Butler National Corporation Announces Second Quarter Fiscal Year 2020 Financial Results.

OLATHE, Kan: Butler National Corporation (OTCQB: BUKS), a leader in the growing global market for aircraft structural modification, maintenance, repair and overhaul (MRO) and a recognized provider of gaming management services, announces its financial results for the second quarter fiscal 2020 ended October 31, 2019.

Clark Stewart, President & CEO, Butler National Corp., will be leading the call and discussing results of the second quarter, the status of new and existing orders, gaming activities and an outlook on the balance of fiscal 2020.

Historical selected financial data related to all operations:

Quarter Ended October 31

Six Months Ended October 31

(In thousands)

(In thousands)

2019

2018

2019

2018

Revenue

$

19,437

$

15,297

$

36,453

$

28,701

Operating Income

4,227

1,818

7,748

2,718

Net Income (Loss)

2,230

1,721

4,291

2,230

Total Assets

95,267

48,902

95,267

48,902

Long-term obligations

44,699

4,709

44,699

4,709

Stockholders' Equity

38,807

34,344

38,807

34,344

Weighted Average Shares - Diluted

68,104

63,820

68,234

64,261

Earnings Per Share

0.03

0.03

0.06

0.03

New Product Research and Development Cost

783

302

1,180

620

Management Comments

"The quarter-ended October 31, 2019 continued a strong start to fiscal year 2020. Revenue increased 27% to $19.4 million in the three months ended October 31, 2019, as compared to $15.3 million in the three months ended October 31, 2018. The increase in revenue reflects an increase of 52% in Aerospace Products revenue and an increase of 3% in Professional Services revenue. We continue to focus on growth in international markets, solutions for regulatory mandates and the development of new supplemental type certificates ("STCs"). This includes significant efforts in South America, Europe, Africa, and Asia.

Second quarter fiscal 2020 net income was $2.2 million compared to a net income of $1.7 million in the second quarter fiscal 2019. Second quarter fiscal 2020 operating margin was 21.7% compared to 11.9% in second quarter fiscal 2019. We continue to work to improve efficiencies in our implementation, operational processes, and controlling general and administrative expenses.

During the three months ending October 31, 2019, we invested approximately $783,000 in projects focused on the development and acquisition of new products. We feel this expenditure for design and development engineering, testing, and certification of new products is required to grow Aerospace Products and help stabilize our long-term...