Parks! America, Inc. Reports Q3 and YTD Fiscal 2023 Results
- The company experienced a decrease in park revenues in Q3, which is a negative sign for investors. This decrease can be attributed to the revenue impact of the tornado at the Georgia Park.
- Investors should be cautious as the company's Q3 performance indicates a decline in revenue.
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- The company's park revenues decreased by 4% on a pro forma basis in Q3, which is a negative indicator for the company's financial performance.
- The revenue impact of the tornado at the Georgia Park had a significant negative effect on the company's overall park revenues in Q3.
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● Q3 park revenues decreased
● Majority of the Walkabout in Georgia reopened following the March tornado closure
● Management remains focused on long-term organic growth, with an emphasis on improved marketing, operating efficiencies and the overall guest experience
PINE MOUNTAIN, Georgia, Aug. 15, 2023 (GLOBE NEWSWIRE) -- Parks! America, Inc. (OTCPink: PRKA), today announced the results for its third fiscal quarter and nine months ended July 2, 2022.
Third Quarter Fiscal 2023 Highlights
Total revenues for the fiscal quarter ended July 2, 2023 were
The Company reported a net income of
“Our Missouri Park performed well during the quarter with attendance and overall park revenue generating double digit percentage increases, driven by more competitive admission pricing as well as a strong marketing effort,” said Lisa Brady, president and CEO. “We are pleased with the rebuild efforts at our Georgia Park and remain focused on returning attendance and revenues to prior year levels. Our Texas park was negatively impacted by periods of significant precipitation during the quarter compared to near drought conditions in the prior year period. We continue to monitor attendance trends at the park and are continually tweaking our marketing efforts to generate brand awareness and drive overall attendance. Our teams did a great job managing expenses during the quarter and we have continued to focus on driving an improved guest experience in our parks,” Ms. Brady concluded.
Nine Months Fiscal 2023 Highlights
Total revenues for the nine months ended July 2, 2023 were
The Company reported a net loss of
Park Revenues through August 5, 2023
For the first five weeks of our 2023 fiscal fourth quarter, park revenues declined
“We were pleased with the positive momentum in the first five weeks of our fiscal fourth quarter. Missouri has continued to demonstrate strong momentum driven by our updated pricing strategy and enhanced marketing efforts. We are particularly pleased with the growth in Texas, as our marketing efforts are more than offsetting the impact of persistent heat. Our Georgia Park revenue is in line with our expectations as we continue work to reopen the entirety of the Walkabout and recover from the lost momentum driven by the devastation caused by the tornado,” Ms. Brady commented.
Balance Sheet and Liquidity
The Company had working capital of
Fiscal 2023 Commentary and Outlook
“Our current outlook remains consistent with our commentary last quarter as we remain optimistic we will generate a positive EBITDA for our 2023 fiscal year. However, due to the impact of the tornado and pace of recovery in Georgia, we may report a net loss for the fiscal year,” said Ms. Brady.
Ms. Brady added, “As we consider our long-term strategy and work to deliver increased shareholder returns, we believe we are on a path to drive sustained profitability at our Missouri Park through a combination of growth in the core business as well as future adjacent development. We continue to closely monitor our Texas park and the marketing strategy as we work to build the brand and overall awareness, recognizing this park opened in May 2019 and remains in its infancy. However, the attendance build is slower than expected when we acquired this park in late April 2020.”
“Despite what has been an extraordinarily challenging year due to the aftermath of the Georgia tornado, I am so proud of the hard work and dedication of our teams and the organic momentum we have built internally. We continue to focus on enhancing our guest experience, team development and fine-tuning the foundational elements of our business, all in support of operationalizing our long-term growth strategy to take Parks! America to the next level. I would like to thank our investors for their continued support,” Ms. Brady closed.
About Parks! America, Inc.
Parks! America, Inc. (OTCPink: PRKA), through its wholly owned subsidiaries, owns and operates three regional theme parks - the Wild Animal Safari theme park in Pine Mountain, Georgia, the Wild Animal Safari theme park located in Strafford, Missouri, as well as the Aggieland Wild Animal Safari theme park, located near Bryan/College Station, Texas.
Additional information, including our Form 10-K for the fiscal year ended October 2, 2022, is available on the Company’s website, http://www.animalsafari.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, this news release contains certain “forward-looking statements” within the meaning of U.S. securities laws. Such forward-looking statements involve risks and uncertainties, including, among other things, statements concerning: our business strategy; liquidity and capital expenditures; future sources of revenues and anticipated costs and expenses; and trends in industry activity generally. Such forward-looking statements include, among others, those statements including the words such as “may,” “will,” “should,” “expect,” “plan,” “could,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or similar language or by discussions of our outlook, plans, goals, strategy or intentions.
You are cautioned not to place undue reliance on these forward-looking statements; our actual results may differ significantly from those projected in the forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to vary materially from future results include but are not limited to: competition from other parks which we believe is increasing, difficulty engaging seasonal and full-time workers, inclement weather conditions during our primary tourist season, the price of animal feed and the price of gasoline. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, we cannot guarantee future results, levels of activity, performance or achievements.
We believe the expectations reflected in forward-looking statements are reasonable, however we can give no assurances that such expectations will be realized, and actual results could differ materially. We assume no obligation to update any of these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements, except as required by applicable law. A further description of these risks, uncertainties and other matters can be found in the Company’s annual report and other reports filed from time to time with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2022.
| Contact: | Lisa Brady |
| President and Chief Executive Officer | |
| (706) 663-8744 | |
| lisa@parksamerica.com |
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended July 2, 2023 and July 3, 2022
| For the three months ended | For the nine months ended | |||||||||||||||
| July 2, 2023 | July 3, 2022 | July 2, 2023 | July 3, 2022 | |||||||||||||
| Park revenues | $ | 2,801,512 | $ | 3,619,240 | $ | 6,476,656 | $ | 7,645,743 | ||||||||
| Sale of animals | 48,620 | 25,085 | 110,320 | 29,914 | ||||||||||||
| Total revenues | 2,850,132 | 3,644,325 | 6,586,976 | 7,675,657 | ||||||||||||
| Cost of sales | 374,131 | 461,086 | 929,632 | 1,086,763 | ||||||||||||
| Selling, general and administrative | 1,825,033 | 1,880,438 | 5,172,340 | 5,414,094 | ||||||||||||
| Depreciation and amortization | 222,124 | 192,575 | 648,757 | 578,225 | ||||||||||||
| Tornado expenses and write-offs, net | (268,776 | ) | - | 363,596 | - | |||||||||||
| Legal settlement | - | 100,000 | - | 100,000 | ||||||||||||
| (Gain) loss on disposal of operating assets | - | (11,160 | ) | 30,584 | (29,160 | ) | ||||||||||
| Income (loss) from operations | 697,620 | 1,021,386 | (557,933 | ) | 525,735 | |||||||||||
| Other income, net | 3,429 | 22,030 | 64,708 | 68,322 | ||||||||||||
| Interest expense | (54,514 | ) | (65,804 | ) | (169,739 | ) | (202,475 | ) | ||||||||
| Income (loss) before income taxes | 646,535 | 977,612 | (662,964 | ) | 391,582 | |||||||||||
| Income tax expense (benefit) | 134,500 | 258,900 | (175,900 | ) | 146,500 | |||||||||||
| Net income (loss) | $ | 512,035 | $ | 718,712 | $ | (487,064 | ) | $ | 245,082 | |||||||
| Income (loss) per share - basic and diluted | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | 0.00 | |||||||
| Weighted average shares outstanding (in 000’s) - basic and diluted | 75,444 | 75,168 | 75,314 | 75,146 | ||||||||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
REPORTED AND PRO FORMA PARK REVENUES
For the Three Months and Nine Months Ended July 2, 2023 and July 3, 2022
| Reported | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
| July 2, 2023 | July 3, 2022 | July 2, 2023 | July 3, 2022 | |||||||||||||
| Georgia | $ | 1,713,205 | $ | 2,512,363 | $ | 4,059,002 | $ | 5,159,261 | ||||||||
| Missouri | 570,888 | 517,589 | 1,061,480 | 1,017,696 | ||||||||||||
| Texas | 517,419 | 589,288 | 1,356,174 | 1,468,786 | ||||||||||||
| Total park revenues | $ | 2,801,512 | $ | 3,619,240 | $ | 6,476,656 | $ | 7,645,743 | ||||||||
| Pro Forma | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
| July 2, 2023 | July 3, 2022 | July 2, 2023 | July 3, 2022 | |||||||||||||
| Georgia | $ | 2,388,705 | $ | 2,512,363 | $ | 5,038,002 | $ | 5,159,261 | ||||||||
| Missouri | 570,888 | 517,589 | 1,061,480 | 1,017,696 | ||||||||||||
| Texas | 517,419 | 589,288 | 1,356,174 | 1,468,786 | ||||||||||||
| Total park revenues | $ | 3,477,012 | $ | 3,619,240 | $ | 7,455,656 | $ | 7,645,743 | ||||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET INCOME (1)
For the Three Months and Nine Months Ended July 2, 2023 and July 3, 2022
| For the three months ended | For the nine months ended | |||||||||||||||
| July 2, 2023 | July 3, 2022 | July 2, 2023 | July 3, 2022 | |||||||||||||
| Net income (loss) | $ | 512,035 | $ | 718,712 | $ | (487,064 | ) | $ | 245,082 | |||||||
| Tornado expenses and write-offs, net | (268,776 | ) | - | 363,596 | - | |||||||||||
| Tax impact - Tornado expenses and write-offs | 72,570 | - | (98,170 | ) | - | |||||||||||
| Legal settlement | - | 100,000 | - | 100,000 | ||||||||||||
| Tax impact - legal settlement | - | (27,000 | ) | - | (27,000 | ) | ||||||||||
| Adjusted net income (loss) | $ | 315,829 | $ | 791,712 | $ | (221,638 | ) | $ | 318,082 | |||||||
(1) Reconciliation of Non-GAAP Disclosure Item - Adjusted Net Income
Adjusted net income for the three months ended July 2, 2023 excludes tornado expenses of
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of July 2, 2023, October 2, 2022 and July 2, 2022
| July 2, 2023 | October 2, 2022 | July 3, 2022 | ||||||||||
| ASSETS | ||||||||||||
| Cash | $ | 2,875,889 | $ | 5,472,036 | $ | 5,299,849 | ||||||
| Accounts receivable | 673,956 | 4,405 | 3,877 | |||||||||
| Inventory | 469,343 | 541,986 | 587,674 | |||||||||
| Prepaid expenses | 760,078 | 170,782 | 275,059 | |||||||||
| Total current assets | 4,779,266 | 6,189,209 | 6,166,459 | |||||||||
| Property and equipment, net | 15,397,446 | 14,811,742 | 14,717,486 | |||||||||
| Right of use asset, net | - | - | 309,661 | |||||||||
| Intangible assets, net | 71,723 | 79,565 | 10,141 | |||||||||
| Other assets | 20,909 | 23,090 | 16,974 | |||||||||
| Total assets | $ | 20,269,344 | $ | 21,103,606 | $ | 21,220,721 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Accounts payable | $ | 139,372 | $ | 267,567 | $ | 310,740 | ||||||
| Other current liabilities | 463,733 | 521,872 | 589,127 | |||||||||
| Current portion of finance lease obligation | - | - | 158,852 | |||||||||
| Current portion of long-term debt, net | 758,724 | 732,779 | 724,239 | |||||||||
| Total current liabilities | 1,361,829 | 1,522,218 | 1,782,958 | |||||||||
| Long-term portion of finance lease obligation | - | - | 152,820 | |||||||||
| Long-term debt, net | 3,654,738 | 4,227,442 | 4,413,406 | |||||||||
| Deferred tax liability, net | 270,895 | - | - | |||||||||
| Total liabilities | 5,287,462 | 5,749,660 | 6,349,184 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock | 75,518 | 75,227 | 75,227 | |||||||||
| Capital in excess of par | 5,102,471 | 4,987,762 | 4,987,762 | |||||||||
| Retained earnings | 9,803,893 | 10,290,957 | 9,808,548 | |||||||||
| Total stockholders’ equity | 14,981,882 | 15,353,946 | 14,871,537 | |||||||||
| Total liabilities and stockholders’ equity | $ | 20,269,344 | $ | 21,103,606 | $ | 21,220,721 | ||||||
FAQ
What happened to park revenues in Q3?
What caused the decrease in park revenues?
What is the overall impact of the Q3 performance on investors?
