BUKS - Earnings call transcript Q4 2021 | Butler National Corporation

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Operator

Good morning, ladies and gentlemen. Today is Tuesday, July 20th, and welcome to the Butler National Corporation Fourth Quarter Fiscal Year End 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Your call leaders for today’s call are David Drewitz, Creative Options Communications; Clark Stewart, President and CEO; and Craig Stewart, President of Aerospace Group. to call like to now would turn over the Mr. I Drewitz. David Mr. may Drewitz, sir. you begin,

David Drewitz

that. good I you, Thank appreciate and morning everyone. to

except Stewart are call Mr. pursuant your herein, Act begins, would statements for as to, the like contained historical Harbor XXXX. this forward-looking the and Reform Securities Before outlined Litigation in information in Safe to Private I to attention conference draw provisions made of the

future National periods risks expenditures. competition unknown differ the and which in actual this forward-looking and results results. call otherwise, regulations, other known and statements caption are Butler date obligations technologies expectations to annual circumstances. Butler Factors that in loss the Exchange from events of and the or cause of by conference environmental forecasted the among Important involve statements only from call, update market Forward-looking companies, include, of share to capital other new to the materially subsequent include, statements which results could actual publicly the may as or to statements materially The uncertainties are risks forward-looking of in safety, could limited the in to Butler made Commission. health reflect this to through XX-K cause under described the introduction Those included governmental forward-looking not require Company’s filed Form report factors things, and competing on significant no but differ factors with make undertakes reflected National such Risk Securities

Mr. Clark turn to would all to statement Stewart. yours. over that it’s With Okay. I call like completed, Mr. Stewart, the

Clark Stewart

and Good morning, gentlemen. Thank you, Mr. ladies Drewitz.

fourth about make the and quarter. a few our year Just to comments last

Hill our pleased we fiscal it increase, XX a Boot a even to ventures the might We’re was what ‘XX, X% ago. decrease did our though and recovery. closed are about year excited showing with recall, days year And the was during X% Casino you for some from environment, as revenue COVID be about through

certain XXXX in limited a million will approximately free required up We I million think continue some we this was in part to and as in operate XXXX, with eventually full we And everything operate state -- Net income capacity us can. to the areas, affected $X.X so then, $X.X and XX%. to allow staff and best of with decrease COVID last some compared to saying that. of you that regulations was that as

quarters details work the in it first the continue three the to went through year. press the call conference of improve as efficiencies, as says discussed We the We we the to release. during

about So, I’m quarter. going to talk fourth most the

revenue revenue our the modifications We’re $XX.X fourth where the in about percentage XX% the aircraft big quarter of the the last some on and in they’re backlog. strong this in we Aerospace $XX.X though to and significant still compared point and fourth is, We year. future, quarter, ones, the excited must in when complete, in quarter and do was very to quarter up completion, results orders are the results due slightly based even fourth profit. in of million million they the increased Aerospace changes the out, situation to

been nature be just for that to of airplane going business. seems the the So, is And what’s years. that on

of it from scheduling a other that’s a $XXX,XXX the year what closing to ago, the quarter and up compared casino items. So, The at backlog X because is a of a million ago. income resulted was the year XX% $X.X of $XX.X fourth net July in million, loss

as not that the it there, So, We the came but be that backlog out I significant and turned that’s through. that. think to a pleased orders increase, -- concerned have might we’re were

about that, said talk Aerospace in detail. having So, let’s

on. so tells it release, XX% and If you press your read that you decreased revenue

Aerospace, spend continue million, STCs basically, costs let which on on that’s okay. is it, did versus the Craig. comment million We will And the $XX.X overall But and increase aggressive. to I $XX.X our you money on

that we going And I’ll do the And then, be. is thought what talk Casino. we’ll were think improved you let we over to Aerospace I about that. significantly

Craig Stewart

excited in business. points. Newton be about capacity very in if at continues modification The We’re segment where to at at some we’re operating over capacity, almost Aerospace not

backlog rates backlog least where there So, extend busy the number looks at at next a all that the the a which we’re that increase orders X to out today. caused way excited. to being. to business six the April $XX.X here we’ve majority gotten The I July which out can is for from of should $XX.X in highest be remember up the XX same go of The to million, is we it we are between and backlog, months Arizona, continue strong significant million,

I about had excited release. we’re we’re in So, a press we believe do where with going Aerospace. the typo

that income believe million $X.X versus operating have income I ago, because year versus net a think, fiscal $X.X the total where our net was we I million year million income, $X.X ago. year million had year our -- should for our this been -- $X.X a

net But, is go we’ll but on year look that. $X.X a the we’ll the versus at let that, million to correct think there’s year $X.X million think back for we’ve in fiscal press typo -- I income ago. number the and release a But you I got for need a there. know

Clark Stewart

Thank you, Craig.

were for XXXX segment, versus Remember Professional we’re we million. in on. going On revenue XXXX. we and the million casino, that revenue days. higher ‘XX and the XX% up did that’s closed of really $XX.X Costs what’s were people decreased good. to short Essentially, get $XX.X X%, number and is and of where we in X% considerable Services Costs XX% was

than harder were they little we’re and a working everybody’s by. So, getting before,

the income year they a the but half we’re last XXXX. increased as would this patrons, mix operating the which and XX% far month don’t of missing As of with key get X%, that. almost XX% of a in expenses, The about they here the item is XXX%, Remember, we that and revenue. business expect were versus that year decreased excited

starting the COVID of overall pleased had the So, return of patrons we few very willing time, summer. and we’re people where older risk. period older distance to are that this risk and the to casino, significant the We analysis younger people had the very a travel coming that

we’re I happy what’s local some should think state everybody’s comply that numbers and happening. operation. the -- requirements to So, keen normal that little I trying still back are toward as regulations, The think, XXXX, a great rain there have to we’re out quick some the Yes, regulations with is and we are happen. beating back of side. slightly. that with go we having COVID weather everything numbers we’re on else shouldn’t full number the our COVID going ahead. good But drop the with more budget we still what move is in last And regulations, and comparing the and But which we to those year up, operations, patrons, and are everything -- and of beating the

Craig Stewart

year, BHCMC. prior adding that out listed Those back and last net -- of interest the we figured in for in million to $X.X that’s those the read. I income net the subtracting the are million numbers release or income the those non-controlling press $X.X

numbers. our that’s XX% the income just as So, net whole, the with not of casino a

So, but before correct net for income, those understand it’s there, the are non-controlling interest.

net the they and why from above. the Thanks. income table that’s So, differ

Clark Stewart

strong. about as out. Craig, the as I’m XXX% to do of of And divide sorry. to the understand to to is backlog Backlog our a share the look do net the accounting, very that of to and at we the we better want income, took XX% volume discuss them opposed It’s revenue, further? that, trying get I Yes. when ready talk it throughout any you

Craig Stewart

has to part. think the that. I we’re can answer when get we We question-and-answer with questions if good any anybody

Clark Stewart

as concerned, as with my David, think far I I’m So, finished I’m comments.

airplane I the we’re I business there we’ve far, we’re better though very And does and think to think, this a ago. excited the casino in a back airplane was be two period. for be I over it the going, business wherever year the about this what it’s remember know year this going is weathered business to think we that, from sure. the cyclical a storm certainly years next should business, Remember -- five-year and and backlog

it you Drewitz. much. So, very Mr. but will Thank we turn around. excited, get

see have. questions Let’s what we

David Drewitz

to and start ahead you let’s And turn recap. Excellent. that go answer now the over and segment. questions, for questions it asking. Thank you have if And

Operator

Instructions] [Operator Rebotsky. a question have from Sam And we

Your is line open.

Sam Rebotsky

that Yes. And you expect in Good could a morning, the everybody. specific to? you indication is backlog what do Do any you you in -- attribute have larger anything further? the do going there of much how Aerospace, increase the backlog

Clark Stewart

Unit increase Good Thanks due The in is for of this year question. to majority the morning, the Control the orders. Sam. Gun backlog

X. lot And those so, received a XX July of April between and we’ve

Yes, to from that they probably This significant are customer had delivered those kind contracts in be new years, X orders of orders in getting. last they order, the those XX and over so, And last three main cyclical just based a or months, the And of quarter it’s requirements. there. they’re months increase on out the received. what will our terms we

hard based to they out, we’ll the there. come more new And decrease in in constant over here get anticipate is, excited and backlog. Does will when going I or be it’s we’re we an so, And the whether same three those six backlog’s answer Sam? your delivering standpoint, work what to staying terms the pretty in. question, would about to the been whether order months that. will how than that orders it tell, and modification orders or It’s increase on have relatively deliver a forecast as their we’re that what been next of From

Sam Rebotsky

improvement the sounds do That orders, profitability? expect new these of And in Yes. profitability good. we

Clark Stewart

We -- as taking -- pretty Units capacity are that -- there rate normal projects not Those have which just well. These we’re that The profitable off and projects Gun the that the at be profitability are operating good. the normal rate. them. now be have of at will the our standard right to those, not is will -- there normally not normal modification take don’t we’re we Control segment, there’ll

in in what taking Like we’re pretty we’re lot be going a we’re So, maintenance there. the projects. to projects about business, of selective not are modification the that type adding

In fact, we the any on money don’t of make kind we’re that those taking just not projects those. of

Sam Rebotsky

to me And now, let the casino. just switch

what a continuing days do You you expect? where or of the there to were to bringing thoughts And relative you we opening Do previously? compared expect you selling any casino? open operation casino? relative increased and And days. the to in availability many for How are partner hours is more open were the

Clark Stewart

understand. you sure make let’s Well,

in XX and We’re to year fiscal year In be XXXX XXX in some of when days we were maintenance closed it, in as than when or were look day, some total did -- We X a That’s there have days for April, any required other were as stuff hours I as we state and no there XX reason -- ended none the closed that the open so the really days. electrical XX a look customer patrons days. And we days on. COVID. year, of far XXXX a XX a the comparison. days activity, was the closed, facility. But at real fiscal work, us customers those at ‘XX, week, created no mean when because we in XXXX

good it’s the turning that question? Did thing. business. for little the your us, that’s excited we’re in answer That’s interruption around the that and So, a

Sam Rebotsky

to et the cetera. been licenses, would -- it. to in of the or improve area? a know when Do part bring what with gotten this doing discussing, this happen? And something Well, casino. I expect full we’ve we We’ve partner

Clark Stewart

will probably not any have contemplated. not We that we have partners

sell not to wanting the of interest are in our this We at point. position

have. do the that it when three We’ve report, And probably interest it the we will we fast partner continue stopped years holding him certainly if bits we something last continue war. that a go. the material, COVID everyone to kind occurs, doing And the because for we with from as basically we months time fight and time so, in discussed and buying know. have of of to with annual And to we’re of to But discussed two had current we and every says his let forward moved that.

develops, anything yes, back to -- be everyone let we’ll know. So to question. glad if get that And as we’ll

Sam Rebotsky

participating yes, gambling, lotteries, is -- cetera? bringing et of more in there like areas way the new Is more with there any Kansas, in casino,

Clark Stewart

the we should number Let And are little different of that will the is got on that effect a be and But Hopefully, that last book, considering something yes, answer. me stalled kind have some with that answer of this the occur. casinos, next sports that patrons. state year, suggesting year. productive through

measures As better. outperforming we as seem the consistently far as in seem and the other the can as our performance and other them three be all relative We growth patrons we far casinos to doing to to measure. state, be that

all won’t positive of more So, have that’s the aspect that. we any Hopefully, shutdowns.

Sam Rebotsky

everything, good. you. that luck sounds stockholders. Thank all Good Well, the and to employees

Clark Stewart

Thank you, Sam.

We’re business. excited about the of our future

Operator

from a question we have Foley Keith Lionbridge And from Partners.

is open. line Your

Unidentified Analyst

maybe could, I’ll casino. with I If the start

You And are as you challenges casino to some I’ll mentioned staffing? you to, close with the full that staffing. had how I’m up, wondering just staffing your ramps say, XXXX or

Clark Stewart

Probably XX%.

We’re short. probably XX%

Unidentified Analyst

Okay.

Clark Stewart

That’s or plus. a few, that’s minus a plus but

Unidentified Analyst

are you in increase then, not to Yes, different need at companies in lot course, regards that And are yet pressure of Are to seeing compensation? a of about of seeing seeing There’s staff. you point course. articles to this the you that? any attract or news wages

Clark Stewart

XX% money to more We about are XX% is That also spent. seeing. being number

Unidentified Analyst

I’m or And larger markets up of to home kind to Vegas more of example, were curious, visit drive you. go kind Las the For and to they normally your to couple-hour to during made you or client might go an COVID, and that normally drive became did a close you picking casino? hour Thank then, base that diversified? other gamble Okay. might stay said notice people

Craig Stewart

of the now. change any I the many customers see come We younger related back saw starting the a where older to ones. the They’re in that mix didn’t were the ages We from. were in to And age think of the at change COVID. coming how of was versus customers the coming

Unidentified Analyst

also I’m -- And ahead. sorry, are go seeing you

Craig Stewart

I with say spending it with was the per was was younger higher person group one. going just the little older to than a the

Unidentified Analyst

that levels, or to that are hotel is And there back you occupancy the the hot? Inn, seeing is XXXX short or at running Hampton running

Clark Stewart

in is hotel tell I’d sold City the Dodge out. you, market

Unidentified Analyst

That’s encouraging. Oh!

Clark Stewart

out. sold is Everybody

is for guests, not not factor before. it’s we -- our looking and are challenges mean that. That looking a I we rooms to we do had So, have we’re for like for Yes. had

a there’s big in going course, a development makes lot on of City, industrial Of which Dodge difference.

Unidentified Analyst

website is and call on or was your I more expected, like Okay. currently saw capacity Arena wondering, I the are that And restrictions? that it, for are I’ll additional this Wireless summer bookings there then, fall. point, there United bookings preventing bookings And for, are at restrictions two

Clark Stewart

City to people That people more -- get rooms, we’ve working got we’re is correct. be We’re can and What to so more get to events. to more we bookings. trying more get able the into Dodge

We’re an revenue, working than And a that. it’s not can on other we that problem if it’s more done. opportunity to get have

mission the that’s think I So, here.

Unidentified Analyst

I viewing kind a opportunity Yes. my reopening of well as on was as side.

Clark Stewart

Yes.

Unidentified Analyst

And the are a on that million taken updates to other these spend rolled and press I orders chance in And might had COVID the or really I wondering, new your mentioned new the that you’d these or was I flip out place? referenced, that not over appreciate [STC] you release, restrictions But, travel so marketing restrictions then, that speak investments. evidence, of because Aerospace, if SCT the to the kind of $X.X of to new first about (sic) you for already. have sales and products has been investment aggressively are

Craig Stewart

would what I increased more is for say seeing existing products. existing orders you’re that product,

We have new development not at marketed all the point. this at STC

currently ready that STC them. position And to and there to about out efforts to -- But where for a start those to those. closer we’ll the talk completion will of able as marketing to products, get so, go in we customers we’re not be

Clark Stewart

STC varies modify avionics, year. to a to the changing want that allows it, you approved a certificate get months three whatever electronics, the the is time we’re us understand that structure, to anything from it call type airplane takes the Do to STC supplemental you

by the to later really -- the comes And year so, probably spend fruition, by orders. all get at that’s $X we we time million time before a getting significant start the that we least

a time big there’s So, paperwork. all the lead long for

Unidentified Analyst

-- are of to prototype with you’re status for would production this Okay. you early-stage that And process in prototypes, far then, the say that investment? you along like how some close

Craig Stewart

Yes.

we when work. can of -- sure months and working are the paperwork we’ve start we within be we dependent STCs that We and then to on working X a month their in we of we’re their that STCs we’re all are A make process completion should probably two there’s -- on those can FA those of done, gets questions lot got answered. hope

So, this we’re point. at process in that

Unidentified Analyst

Okay.

the coming Am So, see next half it perhaps or not correctly? out these earliest until the be orders sounds products rolled year. in getting this would like maybe I fiscal year fiscal to we’d start of reading these back that for and

Craig Stewart

Yes.

too pretty that on typical that’s R&D I annual amount is I spend accurate. an us understand basis. pretty that for think And of

So from basis. that say of an that you forward, spend annual of can expectation going it R&D expect an on will would kind I

that’s just kind And the historically, back the new both to we’re business STCs part sure it’s of products of adding things the developing it’s of products, Looking old different of kind and been. maintaining -- well. is current the where those it and models, that maintenance as making

Unidentified Analyst

it. COVID-related forbearance conclusion, that were missed or may only, there that. filings, wondering, SBA or the ask hear any got just Well, a I’m kind loan more didn’t couple glad the forgiveness call terrific loan if curious the any saw a been I was more couple I’m then, coming could have I’ll that yes, your it, I I And corporate is news. in level, that I which subsidies. could to see the maybe are granted, a has -- other of SBA if questions. Yes, if to COVID-related… I ask well, at I’m

Clark Stewart

is it. That That is was the we only have that COVID-related loan. that thing

Operator

Rebotsky, Management. And Instructions] from we [Operator question have Asset Sam SER another

Sam Rebotsky

or anything avionics? like there that’s casino a that it’s looked you’ve at you Yes. bid -- at or the available Has to make been expanding, in been whether that any looking for? Have acquisitions the you’d

Craig Stewart

this is that we’re for point businesses say. anything looking or that’s But imminent, we now, this say out even that and always would looking. found right it that anything we haven’t At seriously I we’re our -- imminent things out this we at would always But we’re that point, point. haven’t At make with would is seen fit something considering that sense.

Sam Rebotsky

you On acquire casino anything like that become you or avionics have might the aware heard merge side, anything of? to the the or the from casino, you it’s that whether people reverse or

Craig Stewart

buying about recently. inquiries no had business We’ve pieces here our any of

Sam Rebotsky

forward increase your Okay. the something price. to will stock Hopefully, business, Thank could you. which increase go

you. Thank Okay.

Craig Stewart

Thanks, Sam.

Clark Stewart

Thank you. I appreciate the questions.

Operator

no have in we queue And this further time. questions at

David Drewitz

closing any statements. Stewart, Mr.

Clark Stewart

You bet. I’m excited about where we’re going.

think operating are to capacity Aerospace I doing restrictions in economic a lifted the normal more side, good figure we casino out well. capacity. pretty under conditions I much the we’re in year. we with think If get how we to market working the we And forward on and all try get area, we’re have the going get a conditions should very have good and side,

Thank about am Drewitz. We finishing, very we in appreciate your interest So, appreciate for am I Butler Thank Mr. excited that. much National all time. I you. and your you Corporation. questions, your

David Drewitz

for And All have you, great right. joining. a Thank everybody, the rest of week.

Operator

This conference concludes for call. you Thank attending. today’s

Butler National (BUKS) 20 Jul 212021 Q4 Earnings call transcript