Butler National Corporation's Strategic Share Buyback Initiative
Butler National Corporation Implements Stock Repurchase Strategy
Butler National Corporation, a prominent player in aircraft modification and gaming management, is taking significant steps to enhance shareholder value. Recently, the corporation announced the repurchase of 2.41 million shares of its common stock. This initiative showcases the company's confidence in its long-term growth potential.
New Stock Repurchase Program Launched
In conjunction with these buybacks, Butler National closed its previous stock repurchase program that concluded in 2016. The corporation has now established a new program with an authorization of $5 million, set to continue until April 2027. This strategic move is worth noting, especially as it allows the company to repurchase approximately 4.8% of its total outstanding shares amidst current market prices.
Managing Shareholder Interests
Jeffrey D. Yowell, Executive Chairman of Butler National, expressed that the board of directors places a high priority on stock repurchases. This decision is a clear signal of the management's commitment to enhancing shareholder value while navigating the financial landscape responsibly. The company aims to make repurchases primarily through private transactions, which can lead to more favorable outcomes for shareholders.
Financial Highlights of the Buyback
As of the end of a recent quarter, Butler National has disbursed $2.9 million for the shares repurchased, with a remaining obligation of $0.9 million due by year’s end. With the average cost per share repurchased standing at $1.51, the financial move is strategically aligned with the company’s market objectives. This prudent management of financial resources reflects a strong commitment to boosting shareholder returns.
Open Market Transactions Planned
Under the new repurchase program, the company intends to engage in open market transactions adhering to federal securities laws. Management has the discretion to dictate the timing and volume of shares repurchased, ensuring flexibility in response to market conditions. This adaptive approach enables the company to align its repurchase efforts with prevailing stock prices and market dynamics.
About Butler National Corporation
Butler National Corporation is engaged in the aviation and professional services sectors. The aerospace division focuses on the design, manufacture, and sale of structural modifications for a variety of aircraft, including the iconic Learjet and Textron Cessna models. In addition to its aerospace pursuits, the corporation operates FAA Repair Stations, solidifying its reputation as a leader in the aircraft services space. The professional services division manages a gaming facility that enhances entertainment options in its respective markets, showcasing the diversity of Butler National's operations.
Contact Information for Investors
For anyone interested in learning more about Butler National Corporation, please reach out to:
David Drewitz, Investor Relations
Email: david@creativeoptionscommunications.com
Phone: 972-814-5723
Additionally, inquiries can be directed to:
Mackenzie Giller, Operations
Email: gmiller@butlernational.com
Frequently Asked Questions
What is the purpose of Butler National Corporation's stock repurchase program?
The program aims to enhance shareholder value by repurchasing shares, thereby reducing the number of shares outstanding and potentially increasing stock price.
How many shares did Butler National Corporation repurchase?
The company repurchased 2.41 million shares of its common stock.
What is the average price per share repurchased by the company?
Butler National Corporation repurchased shares at an average price of $1.51 each.
Until when is the new stock repurchase program authorized?
The new program is authorized to run until April 2027, providing time for strategic share buybacks.
Who can investors contact for more information?
Investors can contact David Drewitz in Investor Relations or Mackenzie Giller in Operations through the provided email addresses.
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