Butler National Corporation (BUKS) May 12 PR

PRESS RELEASE: Executive changes and new head office

See my original investment case on BUKS here: Butler National Corporation (BUKS)
See my second article on BUKS here: Butler National Corporation (BUKS) Q3 Earnings

https://www.otcmarkets.com/filing/html?id=16647073&guid=mYu-kqT8myvCJth#ex_519557_htm

With this latest move, both Craig and Clark Stewart are stepping back from operations.

Craig and Clark had significant salaries, $1.3M combined, and as far as I can tell they haven't hired anyone to replace them; this will result in BUKS future profitability increasing by $1.3M annually.

One headwind in the near-term is that Clark was "terminated … for good reason" so we will likely see significant one-time severance costs, not in the next quarter but in the quarter ended July 31, 2023 (FY24Q1). $1.3M in severance was charged for Craig's departure in FY23Q3 (discussed in my last post: BUKS Q3 Earnings), so I expect Clark's severance payment to be higher. 

These one-time severance costs will be recouped through the salary savings over the next few years.

In the same press release they mentioned that BUKS moved their headquarters to a new consolidated location; time will tell if they realize any operational cost savings / efficiencies.

See my next article on BUKS here: Butler National 10-K (Year-ended April 30)

Disclaimer: As of May 13, 2023, I am a shareholder of Butler National Corporation at an average cost base of $0.70. My plan at the time of writing is to hold these shares long-term, but I may have sold my position by the time you’re reading this. This is not a purchase recommendation and I can only hope that I’m right on 3 out of 5 (60%) investments I make — this could be one I’m wrong on. Please do your own research and double-check my data & findings.