BUTLER NATIONAL CORPORATION ANNOUNCES THIRD QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS.

OLATHE, Kan: Butler National Corporation (OTCQB: BUKS), a leader in the growing global market for aircraft modification, maintenance, repair and overhaul (MRO) and a recognized provider of gaming management services, announces its financial results for the third quarter fiscal 2023 ended January 31, 2023. The Company will defer the conference call for the quarter to a planned fiscal year end results call following the filing of the Company's Form 10-K.

Historical selected financial data related to all operations:

Quarter Ended January 31

Nine Months Ended January 31

(In thousands)

(In thousands)

2023

2022

2023

2022

Revenue

$

20,464

$

17,618

$

55,093

$

54,012

Operating Income

$

3,385

$

4,402

$

9,012

$

13,167

Net Income

$

1,977

$

2,684

$

5,091

$

8,740

Total Assets

$

111,077

$

98,076

$

111,077

$

98,076

Long-term obligations

$

43,172

$

46,201

$

43,172

$

46,201

Stockholders' Equity

$

46,446

$

38,415

$

46,446

$

38,415

Weighted Average Shares - Diluted

76,664

75,343

76,634

75,358

Earnings Per Share

$

0.03

$

0.04

$

0.07

$

0.12

New Product Research and Development Cost

$

578

$

659

$

2,335

$

1,855

Management Comments

The quarter-ended January 31, 2023, was a positive quarter. Both the Professional Services and Aerospace Products segments experienced increases in revenue. Revenue increased 16% to $20.5 million in the three months ended January 31, 2023, as compared to $17.6 million in the three months ended January 31, 2022. The increase in revenue reflects an increase of 25% in Aerospace Products revenue and an increase of 8% in Professional Services revenue. Our Aerospace Products segment continues to focus on new opportunities in international markets, obsolescence solutions and the development of new Federal Aviation Administration supplemental type certificates ("STCs"). Sports wagering became legal in the State of Kansas on September 1, 2022, and resulted in a new revenue source of $1.2 million for the Professional Services segment. In addition to the online platform, we initially opened a temporary physical sports book and now feature a permanent DraftKings branded physical sports book at Boot Hill Casino.

Third quarter fiscal 2023 net income was $2.0 million compared to a net income of $2.7 million in the third quarter fiscal 2022. Third quarter fiscal 2023 operating margin was 17% compared to 25% in third quarter fiscal 2022. We continue to review operational processes and methods to control general and administrative expenses.

During the...