Parks! America, Inc. Reports Third Quarter Fiscal 2024 Financial Results


Management to host conference call today, August 13, 2024, at 4:30 PM ET

PINE MOUNTAIN, Georgia, Aug. 13, 2024 (GLOBE NEWSWIRE) -- 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