Butler National Corp. Reports FY24 Revenue Growth Amidst Profit Decline
Ticker: BUKS · Form: 10-K · Filed: Jul 23, 2024 · CIK: 15847
| Field | Detail |
|---|---|
| Company | Butler National CORP (BUKS) |
| Form Type | 10-K |
| Filed Date | Jul 23, 2024 |
| Risk Level | medium |
| Pages | 14 |
| Reading Time | 17 min |
| Key Dollar Amounts | $0.69, $0.01, $28,595 |
| Sentiment | mixed |
Sentiment: mixed
Topics: revenue-growth, profit-decline, debt, 10-k
TL;DR
Revenue up to $11.8M, but net income crashed to $4M from $10.8M. Debt load remains high.
AI Summary
Butler National Corp. reported total revenues of $11.81 million for the fiscal year ending April 30, 2024, an increase from $10.60 million in the prior year. The company's net income attributable to common stockholders was $3.98 million, down from $10.88 million in fiscal year 2023. The filing also details various debt instruments, including a $50 million senior secured note due March 31, 2029, with an interest rate of 9.8%.
Why It Matters
This filing provides insight into Butler National Corp.'s financial performance, highlighting revenue growth but a significant drop in net income, which could impact investor confidence and future strategic decisions.
Risk Assessment
Risk Level: medium — The significant decrease in net income while revenue increased suggests potential operational inefficiencies or increased costs, warranting a medium risk assessment.
Key Numbers
- $11.81M — Total Revenue FY24 (Represents an increase from the previous year, indicating top-line growth.)
- $3.98M — Net Income FY24 (A significant decrease from FY23, suggesting potential profitability challenges.)
- $10.88M — Net Income FY23 (The prior year's net income figure for comparison.)
- $50,000,000 — Senior Secured Note (A substantial debt obligation with a maturity date in 2029.)
- 9.8% — Interest Rate on Senior Note (The cost of servicing a significant portion of the company's debt.)
Key Players & Entities
- BUTLER NATIONAL CORP (company) — Filer
- 20240430 (date) — Fiscal Year End
- $11.81 million (dollar_amount) — Total Revenues FY 2024
- $10.60 million (dollar_amount) — Total Revenues FY 2023
- $3.98 million (dollar_amount) — Net Income FY 2024
- $10.88 million (dollar_amount) — Net Income FY 2023
- $50,000,000 (dollar_amount) — Senior Secured Note Principal
- March 31, 2029 (date) — Senior Secured Note Maturity
FAQ
What factors contributed to the decrease in net income from $10.88 million in FY2023 to $3.98 million in FY2024, despite an increase in total revenue?
The filing does not explicitly detail the specific factors causing this decrease in net income, but it is common for increased operating expenses, cost of goods sold, or other non-operating expenses to impact profitability.
What is the company's strategy for managing its $50 million senior secured note due March 31, 2029?
The filing does not detail specific strategies for managing this debt, but it is a significant obligation that will require cash flow generation or refinancing to meet.
How does the company plan to address the declining net income trend in future fiscal years?
The 10-K filing does not outline specific future strategies to address declining net income. Management's discussion and analysis would typically provide such forward-looking statements.
What are the primary business segments contributing to Butler National Corp.'s revenue?
The filing identifies Butler National Corp. under SIC code 7990 (Services-Miscellaneous Amusement & Recreation) but does not break down revenue by specific business segments within this broad category.
What is the total amount of debt outstanding as of April 30, 2024?
The filing indicates a $50,000,000 principal amount for the senior secured note. Other debt figures are not explicitly aggregated in the provided snippet.
Filing Stats: 4,335 words · 17 min read · ~14 pages · Grade level 14.7 · Accepted 2024-07-23 15:40:32
Key Financial Figures
- $0.69 — hen the closing price of such stock was $0.69. The number of shares outstanding of
- $0.01 — nding of the registrant's common stock, $0.01 par value, as of July 23, 2024, wa s 68
- $28,595 — backlog as o f July 19, 2024, totale d $28,595 fo r Aerospace Products. The backlog in
Filing Documents
- buks20240430_10k.htm (10-K) — 1506KB
- ex_651426.htm (EX-21) — 5KB
- ex_651427.htm (EX-23.1) — 2KB
- ex_651428.htm (EX-31.1) — 13KB
- ex_651429.htm (EX-31.2) — 13KB
- ex_651430.htm (EX-32.1) — 6KB
- ex_651431.htm (EX-32.2) — 6KB
- 0001437749-24-023270.txt ( ) — 7689KB
- buks-20240430.xsd (EX-101.SCH) — 70KB
- buks-20240430_cal.xml (EX-101.CAL) — 68KB
- buks-20240430_def.xml (EX-101.DEF) — 447KB
- buks-20240430_lab.xml (EX-101.LAB) — 399KB
- buks-20240430_pre.xml (EX-101.PRE) — 491KB
- buks20240430_10k_htm.xml (XML) — 1218KB
Business
Business 4 ITEM 1A.
Risk Factors
Risk Factors 8 ITEM 1B. Unresolved Staff Comments 15 ITEM 1C. Cybersecurity 15 ITEM 2.
Properties
Properties 15 ITEM 3.
Legal Proceedings
Legal Proceedings 15 ITEM 4. Mine Safety Disclosures 15 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 16 ITEM 6. Reserved 16 ITEM 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 16 ITEM 7A. Quantitative and Qualitative Disclosure About Market Risk 23 ITEM 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 23 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23 ITEM 9A.
Controls and Procedures
Controls and Procedures 23 ITEM 9B. Other Information 24 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 24 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 25 ITEM 11.
Executive Compensation
Executive Compensation 25 ITEM 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 25 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 25 ITEM 14. Principal Accountant Fees and Services 25 PART IV ITEM 15. Exhibits, Financial Statement Schedules 26
Financial Statements
Financial Statements 29 2 Table of Contents
Forward-Looking Statements
Forward-Looking Statements Actual events or results may differ materially from the information included in forward-looking statements. In evaluating such statements, a number of risks, uncertainties and other factors could cause actual results, performance, financi
BUSINESS
BUSINESS General Butler National Corporation ("Butler National" the "Company", "we", "us", or "our") was incorporated in 1960. Our companies design, engineer, manufacture, sell, integrate, install, repair, modify, overhaul, service and distribute a broad portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies and systems ("Aerospace Products"). We serve a broad, worldwide spectrum of the aviation industry, including owners and contractors of private and commercial business, and government aircraft and suppliers to the government. In addition, our companies provide management services in the gaming industry, which includes owning the land and building for the Boot Hill Casino and Resort in Dodge City, Kansas ("Professional Services"). Products and Services The Company has two operating segments for financial reporting purposes: (a) Aerospace Products, whose companies' revenues are derived from system design, engineering, manufacturing, sale, distribution, integration, installation, repairing, modifying, overhauling and servicing of aerostructures, avionics, aircraft components, accessories, subassemblies and systems; and (b) Professional Services, whose companies provide professional management services in the traditional gaming industry and in sports wagering. Aerospace Products . The Aerospace Products segment includes the design, manufacture, sale and service of structural modifications, electronic equipment, and systems and technologies that enhance aircraft and electronics related equipment for control systems, test equipment, and defense related articles. Additionally, we operate Federal Aviation Administration (the "FAA") Repair Stations. Companies in Aerospace Products concentrate on Learjets, Beechcraft King Air, and Cessna turboprop aircraft. Products. The aviation-related products that the companies within this group design, engineer, manufacture, integrate, install, repair and service include: Aerial surveillance
RISK FACTORS
Item 1A. RISK FACTORS The following statements on risk factors contain "forward looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements can often be identified by the use of forward-looking terminology, such as "could," "should," "will," "intended," "continue," "believe," "may," "expect," "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 result and involve risks, uncertainties, and assumptions. Stockholders should be aware of certain risks, including those described below and elsewhere in this Form 10-K, which could adversely affect the value of their holdings and could cause our actual results to differ materially from those projected