Note 16 - Segment Reporting and Sales by Major Customer

9 Months Ended

Jan. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

16. 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, mapping, environmental research, search and rescue, 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. Ruggedized electrical fabrication is another recognized specialty. 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") and its wholly owned subsidiary BHCMC, LLC provide management services to the Boot Hill Casino, a "state-owned casino".

Three Months Ended January 31, 2024	Gaming		Aircraft Modification		Aircraft Avionics		Special Mission Electronics		Other			Total
Revenues from customers	$	9,929	$	5,402	$	810	$	2,807	$	12		$	18,960
Interest expense		536		57		-		16		6			615
Depreciation and amortization		756		683		7		32		31			1,509
Operating income (loss)		3,059		546		30		1,375		(1,215	)		3,795

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		687		584		3			36		74			1,384
Operating income (loss)		2,997		1,485		(101	)		1,384		(2,380	)		3,385

Nine Months Ended January 31, 2024	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	28,687	$	16,967	$	2,332		$	7,696	$	64		$	55,746
Interest expense		1,623		173		-			48		25			1,869
Depreciation and amortization		2,235		2,121		13			94		95			4,558
Operating income (loss)		8,139		267		(26	)		3,578		(3,427	)		8,531

Nine Months Ended January 31, 2023	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	28,014	$	16,902	$	1,917		$	7,994	$	266		$	55,093
Interest expense		1,854		195		-			32		26			2,107
Depreciation and amortization		2,017		1,968		8			111		219			4,323
Operating income (loss)		8,578		2,363		(214	)		3,451		(5,166	)		9,012

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, 2024			Nine Months Ended January 31, 2023
Aerospace Products – two customers in the nine months ended January 31, 2024, two customers in the nine months ended January 31, 2023		21.9	%		24.8	%
Professional Services		-			-

In the nine months ended January 31, 2024 the Company derived 27.3% of total revenue from five Aerospace customers. The top customer provided 13.8% of total revenue while the next top four customers ranged from 1.6% to 8.1%.