SOURCE: BUTLER INTERNATIONAL, INC.

August 15, 2005 07:00 ET

Butler International, Inc. Reports First Quarter Results for 2005

Sales Exceed Prior Year by 11%; Reports First Quarter 2005 Earnings per Share of $0.03

MONTVALE, NJ -- (MARKET WIRE) -- August 15, 2005 -- Butler International, Inc. (NASDAQ: BUTL) announced today its financial results for the first quarter of 2005, and the filing of its Form 10-Q for the same quarter.

For the quarter ended March 31, 2005, the Company reported net income of $0.4 million, or $0.03 per share, compared to net income of $0.2 million, or $0.01 per share for the first quarter in 2005.

First quarter 2005 sales were $64.1 million, a 10.7% increase over the $57.9 million reported for the first quarter of 2004. This is the sixth straight quarter of year over year quarterly sales growth. Focusing on satisfying key customers' needs is a cornerstone of Butler's strategy. Sales to the top ten (10) customers accounted for approximately 71% of sales in the first quarter of 2005, an increase from 67% during the first quarter of the prior year.

First quarter 2005 gross margin and operating income both increased compared to the first quarter of 2004. Gross margin for 2005 was $10.8 million, an increase of 11.7%, or $1.1 million compared to 2004. Gross margin as a percent of sales expanded slightly in 2005 to 16.9%, up from 16.8% in 2004. The increase in gross margin was driven by higher sales and a focus on higher margin business. Operating income for 2005 was $1.7 million, an increase of 40.1%, or $0.5 million compared to 2004. Operating income as a percent of sales expanded in 2005 to 2.7%, up from 2.1% in 2004. The increase in operating income resulted from gross margin growing faster than selling, general, and administrative expenses.

First quarter 2005 sales and operating profits from the Company's two largest segments exceeded the prior year's first quarter results. Technical Services sales were 13.8% higher and profits were 2.6% higher when compared to the first quarter of 2004. A large portion of the year on year sales increase came from work performed in the aerospace, defense, and heavy manufacturing equipment sector. Profit growth was not as strong as sales growth as a result of opening new offices and adding employees to capture future growth opportunities. The Telecom Services segment exceeded last year's sales and profit results by 10.0% ($1.6 million) and 133.0% ($0.7 million), respectively. The increased profitability was principally due to a combination of increased volume at a key customer. The Information Technology Services revenues were 9.2% below 2004 primarily as a result of a sales decline at a key customer more than offsetting increased sales than other customers. Information Technology Services operating profit was 14.7% below that of the prior year. The profit decline at Information Technology Services was due to lower sales and expenses incurred to expand the Company's India operation in order to capture future growth.

Edward M. Kopko, Chairman and Chief Executive Officer, commented, "The first quarter of 2005 was an exciting continuation of year on year improvements for Butler. Our formula of quality-oriented, client-focused services continues to be successful. We look forward to continued strong earnings growth for the balance of 2005."

About Butler International

Butler International, Inc. is a leading provider of TechOutsourcing services, helping customers worldwide increase performance and savings. During its 58-year history, Butler has served many prestigious companies. Butler's current client list includes BellSouth, Boeing, Caterpillar, Merrill Lynch, Nokia, Nortel Networks, Northrop Grumman, United Defense, Verizon and more. If you would like to find out more about Butler's value-added services, visit us on the web at http://www.butler.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature as such it is based upon certain assumptions and is subject to various risks and uncertainties as set forth in the Company's filings with the Securities and Exchange Commission. Such risks and uncertainties may not be controllable by the Company. To the extent that these assumptions prove to be incorrect, or should any of these risks or uncertainties materialize, the actual results may vary materially from those that were anticipated.

                        BUTLER INTERNATIONAL, INC.
              CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
                  (in thousands except per share data)
                              (unaudited)

                                            Quarter Ended
                                               March 31,
                                         2005             2004
                                        ------           ------
Net sales                             $ 64,065         $ 57,912
Cost of sales                           53,217           48,201
                                        ------           ------
  Gross margin                          10,848            9,711

Depreciation and amortization              372              493
Selling, general and administrative
 expenses                                8,740            7,979
                                        ------           ------
  Operating profit                       1,736            1,239

Interest expense                          -993             -995
                                        ------           ------
  Income from continuing operations
   before income taxes                     743              244

Income tax expense                         310               92
                                        ------           ------
  Net income                               433              152
                                        ======           ======
Basic earnings  per share:            $   0.03         $   0.01
                                        ======           ======
Diluted earnings  per share:          $   0.03         $   0.01
                                        ======           ======

Average number of common shares
 and dilutive common share equivalents
 outstanding:
Basic                                   10,255           10,218
                                        ======           ======
Assuming dilution                       13,720           12,998
                                        ======           ======



                        BUTLER INTERNATIONAL, INC.
             SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
                             (in thousands)
                               (unaudited)

                                        March            March
                                         2005             2004
                                        ------           ------
Accounts Receivable, Net              $ 39,359         $ 36,802
Total Current Assets                    48,338           46,313
Accounts Payable and
 Accrued Expenses                       19,672           19,061
Working Capital                         28,666           27,252
Total Assets                           106,523          105,648
Total Liabilities                       84,826           88,422
Stockholders' Equity                  $ 21,697         $ 17,226

Certain prior year balances have been reclassified to conform to
the current year's presentation.
Mindpower for a Changing World(SM)
World Headquarters
110 Summit Avenue
Montvale, NJ 07645
(201) 573-8000
www.butler.com

Contact Information

  • CONTACT:
    Tom Considine
    (201) 476-5404