Butler National (BUKS) 18 Jul 222022 Q4 Earnings call transcript

Good morning, ladies and gentlemen. Today is Monday, July 18. And welcome to the Butler National Corporation Fourth Quarter Fiscal Year End 2022 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. leaders Stewart, are Stewart, President Aerospace call Options Drewitz, President Your Group. Clark Communications; and Instructions] for David today Creative of [Operator CEO; Craig the like over now would turn I to to Mr. call Drewitz. David Mr. begin. may you Drewitz,

Thank you and morning to everyone. good

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

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

Stewart, all Mr. to turn Clark yours. am that with Stewart. call the going So over completed, I to it’s Mr. statement

as us need here to of you the $X.XX for And earnings can share it’s year go everyone of risk you and you compared share we previous that. for couple would Butler know this economy, those going as year, of to tell, this we’re had really We to I factors all you, Mr. years National’s thank read in a got in caution we’ve how that to year next a you great perform. proud Thank we the $X.XX sure morning don’t Drewitz. end XX-K. a discuss there all joining in into

other and non-reoccurring XX-K The of of have that we we first all, years aware loan in we to two paid recognize this of a employees thing be the that PPP only couple items we ago. $X of got income that the million need is,

happened, recognize So, that is that we -- the when revenue. was and eventually forgiven

is and favorable more items casino. one BCS our The the course, of BHC to we the XX% from imagined. than Those us buyout the other or of income ever Development are now as two partner know, of BHC you Development, had much

We’ve of We’ve important they’ve refreshment airplane ranged what income and part can some airplanes, purchase looking to So prospective at is done from earned of avionics miscellaneous repair the year. this you work see one we paperwork. at signed companies and Revenues to agreements the to we’re service both basically million. million to running airplane just related $X from some some charter and looking the airplane products and company. some $XX to avionics non-disclosure and

the We sure make that into to knew I before do have to everyone details the we just not committed that anything. of got wanted XX-K.

$XX.X So, $XX.X about million income of the compared year having million, previous to now a million the said $XX.X that, an year and at for looking ago. of revenue million, year operating we’re $X.X the to compared

assets total at million. right are $XXX Our

equity $XX stockholder million debt. And We about $XX in is million. -- have our $XX

and $X.X million kind on So summary this the that’s that. million year. We’ve of development product spent of about $X.X last year

where you comes highlights product event as Aric, you cover some probably help the from. the Craig, line of we’ve you you real as be to to we’re business. Aerospace got it. feel on business want can those to and and The -- business, in business you do to need as need to that continue the that. segment in that do like That’s because long continue will airplane an sport We ongoing and as enhance

go Craig, ahead. So,

XX%, gun All avionics, right. The of majority increase in majority was increase $X.X that Tempe, of had Aerospace Arizona in a that we our revenue with were up million aircraft or which out the controls.

last had business down was bit that pretty we Avcon a but in little was, year a Our over the year, last year. at good Modification

pretty well. So to stout it continues moving be a year. Everything was up pretty against

into We running chain supply some out issues are in Arizona.

situations good think handle got backlog inflationary with and dealing year. as obviously, on costs. $XX about we’ve last most think we’re million worked $XX those, -- million, is I well. strong, compared those pretty of But with we’re we’ve to I through pretty a The

I think that the backlog million we’d year seen. last was $XX ever biggest

We’re any at have comments? you $XX is pretty backlog. a additional million now, strong do Aric, which

No.

coming the is I over Europe think really the now is fire ground all going most on that’s of right towards And our right or on air. fire Ukraine. the with detection business moving strong around from in protection now

driving kind that’s So what’s it. of

Okay.

That days you. in here at of at Yes. work backlog Avionics Avcon about Olathe. XXX Butler Thank and is and Tempe,

two-thirds continuing So that’s course, the of three-fourths to year, we about is to add Aric, that speak. to of as and

because $XX.X engineering shorter days. retail the we’re the backlog much That’s business the as the did it’s PPP, million. $X $XX Services Professional casino. not far the at and a out increase time got you XX% big if the that’s where casino, and million for services business take in X.X from $XX.X and at As about million, even a you the million to

great job is casino really that’s So The out there. a good. doing

in situation the be The then fall battery and course, to sometime Johnson here accepted. into Dodge City, business business appears new County, in in well Panasonic. of starting there new coming out in plant for Western coming there’s in the know, there’s here you Kansas, from as We’re

future on revenue, products and optimistic opportunities course, all this So in there’s new country the management, our and lot participate are we’re business part increasing increasing intend about focused activity and of of and a and to of we profit. in employees that really developing

faster notice we that the Mr. than up various wraps our that I are places we slightly and and reduce them take have Drewitz, places. think, You’ll actually my questions sales, have expenses things like sales expanse if in certain maybe expenses to some comments increased because relative in down should we did the now.

Excellent.

Let’s and Operator? go ahead open all to questions. up

[Operator Instructions]

questions. No

We Keith do Private sir. Vickers a Mr. Go sir. from have one, ahead, -- who’s [ph] Investor.

morning. Good

Good morning.

that of to not Would year good recent you topic? impact talked and about the mind related A is thing sports fiscal is on in the legislation Kansas that commenting one been gaming.

tell to through help tell have with sports you which the a contract think operations, I the for be the are prepared like casinos casino go state documents there means can that come will four the we the us anything are to up supposed in of state. really that. I books comment, that going all the to we the can’t I you what Well, revenue or is and

Reedy on also assisted. state? with do have to the We want you she Mr. have [ph], worked describe what

Yeah.

to assist We’re with betting. three Kansas being access able really with sports to able We’ve different to pleased be entities. partnered now

press going will noticed third to Kings a in the soon and releases be partner Draft We with partner. online announcing you Bally’s as probably are

manager It’s requirements regulations that’s wagering. and a to the sports through and to offer working Draft excited times. to background sorts as City. retail very The We’re all of Kings exciting or provide Dodge necessary are sports in Dodge to operate implement City regulators book diligently

may the previous and same recall be gaming, As betting. owns true state publications, operates you our the sports from in will all with Kansas,

We manage vendors. facilitate or will help that our through

up… follow A

Thanks…

from me. …

casinos to and you These your now relationships that soon Kansas two in same Okay. have be do the with those other relationships? to exclusive or have Yes. three. Are perhaps operations

No. the three exclusive State going. The that’s of Those us are for that all and we one have Kansas. three the up, coming for two all are signed

Okay. Thank you.

you. Thank

Any further questions?

Mr. We with Go have Invest ahead, Capital from Dan [ph]. another please. question Ives

and the plus Have Hi. offset or there of about division? discussed a price are in you’ve create reverse guys the $X offer spin-off options the dilution to And share tender considered liquidity issuances. other thought ongoing past other from range like a the at a split of you Dutch you’ve and stock

opportunities acquisitions? besides strategic So non-operational

know, just as point. not a a -- we tomorrow. might of that the mean reverse -- that about that we of But we’ve this split at talked split have reverse and years a change assumed my you reading doesn’t do shareholders they We that I think number for is

least So I think quarterly that basis we on at sure things a for -- and we so far fairly look a at minute. those a wait

a Just minute.

the far Okay, gets -- guard so But… dog excited.

Okay.

to be all the we two of shelf is Anyway that whether we thinking years. the been segments a XXXX for I’m status and the -- We but documentation about we yes, have supposed which or I guess, the a we do to out that company reverse it. or number years. it’s the on -- put XXXX, the as split go into split, got And thought way recession is, not,

think the I’m sure up we’ll of And to at sure I’d sense, a this out glad them makes that economy at than some but I go one that’s split point. I’m rather doing rather be coming point have in into two we a strong time, right not timing have be we here. real the appears that together. that

my that that’s answer think question. satisfies I don’t whether know there. I So the

a that decisive it’s you offer. this create you in shareholders own a the range I but as dilution. to at of And a at your sell. do a you that to something way I Have a place, and nature? legacy company, third And what be prices have in I’ve much is investment would was exit to and of effective people allow tender brought and a allow price you the offsetting where into Dutch buyback looked part before believe, know potential up good reasonable more

the -- Bally’s last days I days in or four the proposal. three Bally did I read just -- read

That’s right. Bally one. is doing

got to That’s paperwork I and mail, well, stock I happen thought, I read and own in better Because I the all Bally’s some the right. it.

I doing. So what now understand they’re

we I not have that’s good I a that agree. I and think But yet. think suggestion very at should doing yes. look that, considered We

value what well cash Terrific. to based you’ve those pay down Are -- work $XX a that like. your and year, of It million, additional going creating but liquidity. to I besides wrong, or flow you it could expectations down? you be besides acquisitions potential $XX to use looks of your very on what you’re that million that’s allowing are create cash lot this going backlog going said, But tends to probably, CapEx for? and debt for would bunch and a

Yes.

be down the paying will We debt.

to a in that another side a -- have certain the XXXX I about have million is, do next and believe XX about has stuff far We there’s we’re spend $X the and contract, so at, another to is And in housing going and going year as in the something $X forward required hotels amount to out which requirement that about there’s to that. going by to be year like money per capital investment. Dodge looking of gaming have to then of that it as end City of plus we’re we’re worry and million

we have go to we need that of plenty, lot that yes, we yes. increases So, will cash will And have have… places generate revenue, we a and the

Okay.

and shares I doing. though. agreement going I’m my that’s what sell see …Bally to not

of I Okay. mean, course…

But our…

out, idea want their you who …the own -- more? you and people shares then right, let you sell

It’s a our Yeah. Good thing. work. right. That’s trick. neat It’s

on organically both high like you the year company or over I’m revenues acquisition that. make sides Now organically were new in more based businesses? opportunities things and there an watermark a income this items the with business before make speaking new time was this the, hangar and can and more of one-time might the net And

I for. us probably memories of is as best have and year this it’s probably one it the any get. around -- can as But was and good really is think, I think don’t this our been a that good

as a and -- business in there’s both -- well as as so room well business, the as in Avionics and business. for more think there’s I growth Arizona Modification lot

can on seems So uptrend. I continuing grow an revenue that think those have to expand The that we’ve three businesses, all them. areas casino got be to we continue

So this I good a was year. think

XXXX hoping a fiscal that better We’re is year.

Terrific.

should will like economy it the revenue. and the one be is. continuing Just to We increase stay

M&A are the as opportunities, now an on there is or moving right opportunities front, M&A well, forward? that organic there feel Is casino

to up from guess book call sports can There’s book the him which for I the book. that way they be law I locations up Legion, a local that’s marketing sports got the it. remote we as sports know member describe to a location. provision, best in I American to could sports they Like, as a wanted happen a soon the book how you know, and marketing set set and

of XX casinos. four So each there’s we can I do the -- by those, some of the think way, for

would involved to that think other of So State you a you’re market if the the new reach a that happened, Kansas, more ours, have of operation as only sudden lot strong in three all very but might, casino not the with people probably see in aren’t and we in it today. going

Dan, I think…

Okay.

answer there out question, of your think possibly casinos. acquiring are I other -- to kind …to opportunities there

point. not our that We’re with radar themselves, I discussions is that interested be we’d this we’re them something something present at But wouldn’t say definitely on it’s -- as any in of opportunities it’s in.

because ill of you have like the the Great. buying would, the things your a among nice and Okay. as job parts of that out and create the Well, business, your and that. community very both partners building you that’s there’s But lot you investment operationally you of -- well. guys a said still will executing done dilution the and and

stock how about of moving thinking to believe you create participate could Dutch to more tender how abilities. thinking value we’d your -- to So, $X, about and present get the and and in we a above like business it maybe to that forward market the lot

you. So thank

Dan. you, Thank

support Thank you. Dan. exciting new and Any other questions? forward appreciate your Thank to We looking doing you, things. we’re and

There be further seems no to questions.

support for for coming as on. and Very you us Butler all at National. consider and spending and appreciate good. time everyone and to us far your so this your Thank recommendations out comments as We your do all morning with

your how So Bye. let thank know all much Appreciate very to feel. and help. you continue us you

Thank you, everyone.

you. Thank

today’s Corp. -- for National you concludes everyone conference This you. Butler Corporation thank Thank -- concludes call. This attending.