Butler National (BUKS) 10-Q 15 Dec 17 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Oct. 31, 2017	Dec. 08, 2017
Document Information [Line Items]
Entity Registrant Name	BUTLER NATIONAL CORP
Entity Central Index Key	15,847
Trading Symbol	buks
Current Fiscal Year End Date	--04-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		64,534,943
Document Type	10-Q
Document Period End Date	Oct. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Oct. 31, 2017	Apr. 30, 2017
CURRENT ASSETS:
Cash	$ 5,392	$ 6,389
Accounts receivable	2,892	4,095
Inventories
Raw materials	6,046	5,644
Work in process	1,319	1,174
Finished goods	32	39
Total inventory	7,397	6,857
Prepaid expenses and other current assets	1,049	994
Total current assets	16,730	18,335
PROPERTY, PLANT AND EQUIPMENT:
Land and building	5,197	5,132
Aircraft	5,888	5,888
Machinery and equipment	3,829	3,639
Office furniture and fixtures	6,848	6,497
Leasehold improvements	4,032	4,032
	25,794	25,188
Accumulated depreciation	(15,230)	(14,506)
Total property, plant and equipment	10,564	10,682
SUPPLEMENTAL TYPE CERTIFICATES (net of accumulated amortization of $4,754 at October 31, 2017 and $4,345 at April 30, 2017)	6,308	6,354
OTHER ASSETS:
Deferred tax asset	925	925
Other assets (net of accumulated amortization of $7,590 at October 31, 2017 and $6,904 at April 30, 2017)	6,018	6,482
Total other assets	6,943	7,407
Total assets	40,545	42,778
CURRENT LIABILITIES:
Promissory notes	2,951	2,604
Current maturities of long-term debt	1,884	2,297
Accounts payable	1,394	1,919
Customer deposits	368	892
Gaming facility mandated payment	1,160	1,227
Compensation and compensated absences	1,285	1,478
Income tax payable	160	589
Other current liabilities	259	129
Total current liabilities	9,461	11,135
LONG-TERM DEBT, NET OF CURRENT MATURITIES	2,536	3,347
Total liabilities	11,997	14,482
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, par value $.01: authorized 100,000,000 shares issued 65,273,896 and outstanding 64,534,943 shares at October 31, 2017 and issued 65,273,896 and outstanding 64,543,550 shares at April 30, 2017	652	652
Capital contributed in excess of par	13,980	13,980
Treasury stock at cost, 738,953 shares at October 31, 2017 and 730,346 at April 30, 2017	(767)	(764)
Retained earnings	10,041	9,719
Total stockholders' equity Butler National Corporation	23,906	23,587
Noncontrolling interest in BHCMC, LLC	4,642	4,709
Total stockholders' equity	28,548	28,296
Total liabilities and stockholders' equity	40,545	42,778
Preferred Class A [Member]
STOCKHOLDERS' EQUITY:
Preferred stock
Preferred Class B [Member]
STOCKHOLDERS' EQUITY:
Preferred stock

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Oct. 31, 2017	Apr. 30, 2017
Supplemental type certificates, accumulated amortization	$ 4,754	$ 4,345
Other assets, accumulated amortization	$ 7,590	$ 6,904
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
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)	65,273,896	65,273,896
Common stock, shares outstanding (in shares)	64,535,943	64,543,550
Preferred Class A [Member]
Preferred stock, stated value (in dollars per share)	$ 100	$ 100
Preferred stock, dividend rate	9.80%	9.80%
Preferred stock, liquidation value	$ 100	$ 100
Preferred stock, redemption value	$ 100	$ 100
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, designated classes (in shares)	200,000	200,000
Preferred Class B [Member]
Preferred stock, stated value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, dividend rate	6.00%	6.00%
Preferred stock, liquidation value	$ 1,000	$ 1,000
Preferred stock, redemption value	$ 1,000	$ 1,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, designated classes (in shares)	200,000	200,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
REVENUE:
Professional Services	$ 7,342	$ 7,722	$ 14,781	$ 15,206
Aerospace Products	3,814	5,091	8,024	8,996
Total revenue	11,156	12,813	22,805	24,202
COSTS AND EXPENSES:
Cost of Professional Services	4,763	4,649	9,596	9,169
Cost of Aerospace Products	2,800	3,698	5,833	6,569
Marketing and advertising	956	1,071	1,810	2,083
Employee benefits	459	438	935	914
Depreciation and amortization	500	507	982	1,014
General, administrative and other	1,361	1,286	2,686	2,578
Total costs and expenses	10,839	11,649	21,842	22,327
OPERATING INCOME	317	1,164	963	1,875
OTHER INCOME (EXPENSE):
Interest expense	(81)	(106)	(167)	(224)
Other income (expense), net		1		(18)
Total other expense	(81)	(105)	(167)	(242)
INCOME BEFORE INCOME TAXES	236	1,059	796	1,633
PROVISION FOR INCOME TAXES
Deferred income tax expense		292		418
Provision for income taxes	47		181
NET INCOME	189	767	615	1,215
Net income attributable to noncontrolling interest in BHCMC, LLC	(105)	(248)	(293)	(472)
NET INCOME ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION	$ 84	$ 519	$ 322	$ 743
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	$ 0	$ 0.01	$ 0	$ 0.01
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	64,542,699	63,466,873	64,543,127	63,466,873
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	$ 0	$ 0.01	$ 0	$ 0.01
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	64,542,699	63,466,873	64,543,127	63,466,873

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 615	$ 1,215
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	1,819	1,797
Changes in assets and liabilities
Accounts receivable	1,203	(1,654)
Inventories	(540)	356
Prepaid expenses and other current assets	(57)	(116)
Deferred tax asset		418
Accounts payable	(525)	(378)
Customer deposits	(524)	1,472
Accrued liabilities	(622)	(190)
Gaming facility mandated payment	(67)	(111)
Other current liabilities	130	117
Net cash provided by operating activities	1,432	2,926
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,189)	(911)
Net cash used in investing activities	(1,189)	(911)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings of promissory notes, net	347	(1,230)
Repayments of long-term debt	(1,224)	(1,360)
Distribution to non-controlling member	(360)	(360)
Purchase of Treasury Stock	(3)
Net cash used in financing activities	(1,240)	(2,950)
NET DECREASE IN CASH	(997)	(935)
CASH, beginning of period	6,389	7,381
CASH, end of period	5,392	6,446
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	167	225
Income taxes paid	$ 609

Note 1 - Organization, Consolid

Note 1 - Organization, Consolidated and Presentation of Financial Statements	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. 10 8 X not 10 April 30, 2017 . In our opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three six October 31, 2017 are not may April 30, 2018 . Certain reclassifications within the condensed financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no In May 2014, FASB”) issued Accounting Standards Update (“ASU”) No. 2014 09, 606 December 15, 2017 December 15, 2016. two first 2019. In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 December 15, 2018,

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	2. ”) follows ASC 260 260, October 31, 2017 is 64,534,943.

Note 3 - Inventories

Note 3 - Inventories	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. Inventories: Inventories are priced at the lower of cost, determined on a first first Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence we consider inventory that has been inactive for five tory generally consists of Falcon and Learjet parts and electrical components. At October 31, 2017 and April 30, 2017, $1,177 $1,177

Note 4 - Research and Developme

Note 4 - Research and Development	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Research, Development, and Computer Software Disclosure [Text Block]	4 . Research and Development: We invested in research and development activities. The amount invested in the six October 31, 2017 2016 was $720 $717

Note 5 - Debt

Note 5 - Debt	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	5 . Debt: At October 31, 2017 , the Company has a line of credit totaling $5,000. October 31, 2017 was $2,049. first second At October 31, 2017 , there is one $342. There are three 422 March 2019. One note totaling $ 267 June 2019. At October 31, 2017 , there is one $88. April 2022. BHCMC arranged to acquire additional gaming machines for ownership by the Kansas Lottery. The balance of these financed payables is $ 282. One note secured by all of the BNSC assets and compensation due under the State Management contract totals $3,019 May 2020. We are not October 31, 2017 . We believe that our current banks will provide the necessary capital for our business operations. However, we continue to maintain contact with other banks that have an interest in funding our working capital needs to continue our growth in operations in 2018 and beyond.

Note 6 - Other Assets

Note 6 - Other Assets	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	6 . Other Assets: Our other asset account includes assets of $5,500 $5,232 $1,417 $1,459. $5,500 December 2024. no three 15

Note 7 - Stock Options and Ince

Note 7 - Stock Options and Incentive Plans	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	7 . Stock Options and Incentive Plans: At October 31, 2017 we had no In November 2016, 2016 may 12.5 No

Note 8 - Stock Repurchase Progr

Note 8 - Stock Repurchase Program	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Treasury Stock [Text Block]	8. In December 2016, $500 ’s management based on market conditions and other factors. The program is currently authorized through May 1, 2018. The table below provides information with respect to common stock purchases by the Company through October 31, 2017 . Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs Program authorization $ 500 Quarter ended January 31, 2017 (a) 49,920 $ 0.20 49,920 $ 490 Quarter ended April 30, 2017 80,426 $ 0.27 80,426 $ 468 Quarter ended July 31, 2017 0 $ 0.00 0 $ 468 Quarter ended October 31, 2017 8,607 $ 0.30 8,607 $ 465 Total 138,953 $ 0.25 138,953 (a) 49,920

Note 9 - Subsequent Events

Note 9 - Subsequent Events	6 Months Ended
	Oct. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	9 . Subsequent Events: The Company evaluated its October 31, 2017 financial statements for subsequent events through the filing date of this report. The Company is not

Note 8 - Stock Repurchase Pro15

Note 8 - Stock Repurchase Program (Tables)	6 Months Ended
	Oct. 31, 2017
Notes Tables
Class of Treasury Stock [Table Text Block]	Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs Program authorization $ 500 Quarter ended January 31, 2017 (a) 49,920 $ 0.20 49,920 $ 490 Quarter ended April 30, 2017 80,426 $ 0.27 80,426 $ 468 Quarter ended July 31, 2017 0 $ 0.00 0 $ 468 Quarter ended October 31, 2017 8,607 $ 0.30 8,607 $ 465 Total 138,953 $ 0.25 138,953 (a) 49,920

Note 2 - Net Income Per Share (

Note 2 - Net Income Per Share (Details Textual)	6 Months Ended
	Oct. 31, 2017shares
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	64,534,943

Note 3 - Inventories (Details T

Note 3 - Inventories (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2017	Apr. 30, 2017
Duration During Which Inventory If Inactive Taken as Obsolete	5 years
Inventory Valuation Reserves	$ 1,177	$ 1,177

Note 4 - Research and Develop18

Note 4 - Research and Development (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Research and Development Expense	$ 720	$ 717

Note 5 - Debt (Details Textual)

Note 5 - Debt (Details Textual) $ in Thousands	Oct. 31, 2017USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 2,049
Notes Collateralized by Aircraft Security Agreements [Member]
Number of Notes	1
Notes Payable	$ 342
Notes Payable to Bank [Member]
Number of Notes	3
Notes Payable	$ 422
Notes for Real Estate [Member]
Number of Notes	1
Notes Payable	$ 267
Note for Equipment [Member]
Number of Notes	1
Notes Payable	$ 88
BHCMC Lottery Gaming Machines [Member]
Notes Payable	$ 282
Note Collateralized by BNSC Assets and Compensation Due under State Management Contract [Member]
Number of Notes	1
Notes Payable	$ 3,019

Note 6 - Other Assets (Details

Note 6 - Other Assets (Details Textual) $ in Thousands	6 Months Ended
	Oct. 31, 2017USD ($)
Other Assets, Miscellaneous	$ 1,459
Kansas Expanded Lottery Act Contract Privilege [Member]
Other Intangible Assets, Net	5,500
Intangible Gaming Support Items [Member]
Other Intangible Assets, Net	$ 5,232
Finite-Lived Intangible Asset, Useful Life	3 years
JET Autopilot Intellectual Property [Member]
Other Intangible Assets, Net	$ 1,417
Finite-Lived Intangible Asset, Useful Life	15 years

Note 7 - Stock Options and In21

Note 7 - Stock Options and Incentive Plans (Details Textual) - shares shares in Thousands	6 Months Ended
	Oct. 31, 2017	Nov. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0
Butler National Corporation 2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		12,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0

Note 8 - Stock Repurchase Pro22

Note 8 - Stock Repurchase Program (Details Textual) - USD ($) $ in Millions	3 Months Ended					11 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	[1]	Oct. 31, 2017	Dec. 31, 2016
Stock Repurchase Program, Authorized Amount							$ 0.5
Treasury Stock, Shares, Acquired	8,607	0	80,426	49,920		138,953
[1]	49,920 shares of common stock purchased were purchased through a private transaction

Note 8 - Stock Repurchase Pro23

Note 8 - Stock Repurchase Program - Schedule of Stock Purchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					11 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Apr. 30, 2017	Jan. 31, 2017	[1]	Oct. 31, 2017	Dec. 31, 2016
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs	$ 465	$ 468	$ 468	$ 490		$ 465	$ 500
Number of Shares Purchased (in shares)	8,607	0	80,426	49,920		138,953
Average Price Paid per Share (in dollars per share)	$ 0.30	$ 0	$ 0.27	$ 0.20		$ 0.25
Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in shares)	8,607	0	80,426	49,920		138,953
[1]	49,920 shares of common stock purchased were purchased through a private transaction