Management to host conference call today, August 13, 2024, at 4:30 PM ET
PINE MOUNTAIN, Georgia, Aug. 13, 2024 — Parks! America, Inc. (OTCPink: PRKA), today announced the financial results for the third quarter of fiscal year 2024 ended June 30, 2024.
March – August 2024 Strategic Highlights
| • | Appointed Geoff Gannon as President | |
| • | Created Capital Allocation Committee composed of three directors: Andrew Kuhn, Jacob McDonough, and Todd White | |
| • | Authorized $0.8 million of capital expenditures for restroom building for Georgia Park | |
| • | Managing cash in light of ~$2.0 million of proxy contest expenses, Georgia Park’s restroom building, and severance payments | |
Year-to-Date Fiscal 2024 Segment Financial Results
| • | Georgia Park revenues of $4.42 million, segment income of $1.72 million, and total assets of $7.11 million, which includes cash and short-term investments of $1.61 million | |
| • | Missouri Park revenues of $1.29 million, segment income of $0.17 million, and total assets of $3.09 million, which includes cash and short-term investments of $0.54 million | |
| • | Texas Park revenues of $1.38 million, segment income of $0.10 million, and total assets of $7.96 million, which includes cash and short-term investments of $0.64 million | |
Consolidated Balance Sheet
The Company had total cash and short-term investments of $2.85 million as of June 30, 2024, compared to $4.10 million at the end of October 1, 2023. The Company had total debt of $3.65 million as of June 30, 2024, compared to $4.23 million at the end of October 1, 2023.
Conference Call and Webcast Details
The Company will host a conference call to review the results of the third quarter of the 2024 fiscal year today, August 13, 2024, at 4:30 pm ET.
The conference call will be webcast and can be accessed on the Company’s website, animalsafari.com/investor-relations. A transcript of the call will be available on the Company’s website.
About Parks! America, Inc.
Parks! America, Inc. (OTCPink: PRKA), through our wholly owned subsidiaries, owns and operates three regional safari parks and is in the business of acquiring, developing and operating local and regional entertainment assets in the United States.
Additional information, including our Form 10-K for the fiscal year ended October 1, 2023, is available on the Company’s website, animalsafari.com/investor-relations.
Cautionary Note Regarding Forward Looking Statements
This news release may contain “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements include statements concerning our future plans, business strategy, liquidity, capital expenditures, sources of revenue and other similar statements that are not historical in nature. You are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this news release and speak only as of the date hereof. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to differ significantly from those expressed or implied by such forward-looking statements. Readers are advised to consider the factors listed under the heading “Risk Factors” and the other information contained in the Company’s annual report and other reports filed from time to time with the SEC. We undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Ralph Molina
Head of Investor Relations and Corporate Strategy
(706) 940-2209
PARKS! AMERICA, INC. AND SUBSIDIARIES
REPORTED AND PRO FORMA PARK REVENUES
For the Three Months and Nine Months Ended June 30, 2024 and July 2, 2023
| For the three months ended | ||||||||||||
| July 2, 2023 | ||||||||||||
| June 30, 2024 | Actual | Pro Forma1 | ||||||||||
| Georgia Park | $ | 2,166,574 | $ | 1,713,205 | $ | 2,348,677 | ||||||
| Missouri Park | 668,097 | 570,888 | 556,619 | |||||||||
| Texas Park | 522,052 | 517,419 | 508,858 | |||||||||
| Total park revenues | $ | 3,356,723 | $ | 2,801,512 | $ | 3,414,154 | ||||||
| For the nine months ended | ||||||||||||
| July 2, 2023 | ||||||||||||
| June 30, 2024 | Actual | Pro Forma1 | ||||||||||
| Georgia Park | $ | 4,419,214 | $ | 4,059,002 | $ | 5,050,530 | ||||||
| Missouri Park | 1,293,101 | 1,061,480 | 1,039,008 | |||||||||
| Texas Park | 1,377,882 | 1,356,174 | 1,334,449 | |||||||||
| Total park revenues | $ | 7,090,197 | $ | 6,476,656 | $ | 7,423,987 | ||||||
| 1. | Pro Forma Park Revenues reflect: |
| a. | The estimated impact on park revenues resulting from the tornado damage closure and phased reopening of our Georgia Park during the first six weeks of the fiscal quarter ended July 2, 2023, as well as for roughly eight weeks during the nine months ended July 2, 2023, assuming Georgia Park revenues in each respective period were flat to the comparable period in fiscal 2022; and | |
| b. | The estimated impact of the strategic switch to a new ticketing platform early in the second quarter of fiscal 2024. We believe this change has improved the overall guest experience, lowering the overall transaction fees incurred by our guests for online ticket purchases, while also improving functionality for our park customer service teams. While this change has a net neutral impact on our profitability, we no longer directly up-charge customer transaction fees, resulting in a reduction in park revenues, with a corresponding decrease in operating expenses. |
PARKS! AMERICA, INC. AND SUBSIDIARIES
BUSINESS SEGMENTS
| For the three months ended | For the nine months ended | |||||||||||||||
| June 30, 2024 | July 2, 2023 | June 30, 2024 | July 2, 2023 | |||||||||||||
| Total revenues: | ||||||||||||||||
| Georgia | $ | 2,200,174 | $ | 1,713,536 | $ | 4,489,128 | $ | 4,103,132 | ||||||||
| Missouri | 675,283 | 570,888 | 1,317,737 | 1,061,480 | ||||||||||||
| Texas | 573,287 | 565,708 | 1,497,704 | 1,422,364 | ||||||||||||
| Consolidated | $ | 3,448,744 | $ | 2,850,132 | $ | 7,304,569 | $ | 6,586,976 | ||||||||
| Income (loss) before income taxes: | ||||||||||||||||
| Georgia | $ | 1,172,530 | $ | 709,499 | $ | 1,724,017 | $ | 1,364,639 | ||||||||
| Missouri | 222,714 | 167,503 | 166,886 | 30,098 | ||||||||||||
| Texas | 107,086 | 82,010 | 102,137 | 19,228 | ||||||||||||
| Segment EBITDA | 1,502,330 | 959,012 | 1,993,040 | 1,413,965 | ||||||||||||
| Corporate | (401,082 | ) | (308,044 | ) | (911,490 | ) | (928,961 | ) | ||||||||
| Depreciation and amortization | 230,852 | 222,124 | 672,648 | 648,757 | ||||||||||||
| Loss on asset disposals, net | – | – | 35,754 | 30,584 | ||||||||||||
| Contested proxy and related matters | 746,570 | – | 2,037,822 | – | ||||||||||||
| Tornado expenses and write-offs, net | (53,755 | ) | (268,776 | ) | (53,755 | ) | 363,596 | |||||||||
| Legal settlement | 75,000 | – | 75,000 | – | ||||||||||||
| Other income, net | 31,412 | 3,429 | 101,325 | 64,708 | ||||||||||||
| Interest expense | (46,923 | ) | (54,514 | ) | (147,515 | ) | (169,739 | ) | ||||||||
| Consolidated | $ | 87,070 | $ | 646,535 | $ | (1,732,109 | ) | $ | (662,964 | ) | ||||||
| June 30, 2024 | October 1, 2023 | July 2, 2023 | ||||||||||
| Total assets: | ||||||||||||
| Georgia | $ | 7,114,797 | $ | 8,519,619 | $ | 8,445,755 | ||||||
| Missouri | 3,085,406 | 3,335,794 | 3,169,692 | |||||||||
| Texas | 7,959,080 | 7,698,400 | 7,957,349 | |||||||||
| Corporate | 847,033 | 541,910 | 696,548 | |||||||||
| Consolidated | $ | 19,006,316 | $ | 20,095,723 | $ | 20,269,344 | ||||||
| Total cash & short-term | ||||||||||||
| Georgia | $ | 1,606,283 | $ | 3,047,188 | $ | 2,066,426 | ||||||
| Missouri | 542,270 | 671,423 | 394,968 | |||||||||
| Texas | 641,233 | 312,563 | 350,354 | |||||||||
| Corporate | 62,297 | 67,213 | 64,141 | |||||||||
| Consolidated | $ | 2,852,083 | $ | 4,098,387 | $ | 2,875,889 | ||||||
| Assets less cash & short-term | ||||||||||||
| Georgia | $ | 5,508,514 | $ | 5,472,431 | $ | 6,379,329 | ||||||
| Missouri | 2,543,136 | 2,664,371 | 2,774,724 | |||||||||
| Texas | 7,317,847 | 7,385,837 | 7,606,995 | |||||||||
| Corporate | 784,736 | 474,697 | 632,407 | |||||||||
| Consolidated | $ | 16,154,233 | $ | 15,997,336 | $ | 17,393,455 | ||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended June 30, 2024 and July 2, 2023
| For the three months ended | For the nine months ended | |||||||||||||||
| June 30, 2024 | July 2, 2023 | June 30, 2024 | July 2, 2023 | |||||||||||||
| Park revenues | $ | 3,356,723 | $ | 2,801,512 | $ | 7,090,197 | $ | 6,476,656 | ||||||||
| Sale of animals | 92,021 | 48,620 | 214,372 | 110,320 | ||||||||||||
| Total revenues | 3,448,744 | 2,850,132 | 7,304,569 | 6,586,976 | ||||||||||||
| Cost of sales | 436,348 | 374,131 | 1,047,267 | 929,632 | ||||||||||||
| Selling, general and administrative | 1,911,148 | 1,825,033 | 5,175,752 | 5,172,340 | ||||||||||||
| Depreciation and amortization | 230,852 | 222,124 | 672,648 | 648,757 | ||||||||||||
| Contested proxy and related matters | 746,570 | – | 2,037,822 | – | ||||||||||||
| Tornado expenses and write-offs, net | (53,755 | ) | (268,776 | ) | (53,755 | ) | 363,596 | |||||||||
| Legal settlement | 75,000 | – | 75,000 | – | ||||||||||||
| Loss on asset disposals, net | – | – | 35,754 | 30,584 | ||||||||||||
| Income (loss) from operations | 102,581 | 697,620 | (1,685,919 | ) | (557,933 | ) | ||||||||||
| Other income, net | 31,412 | 3,429 | 101,325 | 64,708 | ||||||||||||
| Interest expense | (46,923 | ) | (54,514 | ) | (147,515 | ) | (169,739 | ) | ||||||||
| Income (loss) before income taxes | 87,070 | 646,535 | (1,732,109 | ) | (662,964 | ) | ||||||||||
| Income tax expense (benefit) | 19,200 | 134,500 | (430,400 | ) | (175,900 | ) | ||||||||||
| Net income (loss) | $ | 67,870 | $ | 512,035 | $ | (1,301,709 | ) | $ | (487,064 | ) | ||||||
| Income (loss) per share – basic and diluted | $ | 0.00 | $ | 0.01 | $ | (0.02 | ) | $ | (0.01 | ) | ||||||
| Weighted average shares outstanding (in 000’s) – basic and diluted | 75,727 | 75,270 | 75,677 | 75,248 | ||||||||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of June 30, 2024, October 1, 2023 and July 2, 2023
| June 30, 2024 | October 1, 2023 | July 2, 2023 | ||||||||||
| ASSETS | ||||||||||||
| Cash | $ | 2,026,084 | $ | 4,098,387 | $ | 2,875,889 | ||||||
| Short-term investments | 825,999 | – | – | |||||||||
| Accounts receivable | 22,962 | 36,172 | 673,956 | |||||||||
| Inventory | 369,946 | 419,149 | 469,343 | |||||||||
| Prepaid expenses | 859,433 | 558,678 | 760,078 | |||||||||
| Total current assets | 4,104,424 | 5,112,386 | 4,779,266 | |||||||||
| Property and equipment, net | 14,848,121 | 14,910,097 | 15,397,446 | |||||||||
| Intangible assets, net | 35,196 | 52,331 | 71,723 | |||||||||
| Other assets | 18,575 | 20,909 | 20,909 | |||||||||
| Total assets | $ | 19,006,316 | $ | 20,095,723 | $ | 20,269,344 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Accounts payable | $ | 999,187 | $ | 79,352 | $ | 139,372 | ||||||
| Other current liabilities | 379,498 | 571,343 | 463,733 | |||||||||
| Current portion of long-term debt, net | 793,842 | 767,675 | 758,724 | |||||||||
| Total current liabilities | 2,172,527 | 1,418,370 | 1,361,829 | |||||||||
| Long-term debt, net | 2,860,461 | 3,459,816 | 3,654,738 | |||||||||
| Deferred tax liability, net | 232,329 | 232,329 | 270,895 | |||||||||
| Total liabilities | 5,265,317 | 5,110,515 | 5,287,462 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock | 75,727 | 75,518 | 75,518 | |||||||||
| Capital in excess of par | 5,159,762 | 5,102,471 | 5,102,471 | |||||||||
| Retained earnings | 8,505,510 | 9,807,219 | 9,803,893 | |||||||||
| Total stockholders’ equity | 13,740,999 | 14,985,208 | 14,981,882 | |||||||||
| Total liabilities and stockholders’ equity | $ | 19,006,316 | $ | 20,095,723 | $ | 20,269,344 | ||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended June 30, 2024 and July 2, 2023
| For the nine months ended | ||||||||
| June 30, 2024 | July 2, 2023 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (1,301,709 | ) | $ | (487,064 | ) | ||
| Reconciliation of net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense | 672,648 | 648,757 | ||||||
| Interest expense – debt financing cost amortization | 8,416 | 4,416 | ||||||
| Stock-based compensation | 57,500 | 115,000 | ||||||
| Interest accrued on certificates of deposit | (25,999 | ) | – | |||||
| Deferred tax liability | – | 270,895 | ||||||
| Tornado asset write-offs | – | 271,424 | ||||||
| Loss (gain) loss on asset disposals | 35,754 | 30,584 | ||||||
| Changes in assets and liabilities | ||||||||
| (Increase) decrease in accounts receivable | 13,210 | (669,551 | ) | |||||
| (Increase) decrease in inventory | 49,203 | 72,643 | ||||||
| (Increase) decrease in prepaid expenses | (300,755 | ) | (589,296 | ) | ||||
| Increase (decrease) in accounts payable | 919,835 | (128,195 | ) | |||||
| Increase (decrease) in other current liabilities | (191,845 | ) | (58,139 | ) | ||||
| Net cash used in operating activities | (63,742 | ) | (518,526 | ) | ||||
| INVESTING ACTIVITIES: | ||||||||
| Investments in certificates of deposit | (1,000,000 | ) | – | |||||
| Maturity of certificate of deposit | 200,000 | – | ||||||
| Acquisition of property and equipment | (669,791 | ) | (1,520,980 | ) | ||||
| Investment in intangible assets | – | (5,466 | ) | |||||
| Proceeds from the disposition of property and equipment | 42,833 | – | ||||||
| Net cash used in investing activities | (1,426,958 | ) | (1,526,446 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Payments on 2020 Term Loan | (375,112 | ) | (357,038 | ) | ||||
| Payments on 2021 Term Loan | (201,491 | ) | (194,137 | ) | ||||
| Line-of-credit fees | (5,000 | ) | – | |||||
| Net cash used in financing activities | (581,603 | ) | (551,175 | ) | ||||
| Net decrease in cash | (2,072,303 | ) | (2,596,147 | ) | ||||
| Cash at beginning of period | 4,098,387 | 5,472,036 | ||||||
| Cash at end of period | $ | 2,026,084 | $ | 2,875,889 | ||||
