FY 2022 Q1 – Financial Results and Conference Call
OLATHE, KANSAS, September 10, 2021, – Butler National Corporation (OTCQB: BUKS), a leader in the growing global market for aircraft modification, maintenance, repair and overhaul (MRO) and a recognized provider of gaming management services, announces its financial results for the first quarter fiscal 2022 ended July 31, 2021. In conjunction with the release, the Company has scheduled a conference call Tuesday, September 14, 2021 at 10:00 AM Central Daylight Time.
What: Butler National Corporation First Quarter Fiscal 2022 Financial Results Conference Call
When: Tuesday, July 20, 2021 – 9:00 AM Central Daylight Time
How: Live via phone by dialing 877-358-7305. Code: Butler National Corporation. Participants to the conference call should call in at least 5 minutes prior to the start time.
Clark Stewart, President & CEO, Butler National Corp., will be leading the call and discussing results of the fourth quarter and fiscal year end, the status of new and existing orders, gaming activities and an outlook on the balance of fiscal 2022.
To view the full press release in PDF format, please click here.
To view Butler National Corporation Q1 FY2022 Form 10-Q in PDF format, please click here.
“The quarter-ended July 31, 2021 was a robust start to fiscal year 2022. Both the Professional Services and Aerospace Products segments experienced significant revenue increases. Revenue increased 40% to $18.1 million in the three months ended July 31, 2021, as compared to $13.0 million in the three months ended July 31, 2020. The increase in revenue reflects an increase of 10% in Aerospace Products revenue and an increase of 82% in Professional Services revenue. We continue to focus on growth in international markets, solutions for regulatory mandates and the development of new supplemental type certificates (“STCs”). This includes significant global efforts.
First quarter fiscal 2022 net income was $2.9 million compared to a net loss of $15,000 in the first quarter fiscal 2021. First quarter fiscal 2022 operating margin was 22% compared to 1% in first quarter fiscal 2021. We continue to work to improve efficiencies in our implementation, operational processes, and controlling general and administrative expenses.
The fourth quarter of fiscal 2021 was a strong quarter for the Professional Services segment. Aerospace Products was up slightly due to a strong quarter in our aircraft modification business. Revenue increased 42% to $17.9 million in fourth quarter fiscal 2021, as compared to $12.6 million in fourth quarter fiscal 2020. The fourth quarter of fiscal 2021 resulted in a net income of $624,000 compared to a net loss of $1.4 million in fourth quarter fiscal 2020. Backlog is $25.5 million at July 1, 2021 compared to a backlog of $19.2 million at July 10, 2020.
We are excited about the future. Management and all employees are focused on the development of new products, execution of our 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
Revenue increased 82% for the three months ended July 31, 2021 to $9.7 million compared to $5.4 million in the three months ended July 31, 2020. Costs increased 9% in the three months ended July 31, 2021 to $3.7 million compared to $3.4 million for the three months ended July 31, 2020. Costs were 38% of segment total revenues in the three months ended July 31, 2021, as compared to 64% of segment total revenues in the three months ended July 31, 2020. Expenses increased 11% in the three months ended July 31, 2021 to $3.0 million compared to $2.7 million in the three months ended July 31, 2020. Expenses were 31% of segment total revenues in the three months ended July 31, 2021, as compared to 51% of segment total revenues in the three months ended July 31, 2020. There was an operating income of $3.0 million in the three months ended July 31, 2021 compared to an operating loss of $791,000 in the three months ended July 31, 2020.
Revenue increased 10% to $8.4 million in the three months ended July 31, 2021, compared to $7.6 million in the three months ended July 31, 2020. The increase in revenue was due to a decrease of $207,000 in avionics business and a $1.0 million increase in modification business. Costs increased by 18% in the three months ended July 31, 2021 to $6.0 million compared to $5.1 million for the three months ended July 31, 2020. Costs were 71% of segment total revenue in the three months ended July 31, 2021, as compared to 67% of segment total revenue in the three months ended July 31, 2020. Expenses decreased 15% in the three months ended July 31, 2021 to $1.4 million compared to $1.6 million in the three months ended July 31, 2020. Expenses were 17% of segment total revenue in the three months ended July 31, 2021, as compared to 21% of segment total revenue in the three months ended July 31, 2020. Operating income from Aerospace Products increased 12% to $1.0 million in the three months ended July 31, 2021 from $919,000 in the three months ended July 31, 2020.
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, and general, administrative and other expenses.
As of July 31, 2021, our backlog totaled approximately $24.1 million. The backlog includes firm, pending, and contract orders, which may not be completed within the next fiscal year. 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.
Butler National Corporation operates in the Aerospace and Services business segments. The Aerospace Products segment includes the manufacture, sale and service of electronic equipment and systems and technologies to enhance and support products related to aircraft. Additionally, we also operate several Federal Aviation Administration (the “FAA”) Repair Stations. Butler National companies, Avcon Industries, Inc., Butler National Tempe, and Butler Avionics, in Aerospace Products concentrate on Learjet, Beechcraft King Air, Cessna turbine engine, Cessna multi-engine piston and Dassault Falcon 20 aircraft. Specifically, the design, distribution and support for products for older aircraft, or “Classic” aircraft are areas of focus for companies in Aerospace Products. Services include temporary employee services, gaming services and administrative management services.
Statements made in this report, other reports and proxy statements 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. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1A of the Company’s Annual Report on Form 10-K, incorporated herein by reference. Risk Factors and elsewhere herein or in other reports filed with the SEC. 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.
FOR MORE INFORMATION, CONTACT:
David Drewitz, Public Relations
Ph (972) 814-5723
Butler National Corporation Investor Relations
Ph (913) 780-9595