Butler National (BUKS) 10-Q 15 Sep 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Jul. 31, 2014	Sep. 05, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'BUTLER NATIONAL CORP	'
Entity Central Index Key	'0000015847	'
Current Fiscal Year End Date	'--04-30	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Public Float	'	$0
Entity Common Stock, Shares Outstanding	'	61,493,092
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q1	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Jul-14	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Jul. 31, 2014	Apr. 30, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS:	'	'	'
Cash	$5,581	$6,261	$4,561
Notes and accounts receivable	2,966	3,109	'
Inventories	'	'	'
Raw materials	5,308	5,102	'
Work in process	1,767	1,090	'
Finished goods	142	144	'
Total inventory	7,217	6,336	'
Prepaid expenses and other current assets	880	825	'
Total current assets	16,644	16,531	'
PROPERTY, PLANT AND EQUIPMENT:	'	'	'
Land and building	4,044	4,044	'
Aircraft	6,723	6,723	'
Machinery and equipment	3,549	3,535	'
Office furniture and fixtures	6,577	6,447	'
Leasehold improvements	4,081	4,060	'
Property, plant and equipment, gross	24,974	24,809	'
Accumulated depreciation	-12,871	-12,140	'
Total property, plant and equipment	12,103	12,669	'
SUPPLEMENTAL TYPE CERTIFICATES (net of amortization of $2,849 at July 31, 2014 and $2,841 at April 30, 2014)	3,943	3,744	'
OTHER ASSETS:	'	'	'
Deferred tax asset	1,335	1,335	'
Other assets (net of accumulated amortization of $2,849 at July 31, 2014 and $2,520 at April 30, 2014)	7,515	7,399	'
Total other assets	8,850	8,734	'
Total Assets	41,540	41,678	'
CURRENT LIABILITIES:	'	'	'
Promissory notes	1,548	1,757	'
Current maturities of long-term debt	3,670	3,908	'
Accounts payable	1,362	1,375	'
Customer deposits	1,841	982	'
Gaming facility mandated payment	924	1,267	'
Compensation and compensated absences	1,053	1,122	'
Other current liabilities	311	93	'
Total current liabilities	10,709	10,504	'
LONG-TERM DEBT, NET OF CURRENT MATURITIES:	6,093	6,820	'
Total liabilities	16,802	17,324	'
COMMITMENTS AND CONTINGENCIES	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Common stock, par value $.01: authorized 100,000,000 shares issued and outstanding 61,493,092 shares at July 31, 2014 and 61,493,092 shares at April 30, 2014	614	614	'
Capital contributed in excess of par	13,282	13,282	'
Treasury stock at cost, 600,000 shares	-732	-732	'
Retained Earnings	8,386	8,134	'
Total stockholders' equity Butler National Corporation	21,550	21,298	'
Noncontrolling Interest in BHCMC, LLC	3,188	3,056	'
Total stockholders' equity	24,738	24,354	'
Total Liabilities and Stockholders' Equity	41,540	41,678	'
Preferred Class A [Member]	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Preferred stock	0	0	'
Preferred Class B [Member]	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'
Preferred stock	$0	$0	'

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $)	Jul. 31, 2014	Apr. 30, 2014	Jul. 31, 2014	Apr. 30, 2014	Jul. 31, 2014	Jul. 31, 2013	Apr. 30, 2014	Jul. 31, 2014	Apr. 30, 2014
In Thousands, except Share data, unless otherwise specified			Class A [Member]	Class A [Member]	Class B [Member]	Class B [Member]	Class B [Member]	Class A and B [Member]	Class A and B [Member]
ASSETS	'	'	'	'	'	'	'	'	'
SUPPLEMENTAL TYPE CERTIFICATES net of amortization	$2,849	$2,841	'	'	'	'	'	'	'
OTHER ASSETS	'	'	'	'	'	'	'	'	'
Other assets, accumulated amortization	2,849	2,520	'	'	'	'	'	'	'
STOCKHOLDERS' EQUITY:	'	'	'	'	'	'	'	'	'
Preferred stock, par value (in dollars per share)	'	'	$5	$5	$5	'	$5	'	'
Preferred stock, shares authorized (in shares)	'	'	50,000,000	50,000,000	50,000,000	'	50,000,000	'	'
Preferred stock, designated classes (in shares)	'	'	'	'	'	'	'	200,000	200,000
Preferred stock, stated value (in dollars per share)	'	'	$100	$100	$1,000	'	$1,000	'	'
Preferred stock, dividend rate (in hundredths)	'	'	9.80%	9.80%	6.00%	6.00%	'	'	'
Preferred stock, liquidation preference value (in hundredths)	'	'	9.80%	9.80%	6.00%	6.00%	'	'	'
Preferred stock, redemption value	'	'	$100	$100	$1,000	'	$1,000	'	'
Preferred stock, shares issued (in shares)	'	'	0	0	0	'	0	'	'
Preferred stock, shares outstanding (in shares)	'	'	0	0	0	'	0	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01	'	'	'	'	'	'	'
Common stock, shares authorized (in shares)	100,000,000	100,000,000	'	'	'	'	'	'	'
Common stock, shares issued (in shares)	61,493,092	61,493,092	'	'	'	'	'	'	'
Common stock, shares outstanding (in shares)	61,493,092	61,493,092	'	'	'	'	'	'	'
Common stock, shares owed but not issued (in shares)	0	0	'	'	'	'	'	'	'
Treasury stock (in shares)	600,000	600,000	'	'	'	'	'	'	'

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Jul. 31, 2014	Jul. 31, 2013
REVENUE:	'	'
Professional services	$7,624	$8,326
Aerospace products	4,767	2,671
Total revenue	12,391	10,997
COSTS AND EXPENSES:	'	'
Cost of professional services	4,561	4,778
Cost of aerospace products	3,498	2,510
Marketing and advertising	1,138	1,064
Employee benefits	462	568
Depreciation and amortization	861	885
General, administrative and other	1,065	1,049
Total costs and expenses	11,585	10,854
OPERATING INCOME	806	143
OTHER INCOME (EXPENSE):	'	'
Interest expense	-289	-390
Other income, net	3	38
Total other income (expense),	-286	-352
INCOME (LOSS) BEFORE INCOME TAXES	520	-209
Net income	384	-53
Net income attributable to noncontrolling interest in BHCMC, LLC	-132	-236
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION	252	-289
PROVISION FOR INCOME TAXES	'	'
Provision (benefit) for income taxes	$136	($156)
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	$0	$0
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	61,493,092	59,019,173
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	$0	$0
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	61,493,092	59,019,173

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jul. 31, 2014	Jul. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income	$384	($53)
Adjustments to reconcile cash flows from operating activities	'	'
Depreciation and amortization	1,068	1,100
Stock options issued to employees and directors	0	8
Gain and loss on disposal of other assets	0	-36
Changes in assets and liabilities	'	'
Accounts receivable	143	-182
Income tax receivable	0	-37
Inventories	-881	-306
Prepaid expenses and other current assets	-143	2
Accounts payable	-13	41
Customer deposits	859	391
Accrued liabilities	-69	9
Gaming facility mandated payment	-343	-342
Other liabilities	218	52
Cash flows from operating activities	1,223	647
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Capital expenditures	-372	-106
Cash flows from investing activities	-372	-106
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Borrowings promissory notes, net	-209	87
Contributed capital	-1,531	0
Repayments of promissory notes and long-term debt	-1,322	-1,215
Cash flows from financing activities	-1,531	-1,128
NET DECREASE IN CASH	-680	-587
CASH, beginning of period	6,261	5,148
CASH, end of period	5,581	4,561
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	'	'
Interest paid	290	389
Income taxes paid	0	0
NON CASH OPERATING ACTIVITY	'	'
Non cash stock options issued to employees and directors	0	8
Intangible gaming equipment and notes	$357	$1,070

Organization_Consolidated_and_

Organization, Consolidated and Presentation of Financial Statements	3 Months Ended
	Jul. 31, 2014
Organization, Consolidated and Presentation of Financial Statements [Abstract]	'
Organization, Consolidated and Presentation of Financial Statements	'
	1. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the annual report on Form 10-K for the fiscal year ended April 30, 2014. In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three months ended July 31, 2014 are not indicative of the results of operations that may be expected for the fiscal year ended April 30, 2015.
	Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. Financial amounts are in thousands of dollars except per share amounts.

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	3 Months Ended
	Jul. 31, 2014
Net Income (Loss) Per Share [Abstract]	'
Net Income (Loss) Per Share	'
	2. Net Income (Loss) Per Share: The Company follows ASC 260 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net earnings (loss) per share are excluded. The number of potential common shares as of July 31, 2014 is 66,281,237.

Research_and_Development

Research and Development	3 Months Ended
	Jul. 31, 2014
Research and Development [Abstract]	'
Research and Development	'
	3. Research and Development: We invested in research and development activities. The amount invested in the three months ended July 31, 2014 and 2013 was $405 and $557 respectively.

Borrowings

Borrowings	3 Months Ended
	Jul. 31, 2014
Borrowings [Abstract]	'
Borrowings	'
	4. Debt: At July 31, 2014, the Company was utilizing three lines of credit totaling $4.0 million. The unused line at July 31, 2014 was $2.5 million. These funds were primarily used for the purchase of inventory and aircraft modification STC development costs for modifications and avionics.
	Our $1,000 million line of credit has been extended to August 2015. Our $2,500 million line of credit matures April 2015. Our $500 million line of credit matures June 2015.  The lines of credit are collateralized by the first and second positions on all assets of the Company.
	At July 31, 2014, there were several notes collateralized by aircraft security agreements totaling $1,117. These notes were used for the purchase and modifications of these collateralized aircraft and Kings Avionics, Inc.
	There are three notes at a bank totaling $1,354 for real estate located in Olathe, Kansas and Tempe, Arizona. The due date for these notes is March 2019 and August 2019.
	One note totaling $316 remains for real estate purchased in November 2007 and June 2009 in Dodge City, Kansas.
	One note collateralized by automobiles and equipment totals an additional $71 and matures in June 2016.
	BHCMC entered into an obligation with Konami Gaming Inc. effective August 1, 2012 in the amount of $1,733. The purchase of the gaming system was installed at Boot Hill Casino and has a current balance of $75.
	The Kansas Lottery acquired additional gaming machines.  BHCMC, as manager under the management contract with the State of Kansas, was required to remit payment for the gaming equipment. The balance of this financed payable is $768.
	BHCMC, LLC ("BHCMC") entered into an agreement dated May 1, 2011, and amended via an addendum dated January 1, 2012, with BHC Investment Company, L.C. ("BHCI") for a total obligation of $7,423.  BHCI provided funds to BHCMC for the purchase of certain intangible items and gaming items related to the Boot Hill Casino.  Commencing on January 1, 2012, BHCMC is obligated to make a minimum payment to BHCI of $177 per month until September 30, 2017.  The remaining balance on the obligation is $4,274.
	On August 24, 2012 BHCMC and BHCI entered into a second agreement of $2,500 for tenant improvements related to expansion of the Boot Hill Casino.  Commencing on November 1, 2012. BHCMC is obligated to make a minimum payment to BHCI of approximately $55 per month until November 30, 2017.  The remaining obligation is $1,788.
	We are not in default of any of our notes as of July 31, 2014.
	We believe that our current banks will provide the necessary capital for our business operations. However, we continue to maintain contact with other banks that have an interest in funding our working capital needs to continue our growth in operations in 2014 and beyond.

Other_Assets

Other Assets	3 Months Ended
	Jul. 31, 2014
Other Assets [Abstract]	'
Other Assets	'
	5. Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $2,252 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417.  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 15 years.

Stock_Options

Stock Options	3 Months Ended
	Jul. 31, 2014
Stock Options [Abstract]	'
Stock Options	'
	6. Stock Options: At July 31, 2014 we had 7,262,064 outstanding stock options that were issued on December 31, 2010 all of which expire on December 31, 2015.
	The exercise price for the incentive stock options is $0.49. The Board of Directors approved the issuance of incentive stock options on December 31, 2010 with the goals of increasing shareholder value, expanding the number of managers participating in the program, and increasing the percentage of compensation tied to share price performance.
	The incentive stock options are allocated in three groups with two conditions for vesting. The first condition is stock price and the second condition is time. There are 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $0.92, and 2,420,688 options at $0.49 that may be exercised if and when the share price reaches $1.41, and 2,420,688 options at $0.49 that may be exercised on or after December 31, 2013 if and when the share price reaches $1.90

Subsequent_Events

Subsequent Events	3 Months Ended
	Jul. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	7.  Contingencies:  In the ordinary course of business, the Company is at times subject to various legal proceedings and claims.  BHCMC, LLC and BHC Development LC ("BHCD") filed a lawsuit in the United States District Court on June 21, 2012 against Bally Gaming Inc. doing business as Bally Technologies for negligent misrepresentation, among other claims related to the performance of computer software systems. On March 7, 2014 a jury verdict in favor of BHCMC, LLC and BHC Development against Bally was entered for $1,424.  The jury rejected the Bally alleged counter claim of $441 and awarded no damages to Bally.  Bally has filed an appeal to the United States Court of Appeals for the Tenth Circuit. Butler National Corporation does not believe any such matters that are currently pending will have a material effect on its results of operation or financial position.
	Butler National Corporation, its management, or subsidiaries have no ownership interest in BHCI or BHCD.

Net_Income_Loss_Per_Share_Deta

Net Income (Loss) Per Share (Details)	3 Months Ended
	Jul. 31, 2014
Net Income (Loss) Per Share [Abstract]	'
Potential common shares excluded from earnings per share calculation (in shares)	66,281,237

Research_and_Development_Detai

Research and Development (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jul. 31, 2014	Jul. 31, 2013
Research and Development [Abstract]	'	'
Research and development	$405	$557

Borrowings_Details

Borrowings (Details) (USD $)	Jul. 31, 2014
	Note
Line of Credit [Member]	'
Debt Instrument [Line Items]	'
Number of lines of credit	3
Unused line	$2,500,000
Line of Credit Facility, Maximum Borrowing Capacity	4,000,000
Line of credit facility borrowing capacity	4,000,000
Line of Credit 1 [Member]	'
Debt Instrument [Line Items]	'
Number of lines of credit	1
Line of Credit Facility, Maximum Borrowing Capacity	1,000,000
Line of credit facility borrowing capacity	1,000,000
Line of Credit 2 [Member]	'
Debt Instrument [Line Items]	'
Number of lines of credit	1
Line of Credit Facility, Maximum Borrowing Capacity	2,500,000
Line of credit facility borrowing capacity	2,500,000
Line of Credit 3 [Member]	'
Debt Instrument [Line Items]	'
Number of lines of credit	1
Line of Credit Facility, Maximum Borrowing Capacity	500,000
Line of credit facility borrowing capacity	500,000
Notes Collateralized by Aircraft Security Agreements [Member]	'
Debt Instrument [Line Items]	'
Notes payable	1,117,000
Notes Payable to Bank [Member]	'
Debt Instrument [Line Items]	'
Notes payable	1,354,000
Number of notes	3
Notes for Real Estate [Member]	'
Debt Instrument [Line Items]	'
Notes payable	316,000
Number of notes	1
Notes Collateralized by Automobiles and Equipment [Member]	'
Debt Instrument [Line Items]	'
Notes payable	71,000
Note With Konami Gaming [Member]	'
Debt Instrument [Line Items]	'
Notes payable	75,000
Number of notes	1
Face value of note entered	1,733,000
BHCMC Lottery Gaming Machines [Member]	'
Debt Instrument [Line Items]	'
Notes payable	768,000
Number of notes	1
Second Obligation With BHCI [Member]	'
Debt Instrument [Line Items]	'
Notes payable	1,788,000
Number of notes	1
Face value of note entered	2,500,000
Second BHCI Obligation Payment	55,000
Obligation With BHCI [Member]	'
Debt Instrument [Line Items]	'
Notes payable	4,274,000
Number of notes	1
First Obligation With BHCI [Member]	'
Debt Instrument [Line Items]	'
Face value of note entered	7,423,000
First BHCI Obligation Payment	$177,000

Other_Assets_Details

Other Assets (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Jul. 31, 2014
Kansas Expanded Lottery Act Contract Privilege [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Other intangible assets	$5,500
Intangible Gaming Support Items [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Other intangible assets	2,252
JET Autopilot Intellectual Property [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Other intangible assets	$1,417
Useful life	'15 years

Stockholders_Equity_Details

Stockholders' Equity (Details)	Jul. 31, 2014	Apr. 30, 2014
Stockholders' Equity [Abstract]	'	'
Common stock, shares issued (in shares)	61,493,092	61,493,092

Stock_Options_Details

Stock Options (Details) (USD $)	1 Months Ended
	Dec. 31, 2010	Jul. 31, 2014
Stock Options [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Shares issued (in shares)	7,200,000	'
Expiration date	31-Dec-15	'
Stock exercise price (in dollars per share)	'	$1.42
Incentive stock options condition for vesting [Abstract]	'	'
Shares outstanding (in shares)	'	7,262,064
Incentive Stock Option [Member] | Year 1 Target [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock exercise price (in dollars per share)	'	$0.49
Incentive stock options condition for vesting [Abstract]	'	'
Number of options than can be exercised (in shares)	'	2,420,688
Target price of share (in dollars per share)	'	$0.92
Incentive Stock Option [Member] | Year 2 Target [Member]	'	'
Incentive stock options condition for vesting [Abstract]	'	'
Number of options than can be exercised (in shares)	'	2,420,688
Target price of share (in dollars per share)	'	$1.41
Incentive Stock Option [Member] | Year 3 Target [Member]	'	'
Incentive stock options condition for vesting [Abstract]	'	'
Number of options than can be exercised (in shares)	'	2,420,688
Target price of share (in dollars per share)	'	$1.90

Subsequent_Events_Details

Subsequent Events (Details) (USD $)	Mar. 07, 2014
In Thousands, unless otherwise specified
Subsequent Event [Line Items]	'
Damages Awarded to Plaintiff	$1,424
Damages Sought by Defendant	$441