
24
%
 
18
%
 
Marketing and advertising
   
3,311
 
9
%
   
3,185
 
10
%
 
4
%
 
Employee benefits
   
1,352
 
4
%
   
1,651
 
5
%
 
(18)
%
 
Depreciation and amortization
   
2,244
 
6
%
   
2,630
 
8
%
 
(15)
%
 
General, administrative and other
   
3,575
 
10
%
   
3,356
 
10
%
 
7
%
 
                                 
Total costs and expenses
   
33,518
 
95
%
   
32,677
 
100
%
 
3
%
 
Operating income (loss)
 
$
1,708
 
5
%
 
$
(38)
 
0
%
       

Revenue:

Revenue increased 8% to $35.2 million in the nine months ended January 31, 2015, compared to $32.6 million in the nine months ended January 31, 2014. See "Operations by Segment" below for a discussion of the primary reasons for the increase in revenue.
11


· Professional Services derives its revenue from (a) professional management services in the gaming industry through Butler National Service Corporation ("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural, engineering and management support services through BCS Design ("BCS"). Revenue from Professional Services remained constant at $22.8 million in the nine months ended January 31, 2015 from $22.8 million in the nine months ended January 31, 2014.
· Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft. Aerospace Products revenue increased 26% for the nine months to $12.4 million at January 31, 2015 compared to $9.8 million at January 31, 2014. We anticipate future domestic military spending reductions and continued slow growth of the United States economy.

Costs and expenses:

Costs and expenses related to Professional Services and Aerospace Products include the cost of engineering, labor, materials, equipment utilization, control systems, security and occupancy.

Costs and expenses increased 3% in the nine months ended January 31, 2015 to $33.5 million compared to $32.7 million in the nine months ended January 31, 2014. Costs and expenses were 95% of total revenue in the nine months ended January 31, 2015, as compared to 100% of total revenue in the nine months ended January 31, 2014. The increase in costs and expenses in the nine months ended January 31, 2015 was primarily due to the increased spending on Aerospace Products due to the increase in segment revenue.

Marketing and advertising expenses as a percent of total revenue was 9% in the nine months ended January 31, 2015, as compared to 10% in the nine months ended January 31, 2014. These expenses increased 4% to $3.3 million in the nine months ended January 31, 2015, from $3.2 million in the nine months ended January 31, 2014. Marketing and advertising expenses include advertising, sales and marketing labor, gaming development costs, and casino and product promotions.

Employee benefits expenses as a percent of total revenue was 4% in the nine months ended January 31, 2015, compared to 5% in the nine months ended January 31, 2014. These expenses decreased 18% to $1.4 million in the nine months ended January 31, 2015, from $1.7 million in the nine months ended January 31, 2014. These expenses include the employers' share of all federal, state and local taxes, paid time off for vacation, holidays and illness, employee health and life insurance programs and employer matching contributions to retirement plans.

Depreciation and amortization expenses as a percent of total revenue was 6% in the nine months ended January 31, 2015, compared to 8% in the nine months ended January 31, 2014. These expenses decreased 15% to $2.2 million in the nine months ended January 31, 2015, from $2.6 million in the nine months ended January 31, 2014. These expenses include depreciation related to owned assets being depreciated over various useful lives and amortization of intangible items including the Kansas privilege fee related to the Boot Hill Casino being expensed over the term of the gaming contract with the State of Kansas. Phase II expansion to Boot Hill Casino was formally completed in early January 2013 and we began depreciation on $4.9 million of assets with various useful lives. BHCMC, LLC depreciation and amortization expense for the nine months ended January 31, 2015 was $1.2 million compared to $1.2 million at January 31, 2014.

General, administrative and other expenses as a percent of total revenue was 10% in the nine months ended January 31, 2015, compared to 10% in the nine months ended January 31, 2014. These expenses increased 7% to $3.6 million in the nine months ended January 31, 2015, from $3.4 million in the nine months ended January 31, 2014. These costs as a percentage of revenue have remained constant.

Other income (expense):

Interest expense and other income were $831 in the nine months ended January 31, 2015, compared with interest expense and other income of $1.1 milliion in the nine months ended January 31, 2014.  The decrease in interest expense is due directly to the reduction in debt.  Interest of $666 was related to obligations of BHCMC, LLC.

Operations by Segment

We have two operating segments, Professional Services and Aerospace Products. The Professional Services segment includes revenue contributions and expenditures associated with casino management services and professional architectural, engineering and management support services. Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft.
12


The following table presents a summary of our operating segment information for the nine months ended January 31, 2015 and January 31, 2014:
(dollars in thousands)
 
Nine
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Nine
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Professional Services
                     
Revenue
                               
 
Boot Hill Casino
 
$
22,297
 
98
%
 
$
22,212
 
97
%
 
0
%
 
 
Management/Professional Services
   
537
 
2
%
   
608
 
3
%
 
(12)
%
 
 
Revenue
   
22,834
 
100
%
   
22,820
 
100
%
 
0
%
 
                                 
Costs of Professional Services
   
13,886
 
61
%
   
14,068
 
62
%
 
(1)
%
 
Expenses
   
7,579
 
33
%
   
7,886
 
34
%
 
(4)
%
 
Total costs and expenses
   
21,465
 
94
%
   
21,954
 
96
%
 
(2)
%
 
Professional Services operating income before noncontrolling interest in BHCMC, LLC
 
$
1,369
 
6
%
 
$
866
 
4
%
 
58
%
 
 

(dollars in thousands)
 
Nine
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Nine
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Aerospace Products
                     
Revenue
 
$
12,392
 
100
%
 
$
9,819
 
100
%
 
26
%
 
                                 
Costs of Aerospace Products
   
9,150
 
74
%
   
7,787
 
79
%
 
18
%
 
Expenses
   
2,903
 
23
%
   
2,936
 
30
%
 
(1)
%
 
Total costs and expenses
   
12,053
 
97
%
   
10,723
 
109
%
 
12
%
 
                                 
Aerospace Products operating income (loss)
 
$
339
 
3
%
 
$
(904)
 
(9)
%
       



Professional Services
· Revenue from Professional Services remained constant at $22.8 million for the nine months ended January 31, 2015, compared to $22.8 million for the nine months ended January 31, 2014.

In the nine months ended January 31, 2015 Boot Hill Casino received gross receipts for the State of Kansas of $29.9 million compared to $29.9 million for the nine months ended January 31, 2014. Mandated fees, taxes and distributions reduced gross receipts by $9.9 million resulting in gaming revenue of $20.0 million for the nine months ended January 31, 2015, compared to a reduction to gross receipts of $9.9 million resulting in gaming revenue of $20.0 million for the nine months ended January 31, 2014.  Non-gaming revenue at Boot Hill Casino increased 6% to $2.3 million for the nine months ended January 31, 2015, compared to $2.2 million for the nine months ended January 31, 2014.

The remaining management and Professional Services revenue includes professional management services in the gaming industry, and licensed architectural services. Professional Services revenue excluding Boot Hill casino decreased 12% to $537 for the nine months ended January 31, 2015, compared to $608 for the nine months ended January 31, 2014.

· Costs of Professional Services decreased 1% in the nine months ended January 31, 2015 to $13.9 million compared to $14.1 million in the nine months ended January 31, 2014. Costs were 61% of segment total revenue in the nine months ended January 31, 2015, as compared to 62% of segment total revenue in the nine months ended January 31, 2014.

· Expenses decreased 4% in the nine months ended January 31, 2015 to $7.6 million compared to 7.9 million in the nine months ended January 31, 2014. Expenses were 33% of segment total revenue in the nine months ended January 31, 2015, as compared to 34% of segment total revenue in the nine months ended January 31, 2014.

13

Aerospace Products
· Revenue increased 26% to $12.4 million in the nine months ended January 31, 2015, compared to $9.8 million in the nine months ended January 31, 2014. This increase is attributable to increased revenue of $2.8 million in the modification business.  We anticipate future domestic military spending reductions and continued slow growth of the United States economy. In an effort to offset decreased domestic military spending, we have invested in the development of several STCs.  These STCs are state of the art avionics and we are aggressively marketing both domestically and internationally.

· Costs of Aerospace Products increased by 18% in the nine months ended January 31, 2015 to $9.2 million compared to $7.8 million for the nine months ended January 31, 2014.  Costs were 74% of segment total revenue in the nine months ended January 31, 2015, as compared to 79% of segment total revenue in the nine months ended January 31, 2014.

· Expenses decreased 1% in the nine months ended January 31, 2015 at $2.9 million compared to $2.9 million in the nine months ended January 31, 2014.  Expenses were 23% of segment total revenue in the nine months ended January 31, 2015, as compared to 30% of segment total revenue in the nine months ended January 31, 2014.


Employees

Other than persons employed by our gaming subsidiaries there were 91 full time and 3 part time employees on January 31, 2015, compared to 81 full time and 3 part time employees on January 31, 2014. As of March 6, 2015, staffing is 92 full time and 3 part time employees. Our staffing at Boot Hill Casino & Resort on January 31, 2015 was 198 full time and 46 part time employees. At March 6, 2015 there are 198 full time employees and 46 part time employees. None of the employees are subject to any collective bargaining agreements.

THIRD QUARTER FISCAL 2015 COMPARED TO THIRD QUARTER FISCAL 2014

(dollars in thousands)
 
Three
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Three
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Revenue:
                     
Professional Services
 
$
7,757
 
70
%
 
$
6,984
 
64
%
 
11
%
 
Aerospace Products
   
3,326
 
30
%
   
3,860
 
36
%
 
(14)
%
 
                                 
Total revenue
   
11,083
 
100
%
   
10,844
 
100
%
 
2
%
 
                                 
Costs and expenses:
                               
Costs of Professional Services
   
4,715
 
43
%
   
4,498
 
42
%
 
5
%
 
Cost of Aerospace Products
   
2,477
 
22
%
   
2,843
 
26
%
 
(13)
%
 
Marketing and advertising
   
1,010
 
9
%
   
868
 
8
%
 
16
%
 
Employee benefits
   
487
 
4
%
   
571
 
5
%
 
(15)
%
 
Depreciation and amortization
   
693
 
6
%
   
870
 
8
%
 
(20)
%
 
General, administrative and other
   
1,166
 
11
%
   
1,176
 
11
%
 
(1)
%
 
                                 
Total costs and expenses
   
10,548
 
95
%
   
10,826
 
100
%
 
(3)
%
 
Operating income (loss)
 
$
535
 
5
%
 
$
18
 
0
%
 
2,872
%
 

14

Revenue:

Revenue increased 2% to $11.1 million in the three months ended January 31, 2015, compared to $10.8 million in the three months ended January 31, 2014. See "Operations by Segment" below for a discussion of the primary reasons for the increase in revenue.

· Professional Services derives its revenue from (a) professional management services in the gaming industry through Butler National Service Corporation ("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural, engineering and management support services through BCS Design ("BCS").  Revenue from Professional Services increased 11% to $7.8 million in the three months ended January 31, 2015 from $7.0 million in the three months ended January 31, 2014.
· Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft. Aerospace Products revenue decreased 14% for the three months to $3.3 million at January 31, 2015 compared to $3.9 million at January 31, 2014. We anticipate future domestic military spending reductions and continued slow growth of the United States economy.

Costs and expenses:

Costs and expenses related to Professional Services and Aerospace Products include the cost of engineering, labor, materials, equipment utilization, control systems, security and occupancy.

Costs and expenses decreased 3% in the three months ended January 31, 2015 to $10.5 million compared to $10.8 million in the three months ended January 31, 2014. Costs and expenses were 95% of total revenue in the three months ended January 31, 2015, as compared to 100% of total revenue in the three months ended January 31, 2014.

Marketing and advertising expenses as a percent of total revenue was 9% in the three months ended January 31, 2015, as compared to 8% in the nine months ended January 31, 2014. These expenses increased 16% to $1,010 in the three months ended January 31, 2015, from $868 in the three months ended January 31, 2014. Marketing and advertising expenses include advertising, sales and marketing labor, gaming development costs, and casino and product promotions.

Employee benefits expenses as a percent of total revenue was 4% in the three months ended January 31, 2015, compared to 5% in the three months ended January 31, 2014. These expenses decreased 15% to $487 in the three months ended January 31, 2015, from $571 in the three months ended January 31, 2014. These expenses include the employers' share of all federal, state and local taxes, paid time off for vacation, holidays and illness, employee health and life insurance programs and employer matching contributions to retirement plans.

Depreciation and amortization expenses as a percent of total revenue was 6% in the three months ended January 31, 2015, compared to 8% in the three months ended January 31, 2014. These expenses decreased 20% to $693 in the three months ended January 31, 2015, from $870 in the three months ended January 31, 2014. These expenses include depreciation related to owned assets being depreciated over various useful lives and amortization of intangible items including the Kansas privilege fee related to the Boot Hill Casino being expensed over the term of the gaming contract with the State of Kansas. Phase II expansion to Boot Hill Casino was formally completed in early January 2013 and we began depreciation on $4.9 million of assets with various useful lives. BHCMC, LLC depreciation and amortization expense for the three months ended January 31, 2015 was $404 compared to $401 at January 31, 2014.

General, administrative and other expenses as a percent of total revenue was 11% in the three months ended January 31, 2015, compared to 11% in the three months ended January 31, 2014. These expenses decreased 1% to $1.2 million in the three months ended January 31, 2015, from $1.2 million in the three months ended January 31, 2014.

Other income (expense):

Interest expense and other income were $246 in the three months ended January 31, 2015, compared with interest expense and other income of $346 in the three months ended January 31, 2014.  The decrease in interest expense is due directly to the reduction in debt.  Interest of $190 was related to obligations of BHCMC, LLC.

Operations by Segment

We have two operating segments, Professional Services and Aerospace Products. The Professional Services segment includes revenue contributions and expenditures associated with casino management services and professional architectural, engineering and management support services. Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft.
15


The following table presents a summary of our operating segment information for the three months ended January 31, 2015 and January 31, 2014:
(dollars in thousands)
 
Three
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Three
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Professional Services
                     
Revenue
                               
 
Boot Hill Casino
 
$
7,611
 
98
%
 
$
6,882
 
99
%
 
11
%
 
 
Management/Professional Services
   
146
 
2
%
   
102
 
1
%
 
43
%
 
 
Revenue
   
7,757
 
100
%
   
6,984
 
100
%
 
11
%
 
                                 
Costs of Professional Services
   
4,715
 
61
%
   
4,498
 
64
%
 
5
%
 
Expenses
   
2,514
 
32
%
   
2,380
 
34
%
 
6
%
 
Total costs and expenses
   
7,229
 
93
%
   
6,878
 
98
%
 
5
%
 
Professional Services operating income before noncontrolling interest in BHCMC, LLC
 
$
528
 
7
%
 
$
106
 
2
%
 
398
%
 


(dollars in thousands)
 
Three
Months
Ended
Jan 31, 2015
 
Percent
of Total
Revenue
 
Three
Months
Ended
Jan. 31, 2014
 
Percent
of  Total
Revenue
 
Percent
Change
2014-2015
 
Aerospace Products
                     
Revenue
 
$
3,326
 
100
%
 
$
3,860
 
100
%
 
(14)
%
 
                                 
Costs of Aerospace Products
   
2,477
 
75
%
   
2,843
 
74
%
 
(13)
%
 
Expenses
   
842
 
25
%
   
1,105
 
28
%
 
(24)
%
 
Total costs and expenses
   
3,319
 
100
%
   
3,948
 
102
%
 
(16)
%
 
                                 
Aerospace Products operating income (loss)
 
$
7
 
0
%
 
$
(88)
 
(2)
%
       

Professional Services
· Revenue from Professional Services increased 11% to $7.8 million for the three months ended January 31, 2015, compared to $7.0 million for the three months ended January 31, 2014. The increase in Professional Services revenue was driven primarily by increased revenue in gaming activities.

In the three months ended January 31, 2015 Boot Hill Casino received gross receipts for the State of Kansas of $10.2 million compared to $9.4 million for the three months ended January 31, 2014. Mandated fees, taxes and distributions reduced gross receipts by $3.4 million resulting in gaming revenue of $6.8 million for the three months ended January 31, 2015, compared to a reduction to gross receipts of $3.2 million resulting in gaming revenue of $6.2 million for the three months ended January 31, 2014.  Non-gaming revenue at Boot Hill Casino was $800 for the three months ended January 31, 2015 and $690 for the three months ended January 31, 2014.

The remaining management and Professional Services revenue includes professional management services in the gaming industry, and professional architectural, engineering and management support services. Professional Services revenue excluding Boot Hill casino increased 43% to $146 in the three months ended January 31, 2015.

· Costs of Professional Services increased 5% in the three months ended January 31, 2015 to $4.7 million compared to $4.5 million in the three months ended January 31, 2014. Costs were 61% of segment total revenue in the three months ended January 31, 2015, as compared to 64% of segment total revenue in the three months ended January 31, 2014.

· Expenses increased 6% in the three months ended January 31, 2015 to $2.5 million compared to $2.4 million in the three months ended January 31, 2014. Expenses were 32% of segment total revenue in the three months ended January 31, 2015, as compared to 34% of segment total revenue in the three months ended January 31, 2014.

16

Aerospace Products
· Revenue decreased 14% to $3.3 million in the three months ended January 31, 2015, compared to $3.9 million in the three months ended January 31, 2014. This decrease is attributable to decreased revenue of $579 in the modification business.  We anticipate future domestic military spending reductions and continued slow growth of the United States economy. In an effort to offset decreased domestic military spending, we have invested in the development of several STCs.  These STCs are state of the art avionics and we are aggressively marketing both domestically and internationally.

· Costs of Aerospace Products decreased by 13% in the three months ended January 31, 2015 to $2.5 million compared to $2.8 million for the three months ended January 31, 2014.  Costs were 75% of segment total revenue in the three months ended January 31, 2015, as compared to 74% of segment total revenue in the three months ended January 31, 2014.

· Expenses decreased 24% in the three months ended January 31, 2015 at $842 compared to $1,105 in the three months ended January 31, 2014.  Expenses were 25% of segment total revenue in the three months ended January 31, 2015, as compared to 28% of segment total revenue in the three months ended January 31, 2014.
 
Liquidity and Capital Resources

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 fiscal 2015 and beyond.

The ownership structure of BHCMC, LLC is now:
Membership Interest
 
Members of
Board of Managers
   
Equity Ownership
   
Income
(Loss) Sharing
 
Class A
   
3
     
20%
     
40%
 
Class B
   
4
     
80%
     
60%
 

Our wholly owned subsidiary, Butler National Service Corporation continues friendly discussions with the other member of BHCMC LLC to explore the possible acquisition by Butler National Service Corporation of other member's 20% equity interest in BHCMC LLC.   If and when a definitive agreement is reached, such definitive agreement and a press release concerning the acquisition will be issued to describe the terms of the agreement and the intentions of the members.   We have not set a definitive timetable for our discussions and there can be no assurances that the process will result in any transaction being announced or completed.  At present there is no disagreement between the members of BHCMC LLC.   We do not plan to disclose or comment on developments until further disclosure is deemed appropriate.

BHCMC, LLC, rents the casino building under the terms of a 25 year lease from BHC Development L.C. "BHCD". Butler National Corporation, its management, or subsidiaries have no ownership interest in BHCI or BHCD.


The terms of the agreement between the Kansas Lottery and BNSC/BHCMC required the completion of an addition to the Boot Hill Casino. The Phase II development of an adjacent hotel and community owned special events center was funded by BHI, is completed, and open to the public. The Phase II expansion of Boot Hill Casino began in early 2012 and was completed in January 2013. Phase II expansion of the unfinished gaming floor space built during Phase I construction and tenant improvements was funded by tenant improvement leases, gaming machine acquisitions, and casino earnings, with minimum exposure to Butler National Corporation. The Phase II expansion included the interior finish of 15,000 square feet of casino shell and 216 additional gaming machines. Part of the expansion included a breezeway connecting the Boot Hill Casino and the Dodge City special events center (United Wireless Arena). Boot Hill Casino now has approximately 687 gaming machines on the floor.

Analysis and Discussion of Cash Flow

During nine months ended January 31, 2015 our cash position decreased by $1,209. Net income was $741. Cash flows from operating activities provided $3,877. Non-cash activities consisting of depreciation and amortization contributed $3,044. Customer deposits increased our cash position by $1,210 while inventories decreased our cash position by $1,343. Accounts receivable increased our cash position by $653. Prepaid expenses and other current assets decreased our cash by $346, while an increase in accounts payable and accrued expenses increased our cash by an additional $191.

Cash used in investing activities was $2,183. We invested $300 to purchase equipment, and leasehold improvements, $1,306 towards STCs, and $577 on two airplanes.

Cash used in financing activities was $2,903. We made repayments on our debt of $3,352 and decreased promissory notes by $255.  We borrowed $704 to purchase two airplanes.
17


Critical Accounting Policies and Estimates:

We believe that there are several accounting policies that are critical to understanding our historical and future performance, as these policies affect the reported amount of revenue and other significant areas involving management judgments and estimates. These significant accounting policies relate to revenue recognition, the use of estimates, long-lived assets, and Supplemental Type Certificates. These policies and our procedures related to these policies are described in detail below and under specific areas within this "Management Discussion and Analysis of Financial Condition and Results of Operations."

Revenue Recognition: Generally, we perform aircraft modifications under fixed-price contracts. Revenue from fixed-price contracts are recognized on the percentage-of-completion method, measured by the direct labor and material costs incurred compared to total estimated direct labor and material costs. Each quarter our management reviews the progress and performance of our significant contracts. Based on this analysis, any adjustment to sales, cost of sales and/or profit is recognized as necessary in the period they are earned. Changes in estimates of contract sales, cost of sales and profits are recognized using a cumulative catch-up, which is recognized in the current period of the cumulative effect of the change on current or prior periods. Revenue for off-the-shelf items and aircraft sales is recognized on the date of sale.

Revenue from Avionics products are recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered and invoiced. Payments for these service invoices are usually received within 30 days.

In regard to warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion any future warranty work would not be material to the financial statements.

Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the amount of jackpots increase. Food, beverage, and other revenue is recorded when the service is received and paid for.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements.

Long-lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, formerly SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.

Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenue being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs.

Changing Prices and Inflation

We have experienced upward pressure from inflation in fiscal year 2015. From fiscal year 2013 to fiscal year 2014 a majority of the increases we experienced were in material costs. This additional cost may not be transferable to our customers resulting in lower income in the future.
18


Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting Company as defined by Rule 12b-2 under the Securities Exchange Act of 1934, and are not required to provide the information required under this item.

Item 4.  CONTROLS AND PROCEDURES
We maintain a set of disclosure controls and procedures designed to ensure that information required to be disclosed in our filings under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms. Our principal executive and financial officers have evaluated our disclosure controls and procedures as of the end of the period covered by this report on Form 10-K and have determined that such disclosure controls and procedures are effective, based on criteria in Internal Control-Integrated Framework, issued by COSO.

Evaluation of disclosure controls and procedures: Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

In connection with the preparation of this Form 10-Q, our Chief Executive Officer and our Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of January 31, 2015. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of January 31, 2015.

Internal Control Over Financial Reporting

Changes in Internal Control Over Financial Reporting: In our opinion there were no material changes in the Company internal controls over financial reporting during the quarter covered in this report that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

Limitations on Controls
Our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

PART II.  OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS.
BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas.  After hearing the evidence, the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,424.  Bally appealed the verdict.  In February of 2015, BHCMC and BHC Development agreed to accept the sum of $1,324 in satisfaction of the judgment.  This amount was received in February 2015.  BHCMC and BHC Development have further agreed to return to Bally its system-related equipment.
19


As of March 6, 2015, there are no other significant known legal proceedings pending against us. We consider all such unknown proceedings, if any, to be ordinary litigation incident to the character of the business. We believe that the resolution of any claims will not, individually or in the aggregate, have a material adverse effect on the financial position, results of operations, or liquidity of the Company.

Item 1A. RISK FACTORS.
There are no material changes to the risk factors disclosed under Item 1A of our Form 10-K or to the Cautionary Statements filed by us as Exhibit 99 to the Form 10-K for the fiscal year ended April 30, 2014.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.

Item 3. DEFAULTS UPON SENIOR SECURITIES.
None.

Item 4. MINE SAFETY DISCLOSURES.
None.

Item 5. OTHER INFORMATION.
None.

Item 6. EXHIBITS.

 
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.
     
   
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, 2014.
 
 
101
The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2015, formatted in XBRL (Extensible Business Reporting Language) includes: (i) Condensed Consolidated Balance Sheets as of January 31, 2015 and April 30, 2014, (ii) Condensed Consolidated Statements of Operations for the three months ended January 31, 2015 and 2014 and nine months ended January 31, 2015 and 2014, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended January  31, 2015 and 2014, and (iv) the Notes to Consolidated Financial Statements, with detail tagging.

20


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
BUTLER NATIONAL CORPORATION
 
(Registrant)
   
March 17, 2015
/s/ Clark D. Stewart
Date
Clark D. Stewart
 
(President and Chief Executive Officer)
   
March 17, 2015
/s/ Craig D. Stewart
Date
Craig D. Stewart
 
(Chief Financial Officer)

21

Exhibit Index

Exhibit
Number
Description of Exhibit
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, 2014.
   
101
The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2015, formatted in XBRL (Extensible Business Reporting Language) includes: (i) Condensed Consolidated Balance Sheets as of January 31, 2015 and April 30, 2014, (ii) Condensed Consolidated Statements of Operations for the three months ended January 31, 2015 and 2014 and nine months ended January 31, 2015 and 2014, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended January  31, 2015 and 2014, and (iv) the Notes to Consolidated Financial Statements, with detail tagging.



22
EX-31.1 2 exhibit31-1.htm EXHIBIT 31.1 CEO CERTIFICATION

Exhibit 31.1

CERTIFICATIONS

I, Clark D. Stewart, certify that:

1. I have reviewed this quarterly report on Form 10-Q ended January 31, 2015 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, 2015
/s/Clark D. Stewart
 
 
Clark D. Stewart
 
President and Chief Executive Officer

EX-31.2 3 exhibit31-2.htm EXHIBIT 31.2 CFO CERTIFICATION

Exhibit 31.2

CERTIFICATIONS

I, Craig D. Stewart, certify that:

1. I have reviewed this quarterly report on Form 10-Q ended January 31, 2015 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, 2015
/s/ Craig D. Stewart
 
 
Craig D. Stewart
 
Chief Financial Officer

EX-32.1 4 exhibit32-1.htm EXHIBIT 32.1 CEO CERTIFICATION

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Butler National Corporation (the "Company") on Form 10-Q for the period ending January 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Clark D. Stewart, Chief Executive Officer of the Company, certify, (to the best of my knowledge), pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002 that;

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, 2015

"A signed original of this written statement required by Section 906 has been provided to Butler National Corporation and will be retained by Butler National Corporation and furnished to the Securities and Exchange Commission or its staff upon request."

EX-32.2 5 exhibit32-2.htm EXHIBIT 32.2 CFO CERTIFICATION

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Butler National Corporation (the "Company") on Form 10-Q for the period ending January 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Craig D. Stewart, Chief Financial Officer of the Company, certify, (to the best of my knowledge), pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002 that;

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, 2015

"A signed original of this written statement required by Section 906 has been provided to Butler National Corporation and will be retained by Butler National Corporation and furnished to the Securities and Exchange Commission or its staff upon request."


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Facility, Maximum Borrowing Capacity Line of credit facility borrowing capacity Line of Credit [Member] Unused line Promissory notes LONG-TERM DEBT, NET OF CURRENT MATURITIES: Current maturities of long-term debt Machinery and equipment Marketing and advertising Noncontrolling Interest in BHCMC, LLC Net income (loss) CASH FLOWS FROM FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Cash flows from investing activities Net Cash Provided by (Used in) Investing Activities CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from financing activities Net Cash Provided by (Used in) Financing Activities Cash flows from operating activities Net Cash Provided by (Used in) Operating Activities Net income attributable to noncontrolling interest in BHCMC, LLC Net Income (Loss) Attributable to Noncontrolling Interest NON CASH OPERATING ACTIVITY Total other income (expense), Nonoperating Income (Expense) OTHER INCOME (EXPENSE): Notes payable Notes Payable to Bank [Member] OPERATING INCOME Total costs and expenses Operating Costs and Expenses Operating Leased Assets [Line Items] Total lease obligation Operating Leases, Future Minimum Payments Due Organization, Consolidated and Presentation of Financial Statements [Abstract] Organization, Consolidated and Presentation of Financial Statements Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Other assets (net of accumulated amortization of $3,596 at January 31, 2015 and $2,520 at April 30, 2014) Other Assets, Noncurrent Other intangible assets Other Assets [Abstract] General, administrative and other Other income, net Other Nonoperating Income (Expense) Other current liabilities Proceeds from sale of land/other assets Payments to Acquire Productive Assets Capital expenditures Payments to Acquire Property, Plant, and Equipment Distribution to noncontrolling member Payments to Noncontrolling Interests Non cash stock issued for benefit plan Pension and Other Postretirement Benefit Expense Incentive Stock Option [Member] Preferred stock, par value (in dollars per share) Preferred stock, dividend rate (in hundredths) Preferred stock, liquidation preference value (in hundredths) Preferred stock Preferred Class A [Member] Class A [Member] Preferred Class B [Member] Class B [Member] Preferred stock, shares issued (in shares) Preferred stock, shares authorized (in shares) Preferred stock, redemption value Preferred stock, shares outstanding (in shares) Prepaid expenses and other current assets Contributed capital Borrowings of promissory notes, net Proceeds from (Repayments of) Lines of Credit Borrowings on long-term debt Proceeds from Issuance of Long-term Debt and Capital Securities, Net NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION Net Income (Loss), Including Portion Attributable to Noncontrolling Interest PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment, gross Total property, plant and equipment Repayments of long-term debt Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities Research and development Research and Development [Abstract] Research and Development Research, Development, and Computer Software Disclosure [Text Block] Retained Earnings REVENUE: Aerospace Products Total revenue Professional Services Sales Revenue, Services, Net Schedule of Finite-Lived Intangible Assets [Table] Schedule of Operating Leased Assets [Table] Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Table] Notes Collateralized by Aircraft Security Agreements [Member] Secured Debt [Member] Expiration date Stock issued for services Share-based Compensation Share-based Compensation Arrangement by Share-based Payment Award [Line Items] Target price of share (in dollars per share) Number of options than can be exercised (in shares) Stock exercise price (in dollars per share) Shares outstanding (in shares) Shares issued (in shares) Award Type [Domain] Statement [Table] Statement [Line Items] CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) [Abstract] CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) [Abstract] Class of Stock [Axis] Non cash stock issued for services STOCKHOLDERS' EQUITY: Stockholders' Equity Attributable to Parent [Abstract] Total stockholders' equity Butler National Corporation Stockholders' Equity Attributable to Parent Total stockholders' equity Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Stockholders' Equity [Abstract] Subsequent Events [Text Block] Subsequent Events [Abstract] Subsequent Event [Table] Subsequent Event [Line Items] Subsequent Event [Member] Subsequent Event Type [Domain] Subsequent Event Type [Axis] SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Treasury stock (in shares) Treasury stock at cost, 600,000 shares Treasury Stock, Value WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) Weighted Average Number of Shares Outstanding, Basic WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) Advance from borrowings from related party for tenant improvement related to expansion. Advance for tenant improvements related to expansion of casino and resort Represents remaining balance on lease obligation. Amount of balance on lease obligation Amount of balance on lease obligation Minimum monthly lease payments as of the report date. Minimum monthly lease payments This element represents an obligation between BHCMC and BHCI. Obligation With BHCI [Member] Represents the number of notes. Number of notes Number of notes Represents the number of line of credit. Number of line of credit Number of lines of credit A contractual arrangement with a lender under which borrowings can be made up to a specific amount at any point in time, and under which borrowings outstanding may be either short-term or long-term, depending upon the particulars. This is a subset of the Line of Credit. Line of Credit 3 [Member] Represents the notes collateralized by automobiles and equipment. Notes collateralized by automobiles and equipment [Member] Notes Collateralized by Automobiles and Equipment [Member] Note for real estate purchased in Dodge City, Kansas. Notes for Real Estate [Member] Represents the note collateralized by the first and second position on all assets of the company. Note collateralized by the first and second position on all assets of the company [Member] Note Collateralized by First and Second Position on All Assets of The Company [Member] Represents the notes connected to the BHCMC Lottery Gaming Machines. BHCMC Lottery Gaming Machines [Member] This element represents obligation between BHCMC and BHCI. First Obligation With BHCI [Member] A contractual arrangement with a lender under which borrowings can be made up to a specific amount at any point in time, and under which borrowings outstanding may be either short term or long term, depending upon the particulars. This is a subset of the Line of Credit. Line of Credit 2 [Member] This element represents second obligation between BHCMC and BHCI. Second Obligation With BHCI [Member] Note entered with supplier for purchase of assets of business. Note With Konami Gaming [Member] A contractual arrangement with a lender under which borrowings can be made up to a specific amount at any point in time and under which borrowings outstanding may be either short term or long term, depending upon the particulars. This is a subset of the Line of Credit. Line of Credit 1 [Member] First BHCI Obligation Payment First BHCI Obligation Payment Second obligation payment to BHCI Second BHCI Obligation Payment The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets, excluding the amortization of Supplemental Type Certificates, to periods that benefit from use of the assets. Depreciation and amortization excluding amortization of Supplemental Type Certificates Depreciation and amortization The increase (decrease) during the reporting period in gaming facility mandated payment. Increase Decrease In Gaming facility mandated payment Gaming facility mandated payment The increase during the period in capital leased intangible asset obligations. Capitalized Lease Intangible Assets Intangible gaming equipment and notes The fair value of options to employees in noncash financing activities. Non cash stock options issued to employees and directors Non cash stock options issued to employees and directors Carrying amount as of the balance sheet date of land held for productive use and the gross amount of long-lived, depreciable assets that include building structures held for productive use including any addition, improvement, or renovation to the structure, such as interior masonry, interior flooring, electrical, and plumbing. Land and building, gross Land and building Aggregate carrying amount, as of the balance sheet date, of gaming facility mandated payment obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed in the balance sheet. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Gaming facility mandated payment Gaming facility mandated payment The net value of authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenue being generated from aircraft modifications associated with the STC. SUPPLEMENTAL TYPE CERTIFICATES - accumulated amortization SUPPLEMENTAL TYPE CERTIFICATES net of amortization Refers to Preferred stock, designated classes. Preferred stock, designated classes, shares Preferred stock, designated classes (in shares) Refers to Preferred stock, stated value in dollars per share. Preferred stock, stated value Preferred stock, stated value (in dollars per share) Accumulated amortization of other assets. Accumulated amortization other assets Other assets, accumulated amortization Outstanding nonredeemable preferred class A and B stock or outstanding convertible preferred class A and B stock. Classified within stockholders' equity if nonredeemable or redeemable solely at the option of the issuer. Classified within temporary equity if redemption is outside the control of the issuer. Class A and B [Member] Incentive stock option allocation during the period. Incentive Stock, Allocation [Axis] Incentive stock option allocation during the period. Incentive Stock, Allocation [Domain] Incentive stock option allocation during the period. Year 1 Target [Member] Incentive stock option allocation during the period. Year 3 Target [Member] Incentive stock options condition for vesting [Abstract] Incentive stock option allocation during the period. Year 2 Target [Member] Represents the intangible gaming support items for its subsidiary. Intangible gaming support items [Member] Intangible Gaming Support Items [Member] JET autopilot intellectual property. JET autopilot intellectual property [Member] JET Autopilot Intellectual Property [Member] Lottery Gaming Facility Management Contract ("Agreement") is for the development, construction, and management of a Lottery Gaming Facility, the business of which will be owned and operated by the Kansas Lottery, to be located in the South Central Gaming Zone. Kansas Expanded Lottery Act contract privilege fee [Member] Kansas Expanded Lottery Act Contract Privilege [Member] Non-cash expense related to issuance of company stock. Amortization of stock issuance cost Amortization of stock issuance cost Damages received from Defendant. Damages Received from Defendant Damages awarded to Plaintiff Damages Awarded to Plaintiff Document and Entity Information [Abstract] EX-101.PRE 10 buks-20150131_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE EX-101.INS 11 buks-20150131.xml XBRL INSTANCE DOCUMENT 0000015847 2014-05-01 2015-01-31 0000015847 2015-03-06 0000015847 2015-01-31 0000015847 2014-04-30 0000015847 us-gaap:PreferredClassAMember 2015-01-31 0000015847 us-gaap:PreferredClassBMember 2015-01-31 0000015847 us-gaap:PreferredClassBMember 2014-04-30 0000015847 us-gaap:PreferredClassAMember 2014-04-30 0000015847 buks:ClassAndBMember 2015-01-31 0000015847 buks:ClassAndBMember 2014-04-30 0000015847 us-gaap:PreferredClassBMember 2014-05-01 2015-01-31 0000015847 us-gaap:PreferredClassBMember 2013-05-01 2014-01-31 0000015847 us-gaap:PreferredClassAMember 2014-05-01 2015-01-31 0000015847 us-gaap:PreferredClassAMember 2014-02-01 2014-04-30 0000015847 2013-05-01 2014-01-31 0000015847 2014-11-01 2015-01-31 0000015847 2013-11-01 2014-01-31 0000015847 2013-05-01 2013-07-31 0000015847 2014-05-01 2014-07-31 0000015847 2013-04-30 0000015847 2014-01-31 0000015847 us-gaap:LineOfCreditMember 2015-01-31 0000015847 buks:BuksLineofcredit3Member 2015-01-31 0000015847 buks:LineOfCredit2Member 2015-01-31 0000015847 buks:LineOfCredit1Member 2015-01-31 0000015847 buks:ObligationWithBHCIMember 2015-01-31 0000015847 us-gaap:SecuredDebtMember 2015-01-31 0000015847 buks:NotesForRealEstateMember 2015-01-31 0000015847 buks:NotesCollateralizedByAutomobilesAndEquipmentMember 2015-01-31 0000015847 buks:NoteWithKonamiGamingMember 2015-01-31 0000015847 buks:BhcmcLotteryGamingMachinesMember 2015-01-31 0000015847 us-gaap:NotesPayableToBanksMember 2015-01-31 0000015847 buks:SecondObligationWithBhciMember 2015-01-31 0000015847 buks:FirstObligationWithBhciMember 2015-01-31 0000015847 buks:SecondObligationWithBhciMember 2014-07-31 0000015847 buks:JetAutopilotIntellectualPropertyMember 2015-01-31 0000015847 buks:KansasExpandedLotteryActContractPrivilegeFeeMember 2015-01-31 0000015847 buks:IntangibleGamingSupportItemsMember 2015-01-31 0000015847 buks:JetAutopilotIntellectualPropertyMember 2014-05-01 2015-01-31 0000015847 us-gaap:EmployeeStockOptionMember 2010-12-01 2010-12-31 0000015847 us-gaap:EmployeeStockOptionMember 2015-01-31 0000015847 us-gaap:PerformanceSharesMember buks:Year1TargetMember 2015-01-31 0000015847 buks:Year2TargetMember us-gaap:PerformanceSharesMember 2015-01-31 0000015847 us-gaap:PerformanceSharesMember buks:Year3TargetMember 2015-01-31 0000015847 2014-03-07 0000015847 2015-02-02 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure buks:Note false --04-30 2015-01-31 No No Yes Smaller Reporting Company BUTLER NATIONAL CORP 0000015847 61493092 2015 Q3 10-Q 2456000 3109000 1533000 1375000 13996000 12140000 13282000 13282000 66281237 41633000 41678000 8647000 8734000 16358000 16531000 5052000 6261000 5148000 5071000 -77000 -1209000 0.01 0.01 61493092 61493092 614000 614000 100000000 100000000 0 0 61493092 61493092 9150000 2477000 7787000 2843000 14068000 4715000 13886000 4498000 0 -359000 136000 -101000 2192000 982000 0 7423000 2500000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">4. Debt: At January 31, 2015, the Company was utilizing three lines of credit totaling $4.0 million. The unused line at January 31, 2015 was $2.5 million. These funds were primarily used for the purchase of inventory and aircraft modification Supplemental Type Certificate ("STC") development costs for modifications and avionics.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">Our $1.0 million line of credit has been extended to August 2015. Our $2.5 million line of credit matures April 2015. Our $0.5 million line of credit matures June 2015.&#160; The lines of credit are collateralized by the first and second positions on all assets of the Company.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">At January 31, 2015, there were several notes collateralized by aircraft security agreements totaling $1,560. These notes were used for the purchase and modifications of these collateralized aircraft and Butler Avionics, Inc.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">There are three notes at a bank totaling $1,213 for real estate located in Olathe, Kansas and Tempe, Arizona. The due date for these notes is March 2019 and August 2019.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">One note totaling $309 remains for real estate purchased in Dodge City, Kansas and matures in June 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">One note collateralized by automobiles and equipment totals an additional $53 and matures in June 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">The Kansas Lottery acquired additional gaming machines.&#160; BHCMC, as manager under the management contract with the State of Kansas, was required to remit payment for the gaming equipment. The balance of these financed payables are $635.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">BHCMC, LLC ("BHCMC") entered into an agreement dated May 1, 2011, and amended via an addendum dated January 1, 2012, with BHC Investment Company, L.C. ("BHCI") for a total obligation of $7,423.&#160; BHCI provided funds to BHCMC for the purchase of certain intangible items and gaming items related to the Boot Hill Casino.&#160; Commencing on January 1, 2012, BHCMC is obligated to make a minimum payment to BHCI of $177 per month until September 30, 2017.&#160; The remaining balance on the obligation is $3,511.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">On August 24, 2012 BHCMC and BHCI entered into a second agreement of $2,500 for tenant improvements related to expansion of the Boot Hill Casino.&#160; Commencing on November 1, 2012. BHCMC is obligated to make a minimum payment to BHCI of approximately $55 per month until November 30, 2017.&#160; The remaining obligation is $1,557.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">We are not in default of any of our notes as of January 31, 2015.</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">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 2015 and beyond.</div><div><br /></div></div> 1335000 1335000 693000 2244000 2630000 870000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">6. Stock Options: At January 31, 2015 we had 7,262,064 outstanding stock options that were issued on December 31, 2010 all of which expire on December 31, 2015.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">The exercise price for the incentive stock options is $0.49. The Board of Directors approved the issuance of incentive stock options on December 31, 2010 with the goals of increasing shareholder value, expanding the number of managers participating in the program, and increasing the percentage of compensation tied to share price performance.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">The incentive stock options are allocated in three groups with two conditions for vesting. The first condition is stock price and the second condition is time. There are 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $0.92, and 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $1.41, and 2,420,688 options at $0.49 that may be exercised on or after December 31, 2013 if and when the share price reaches $1.90.</div><div><br /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">2. Net Income (Loss) Per Share: The Company follows ASC 260 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net earnings (loss) per share are excluded. The number of potential common shares as of January 31, 2015 is <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">66,281,237</font>.</div><div><br /></div></div> 0.00 0.01 -0.01 0.00 0.00 0.01 -0.01 0.00 1156000 1122000 1352000 1651000 487000 571000 P15Y 7300000 6723000 6648000 6447000 -36000 0 -328000 877000 289000 -1096000 0 0 -974000 -653000 1210000 887000 157000 -258000 -56000 34000 0 -424000 12000 -231000 295000 136000 1116000 1343000 1185000 0 346000 -62000 -4938000 -3744000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">5. Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $3,011 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417.&#160; BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the Management Contract with the State of Kansas which will end in December 2024.&#160; There is no assurance of the Management Contract renewal.&#160; The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.&#160; The JET intellectual property is being amortized over a period of 15 years.</div><div><br /></div></div> 1100000 843000 251000 348000 843000 1102000 7679000 6336000 144000 144000 5330000 5102000 2205000 1090000 4081000 4060000 11328000 10504000 41633000 41678000 16539000 17324000 2500000 500000 1000000 4000000 2500000 1502000 1757000 5211000 6820000 3627000 3908000 3586000 3535000 3185000 3311000 1010000 868000 3447000 3056000 741000 -737000 289000 -227000 -174000 -2183000 -3481000 -2903000 3877000 3578000 221000 116000 391000 -8000 -1058000 -831000 -246000 -346000 3511000 1560000 309000 53000 0 635000 1213000 1557000 1708000 -38000 535000 18000 10548000 33518000 32677000 10826000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the annual report on Form 10-K for the fiscal year ended April 30, 2014. In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three and nine months ended January 31, 2015 are not indicative of the results of operations that may be expected for the fiscal year ended April 30, 2015.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. Financial amounts are in thousands of dollars except per share amounts.</div><div><br /></div></div> 7312000 7399000 1417000 5500000 3011000 3575000 3356000 1166000 1176000 5000 42000 12000 2000 388000 93000 174000 2183000 5 5 5 5 0.06 0.06 0.098 0.098 0 0 0 0 0 0 0 0 50000000 50000000 50000000 50000000 100000 1000000 100000 1000000 0 0 0 0 1171000 825000 0 0 367000 -255000 704000 0 68000 -853000 350000 -219000 25686000 24809000 11690000 12669000 3848000 3352000 1569000 1220000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left;">3. Research and Development: We invested <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">in research and development activities. The amount invested in the nine months ended January 31, 2015 and 2014 was $1,220 and $1,569 respectively.</font></div><div><br /></div></div> 8483000 8134000 12392000 3326000 9819000 3860000 11083000 32639000 35226000 10844000 22834000 22820000 7757000 6984000 2015-12-31 0 22000 0.92 1.41 1.90 2420688 2420688 2420688 1.42 0.49 7262064 7200000 22000 0 21647000 21298000 25094000 24354000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #222222; background-color: #ffffff;">7.&#160; </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000;">Subsequent Events: </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; background-color: #ffffff;">The Company evaluated its January 31, 2015 financial statements for subsequent events through March 17, 2015, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the financial statements other than the items listed below.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas in June 2012.&#160; After hearing the evidence, in March 2014 the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,424 in .&#160; Bally appealed the verdict.&#160; In February of 2015, BHCMC and BHC Development agreed to accept the sum of $1,324 in satisfaction of the judgment.&#160; This amount was received in February 2015.&#160; BHCMC and BHC Development have further agreed to return to Bally its system-related equipment.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; color: #000000; text-align: left; background-color: #ffffff;">Butler National Corporation, its management, or subsidiaries have no ownership interest in BHCI or BHCD.</div><div><br /></div><div><br /></div></div> 600000 600000 732000 732000 59019173 60893092 60893092 59019173 60893092 60893092 59019173 59019173 0 1 1 1 1 3 3 1 1 1 177000 55000 3255000 3044000 -337000 -328000 758000 1070000 4071000 4044000 930000 1267000 2953000 2841000 200000 200000 1000 100 1000 100 3596000 2520000 1324000 1424000 EXCEL 12 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0`!@`(````(0#67\;=M@$``#,/```3``@"6T-O;G1E;G1?5'EP97-= M+GAM;""B!`(HH``"```````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M```````````````````````````````````````````````````````````` M``````````````````````````````````````#,E\M.PS`41/=(_$/D+6I< MES=JRH+'$BH!'V#LVR:J8UNV*>W?+,Z,7*AEPMLPYEZJB1P#[W6[%UPYF\"F3FHTV*!_#R/Y M85+V,,/'"Y(`)K+L;K&P\2J8]-Y42B8DY5.K?[ATE@XY[FS7Q++R\00Q&-_H MT,S\;K#<]XQ'$RH-V5"&]"1KQ.`SPS]=F+P[-\FWBVR@=*-1I4`[]5'C">31 M!Y`ZE@"I-GD[YK6L[(I[BW^[./)V$`<&:=ZO%=Z3HT>$XY0(QQD1CG,B'!=$ M."Z)<%P1X;@FPB&Z5$"H)*J@$JF"2J8**J$JJ*2JH!*K@DJN"BK!*J@D:^^_ MDC5A)0#>7O^>J:W,CG_2F.8&XH&_(PO170'V!UBUN&9WQZ,0A%3!NL=MZD-K1RR(^QO^*&30 M5%`->H,W;ROOX`L``/__`P!02P,$%``&``@````A`+55,"/U````3`(```L` M"`)?]=J>*V?5@^@8B)G:13'&HX<85?=WFQ?>*24FV+7 M^ZBRBXL:NI3\(V(T'4\4"_'L)MI<3_3_MCAQ(DN)T$C@\SS?BG-`Z^N!+I]HJ?B]SCSBIX3A363X M8<'%#U1?````__\#`%!+`P04``8`"````"$`^'8)1)(!``#0#0``&@`(`7AL M+U]R96QS+W=O\>)5YOWMDE>E76UT1F#4E+F1CM,K843FV65]?K1Y5(WUXR55UYY)01;N,5=YWMYR[ MO%*M="/3*1U6]L:VTH>A+7DG\X,L%1=I.N/V9PVV/JN9;(N,V6T1]M\=N[#S MW[7-?E_GZM[D+ZW2_L(6_,W8@ZN4\J&HM*7R&>NG'#^M+$9!,>.7Q<"86`V, M43G4<`"E0PT'92,@IE4^!%H-H3D-^>D)F$'SF!KZI`XZ^JFO\,XQ,2"(U8!` MY5##`90.-1R&PO=V]R:V)O;VLN>&ULE%7;3N,P$'U?:?\ARON22TNYB!85FM568ENT+?`8 MF63:6#AVL%U:^/J=I-LP24!B7YJ,G3D^<^9X>G&YRX7S`MIP)8=N<.2[#LA$ MI5RNA^[=\N>/4]E3JR4$`:89N9FUQ[GDF MR2!GYD@5('%GI73.+(9Z[9E"`TM-!F!SX86^/_!RQJ6[1SC77\%0JQ5/8**2 M30[2[D$T"&:1OLEX8=S1Q8H+N-]7Y+"BF+$<>>^$ZPAF;)1R"^G0/<90;:&Q MH#?%U88+W#WK^3W7&]5%WFHGA17;"+O$\@[HJ%?8#\-!^64IQ3V'K7E/*D-G M]\!EJK;EIRCM:QWUD,"VVGK@JNT7\'5F#XL([Q'\2D$\IWHZLBKO MH$B,G8HC:;E]C:=RKSY7V,)2]2E6%KB./N?XHJ=I4!*G*-?SV22:+:))C&^+ M^I=YGBD8M M`ZI>UVY$\P^R@T9VQV65]ID2*4[!.'K>E-.@U(`W*`34:!BT9&@T\*-TZK.@ M8[1.(S^`"!L,.L:[DPG>L+72_`WOV=1"WE"0GH_#%>E[U57#T9@PD>#,+A_5 MT.L?#W!DE5\<_K9&?P$``/__`P!02P,$%``&``@````A`"F%(/^/!@``9AL` M`!@```!X;"]W;W)KWE.0X!H@*`D/3WS]VNG#'95&B:\S#0^QT6=JK++V$\? 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Borrowings
9 Months Ended
Jan. 31, 2015
Borrowings [Abstract]  
Borrowings
4. Debt: At January 31, 2015, the Company was utilizing three lines of credit totaling $4.0 million. The unused line at January 31, 2015 was $2.5 million. These funds were primarily used for the purchase of inventory and aircraft modification Supplemental Type Certificate ("STC") development costs for modifications and avionics.

Our $1.0 million line of credit has been extended to August 2015. 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, 2015, there were several notes collateralized by aircraft security agreements totaling $1,560. These notes were used for the purchase and modifications of these collateralized aircraft and Butler Avionics, Inc.

There are three notes at a bank totaling $1,213 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 $309 remains for real estate purchased in Dodge City, Kansas and matures in June 2016.

One note collateralized by automobiles and equipment totals an additional $53 and matures in June 2016.

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 these financed payables are $635.

BHCMC, LLC ("BHCMC") entered into an agreement dated May 1, 2011, and amended via an addendum dated January 1, 2012, with BHC Investment Company, L.C. ("BHCI") for a total obligation of $7,423.  BHCI provided funds to BHCMC for the purchase of certain intangible items and gaming items related to the Boot Hill Casino.  Commencing on January 1, 2012, BHCMC is obligated to make a minimum payment to BHCI of $177 per month until September 30, 2017.  The remaining balance on the obligation is $3,511.

On August 24, 2012 BHCMC and BHCI entered into a second agreement of $2,500 for tenant improvements related to expansion of the Boot Hill Casino.  Commencing on November 1, 2012. BHCMC is obligated to make a minimum payment to BHCI of approximately $55 per month until November 30, 2017.  The remaining obligation is $1,557.

We are not in default of any of our notes as of January 31, 2015.
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 2015 and beyond.

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Research and Development
9 Months Ended
Jan. 31, 2015
Research and Development [Abstract]  
Research and Development
3. Research and Development: We invested in research and development activities. The amount invested in the nine months ended January 31, 2015 and 2014 was $1,220 and $1,569 respectively.

XML 17 R2.htm IDEA: XBRL DOCUMENT v2.4.1.9
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)
In Thousands, unless otherwise specified
Jan. 31, 2015
Apr. 30, 2014
CURRENT ASSETS:    
Cash $ 5,052us-gaap_Cash $ 6,261us-gaap_Cash
Accounts receivable 2,456us-gaap_AccountsReceivableNetCurrent 3,109us-gaap_AccountsReceivableNetCurrent
Inventories    
Raw materials 5,330us-gaap_InventoryRawMaterialsNetOfReserves 5,102us-gaap_InventoryRawMaterialsNetOfReserves
Work in process 2,205us-gaap_InventoryWorkInProcessNetOfReserves 1,090us-gaap_InventoryWorkInProcessNetOfReserves
Finished goods 144us-gaap_InventoryFinishedGoodsNetOfReserves 144us-gaap_InventoryFinishedGoodsNetOfReserves
Total inventory 7,679us-gaap_InventoryNet 6,336us-gaap_InventoryNet
Prepaid expenses and other current assets 1,171us-gaap_PrepaidExpenseAndOtherAssetsCurrent 825us-gaap_PrepaidExpenseAndOtherAssetsCurrent
Total current assets 16,358us-gaap_AssetsCurrent 16,531us-gaap_AssetsCurrent
PROPERTY, PLANT AND EQUIPMENT:    
Land and building 4,071buks_LandAndBuildingGross 4,044buks_LandAndBuildingGross
Aircraft 7,300us-gaap_FlightEquipmentOwnedGross 6,723us-gaap_FlightEquipmentOwnedGross
Machinery and equipment 3,586us-gaap_MachineryAndEquipmentGross 3,535us-gaap_MachineryAndEquipmentGross
Office furniture and fixtures 6,648us-gaap_FurnitureAndFixturesGross 6,447us-gaap_FurnitureAndFixturesGross
Leasehold improvements 4,081us-gaap_LeaseholdImprovementsGross 4,060us-gaap_LeaseholdImprovementsGross
Property, plant and equipment, gross 25,686us-gaap_PropertyPlantAndEquipmentGross 24,809us-gaap_PropertyPlantAndEquipmentGross
Accumulated depreciation (13,996)us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment (12,140)us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
Total property, plant and equipment 11,690us-gaap_PropertyPlantAndEquipmentNet 12,669us-gaap_PropertyPlantAndEquipmentNet
SUPPLEMENTAL TYPE CERTIFICATES (net of amortization of $2,953 at January 31, 2015 and $2,841 at April 30, 2014) 4,938us-gaap_IntangibleAssetsNetExcludingGoodwill 3,744us-gaap_IntangibleAssetsNetExcludingGoodwill
OTHER ASSETS:    
Deferred tax asset 1,335us-gaap_DeferredTaxAssetsNetNoncurrent 1,335us-gaap_DeferredTaxAssetsNetNoncurrent
Other assets (net of accumulated amortization of $3,596 at January 31, 2015 and $2,520 at April 30, 2014) 7,312us-gaap_OtherAssetsNoncurrent 7,399us-gaap_OtherAssetsNoncurrent
Total other assets 8,647us-gaap_AssetsNoncurrent 8,734us-gaap_AssetsNoncurrent
Total Assets 41,633us-gaap_Assets 41,678us-gaap_Assets
CURRENT LIABILITIES:    
Promissory notes 1,502us-gaap_LinesOfCreditCurrent 1,757us-gaap_LinesOfCreditCurrent
Current maturities of long-term debt 3,627us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrent 3,908us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrent
Accounts payable 1,533us-gaap_AccountsPayableCurrent 1,375us-gaap_AccountsPayableCurrent
Customer deposits 2,192us-gaap_CustomerDepositsCurrent 982us-gaap_CustomerDepositsCurrent
Gaming facility mandated payment 930buks_GamingFacilityMandatedPayment 1,267buks_GamingFacilityMandatedPayment
Compensation and compensated absences 1,156us-gaap_EmployeeRelatedLiabilitiesCurrent 1,122us-gaap_EmployeeRelatedLiabilitiesCurrent
Other current liabilities 388us-gaap_OtherLiabilitiesCurrent 93us-gaap_OtherLiabilitiesCurrent
Total current liabilities 11,328us-gaap_LiabilitiesCurrent 10,504us-gaap_LiabilitiesCurrent
LONG-TERM DEBT, NET OF CURRENT MATURITIES: 5,211us-gaap_LongTermDebtAndCapitalLeaseObligations 6,820us-gaap_LongTermDebtAndCapitalLeaseObligations
Total liabilities 16,539us-gaap_Liabilities 17,324us-gaap_Liabilities
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS' EQUITY:    
Common stock, par value $.01: authorized 100,000,000 shares issued and outstanding 61,493,092 shares at January 31, 2015 and 61,493,092 shares at April 30, 2014 614us-gaap_CommonStockValueOutstanding 614us-gaap_CommonStockValueOutstanding
Capital contributed in excess of par 13,282us-gaap_AdditionalPaidInCapital 13,282us-gaap_AdditionalPaidInCapital
Treasury stock at cost, 600,000 shares (732)us-gaap_TreasuryStockValue (732)us-gaap_TreasuryStockValue
Retained Earnings 8,483us-gaap_RetainedEarningsAccumulatedDeficit 8,134us-gaap_RetainedEarningsAccumulatedDeficit
Total stockholders' equity Butler National Corporation 21,647us-gaap_StockholdersEquity 21,298us-gaap_StockholdersEquity
Noncontrolling Interest in BHCMC, LLC 3,447us-gaap_MinorityInterest 3,056us-gaap_MinorityInterest
Total stockholders' equity 25,094us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest 24,354us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
Total Liabilities and Stockholders' Equity 41,633us-gaap_LiabilitiesAndStockholdersEquity 41,678us-gaap_LiabilitiesAndStockholdersEquity
Preferred Class A [Member]    
STOCKHOLDERS' EQUITY:    
Preferred stock 0us-gaap_PreferredStockValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
0us-gaap_PreferredStockValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
Preferred Class B [Member]    
STOCKHOLDERS' EQUITY:    
Preferred stock $ 0us-gaap_PreferredStockValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
$ 0us-gaap_PreferredStockValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
XML 18 R6.htm IDEA: XBRL DOCUMENT v2.4.1.9
Organization, Consolidated and Presentation of Financial Statements
9 Months Ended
Jan. 31, 2015
Organization, Consolidated and Presentation of Financial Statements [Abstract]  
Organization, Consolidated and Presentation of Financial Statements
1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the annual report on Form 10-K for the fiscal year ended April 30, 2014. In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three and nine months ended January 31, 2015 are not indicative of the results of operations that may be expected for the fiscal year ended April 30, 2015.

Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. Financial amounts are in thousands of dollars except per share amounts.

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Net Income (Loss) Per Share
9 Months Ended
Jan. 31, 2015
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share
2. Net Income (Loss) Per Share: The Company follows ASC 260 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net earnings (loss) per share are excluded. The number of potential common shares as of January 31, 2015 is 66,281,237.

XML 21 R3.htm IDEA: XBRL DOCUMENT v2.4.1.9
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 30, 2014
Jan. 31, 2015
Jan. 31, 2014
ASSETS      
SUPPLEMENTAL TYPE CERTIFICATES net of amortization $ 2,841buks_SupplementalTypeCertificatesAccumulatedAmortization $ 2,953buks_SupplementalTypeCertificatesAccumulatedAmortization  
OTHER ASSETS      
Other assets, accumulated amortization 2,520buks_AccumulatedAmortizationOtherAssets 3,596buks_AccumulatedAmortizationOtherAssets  
STOCKHOLDERS' EQUITY:      
Common stock, par value (in dollars per share) $ 0.01us-gaap_CommonStockParOrStatedValuePerShare $ 0.01us-gaap_CommonStockParOrStatedValuePerShare  
Common stock, shares authorized (in shares) 100,000,000us-gaap_CommonStockSharesAuthorized 100,000,000us-gaap_CommonStockSharesAuthorized  
Common stock, shares issued (in shares) 61,493,092us-gaap_CommonStockSharesIssued 61,493,092us-gaap_CommonStockSharesIssued  
Common stock, shares outstanding (in shares) 61,493,092us-gaap_CommonStockSharesOutstanding 61,493,092us-gaap_CommonStockSharesOutstanding  
Common stock, shares owed but not issued (in shares) 0us-gaap_CommonStockSharesSubscribedButUnissued 0us-gaap_CommonStockSharesSubscribedButUnissued  
Treasury stock (in shares) 600,000us-gaap_TreasuryStockShares 600,000us-gaap_TreasuryStockShares  
Class A [Member]      
STOCKHOLDERS' EQUITY:      
Preferred stock, par value (in dollars per share) $ 5us-gaap_PreferredStockParOrStatedValuePerShare
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
$ 5us-gaap_PreferredStockParOrStatedValuePerShare
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, shares authorized (in shares) 50,000,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
50,000,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, stated value (in dollars per share) $ 100buks_PreferredStockStatedValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
$ 100buks_PreferredStockStatedValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, dividend rate (in hundredths) 9.80%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
9.80%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, liquidation preference value (in hundredths) 9.80%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
9.80%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, redemption value 100us-gaap_PreferredStockRedemptionAmount
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
100us-gaap_PreferredStockRedemptionAmount
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, shares issued (in shares) 0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Preferred stock, shares outstanding (in shares) 0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
 
Class B [Member]      
STOCKHOLDERS' EQUITY:      
Preferred stock, par value (in dollars per share) $ 5us-gaap_PreferredStockParOrStatedValuePerShare
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
$ 5us-gaap_PreferredStockParOrStatedValuePerShare
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Preferred stock, shares authorized (in shares) 50,000,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
50,000,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Preferred stock, stated value (in dollars per share) $ 1,000buks_PreferredStockStatedValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
$ 1,000buks_PreferredStockStatedValue
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Preferred stock, dividend rate (in hundredths)   6.00%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
6.00%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
Preferred stock, liquidation preference value (in hundredths)   6.00%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
6.00%us-gaap_PreferredStockDividendRatePercentage
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
Preferred stock, redemption value $ 1,000us-gaap_PreferredStockRedemptionAmount
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
$ 1,000us-gaap_PreferredStockRedemptionAmount
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Preferred stock, shares issued (in shares) 0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Preferred stock, shares outstanding (in shares) 0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassBMember
 
Class A and B [Member]      
STOCKHOLDERS' EQUITY:      
Preferred stock, designated classes (in shares) 200,000buks_PreferredStockDesignatedClassesShares
/ us-gaap_StatementClassOfStockAxis
= buks_ClassAndBMember
200,000buks_PreferredStockDesignatedClassesShares
/ us-gaap_StatementClassOfStockAxis
= buks_ClassAndBMember
 
XML 22 R17.htm IDEA: XBRL DOCUMENT v2.4.1.9
Stockholders' Equity (Details)
Jan. 31, 2015
Apr. 30, 2014
Stockholders' Equity [Abstract]    
Common stock, shares issued (in shares) 61,493,092us-gaap_CommonStockSharesIssued 61,493,092us-gaap_CommonStockSharesIssued
XML 23 R1.htm IDEA: XBRL DOCUMENT v2.4.1.9
Document and Entity Information
9 Months Ended
Jan. 31, 2015
Mar. 06, 2015
Document and Entity Information [Abstract]    
Entity Registrant Name BUTLER NATIONAL CORP  
Entity Central Index Key 0000015847  
Current Fiscal Year End Date --04-30  
Entity Well-known Seasoned Issuer No  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   61,493,092dei_EntityCommonStockSharesOutstanding
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q3  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jan. 31, 2015  
XML 24 R18.htm IDEA: XBRL DOCUMENT v2.4.1.9
Stock Options (Details) (USD $)
1 Months Ended
Dec. 31, 2010
Jan. 31, 2015
Stock Options [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares issued (in shares) 7,200,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod
/ us-gaap_AwardTypeAxis
= us-gaap_EmployeeStockOptionMember
 
Expiration date Dec. 31, 2015  
Stock exercise price (in dollars per share)   $ 1.42us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ us-gaap_AwardTypeAxis
= us-gaap_EmployeeStockOptionMember
Incentive stock options condition for vesting [Abstract]    
Shares outstanding (in shares)   7,262,064us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ us-gaap_AwardTypeAxis
= us-gaap_EmployeeStockOptionMember
Incentive Stock Option [Member] | Year 1 Target [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock exercise price (in dollars per share)   $ 0.49us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year1TargetMember
Incentive stock options condition for vesting [Abstract]    
Number of options than can be exercised (in shares)   2,420,688us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year1TargetMember
Target price of share (in dollars per share)   $ 0.92us-gaap_SharePrice
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year1TargetMember
Incentive Stock Option [Member] | Year 2 Target [Member]    
Incentive stock options condition for vesting [Abstract]    
Number of options than can be exercised (in shares)   2,420,688us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year2TargetMember
Target price of share (in dollars per share)   $ 1.41us-gaap_SharePrice
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year2TargetMember
Incentive Stock Option [Member] | Year 3 Target [Member]    
Incentive stock options condition for vesting [Abstract]    
Number of options than can be exercised (in shares)   2,420,688us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year3TargetMember
Target price of share (in dollars per share)   $ 1.90us-gaap_SharePrice
/ us-gaap_AwardTypeAxis
= us-gaap_PerformanceSharesMember
/ buks_IncentiveStockAllocationAxis
= buks_Year3TargetMember
XML 25 R4.htm IDEA: XBRL DOCUMENT v2.4.1.9
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Jan. 31, 2015
Jan. 31, 2014
Jan. 31, 2015
Jan. 31, 2014
REVENUE:        
Professional Services $ 7,757us-gaap_SalesRevenueServicesNet $ 6,984us-gaap_SalesRevenueServicesNet $ 22,834us-gaap_SalesRevenueServicesNet $ 22,820us-gaap_SalesRevenueServicesNet
Aerospace Products 3,326us-gaap_SalesRevenueGoodsNet 3,860us-gaap_SalesRevenueGoodsNet 12,392us-gaap_SalesRevenueGoodsNet 9,819us-gaap_SalesRevenueGoodsNet
Total revenue 11,083us-gaap_SalesRevenueNet 10,844us-gaap_SalesRevenueNet 35,226us-gaap_SalesRevenueNet 32,639us-gaap_SalesRevenueNet
COSTS AND EXPENSES:        
Cost of Professional Services 4,715us-gaap_CostOfServices 4,498us-gaap_CostOfServices 13,886us-gaap_CostOfServices 14,068us-gaap_CostOfServices
Cost of Aerospace Products 2,477us-gaap_CostOfGoodsSold 2,843us-gaap_CostOfGoodsSold 9,150us-gaap_CostOfGoodsSold 7,787us-gaap_CostOfGoodsSold
Marketing and advertising 1,010us-gaap_MarketingAndAdvertisingExpense 868us-gaap_MarketingAndAdvertisingExpense 3,311us-gaap_MarketingAndAdvertisingExpense 3,185us-gaap_MarketingAndAdvertisingExpense
Employee benefits 487us-gaap_EmployeeBenefitsAndShareBasedCompensation 571us-gaap_EmployeeBenefitsAndShareBasedCompensation 1,352us-gaap_EmployeeBenefitsAndShareBasedCompensation 1,651us-gaap_EmployeeBenefitsAndShareBasedCompensation
Depreciation and amortization 693us-gaap_DepreciationDepletionAndAmortization 870us-gaap_DepreciationDepletionAndAmortization 2,244us-gaap_DepreciationDepletionAndAmortization 2,630us-gaap_DepreciationDepletionAndAmortization
General, administrative and other 1,166us-gaap_OtherGeneralAndAdministrativeExpense 1,176us-gaap_OtherGeneralAndAdministrativeExpense 3,575us-gaap_OtherGeneralAndAdministrativeExpense 3,356us-gaap_OtherGeneralAndAdministrativeExpense
Total costs and expenses 10,548us-gaap_OperatingCostsAndExpenses 10,826us-gaap_OperatingCostsAndExpenses 33,518us-gaap_OperatingCostsAndExpenses 32,677us-gaap_OperatingCostsAndExpenses
OPERATING INCOME 535us-gaap_OperatingIncomeLoss 18us-gaap_OperatingIncomeLoss 1,708us-gaap_OperatingIncomeLoss (38)us-gaap_OperatingIncomeLoss
OTHER INCOME (EXPENSE):        
Interest expense (251)us-gaap_InterestExpense (348)us-gaap_InterestExpense (843)us-gaap_InterestExpense (1,100)us-gaap_InterestExpense
Other income, net 5us-gaap_OtherNonoperatingIncomeExpense 2us-gaap_OtherNonoperatingIncomeExpense 12us-gaap_OtherNonoperatingIncomeExpense 42us-gaap_OtherNonoperatingIncomeExpense
Total other income (expense), (246)us-gaap_NonoperatingIncomeExpense (346)us-gaap_NonoperatingIncomeExpense (831)us-gaap_NonoperatingIncomeExpense (1,058)us-gaap_NonoperatingIncomeExpense
INCOME (LOSS) BEFORE INCOME TAXES 289us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments (328)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments 877us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments (1,096)us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
Net income (loss) 289us-gaap_NetIncomeLoss (227)us-gaap_NetIncomeLoss 741us-gaap_NetIncomeLoss (737)us-gaap_NetIncomeLoss
Net income attributable to noncontrolling interest in BHCMC, LLC (221)us-gaap_NetIncomeLossAttributableToNoncontrollingInterest 8us-gaap_NetIncomeLossAttributableToNoncontrollingInterest (391)us-gaap_NetIncomeLossAttributableToNoncontrollingInterest (116)us-gaap_NetIncomeLossAttributableToNoncontrollingInterest
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION 68us-gaap_ProfitLoss (219)us-gaap_ProfitLoss 350us-gaap_ProfitLoss (853)us-gaap_ProfitLoss
PROVISION FOR INCOME TAXES        
Provision (benefit) for income taxes $ 0us-gaap_CurrentIncomeTaxExpenseBenefit $ (101)us-gaap_CurrentIncomeTaxExpenseBenefit $ 136us-gaap_CurrentIncomeTaxExpenseBenefit $ (359)us-gaap_CurrentIncomeTaxExpenseBenefit
BASIC EARNINGS PER COMMON SHARE (in dollars per share) $ 0.00us-gaap_EarningsPerShareBasic $ 0.00us-gaap_EarningsPerShareBasic $ 0.01us-gaap_EarningsPerShareBasic $ (0.01)us-gaap_EarningsPerShareBasic
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) 60,893,092us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 59,019,173us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 60,893,092us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 59,019,173us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) $ 0.00us-gaap_EarningsPerShareDiluted $ 0.00us-gaap_EarningsPerShareDiluted $ 0.01us-gaap_EarningsPerShareDiluted $ (0.01)us-gaap_EarningsPerShareDiluted
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) 60,893,092us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 59,019,173us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 60,893,092us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 59,019,173us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding
XML 26 R12.htm IDEA: XBRL DOCUMENT v2.4.1.9
Subsequent Events
9 Months Ended
Jan. 31, 2015
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
7.  Subsequent Events: The Company evaluated its January 31, 2015 financial statements for subsequent events through March 17, 2015, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the financial statements other than the items listed below.

BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas in June 2012.  After hearing the evidence, in March 2014 the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,424 in .  Bally appealed the verdict.  In February of 2015, BHCMC and BHC Development agreed to accept the sum of $1,324 in satisfaction of the judgment.  This amount was received in February 2015.  BHCMC and BHC Development have further agreed to return to Bally its system-related equipment.

Butler National Corporation, its management, or subsidiaries have no ownership interest in BHCI or BHCD.


XML 27 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Stock Options
9 Months Ended
Jan. 31, 2015
Stock Options [Abstract]  
Stock Options
6. Stock Options: At January 31, 2015 we had 7,262,064 outstanding stock options that were issued on December 31, 2010 all of which expire on December 31, 2015.

The exercise price for the incentive stock options is $0.49. The Board of Directors approved the issuance of incentive stock options on December 31, 2010 with the goals of increasing shareholder value, expanding the number of managers participating in the program, and increasing the percentage of compensation tied to share price performance.

The incentive stock options are allocated in three groups with two conditions for vesting. The first condition is stock price and the second condition is time. There are 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $0.92, and 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $1.41, and 2,420,688 options at $0.49 that may be exercised on or after December 31, 2013 if and when the share price reaches $1.90.

XML 28 R19.htm IDEA: XBRL DOCUMENT v2.4.1.9
Subsequent Events (Details) (USD $)
In Thousands, unless otherwise specified
Feb. 02, 2015
Mar. 07, 2014
Subsequent Event [Line Items]    
Damages Awarded to Plaintiff   $ 1,424buks_DamagesAwardedToPlaintiff
Damages Received from Defendant $ 1,324buks_DamagesReceivedFromDefendant  
XML 29 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Borrowings (Details) (USD $)
Jan. 31, 2015
Note
Jul. 31, 2014
Line of Credit [Member]    
Debt Instrument [Line Items]    
Number of lines of credit 3buks_NumberOfLineOfCredit
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_LineOfCreditMember
 
Unused line $ 2,500,000us-gaap_LineOfCreditFacilityRemainingBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_LineOfCreditMember
 
Line of Credit Facility, Maximum Borrowing Capacity 4,000,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_LineOfCreditMember
 
Line of credit facility borrowing capacity 4,000,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_LineOfCreditMember
 
Line of Credit 1 [Member]    
Debt Instrument [Line Items]    
Number of lines of credit 1buks_NumberOfLineOfCredit
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit1Member
 
Line of Credit Facility, Maximum Borrowing Capacity 1,000,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit1Member
 
Line of credit facility borrowing capacity 1,000,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit1Member
 
Line of Credit 2 [Member]    
Debt Instrument [Line Items]    
Number of lines of credit 1buks_NumberOfLineOfCredit
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit2Member
 
Line of Credit Facility, Maximum Borrowing Capacity 2,500,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit2Member
 
Line of credit facility borrowing capacity 2,500,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_LineOfCredit2Member
 
Line of Credit 3 [Member]    
Debt Instrument [Line Items]    
Number of lines of credit 1buks_NumberOfLineOfCredit
/ us-gaap_LongtermDebtTypeAxis
= buks_BuksLineofcredit3Member
 
Line of Credit Facility, Maximum Borrowing Capacity 500,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_BuksLineofcredit3Member
 
Line of credit facility borrowing capacity 500,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_LongtermDebtTypeAxis
= buks_BuksLineofcredit3Member
 
Notes Collateralized by Aircraft Security Agreements [Member]    
Debt Instrument [Line Items]    
Notes payable 1,560,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_SecuredDebtMember
 
Notes Payable to Bank [Member]    
Debt Instrument [Line Items]    
Notes payable 1,213,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_NotesPayableToBanksMember
 
Number of notes 3buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= us-gaap_NotesPayableToBanksMember
 
Notes for Real Estate [Member]    
Debt Instrument [Line Items]    
Notes payable 309,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_NotesForRealEstateMember
 
Number of notes 1buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= buks_NotesForRealEstateMember
 
Notes Collateralized by Automobiles and Equipment [Member]    
Debt Instrument [Line Items]    
Notes payable 53,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_NotesCollateralizedByAutomobilesAndEquipmentMember
 
Note With Konami Gaming [Member]    
Debt Instrument [Line Items]    
Notes payable 0us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_NoteWithKonamiGamingMember
 
Number of notes 0buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= buks_NoteWithKonamiGamingMember
 
Face value of note entered 0us-gaap_DebtInstrumentFaceAmount
/ us-gaap_LongtermDebtTypeAxis
= buks_NoteWithKonamiGamingMember
 
BHCMC Lottery Gaming Machines [Member]    
Debt Instrument [Line Items]    
Notes payable 635,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_BhcmcLotteryGamingMachinesMember
 
Number of notes 1buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= buks_BhcmcLotteryGamingMachinesMember
 
Second Obligation With BHCI [Member]    
Debt Instrument [Line Items]    
Notes payable 1,557,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_SecondObligationWithBhciMember
 
Number of notes 1buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= buks_SecondObligationWithBhciMember
 
Face value of note entered 2,500,000us-gaap_DebtInstrumentFaceAmount
/ us-gaap_LongtermDebtTypeAxis
= buks_SecondObligationWithBhciMember
 
Second BHCI Obligation Payment   55,000buks_SecondBhciObligationPayment
/ us-gaap_LongtermDebtTypeAxis
= buks_SecondObligationWithBhciMember
Obligation With BHCI [Member]    
Debt Instrument [Line Items]    
Notes payable 3,511,000us-gaap_NotesPayable
/ us-gaap_LongtermDebtTypeAxis
= buks_ObligationWithBHCIMember
 
Number of notes 1buks_NumberOfNotes
/ us-gaap_LongtermDebtTypeAxis
= buks_ObligationWithBHCIMember
 
First Obligation With BHCI [Member]    
Debt Instrument [Line Items]    
Face value of note entered 7,423,000us-gaap_DebtInstrumentFaceAmount
/ us-gaap_LongtermDebtTypeAxis
= buks_FirstObligationWithBhciMember
 
First BHCI Obligation Payment $ 177,000buks_BuksFirstBhciObligationPayment
/ us-gaap_LongtermDebtTypeAxis
= buks_FirstObligationWithBhciMember
 
XML 30 R13.htm IDEA: XBRL DOCUMENT v2.4.1.9
Net Income (Loss) Per Share (Details)
9 Months Ended
Jan. 31, 2015
Net Income (Loss) Per Share [Abstract]  
Potential common shares excluded from earnings per share calculation (in shares) 66,281,237us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
XML 31 R14.htm IDEA: XBRL DOCUMENT v2.4.1.9
Research and Development (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Jan. 31, 2015
Jan. 31, 2014
Research and Development [Abstract]    
Research and development $ 1,220us-gaap_ResearchAndDevelopmentExpense $ 1,569us-gaap_ResearchAndDevelopmentExpense
XML 32 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
Other Assets (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Jan. 31, 2015
Kansas Expanded Lottery Act Contract Privilege [Member]  
Finite-Lived Intangible Assets [Line Items]  
Other intangible assets $ 5,500us-gaap_OtherIntangibleAssetsNet
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= buks_KansasExpandedLotteryActContractPrivilegeFeeMember
Intangible Gaming Support Items [Member]  
Finite-Lived Intangible Assets [Line Items]  
Other intangible assets 3,011us-gaap_OtherIntangibleAssetsNet
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= buks_IntangibleGamingSupportItemsMember
JET Autopilot Intellectual Property [Member]  
Finite-Lived Intangible Assets [Line Items]  
Other intangible assets $ 1,417us-gaap_OtherIntangibleAssetsNet
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= buks_JetAutopilotIntellectualPropertyMember
Useful life 15 years
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Jan. 31, 2015
Jan. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 741us-gaap_NetIncomeLoss $ (737)us-gaap_NetIncomeLoss
Adjustments to reconcile cash flows from operating activities    
Depreciation and amortization 3,044buks_DepreciationAndAmortizationExcludingAmortizationOfSupplementalTypeCertificates 3,255buks_DepreciationAndAmortizationExcludingAmortizationOfSupplementalTypeCertificates
Stock issued for services 0us-gaap_ShareBasedCompensation 22us-gaap_ShareBasedCompensation
Gain and loss on disposal of other assets 0us-gaap_GainLossOnSaleOfOtherAssets (36)us-gaap_GainLossOnSaleOfOtherAssets
Increase (Decrease) in Deferred Income Taxes 0us-gaap_IncreaseDecreaseInDeferredIncomeTaxes (424)us-gaap_IncreaseDecreaseInDeferredIncomeTaxes
Increase (Decrease) in Other Noncurrent Assets (231)us-gaap_IncreaseDecreaseInOtherNoncurrentAssets 12us-gaap_IncreaseDecreaseInOtherNoncurrentAssets
Changes in assets and liabilities    
Accounts receivable 653us-gaap_IncreaseDecreaseInAccountsReceivable 974us-gaap_IncreaseDecreaseInAccountsReceivable
Income tax receivable 0us-gaap_IncreaseDecreaseInIncomeTaxesReceivable 1,185us-gaap_IncreaseDecreaseInIncomeTaxesReceivable
Inventories (1,343)us-gaap_IncreaseDecreaseInInventories (1,116)us-gaap_IncreaseDecreaseInInventories
Prepaid expenses and other current assets (346)us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets 62us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
Accounts payable 157us-gaap_IncreaseDecreaseInAccountsPayable (258)us-gaap_IncreaseDecreaseInAccountsPayable
Customer deposits 1,210us-gaap_IncreaseDecreaseInCustomerDeposits 887us-gaap_IncreaseDecreaseInCustomerDeposits
Accrued liabilities 34us-gaap_IncreaseDecreaseInAccruedLiabilities (56)us-gaap_IncreaseDecreaseInAccruedLiabilities
Gaming facility mandated payment (337)buks_IncreaseDecreaseInGamingFacilityMandatedPayment (328)buks_IncreaseDecreaseInGamingFacilityMandatedPayment
Other liabilities 295us-gaap_IncreaseDecreaseInOtherOperatingLiabilities 136us-gaap_IncreaseDecreaseInOtherOperatingLiabilities
Increase (Decrease) in Deferred Income Taxes 0us-gaap_IncreaseDecreaseInDeferredIncomeTaxes (424)us-gaap_IncreaseDecreaseInDeferredIncomeTaxes
Increase (Decrease) in Other Noncurrent Assets (231)us-gaap_IncreaseDecreaseInOtherNoncurrentAssets 12us-gaap_IncreaseDecreaseInOtherNoncurrentAssets
Cash flows from operating activities 3,877us-gaap_NetCashProvidedByUsedInOperatingActivities 3,578us-gaap_NetCashProvidedByUsedInOperatingActivities
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash flows from investing activities (2,183)us-gaap_NetCashProvidedByUsedInInvestingActivities (174)us-gaap_NetCashProvidedByUsedInInvestingActivities
CASH FLOWS FROM FINANCING ACTIVITIES    
Borrowings of promissory notes, net (255)us-gaap_ProceedsFromRepaymentsOfLinesOfCredit 367us-gaap_ProceedsFromRepaymentsOfLinesOfCredit
Contributed capital 0us-gaap_ProceedsFromContributedCapital 0us-gaap_ProceedsFromContributedCapital
Borrowings on long-term debt 704us-gaap_ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet 0us-gaap_ProceedsFromIssuanceOfLongTermDebtAndCapitalSecuritiesNet
Repayments of long-term debt (3,352)us-gaap_RepaymentsOfLongTermDebtAndCapitalSecurities (3,848)us-gaap_RepaymentsOfLongTermDebtAndCapitalSecurities
Cash flows from financing activities (2,903)us-gaap_NetCashProvidedByUsedInFinancingActivities (3,481)us-gaap_NetCashProvidedByUsedInFinancingActivities
NET DECREASE IN CASH (1,209)us-gaap_CashPeriodIncreaseDecrease (77)us-gaap_CashPeriodIncreaseDecrease
CASH, beginning of period 6,261us-gaap_Cash 5,148us-gaap_Cash
CASH, end of period 5,052us-gaap_Cash 5,071us-gaap_Cash
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Interest paid 843us-gaap_InterestPaid 1,102us-gaap_InterestPaid
Income taxes paid 0us-gaap_IncomeTaxesPaid 0us-gaap_IncomeTaxesPaid
NON CASH OPERATING ACTIVITY    
Non cash stock issued for services 0us-gaap_StockIssued1 22us-gaap_StockIssued1
Intangible gaming equipment and notes $ 758buks_CapitalizedLeaseIntangibleAssets $ 1,070buks_CapitalizedLeaseIntangibleAssets

XML 35 R10.htm IDEA: XBRL DOCUMENT v2.4.1.9
Other Assets
9 Months Ended
Jan. 31, 2015
Other Assets [Abstract]  
Other Assets
5. Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $3,011 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417.  BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the Management Contract with the State of Kansas which will end in December 2024.  There is no assurance of the Management Contract renewal.  The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.  The JET intellectual property is being amortized over a period of 15 years.

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Uncategorized Items
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USD ($)
5/1/2014 - 7/31/2014
USD ($)
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