THROUGHOUT THIS ITEM 2 ALL NON TABULAR FINANCIAL RESULTS ARE PRESENTED IN THOUSANDS OF U.S. DOLLARS EXCEPT WHERE MILLIONS OF DOLLARS IS INDICATED.
Products. The products that the companies within this group design, engineer, manufacture, integrate, install, repair and service include:
? Aerodynamic enhancement products ? J.E.T autopilot products
? Cargo/sensor carrying pods and ? Provisions for external stores
? Electronic navigation instruments, ? Attitude heading reference systems
? Aerial photograph capabilities ? Extended tip fuel tanks
? Gun Control Units for Apache and ? Gun Control Units for land and sea
Architectural and Engineering Services. Companies in Professional Services provide licensed architectural, including commercial and industrial building design, and engineering services.
? Professional Services derives its revenue from (a) professional management
services in the gaming industry through Butler National Service Corporation
("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural,
engineering and management support services. Revenue from Professional
Services decreased 4% for the three months to $9.0 million at July 31, 2022
manufacturing, installing, servicing and repairing products for classic and
current production aircraft. Aerospace Products revenue decreased 25% for the
three months to $6.3 million at July 31, 2022 compared to $8.4 million at July
31, 2021. The decrease in revenue is primarily due to a decrease in aircraft
The following table presents a summary of our operating segment information for the three months ended July 31, 2022 and July 31, 2021:
Ended July 31, Percent of Percent Change (dollars in thousands)
Ended July 31, Percent of Percent Change (dollars in thousands)
? Revenue from Professional Services decreased 4% for the three months ended
July 31, 2022 to $9.0 million compared to $9.3 million for the three months
In the three months ended July 31, 2022 Boot Hill Casino received gross
receipts for the State of Kansas of $12.2 million compared to $12.6 million
for the three months ended July 31, 2021. Mandated fees, taxes and
distributions reduced gross receipts by $3.8 million resulting in gaming
revenue of $8.4 million for the three months ended July 31, 2022, compared to
a reduction to gross receipts of $4.0 million resulting in gaming revenue of
$8.6 million for the three months ended July 31, 2021. Non-gaming revenue at
Boot Hill Casino remained constant at $1.1 million for the three months ended
July 31, 2022, compared to $1.1 million for the three months ended July 31,
architectural services. Professional Services revenue excluding Boot Hill
Casino decreased 3% to $69 for the three months ended July 31, 2022, compared
? Costs of Professional Services increased 9% in the three months ended July 31,
2022 to $3.6 million compared to $3.3 million in the three months ended July
31, 2021. Costs were 41% of segment total revenue in the three months ended
July 31, 2022, as compared to 36% of segment total revenue in the three months
? Expenses increased 11% in the three months ended July 31, 2022 to $3.3 million
compared to $3.0 million in the three months ended July 31, 2021. Expenses
were 37% of segment total revenue in the three months ended July 31, 2022, as
compared to 32% of segment total revenue in the three months ended July 31,
? Revenue decreased 25% to $6.3 million in the three months ended July 31, 2022,
compared to $8.4 million in the three months ended July 31, 2021. The
decrease in revenue is primarily due to a decrease in aircraft modification
? Costs of Aerospace Products decreased 20% in the three months ended July 31,
2022 to $4.8 million compared to $6.0 million for the three months ended July
31, 2021. Costs were 76% of segment total revenue in the three months ended
July 31, 2022, as compared to 72% of segment total revenue in the three months
ended July 31, 2021. The decrease is directly related to the decrease in
? Expenses increased 38% in the three months ended July 31, 2022 to $1.9 million
compared to $1.4 million in the three months ended July 31, 2021. Expenses
were 30% of segment total revenue in the three months ended July 31, 2022, as
compared to 16% of segment total revenue in the three months ended July 31,
2021. The increase is primarily due to the stock award and cash compensation
Analysis and Discussion of Cash Flow
During the quarter ended July 31, 2022, the Company spent an additional $534 on the completion of its hangars in contruction in progress. At July 31, 2022, these new hangars have been reclassified from construction in progress to building and improvements on the balance sheet.
Critical Accounting Policies and Estimates
Revenue Recognition: See footnote 3 to the condensed consolidated financial statements.
Lease Right-to-Use: See footnote 13 to the condensed consolidated financial statements.
Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized over a seven year life. The legal life of an STC is indefinite.
We do not have any off-balance sheet arrangements.
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