Butler International, Inc. Reports First Quarter 2001 Results

Announces Aggressive Cost Reduction Plan

To Position the Company for Future Growth and Profitability



Apr 24, 2001, 01:00 ET from Butler International, Inc.

    MONTVALE, N.J., April 24 /PRNewswire Interactive News Release/ --
 Butler International, Inc. (Nasdaq:   BUTL) announced today that it had incurred
 an after-tax loss of $2 million, or $.18 per diluted share for the first
 quarter of 2001.  Revenues in the period were $101.1 million, up 5% over the
 $96.4 reported in the same quarter of the prior year.  The current year
 results contrast with a profit of $1.8 million, or $.16 per diluted share in
 the 2000 quarter.  As previously expected, BlueStorm, the Company's enterprise
 network consulting business, reported losses for the quarter.  BlueStorm's
 $3.1 million pre-tax loss substantially contributed to the Company's overall
 results.
     The Company also announced an aggressive, company-wide cost reduction plan
 that will result in approximately $20 million in annualized cost savings
 throughout the organization with BlueStorm cost reductions contributing
 significantly to the total.  Absent second quarter restructuring costs
 estimated to be up to $2.5 million, the Company expects to be profitable in
 the upcoming quarter.  These costs will include the elimination of excess
 capacity, reduction of both staff and service delivery personnel in all of its
 business units, the closing of certain unprofitable locations and terminating
 unprofitable contracts and activities.  These actions are intended to ensure
 ongoing profitability while also improving cash flow.
     The first quarter's results reflect the disappointing performance of
 BlueStorm and severance costs of approximately $220,000 reflecting the initial
 cost reductions effected by management.  The BlueStorm loss was substantially
 more than had been expected, the result of a deterioration in utilization
 rates caused by lower than anticipated demand for its services.  By way of
 comparison, BlueStorm had recorded a small profit in the first quarter of
 2000.  Operating results excluding the BlueStorm loss and severance costs were
 essentially break-even in the first quarter, which is historically the weakest
 quarter of the year.
     Addressing the results of its other operations, the Company reported that
 its solution oriented business revenue increased by 23% over the same quarter
 of the prior year, while staffing declined by 12%.  Leading the growth was the
 Telecommunications Services unit with a 30% increase, while the Project
 Engineering business of the Technical Group grew by 19% and Technology
 Solutions Practice groups were 25% over the same quarter last year.  Fleet
 Services also were up, by 4%.  Solution oriented business now comprises about
 57% of consolidated revenue.
     The increased volume was offset by lower margins and higher overhead
 costs.  The lower margins were mostly due to the Telecommunications Services
 operation.  This was the result of lower utilization rates caused by a general
 slowdown in client demand and the Company's attempt to retain its highly
 skilled workforce.  Margins were also impacted by a significant increase in
 medical insurance premiums.  Overhead expenses were up due to increased staff
 levels, higher liability insurance costs as well as depreciation related to
 the development and implementation of financial and operations IT systems
 during 2000.
     Edward M. Kopko, Chairman and Chief Executive Officer, commented, "Our
 actions, announced and implemented today, are intended to size our costs to
 our current revenue picture and ensure profitability based on the current
 difficult economic environment.  While we remain optimistic that our customers
 will increase their use of our services in the future, we have aggressively
 moved to position the Company for dramatically stronger earnings when demand
 improves."
 
     Butler International, Inc. is a leading global provider of
 telecommunications and technology services.  Focused on quality, technology
 and learning initiatives, Butler delivers leading edge services to its
 clients, enabling them to adapt and grow within our ever-changing world.
 Further information about the Company, as well as Butler's employees,
 state-of-the-art processes, and value-added service offerings may be found on
 the Internet at http://www.butler.com, and information regarding BlueStorm may
 be found at http://www.bluestorm.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,
 which 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.
 
                       Mindpower for a Changing World(SM)
 
                           BUTLER INTERNATIONAL, INC.
                             SUMMARY OF OPERATIONS
                      (in thousands except per share data)
                                  (unaudited)
 
                                                           Quarter Ended
                                                             March 31,
                                                       2001           2000
 
     Net sales                                       $101,140        $96,368
 
     Gross margin                                     $19,094        $21,081
     Gross margin %                                      18.9%          21.9%
 
     Operating income/(loss)                          $(1,868)        $4,098
     Interest expense                                  (1,725)        (1,359)
 
     Income/(loss) before income taxes                 (3,593)         2,739
     Income tax expense (benefit)                      (1,561)           964
 
     Net income/(loss)                                 (2,032)         1,775
 
     Basic earnings per share                          $(0.23)         $0.18
     Diluted earnings per share                        $(0.18)         $0.16
 
     Average number of common shares and dilutive
      common share equivalents outstanding:
     Basic                                              9,419          9,449
     Diluted                                           11,052         11,388
 
 
                       SELECTED BALANCE SHEET INFORMATION
                                 (in thousands)
 
                                                       March          March
                                                       2001           2000
 
     Accounts Receivable                              $69,608        $63,492
     Total Current Assets                              86,993         71,314
     Total Current Liabilities                         35,734         32,378
     Working Capital                                   51,259         38,936
     Total Assets                                     175,588        159,431
     Total Liabilities                                113,299         96,521
     Stockholders' Equity                             $62,289        $62,910
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X82417688
 
 

SOURCE Butler International, Inc.
    MONTVALE, N.J., April 24 /PRNewswire Interactive News Release/ --
 Butler International, Inc. (Nasdaq:   BUTL) announced today that it had incurred
 an after-tax loss of $2 million, or $.18 per diluted share for the first
 quarter of 2001.  Revenues in the period were $101.1 million, up 5% over the
 $96.4 reported in the same quarter of the prior year.  The current year
 results contrast with a profit of $1.8 million, or $.16 per diluted share in
 the 2000 quarter.  As previously expected, BlueStorm, the Company's enterprise
 network consulting business, reported losses for the quarter.  BlueStorm's
 $3.1 million pre-tax loss substantially contributed to the Company's overall
 results.
     The Company also announced an aggressive, company-wide cost reduction plan
 that will result in approximately $20 million in annualized cost savings
 throughout the organization with BlueStorm cost reductions contributing
 significantly to the total.  Absent second quarter restructuring costs
 estimated to be up to $2.5 million, the Company expects to be profitable in
 the upcoming quarter.  These costs will include the elimination of excess
 capacity, reduction of both staff and service delivery personnel in all of its
 business units, the closing of certain unprofitable locations and terminating
 unprofitable contracts and activities.  These actions are intended to ensure
 ongoing profitability while also improving cash flow.
     The first quarter's results reflect the disappointing performance of
 BlueStorm and severance costs of approximately $220,000 reflecting the initial
 cost reductions effected by management.  The BlueStorm loss was substantially
 more than had been expected, the result of a deterioration in utilization
 rates caused by lower than anticipated demand for its services.  By way of
 comparison, BlueStorm had recorded a small profit in the first quarter of
 2000.  Operating results excluding the BlueStorm loss and severance costs were
 essentially break-even in the first quarter, which is historically the weakest
 quarter of the year.
     Addressing the results of its other operations, the Company reported that
 its solution oriented business revenue increased by 23% over the same quarter
 of the prior year, while staffing declined by 12%.  Leading the growth was the
 Telecommunications Services unit with a 30% increase, while the Project
 Engineering business of the Technical Group grew by 19% and Technology
 Solutions Practice groups were 25% over the same quarter last year.  Fleet
 Services also were up, by 4%.  Solution oriented business now comprises about
 57% of consolidated revenue.
     The increased volume was offset by lower margins and higher overhead
 costs.  The lower margins were mostly due to the Telecommunications Services
 operation.  This was the result of lower utilization rates caused by a general
 slowdown in client demand and the Company's attempt to retain its highly
 skilled workforce.  Margins were also impacted by a significant increase in
 medical insurance premiums.  Overhead expenses were up due to increased staff
 levels, higher liability insurance costs as well as depreciation related to
 the development and implementation of financial and operations IT systems
 during 2000.
     Edward M. Kopko, Chairman and Chief Executive Officer, commented, "Our
 actions, announced and implemented today, are intended to size our costs to
 our current revenue picture and ensure profitability based on the current
 difficult economic environment.  While we remain optimistic that our customers
 will increase their use of our services in the future, we have aggressively
 moved to position the Company for dramatically stronger earnings when demand
 improves."
 
     Butler International, Inc. is a leading global provider of
 telecommunications and technology services.  Focused on quality, technology
 and learning initiatives, Butler delivers leading edge services to its
 clients, enabling them to adapt and grow within our ever-changing world.
 Further information about the Company, as well as Butler's employees,
 state-of-the-art processes, and value-added service offerings may be found on
 the Internet at http://www.butler.com, and information regarding BlueStorm may
 be found at http://www.bluestorm.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,
 which 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.
 
                       Mindpower for a Changing World(SM)
 
                           BUTLER INTERNATIONAL, INC.
                             SUMMARY OF OPERATIONS
                      (in thousands except per share data)
                                  (unaudited)
 
                                                           Quarter Ended
                                                             March 31,
                                                       2001           2000
 
     Net sales                                       $101,140        $96,368
 
     Gross margin                                     $19,094        $21,081
     Gross margin %                                      18.9%          21.9%
 
     Operating income/(loss)                          $(1,868)        $4,098
     Interest expense                                  (1,725)        (1,359)
 
     Income/(loss) before income taxes                 (3,593)         2,739
     Income tax expense (benefit)                      (1,561)           964
 
     Net income/(loss)                                 (2,032)         1,775
 
     Basic earnings per share                          $(0.23)         $0.18
     Diluted earnings per share                        $(0.18)         $0.16
 
     Average number of common shares and dilutive
      common share equivalents outstanding:
     Basic                                              9,419          9,449
     Diluted                                           11,052         11,388
 
 
                       SELECTED BALANCE SHEET INFORMATION
                                 (in thousands)
 
                                                       March          March
                                                       2001           2000
 
     Accounts Receivable                              $69,608        $63,492
     Total Current Assets                              86,993         71,314
     Total Current Liabilities                         35,734         32,378
     Working Capital                                   51,259         38,936
     Total Assets                                     175,588        159,431
     Total Liabilities                                113,299         96,521
     Stockholders' Equity                             $62,289        $62,910
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X82417688
 
 SOURCE  Butler International, Inc.