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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Butler National Corp (QX) | USOTC:BUKS | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.0669 | 8.08% | 0.895 | 0.861 | 0.94 | 0.895 | 0.84625 | 0.86 | 41,873 | 21:45:02 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 |
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
BUTLER NATIONAL CORPORATION
|
Kansas
|
41-0834293
|
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
Registrant's telephone number, including area code:
|
(913) 780-9595
|
Large accelerated filer
|
Accelerated filer
|
Non-accelerated filer
|
Smaller Reporting Company
☒
|
ITEM 1.
|
Business
|
5
|
ITEM 1A.
|
Risk Factors
|
11
|
ITEM 1B.
|
Unresolved Staff Comments
|
15
|
ITEM 2.
|
Properties
|
15
|
ITEM 3.
|
Legal Proceedings
|
16
|
ITEM 4.
|
Mine Safety Disclosures
|
16
|
ITEM 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
16
|
ITEM 6.
|
Selected Financial Data
|
17
|
ITEM 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
17
|
ITEM 7A.
|
Quantitative and Qualitative Disclosure About Market Risk
|
26
|
ITEM 8.
|
Financial Statements and Supplementary Data
|
26
|
ITEM 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
26
|
ITEM 9A.
|
Controls and Procedures
|
26
|
ITEM 9B.
|
Other Information
|
27
|
ITEM 10
|
Directors, Executive Officers and Corporate Governance
|
27
|
ITEM 11.
|
Executive Compensation
|
32
|
ITEM 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
37
|
ITEM 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
38
|
ITEM 14.
|
Principal Accounting Fees and Services
|
39
|
ITEM 15.
|
Exhibits, Financial Statement Schedules
|
40
|
Signatures
|
43
|
|
Financial Statements
|
45
|
| the deferral or termination of programs or contracts for convenience by customers; |
| market acceptance of the Company's Aerospace Products and or other planned products or product enhancements; |
| increased fuel and energy costs and the downward pressure on demand for our aircraft business; |
| the ability to gain and maintain regulatory approval of existing products and services and receive regulatory approval of new businesses and products; |
| the actions of regulatory, legislative, executive or judicial decisions of the federal, state or local level with regard to our business and the impact of any such actions; |
| failure to retain/recruit key personnel; |
| the availability of government funding to vendors and customers; |
| any delays in receiving components from third party suppliers; |
| the competitive environment; |
| the bankruptcy or insolvency of one or more key customers or vendors; |
| new product offerings from competitors; |
| protection of intellectual property rights; |
| the ability to service, supply or visit the international market; |
| acts of terrorism and war and other uncontrollable events; |
| joint ventures and other arrangements; |
| low priced penny-stock regulations; |
| general governance features; |
| United States and other country defense spending cuts; |
| our estimated effective income tax rates; estimated tax benefits; and merits of our tax position |
| potential future acquisitions; |
| changes in laws, including increased tax rates, smoking bans, regulations or accounting standards, third-party relations and approvals, and decisions, disciplines and fines of courts, travel restrictions, regulators and governmental bodies; |
| the ability to timely and cost-effectively integrate companies that we acquire into our operations; |
| construction factors, including delays, increased costs of labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; |
| litigation outcomes and judicial and governmental body actions, including gaming legislative action, referenda, regulatory disciplinary actions and fines and taxation; |
| access to insurance on reasonable terms; |
| cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations; |
| as a supplier of military and other equipment to the U.S. Government, we are subject to unusual risks, such as the right of the U.S. Government contractor to terminate contracts for convenience and to conduct audits and investigations of our operations and performance; |
| our reputation and ability to do business may be impacted by the improper conduct of employees, vendors, agents or business partners; |
| changes in legislation or government regulations or policies can have a significant impact on our results of operations; and |
| other factors disclosed from time to time in the Company's filings with the Securities and Exchange Commission. |
Item 1. BUSINESS
|
Assets
|
2016
|
2015
|
|||
Professional Services
|
52.6%
|
52.0%
|
|||
Aerospace Products
|
47.4%
|
48.0%
|
Revenue
|
2016
|
2015
|
|||
Professional Services
|
66.5%
|
65.4%
|
|||
Aerospace Products
|
33.5%
|
34.6%
|
Membership Interest
|
Members of
Board of Managers
|
Equity Ownership
|
Income (Loss)
Sharing
|
|||
Class A
|
3
|
20%
|
40%
|
|||
Class B
|
4
|
80%
|
60%
|
Industry Segment
|
|||||||
(in thousands)
|
2016
|
2015
|
|||||
Aerospace Products
|
$
|
7,510
|
$
|
8,999
|
|||
Professional Services
|
94
|
100
|
|||||
Total backlog
|
$
|
7,604
|
$
|
9,099
|
| Deliver to the customer, and obtain a written receipt for, a disclosure document; |
| Disclose certain price information about the stock; |
| Disclose the amount of compensation received by the broker-dealer or any associated person of the broker-dealer; |
| Send monthly statements to customers with market and price information about the penny stock; and |
| In some circumstances, approve the purchaser's account under certain standards and deliver written statements to the customer with information specified in the rules. |
Year Ended April 30, 2016
|
Year Ended April 30, 2015
|
||||||||||||
Low
|
High
|
Low
|
High
|
||||||||||
First quarter
|
$
|
0.16
|
$
|
0.27
|
$
|
0.14
|
$
|
0.20
|
|||||
Second quarter
|
$
|
0.16
|
$
|
0.24
|
$
|
0.15
|
$
|
0.23
|
|||||
Third quarter
|
$
|
0.13
|
$
|
0.20
|
$
|
0.13
|
$
|
0.19
|
|||||
Fourth quarter
|
$
|
0.13
|
$
|
0.23
|
$
|
0.14
|
$
|
0.28
|
(b) | Holders: The approximate number of holders of record of our common stock, as of July 22, 2016, was 2,800. The price of the stock as of July 22, 2016 was approximately $0.19 per share. |
(c) | Dividends: We have not paid any cash dividends on common stock, and the Board of Directors does not expect to declare any cash dividends in the foreseeable future. |
Period
|
Total Number of
Shares Purchased |
Average Price Paid
per Share |
Maximum Number (or
Approximate Dollar Value) of Shares that May Yet be Purchased under the Plans or Programs |
|||||||
(a)
|
(b)
|
(c)
|
||||||||
May 1, 2015 through April 30, 2016
|
0
|
$
|
0.00
|
0
|
||||||
Total
|
0
|
$
|
0.00
|
0
|
Year Ended April 30
(In thousands except per share data) |
||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||
Total revenues
|
$
|
44,794
|
$
|
47,062
|
$
|
47,271
|
$
|
49,152
|
$
|
52,719
|
||||||
Operating income
|
$
|
622
|
$
|
1,319
|
$
|
1,921
|
$
|
1,503
|
$
|
5,486
|
||||||
Net income (loss) attributable to Butler National Corporation
|
$
|
24
|
$
|
27
|
$
|
112
|
$
|
(148)
|
$
|
1,900
|
||||||
Basic earnings per common share
|
$
|
0.00
|
$
|
0.00
|
$
|
0.00
|
$
|
0.00
|
$
|
0.03
|
||||||
Selected Balance Sheet Information
|
||||||||||||||||
Total assets
|
$
|
42,697
|
$
|
41,598
|
$
|
41,678
|
$
|
43,860
|
$
|
40,562
|
||||||
Long-term obligations (excluding current maturities)
|
$
|
5,218
|
$
|
6,870
|
$
|
6,820
|
$
|
10,155
|
$
|
8,678
|
||||||
Cash dividends declared per common share
|
None
|
None
|
None
|
None
|
None
|
(dollars in thousands)
|
2016
|
Percent
of Total
Revenue
|
2015
|
Percent
of Total
Revenue
|
Percent
Change
2015-2016
|
|||||||||||||||
Revenue:
|
||||||||||||||||||||
Professional Services
|
$
|
29,784
|
66
|
%
|
$
|
30,795
|
65
|
%
|
(3)
|
%
|
||||||||||
Aerospace Products
|
15,010
|
34
|
%
|
16,267
|
35
|
%
|
(8)
|
%
|
||||||||||||
Total revenues
|
44,794
|
100
|
%
|
47,062
|
100
|
%
|
(5)
|
%
|
||||||||||||
Costs and expenses:
|
||||||||||||||||||||
Cost of Professional Services
|
17,872
|
40
|
%
|
18,798
|
40
|
%
|
(5)
|
%
|
||||||||||||
Cost of Aerospace Products
|
12,173
|
27
|
%
|
12,672
|
27
|
%
|
(4)
|
%
|
||||||||||||
Marketing and advertising
|
4,562
|
10
|
%
|
4,323
|
9
|
%
|
6
|
%
|
||||||||||||
Employee benefits
|
1,889
|
4
|
%
|
1,825
|
4
|
%
|
4
|
%
|
||||||||||||
Depreciation and amortization
|
2,174
|
5
|
%
|
2,885
|
6
|
%
|
(25)
|
%
|
||||||||||||
General, administrative and other
|
5,502
|
12
|
%
|
5,240
|
11
|
%
|
5
|
%
|
||||||||||||
Total costs and expenses
|
44,172
|
98
|
%
|
45,743
|
97
|
%
|
(3)
|
%
|
||||||||||||
Operating income
|
$
|
622
|
2
|
%
|
$
|
1,319
|
3
|
%
|
(53)
|
%
|
| Professional Services derives its revenue from (a) professional management services in the gaming industry through Butler National Service Corporation ("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural, engineering and management support services through BCS Design ("BCS"). Revenue from Professional Services decreased 3% to $29.8 million in fiscal 2016 compared to $30.8 million in fiscal 2015. |
| Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for classic and current production aircraft. Aerospace Products revenue decreased 8% to $15.0 m illion in fiscal 2016 compared to $16.3 million in fiscal 2015. We anticipate future domestic military spending reductions and continued slow growth of the United States economy. |
(dollars in thousands)
|
2016
|
Percent of
Revenue
|
2015
|
Percent of
Revenue
|
Percent
Change
2015-2016
|
||||||||||||||
Professional Services
|
|||||||||||||||||||
Revenue
|
|||||||||||||||||||
Boot Hill Casino
|
$
|
29,143
|
98
|
%
|
$
|
29,923
|
97
|
%
|
(3
|
)%
|
|||||||||
Management/Professional Services
|
641
|
2
|
%
|
872
|
3
|
%
|
(26
|
)%
|
|||||||||||
Revenue
|
29,784
|
100
|
%
|
30,795
|
100
|
%
|
(3
|
)%
|
|||||||||||
Costs of Professional Services
|
17,872
|
60
|
%
|
18,798
|
61
|
%
|
(5
|
)%
|
|||||||||||
Expenses
|
10,315
|
35
|
%
|
10,203
|
33
|
%
|
1
|
%
|
|||||||||||
Total costs and expenses
|
28,187
|
95
|
%
|
29,001
|
94
|
%
|
(3
|
)%
|
|||||||||||
Professional Services operating income before noncontrolling interest in BHCMC, LLC
|
$
|
1,597
|
5
|
%
|
$
|
1,794
|
6
|
%
|
(11
|
)%
|
(
dollars in thousands)
|
2016
|
Percent of
Revenue
|
2015
|
Percent of
Revenue
|
Percent
Change
2015-2016
|
|||||||||||||||
Aerospace Products
|
||||||||||||||||||||
Revenue
|
$
|
15,010
|
100
|
%
|
$
|
16,267
|
100
|
%
|
(8
|
)%
|
||||||||||
Costs of Aerospace Products
|
12,173
|
81
|
%
|
12,672
|
78
|
%
|
(4
|
)%
|
||||||||||||
Expenses
|
3,812
|
25
|
%
|
4,070
|
25
|
%
|
(6
|
)%
|
||||||||||||
Total costs and expenses
|
15,985
|
106
|
%
|
16,742
|
103
|
%
|
(5
|
)%
|
||||||||||||
Aerospace Products operating income (loss)
|
$
|
(975
|
)
|
(6
|
)%
|
$
|
(475)
|
(3)
|
%
|
| Revenue from Professional Services decreased 3% to $29.8 million in fiscal 2016 from $30.8 million in fiscal 2015. The decrease in Professional Services revenue was driven primarily by decreased revenue in gaming activities of $0.8 million. |
| Cost s decreased 5% in fiscal 2016 to $17.9 million compared to $18.8 million in fiscal 2015. Costs we re 60% of segment total revenue in fiscal 2016, compared to 61% of segment total revenue in fiscal 2015. |
| Expenses increased 1% in fiscal 2016 to $10.3 milli on compared to $10.2 million in fiscal 2015. Expenses were 35% o f segment total revenue in fiscal 2016, compared to 33% of segment total revenue in fiscal 2015. |
| Revenue decreased 8% to $15.0 million in fiscal 2016 compared to $16.3 million in fiscal 2015. We anticipate future domestic military spending reductions and continued slow growth of the United States economy. In an effort to offset decreased domestic military spending, we have invested in the dev elopment of several STCs. These STCs are state of the art avionics and we are aggressively marketing both domestically and internationally. |
| Cos ts decreased 4% to $12.2 million in fiscal 2016 compared to $12.7 million in fiscal 2015. Costs were 81% of segment total revenue in fiscal 2016, compared to 78% of segment total revenue in fiscal 2015. |
| Expenses decreased 6% in fiscal 2016 at $3.8 million compared to $4.1 million in fiscal 2015. Expenses were 25% of segment total revenue in fiscal 2016, compared to 25% of segment total revenue in fiscal 2015. |
Contractual
Obligations |
Total
|
Less
than 1 Year |
2 Years
FY 2018 |
3 Years
FY 2019 |
4 Years
FY 2020 |
5 Years
FY 2021 |
Thereafter
|
|||||||||||||||
Long-term debt
|
$
|
7,682
|
$
|
2,464
|
$
|
1,952
|
$
|
1,594
|
$
|
1,569
|
$
|
103
|
$
|
-
|
||||||||
Operating rent obligations
|
464
|
235
|
175
|
40
|
7
|
7
|
-
|
|||||||||||||||
BHCR Facility rent obligations
|
97,818
|
4,793
|
4,841
|
4,889
|
4,938
|
4,987
|
73,370
|
|||||||||||||||
Promissory notes
|
3,988
|
3,988
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
TOTAL
|
$
|
109,952
|
$
|
11,480
|
$
|
6,968
|
$
|
6,523
|
$
|
6,514
|
$
|
5,097
|
$
|
73,370
|
2017
|
2018
|
2019
|
2020
|
2021
|
Thereafter
|
Total
|
Fair
Value |
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||||
Note receivable:
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Variable rate
|
||||||||||||||||||||||||||
Average interest rate
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||
Promissory notes
|
$
|
3,988
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,988
|
$
|
3,988
|
||||||||||
Long-term debt:
|
$
|
2,464
|
$
|
1,952
|
$
|
1,594
|
$
|
1,569
|
$
|
103
|
$
|
-
|
$
|
7,682
|
$
|
7,682
|
||||||||||
Variable rate
|
||||||||||||||||||||||||||
Average interest rate
|
4.1
|
%
|
4.7
|
%
|
5.0
|
%
|
5.1
|
%
|
4,9
|
%
|
N/A
|
4.4
|
%
|
4.4
|
%
|
|||||||||||
Interest Payments
|
||||||||||||||||||||||||||
Est. interest payments:
|
$
|
342
|
$
|
198
|
$
|
123
|
$
|
46
|
$
|
3
|
$
|
-
|
$
|
712
|
Name of
Director, Age and Term |
Served
Since |
Principal Occupation for Last Five Years and Other Directorships
|
||
Clark D. Stewart (76)
Up for re-election at
fiscal year end 2018 |
1989
|
President of the Company from September 1, 1989 to present.
|
||
R. Warren Wagoner (64)
Up for re-election at
fiscal year end 2018 |
1986
|
Chairman of the Board of Directors of the Company since August 30, 1989. Employee chairman until October 2013.
|
||
David B. Hayden (70)
Up for re-election at
fiscal year end 2017 |
1996
|
Co-owner and President of Kings Avionics, Inc. since 1974 prior to its acquisition in 2010. Director since 1996. Consultant since 2011.
|
||
Michael J. Tamburelli (53)
Up for re-election at
fiscal year end 2017 |
2010
|
General Manager of the Isle of Capri Kansas City, Missouri 2004-2008, General Manager Boot Hill Casino & Resort 2009-2010, General Manager of Cherokee National Casino, West Siloam Springs, Oklahoma 2010-2011, General Manager Presque Isle Downs, Erie, Pennsylvania 2012-2014. Director of Gaming Operations Apache Casino, Lawton, Oklahoma 2014-2015. Director of Operations St. Jo Frontier Casino 2015 to present. Director since 2010.
|
||
Bradley K. Hoffman (42)
Up for re-election at
fiscal year end 2016 |
2010
|
Vice President – Corporate Strategy of ISG Technology, Inc. since 2005. Director since 2010.
|
Name
|
Age
|
Position
|
||
Clark D. Stewart
|
76
|
President and Chief Executive Officer
|
||
Craig D. Stewart
|
42
|
Vice President and Chief Financial Officer
|
||
Christopher J. Reedy
|
50
|
Vice President and Secretary
|
Name
|
Company
|
Date(s) of Directorship
|
||||
Clark D. Stewart
|
Butler National Corporation
|
Since 1989
|
||||
R. Warren Wagoner
|
Butler National Corporation
|
Since 1986
|
||||
David B. Hayden
|
Butler National Corporation
|
Since 1996
|
||||
Michael J. Tamburelli
|
Butler National Corporation
|
Since 2010
|
||||
Bradley K. Hoffman
|
Butler National Corporation
|
Since 2010
|
||||
Past Directorships:
|
||||||
Clark D. Stewart
|
None
|
|||||
R. Warren Wagoner
|
None
|
|||||
David B. Hayden
|
None
|
|||||
Michael J. Tamburelli
|
None
|
|||||
Bradley K. Hoffman
|
None
|
- | pay for performance |
- | employee recruitment, retention, and motivation |
- | cost management |
- | egalitarian treatment of employees |
- | alignment with stockholders' interests |
- | continued focus on corporate governance |
- | base salary |
- | annual and semiannual incentive cash payments |
- | equity grants |
- | employee stock purchase plan |
- | retirement benefits |
- | health and welfare benefits |
PAY COMPONENT
|
BRIEF DESCRIPTION
|
|
Base salary
|
Described in detail in separate paragraph above titled Base Salary.
|
|
Annual and semiannual incentive cash payments
|
Paid as discretionary cash bonuses to individual employees for outstanding performance of a task.
|
|
Equity grants/option awards
|
No Option Awards have been granted since 2011. Option Awards are granted by the Compensation Committee to align management objective toward improved earnings and retention of the management team.
|
|
Employee stock purchase plan
|
Any employee may purchase the Company stock at the fair market value at the date of purchase without broker or issue fees. The stock is restricted and not considered a stock reward. We have the 1981 Employee Stock Purchase plan. No shares have been purchased under this plan since 1988.
|
|
Retirement benefits
|
We pay the required federal and state retirement contributions, the required unemployment contributions and match the employee's contribution to their account in the Butler National Corporation 401(k) plan according to the parameters set forth in the plan.
|
|
Health and welfare benefits
|
Employees electing to participate in the various insurance plans offered by the Company receive a payment for a share of the health, dental, vision and life insurance costs for the employee.
|
- | the absolute one-year and multi-year company performance as measured by market share, revenue growth, profit from operations and total shareholder return; |
- | one-year and multi-year performance on the same measures as compared with competitors in the comparator group; and |
- | Company progress toward its strategic goals. |
Name
and Principal Position |
Year
|
Salary
($) |
Bonus
($) |
Stock
Awards ($) |
Option Awards and
Stock Appreciation Rights ($) |
Non-Equity
Incentive Plan Compensation ($) |
Change in Pension Value and Nonqualified
Deferred Compensation Earnings($) |
All Other
Compensation ($)(1) |
Total ($)(2)
|
||||||||||
Clark D. Stewart, CEO
|
2016
|
469
|
---
|
---
|
---
|
---
|
---
|
52
|
521
|
||||||||||
President and Director
|
2015
|
458
|
---
|
---
|
---
|
---
|
---
|
79
|
537
|
||||||||||
Craig D. Stewart
|
2016
|
249
|
---
|
---
|
---
|
---
|
---
|
43
|
292
|
||||||||||
Vice President and
|
2015
|
246
|
---
|
---
|
---
|
---
|
---
|
40
|
286
|
||||||||||
Chief Financial Officer
|
|||||||||||||||||||
Christopher J. Reedy
|
2016
|
256
|
15
|
---
|
---
|
---
|
---
|
24
|
295
|
||||||||||
Vice President and
|
2015
|
244
|
10
|
---
|
---
|
---
|
---
|
23
|
277
|
||||||||||
Secretary
|
Name
|
Year
|
Airplane and
Automobile Usage ($) |
Health
Benefits ($) |
Memberships
($) |
Matching
Contributions to 401(k) (3) ($) |
|||||
Clark D. Stewart
|
2016
|
7
|
17
|
12
|
16
|
|||||
Craig D. Stewart
|
2016
|
---
|
19
|
10
|
14
|
|||||
Christopher J. Reedy
|
2016
|
---
|
5
|
3
|
16
|
(1) | Includes the amounts in the "All Other Compensation" table. |
(2) | All benefits are provided for in the tables, summaries, and footnotes above. We did not participate in any of the following transactions and such items are therefore not reported in table format: Equity Award Table, Pension Benefit Table, and Nonqualified Deferred Compensation Table. |
(3) | Includes catch-up contribution made by the employee and matched by the Company. |
Name of Director
|
Fees Earned or Paid in Cash
|
Option Awards
|
All Other Compensation
|
Total
|
||||
R. Warren Wagoner
|
$
|
40
|
$
|
--
|
$
|
--
|
$
|
40
|
David B. Hayden
|
20
|
--
|
--
|
20
|
||||
Michael J. Tamburelli
|
20
|
--
|
--
|
20
|
||||
Bradley K. Hoffman
|
20
|
--
|
--
|
20
|
Name and Address of Beneficial Owner
|
Amount and Nature of
Beneficial Ownership (1) |
Percent
of Class |
||||||
Clark D. Stewart
|
3,572,494
|
5.6
|
%
|
|||||
19920 West 161
st
Street
|
||||||||
Olathe, Kansas 66062
|
||||||||
R. Warren Wagoner
|
4,092,994
|
6.4
|
%
|
|||||
19920 West 161
st
Street
|
||||||||
Olathe, Kansas 66062
|
(1) | Unless otherwise indicated by footnote, nature of beneficial ownership of securities is direct, and beneficial ownership as shown in the table arises from sole voting power and sole investment power. The beneficial ownership includes the shares held in the Butler National 401(k) Profit Sharing Plan for the benefit of the individual. |
Name of Beneficial Owner
|
Amount and Nature of
Beneficial Ownership (1) |
Percent
of Class |
||||||
Clark D. Stewart
|
3,572,494
|
5.6
|
%
|
|||||
R. Warren Wagoner
|
4,092,994
|
6.4
|
%
|
|||||
Craig D. Stewart
|
1,415,679
|
2.2
|
%
|
|||||
Christopher J. Reedy
|
1,108,856
|
1.7
|
%
|
|||||
David B. Hayden
|
1,357,225
|
2.1
|
%
|
|||||
Bradley K. Hoffman
|
-
|
0.0
|
%
|
|||||
Michael J. Tamburelli
|
-
|
0.0
|
%
|
|||||
All Directors and Executive Officers as a Group (7 persons)
|
11,547,248
|
18.0
|
%
|
|||||
(1) | Unless otherwise indicated by footnote, nature of beneficial ownership of securities is direct and beneficial ownership as shown in the table arises from sole voting power and sole investment power. |
Fee Type
|
Fiscal 2016
|
Fiscal 2015
|
||||||
Audit fees (a)
|
$
|
136
|
$
|
137
|
||||
Audit related fees (b)
|
-
|
14
|
||||||
Tax fees (c)
|
-
|
17
|
||||||
All other fees (d)
|
-
|
-
|
||||||
Total
|
$
|
136
|
$
|
168
|
(a) | Includes fees billed for professional services rendered in connection with the audit of the annual financial statements and for the review of the quarterly financial statements. |
(b) | Includes fees billed for professional services rendered in connection with assurance and other activities not explicitly related to the audit of Company financial statements, including the audits of Company employee benefit plans, contract compliance reviews and accounting research. |
(c) | Includes fees billed for domestic tax compliance and tax audits, corporate-wide tax planning and executive tax consulting and return preparation. |
(d) | Includes fees billed for financial systems design and implementation services. |
(a) | Documents Filed As Part of Form 10-K Report. |
(1)
|
Financial Statements
:
|
|||
Description
|
Page No.
|
|||
Report of Independent Registered Public Accounting Firms
|
44
|
|||
Consolidated Balance Sheets as of April 30, 2016 and 2015
|
45
|
|||
Consolidated Statements of Operations for the years ended April 30, 2016 and 2015
|
46
|
|||
Consolidated Statements of Stockholders' Equity for the years ended April 30, 2016 and 2015
|
47
|
|||
Consolidated Statements of Cash Flows for the years ended April 30, 2016 and 2015
|
48
|
|||
Notes to Consolidated Financial Statements
|
49
|
(2) | Exhibits Index : |
Signature
|
Title
|
Date
|
/s/ Clark D. Stewart
|
President, Chief Executive Officer and Director
|
July 27, 2016
|
Clark D. Stewart
|
(Principal Executive Officer)
|
|
/s/ Craig D. Stewart
|
Chief Financial Officer
|
July 27, 2016
|
Craig D. Stewart
|
(Principal Accounting Officer)
|
|
/s/ R. Warren Wagoner
|
Chairman of the Board and Director
|
Ju
ly 27, 201
6
|
R. Warren Wagoner
|
||
/s/ David B. Hayden
|
Director
|
J
uly 27, 2
016
|
David B. Hayden
|
||
/s/ Michael J. Tamburelli
|
Director
|
Jul
y 27, 2
016
|
Michael J. Tamburelli
|
||
/s/ Bradley K. Hoffman
|
Director
|
July
27
, 2016
|
Bradley K. Hoffman
|
|
2016
|
|
2015
|
|
||
REVENUES:
|
|
|
|
|
||
Professional services
|
$
|
29,784
|
|
$
|
30,795
|
|
Aerospace products
|
|
15,010
|
|
|
16,267
|
|
Total revenues
|
|
44,794
|
|
|
47,062
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
Cost of professional services
|
|
17,872
|
|
|
18,798
|
|
Cost of aerospace products
|
|
12,173
|
|
|
12,672
|
|
Marketing and advertising
|
|
4,562
|
|
|
4,323
|
|
Employee benefits
|
|
1,889
|
|
|
1,825
|
|
Depreciation and amortization
|
|
2,174
|
|
|
2,885
|
|
General, administrative and other
|
|
5,502
|
|
|
5,240
|
|
Total costs and expenses
|
|
44,172
|
|
|
45,743
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
622
|
|
|
1,319
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
Interest expense
|
|
(471)
|
|
|
(1,141)
|
|
Other income (expense), net
|
|
21
|
|
|
16
|
|
Gain on settlement
|
-
|
773
|
||||
Gain on sale and disposal of assets
|
736
|
-
|
||||
Total other income (expense)
|
|
286
|
|
|
(352)
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
908
|
|
|
967
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
Deferred income tax
|
|
93
|
|
|
138
|
|
NET INCOME
|
|
815
|
|
|
829
|
|
Net income attributable to noncontrolling interest in BHCMC, LLC
|
|
(791)
|
|
|
(802)
|
|
NET INCOME ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
|
$
|
24
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO BUTLER NATIONAL COPRATION
|
$
|
.00
|
|
$
|
.00
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
|
63,466,873
|
|
|
62,260,098
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION
|
$
|
.00
|
|
$
|
.00
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION
|
|
63,466,873
|
|
|
62,260,098
|
|
|
Common
Stock
|
|
|
Capital
Contributed
in Excess
of Par
|
|
Treasury
Stock at Cost
|
|
Retained
Earnings
|
|
Total
Stockholders'
Equity Butler
National
Corporation
|
|
Noncontrolling
Interest in
BHCMC, LLC
|
|
Total
Stockholders'
Equity
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
BALANCE, April 30, 2014
|
$
|
614
|
$
|
13,282
|
$
|
(732)
|
$
|
8,134
|
$
|
21,298
|
$
|
3,056
|
$
|
24,354
|
|||||||
Issuance of stock benefit plan
|
|
14
|
|
|
|
205
|
|
|
-
|
|
|
-
|
|
|
219
|
|
|
-
|
|
|
219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
27
|
|
|
27
|
|
|
802
|
|
|
829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, April 30, 2015
|
628
|
|
|
13,487
|
|
(732)
|
|
8,161
|
|
21,544
|
|
3,858
|
|
25,402
|
|||||||
Issuance of stock benefit plan
|
12
|
229
|
-
|
-
|
241
|
-
|
241
|
||||||||||||||
BHCMC distribution noncontrolling members
|
-
|
-
|
-
|
-
|
-
|
(360)
|
(360)
|
||||||||||||||
Net income
|
-
|
-
|
-
|
24
|
24
|
791
|
815
|
||||||||||||||
BALANCE, April 30, 2016
|
$
|
640
|
$
|
13,716
|
$
|
(732)
|
$
|
8,185
|
$
|
21,809
|
$
|
4,289
|
$
|
26,098
|
|
2016
|
|
2015
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||
Net income
|
$
|
815
|
|
$
|
829
|
|
Adjustments to reconcile cash flows from operating activities
|
|
|
|
|
|
|
Depreciation and amortization
|
|
3,761
|
|
|
4,032
|
|
Stock issued for benefit plan
|
|
241
|
|
|
219
|
|
Gain and loss on disposal of assets
|
(736)
|
-
|
||||
Gain on settlement
|
|
-
|
|
|
(773)
|
|
Deferred income tax expense
|
|
93
|
|
|
138
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
Accounts receivable
|
|
(630)
|
|
|
1,385
|
|
Inventories
|
|
(926)
|
|
|
(701)
|
|
Prepaid expenses and other assets
|
|
274
|
|
|
(325)
|
|
Accounts payable
|
|
144
|
|
|
499
|
|
Customer deposits
|
|
(579)
|
|
|
(145)
|
|
Accrued liabilities
|
|
28
|
|
|
172
|
|
Gaming facility mandated payment
|
|
(93)
|
|
|
32
|
|
Other liabilities
|
|
25
|
|
|
7
|
|
Net cash provided by operating activities
|
|
2,417
|
|
|
5,369
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capital expenditures
|
|
(2,757)
|
|
|
(5,065)
|
|
Proceeds from settlement
|
-
|
1,323
|
||||
Proceeds from sale and disposal of assets
|
1,008
|
-
|
||||
Net cash used in investing activities
|
|
(1,749)
|
|
|
(3,742)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Borrowings promissory notes, net
|
|
2,478
|
|
|
(247)
|
|
Borrowings of long-term debt
|
|
941
|
|
|
7,587
|
|
Repayments of long-term debt
|
|
(2,541)
|
|
|
(9,033)
|
|
Distribution to noncontrolling member
|
|
(360)
|
|
|
-
|
|
Net cash provided by (used in ) financing activities
|
|
518
|
|
|
(1,693)
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH
|
|
1,186
|
|
|
(66)
|
|
|
|
|
|
|
|
|
CASH, beginning of year
|
|
6,195
|
|
|
6,261
|
|
|
|
|
|
|
|
|
CASH, end of year
|
$
|
7,381
|
|
$
|
6,195
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
Interest paid
|
$
|
471
|
|
$
|
1,141
|
|
Income taxes paid
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
NON CASH INVESTING AND FINANCING ACTIVITY
|
|
|
|
|
|
|
There were none
|
$
|
-
|
|
$
|
-
|
|
1. | NATURE OF OPERATIONS, ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES: |
a) | Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts are calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe we maintain adequate reserves. At April 30, 2016 and 2015, the allowance for doubtful accounts was $81 and $81 respectively. |
b) | Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets. |
c) | Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or market. Inventories include material, labor and factory overhead required in the production of our products. |
d) | Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. The lives used for the significant items within each property classification range from 3 to 39 years. |
e) | Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, formerly SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value. |
f) | Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $4,576 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $1,533. BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the Management Contract with the State of Kansas which will end in December 2024. There is no assurance of the Management Contract renewal. The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment. The JET intellectual property is being amortized over a period of fifteen years. |
(dollars in thousands)
|
2016
|
|
2015
|
||
|
|
|
|
||
Privilege fee
|
$
|
5,500
|
|
$
|
5,500
|
Less amortized costs
|
|
1,833
|
|
|
1,410
|
Privilege fee balance
|
$
|
3,667
|
|
$
|
4,090
|
|
|
|
|
|
|
Intangible gaming equipment
|
$
|
4,576
|
|
$
|
3,635
|
Less amortized costs
|
|
2,974
|
|
|
1,961
|
Intangible gaming equipment balance
|
$
|
1,602
|
|
|
1,674
|
|
|
|
|
|
|
JET autopilot intellectual property
|
$
|
1,417
|
|
$
|
1,417
|
Less amortized costs
|
|
772
|
|
|
679
|
JET autopilot balance
|
$
|
645
|
|
$
|
738
|
g) | Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenues being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Consultant costs, as shown below, include costs of engineering, legal and aircraft specialists. STC capitalized costs are as follows: |
(dollars in thousands)
|
2016
|
|
2015
|
||
|
|
|
|
||
Direct labor
|
$
|
2,044
|
|
$
|
1,709
|
Direct materials
|
|
2,638
|
|
|
2,336
|
Consultant costs
|
|
1,922
|
|
|
1,922
|
Overhead
|
|
3,426
|
|
|
2,871
|
|
|
10,030
|
|
|
8,838
|
Less-amortized costs
|
|
3,549
|
|
|
2,975
|
STC balance
|
$
|
6,481
|
|
$
|
5,863
|
h) | Revenue Recognition: Generally, we perform aircraft modifications under fixed-price contracts. Revenue from fixed-price contracts are recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor and material costs. Each quarter our management reviews the progress and performance of our significant contracts. Based on this analysis, any adjustment to sales, cost of sales and/or profit is recognized as necessary in the period they are earned. Changes in estimates of contract sales, cost of sales and profits are recognized using a cumulative catch-up, which is recognized in the current period of the cumulative effect of the change on current or prior periods. Revenue for off-the-shelf items and aircraft sales is recognized on the date of sale. |
i) | Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot. |
j) | Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as current liabilities. |
k) | Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year. |
(in thousands, except per share data)
|
2016
|
|
2015
|
|
||
|
|
|
|
|
||
Net income attributable to Butler National Corporation
|
$
|
24
|
|
$
|
27
|
|
Weighted average common shares outstanding
|
|
63,466,873
|
|
|
62,260,098
|
|
Dilutive effect of non-qualified stock option plans
|
|
-
|
|
|
-
|
|
Weighted average common shares outstanding, assuming dilution
|
|
63,466,873
|
|
|
62,260,098
|
|
Potential common shares if all options were exercised and shares issued
|
|
63,466,873
|
|
|
69,522,162
|
|
Basic earnings per common share
|
$
|
0.00
|
|
$
|
0.00
|
|
Diluted earnings per common share
|
$
|
0.00
|
|
$
|
0.00
|
|
l) | Stock-based Compensation: The Company accounts for stock-based compensation under ASC Topic 505-50, formerly SFAS No. 123R, " Share-Based Payment " and SFAS No. 148, " Accounting for Stock-Based Compensation - Transition and Disclosure - An amendment to SFAS No. 123 ." These standards define a fair value based method of accounting for stock-based compensation. In accordance with SFAS Nos. 123R and 148, the cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Black-Scholes option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. |
m) | Income Taxes: Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize. |
n) | Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2016 and 2015, we had $3,546 and $2,250, respectively in bank deposits that exceeded the federally insured limits. |
o) | Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. |
p) | Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2016 and 2015 was $1,838 and $2,048 respectively. |
q) | Recent Accounting Pronouncements: We do not believe there are any recently issued accounting standards that have not yet been adopted that will have a material impact on the Company's financial statements, except for the following: |
r) | Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations. |
2. | DEBT: |
Promissory Notes
|
2016
|
|
2015
|
||
|
|
|
|
||
Bank line of credit, available LOC $1.0 million interest at prime plus 2% (7.0% at April 30, 2015 - with a floor of 7%), paid off and closed in September 2015.
|
$
|
-
|
|
$
|
700
|
|
|
|
|
|
|
Bank line of credit, available LOC $2.5 million interest at 6%, paid off and closed in September 2015.
|
|
-
|
|
|
656
|
Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by a first and second position on all assets of the Company.
|
3,988
|
154
|
|||
|
$
|
3,988
|
|
$
|
1,510
|
Long-Term Debt
|
|
|
|
|
|
Note payable, interest at 6% paid off in February 2016.
|
$
|
-
|
|
$
|
314
|
|
|
|
|
|
|
Note payable, interest at 6% due April 2017 collateralized by Aircraft Security Agreements.
|
|
81
|
|
|
159
|
|
|
|
|
|
|
Note payable, interest at 6.25% due September 2017 collateralized by Aircraft Security Agreements.
|
|
150
|
|
|
249
|
Note payable, interest at 5.75% due January 2020 collateralized by Aircraft Security Agreements.
|
547
|
674
|
|||
|
|
|
|
|
|
Note payable, interest at bank prime (3.36 % at April 30, 2016) due August 2019, collateralized by real estate.
|
|
192
|
|
|
253
|
|
|
|
|
|
|
Note payable, interest at bank prime (3.36% at April 30, 2016) due March 2019, collateralized by real estate.
|
|
198
|
|
|
261
|
|
|
|
|
|
|
Note payable, interest at bank prime (2.68% at April 30, 2016) due March 2019, collateralized by real estate.
|
|
468
|
|
|
628
|
|
|
|
|
|
|
Note payable, interest at 6.25%, due June 2019, collateralized by real estate.
|
|
291
|
|
|
306
|
|
|
|
|
|
|
Note payable, interest at 4.89% due May 2020, collateralized by all of BNSC's assets and compensation due under the State Management contract.
|
4,602
|
5,500
|
|||
|
|
|
|
|
|
Obligations of BHCMC, LLC due December 2016 and March 2018 with interest rates at 3.5%.
|
|
1,150
|
|
|
895
|
|
|
|
|
|
|
Other notes payable, due June 2016 with interest at 5.8%.
|
|
3
|
|
|
43
|
|
|
|
|
|
|
|
|
7,682
|
|
|
9,282
|
Less: Current maturities
|
|
2,464
|
|
|
2,412
|
|
$
|
5,218
|
|
$
|
6,870
|
Year Ending April 30
|
Amount
|
||
2017
|
$
|
2,464
|
|
2018
|
|
1,952
|
|
2019
|
|
1,594
|
|
2020
|
|
1,569
|
|
2021
|
|
103
|
|
Thereafter
|
|
-
|
|
|
$
|
7,682
|
3. | INCOME TAXES: |
|
April 30, 2016
|
|
April 30, 2015
|
||
Deferred tax liabilities:
|
|
|
|
||
Depreciation
|
$
|
-
|
|
$
|
(178)
|
|
|
|
|
|
|
Deferred tax assets:
|
|
|
|
|
|
Depreciation
|
80
|
-
|
|||
Accounts receivable allowance
|
|
31
|
|
|
28
|
Inventory and other allowances
|
|
859
|
|
|
1,154
|
Vacation accruals
|
|
93
|
|
|
117
|
NOL carryforward
|
41
|
76
|
|||
Total gross deferred tax assets
|
|
1,104
|
|
|
1,375
|
Less valuation allowance
|
|
-
|
|
|
-
|
Net deferred tax assets
|
$
|
1,104
|
|
$
|
1,197
|
|
April 30, 2016
|
|
April 30, 2015
|
||
Statutory federal income tax rate (benefit) expense, net of noncontrolling interest
|
|
34.00%
|
|
|
34.00%
|
State income tax net of federal benefits
|
|
0.00%
|
|
|
0.00%
|
Permanent tax
|
|
30.70%
|
|
|
59.15%
|
Other
|
|
14.75%
|
|
|
(9.71)%
|
|
|
79.45%
|
|
|
83.44%
|
Income tax expense:
|
|
|
|
||
Deferred income tax
|
$
|
93
|
|
$
|
138
|
Current income tax
|
|
-
|
|
|
-
|
Total income tax expense
|
$
|
93
|
|
$
|
138
|
4. | STOCKHOLDERS' EQUITY: |
5. | STOCK OPTIONS AND INCENTIVE PLANS |
6. | COMMITMENTS AND CONTINGENCIES : |
Year Ending April 30
|
Amount
|
||
2017
|
$
|
5,027
|
|
2018
|
|
5,016
|
|
2019
|
|
4,929
|
|
2020
|
|
4,946
|
|
2021
|
|
4,995
|
|
|
$
|
24,913
|
Year ended April 30, 2016
|
Professional Services
|
|
Aerospace Products
|
|
Consolidated
|
|||
Total revenues
|
$
|
29,784
|
|
$
|
15,010
|
|
$
|
44,794
|
Depreciation and amortization
|
|
1,390
|
|
|
784
|
|
|
2,174
|
Operating income (loss)
|
|
1,597
|
|
|
(975)
|
|
|
622
|
Capital expenditures, net
|
|
242
|
|
|
1,574
|
|
|
1,816
|
Interest expense
|
|
-
|
|
|
-
|
|
|
(471)
|
Other income (expense)
|
|
-
|
|
|
-
|
|
|
21
|
Income before taxes
|
|
-
|
|
|
-
|
|
|
908
|
Income tax expense
|
|
-
|
|
|
-
|
|
|
93
|
Net income attributable to Butler National Corporation
|
|
-
|
|
|
-
|
|
|
24
|
Identifiable assets, net
|
|
22,462
|
|
|
20,235
|
|
|
42,697
|
Year ended April 30, 2015
|
Professional Services
|
|
Aerospace Products
|
|
Consolidated
|
|||
Total revenues
|
$
|
30,795
|
|
$
|
16,267
|
|
$
|
47,062
|
Depreciation and amortization
|
|
1,573
|
|
|
1,312
|
|
|
2,885
|
Operating income (loss)
|
|
1,794
|
|
|
(475)
|
|
|
1,319
|
Capital expenditures, net
|
|
420
|
|
|
3,262
|
|
|
3,682
|
Interest expense
|
|
-
|
|
|
-
|
|
|
(1,141)
|
Other income (expense)
|
|
-
|
|
|
-
|
|
|
16
|
Income before taxes
|
|
-
|
|
|
-
|
|
|
967
|
Income tax expense
|
|
-
|
|
|
-
|
|
|
138
|
Net income attributable to Butler National Corporation
|
|
-
|
|
|
-
|
|
|
27
|
Identifiable assets, net
|
|
21,650
|
|
|
19,948
|
|
|
41,598
|
|
2016
|
|
2015
|
|
||
Aerospace Products
|
|
N/A *
|
|
|
N/A *
|
|
Professional Services
|
|
N/A *
|
|
|
N/A *
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||
Promissory notes
|
$
|
-
|
|
$
|
-
|
|
$
|
3,988
|
|
$
|
3,988
|
Long-term debt
|
|
-
|
|
|
-
|
|
|
7,682
|
|
|
7,682
|
|
$
|
-
|
|
$
|
-
|
|
$
|
11,670
|
|
$
|
11,670
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||
Promissory notes
|
$
|
-
|
|
$
|
-
|
|
$
|
1,510
|
|
$
|
1,510
|
Long-term debt
|
|
-
|
|
|
-
|
|
|
9,282
|
|
|
9,282
|
|
$
|
-
|
|
$
|
-
|
|
$
|
10,792
|
|
$
|
10,792
|
2016
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|||||
Revenues
|
$
|
11,696
|
|
$
|
10,106
|
|
$
|
11,067
|
|
$
|
11,925
|
|
$
|
44,794
|
Operating income (loss)
|
|
361
|
|
|
(599)
|
|
|
442
|
|
|
418
|
|
|
622
|
Non-operating income (expense)
|
|
(119)
|
|
|
(108)
|
|
|
(104)
|
|
|
617
|
|
|
286
|
Net income (loss) attributable to Butler National Corporation
|
|
19
|
|
|
(478)
|
|
|
102
|
|
|
381
|
|
|
24
|
Basic earnings (loss) per share*
|
|
0.00
|
|
|
(0.01)
|
|
|
0.00
|
|
|
0.01
|
|
|
0.00
|
Diluted earnings (loss) per share*
|
|
0.00
|
|
|
(0.01)
|
|
|
0.00
|
|
|
0.01
|
|
|
0.00
|
*Rounded to nearest hundredth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Total
|
|||||
Revenues
|
$
|
12,391
|
|
$
|
11,752
|
|
$
|
11,083
|
|
$
|
11,836
|
|
$
|
47,062
|
Operating income (loss)
|
|
806
|
|
|
367
|
|
|
535
|
|
|
(389)
|
|
|
1,319
|
Non-operating income (expense)
|
|
(286)
|
|
|
(300)
|
|
|
(246)
|
|
|
480
|
|
|
(352)
|
Net income (loss) attributable to Butler National Corporation
|
|
252
|
|
|
29
|
|
|
68
|
|
|
(322)
|
|
|
27
|
Basic earnings (loss) per share*
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
(0.01)
|
|
|
0.00
|
Diluted earnings (loss) per share*
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
(0.01)
|
|
|
0.00
|
*Rounded to nearest hundredth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year Butler National (QX) Chart |
1 Month Butler National (QX) Chart |
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