Butler National Corp. files form 10-Q for quarter ending Oct. 31, 1996;.OLATHE, Kan.--(BUSINESS WIRE)--Dec. 17, 1996-- Reports record sales and comments on new product development Butler National Corp. has filed its quarterly report on Form 10-Q Form 10-Q See 10-Q. pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934. -0-
Selected Financial Data ($000s)
Three Months Six Months Year
Unaudited Unaudited Audited
1996 1995 1996 1995 1996
Net sales $ 6,118 $ 4,230 $ 11,425 $ 8,084 $ 17,339
Net income $ 6 $ 64 $ 69 $ 128 $ 144
Per share net
income $ .00 $ .01 $ .01 $ .01 $ .02
Total assets $ 9,720 $ 5,929 $ 9,720 $ 5,929 $ 8,261
Long-term
obligations $ 1,620 $ 139 $ 1,620 $ 139 $ 1,568
Shareholders' equity $ 4,492 $ 4,092 $ 4,492 $ 4,092 $ 4,112
Highlights of the report include: o Sales for the second fiscal quarter and the six months ended Oct. 31, 1996, increased $1,888,183 (44.6%) and $3,340,900 (41.3%), respectively, as compared to the same quarter and six months of the prior year. o For the six months, sales increased in the Food Distribution segment (50.2%) and Monitoring Services segment (33.5%). The Aircraft Modification A change in the physical characteristics of aircraft, accomplished either by a change in production specifications or by alteration of items already produced. segment was relatively stable with a decrease of 4.7%. Switching Unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. continued to decrease (10.2%). The Temporary Services Temporary Services is an artist collective of three people based in Chicago, Illinois, USA. They have been collaborating on art projects, public events, publications, and exhibitions since 1998. and Management Services segments did not recognize any revenue in the second quarter of fiscal 1997. o During the past 60 days, the Aircraft Modification segment, Avcon, has announced orders for new business in excess of $2,700,000. These orders are to be completed before June 1997 and should improve the revenue and contribution from this segment for fiscal year 1997. o Profit for the six month period was $69,372 compared to $128,368 in the prior period. The majority of the decrease relates to reduced margins and increased administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. at the Food Distribution segment of $190,000. The company has expended approximately $205,000 in professional fees, travel costs, and other administrative costs associated with Indian Gaming Management Agreements. Management Comments: "During the first six months of fiscal 1996, Butler National operated at record revenues. This quarter continues a pattern of growth that will allow us to approach an estimated $25 million in sales for fiscal 1997, an increase of 45% from fiscal 1996. "Profits were not as expected for the increased sales volume because of some operational problems at the Food Distribution segment. Management is in the process of taking corrective action A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or and does not expect these problems to continue. These problems have caused some delay in the opening of the second Valu Foods test store and services to the first store. Even with these operational problems, the first test store is capturing an even greater market share than originally anticipated. Management believes that the Valu Foods concept is valid and is working to hire management personnel to guide the further development and implementation of the concept. "Significant new orders and related shipments continue to be made at an improved margin by the SCADA (Supervisory Control And Data Acquisition) A process control application that collects data from sensors and machines on the shop floor or in remote locations and sends them to a central computer for management and control. Systems and Monitoring Services segment. The new ADAS ADAS Advanced Driver Assistance Systems ADAS Alzheimer’s Disease Assessment Scale ADAS Agricultural Development and Advisory Service (UK) ADAS AWOS (Automated Weather Observation System) Data Acquisition System 9000 and 7000 products being manufactured in the relocated plant in Arizona continue to build user confidence and increase the market for Butler products. Profits increased 23.4% for the first six months of fiscal 1997. "In the first half of this year, we experienced some earlier delays with the initial introduction of the new products at the Aircraft Modification segment. However, the AVCON FINS are being accepted by the industry as evidenced by the $2,700,000 of new orders reported during the past 60 days. When the fin development project started, we estimated that the AVCON FINS would represent an estimated $50 million potential market for Butler National. We continue to feel these estimates are appropriate. The fins have expanded the utility of the Learjet model 35 to allow the development of other modifications. Avcon is working hard to take advantage of these new opportunities. "We continue to experience bureaucratic bu·reau·crat n. 1. An official of a bureaucracy. 2. An official who is rigidly devoted to the details of administrative procedure. bu delays in the Indian Gaming business. On Dec. 12, 1996, the Miami and Modoc Tribes filed what we all believe to be the 'final' Management Agreement for approval by the NIGC NIGC National Indian Gaming Commission NIGC National Iranian Gas Company of the Class II and Class III gaming enterprise to be located in Miami, Okla. The Miami Tribe's gaming project in Miami County Miami County is the name of several counties in the United States:
abbr. Bureau of Indian Affairs to determine if the land is Indian land. We expect to make progress in this segment as we begin the new calendar year. "A number of very exciting opportunities to improve shareholder value are developing at Butler National. We continue to build the management team to take advantage of these opportunities. I remain pleased with the progress of the Butler National team and continue to be enthusiastic about the future," commented Clark D. Stewart, president of the company. Our Business: Butler National Corp. operates in the aerospace and services business segments. The Services segment includes food distribution, electronic monitoring of water pumping The pumping of water is a basic and practical technique, far more practical than scooping it up with one's hands or lifting it in a hand-held bucket. This is true whether the water is drawn from a fresh source, moved to a needed location, purified, or used for irrigation, washing, or stations, temporary employee services, Indian gaming management services and administrative management services. Aerospace includes the manufacture of airborne electronic switching equipment for McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. and structural modification of business aircraft. Forward-Looking Information: The information set forth above may include "forward-looking" information as outlined in the recently enacted Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Cautionary Statements filed by the company as Exhibit 99 of its FORM 10-Q filing are incorporated herein by reference and investors are specifically referred to such Cautionary Statements for a discussion of factors which could affect the company's operations and forward-looking statements contained herein. For more information, or for a complete copy of Butler National's latest 10-Q, contact the individual listed below. CONTACT: Butler National Corp. Edward J. Matukewicz, 913/780-9595 fax, 913/780-5088 |
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