OLATHE, Kan.,
July 29 /PRNewswire-FirstCall/ -- Butler National
Corporation (OTC Bulletin Board: BUKS) a leading manufacturer and provider of
support systems for "Classic" commercial and military aircraft, announces its
financial results for the fourth quarter fiscal 2008 and year ended
April 30,
2008. In conjunction with the release, the Company has scheduled a conference
call
Monday, August 4, 2008 at
9:00 AM Central Daylight Time.
What: Butler National Corporation Fourth Quarter and Fiscal Year End
Results Conference Call
When: Monday, August 4, 2008 - 9:00AM Central Daylight Time
How: Live via phone by dialing 800-624-7038. 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 Corporation, will be
leading the call and discussing results of the fourth quarter and year end
financial results, the status of existing and new business, and an outlook on
fiscal 2009. Mr. Stewart will also discuss Butler National's July 31st
presentation to the Kansas Lottery Review Board.
Historical selected financial data related to all operations:
Year Ended April 30 Quarter Ended April 30
(In thousands except (In thousands except
per share data) per share data)
2008 2007 2006 2008 2007 2006
Net Sales $17,647 $14,681 $15,307 $4,446 $3,906 $3,072
Operating Income 2,203 1,251 937 1,015 627 187
Net Income 1,274 606 366 662 415 15
Total Assets 27,104 20,445 18,138 27,104 20,445 18,138
Long-term
Obligations 6,416 2,521 1,844 6,416 2,521 1,844
Stockholders'
Equity 12,190 10,648 9,829 12,190 10,648 9,829
Weighted Average
Shares - Diluted 53,928 53,180 52,694 53,928 53,180 52,694
New Product Research
and Development
Cost 4,266 1,946 1,558 520 439 416
nr = not reported
Management Comments:
"Fiscal 2008 beat a strong fiscal 2007 and became our second best year
ever for net income, $1,274,000, with sales of $17,647,000. Sales for fiscal
2008 increased $2,966,000 (20%) from fiscal 2007. Net income for fiscal 2008
increased $668,000, (110%) from fiscal 2007. We consider 2008 another
successful year for Butler National. We continue our efforts to improve the
profitability in the delivery of high-value "Classic Aviation" products.
During Fiscal 2008, we invested approximately $4,266,000 toward new
business development. Approximately $2,450,000 is invested in gaming
development activities in Kansas and $1,817,000 in the development and
acquisition of new products. We feel this expenditure for the design and
development engineering, testing, and certification of new products may
stabilize our long-term revenues and enhance our profits. We believe our
investment in Kansas property will position Butler for a gaming management
agreement that may be awarded to us by the State of Kansas in this calendar
year.
Avionics:
Fiscal 2008 Avionics sales were $5,025,000, an increase of $1,486,000
(42.0%) from fiscal 2007. This increase is directly related to sales of
defense products. Fiscal 2008 Avionics operating profit was $843,000, an
increase of $556,000 (193.6%) from fiscal 2007. This increase in operating
profit is related to streamlined assembly processes and a stable and
experienced production staff. Management expects long-term increased sales
for the fuel system protection devices when certified like the TSD, GFI, and
other classic aviation and defense products.
Aircraft Modifications:
Fiscal 2008 sales for Aircraft Modifications were $8,647,000, an increase
of $1,950,000 (29.1%) from fiscal 2007. Fiscal 2008 operating profit for
Aircraft Modifications was $815,000, an improvement of $1,042,000 from fiscal
2007. Sales and profits were driven by a strong demand for camera
installations and performance enhancing modifications.
We believe we will sell and install approximately 25 to 35 Lear 20 & 30
series RVSM kits during the next two years. In addition to the RVSM sales, we
expect to experience some increase in our base modification sales. A shift to
business aircraft ownership from commercial airline travel may positively
impact our aircraft modification revenues.
Professional Services:
Revenue from Services decreased from $2,403,000 in fiscal 2007 to
$1,558,000 in fiscal 2008, a decrease of 35.2%. During fiscal 2008, we
maintained a relatively level volume of long-term contracts with
municipalities. Revenues decreased due to the delay in the contract for the
rehabilitation of city lift stations. The economic reality of lower tax
revenue to the municipalities curtailed spending budgets for new equipment and
upgrades. At some time, we anticipate the revenues from additional lift
station rehabilitations to resume and generate additional revenue over the
next four years. Revenue fluctuates due to the introduction of new products
and services and the related installations of these types of products. Our
contracts with our two largest customers have been renewed through fiscal
2009. An operating profit of $138,000 in Monitoring Services was recorded in
fiscal 2008, compared to a fiscal 2007 profit of $186,000 a decrease of 25.6%.
We believe the service business has had revenue stability over the past few
years and we expect this to continue.
Revenues from management services related to gaming decreased 9.7% for
fiscal 2008 compared with fiscal 2007. The decrease is related to the forced
closing during the flood in July 2007 and extreme inclement weather during the
winter months in Northeast Oklahoma.
Backlog:
As of July 3, 2008, our backlog is $7.8 million. This backlog reflects
our product development efforts and the related potential results. Our
challenges are to ship and add to the backlog and further take advantage of
these new products. However, because of our major investment in product
development required to continue these new products, we may not always
maintain smooth and continuous quarterly profits.
"We are moving confidently into 2009 and believe we are well 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.
Our Business:
Butler National Corporation operates in the Aerospace and Services
business segments. The Aerospace segment focuses on the manufacturing of
support systems for "Classic" commercial and military aircraft including the
Butler National TSD for the Boeing 737 and 747 Classic aircraft, switching
equipment for Boeing/Douglas Aircraft, weapon control systems for Boeing
Helicopter and performance enhancement structural modifications for Learjet,
Cessna, Dassault and Hawker/Beechcraft business aircraft. Services include
electronic monitoring of water pumping stations, temporary employee services,
Indian gaming services and administrative management services.
Forward-Looking Information:
The information set forth above may include "forward-looking" information
as outlined in the Private Securities Litigation Reform Act of 1995. The
Cautionary Statements and Risk Factors, filed by the Company as Exhibit 99 to
the Company's Annual Report on Form 10-K and Section 1A of Form 10-K, are
incorporated herein by reference and investors are specifically referred to
such Cautionary Statements and Risk Factors for discussion of factors, which
could affect the Company's operations, and forward-looking statements
contained herein.
FOR MORE INFORMATION, CONTACT:
Craig D. Stewart, Investor Relations Ph (214) 498-7775
Butler National Corporation Fax (913) 780-5088
19920 W. 161st Street
Olathe, KS 66062
Jim Drewitz, Public Relations Ph (830) 669-2466
jim@jdcreativeoptions.com
THE WORLDWIDE WEB:
Please review www.butlernational.com for pictures of our products and
details about Butler National Corporation and its subsidiaries.
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