- The increase in sales for fiscal year 2005 is due to an increase in business in the Aircraft Modifications and Avionics related Classic Aviation Products.
- Sales for the first six months fiscal year 2005 were $11.1 million, an increase of $6.7 million
- Sales for the second quarter fiscal year 2005 ended October 31, 2004 increased 146% or $3.5 million to $5.9 million as compared to $2.4 million from the same period last year.
- Operating income for the first six months fiscal year 2005 increased $797,000 (215%) after deducting a research and development charge of $631,318, primarily related to product improvements in Avionics and Aircraft Modifications.
- Backlog at October 31, 2004 was $11,700,000 compared to $11,456,000 at April 30, 2004 and $6,800,000 at October 31, 2003.
Management Comments:
Clark D. Stewart, President of the Butler National said, "We just completed the first six months of fiscal year 2005 on target with our Classic product development plans. Our focus on Classic Aviation Products allowed us to invest in product development and market refinement as an expense, 6% of sales, and show over a million dollar profit. We also just completed our third profitable year, April 30, 2004, and exceeded the 2004 profit by 37% in the first half of fiscal 2005. We continue development of new products to stabilize our long-term revenues, including RVSM for the Learjet 20 series and the Falcon 20 series airplanes, weapon control systems, expanded professional services, and extension of our gaming management segment.
Our determination to focus Butler National Corporation on 'Classic' Aviation Products, consistent with our long and significant heritage as a manufacturer of airline avionics equipment and as a modification facility for aircraft in service is beginning to make a positive showing on the financial statements. We intend to provide Classic Aviation Products that will support and promote continued safe commercial and general aviation. Our plans are to provide support to in-service aircraft that will operate with a positive cost benefit into the middle of the 21st century.
Currently, our backlog is almost $12 million that reflects the potential to realize the results of our product development efforts. We must continue working hard to ship the backlog, replace the backlog with new orders and further take advantage of these new products. We should note that our April 30, 2004 backlog was approximately equal to our sales during the first half of fiscal 2005. We are pleased to see the growth in our backlog for our new Classic Aviation Products and Services. Significant accomplishments were made by all operating segments. However, because of our major investment in product development, we may not always maintain smooth and continuous quarterly profits.
I am pleased with the continued progress and very hard work by our people in this fiscal year. Many programs and projects are being established to continue this progress into the future. We are looking forward to a very good year in fiscal 2005."
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 Raytheon 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, filed by the Company as Exhibit 99 to the Company's Annual Report on Form 10-K, 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.
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FOR MORE INFORMATION CONTACT:
William A. Griffith, Investor Relations
Butler National Corporation
19920 W. 161st Street
Olathe, KS 66062
Jim Drewitz, Public Relations
jdrewitz@comcast.net | Phone (913) 780-9595
Fax (913) 780-5088
Phone (972) 355-6070 |
