Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Jul. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BUTLER NATIONAL CORP | |
Entity Central Index Key | 15,847 | |
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 | $ 8,046,508 | |
Entity Common Stock, Shares Outstanding | 64,066,873 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
CURRENT ASSETS: | ||
Cash | $ 7,381 | $ 6,195 |
Accounts receivable, net of allowance fo doubtful accounts | 1,574 | 944 |
Inventories | ||
Parts and raw materials | 6,339 | 5,277 |
Work in process | 1,349 | 1,364 |
Finished goods | 275 | 396 |
Total inventory, net of allowance | 7,963 | 7,037 |
Prepaid expenses and other current assets | 873 | 862 |
Total current assets | 17,791 | 15,038 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and building | 4,081 | 4,071 |
Aircraft | 5,712 | 7,493 |
Machinery and equipment | 3,630 | 3,612 |
Office furniture and fixtures | 5,637 | 5,396 |
Leasehold improvements | 4,032 | 4,081 |
Property, plant and equipment, gross | 23,092 | 24,653 |
Accumulated depreciation | (13,218) | (13,473) |
Total property, plant and equipment | 9,874 | 11,180 |
SUPPLEMENTAL TYPE CERTIFICATES (net of accumulated amortization of $2,975 at April 30, 2015 and $2,841 at April 30, 2014) | 6,481 | 5,863 |
OTHER ASSETS: | ||
Deferred tax asset | 1,104 | 1,197 |
Other assets (net of accumulated amortization of $4,050 at April 30, 2015 and $2,520 at April 30, 2014) | 7,447 | 8,320 |
Total other assets | 8,551 | 9,517 |
Total assets | 42,697 | 41,598 |
CURRENT LIABILITIES: | ||
Promissory notes | 3,988 | 1,510 |
Current maturities of long-term debt | 2,464 | 2,412 |
Accounts payable | 2,018 | 1,874 |
Customer deposits | 258 | 837 |
Gaming facility mandated payment | 1,206 | 1,299 |
Compensation and compensated absences | 1,322 | 1,294 |
Other current liabilities | 125 | 100 |
Total current liabilities | 11,381 | 9,326 |
LONG-TERM DEBT, NET OF CURRENT MATURITIES: | 5,218 | 6,870 |
Total liabilities | 16,599 | 16,196 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, par value $0.01: authorized 100,000,000 shares issued and outstanding 64,066,873 shares at April 30, 2016 and 62,860,098 shares at April 30, 2015 | 640 | 628 |
Capital contributed in excess of par | 13,716 | 13,487 |
Treasury stock at cost, 600,000 shares | (732) | (732) |
Retained earnings | 8,185 | 8,161 |
Total stockholders' equity Butler National Corporation | 21,809 | 21,544 |
Noncontrolling interest in BHCMC, LLC | 4,289 | 3,858 |
Total stockholders' equity | 26,098 | 25,402 |
Total liabilities and stockholders' equity | 42,697 | 41,598 |
Preferred Class A [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Preferred Class B [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
ASSETS | ||
SUPPLEMENTAL TYPE CERTIFICATES net of amortization | $ 3,549 | $ 2,975 |
OTHER ASSETS: | ||
Other assets, accumulated amortization | $ 5,579 | $ 4,050 |
STOCKHOLDERS' EQUITY: | ||
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) | 64,066,873 | 62,860,098 |
Common stock, shares outstanding (in shares) | 64,066,873 | 62,860,098 |
Treasury stock (in shares) | 600,000 | 600,000 |
Class A [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, dividend rate | 9.80% | 9.80% |
Preferred stock, liquidation preference value | 9.80% | 9.80% |
Preferred stock, redemption value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class B [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, stated value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, dividend rate | 6.00% | 6.00% |
Preferred stock, liquidation preference value | 6.00% | 6.00% |
Preferred stock, redemption value | $ 1,000 | $ 1,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A and B [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, designated classes (in shares) | 200,000 | 200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | ||
REVENUES: | |||
Professional services | $ 29,784 | $ 30,795 | |
Aerospace products | 15,010 | 16,267 | |
Total revenues | 44,794 | 47,062 | |
COSTS AND EXPENSES: | |||
Cost of professional services | 17,872 | 18,798 | |
Cost of aerospace products | 12,173 | 12,672 | |
Marketing and advertising | 4,562 | 4,323 | |
Employee benefits | 1,889 | 1,825 | |
Depreciation and amortization | 2,174 | 2,885 | |
General, administrative and other | 5,502 | 5,240 | |
Total costs and expenses | 44,172 | 45,743 | |
OPERATING INCOME | 622 | 1,319 | |
OTHER INCOME (EXPENSE): | |||
Interest expense | (471) | (1,141) | |
Other income (expense), net | 21 | 16 | |
Gain on settlement | 0 | 773 | |
Gain (Loss) on Disposition of Other Assets | 736 | 0 | |
Total other income (expense) | 286 | (352) | |
INCOME (LOSS) BEFORE INCOME TAXES | 908 | 967 | |
PROVISION FOR INCOME TAXES | |||
Deferred income tax | 93 | 138 | |
Provision (benefit) for Income taxes | 0 | 0 | |
NET INCOME | 815 | 829 | |
Net income attributable to noncontrolling interest in BHCMC, LLC | (791) | (802) | |
NET INCOME (LOSS) ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION | $ 24 | $ 27 | |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | [1] | $ 0 | $ 0 |
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) | 63,466,873 | 62,260,098 | |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | [1] | $ 0 | $ 0 |
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares) | 63,466,873 | 62,260,098 | |
[1] | Rounded to nearest hundredth |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Capital Contributed in Excess of Par [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total Stockholders' Equity Butler National Corporation [Member] | Noncontrolling Interest in BHCMC, LLC [Member] | Total |
BALANCE at Apr. 30, 2014 | $ 614 | $ 13,282 | $ (732) | $ 8,134 | $ 21,298 | $ 3,056 | $ 24,354 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of stock for services and other | 0 | ||||||
Issuance of stock benefit plan | 14 | 205 | 0 | 0 | 219 | 0 | 219 |
Net income | 0 | 0 | 0 | 27 | 27 | 802 | 829 |
BALANCE at Apr. 30, 2015 | 628 | 13,487 | (732) | 8,161 | 21,544 | 3,858 | 25,402 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of stock for services and other | 0 | ||||||
BHCMC distribution noncontrolling member | 0 | 0 | 0 | 0 | 0 | (360) | (360) |
Issuance of stock benefit plan | 12 | 229 | 0 | 0 | 241 | 0 | 241 |
Net income | 0 | 0 | 0 | 24 | 24 | 791 | 815 |
BALANCE at Apr. 30, 2016 | $ 640 | $ 13,716 | $ (732) | $ 8,185 | $ 21,809 | $ 4,289 | $ 26,098 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 815 | $ 829 |
Adjustments to reconcile cash flows from operating activities | ||
Depreciation and amortization | 3,761 | 4,032 |
Stock issued for benefit plan | 241 | 219 |
Gain on sale and disposal of assets | (736) | 0 |
Gain on settlement | 0 | (773) |
Deferred income tax expense | 93 | 138 |
Changes in operating assets and liabilities | ||
Accounts receivable | (630) | 1,385 |
Inventories | (926) | (701) |
Prepaid expenses and other assets | 274 | (325) |
Accounts payable | 144 | 499 |
Customer deposits | (579) | (145) |
Accrued liabilities | 28 | 172 |
Gaming facility mandated payment | (93) | 32 |
Other liabilities | 25 | 7 |
Net cash provided by operating activities | 2,417 | 5,369 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (2,757) | (5,065) |
Proceeds from settlement | 0 | 1,323 |
Proceeds from sale and disposal of assets | 1,008 | 0 |
Net cash used in investing activities | (1,749) | (3,742) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings promissory notes, net | 2,478 | (247) |
Borrowings of long-term debt | 941 | 7,587 |
Repayments of long-term debt | (2,541) | (9,033) |
Distribution to noncontrolling member | (360) | 0 |
Net cash provided by (used in ) financing activities | 518 | (1,693) |
NET INCREASE (DECREASE) IN CASH | 1,186 | (66) |
CASH, beginning of year | 6,195 | 6,261 |
CASH, end of year | 7,381 | 6,195 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 471 | 1,141 |
Income taxes paid | 0 | 0 |
NON CASH INVESTING AND FINANCING ACTIVITIES | ||
Non cash stock issued for services | 0 | 0 |
There were none | $ 241 | $ 219 |
NATURE OF OPERATIONS, ORGANIZAT
NATURE OF OPERATIONS, ORGANIZATION | 12 Months Ended |
Apr. 30, 2016 | |
NATURE OF OPERATIONS, ORGANIZATION [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS, ORGANIZATIONAND SIGNIFICANT ACCOUNTING POLICIES: The accompanying consolidated financial statements include the accounts of Butler National Corporation (BNC) and its wholly-owned active subsidiaries, Avcon Industries, Inc., AVT Corporation, BCS Design, Inc., Butler National Services, Inc. (sold on May 1, 2013), Butler National Service Corporation, Butler National Corporation-Tempe, Butler Avionics, Inc., Butler National, Inc., Butler Temporary Services, Inc., Kansas International Corporation, Kansas International DDC, LLC, Wild West Heritage Foundation, Inc., and a majority owned subsidiary, BHCMC, LLC (collectively, The Company). All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year end of the Company is April 30. Avcon Industries, Inc. modifies business category aircraft at its Newton, Kansas facility. Modifications can include passenger-to-freighter configuration, addition of aerial photography capability, and stability enhancing modifications. Butler Avionics sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). Butler National Inc. acquires airplanes, principally Learjets, to refurbish and sell. Butler National Corporation-Tempe is primarily engaged in the manufacture of airborne switching units used in Boeing McDonnell Douglas aircraft, electronic upgrades for classic weapon control systems used by the military and transient suppression devices for Boeing Classic aircraft. Butler National Service Corporation is a management consulting and administrative services firm providing business planning and financial coordination to Indian tribes interested in owning and operating casinos under the terms of the Indian Gaming Regulatory Act of 1988. BHCMC, LLC is majority-owned and provides management services for the Boot Hill Casino under a management agreement with the State of Kansas. BCS Design provides professional architectural services. SIGNIFICANT ACCOUNTING POLICIES: a) Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts are calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe we maintain adequate reserves. At April 30, 2016 and 2015, the allowance for doubtful accounts was $81 and $81 respectively. b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets. c) Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or market. Inventories include material, labor and factory overhead required in the production of our products. Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence we consider inventory that has been inactive for three years or longer and the probability of using that inventory in future production. The obsolete inventory generally consists of Falcon and Learjet parts and electrical components. At April 30, 2016 and 2015, the estimate of obsolete inventory was $1,161 and $1,126 respectively. d) Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. The lives used for the significant items within each property classification range from 3 to 39 years. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired are removed from the accounts and any resulting gains or losses are reflected as income or expense. During fiscal 2016 the Company sold one aircraft. Proceeds from the sale totaled $959. The company realized a gain of $732 on the sale. e) Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, formerly SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value. f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $4,576 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $1,533. 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 fifteen years. Other assets net values are as follows: (dollars in thousands) 2016 2015 Privilege fee $ 5,500 $ 5,500 Less amortized costs 1,833 1,410 Privilege fee balance $ 3,667 $ 4,090 Intangible gaming equipment $ 4,576 $ 3,635 Less amortized costs 2,974 1,961 Intangible gaming equipment balance $ 1,602 1,674 JET autopilot intellectual property $ 1,417 $ 1,417 Less amortized costs 772 679 JET autopilot balance $ 645 $ 738 g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenues being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Consultant costs, as shown below, include costs of engineering, legal and aircraft specialists. STC capitalized costs are as follows: (dollars in thousands) 2016 2015 Direct labor $ 2,044 $ 1,709 Direct materials 2,638 2,336 Consultant costs 1,922 1,922 Overhead 3,426 2,871 10,030 8,838 Less-amortized costs 3,549 2,975 STC balance $ 6,481 $ 5,863 h) Revenue Recognition: Generally, we perform aircraft modifications under fixed-price contracts. Revenue from fixed-price contracts are recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor and material costs. Each quarter our management reviews the progress and performance of our significant contracts. Based on this analysis, any adjustment to sales, cost of sales and/or profit is recognized as necessary in the period they are earned. Changes in estimates of contract sales, cost of sales and profits are recognized using a cumulative catch-up, which is recognized in the current period of the cumulative effect of the change on current or prior periods. Revenue for off-the-shelf items and aircraft sales is recognized on the date of sale. Revenue from product sales is recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered and invoiced. Payments for these service invoices are usually received within 30 days. In regard to warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion any future warranty work would not be material to the financial statements. Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the amount of jackpots increase. Food, beverage, and other revenue is recorded when the service is received and paid for. i) Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot. j) Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as current liabilities. k) Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year. The computation of the Company basic and diluted earnings per common share is as follows: (in thousands, except per share data) 2016 2015 Net income attributable to Butler National Corporation $ 24 $ 27 Weighted average common shares outstanding 63,466,873 62,260,098 Dilutive effect of non-qualified stock option plans - - Weighted average common shares outstanding, assuming dilution 63,466,873 62,260,098 Potential common shares if all options were exercised and shares issued 63,466,873 69,522,162 Basic earnings per common share $ 0.00 $ 0.00 Diluted earnings per common share $ 0.00 $ 0.00 l) Stock-based Compensation: The Company accounts for stock-based compensation under ASC Topic 505-50, formerly SFAS No. 123R, " Share-Based Payment Accounting for Stock-Based Compensation - Transition and Disclosure - An amendment to SFAS No. 123 m) Income Taxes: Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize. n) Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2016 and 2015, we had $3,546 and $2,250, respectively in bank deposits that exceeded the federally insured limits. o) Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. p) Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2016 and 2015 was $1,838 and $2,048 respectively. q) Recent Accounting Pronouncements: We do not believe there are any recently issued accounting standards that have not yet been adopted that will have a material impact on the Company's financial statements, except for the following: In November 2015, the FASB issued (ASU) 2015-17, "Balance Sheet Classification of Deferred Taxes." Currently deferred taxes for each tax jurisdiction are presented as a net current asset or liability and net noncurrent asset or liability on the balance sheet. To simplify the presentation, the new guidance requires that deferred tax liabilities and assets for all jurisdictions along with any related valuation allowances be classified as noncurrent in a classified statement of financial position. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. r) Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations. |
DEBT
DEBT | 12 Months Ended |
Apr. 30, 2016 | |
DEBT [Abstract] | |
DEBT | 2. DEBT: Principal amounts of debt at April 30, 2016 and 2015, consist of the following (in thousands): Promissory Notes 2016 2015 Bank line of credit, available LOC $1.0 million interest at prime plus 2% (7.0% at April 30, 2015 - with a floor of 7%), paid off and closed in September 2015. $ - $ 700 Bank line of credit, available LOC $2.5 million interest at 6%, paid off and closed in September 2015. - 656 Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by a first and second position on all assets of the Company. 3,988 154 $ 3,988 $ 1,510 Long-Term Debt Note payable, interest at 6% paid off in February 2016. $ - $ 314 Note payable, interest at 6% due April 2017 collateralized by Aircraft Security Agreements. 81 159 Note payable, interest at 6.25% due September 2017 collateralized by Aircraft Security Agreements. 150 249 Note payable, interest at 5.75% due January 2020 collateralized by Aircraft Security Agreements. 547 674 Note payable, interest at bank prime (3.36 % at April 30, 2016) due August 2019, collateralized by real estate. 192 253 Note payable, interest at bank prime (3.36% at April 30, 2016) due March 2019, collateralized by real estate. 198 261 Note payable, interest at bank prime (2.68% at April 30, 2016) due March 2019, collateralized by real estate. 468 628 Note payable, interest at 6.25%, due June 2019, collateralized by real estate. 291 306 Note payable, interest at 4.89% due May 2020, collateralized by all of BNSC's assets and compensation due under the State Management contract. 4,602 5,500 Obligations of BHCMC, LLC due December 2016 and March 2018 with interest rates at 3.5%. 1,150 895 Other notes payable, due June 2016 with interest at 5.8%. 3 43 7,682 9,282 Less: Current maturities 2,464 2,412 $ 5,218 $ 6,870 Maturities of long-term debt are as follows: Year Ending April 30 Amount 2017 $ 2,464 2018 1,952 2019 1,594 2020 1,569 2021 103 Thereafter - $ 7,682 Financial and Other Covenants We are in compliance with our covenants at April 30, 2016. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Apr. 30, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 3. INCOME TAXES: Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of April 30, 2016 and 2015 are as follows (in thousands): April 30, 2016 April 30, 2015 Deferred tax liabilities: Depreciation $ - $ (178) Deferred tax assets: Depreciation 80 - Accounts receivable allowance 31 28 Inventory and other allowances 859 1,154 Vacation accruals 93 117 NOL carryforward 41 76 Total gross deferred tax assets 1,104 1,375 Less valuation allowance - - Net deferred tax assets $ 1,104 $ 1,197 The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows: April 30, 2016 April 30, 2015 Statutory federal income tax rate (benefit) expense, net of noncontrolling interest 34.00% 34.00% State income tax net of federal benefits 0.00% 0.00% Permanent tax 30.70% 59.15% Other 14.75% (9.71)% 79.45% 83.44% Income tax expense: Deferred income tax $ 93 $ 138 Current income tax - - Total income tax expense $ 93 $ 138 Current income tax expense (benefit) of $0 and $0 are comprised of $0 and $0 in federal income tax and $0 and $0 in state income tax for the years ended April 30, 2016 and 2015, respectively. The Company has accrued (refundable) income taxes due to federal and state taxing authorities of $0 and $0 for the years ended April 30, 2016 and 2015, respectively. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its financial condition, results of operations or cashflow. Therefore, no reserve for uncertain income tax position, interest or penalties, have been recorded. The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. Federal tax examinations for tax years beginning on May 1, 2011 and prior. There are no current tax examinations. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Apr. 30, 2016 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | 4. STOCKHOLDERS' EQUITY: Common Stock Transactions During the year ended April 30, 2016, we issued 1,206,775 shares valued at $241 as the match to the Company 401(k) plan. During the year ended April 30, 2015, we issued 1,367,006 shares valued at $219 as the match to the Company 401(k) plan. |
STOCK OPTIONS AND INCENTIVE PLA
STOCK OPTIONS AND INCENTIVE PLANS | 12 Months Ended |
Apr. 30, 2016 | |
STOCK OPTIONS AND INCENTIVE PLANS [Abstract] | |
STOCK OPTIONS AND INCENTIVE PLANS | 5. STOCK OPTIONS AND INCENTIVE PLANS At April 30, 2016 we had no outstanding stock options. There were 7,262,064 outstanding stock options that were issued on December 31, 2010, all of which expired on December 31, 2015. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Apr. 30, 2016 | |
COMMITMENTS [Abstract] | |
COMMITMENTS | 6. COMMITMENTS AND CONTINGENCIES Lease and Rent Commitments (in thousands). We lease and rent space with initial terms of (3) years, (5) years, ten (10) years, and twenty five (25) years. Total rental expense incurred for the years ended April 30, 2016 and 2015 was $5,117 and $5,030 respectively. Minimum lease and rent agreement commitments under noncancellable operating leases and rental agreements for the next five (5) years are as follows: Year Ending April 30 Amount 2017 $ 5,027 2018 5,016 2019 4,929 2020 4,946 2021 4,995 $ 24,913 Litigation: From time to time we may be a defendant and/or plaintiff in various other legal proceedings arising in the normal course of our business. We are currently not a party to any material legal proceedings or government actions, including any bankruptcy, receivership, or similar proceedings. In addition, we are not aware of any known litigation or liabilities involving the operators of our properties that could affect our operations. Furthermore, as of the date, our management is not aware of any proceedings to which any of our directors, officers, or affiliates, or any associate of any such director, officer, affiliate, or security holder is a party averse to our company or has a material interest averse to us. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Apr. 30, 2016 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | 7. Gain on Settlement: BHCMC and BHC Development filed a complaint against Bally Gaming in the United States District Court for the District of Kansas in June 2012. After hearing the evidence, in March 2014 the jury rendered a verdict in favor of BHCMC and BHC Development in the amount of $1,424. Bally appealed the verdict. In February of 2015, BHCMC and BHC Development agreed to accept the sum of $1,324 in satisfaction of the judgment. This amount was received in February 2015. BHCMC and BHC Development agreed to return to Bally its system-related equipment which had a book value of $551, resulting in a gain on settlement of $773. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Apr. 30, 2016 | |
RELATED-PARTY TRANSACTIONS [Abstract] | |
RELATED-PARTY TRANSACTIONS | 8. RELATED-PARTY TRANSACTIONS: In the normal course of business we purchased business system components of $3 and $4 from ISG, the employer of Bradley Hoffman, a director of Butler National Corporation during fiscal 2016 and 2015 respectively. We paid consulting fees of $135 and $135 to David Hayden, a director of Butler National Corporation in fiscal year ended April 30, 2016 and 2015 respectively. Included in accrued liabilities are $301 and $209 as of April 30, 2016 and 2015 respectively for amounts owed to our CEO for accrued compensation. Included in other assets at April 30, 2016 and 2015 is $780 owed to us by the noncontrolling company of BHCMC, LLC for costs incurred on their behalf. In fiscal 2016, there were three related-person transactions under the relevant standards: Butler National employed the brother (Wayne Stewart), son (Craig Stewart) and son-in-law (Jeff Shinkle) of Clark D. Stewart, an executive officer, as an engineer, Vice President and Chief Financial Officer, and an architect. Compensation for these related-persons was calculated in the same manner as the Summary Compensation table resulting in compensation of $225, $292 and $188, respectively, for fiscal 2016 and $219, $286, and $179, respectively, for fiscal 2015. The policies and procedures for payment of goods and services for related transactions follow our normal course of business standards and require the necessary review and approval process as outlined in our Policies and Procedures manual and as set forth by our Compensation Committee. |
401(k) SAVINGS PLAN
401(k) SAVINGS PLAN | 12 Months Ended |
Apr. 30, 2016 | |
401(k) SAVINGS PLAN [Abstract] | |
401(k) SAVINGS PLAN | 9. 401(k) SAVINGS PLAN We have a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees with at least thirty days of service are eligible to participate in the plan; however there are only two entry dates per calendar year. The Plan may match subject to the annual approval of the Board of Directors, 100 percent of every pre-tax dollar an employee contributes up to 6% of the employee's salary. Employees are 100 percent vested in the employer's contributions immediately. Our matching contribution, as approved by the Board of Directors was paid in common stock of the Company. The contribution amount was valued at the market price of the stock contributed in 2016 and 2015 was approximately $241 and $219 respectively. |
INDUSTRY SEGMENTATION AND SALES
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER | 12 Months Ended |
Apr. 30, 2016 | |
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER [Abstract] | |
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER | 10. INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER: Industry Segmentation Current Activities - Aerospace Products: Aircraft Modifications principally includes the modification of customer and company owned business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. We provide these services through our subsidiary, Avcon Industries, Inc. ("Aircraft Modifications" or "Avcon"). Avionics principally includes the manufacture, sale, and service of airborne electronic switching units used in DC-9, DC-10, DC-9/80, MD-80, MD-90, and the KC-10 aircraft, Transient Suppression Devices (TSDs) for fuel tank protection on Boeing Classic 737 and 747 aircraft, and other Classic aircraft using a capacitance fuel quantity indicating system ("FQIS"), airborne electronics upgrades for classic weapon control systems used on military aircraft and vehicles, and consulting services with airlines and equipment manufacturers regarding fuel system safety requirements. We provide the products through our subsidiary, Butler National Corporation - Tempe, Arizona and the services through Butler National Corporation - Olathe, Kansas ("Avionics", "Classic Aviation Products", "Safety Products", or "Switching Units"). Butler Avionics sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). These systems are flight display systems which include intuitive touchscreen controls with large display to give users unprecedented access to high-resolution terrain mapping, graphical flight planning, geo-referenced charting, traffic display, satellite weather and much more. Butler Avionics is also recognized nationwide for its troubleshooting and repair work particularly on autopilot systems. Professional Services: BCS Design, Inc. provides licensed architectural services. These services include commercial and industrial building design. Butler National Service Corporation ("BNSC") provides management services to the Boot Hill Casino, a "state-owned casino" and to The Stables, an "Indian-owned casino". Year ended April 30, 2016 Professional Services Aerospace Products Consolidated Total revenues $ 29,784 $ 15,010 $ 44,794 Depreciation and amortization 1,390 784 2,174 Operating income (loss) 1,597 (975) 622 Capital expenditures, net 242 1,574 1,816 Interest expense - - (471) Other income (expense) - - 21 Income before taxes - - 908 Income tax expense - - 93 Net income attributable to Butler National Corporation - - 24 Identifiable assets, net 22,462 20,235 42,697 Year ended April 30, 2015 Professional Services Aerospace Products Consolidated Total revenues $ 30,795 $ 16,267 $ 47,062 Depreciation and amortization 1,573 1,312 2,885 Operating income (loss) 1,794 (475) 1,319 Capital expenditures, net 420 3,262 3,682 Interest expense - - (1,141) Other income (expense) - - 16 Income before taxes - - 967 Income tax expense - - 138 Net income attributable to Butler National Corporation - - 27 Identifiable assets, net 21,650 19,948 41,598 Major Customers: 2016 2015 Aerospace Products N/A * N/A * Professional Services N/A * N/A * *Revenue represented less than 10% of consolidated revenue. In fiscal 2016 the Company derived 14.5% of total sales from five customers. The top customer provided 6.0% of total sales while the next top four customers ranged from 1.9% to 2.7%. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Apr. 30, 2016 | |
FAIR VALUE MEASURMENTS [Abstract] | |
FAIR VALUE MEASURMENTS | 11. FAIR VALUE MEASUREMENTS The Company adopted ASC Topic 820-10 at the beginning of 2009 to measure the fair value of certain of its financial assets required to be measured on a recurring basis. The adoption of ASC Topic 820-10 did not impact the Company's financial condition or results of operations. ASC Topic 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. The three levels of the fair value hierarchy under ASC Topic 820-10 are described below: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. Level 2 - Valuations based on quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 - Valuations based on inputs that are supportable by little or no market activity and that are significant to the fair value of the asset or liability. The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis as of April 30, 2016 (in thousands): Level 1 Level 2 Level 3 Fair Value Promissory notes $ - $ - $ 3,988 $ 3,988 Long-term debt - - 7,682 7,682 $ - $ - $ 11,670 $ 11,670 The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis as of April 30, 2015 (in thousands): Level 1 Level 2 Level 3 Fair Value Promissory notes $ - $ - $ 1,510 $ 1,510 Long-term debt - - 9,282 9,282 $ - $ - $ 10,792 $ 10,792 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Apr. 30, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS The Company evaluated its April 30, 2016 consolidated financial statements for subsequent events through July 27, 2016, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the consolidated financial statements. |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Apr. 30, 2016 | |
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 13. SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth selected unaudited financial information for each quarter of fiscal 2016 and 2015 (in thousands, except per share amounts). 2016 First Second Third Fourth Total Revenues $ 11,696 $ 10,106 $ 11,067 $ 11,925 $ 44,794 Operating income (loss) 361 (599) 442 418 622 Non-operating income (expense) (119) (108) (104) 617 286 Net income (loss) attributable to Butler National Corporation 19 (478) 102 381 24 Basic earnings (loss) per share* 0.00 (0.01) 0.00 0.01 0.00 Diluted earnings (loss) per share* 0.00 (0.01) 0.00 0.01 0.00 *Rounded to nearest hundredth 2015 First Second Third Fourth Total Revenues $ 12,391 $ 11,752 $ 11,083 $ 11,836 $ 47,062 Operating income (loss) 806 367 535 (389) 1,319 Non-operating income (expense) (286) (300) (246) 480 (352) Net income (loss) attributable to Butler National Corporation 252 29 68 (322) 27 Basic earnings (loss) per share* 0.00 0.00 0.00 (0.01) 0.00 Diluted earnings (loss) per share* 0.00 0.00 0.00 (0.01) 0.00 *Rounded to nearest hundredth The individual quarter and fiscal year earnings per share are presented as shown in our quarterly and annual filings with the Securities and Exchange Commission. These numbers are rounded up to the nearest tenth. |
NATURE OF OPERATIONS, ORGANIZ20
NATURE OF OPERATIONS, ORGANIZATION (Policies) | 12 Months Ended |
Apr. 30, 2016 | |
NATURE OF OPERATIONS, ORGANIZATION [Abstract] | |
Accounts receivable | SIGNIFICANT ACCOUNTING POLICIES: a) Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts are calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe we maintain adequate reserves. At April 30, 2016 and 2015, the allowance for doubtful accounts was $81 and $81 respectively. |
Use of Estimates | b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets. |
Inventories | c) Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or market. Inventories include material, labor and factory overhead required in the production of our products. Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence we consider inventory that has been inactive for three years or longer and the probability of using that inventory in future production. The obsolete inventory generally consists of Falcon and Learjet parts and electrical components. At April 30, 2016 and 2015, the estimate of obsolete inventory was $1,161 and $1,126 respectively. |
Property and Related Depreciation | d) Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. The lives used for the significant items within each property classification range from 3 to 39 years. Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired are removed from the accounts and any resulting gains or losses are reflected as income or expense. During fiscal 2016 the Company sold one aircraft. Proceeds from the sale totaled $959. The company realized a gain of $732 on the sale. |
Long-Lived Assets | e) Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, formerly SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value. |
Other Assets | f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $4,576 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $1,533. 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 fifteen years. Other assets net values are as follows: (dollars in thousands) 2016 2015 Privilege fee $ 5,500 $ 5,500 Less amortized costs 1,833 1,410 Privilege fee balance $ 3,667 $ 4,090 Intangible gaming equipment $ 4,576 $ 3,635 Less amortized costs 2,974 1,961 Intangible gaming equipment balance $ 1,602 1,674 JET autopilot intellectual property $ 1,417 $ 1,417 Less amortized costs 772 679 JET autopilot balance $ 645 $ 738 |
Supplemental Type Certificates | g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenues being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Consultant costs, as shown below, include costs of engineering, legal and aircraft specialists. STC capitalized costs are as follows: (dollars in thousands) 2016 2015 Direct labor $ 2,044 $ 1,709 Direct materials 2,638 2,336 Consultant costs 1,922 1,922 Overhead 3,426 2,871 10,030 8,838 Less-amortized costs 3,549 2,975 STC balance $ 6,481 $ 5,863 |
Revenue Recognition | h) Revenue Recognition: Generally, we perform aircraft modifications under fixed-price contracts. Revenue from fixed-price contracts are recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor and material costs. Each quarter our management reviews the progress and performance of our significant contracts. Based on this analysis, any adjustment to sales, cost of sales and/or profit is recognized as necessary in the period they are earned. Changes in estimates of contract sales, cost of sales and profits are recognized using a cumulative catch-up, which is recognized in the current period of the cumulative effect of the change on current or prior periods. Revenue for off-the-shelf items and aircraft sales is recognized on the date of sale. Revenue from product sales is recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered and invoiced. Payments for these service invoices are usually received within 30 days. In regard to warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion any future warranty work would not be material to the financial statements. Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the amount of jackpots increase. Food, beverage, and other revenue is recorded when the service is received and paid for. |
Slot Machine Jackpots | i) Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot. |
Advanced Payments and Billings in Excess of Costs Incurred | j) Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as current liabilities. |
Earnings Per Share | k) Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year. |
Stock-based Compensation | l) Stock-based Compensation: The Company accounts for stock-based compensation under ASC Topic 505-50, formerly SFAS No. 123R, " Share-Based Payment Accounting for Stock-Based Compensation - Transition and Disclosure - An amendment to SFAS No. 123 |
Income Taxes | m) Income Taxes: Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize. |
Cash and Cash Equivalents | n) Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2016 and 2015, we had $3,546 and $2,250, respectively in bank deposits that exceeded the federally insured limits. |
Concentration of Credit Risk | o) Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. |
Research and Development | p) Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2016 and 2015 was $1,838 and $2,048 respectively. |
Recent Accounting Pronouncements | q) Recent Accounting Pronouncements: We do not believe there are any recently issued accounting standards that have not yet been adopted that will have a material impact on the Company's financial statements, except for the following: In November 2015, the FASB issued (ASU) 2015-17, "Balance Sheet Classification of Deferred Taxes." Currently deferred taxes for each tax jurisdiction are presented as a net current asset or liability and net noncurrent asset or liability on the balance sheet. To simplify the presentation, the new guidance requires that deferred tax liabilities and assets for all jurisdictions along with any related valuation allowances be classified as noncurrent in a classified statement of financial position. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. |
Reclassifications | r) Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations. |
NATURE OF OPERATIONS, ORGANIZ21
NATURE OF OPERATIONS, ORGANIZATION (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
NATURE OF OPERATIONS, ORGANIZATION [Abstract] | |
Schedule of Other Assets | f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $4,576 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $1,533. 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 fifteen years. Other assets net values are as follows: (dollars in thousands) 2016 2015 Privilege fee $ 5,500 $ 5,500 Less amortized costs 1,833 1,410 Privilege fee balance $ 3,667 $ 4,090 Intangible gaming equipment $ 4,576 $ 3,635 Less amortized costs 2,974 1,961 Intangible gaming equipment balance $ 1,602 1,674 JET autopilot intellectual property $ 1,417 $ 1,417 Less amortized costs 772 679 JET autopilot balance $ 645 $ 738 |
Supplemental Type Certificates capitalized costs | g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenues being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Consultant costs, as shown below, include costs of engineering, legal and aircraft specialists. STC capitalized costs are as follows: (dollars in thousands) 2016 2015 Direct labor $ 2,044 $ 1,709 Direct materials 2,638 2,336 Consultant costs 1,922 1,922 Overhead 3,426 2,871 10,030 8,838 Less-amortized costs 3,549 2,975 STC balance $ 6,481 $ 5,863 |
Computation of basic and diluted earnings per common share | The computation of the Company basic and diluted earnings per common share is as follows: (in thousands, except per share data) 2016 2015 Net income attributable to Butler National Corporation $ 24 $ 27 Weighted average common shares outstanding 63,466,873 62,260,098 Dilutive effect of non-qualified stock option plans - - Weighted average common shares outstanding, assuming dilution 63,466,873 62,260,098 Potential common shares if all options were exercised and shares issued 63,466,873 69,522,162 Basic earnings per common share $ 0.00 $ 0.00 Diluted earnings per common share $ 0.00 $ 0.00 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
DEBT [Abstract] | |
Schedule of debt | Principal amounts of debt at April 30, 2016 and 2015, consist of the following (in thousands): Promissory Notes 2016 2015 Bank line of credit, available LOC $1.0 million interest at prime plus 2% (7.0% at April 30, 2015 - with a floor of 7%), paid off and closed in September 2015. $ - $ 700 Bank line of credit, available LOC $2.5 million interest at 6%, paid off and closed in September 2015. - 656 Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by a first and second position on all assets of the Company. 3,988 154 $ 3,988 $ 1,510 Long-Term Debt Note payable, interest at 6% paid off in February 2016. $ - $ 314 Note payable, interest at 6% due April 2017 collateralized by Aircraft Security Agreements. 81 159 Note payable, interest at 6.25% due September 2017 collateralized by Aircraft Security Agreements. 150 249 Note payable, interest at 5.75% due January 2020 collateralized by Aircraft Security Agreements. 547 674 Note payable, interest at bank prime (3.36 % at April 30, 2016) due August 2019, collateralized by real estate. 192 253 Note payable, interest at bank prime (3.36% at April 30, 2016) due March 2019, collateralized by real estate. 198 261 Note payable, interest at bank prime (2.68% at April 30, 2016) due March 2019, collateralized by real estate. 468 628 Note payable, interest at 6.25%, due June 2019, collateralized by real estate. 291 306 Note payable, interest at 4.89% due May 2020, collateralized by all of BNSC's assets and compensation due under the State Management contract. 4,602 5,500 Obligations of BHCMC, LLC due December 2016 and March 2018 with interest rates at 3.5%. 1,150 895 Other notes payable, due June 2016 with interest at 5.8%. 3 43 7,682 9,282 Less: Current maturities 2,464 2,412 $ 5,218 $ 6,870 |
Maturities of long-term debt and capital lease obligations | Maturities of long-term debt are as follows: Year Ending April 30 Amount 2017 $ 2,464 2018 1,952 2019 1,594 2020 1,569 2021 103 Thereafter - $ 7,682 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
INCOME TAXES [Abstract] | |
Components of deferred tax liabilities and assets | Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of April 30, 2016 and 2015 are as follows (in thousands): April 30, 2016 April 30, 2015 Deferred tax liabilities: Depreciation $ - $ (178) Deferred tax assets: Depreciation 80 - Accounts receivable allowance 31 28 Inventory and other allowances 859 1,154 Vacation accruals 93 117 NOL carryforward 41 76 Total gross deferred tax assets 1,104 1,375 Less valuation allowance - - Net deferred tax assets $ 1,104 $ 1,197 |
Reconciliation of the federal statutory income tax rate to the effective tax rate | The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows: April 30, 2016 April 30, 2015 Statutory federal income tax rate (benefit) expense, net of noncontrolling interest 34.00% 34.00% State income tax net of federal benefits 0.00% 0.00% Permanent tax 30.70% 59.15% Other 14.75% (9.71)% 79.45% 83.44% |
Income tax expense | Income tax expense: Deferred income tax $ 93 $ 138 Current income tax - - Total income tax expense $ 93 $ 138 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
COMMITMENTS [Abstract] | |
Minimum lease and rent agreement commitments | Minimum lease and rent agreement commitments under noncancellable operating leases and rental agreements for the next five (5) years are as follows: Year Ending April 30 Amount 2017 $ 5,027 2018 5,016 2019 4,929 2020 4,946 2021 4,995 $ 24,913 Litigation: From time to time we may be a defendant and/or plaintiff in various other legal proceedings arising in the normal course of our business. We are currently not a party to any material legal proceedings or government actions, including any bankruptcy, receivership, or similar proceedings. In addition, we are not aware of any known litigation or liabilities involving the operators of our properties that could affect our operations. Furthermore, as of the date, our management is not aware of any proceedings to which any of our directors, officers, or affiliates, or any associate of any such director, officer, affiliate, or security holder is a party averse to our company or has a material interest averse to us. |
INDUSTRY SEGMENTATION AND SAL25
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER [Abstract] | |
Schedule of segment information by products and services | Year ended April 30, 2016 Professional Services Aerospace Products Consolidated Total revenues $ 29,784 $ 15,010 $ 44,794 Depreciation and amortization 1,390 784 2,174 Operating income (loss) 1,597 (975) 622 Capital expenditures, net 242 1,574 1,816 Interest expense - - (471) Other income (expense) - - 21 Income before taxes - - 908 Income tax expense - - 93 Net income attributable to Butler National Corporation - - 24 Identifiable assets, net 22,462 20,235 42,697 Year ended April 30, 2015 Professional Services Aerospace Products Consolidated Total revenues $ 30,795 $ 16,267 $ 47,062 Depreciation and amortization 1,573 1,312 2,885 Operating income (loss) 1,794 (475) 1,319 Capital expenditures, net 420 3,262 3,682 Interest expense - - (1,141) Other income (expense) - - 16 Income before taxes - - 967 Income tax expense - - 138 Net income attributable to Butler National Corporation - - 27 Identifiable assets, net 21,650 19,948 41,598 |
Schedule of revenue by major customers by reporting segments | Major Customers: 2016 2015 Aerospace Products N/A * N/A * Professional Services N/A * N/A * *Revenue represented less than 10% of consolidated revenue. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
FAIR VALUE MEASURMENTS [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis as of April 30, 2016 (in thousands): Level 1 Level 2 Level 3 Fair Value Promissory notes $ - $ - $ 3,988 $ 3,988 Long-term debt - - 7,682 7,682 $ - $ - $ 11,670 $ 11,670 The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis as of April 30, 2015 (in thousands): Level 1 Level 2 Level 3 Fair Value Promissory notes $ - $ - $ 1,510 $ 1,510 Long-term debt - - 9,282 9,282 $ - $ - $ 10,792 $ 10,792 |
SUMMARY OF QUARTERLY FINANCIA27
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
Selected unaudited financial information | The following table sets forth selected unaudited financial information for each quarter of fiscal 2016 and 2015 (in thousands, except per share amounts). 2016 First Second Third Fourth Total Revenues $ 11,696 $ 10,106 $ 11,067 $ 11,925 $ 44,794 Operating income (loss) 361 (599) 442 418 622 Non-operating income (expense) (119) (108) (104) 617 286 Net income (loss) attributable to Butler National Corporation 19 (478) 102 381 24 Basic earnings (loss) per share* 0.00 (0.01) 0.00 0.01 0.00 Diluted earnings (loss) per share* 0.00 (0.01) 0.00 0.01 0.00 *Rounded to nearest hundredth 2015 First Second Third Fourth Total Revenues $ 12,391 $ 11,752 $ 11,083 $ 11,836 $ 47,062 Operating income (loss) 806 367 535 (389) 1,319 Non-operating income (expense) (286) (300) (246) 480 (352) Net income (loss) attributable to Butler National Corporation 252 29 68 (322) 27 Basic earnings (loss) per share* 0.00 0.00 0.00 (0.01) 0.00 Diluted earnings (loss) per share* 0.00 0.00 0.00 (0.01) 0.00 *Rounded to nearest hundredth |
NATURE OF OPERATIONS, ORGANIZ28
NATURE OF OPERATIONS, ORGANIZATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | ||
Accounts receivable [Abstract] | |||||||||||
Duration after which invoices are considered to be doubtful | 90 days | ||||||||||
Allowance for doubtful accounts | $ 81 | $ 81 | $ 81 | $ 81 | |||||||
Inventories [Abstract] | |||||||||||
Duration during which inventory if inactive taken as obsolete | 3 years | ||||||||||
Obsolete inventory | 1,161 | 1,126 | $ 1,161 | 1,126 | |||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Proceeds from sale of aircraft | 959 | ||||||||||
Gain on sale of aircraft | 732 | ||||||||||
Supplemental Type Certificates [Abstract] | |||||||||||
Direct labor | 2,044 | 1,709 | 2,044 | 1,709 | |||||||
Direct materials | 2,638 | 2,336 | 2,638 | 2,336 | |||||||
Consultant costs | 1,922 | 1,922 | 1,922 | 1,922 | |||||||
Overhead | 3,426 | 2,871 | 3,426 | 2,871 | |||||||
Supplemental Type Certificates capitalized, gross | 10,030 | 8,838 | 10,030 | 8,838 | |||||||
Less-amortized costs | 3,549 | 2,975 | 3,549 | 2,975 | |||||||
STC balance | 6,481 | 5,863 | $ 6,481 | 5,863 | |||||||
Revenue Recognition [Abstract] | |||||||||||
Period for payment due | 30 days | ||||||||||
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to Butler National Corporation | $ 381 | $ 102 | $ (478) | $ 19 | $ (322) | $ 68 | $ 29 | $ 252 | $ 24 | $ 27 | |
Weighted average common shares outstanding (in shares) | 63,466,873 | 62,260,098 | |||||||||
Dilutive effect of non-qualified stock option plans (in shares) | 0 | 0 | |||||||||
Weighted average common shares outstanding, assuming dilution (in shares) | 63,466,873 | 62,260,098 | |||||||||
Potential common shares if all options were exercised and shares issued (in shares) | 63,466,873 | 69,522,162 | |||||||||
Basic earnings per common share (in dollars per share) | [1] | $ 0.01 | $ 0 | $ (0.01) | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted earnings per common share (in dollars per share) | [1] | $ 0.01 | $ 0 | $ (0.01) | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash and Cash Equivalents [Abstract] | |||||||||||
Bank deposits that exceeded the federally insured limits | $ 3,546 | $ 2,250 | $ 3,546 | $ 2,250 | |||||||
Research and Development [Abstract] | |||||||||||
Research and development expense | $ 1,838 | 2,048 | |||||||||
Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful lives of property | 3 years | ||||||||||
Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Useful lives of property | 39 years | ||||||||||
Kansas Expanded Lottery Act Management Contract Privilege Fee [Member] | |||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||
Other assets intangible | 5,500 | 5,500 | $ 5,500 | 5,500 | |||||||
Less amortized costs intangible | 1,833 | 1,410 | 1,833 | 1,410 | |||||||
Other assets net intangible, net | 3,667 | 4,090 | $ 3,667 | 4,090 | |||||||
Gaming Equipment [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Intangible asset, useful life | 3 years | ||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||
Other assets intangible | 4,576 | 3,635 | $ 4,576 | 3,635 | |||||||
Less amortized costs intangible | 2,974 | 1,961 | 2,974 | 1,961 | |||||||
Other assets net intangible, net | 1,602 | 1,674 | $ 1,602 | 1,674 | |||||||
JET Autopilot Intellectual Property [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Intangible asset, useful life | 15 years | ||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||
Other assets intangible | 1,417 | 1,417 | $ 1,417 | 1,417 | |||||||
Less amortized costs intangible | 772 | 679 | 772 | 679 | |||||||
Other assets net intangible, net | 645 | $ 738 | 645 | $ 738 | |||||||
Other Miscellaneous Long-Term Assets [Member] | |||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||
Other assets intangible | $ 1,533 | $ 1,533 | |||||||||
[1] | Rounded to nearest hundredth |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Promissory Notes [Abstract] | ||
Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by first and second postions on all assets of the Company. | $ 3,988 | $ 1,510 |
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | 7,682 | 9,282 |
Less: Current maturities | 2,464 | 2,412 |
Long-Term Debt and Capital Lease Obligations, Noncurrent | 5,218 | 6,870 |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
2,016 | 2,464 | |
2,017 | 1,952 | |
2,018 | 1,594 | |
2,019 | 1,569 | |
2,020 | 103 | |
Thereafter | 0 | |
Long-Term Debt and Capital Lease Obligations | 7,682 | 9,282 |
Note Collateralized by Real Estate [Member] | ||
Promissory Notes [Abstract] | ||
Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by first and second postions on all assets of the Company. | 3,988 | 154 |
Borrowing capacity | $ 5,000 | |
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 3.40% | |
Maturity date | Sep. 30, 2016 | |
Bank Line of Credit due August 2015 [Member] | Note Collateralized by First and Second Position on All Assets of the Company [Member] | ||
Promissory Notes [Abstract] | ||
Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by first and second postions on all assets of the Company. | $ 0 | $ 700 |
Borrowing capacity | $ 1,000 | |
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Basis spread | 2.00% | |
Maturity date | Aug. 31, 2015 | |
Bank Line of Credit due August 2015 [Member] | Note Collateralized by First and Second Position on All Assets of the Company [Member] | Prime Rate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 7.00% | |
Floor interest rate | 7.00% | |
Bank Line of Credit due May 2016 [Member] | Note Collateralized by First and Second Position on All Assets of the Company [Member] | ||
Promissory Notes [Abstract] | ||
Bank line of credit, available LOC $5.0 million interest at 3.4% due in September 2016, collateralized by first and second postions on all assets of the Company. | $ 0 | $ 656 |
Borrowing capacity | $ 2,500 | |
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 6.00% | |
Maturity date | May 31, 2016 | |
Note Payable due February 2016 [Member] | Note collateralized by Aircraft Security Agreements [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 0 | 314 |
Interest rate | 6.00% | |
Maturity date | Feb. 29, 2016 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 0 | 314 |
Note Payable due April 2017 [Member] | Note collateralized by Aircraft Security Agreements [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 81 | 159 |
Interest rate | 6.00% | |
Maturity date | Apr. 30, 2017 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 81 | 159 |
Note Payable due September 2017 [Member] | Note collateralized by Aircraft Security Agreements [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 150 | 249 |
Interest rate | 6.25% | |
Maturity date | Sep. 30, 2017 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 150 | 249 |
Debt Instrument due January 2020 [Member] | Note collateralized by Aircraft Security Agreements [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 547 | 674 |
Interest rate | 5.75% | |
Maturity date | Jan. 31, 2020 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 547 | 674 |
Note Payable due August 2019 [Member] | Note Collateralized by Real Estate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 192 | 253 |
Maturity date | Aug. 31, 2019 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 192 | $ 253 |
Note Payable due August 2019 [Member] | Note Collateralized by Real Estate [Member] | Prime Rate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 3.36% | |
Note Payable due March 2019 [Member] | Note Collateralized by Real Estate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 198 | $ 261 |
Maturity date | Mar. 31, 2019 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 198 | $ 261 |
Note Payable due March 2019 [Member] | Note Collateralized by Real Estate [Member] | Prime Rate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 3.36% | |
Note Payable due March 2019 [Member] | Note Collateralized by Real Estate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 468 | $ 628 |
Maturity date | Mar. 31, 2019 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 468 | $ 628 |
Note Payable due March 2019 [Member] | Note Collateralized by Real Estate [Member] | Prime Rate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate | 2.68% | |
Note Payable due June 2016 [Member] | Note Collateralized by Real Estate [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 291 | $ 306 |
Interest rate | 6.25% | |
Maturity date | Jun. 30, 2019 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 291 | 306 |
Debt Instrument due May 2020 [Member] | Note Collateralized by BNSC's Assets and Compensation due under State Mgmt Contract [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 4,602 | 5,500 |
Interest rate | 4.89% | |
Maturity date | May 31, 2020 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 4,602 | 5,500 |
Debt instrument due May 2015 and December 2016 [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 1,150 | 895 |
Interest rate | 3.50% | |
Maturity date range, start | Dec. 31, 2016 | |
Maturity date range, end | Mar. 31, 2018 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 1,150 | 895 |
Debt Instrument due April 2016 [Member] | ||
Long-Term Debt and Capital Lease Obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 3 | 43 |
Interest rate | 5.80% | |
Maturity date | Jun. 30, 2016 | |
Maturities of long-term debt and capital lease obligations [Abstract] | ||
Long-Term Debt and Capital Lease Obligations | $ 3 | $ 43 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Deferred tax liabilities [Abstract] | ||
Depreciation | $ 0 | $ (178) |
Deferred tax assets [Abstract] | ||
Depreciation | 80 | 0 |
Accounts receivable allowance | 31 | 28 |
Inventory and other allowances | 859 | 1,154 |
Vacation accruals | 93 | 117 |
NOL carryforward | 41 | 76 |
Total gross deferred tax assets | 1,104 | 1,375 |
Less valuation allowance | 0 | 0 |
Net deferred tax assets | $ 1,104 | $ 1,197 |
Reconciliation of the federal statutory income tax rate [Abstract] | ||
Statutory federal income tax rate (benefit) expense, net of noncontrolling interest | 34.00% | 34.00% |
State income tax net of federal benefits | 0.00% | 0.00% |
Permanent tax | 30.70% | 59.15% |
Other | 14.75% | (9.71%) |
Effective tax rate | 79.45% | 83.44% |
Income tax expense [Abstract] | ||
Deferred income tax | $ 93 | $ 138 |
Current income tax (benefit) | 0 | 0 |
Total income tax expense (benefit) | 93 | 138 |
Current federal income tax expense (benefit) | 0 | 0 |
Current state income tax expense (benefit) | 0 | 0 |
Accrued income taxes | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | ||
Shares issued for 401k plan (in shares) | 1,206,775 | 1,367,006 |
Value of shares issued for 401k plan | $ 241 | $ 219 |
Stock Issued During Period, Shares, Issued for Services | 0 | 0 |
Value of shares issued for marketing and consulting services | $ 0 | $ 0 |
STOCK OPTIONS AND INCENTIVE P32
STOCK OPTIONS AND INCENTIVE PLANS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Apr. 30, 2016USD ($)GroupCondition$ / sharesshares | Apr. 30, 2015USD ($)$ / sharesshares | Apr. 30, 2014$ / sharesshares | Apr. 30, 2016$ / sharesshares | Apr. 30, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of the option shares to be expensed | $ | $ 684 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in shares) | shares | 7,262,064 | 7,262,064 | |||
Expiration date | Dec. 31, 2015 | Dec. 31, 2015 | |||
Stock exercise price (in dollars per share) | $ 0.49 | $ 0.49 | $ 0.49 | $ 0.49 | $ 0.49 |
Share-based compensation expense | $ | $ 0 | $ 22 | |||
Strike price (in dollars per share) | 1.36 | 1.36 | |||
Stock price (in dollars per share) | $ 0.49 | $ 0.49 | |||
Volatility | 125.00% | 125.00% | |||
Term of award | 3 years 1 month 6 days | 3 years 1 month 6 days | |||
Dividend yield | 0.00% | 0.00% | |||
Interest rate | 1.01% | 1.01% | |||
Option, Exercise price range [Abstract] | |||||
Range of exercise prices (in dollars per share) | $ 0.49 | ||||
Number outstanding and exercisable (in shares) | shares | 0 | ||||
Weighted average remaining contract life | 8 months 12 days | ||||
Weighted average exercise and outstanding price (in dollars per share) | $ 0.49 | ||||
Options [Roll Forward] | |||||
Outstanding Beginning (in shares) | shares | 7,262,064 | 7,262,064 | 7,262,064 | ||
Granted (in shares) | shares | 0 | 0 | 0 | ||
Expired (in shares) | shares | 0 | 0 | 0 | ||
Exercised (in shares) | shares | 0 | 0 | 0 | ||
Outstanding Ending (in shares) | shares | 7,262,064 | 7,262,064 | 7,262,064 | ||
Average Price [Roll Forward] | |||||
Outstanding Beginning (in dollars per share) | $ 0.49 | $ 0.49 | $ 0.49 | ||
Granted (in dollars per share) | 0 | 0 | 0 | ||
Expired (in dollars per share) | 0 | 0 | 0 | ||
Exercised (in dollars per share) | 0 | 0 | 0 | ||
Outstanding Ending (in dollars per share) | 0.49 | $ 0.49 | $ 0.49 | ||
Incentive Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock exercise price (in dollars per share) | $ 0.49 | $ 0.49 | |||
Number of groups incentive stock options are allocated | Group | 3 | ||||
Number of conditions for vesting | Condition | 2 | ||||
Average Price [Roll Forward] | |||||
Outstanding Ending (in dollars per share) | $ 0.49 | ||||
Incentive Stock Option [Member] | Year 1 Target [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options than can be exercised (in shares) | shares | 2,420,688 | ||||
Stock price (in dollars per share) | $ 0.92 | ||||
Options exercisable at April 30 (in shares) | shares | 2,420,688 | ||||
Incentive Stock Option [Member] | Year 2 Target [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options than can be exercised (in shares) | shares | 2,420,688 | ||||
Stock price (in dollars per share) | $ 1.41 | ||||
Options exercisable at April 30 (in shares) | shares | 2,420,688 | ||||
Incentive Stock Option [Member] | Year 3 Target [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options than can be exercised (in shares) | shares | 2,420,688 | ||||
Stock price (in dollars per share) | $ 1.90 | ||||
Options exercisable at April 30 (in shares) | shares | 2,420,688 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Operating Leased Assets [Line Items] | ||
Total rental expense | $ 5,117 | $ 5,030 |
Minimum lease and rent agreement commitments [Abstract] | ||
2,016 | 5,027 | |
2,017 | 5,016 | |
2,018 | 4,929 | |
2,019 | 4,946 | |
2,020 | 4,995 | |
Operating lease future minimum payments due | $ 24,913 | |
3 Year Initial Term [Member] | ||
Operating Leased Assets [Line Items] | ||
Initial lease term | 3 years | |
5 Year Initial Term [Member] | ||
Operating Leased Assets [Line Items] | ||
Initial lease term | 5 years | |
10 Year Initial Term [Member] | ||
Operating Leased Assets [Line Items] | ||
Initial lease term | 10 years | |
25 Year Initial Term [Member] | ||
Operating Leased Assets [Line Items] | ||
Initial lease term | 25 years |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | |
CONTINGENCIES [Abstract] | ||||
Settlement amount | $ 1,424 | |||
Proceeds from settlement | $ 1,324 | |||
Book value of system related equipment | 551 | |||
Gain on settlement | $ 773 | $ 0 | $ 773 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Director David Hayden [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | $ 0 | $ 0 |
Consulting fees | 135 | 135 |
Director Bradley Hoffman [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | 3 | 4 |
Wayne Stewart [Member] | ||
Related Party Transaction [Line Items] | ||
Compensation expenses | 225 | 219 |
Craig Stewart [Member] | ||
Related Party Transaction [Line Items] | ||
Compensation expenses | 292 | 286 |
Jeff Shinkle [Member] | ||
Related Party Transaction [Line Items] | ||
Compensation expenses | 188 | 179 |
CEO [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities | 301 | 209 |
BHCMC, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 780 | $ 780 |
401(k) SAVINGS PLAN (Details)
401(k) SAVINGS PLAN (Details) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016USD ($)EntryDate | Apr. 30, 2015USD ($) | |
401(k) SAVINGS PLAN [Abstract] | ||
Number of days of service eligible to participate in the plan | 30 days | |
Number of entry dates per calendar year to participate in plan | EntryDate | 2 | |
Employers matching contribution, as percent of every pretax dollar | 100.00% | |
Maximum percentage of matching contribution | 6.00% | |
Employee vested percentage in employer's contributions | 100.00% | |
Employer matching share contribution | $ | $ 241 | $ 219 |
INDUSTRY SEGMENTATION AND SAL37
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016USD ($)Customer | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jul. 31, 2014USD ($) | Apr. 30, 2016USD ($)SegmentCustomer | Apr. 30, 2015USD ($) | ||
INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER [Abstract] | |||||||||||
Number of primary activities | Segment | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 11,925 | $ 11,067 | $ 10,106 | $ 11,696 | $ 11,836 | $ 11,083 | $ 11,752 | $ 12,391 | $ 44,794 | $ 47,062 | |
Depreciation and amortization | 2,174 | 2,885 | |||||||||
Operating income (loss) | 418 | 442 | (599) | 361 | (389) | 535 | 367 | 806 | 622 | 1,319 | |
Capital expenditures, net | 1,816 | 3,682 | |||||||||
Interest expense | (471) | (1,141) | |||||||||
Other income (expense) | 21 | 16 | |||||||||
Income (loss) before taxes | 908 | 967 | |||||||||
Income tax expense (benefit) | 93 | 138 | |||||||||
Net income (loss) attributable to Butler National Corporation | 381 | $ 102 | $ (478) | $ 19 | (322) | $ 68 | $ 29 | $ 252 | 24 | 27 | |
Identifiable assets, net | $ 42,697 | 41,598 | $ 42,697 | 41,598 | |||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | 14.50% | ||||||||||
Number of major customers | Customer | 5 | 5 | |||||||||
Top Customer [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | 6.00% | ||||||||||
Next Top Four Customers [Member] | Minimum [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | 1.90% | ||||||||||
Next Top Four Customers [Member] | Maximum [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | 2.70% | ||||||||||
Professional Services [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 29,784 | 30,795 | |||||||||
Depreciation and amortization | 1,390 | 1,573 | |||||||||
Operating income (loss) | 1,597 | 1,794 | |||||||||
Capital expenditures, net | 242 | 420 | |||||||||
Interest expense | 0 | 0 | |||||||||
Other income (expense) | 0 | 0 | |||||||||
Income (loss) before taxes | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||
Net income (loss) attributable to Butler National Corporation | 0 | 0 | |||||||||
Identifiable assets, net | $ 22,462 | 21,650 | 22,462 | 21,650 | |||||||
Aerospace Products [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 15,010 | 16,267 | |||||||||
Depreciation and amortization | 784 | 1,312 | |||||||||
Operating income (loss) | (975) | (475) | |||||||||
Capital expenditures, net | 1,574 | 3,262 | |||||||||
Interest expense | 0 | 0 | |||||||||
Other income (expense) | 0 | 0 | |||||||||
Income (loss) before taxes | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||
Net income (loss) attributable to Butler National Corporation | 0 | 0 | |||||||||
Identifiable assets, net | $ 20,235 | $ 19,948 | $ 20,235 | $ 19,948 | |||||||
Modifications [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | [1] | ||||||||||
Management Services [Member] | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Professional Services | [1] | ||||||||||
[1] | Revenue represented less than 10% of consolidated revenue. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Recurring [Member] - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Promissory notes | $ 3,988 | $ 1,510 |
Long-term debt | 7,682 | 9,282 |
Liabilities, fair value disclosure | 11,670 | 10,792 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Promissory notes | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities, fair value disclosure | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Promissory notes | 0 | 0 |
Long-term debt | 0 | 0 |
Liabilities, fair value disclosure | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Promissory notes | 3,988 | 1,510 |
Long-term debt | 7,682 | 9,282 |
Liabilities, fair value disclosure | $ 11,670 | $ 10,792 |
SUMMARY OF QUARTERLY FINANCIA39
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | ||
SUMMARY OF QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||
Revenues | $ 11,925 | $ 11,067 | $ 10,106 | $ 11,696 | $ 11,836 | $ 11,083 | $ 11,752 | $ 12,391 | $ 44,794 | $ 47,062 | |
Operating income (loss) | 418 | 442 | (599) | 361 | (389) | 535 | 367 | 806 | 622 | 1,319 | |
Non-operating income (expense) | 617 | (104) | (108) | (119) | 480 | (246) | (300) | (286) | 286 | (352) | |
Net income (loss) attributable to Butler National Corporation | $ 381 | $ 102 | $ (478) | $ 19 | $ (322) | $ 68 | $ 29 | $ 252 | $ 24 | $ 27 | |
Basic earnings (loss) per share (in dollars per share) | [1] | $ 0.01 | $ 0 | $ (0.01) | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted earnings (loss) per share (in dollars per share) | [1] | $ 0.01 | $ 0 | $ (0.01) | $ 0 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Rounded to nearest hundredth |