Butler National Corporation · OTC:BUKS
Butler National — Shareholder Meeting (November 2016)
30 slides from Butler National's shareholder meeting presentation, Nov 8, 2016
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Butler National Corporation Tuesday – November 8, 201611:00 AM – Hilton Garden Inn – Olathe, KS
Slide 2: Fiscal Year 2016 Annual Meeting Agenda
Fiscal Year 2016 Annual Meeting of Shareholders Agenda CALL TO ORDER Lunch IS AVAILABLE BUSINESS MEETING ADJOURN Declaration of a Quorum RESULTS OF VOTING MANGEMENT discussion 7 6 5 4 3 2 1 November 8, 2016© Butler National Corporation
Slide 3: Matters for shareholder vote
Elect One Director for a Three (3) Year TermBradley K. Hoffman Ratify Selection of Auditors for Fiscal Year 2017RBSM, LLPAdvisory Vote on Compensation of Named ExecutivesApprove and Adopt the 2016 Equity Incentive Plan Annual Meeting of Shareholders Securities and Exchange Commission November 8, 201
Slide 4: Voting Tabulation and Results
VOTING TABULATION AND RESULTS November 8, 2016 © Butler National Corporation
Slide 5: Fiscal Year 2016 Annual Meeting Agenda
Fiscal Year 2016 Annual Meeting of Shareholders Agenda Lunch IS AVAILABLE ADJOURN RESULTS OF VOTING MANGEMENT discussion 7 6 5 4 November 8, 2016© Butler National Corporation
Slide 6: Our Offices
Corporate – Avionics/Defense – Aircraft Modifications Our Offices Butler National Corporation has an office and manufacturing operations at 4654 South Ash Ave., Tempe, Arizona in a 16,110 square foot owned facility. TEMPE, ARIZONA OLATHE, KANSAS Avcon Industries, Inc. is located at 714 North Oliver
Slide 7: Business Segments
AEROSPACE PRODUCTS Aircraft Modification (Aircraft Modifications, Aircraft) Classic Aviation Products Avionics (Avionics) Defense Contracting & Electronics Classic Aviation ProductsPROFESSIONAL SERVICES Management Services (Gaming, Corporate) Indian Gaming Management Kansas State Owned Gaming - KELA
Slide 8: Aspects of Market International
Aspects of Market INTERNATIONAL Butler National Last 5 years 34 International Markets ALGERIAAUSTRALIABOLIVIABRAZILBURKINA FASOCANADACHILECOLOMBIACOSTA RICADENMARKEL SALVADORETHIOPIA FRANCEGERMANYHONDURASICELANDINDIAINDONESIAISRAELITALYKAZAKHSTANLUXEMBURGMALAYSIA MEXICONICARAGUAPANAMAPERUREP OF CHIN
Slide 9: Avcon Aircraft Modifications – Stage 3 Noise
Avcon Industries, Inc. – Newton, Kansas Aircraft Modifications – Stage 3 Noise The Avcon Noise Suppressor STC permits Learjet 20 series aircraft to comply with 14 CFR Part 25 and Part 36 Stage 3 noise limits November 8, 2016 © Butler National Corporation Compliance Deadline December 31, 2015
Slide 10: Avcon Industries Aircraft Modifications
Avcon Industries, Inc. – Newton, Kansas Aircraft Modifications November 8, 2016 © Butler National Corporation
Slide 11: Avcon Industries Aircraft Modifications
Avcon Industries, Inc. – Newton, Kansas Aircraft Modifications November 8, 2016 © Butler National Corporation
Slide 12: Product Support for Legacy Aircraft
Avcon Industries, Inc. – Newton, Kansas Product Support for Legacy Aircraft The Avcon Noise Suppressor STC permits Learjet 20 series aircraft to comply with 14 CFR Part 25 and Part 36 Stage 3 noise limits Product Enhancements Diminishing Manufacturing Sources Engineering Services Keep Learjets airwo
Slide 13: Butler Avionics, Inc.
Butler Avionics, Inc. AVIONICS NEW AND USED PRODUCTS - INSTALLATIONS - SERVICE November 8, 2016 © Butler National Corporation Lear 24, 25, 28, 31, 35, 36, 55 Lear 24, 25, 28, 31, 35, 36, 55 Cessna 421 TBM 700
Slide 14: Butler National Defense – Tempe, Arizona
BUTLER NATIONAL Apache/Longbow & Blackhawk HelicoptersGun Control, Testing Equipment, Cabling Tempe, Arizona November 8, 2016 © Butler National Corporation
Slide 15: Boot Hill Casino & Resort
BOOT HILL CASINO & RESORT Dodge City, Kansas In fiscal 2015 Boot Hill Casino received gross receipts for the State of Kansas of $40.4 million compared to $40.5 million in fiscal 2014.Mandated fees, taxes and distributions reduced gross receipts by $13.6 million resulting in gaming revenue of $26.8 m
Slide 16: Forward-looking statements
The statements in this presentation may constitute "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements can often be identified by the use of forward-looking terminology, such as "could," "should," "will," "
Slide 17: Sources of funds for BHCMC facility lease option
We are considering 4 sources of funds.Goal to have initial documents from 1 of 4 potential financial institutions in 4-8 weeks and closing shortly thereafter.Closing depends on many factors, including Regional Economic Conditions in the market area such as (a) Gas and Oil prices, (b) Grain prices an
Slide 18: 2016 Equity Incentive Plan
2016 Equity Incentive Plan replaces expired Incentive PlansBoard of Directors (BOD) believes that BNC should have retention program for all levels of employeesCompensation Committee of BOD makes incentive award final determinationAward is for performance and retention SEC Form 8-K filed Today, Nov 8
Slide 19: 2016 Equity Incentive Plan – Board considerations
Board of Directors considered the terms of the proposed Incentive Plan, discussed the merits of each provision and weighed several competing factors, including the lack of an existing incentive plan, the potential disruption to the business from the loss of key employees, the retention effect of lon
Slide 20: Make Gaming a public company
The BOD is exploring separating the gaming operation of the Company into a separate public company. Although there can be no assurances that this separation will take place, the separation will not take place until after the close of the exercise of the option to purchase the gaming property. SEC Fo
Slide 21: Economic Drivers for Business Segments – Gaming
Services – Gaming – BHCMC (Boot Hill) Gas and Oil prices worldwide Weather West Texas north to Dakotas Grain prices worldwide Cattle prices worldwide Patron Attitude toward future of markets Job satisfaction of BHCMC team members SEC Form 8-K filed Today, Nov 8, 2016 Certain Economic Drivers for Bus
Slide 22: Economic Drivers for Business Segments – Aerospace
Aerospace – Avcon – BAI – TempeGas and Oil prices worldwideSpecial Mission – Worldwide stabilityGlobal Government InterestsRefreshment of current aircraft fleetsRegulatory/Air Traffic Control MandatesTechnical Advances in Avionics Overall Attitude toward discretionary income/spending SEC Form 8-K fi
Slide 23: Purchase of the minority interest in BHCMC
1st – Complete BHCMC option to buy Facility Lease described in prior slide2nd – Negotiate a workable purchase and sale agreement at fair market value for the minority interest.3rd – There can be no assurance that the transactions will happen in this sequence or at all. SEC Form 8-K filed Today, Nov
Slide 24: Insider purchase and sale of Common Stock
Not possible when sale or purchase would violate laws against insider trading.Section 10b of the Exchange Act and Rule 10b-5 thereunder makes deceptive activity pertaining to the purchase or sale of a security unlawful.Unlawful insider trading occurs when a person uses material non-public informatio
Slide 25: Incentive 401(k) Match with BUKS stock or cash
Retirement Plan is a requirement for hiring and retention of employees in BNC business segmentsMatch encourages participation in the planStock match encourages loyalty to teamCash match reduces dilution but limits ability to fund product development and other Company needs SEC Form 8-K filed Today,
Slide 26: Outlook by business segment – Aerospace
Aerospace – Avcon – BAI – TempeBacklogs are strong through spring 2017Refreshment of Learjet 30 and 60 series is happening for Special Mission fleetsRegulatory Mandate related to ADS-B (in/out)World wide market is asking for more surveillance and defense support SEC Form 8-K filed Today, Nov 8, 2016
Slide 27: Outlook by business segment – Services
Services – BHCMC (BHCR) and otherTeam members have ownership attitude Five year plan by month shows growthMarketing approach is resulting in actual revenue and profit growth over last yearNeed extension of contract in 8 yearsNeed to plan for competition from Oklahoma SEC Form 8-K filed Today, Nov 8,
Slide 28: Advisory vote on Executive Compensation
Management is recommending to Compensation Committee of the BOD:Engage an independent compensation consultant to review the current compensation levels and programCompensation should be competitive with industries in each business segmentThere are no planned Management retirements in the near future
Slide 29: Lunch and Questions
LUNCH and Questions November 8, 2016 © Butler National Corporation
Slide 30: Thank You!
THANK YOU! November 8, 2016 © Butler National Corporation
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