Company Summary: Butler National Corporation

Business Overview

Butler National Corporation (“BNC”) is a diversified holding company with two primary operating segments:

1. Aerospace Products

• Core Activities:
  • Designing, engineering, manufacturing, installing, repairing, overhauling, servicing, and distributing aerostructures, aircraft components, avionics, accessories, subassemblies, and systems.
  • Focusing on modifications and special mission electronics for aircraft and defense-related articles.
  • Operating FAA-approved Repair Stations.
• Clients and Products:
  • Serve commercial, military, and government aircraft.
  • Products include aerial surveillance systems, navigation/flight displays, aerodynamic enhancements, crew work stations, fuel systems, radomes, cargo/sensor pods, and specialized electronics.
  • Focus on aircraft models including Learjet, Beechcraft, King Air, and Cessna turboprop.
• Regulatory Certifications:
  • Obtain FAA Supplemental Type Certificates (STCs) and Parts Manufacturer Approvals (PMAs).
  • Develop new STCs and derivatives; recognized for special mission configurations.

2. Professional Services

• Core Activities:
  • Management of the Boot Hill Casino and Resort in Dodge City, Kansas.
  • Operations include approximately 500 slot machines, 15 table games, a restaurant, and a sportsbook.
  • Managed under a contract with the Kansas Lottery.
  • Previously provided architectural services (terminated January 2024).
• Recent Developments:
  • Managed sports wagering via a platform with DraftKings, including an in-casino sportsbook launched February 28, 2023.
  • Sports wagering became legal in Kansas on September 1, 2022.
• Land and Facilities:
  • Casino complex at the Dodge City location includes land and buildings totaling around 60,000 sq ft.
  • Also owns multiple facilities in Kansas for aviation and other operations.

Financial Highlights

• Revenue:
  • Fiscal Year 2025: $84.0 million (up 7% from $78.4 million in 2024)
• Net Income:
  • Fiscal Year 2025: $12.6 million
  • Fiscal Year 2024: $12.5 million
• Earnings Per Share:
  • 2025: $0.19
  • 2024: $0.18
• Employees:
  • As of April 30, 2025:
    • Total employees (excluding gaming staff): 147 full-time, 3 part-time
    • Staff at Boot Hill Casino: approximately 192 full-time and 44 part-time.
  • As of June 23, 2025:
    • Total staff increased slightly to 151 full-time, 4 part-time.
    • Boot Hill Casino had 195 full-time and 46 part-time employees.

Customer and Revenue Concentration

• Aerospace Segment:
  • Derives a significant portion from a few major customers.
  • Fiscal 2025: 25.4% of revenue from top five customers.
  • One customer accounted for 32.4% of accounts receivable.
  • Fiscal 2024: 28.5% from top five customers.
  • One customer represented 42.5% of accounts receivable.
• Gaming Segment:
  • Relies on regional patronage and out-of-town visitors.
  • The casino’s performance is influenced by the local economy, which depends on agriculture, meat processing, and oil/gas industries.

Operations & Facilities

• Aerospace Facilities:
  • Corporate HQ and manufacturing in New Century, Kansas.
  • Additional operations in Tempe, Arizona, and Excelsior Springs, Missouri.
  • Recent expansion in Newton, Kansas for aircraft modification fabrication.
• Gaming Facilities:
  • Located in Dodge City, Kansas.
  • Facilities include gaming, dining, entertainment, and sports wagering.
• Regulatory & Certification:
  • FAA regulation and certification are critical.
  • Gaming licenses are maintained with Kansas state authorities.

Summary

Butler National Corporation operates in two distinct industries:

• The aerospace division provides high-precision aerospace modifications, systems, and defense electronics for commercial, government, and military clients.
• The professional gaming division manages a casino, provides associated management services, and operates sports wagering platforms in Kansas.

The company has approximately 67.2 million shares outstanding as of June 23, 2025. Its market value held by non-affiliates as of October 31, 2024, was approximately $87.9 million, with a stock trading around $1.30 to $1.52 per share.