Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jul. 31, 2018 | Sep. 07, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | BUTLER NATIONAL CORP | |
Entity Central Index Key | 15,847 | |
Trading Symbol | buks | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 64,718,040 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 30, 2018 | Apr. 30, 2018 |
CURRENT ASSETS: | ||
Cash | $ 7,545 | $ 7,353 |
Accounts receivable | 3,225 | 3,107 |
Income tax receivable, net | 31 | 219 |
Inventories | ||
Parts and raw materials | 6,262 | 5,858 |
Work in process | 1,222 | 1,234 |
Finished goods | 26 | 27 |
Total inventory, net of allowance | 7,510 | 7,119 |
Prepaid expenses and other current assets | 1,440 | 978 |
Total current assets | 19,751 | 18,776 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and building | 5,232 | 5,232 |
Aircraft | 6,157 | 6,157 |
Machinery and equipment | 3,942 | 3,922 |
Office furniture and fixtures | 6,724 | 6,658 |
Leasehold improvements | 4,032 | 4,032 |
26,087 | 26,001 | |
Accumulated depreciation | (15,983) | (15,725) |
Total property, plant and equipment | 10,104 | 10,276 |
SUPPLEMENTAL TYPE CERTIFICATES (net of accumulated amortization of $5,384 at July 31, 2018 and $5,164 at April 30, 2018) | 6,518 | 6,597 |
OTHER ASSETS: | ||
Deferred tax asset | 193 | 193 |
Other assets (net of accumulated amortization of $8,485 at July 31, 2018 and $8,213 at April 30, 2018) | 5,317 | 5,589 |
Total other assets | 5,510 | 5,782 |
Total assets | 41,883 | 41,431 |
CURRENT LIABILITIES: | ||
Promissory notes | 1,676 | 2,387 |
Current maturities of long-term debt | 1,555 | 1,612 |
Accounts payable | 1,927 | 2,215 |
Customer deposits | 2,736 | 1,396 |
Gaming facility mandated payment | 937 | 1,219 |
Compensation and compensated absences | 1,258 | 1,439 |
Other current liabilities | 223 | 162 |
Total current liabilities | 10,312 | 10,430 |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,389 | 1,735 |
Total liabilities | 11,701 | 12,165 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, par value $.01: authorized 100,000,000 shares issued 66,196,854 and outstanding 64,718,040 shares at July 31, 2018 and issued 66,196,854 and outstanding 64,743,317 shares at April 30, 2018 | 662 | 662 |
Capital contributed in excess of par | 14,231 | 14,231 |
Treasury stock at cost, 1,478,814 shares at July 31, 2018 and 1,453,537 shares at April 30, 2018 | (957) | (951) |
Retained earnings | 10,569 | 10,060 |
Total stockholders' equity Butler National Corporation | 24,505 | 24,002 |
Noncontrolling interest in BHCMC, LLC | 5,677 | 5,264 |
Total stockholders' equity | 30,182 | 29,266 |
Total liabilities and stockholders' equity | 41,883 | 41,431 |
Preferred Class A [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | ||
Preferred Class B [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jul. 30, 2018 | Apr. 30, 2018 | |
Supplemental type certificates, accumulated amortization | $ 5,384 | $ 5,164 |
Other assets, accumulated amortization | $ 8,485 | $ 8,213 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 66,196,854 | 66,196,854 |
Common stock, shares outstanding (in shares) | 64,718,040 | 64,743,317 |
Treasury stock, shares (in shares) | 1,478,814 | 1,453,537 |
Preferred Class A [Member] | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, dividend rate | 9.80% | 9.80% |
Preferred stock, liquidation value | $ 100 | $ 100 |
Preferred stock, redemption value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, designated classes (in shares) | 200,000 | 200,000 |
Preferred Class B [Member] | ||
Preferred stock, stated value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, dividend rate | 6.00% | 6.00% |
Preferred stock, liquidation value | $ 1,000 | $ 1,000 |
Preferred stock, redemption value | $ 1,000 | $ 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, designated classes (in shares) | 200,000 | 200,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
REVENUE: | ||
Revenues | $ 13,404 | $ 11,649 |
COSTS AND EXPENSES: | ||
Marketing and advertising | 975 | 853 |
Employee benefits | 505 | 476 |
Depreciation and amortization | 388 | 482 |
General, administrative and other | 1,693 | 1,325 |
Total costs and expenses | 12,503 | 11,003 |
OPERATING INCOME | 901 | 646 |
OTHER INCOME (EXPENSE): | ||
Interest expense | (70) | (86) |
Refund of sales/use tax | 279 | |
Total other income (expense) | 209 | (86) |
INCOME BEFORE INCOME TAXES | 1,110 | 560 |
PROVISION FOR INCOME TAXES | ||
Provision for income taxes | 188 | 134 |
NET INCOME | 922 | 426 |
Net income attributable to noncontrolling interest in BHCMC, LLC | (413) | (188) |
NET INCOME ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION | $ 509 | $ 238 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.01 | $ 0 |
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) | 64,743,042 | 64,543,550 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.01 | $ 0 |
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) | 64,743,042 | 64,543,550 |
Professional Services [Member] | ||
REVENUE: | ||
Revenues | $ 7,948 | $ 7,439 |
COSTS AND EXPENSES: | ||
Cost of services and products | 4,812 | 4,834 |
Aerospace Products [Member] | ||
REVENUE: | ||
Revenues | 5,456 | 4,210 |
COSTS AND EXPENSES: | ||
Cost of services and products | $ 4,130 | $ 3,033 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 922 | $ 426 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 750 | 894 |
Changes in assets and liabilities | ||
Accounts receivable | (118) | 314 |
Income tax receivable | 188 | |
Inventories | (391) | (218) |
Prepaid expenses and other current assets | (462) | (220) |
Accounts payable | (288) | (66) |
Customer deposits | 1,340 | 306 |
Accrued liabilities | (181) | (199) |
Gaming facility mandated payment | (282) | (374) |
Other current liabilities | 61 | 69 |
Net cash provided by operating activities | 1,539 | 932 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (227) | (730) |
Net cash used in investing activities | (227) | (730) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments of promissory notes, net | (711) | (76) |
Repayments of long-term debt | (403) | (614) |
Repurchase of common stock | (6) | |
Net cash used in financing activities | (1,120) | (690) |
NET INCREASE (DECREASE) IN CASH | 192 | (488) |
CASH, beginning of period | 7,353 | 6,389 |
CASH, end of period | 7,545 | 5,901 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 71 | 86 |
Income taxes paid |
Note 1 - Organization, Consolid
Note 1 - Organization, Consolidated and Presentation of Financial Statements | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. 10 8 X not 10 April 30, 2018. three July 31, 2018 not may April 30, 2019. In February 2016, 2016 02, 842 2016 02 2016 02 December 15, 2018, Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 2. 260 260, July 31, 2018 64,718,040. |
Note 3 - Revenue Recognition_ A
Note 3 - Revenue Recognition: Adoption of ASC Topic 606, "Revenue from Contracts with Customers" | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. 606, On May 1, 2018, 606, not May 1, 2018. May 1, 2018 606, not 605. no May 1, 2018 606. Under ASC 606, five 1 A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. 2 At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer. Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third not 3 The transaction price is the amount that an entity allocates to the performance obligations identified in the contract and, therefore, represents the amount of revenue recognized as those performance obligations are satisfied. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The transaction price is the amount that an entity allocates to the performance obligations identified in the contract and, therefore, represents the amount of revenue recognized as those performance obligations are satisfied. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. 4 Once a contract and associated performance obligations have been identified and the transaction price has been determined, ASC 606 5 Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers either over time or at a point in time. Revenue is recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Aircraft modifications are performed under fixed-price contracts. Revenue from fixed-priced contracts are recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor. Revenue from Avionics products are recognized when shipped. Payment for these Avionics products is due within 30 Regarding warranties and returns, our products are special order and are not may not 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 value of jackpots increase. Food, beverage, and other revenue is recorded when the service is received and paid. |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. first first Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence, we consider inventory that has been inactive for five July 31, 2018 April 30, 2018, $571 $571 |
Note 5 - Research and Developme
Note 5 - Research and Development | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | 5. three July 31, 2018 2017 $318 $398 |
Note 6 - Debt
Note 6 - Debt | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. July 31, 2018, $5.0 July 31, 2018 $3.3 first second At July 31, 2018, one 5.75% $233. January 2020. At July 31, 2018, three $200 3.36% 4.46%. March 2019. At July 31, 2018, one $255 6.25%. June 2019. At July 31, 2018, one $76. 4.5%. April 2022. At July 31, 2018, one $2.2 4.89%. May 2020. We are not July 31, 2018. 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 2019 |
Note 7 - Other Assets
Note 7 - Other Assets | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7. $5,500 $5,426 $1,417 $1,459. $5,500 December 2024. no three 15 |
Note 8 - Stock Options and Ince
Note 8 - Stock Options and Incentive Plans | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. July 31, 2018 no In November 2016, 2016 may 12.5 No |
Note 9 - Stock Repurchase Progr
Note 9 - Stock Repurchase Program | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 9. The Board of Directors approved a stock purchase program authorizing the repurchase of up to $750 May 1, 2019. The table below provides information with respect to common stock purchases by the Company through July 31, 2018. Period Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs Program authorization $ 750 Quarter ended January 31, 2017 (a) 49,920 $ 0.20 49,920 $ 740 Quarter ended April 30, 2017 80,426 $ 0.27 80,426 $ 718 Quarter ended July 31, 2017 - $ - - $ 718 Quarter ended October 31, 2017 8,607 $ 0.30 8,607 $ 715 Quarter ended January 31, 2018 (a) 536,058 $ 0.26 536,058 $ 576 Quarter ended April 30, 2018 (a) 178,526 $ 0.25 178,526 $ 531 Quarter ended July 31, 2018 (a) 25,277 $ 0.26 25,277 $ 525 Total 878,814 $ 0.26 878,814 (a) These shares of common stock purchased were purchased through a private transaction |
Note 10 - Contingency
Note 10 - Contingency | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 10. On December 29, 2017, not not no For the quarter ended July 31, 2018, $279 $1.3 August 2018. |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 3 Months Ended |
Jul. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. The Company evaluated its July 31, 2018 not 10, |
Note 9 - Stock Repurchase Pro17
Note 9 - Stock Repurchase Program (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Notes Tables | |
Class of Treasury Stock [Table Text Block] | Period Total Number of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs Program authorization $ 750 Quarter ended January 31, 2017 (a) 49,920 $ 0.20 49,920 $ 740 Quarter ended April 30, 2017 80,426 $ 0.27 80,426 $ 718 Quarter ended July 31, 2017 - $ - - $ 718 Quarter ended October 31, 2017 8,607 $ 0.30 8,607 $ 715 Quarter ended January 31, 2018 (a) 536,058 $ 0.26 536,058 $ 576 Quarter ended April 30, 2018 (a) 178,526 $ 0.25 178,526 $ 531 Quarter ended July 31, 2018 (a) 25,277 $ 0.26 25,277 $ 525 Total 878,814 $ 0.26 878,814 |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Details Textual) | 3 Months Ended |
Jul. 31, 2018shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 64,718,040 |
Note 4 - Inventories (Details T
Note 4 - Inventories (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 30, 2018 | |
Duration During Which Inventory If Inactive Taken as Obsolete | 5 years | |
Inventory Valuation Reserves, Ending Balance | $ 571 | $ 571 |
Note 5 - Research and Develop20
Note 5 - Research and Development (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Research and Development Expense, Total | $ 318 | $ 398 |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) | Jul. 31, 2018USD ($) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 3,300,000 |
Notes Collateralized by Aircraft Security Agreements [Member] | Note Payable Due September 2017 [Member] | |
Number of Notes | 1 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% |
Notes Payable, Total | $ 233,000 |
Notes Payable to Bank [Member] | Note 1 Due March 2019 [Member] | |
Number of Notes | 3 |
Notes Payable, Total | $ 200,000 |
Notes Payable to Bank [Member] | Note 1 Due March 2019 [Member] | Minimum [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 3.36% |
Notes Payable to Bank [Member] | Note 1 Due March 2019 [Member] | Maximum [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.46% |
Notes Payable to Bank [Member] | Debt Instrument Due May 2020 [Member] | |
Number of Notes | 1 |
Debt Instrument, Interest Rate, Stated Percentage | 4.89% |
Notes Payable, Total | $ 2,200 |
Note Collateralized by Real Estate [Member] | Note Payable Due June 2019 [Member] | |
Number of Notes | 1 |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Notes Payable, Total | $ 255,000 |
Note Collateralized by Equipment [Member] | Note Payable Due April 2022 [Member] | |
Number of Notes | 1 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% |
Notes Payable, Total | $ 76,000 |
Note 7 - Other Assets (Details
Note 7 - Other Assets (Details Textual) $ in Thousands | 3 Months Ended |
Jul. 31, 2018USD ($) | |
Other Assets, Miscellaneous, Total | $ 1,459 |
Kansas Expanded Lottery Act Contract Privilege [Member] | |
Other Intangible Assets, Net | 5,500 |
Intangible Gaming Support Items [Member] | |
Other Intangible Assets, Net | $ 5,426 |
Finite-Lived Intangible Asset, Useful Life | 3 years |
JET Autopilot Intellectual Property [Member] | |
Other Intangible Assets, Net | $ 1,417 |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Note 8 - Stock Options and In23
Note 8 - Stock Options and Incentive Plans (Details Textual) - shares shares in Thousands | 21 Months Ended | |
Jul. 31, 2018 | Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 0 | |
Butler National Corporation 2016 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 |
Note 9 - Stock Repurchase Pro24
Note 9 - Stock Repurchase Program (Details Textual) $ in Thousands | Jul. 31, 2018USD ($) |
Stock Repurchase Program, Authorized Amount | $ 750 |
Note 9 - Stock Repurchase Pro25
Note 9 - Stock Repurchase Program - Schedule of Stock Purchases (Details) - USD ($) | 3 Months Ended | 20 Months Ended | ||||||||||||
Jul. 31, 2018 | [1] | Apr. 30, 2018 | [1] | Jan. 31, 2018 | [1] | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | [1] | Jul. 31, 2018 | Dec. 31, 2016 | ||
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Programs | $ 525 | $ 531,000 | $ 576,000 | $ 715,000 | $ 718,000 | $ 718,000 | $ 740,000 | $ 525 | [1] | $ 750,000 | ||||
Number of Shares Purchased (in shares) | 25,277 | 178,526 | 536,058 | 8,607 | 80,426 | 49,920 | 878,814 | |||||||
Average Price Paid per Share (in dollars per share) | $ 0.26 | $ 0.25 | $ 0.26 | $ 0.30 | $ 0.27 | $ 0.20 | $ 0.26 | |||||||
Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in shares) | 25,277 | 178,526 | 536,058 | 8,607 | 80,426 | 49,920 | 878,814 | |||||||
Number of Shares Purchased (in shares) | 25,277 | 178,526 | 536,058 | 8,607 | 80,426 | 49,920 | 878,814 | |||||||
[1] | These shares of common stock purchased were purchased through a private transaction |
Note 10 - Contingency (Details
Note 10 - Contingency (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | |
Refund of Tax | $ 279 | ||
Appeal of BHCMC, LLC [Member] | |||
Refund of Tax | $ 279 | ||
Appeal of BHCMC, LLC [Member] | Subsequent Event [Member] | |||
Refund of Tax | $ 1,300 |