BUTLER NATIONAL CORPORATION ANNOUNCES 1ST QUARTER FISCAL YEAR 2024 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 first quarter fiscal 2024 ended July 31, 2023.

Historical selected financial data related to all operations:

Quarter Ended July 31

(In thousands)

2023

2022

Revenue

$

17,185

$

15,304

Operating Income

$

1,137

$

1,625

Net Income

$

719

$

431

Total Assets

$

105,000

$

103,966

Long-term obligations

$

40,574

$

45,611

Stockholders' Equity

$

42,216

$

41,747

Weighted Average Shares - Diluted

75,199

76,456

Earnings Per Share

$

0.01

$

0.01

New Product Research and Development Cost

$

828

$

631

Management Comments

The quarter ended July 31, 2023, was a positive quarter. Both the Professional Services and Aerospace Products segments experienced increases in revenue. Revenue increased 12% to $17.2 million in the three months ended July 31, 2023, as compared to $15.3 million in the three months ended July 31, 2022. The increase in revenue reflects an increase of 28% in Aerospace Products revenue and an increase of 1% in Professional Services revenue. Our Aerospace Products segment continues to focus on unique new opportunities in both the domestic and 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 $701 of quarterly revenue for the Professional Services segment.

First quarter fiscal 2024 net income was $719 compared to a net income of $431 in the first quarter fiscal 2023. First quarter fiscal 2024 operating margin was 7% compared to 11% in first quarter fiscal 2023. We are upgrading some facilities to accommodate the aircraft modifications and continuing to make adjustments to wages to remain competitive. We continue to review operational processes and methods to control general and administrative expenses.

During the three months ended July 31, 2023, we invested approximately $828 in the development and acquisition of new products. This expenditure for design and development engineering, testing, and certification of new products is the foundation for Aerospace Products and is essential to our long-term revenue and profits.

"We are positive about the remainder of fiscal 2024. While our cash position decreased $7.8...