UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
{X} ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended DECEMBER 31, 1996
---------------------------------
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
Commission File Number 0-14951
-------
BUTLER SERVICE GROUP, INC. 401(K) PLAN
--------------------------------------
(Full name of plan)
BUTLER INTERNATIONAL, INC.
--------------------------
(Exact name of registrant as specified in its charter)
MARYLAND 06-1154321
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
110 Summit Avenue, Montvale, New Jersey 07645
---------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 573-8000
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X . No .
--- ---
BUTLER SERVICE GROUP, INC.
401(K) PLAN
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Page
--------
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
as of December 31, 1996 and 1995 4
Statement of Changes in Net Assets Available for
Benefits for the Year ended December 31, 1996 5
Notes to Financial Statements 6-12
SUPPLEMENTAL SCHEDULES:
Item 27a of Form 5500 - Schedule of Assets Held
for Investment Purposes at December 31, 1996 13-18
Item 27d of Form 5500 - Schedule of Reportable
Transactions for the year ended December 31, 1996 19
Supplemental schedules not included herein are
omitted due to the absence of conditions under
which they are required.
EXHIBIT 1 - Independent Auditors' Consent 20
2
INDEPENDENT AUDITORS' REPORT
Trustees
Butler Service Group, Inc.
401(k) Plan
Montvale, New Jersey
We have audited the accompanying statements of net assets available for benefits
of the Butler Service Group, Inc. 401(k) Plan ("the Plan") as of December 31,
1996 and 1995, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1996. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1996 and 1995, and the changes in net assets available for benefits
for the year ended December 31, 1996 in conformity with generally accepted
accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of (1) assets
held for investment purposes as of December 31, 1996 and (2) reportable
transactions for the year ended December 31, 1996 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These schedules are the responsibility
of the Plan's management. Such schedules have been subjected to the auditing
procedures applied in the basic 1996 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
/s/ Deloitte & Touche LLP
- -------------------------
Parsippany, New Jersey
June 26, 1997
3
BUTLER SERVICE GROUP, INC.
401(K) PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 AND 1995
- --------------------------------------------------------------------------------
1996 1995
---- ----
ASSETS:
Investments at fair value / face value (Note C) $24,769,775 $19,159,882
Contributions receivable, employees 562,881 514,040
Contributions receivable, employer 878,691 567,689
Accrued interest 92,646 95,302
----------- -----------
Total Assets 26,303,993 20,336,913
----------- -----------
LIABILITIES:
Accrued expenses 23,238 7,447
----------- -----------
Total Liabilities 23,238 7,447
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $26,280,755 $20,329,466
=========== ===========
See notes to financial statements.
4
BUTLER SERVICE GROUP, INC.
401(K) PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996
- -------------------------------------------------------------------------------
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Contributions from employees $ 7,991,817
Contributions from employer 878,691
Investment income 753,599
Net realized and unrealized appreciation in
fair value of investments 2,681,762
-----------------
Total Additions 12,305,869
-----------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants 6,082,998
Investment and administrative management fees 271,582
-----------------
Total Deductions 6,354,580
-----------------
NET INCREASE IN NET ASSETS AVAILABLE FOR
BENEFITS 5,951,289
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 20,329,466
-----------------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $ 26,280,755
=================
See notes to financial statements.
5
BUTLER SERVICE GROUP, INC.
401(K) PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
- --------------------------------------------------------------------------------
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are prepared on the accrual basis
of accounting and are presented in accordance with the Employee Retirement
Income Security Act of 1974 ("ERISA").
Certificates of deposit are stated at face value. US Government
obligations and equity investments are stated at fair value as determined by
quoted market prices. Purchases and sales of securities are recorded on a
trade-date basis. Interest income is recorded on the accrual basis. Dividends
are recorded on the ex-dividend date.
B. PLAN DESCRIPTION
The following description provides general information, refer to the
plan document for a more detailed description.
On July 1, 1990, Butler Service Group, Inc. ("the Company") established
a 401(K) Plan which was adopted by its wholly-owned subsidiaries. The 401(K)
Plan is a continuation of the Butler Service Group, Inc. Investment Savings Plan
and is designed to provide an incentive for employees of the Company to save
regularly through payroll deductions and possible matching contributions by the
Company. Effective January 1, 1992, all employees were eligible to participate
in the Butler Service Group, Inc. 401(K) Plan.
There are six investment funds offered under the 401(K) Plan - the
Fixed Income Fund, which invests in FDIC insured certificates of deposit and US
government obligations, the Small to Mid-Cap Equity Fund, which invests in a
diversified common stock portfolio of representative industries and
corporations, primarily small to mid-capitalization in size, the Mid to
Large-Cap Equity Fund, which invests in a diversified common stock portfolio of
growth companies, primarily large and medium capitalization, the Butler
International ("BI") Stock Fund which is a qualified employer security under
ERISA, the Balanced Fund, which invests 60 to 65% in equities and 35 to 40% in
government bonds and cash equivalents, and the International Fund which
generally invests in securities of foreign issuers located in Europe, the
Pacific Rim, Canada and Central and South America.
A participant in the 401(K) Plan has the choice of saving on a
before-tax basis, by payroll deduction, any amount from 1% to 20% (in whole
percentages) of total payroll each payroll period, an "elective deferral
contribution." By law, the elective deferral contribution, per participant,
under this Plan and all similar plans is limited during any calendar year. In
addition, the elective deferral contribution for a highly compensated employee
(an employee earning over $66,000 for 1996), during the year relative to the
elective deferral contributions of other participants of the Plan could exceed
the amount permitted by law. Should this occur, the elective deferral
contributions of the highly compensated employees may be reduced during the Plan
year to the extent necessary to satisfy the legal limitation or any excess
deferral contributions may be recharacterized or refunded after the end of the
Plan year.
A participant may allocate a specified percentage of the contribution
in any or all of the six funds in multiples of 10%.
The Company is not required to make any contributions to the Plan, but
the Company may decide, at its sole discretion, to make a matching contribution
for a Plan year. For any Plan year that the Company decides to make a matching
or partial contribution, it will deposit in the BI Stock Fund an amount which
will be allocated in proportion to the elective deferral contributions made by
the Plan participants for that Plan year. In 1996 the Company made a
contribution of $878,691 to the Plan in accordance with a customer contract,
which was funded by the customer.
6
Each participant is permitted to change the elective deferral
contribution rate by completing the Change in Status Form and filing it with the
Plan's Administrative Committee. The elective deferral contribution rate is
adjusted after the Committee receives and processes the Change in Status Form.
A participant may fully discontinue the elective deferral contribution
as of the first day of any month by written notice to the Plan's Administrative
Committee at least fifteen days before the date on which the discontinuance is
to take effect. A discontinuance of the elective deferral contribution is only
permitted once during any Plan year and will automatically require the
discontinuance of any Company matching contributions to the Matching
Contribution Account. The elective deferral contribution may be resumed as of
any January, April, July, or October 1 by written notice to the Committee at
least fifteen days before a participant intends for the contributions to be
resumed.
Participants may withdraw funds while employed only from accounts in
which they are fully vested after attaining age 59 1/2. Prior to attaining age
59 1/2 a withdrawal may be made only for financial hardship. Only one withdrawal
may be requested during any Plan year for reasons other than financial hardship.
The minimum amount available for a withdrawal is $500. If the participant has an
outstanding loan, the amount of funds available for withdrawal may be limited.
Withdrawals may be made as of any January 1, April 1, July 1, or October 1 from
any of the funds in which the participant's accounts are invested. A participant
will have a 100% vested interest in all accounts upon retirement at or after age
65, in the event of a permanent disability or in the event of death prior to
termination of employment. Upon termination of employment, the value of the
vested accounts will be paid in a lump sum. After completing three years of
service with the Company, a participant is entitled to the full value of the
Matching Contribution Account, if any.
Participants may borrow up to 50% of the vested portion of their
account balance, subject to a maximum of $50,000. Only one loan will be granted
at a time and must be repaid in full before another loan can be requested. The
minimum loan amount is $1,000. Loans are subject to an interest rate based on
the rate charged, as of the date the loan is granted, by the Company's principal
banking institution for loans granted under similar circumstances. Loans must be
repaid within such period as agreed to by the participant and the Plan's
administrative committee, up to a maximum of five years. However, if the loan is
made for the purchase or construction of the participants principal place of
residence, the repayment period may be longer than five years. Repayments will
normally be made through payroll deductions.
Although the Company has not expressed any intent to do so, in the
event the Plan is terminated, all participants will be 100% vested in all their
accounts and benefits will be payable strictly under the terms of the Plan.
Benefits under defined contribution plans of the 401(K) type are not insured by
the Pension Benefit Guaranty Corporation.
7
C. PLAN INVESTMENTS
Plan investments are summarized as follows:
December 31,
---------------------------
1996 1995
---- ----
Fixed Income Fund:
Fixed Income Fund - Certificates of
deposit at fair value $ 7,867,000 $ 8,131,000
PW Retirement Money Fund 359,407 92,163
Loans to participants 178,416 155,235
------------ ------------
Total Fixed Income Fund 8,404,823 8,378,398
------------ ------------
Small to Mid-Cap Equity Fund:
Equity Account - Stocks
at fair value 6,189,732 4,603,900
Sansom Money Market Portfolio 1,603,679 1,246,185
Loans to participants 76,193 66,729
------------ -------------
Total Small to Mid-Cap Equity Fund 7,869,604 5,916,814
------------ -------------
Mid to Large-Cap Equity Fund:
Equity Account - Stocks
at fair value 355,565 -
PaineWebber Cashfund 136,160 -
Loans to participants (275) -
------------ -------------
Total Mid to Large-Cap Equity Fund 491,450 -
------------ -------------
Butler International ("BI") - Stock Fund:
BI Common Stock at fair value,
288,678 shares at December 31, 1996
and 254,408 shares at December 31, 1995 2,958,950 1,367,443
PW Retirement Money Fund 415 463
Loans to participants 52,980 49,915
------------ -------------
Total BI - Stock Fund 3,012,345 1,417,821
------------ -------------
Balanced Fund:
Equity Account - US Government
obligations at fair value 1,021,570 588,160
Equity Account - Stocks
at fair value 1,514,513 879,370
Sansom Money Market Portfolio 131,520 170,604
Loans to participants 18,231 7,293
------------ -------------
Total Balanced Fund 2,685,834 1,645,427
------------ -------------
International Fund:
Equity Account - Stocks
at fair value 2,069,038 1,655,813
Sansom Money Market Portfolio 152,988 87,172
Loans to participants 17,487 8,115
------------ -------------
Total International Fund 2,239,513 1,751,100
------------ -------------
8
C. PLAN INVESTMENTS - continued
Distribution Account:
PW Retirement Money Fund 66,206 42,775
Cash - 7,547
------------ -------------
Total Distribution Account 66,206 50,322
------------ -------------
Total Investments, at fair value/face value $ 24,769,775 $ 19,159,882
============ =============
Year Ended
December 31,
1996
------------
Net realized and unrealized appreciation
(depreciation) in investments:
US government obligations $ (27,557)
Certificates of deposit 3,798
Equity investments 2,705,521
-------------
Total $ 2,681,762
=============
Investment income:
Interest $ 497,047
Dividends 256,412
Cash in lieu of fractional shares 140
-------------
Total $ 753,599
=============
9
D. BENEFITS PAYABLE
The amounts payable to the Plan participants who have terminated or
withdrawn from the plan were $562,916 and $1,419,271 at December 31, 1996 and
1995, respectively.
E. TAX STATUS
The Internal Revenue Service has determined that the Plan is a
qualified plan under Section 401(a) of the Code with an associated trust exempt
from tax under Section 501(a). The most recent favorable letter of determination
on the qualified status of the Plan was issued by the Internal Revenue Service
("IRS") on April 22, 1996. The sponsor will, on a timely basis as prescribed by
IRS guidelines, request a determination letter from the IRS on the Plan's
continued qualified status. The Plan sponsor and the Plan's tax counsel believe
that the Plan as currently designed and operated is in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, there is no
provision for income taxes in the financial statements.
F. ADMINISTRATION OF PLAN ASSETS
Contributions are held and managed by PaineWebber, Inc. ("the
trustee"), which invests cash received, interest and dividend income and makes
distributions to participants. The trustee also administers the payment of
interest and principal on the participant loans.
Certain administrative functions are performed by officers or employees
of the Company. No such officer or employee receives compensation from the Plan.
Certain plan administration expenses are borne by the Plan.
10
G. STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS BY FUND
(In Thousands)
Small to Mid to
December 31, 1996 Fixed Mid-Cap Large-Cap BI- Balanced International Distribution
-----------------
Income Fund Fund Stock Fund Fund Account Total
------- ------- ------- ------- ------- ------- ------- -------
Assets:
Net investments, at fair
value / face value $ 8,045 $ 6,266 $ 355 $ 3,012 $ 2,554 $ 2,087 $ -- $22,319
Cash and cash equivalents 359 1,604 136 -- 132 153 66 2,450
Contributions receivable:
Employees 151 160 50 42 95 65 -- 563
Employer 449 193 17 56 98 66 -- 879
Accrued interest 93 -- -- -- -- -- -- 93
---------- ------- ------- ------- ------- ------- ------- -------
Total Assets 9,097 8,223 558 3,110 2,879 2,371 66 26,304
--------- ------- ------- ------- ------- ------- ------- -------
Liabilities:
Accrued expenses 9 8 1 -- 3 2 -- 23
---------- ------- ------- ------- ------- ------- ------- -------
Total Liabilities 9 8 1 -- 3 2 -- 23
---------- ------- ------- ------- ------- ------- ------- -------
Net assets available
for benefits $ 9,088 $ 8,215 $ 557 $ 3,110 $ 2,876 $ 2,369 $ 66 $26,281
========= ======= ======= ======= ======= ======= ======= =======
December 31, 1995 Fixed Equity BI- Balanced International Distribution
- -----------------
Income Fund Stock Fund Fund Account Total
--------- ------- ------ --------- -------- -------- ------
Assets:
Net investments, at fair
value / face value $ 8,286 $ 4,671 $ 1,417 $ 1,475 $ 1,664 $ -- $17,513
Cash and cash equivalents 92 1,246 -- 171 87 50 1,646
Contributions receivable:
Employees 182 157 44 75 57 -- 515
Employer 308 126 36 47 51 -- 568
Accrued interest 95 -- -- -- -- -- 95
-------- ------- ------- ------- ------- ------- -------
Total Assets 8,963 6,200 1,497 1,768 1,859 50 20,337
--------- ------- ------- ------- ------- ------- -------
Liabilities:
Accrued expenses 3 3 -- 1 1 -- 8
-------- ------- ------- ------- ------- ------- -------
Total Liabilities 3 3 -- 1 1 -- 8
-------- ------- ------- ------- ------- ------- -------
Net assets available
for benefits $ 8,960 $ 6,197 $ 1,497 $ 1,767 $ 1,858 $ 50 $20,329
========= ======= ======= ======= ======= ======= =======
11
H.STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY FUND
(in thousands)
Small to Mid to
Year Ended December 31, 1996 Fixed Mid-Cap Large-Cap BI- Balanced International Distribution
----------------------------
Income Fund Fund Stock Fund Fund Account Total
------ ---- ---- ----- ---- ---- ------- -----
Additions:
Contributions from
employees $ 2,251 $ 2,605 $ 156 $ 636 $ 1,331 $ 963 $ 50 $ 7,992
Contributions from
employer 448 193 17 56 99 66 - 879
Investment income 466 167 2 1 55 59 4 754
Net realized and
unrealized
appreciation
in investments 4 919 8 1,366 210 175 - 2,682
--------- --------- ------ --------- --------- ----------- ------------- ----------
Total Additions 3,169 3,884 183 2,059 1,695 1,263 54 12,307
--------- --------- ------ --------- --------- ----------- ------------- ----------
Deductions:
Distribution to
participants 2,596 1,671 2 479 693 610 32 6,083
Investment management and
administrative fees 40 137 2 8 44 40 1 272
--------- --------- ------ --------- --------- ----------- ------------- ----------
Total Deductions 2,636 1,808 4 487 737 650 33 6,355
--------- --------- ------ --------- --------- ----------- ------------- ----------
Net Transfers (405) (58) 378 41 151 (102) (5) -
Net increase in assets 128 2,018 557 1,613 1,109 511 16 5,952
Net assets available for
benefits, beginning of
year 8,960 6,197 - 1,497 1,767 1,858 50 20,329
--------- --------- ------ --------- --------- ----------- ------------- ----------
Net assets available for
benefits, end of year $ 9,088 $ 8,215 $ 557 $ 3,110 $ 2,876 $ 2,369 $ 66 $ 26,281
========= ========= ====== ========= ========= =========== ============= ==========
12
BUTLER SERVICE GROUP, INC.
401(K) PLAN
ITEM 27A OF FORM 5500 - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
Current Value/
Interest Maturity Par Face
Description Rate Date Value Value Cost
- ------------------------------------------- --------- -------- -------- ---------------- ---------
CASH AND CASH EQUIVALENTS:
PW Retirement Money Fund $ 426,028 $ 426,028
Paine Webber Cashfund 136,160 136,160
Sansom St. Money Market Portfolio 1,888,187 1,888,187
------------- -------------
$ 2,450,375 $ 2,450,375
============= =============
US GOVERNMENT OBLIGATIONS:
US Treasury Note 8.25% 07/15/98 $ 197,000 $ 203,712 $ 206,093
US Treasury Note 7.50% 05/15/02 193,000 204,159 204,532
US Treasury Note 6.25% 02/15/03 122,000 121,924 123,847
US Treasury Note 7.25% 05/15/04 113,000 118,969 119,518
US Treasury Note 6.50% 05/15/05 225,000 226,688 220,621
Tint 0.00% 05/15/06 267,000 146,118 141,313
----------------- ------------------ ------------------
$ 1,117,000 $ 1,021,570 $ 1,015,924
================= ================== ==================
CERTIFICATES OF DEPOSIT:
Continental Bank 5.25% 01/21/97 $ 22,000 $ 22,000
Continental Bank 4.55% 03/31/97 3,000 3,000
MBNA America Bank 4.90% 06/30/97 50,000 50,000
MBNA America Bank 4.75% 08/18/97 90,000 90,000
MBNA America Bank 4.70% 09/02/97 40,000 40,000
Continental Bank Chicago 5.00% 10/07/97 50,000 50,000
Continental Bank 5.70% 01/13/98 275,000 275,000
Continental Bank 5.55% 01/27/98 20,000 20,000
Ponce Federal Bank 5.00% 07/14/98 90,000 90,000
Lasalle National Bank 4.15% 10/28/98 180,000 180,000
Greenwood Trust Company 4.95% 11/03/98 90,000 90,000
Greenwood Trust Company 5.00% 11/24/98 360,000 360,000
Lasalle National Bank 4.55% 11/24/98 90,000 90,000
Lasalle Bank 5.55% 03/26/99 15,000 15,000
European American Bank 6.15% 05/25/99 60,000 60,000
European American Bank 6.10% 06/08/99 20,000 20,000
European American Bank 6.00% 06/22/99 9,000 9,000
Continental Bank Chicago 5.80% 08/19/99 45,000 45,000
Continental Bank Chicago 5.60% 09/23/99 20,000 20,000
Continental Bank Chicago 5.70% 10/07/99 135,000 135,000
Republic Bank & Trust 5.60% 10/18/99 6,000 6,000
MBNA America Bank 5.40% 12/20/99 7,000 7,000
Continental Bank 6.30% 12/23/99 3,000 3,000
Continental Bank 6.15% 01/13/00 30,000 30,000
Continental Bank 6.10% 01/20/00 90,000 90,000
Berkeley Federal Bank & Trust 5.25% 01/24/00 95,000 95,000
13
Poncebank 5.85% 04/03/00 6,000 6,000
Continental Bank 5.60% 04/07/00 105,000 105,000
Continental Bank 5.65% 04/14/00 126,000 126,000
Continental Bank 5.40% 04/21/00 17,000 17,000
Continental Bank 5.40% 04/28/00 3,000 3,000
Bank America Phoenix 5.50% 05/10/00 275,000 275,000
Continental Bank 5.50% 05/26/00 20,000 20,000
Lasalle Bank Northwest 5.85% 08/28/00 12,000 12,000
Berkeley Federal Bank & Trust 5.80% 10/11/00 9,000 9,000
Greenwood Trust Company 5.10% 10/27/00 90,000 90,000
Greenwood Trust Company 5.45% 11/17/00 45,000 45,000
Berkeley Federal Bank & Trust 5.60% 11/29/00 90,000 90,000
Greenwood Trust Company 5.40% 12/15/00 12,000 12,000
Greenwood Trust Company 5.40% 12/22/00 270,000 270,000
Ocwen Federal 5.90% 12/26/00 90,000 90,000
Berkeley Federal Bank & Trust 5.50% 12/27/00 175,000 175,000
Lasalle National Bank 5.10% 01/10/01 80,000 80,000
Greenwood Trust Company 5.35% 01/19/01 15,000 15,000
Continental Bank Chicago 5.35% 01/19/01 8,000 8,000
Berkeley Federal Bank & Trust 5.30% 01/24/01 95,000 95,000
Greenwood Trust Company 5.40% 02/02/01 12,000 12,000
Berkeley Federal Bank & Trust 5.50% 03/06/01 95,000 95,000
Household Bank 6.00% 04/03/01 20,000 20,000
Lasalle National Bank 6.35% 06/08/01 50,000 50,000
FCC National Bank 6.10% 08/15/01 65,000 65,000
Greenwood Trust Company 6.15% 08/28/01 60,000 60,000
European American Bank 6.25% 09/25/01 30,000 30,000
Continental Bank Chicago 6.40% 08/26/02 30,000 30,000
Continental Bank Chicago 6.20% 09/23/02 6,000 6,000
European American Bank 5.65% 11/22/02 45,000 45,000
Continental Bank 6.65% 12/30/02 14,000 14,000
Continental Bank 6.55% 01/13/03 25,000 25,000
Continental Bank 6.40% 02/03/03 18,000 18,000
Continental Bank 6.30% 02/10/03 10,000 10,000
Continental Bank 6.20% 02/18/03 20,000 20,000
Continental Bank 5.70% 03/17/03 165,000 165,000
European American Bank 6.20% 03/27/03 95,000 95,000
Household Bank 6.50% 04/17/03 10,000 10,000
Continental Bank 6.00% 06/09/03 220,000 220,000
Lasalle National Bank 6.60% 09/18/03 15,000 15,000
Lasalle National Bank 6.45% 09/25/03 90,000 90,000
Greenwood Trust Company 5.50% 10/27/03 90,000 90,000
Greenwood Trust Company 5.75% 11/10/03 45,000 45,000
Greenwood Trust Company 5.90% 11/17/03 48,000 48,000
Greenwood Trust Company 6.00% 12/22/03 20,000 20,000
Greenwood Trust Company 6.00% 12/29/03 10,000 10,000
Lasalle National Bank 5.30% 01/05/04 12,000 12,000
Greenwood Trust Company 5.80% 01/20/04 6,000 6,000
Greenwood Trust Company 5.85% 01/26/04 39,000 39,000
Lasalle National Bank 5.30% 01/26/04 305,000 305,000
Greenwood Trust Company 6.00% 02/17/04 230,000 230,000
Lasalle National Bank 6.05% 03/16/04 20,000 20,000
Lasalle National Bank 6.05% 03/23/04 260,000 260,000
Lasalle National Bank 6.05% 03/30/04 9,000 9,000
14
Lasalle National Bank 6.65% 04/27/04 10,000 10,000
Lasalle National Bank Chicago 6.35% 06/01/04 90,000 90,000
Lasalle national Bank 6.55% 06/29/04 10,000 10,000
Lasalle National Bank 6.50% 07/27/04 15,000 15,000
Greenwood Trust Company 7.10% 09/21/04 4,000 4,000
Greenwood Trust Company 7.20% 10/12/04 4,000 4,000
Lasalle National Bank Chicago 7.35% 11/30/04 5,000 5,000
Lasalle Cragin Bank 6.70% 04/19/05 8,000 8,000
Lasalle National Bank 6.50% 04/26/05 13,000 13,000
Lasalle Cragin Bank 6.60% 05/03/05 14,000 14,000
Lasalle National Bank 6.20% 05/24/05 90,000 90,000
Lasalle National Bank 6.25% 05/31/05 265,000 265,000
Lasalle National Bank 5.70% 06/14/05 30,000 30,000
Lasalle National Bank 6.10% 06/21/05 10,000 10,000
Lasalle National Bank 5.90% 06/28/05 265,000 265,000
Lasalle National Bank 5.95% 07/26/05 30,000 30,000
Lasalle National Bank 6.25% 08/30/05 276,000 276,000
Lasalle National Bank 6.00% 09/20/05 30,000 30,000
Lasalle National Bank 5.95% 09/27/05 205,000 205,000
European American Bank 6.05% 10/04/05 10,000 10,000
European American Bank 5.75% 11/29/05 86,000 86,000
European American Bank 5.70% 12/06/05 35,000 35,000
Lasalle National Bank 5.90% 02/28/06 190,000 190,000
Lasalle National Bank 6.00% 03/13/06 50,000 50,000
European American Bank 6.40% 03/27/06 90,000 90,000
Lasalle National Bank 6.65% 09/25/06 90,000 90,000
European American Bank 7.00% 12/06/10 20,000 20,000
Lasalle National Bank Chicago 7.00% 12/27/10 190,000 190,000
Lasalle NI 7.00% 12/28/10 95,000 95,000
Provident Bank Ohio 6.75% 01/26/11 10,000 10,000
------------------ ------------------
$ 7,867,000 $ 7,867,000
================== ==================
7.00% - 01/97 - ------------------ ------------------
Loans to Participants 10.25% 06/11 $ 343,032 $ 343,032
================== ==================
15
BUTLER SERVICE GROUP, INC.
401(K) PLAN
ITEM 27A OF FORM 5500 - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
Current Value/
Face
Description Shares Value Cost
- ------------------------------------------ ---------------- --------------------- --------------------
COMMON STOCKS:
Ascend Communications 705 $ 43,798 $ 31,161
Adobe Systems, Inc 5,080 189,865 173,493
Advanta Corp Class B 2,790 114,041 101,659
AES Corp 3,822 177,723 91,498
Aetna Inc 3,250 260,000 229,681
Aktiebolaget Electrolux 760 43,890 34,119
Alcatel Alsthom Sponsored 3,830 61,280 67,802
Allied Domecq Plc Sponsored 5,370 41,950 42,358
Allied Signal Inc. 635 42,545 39,411
Amer Brands Inc 300 14,888 13,088
Amer Home Products 465 27,261 27,493
Amer International Group 200 21,650 19,500
Amer Stores Co 4,270 174,536 116,704
American Radio Systems 800 21,800 24,150
Amgen, Inc. 250 13,594 14,844
Apria Healthcare Group 5,430 101,812 153,314
Asia Pulp & Paper 4,080 46,410 33,150
Astra AB Sponsored 956 45,649 38,567
Autodesk, Inc. 5,370 150,360 178,318
Avery Dennison Corp 1,090 38,559 32,268
Avon Products 625 35,703 33,672
Banco Central S.A. 1,790 23,270 19,424
Bat Industries 2,900 47,850 44,320
Becton Dickinson & Co 645 27,977 25,760
Biogen, Inc. 880 34,100 36,050
Bristol Myers Squibb 310 33,790 32,550
British Gas plc 1,180 44,988 39,725
Brunswick Corp 2,830 67,920 66,366
Butler International, Inc. 288,678 2,958,950 1,734,622
Cable & Wireless 2,070 50,974 43,065
Cadbury Schweppes 1,210 41,291 38,683
Cadence Design Systems 1,293 51,074 35,704
Case Corp 2,400 130,800 115,856
Cascade Communications 585 32,248 24,570
CDN AC Ltd 1,340 35,510 35,510
Chase Manhattan Corp 2,150 192,156 128,099
Chrysler Corp 1,075 35,475 35,255
Circuit City Stores Inc. 1,690 50,911 46,686
Cisco Systems 815 51,855 34,906
Citicorp 2,210 227,630 148,623
Comagnie Generale 2,870 70,995 58,136
Computer Assoc International 580 28,856 29,036
Daimler Benz 705 48,293 37,894
Dallas Semiconductor Corp 3,470 79,810 65,941
Dayton Hudson Corp 1,930 75,753 47,913
Deere and Co 1,650 66,825 69,117
16
Den Daske Bank 595 47,911 40,628
Deutsche Bank 1,395 65,084 65,584
Dover Corp 600 30,300 25,425
Eaton Corp 1,660 115,785 111,702
ECI Telecom 7,740 164,475 160,159
Elf Aquitaine Spon 1,539 69,640 56,094
EMC Corp Mass 6,840 226,575 110,223
Empressa Ncional 1,040 72,800 61,736
ENI Spa 1,240 64,015 60,173
Everest Reins Holdings, Inc. 4,310 123,913 100,746
Exel Ltd Ord 3,880 146,955 118,098
Federal National Mtge 200 7 ,525 6,625
Fiat Spa 7,874 62,992 69,869
Fluor Corp 1,170 73,418 75,398
Gap Inc 1,105 33,288 31,589
Gartner Group 1,010 39,327 34,621
General Electric Company 6,570 61,416 52,936
Grand Metroplitan 1,380 43,643 43,677
Green Tree Fincl 585 22,596 18,849
Greenfield Inds Inc. 1,960 60,025 61,115
HBO & Co 555 32,953 33,313
Health Management 1,015 22,838 22,076
Heineken 107 18,917 19,145
HFS, Inc. 625 37,344 35,316
Hoechst 1,080 50,948 30,477
Honda Motor 820 46,433 34,748
Household Intl 360 33,210 25,155
HSBC Holdings 214 45,788 33,130
Insignia Fincl Group 1,100 24,750 25,825
Johnson & Johnson 350 17,413 17,569
KAO Corp 325 37,800 41,036
Kerr McGee Corp 510 36,720 35,190
KN Energy, Inc. 2,240 87,920 65,240
LCI International 830 17,949 29,154
Lilly Eli & Co 250 18,250 14,688
Living Centers of America 2,020 56,055 70,790
Liz Claiborne 640 24,720 24,000
Lockheed Martin Corp 1,620 148,230 132,784
LSI Logic Corp 6,970 186,448 220,310
Mallinckrodt Inc. 3,200 141,200 124,085
Mannesmann Aktiengesell 164 70,980 53,202
Marriott International 510 28,178 27,396
Matsushita Ele 261 42,608 43,032
McDonnell Douglas Corp 305 20,016 14,030
McGraw Hill Companies 2,450 115,313 115,329
Medpartners Inc. 6,630 137,573 99,450
MEMC Electrical Materials 2,190 49,275 71,831
Merrill Lynch & Co 325 26,488 16,575
Microsoft Corp 600 49,575 29,651
Mississippi Chemical 100 2,400 8,288
Mitsui Marine & Fire 670 35,962 50,773
Morgan Stanley 415 23,707 16,730
Morton Intl Inc. 4,600 187,451 178,852
National Power 2,087 70,697 59,173
Nestle 1,171 62,661 65,094
Nike Inc. 430 25,800 14,969
Nintendo 4,750 42,408 44,026
NKK Corp 1,725 38,788 52,665
17
Northrop Grumman Corp 1,470 121,643 96,836
Novartis AG 746 42,585 33,441
Occidental petroleum 500 11,688 12,250
Octel Communication 4,140 72,450 72,968
Omnicom Group 630 28,823 27,799
Oryx Energy Company 500 12,375 10,938
Oxford Healthcare Plans 810 47,436 40,403
Parametric Technology Corp 865 44,439 35,435
Parker Hannifin Corp 2,580 99,975 100,385
Paychex, Inc. 750 38,579 34,279
Peoplesoft, Inc. 1,050 50,335 31,372
Pepsico 500 14,625 15,875
Perceptron Inc 600 20,550 18,900
Pfizer, Inc. 360 29,880 26,282
Phillip Morris Cos Inc. 165 18,645 14,891
Phycor, Inc. 657 18,642 24,447
Pittston Brink's Group 300 8,100 8,813
Rank Group 3,140 47,100 45,833
Revco Inc. 1,050 38,850 35,175
Reynolds Metals Co 3,200 180,400 175,799
Rhone Poulenc 2,345 79,437 58,435
Ricoh 835 47,840 45,495
Rival Company 2,780 69,153 61,500
Roosevelt Fincl Group, Inc. 5,390 113,190 104,431
Royal Dutch 385 65,739 54,921
Safeway, Inc. 710 30,353 18,283
Sara Lee Corp 3,280 122,180 108,053
Sinclair Broadcast Group 1,000 26,000 30,175
Sony Corp 1,043 68,447 63,915
Stanley Works 990 26,730 26,978
Sterling Commerce, Inc. 238 8,390 7,005
Sterling Software, Inc. 150 4,744 4,376
Systems Software 4,890 51,956 64,793
Tenet Healthcare Corp 6,100 133,438 127,825
Thermo Electron Corp 400 16,500 15,913
Thermo Instruments 655 21,697 23,559
Tokyo Marine & Fire 795 37,067 49,730
Travelers Group. Inc. 1,110 50,366 40,706
Tupperware Corp 2,520 135,135 63,941
Tyco International 635 33,576 26,908
Ultramar Corp 2,340 74,003 71,542
Unilever 555 54,113 45,044
Union Texas Pete Hldgs 3,620 80,998 69,233
Vastar Res Inc. 2,250 85,500 71,438
Vesta Insruance Group, Inc. 1,950 61,181 70,850
Vulcan Materials 480 29,220 29,940
Wallace Computer Svs Inc. 2,450 84,525 75,949
Walt Disney Co 300 20,925 18,388
Wang Labs Inc. 200 4,050 3,650
Warnaco Group 300 8,888 6,713
Wash Mutual Inc 3,680 159,392 106,423
Wellpoint Health 3,008 103,400 144,884
Westinghouse Electric 1,000 19,875 15,875
WMX Technologies, Inc. 2,150 69,875 61,956
WPP Group 845 36,283 25,031
Xerox Corp 4,640 244,180 231,311
Yasuda 905 38,283 51,852
--------------------- --------------------
$ 13,087,798 $ 10,749,544
====================== =====================
18
BUTLER SERVICE GROUP, INC.
401(K) PLAN
ITEM 27d of FORM 5500 - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------
Number of Number of
Sales Net Gain Purchase
Asset Description Transactions Proceeds (Loss) Transactions Cost
- ----------------- ------------ -------- --------- ------------ ----
Single transactions in excess of 5% of Plan assets:
PW Retirement Money Fund -- -- -- 1 1,360,625
PW Retirement Money Fund -- -- -- 1 1,307,941
Series of transactions in excess of 5% of Plan assets:
PW Retirement Money Fund 132 8,855,727 -- 244 9,404,515
Sansom Money Market
Portfolio 202 8,023,785 -- 328 8,408,010
19
EXHIBIT 1
INDEPENDENT AUDITORS' CONSENT
- -----------------------------
We consent to the incorporation by reference in Registration Statements No.
333-22263, No. 33-58481 and No. 33-87012 on Form S-8, Registration Statement No.
33-59427 on Form S-3 and Post-Effective Amendment No. 4 to Registration
Statement No. 33-58278 on Form S-2 of our report dated June 26, 1997 appearing
in the Annual Report on Form 11-K of the Butler Service Group, Inc. 401(k) Plan
for the year ended December 31, 1996.
/s/ Deloitte & Touche LLP
- -------------------------
Parsippany, New Jersey
June 26, 1997
20
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the plan) have duly caused this annual
report to be signed on its behalf by the undersigned thereunto duly authorized.
BUTLER INTERNATIONAL, INC.
--------------------------
(Registrant)
June 30, 1997 By: /s/ Warren F. Brecht
---------------------
Warren F. Brecht
Senior Vice President
and Secretary
21