Fri. Jan 24th, 2020

Butler National Corporation (OTCQB: BUKS)

21 min read

Butler National Corporation (OTCQB: 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, reported its financial results for the 2nd-quarter fiscal 2k20 finished October 31, 2k19.  In conjunction with the release, the Company has scheduled a conference call Tuesday, December 17, 2k19 at 9:00 AM Central Standard Time.

Management Comments

“The quarter-ended October 31, 2k19 continued a strong start to financial year 2k20. Revenue inclined 27.00 percent to $19.40M in the 3.0-months finished October 31, 2k19, as compared to $15.30M in the 3.0 months finished October 31, 2k18. The incline in revenue reflects an incline of 52.00 percent in Aerospace Products revenue and an incline of 3.0 percent 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 efforts in South America, Europe, Africa, and Asia.

The 2nd-quarter fiscal 2k20 net income was $2.20M compared to a net income of $1.70M in the 2nd-quarter fiscal 2k19. 2nd-quarter fiscal 2k20 operating margin was 21.70 percent compared to 11.90 percent in the 2nd-quarter fiscal 2k19. We continue to work to improve efficiencies in our implementation, operational processes, and controlling general and administrative costs.

Business Segment Highlights

Professional Services:
Revenue inclined 3.0 percent for the 3.0-months finished October 31, 2k19 to $8.10M compared to $7.90M in the 3.0-months finished October 31, 2k18. Costs declined 19.00 percent in the 3.0-months finished October 31, 2k19 to $4.00M compared to $4.90M for the 3.0-months finished October 31, 2k18. Costs were 49.00 percent of segment total revenues in the 3.0-months finished October 31, 2k19, as compared to 63.00 percent of segment total revenues in the 3.0-months finished October 31, 2k18. Costs inclined 1.0 percent in the 3.0-months finished October 31, 2k19 to $2.90M compared to $2.90M in the 3.0-months finished October 31, 2k18. Costs were 36.00 percent of segment total revenues in the 3.0-months finished October 31, 2k19, as compared to 36.00 percent of segment total revenues in the 3.0-months finished October 31, 2k18. Operating income inclined 2489 percent to $1.20M in the 3.0-months finished October 31, 2k19 from $46,000.00 in the 3.0-months finished October 31, 2k18.

Aerospace Products:
Revenue inclined 52.00 percent to $11.30M in the 3.0-months finished October 31, 2k19, compared to $7.40M in the 3.0-months finished October 31, 2k18. The incline in revenue was due to an incline of $1.20M in avionics business and a $2.70 incline in modification business. Costs inclined by 52.00 percent in the 3.0-months finished October 31, 2k19 to $6.60M compared to $4.30M for the 3.0-months finished October 31, 2k18. Costs were 58.00 percent of segment total revenue in the 3.0-months finished October 31, 2k19, as compared to 58.00 percent of segment total revenue in the 3.0-months finished October 31, 2k18. Costs inclined 30.00 percent in the 3.0-months finished October 31, 2k19 to $1.70M compared to $1.30M in the 3.0-months finished October 31, 2k18. Costs were 15.00 percent of segment total revenue in the 3.0-months finished October 31, 2k19, as compared to 18.00 percent of segment total revenue in the 3.0-months finished October 31, 2k18. Operating income from Aerospace Products inclined 71.00 percent to $3.00M in the 3.0-months finished October 31, 2k19 from $1.80M in the 3.0 months finished October 31, 2k18.

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