Note 15 - Segment Reporting and Sales by Major Customer

9 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. Segment Reporting and Sales by Major Customer:

Industry Segmentation

Current Activities - The Company focuses on two primary activities, Professional Services and Aerospace Products.

Aerospace Products:

Aircraft Modifications principally includes the modification of customer and company owned business-size aircraft for specific operations or special missions such as addition of aerial photography capabilities and ISR modifications. We provide these services through our subsidiary, Avcon Industries, Inc. ("Aircraft Modifications" or "Avcon").

Special mission electronics principally includes the manufacture, sale, and service of electronics upgrades for classic weapon control systems used on civilian and military aircraft and vehicles. We provide the products through our subsidiary, Butler National Corporation - Tempe, Arizona.

Butler Avionics sells, installs and repairs aircraft avionics equipment (airplane radio equipment and flight control systems). These systems are flight display systems which include intuitive touchscreen controls with large display that enhance pilot situational awareness and give users unprecedented access to high-resolution terrain mapping, graphical flight planning, geo-referenced charting, traffic display, satellite weather and much more. Butler Avionics is also recognized nationwide for its troubleshooting and repair work particularly on autopilot systems.

Professional Services:

Butler National Service Corporation ("BNSC") provides management services to the Boot Hill Casino, a "state-owned casino".

BCS Design, Inc. provides licensed architectural services. These services include commercial and industrial building design.

Three Months Ended January 31, 2023	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	9,472	$	7,188	$	679		$	3,023	$	102		$	20,464
Interest expense		590		63		-			14		10			677
Depreciation and amortization		632		59		3			36		52			782
Operating income (loss)		2,997		1,485		(101	)		1,384		(2,380	)		3,385

Three Months Ended January 31, 2022	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	8,800	$	5,394	$	485		$	2,837	$	102		$	17,618
Interest expense		668		49		-			6		2			725
Depreciation and amortization		562		44		3			45		45			699
Operating income (loss)		2,867		1,464		(132	)		1,380		(1,177	)		4,402

Nine Months Ended January 31, 2023	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	28,038	$	16,902	$	1,917		$	7,994	$	242		$	55,093
Interest expense		1,854		195		-			32		26			2,107
Depreciation and amortization		1,866		170		8			111		154			2,309
Operating income (loss)		8,578		2,451		(302	)		3,451		(5,166	)		9,012

Nine Months Ended January 31, 2022	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	27,194	$	17,086	$	2,025		$	7,441	$	266		$	54,012
Interest expense		1,792		157		-			17		13			1,979
Depreciation and amortization		1,714		133		6			115		138			2,106
Operating income (loss)		9,486		3,852		(265	)		3,368		(3,274	)		13,167

Our Chief Operating Decision Maker (CODM) does not evaluate operating segments using asset or liability information.

Major Customers: Revenue from major customers (10 percent or more of consolidated revenue) were as follows:

	Nine Months Ended January 31, 2023			Nine Months Ended January 31, 2022
Aerospace Products – two customers in the nine months ended January 31, 2023, two customers in the nine months ended January 31, 2022		24.8	%		25.2	%
Professional Services		-			-

In the nine months ended January 31, 2023 the Company derived 36.0% of total revenue from five Aerospace customers. The top customer provided 14.5% of total revenue while the next top four customers ranged from 2.4% to 10.3%.