Exhibit 99 | ||||||||
PRESS RELEASE
| July 20, 2018 | |||||||
BUTLER NATIONAL CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR END FINANCIAL RESULTS AND CONFERENCE CALL
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[OLATHE, KANSAS] July 20, 2018 - Butler National Corporation (OTC QB: BUKS), a leader in the growing global market for aircraft structural modification, maintenance, repair and overhaul (MRO) and a recognized provider of gaming management services, announces its financial results for the fourth quarter fiscal 2018 and year ended April 30, 2018. In conjunction with the release, the Company has scheduled a conference call Monday, July 23, 2018 at 9:00 AM Central Daylight Time.
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Historical selected financial data related to all operations: | ||||||||
Year Ended April 30 | Quarter Ended April 30 | |||||||
(In thousands except per share data) | (In thousands except per share data) | |||||||
2018 | 2017 | 2018 | 2017 | |||||
Net Revenue | $ 48,260 | $ 50,619 | $ 14,444 | $ 15,122 | ||||
Operating Income | 2,123 | 3,500 | 721 | 1,503 | ||||
Net Income (Loss) | 341 | 1,534 | (1) | 777 | ||||
Total Assets | 41,431 | 42,778 | 41,431 | 42,778 | ||||
Long-term Obligations | 1,735 | 3,347 | 1,735 | 3,347 | ||||
Stockholders' Equity | 29,266 | 28,296 | 29,266 | 28,296 | ||||
Weighted Average Shares – Diluted | 64,388 | 63,456 | 64,388 | 63,456 | ||||
Diluted Earnings per Share | 0.01 | 0.02 | 0.00 | 0.01 | ||||
New Product Research and Development Cost | 1,763 | 1,479 | 427 | 328 |
Management Comments:
Fiscal 2018 net income was $341,000 compared to a net income of $1.5 million in fiscal 2017. Fiscal 2018 operating margin was 2.5% compared to a 5.4% operating margin in fiscal 2017. We continue to work to improve efficiencies in our implementation, operational processes, and controlling general and administrative expenses.
The fourth quarter of fiscal 2018 was a stable quarter for Butler National Corporation. Revenue decreased 4.5% to $14.4 million in fourth quarter fiscal 2018, as compared to $15.1 million in fourth quarter fiscal 2017. The fourth quarter of fiscal 2018 resulted in a net loss of $1,000 compared to a net income of $778,000 in fourth quarter fiscal 2017. Backlog has increased to $15.2 million at July 13, 2018 compared to a backlog of $11.4 million at July 14, 2017.
During fiscal 2018, we invested approximately $1.8 million in projects focused on product development of new products. We feel these expenditures for the design and development engineering, testing, and certification of new products may help stabilize our long-term revenue and enhance our profits.
This is an exciting time for Butler National Corporation. Management and all employees are focused on the execution of numerous business development opportunities as well as increasing revenue while managing costs. We believe we are positioned for the future as we focus on serving the needs of our customers and enhancing shareholder value,” commented Clark D. Stewart, President of the Company.
Business Segment Highlights
Professional Services: Revenue from Professional Services increased 1% to $31.3 million in fiscal 2018 from $30.8 million in fiscal 2017. Costs increased 2% in fiscal 2018 to $19.6 million compared to $19.1 million in fiscal 2017. Costs were 62% of segment total revenue in fiscal 2018, compared to 62% of segment total revenue in fiscal 2017. Expenses decreased 1% in fiscal 2018 to $10.0 million compared to $10.1 million in fiscal 2017. Expenses were 32% of segment total revenue in fiscal 2018, compared to 33% of segment total revenue in fiscal 2017. Operating income from Professional Services increased 6% to $1.72 million in fiscal 2018 compared to $1.62 million in fiscal 2017.
Aerospace Products: Revenue decreased 14% to $17.0 million in fiscal 2018 compared to $19.8 million in fiscal 2017. This $2.8 million decrease was due to a decrease in our aircraft modification business of $4.0 million and an increase in our avionics business of $1.2 million. We have invested in the development of several STCs. These STCs are for installation of state of the art avionics and we are aggressively marketing these solutions both domestically and internationally. Costs decreased 14% to $12.5 million in fiscal 2018 compared to $14.5 million in fiscal 2017. Costs were 74% of segment total revenue in fiscal 2018, compared to 74% of segment total revenue in fiscal 2017. Expenses increased 22% in fiscal 2018 to $4.1 million compared to $3.3 million in fiscal 2017. Expenses were 24% of segment total revenue in fiscal 2018, compared to 17% of segment total revenue in fiscal 2017. Aerospace Products had an operating income of $402,000 in fiscal 2018 compared to an operating income of $1.9 million in fiscal 2017.
Costs related to Professional Services and Aerospace Products include the cost of engineering, labor, materials, equipment utilization, control systems, security and occupancy. Expenses related to Professional Services and Aerospace Products include marketing and advertising, employee benefits, depreciation and amortization, general and administrative and other expenses.
Backlog: As of April 30, 2018, our backlog totaled approximately $13.2 million. The backlog includes firm, pending, and contract orders, which may not be completed within the next fiscal year. As of July 13, 2018, our backlog totaled approximately $15.2 million. This is standard for the industry in which modifications services and related contracts may take several months or years to complete. Such actions force backlog as additional customers request modifications, but must wait for other projects to be completed. There can be no assurance that all orders will be completed or that some may ever commence.
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Our Business:
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Forward-Looking Information:
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FOR MORE INFORMATION, CONTACT: |
David Drewitz, Public Relations www.creativeoptionscommunications.com
| Ph (972) 814-5723
Ph (913) 780-9595 |
THE WORLDWIDE WEB: Please review www.butlernational.com for pictures of our products and details about Butler National Corporation and its subsidiaries. |