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Parks! America, Inc. Reports Q3 and YTD Fiscal 2022 Results

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Parks! America, Inc.
Parks! America, Inc.

 

Reported Q3 and YTD fiscal 2022 attendance based net sales decline 5.4% and 9.5%, respectively

 

YTD comparable 39-week attendance based net sales decrease 7.4%

 

YTD comparable 39-week attendance based net sales increase 50.4% versus fiscal 2019 pre-COVID comps

 

Q3 and YTD fiscal 2022 attendance based net sales second highest in Company history

 

Record YTD fiscal 2022 per capita of $37.52, up $5.61 versus fiscal 2019 pre-COVID comp, driven by new animal encounters, and expanded retail and concession offerings

 

Record capital investment spending continues

PINE MOUNTAIN, Georgia, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Parks! America, Inc. (OTCPink: PRKA), today announced the results for its third fiscal quarter and nine months ended July 3, 2022.

Third Quarter Fiscal 2022 Highlights

Reported total net sales for the fiscal quarter ended July 3, 2022 were $3.64 million, a decrease of $229,775, compared to the three month period ended July 4, 2021. Our Parks’ combined attendance based net sales decreased by $204,622 or 5.4%, and animal sales decreased by $25,153.

The Company reported net income of $718,712 or $0.01 per basic share and per fully diluted share, for the three month period ended July 3, 2022, compared to a net income of $1.27 million or $0.02 per basic share and per fully diluted share, for the three month period ended July 4, 2021, resulting in a decrease of $548,121. The decrease in the Company’s third fiscal quarter net income is primarily attributable to lower attendance based net sales and animal sales, and higher advertising, compensation, insurance, and general operating expenses, a legal settlement charge and a gain on extinguishment of debt in the prior year, partially offset by higher other income, lower interest expense and lower income taxes.

Excluding the after-tax impact of the settlement loss for the third fiscal quarter ended July 3, 2022 and the non-taxable gain on extinguishment of debt for the third fiscal quarter ended July 4, 2021, net income decreased by $410,504.

Nine Months Fiscal 2022 Highlights

The Company’s 2022 fiscal year will be comprised of 52-weeks, compared to its 2021 fiscal year which was comprised of 53-weeks. The extra week in the Company’s 2021 fiscal year occurred in the three months ended January 3, 2021. As such, attendance based net sales analyses for the nine months ended July 3, 2022 will include comparable 39-week sales comparisons, in addition to reported sales comparisons.

Reported total net sales for the nine month period ended July 3, 2022 were $7.68 million, a decrease of $901,825, compared to the nine month period ended July 4, 2021. Our Parks’ combined attendance based net sales decreased by $805,327 or 9.5%, and animal sales decreased by $96,498. On a comparable 39-week basis, attendance based net sales decreased by $608,721 or 7.4%.

The Company reported net income of $245,082 or $0.00 per basic share and per fully diluted share, for the nine month period ended July 3, 2022, compared to a net income of $2.03 million or $0.03 per basic share and per fully diluted share, for the nine month period ended July 4, 2021, resulting in a decrease of $1.79 million. The decrease in the Company’s net income for the nine months ended July 3, 2022 is primarily attributable to lower attendance based net sales and animal sales, and higher compensation, advertising, special event, insurance, and general operating expenses, a legal settlement charge and a gain on extinguishment of debt in the prior year, partially offset by higher other income, lower interest expense and lower income taxes.

Excluding the after-tax impact of the settlement loss for the nine month period ended July 3, 2022 and the non-taxable gain on extinguishment of debt for the nine month period ended July 4, 2021, net income decreased by $1.52 million.

Balance Sheet and Liquidity

The Company had working capital of $4.38 million as of July 3, 2022, compared to $5.7 million as of October 3, 2021 and $5.0 million as of July 4, 2021. The Company had total debt of $5.45 million as of July 3, 2022, compared to $5.66 million as of October 3, 2021 and $5.83 million as of July 4, 2021. The Company’s debt-to-equity ratio was 0.37 to 1.0 as of July 3, 2022, compared to 0.39 to 1.0 as of October 3, 2021 and 0.42 to 1.0 as of July 4, 2021.

Fiscal 2022 Commentary

“Our fiscal third quarter and nine months results reflect similar factors,” commented Dale Van Voorhis, Chairman and Interim CEO. “We believe our attendance based sales have been unfavorably impacted by various factors including the full reopening of other family entertainment venues, general economic conditions impacting family budgets, and weather conditions. We have also made planned investments in advertising and staffing, and overall our expenses have been impacted by the current inflationary environment.

“On a comparable 39-week basis, our attendance based net sales for the nine months ended July 3, 2022 decreased 7.4%. In comparison to the pre-COVID-19 comparable 39-weeks in our 2019 fiscal year, combined attendance based net sales for our Georgia and Missouri Parks increased 50.4%,” commented Mr. Van Voorhis. “Compared to 2019, we have also seen a roughly 18% increase in our per capita revenue, largely attributable to expanded concessions and retail offerings, the introduction of private animal encounters, and opportunistic pricing. We believe the attendance gains we have experienced and improvements we have instituted since 2019 illustrate that we have established a solid base on which to continue to grow our business in the future.

“Our 2022 fiscal year continues to be one of transition as we begin the process of transforming all three of our Parks by way of increased capital investment. Based on our latest estimates, we will invest a record of roughly $1.75 million toward a variety of projects this fiscal year. These projects include a new Grison Exhibit, an improved Marmoset/Tamarin Exhibit, and a new party pavilion at our Georgia Park, significant progress on a new Otter Exhibit at our Missouri Park, and a variety of infrastructure improvements at our Texas Park, as we ready that facility to introduce full concessions in our 2023 fiscal year. We have also introduced various animal encounters at all three of our Parks during 2022, along with the supporting capital improvements. However, due to various factors, the announced new Giraffe Exhibit at our Georgia Park will not be completed until at least the spring of 2023. Though this major improvement has been delayed, we believe this Giraffe Exhibit will be a showcase attraction and the cornerstone of future growth for our Georgia Park.

“We are focused on finishing our 2022 fiscal year strong, maintaining a very healthy balance sheet, and making investments we believe will continue to build a solid foundation on which to grow our business for many years to come. I want to highlight the accomplishments of the exceptional teams at each of our Parks. Their hard work and special projects this year include the introduction of extended private animal encounters at each of our Parks, the first year of Corn Maze and Christmas Lights seasonal programs at our Missouri Park, and the introduction of vehicle rental programs at our Missouri and Texas Parks. Significantly, each of our Parks continues to receive local and national recognition for being among the top attractions for families, including TripAdvisor’s 2022 Travelers’ Choice Award for both our Georgia and Missouri Parks.

“Finally, I express my thanks to our investors for your continuing support, and we welcome you to stop in for a visit at any one of our Parks for an up close look at our ongoing improvements.”

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, which was acquired on April 27, 2020.

Additional information, including our Form 10-K for the fiscal year ended October 3, 2021, 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. You are cautioned to not place undue reliance on these forward-looking statements; actual results or outcomes could differ materially due to factors including, but not limited to: general market conditions, adverse weather, and industry competition. Additional risks have been added to the Company’s business by the near-term and long-term impacts of the COVID-19 pandemic on the operations of its Parks, including customers perceptions of engaging in the activities involved in visiting its Parks, its ability to hire and retain associates in light of the issues posed by the COVID-19 pandemic, and its ability to maintain sufficient cash to fund operations due to the potential negative impact on its revenues associated with disruptions in demand as a result of the pandemic. The Company believes that expectations reflected in forward-looking statements are reasonable, however it can give no assurances that such expectations will be realized, and actual results could differ materially. The Company assumes 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 3, 2021.

Contact: Todd R. White
Chief Financial Officer
(706) 663-8744
todd.white@animalsafari.com

PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended July 3, 2022 and July 4, 2021

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

July 3, 2022

 

 

July 4, 2021

 

 

July 3, 2022

 

 

July 4, 2021

 

Net sales

 

$

3,619,240

 

 

$

3,823,862

 

 

$

7,645,743

 

 

$

8,451,070

 

Sale of animals

 

 

25,085

 

 

 

50,238

 

 

 

29,914

 

 

 

126,412

 

Total net sales

 

 

3,644,325

 

 

 

3,874,100

 

 

 

7,675,657

 

 

 

8,577,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

461,086

 

 

 

496,406

 

 

 

1,086,763

 

 

 

1,066,253

 

Selling, general and administrative

 

 

1,880,438

 

 

 

1,514,013

 

 

 

5,414,094

 

 

 

4,251,507

 

Depreciation and amortization

 

 

192,575

 

 

 

183,883

 

 

 

578,225

 

 

 

523,890

 

Legal settlement

 

 

100,000

 

 

 

-

 

 

 

100,000

 

 

 

-

 

(Gain) loss on disposal of operating assets

 

 

(11,160

)

 

 

10,320

 

 

 

(29,160

)

 

 

41,041

 

Income from operations

 

 

1,021,386

 

 

 

1,669,478

 

 

 

525,735

 

 

 

2,694,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

22,030

 

 

 

16,996

 

 

 

68,322

 

 

 

44,315

 

Gain on extinguishment of debt

 

 

-

 

 

 

64,617

 

 

 

-

 

 

 

189,988

 

Interest expense

 

 

(65,804

)

 

 

(91,958

)

 

 

(202,475

)

 

 

(267,578

)

Income before income taxes

 

 

977,612

 

 

 

1,659,133

 

 

 

391,582

 

 

 

2,661,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

258,900

 

 

 

392,300

 

 

 

146,500

 

 

 

628,700

 

Net income

 

$

718,712

 

 

$

1,266,833

 

 

$

245,082

 

 

$

2,032,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share - basic and diluted

 

$

0.01

 

 

$

0.02

 

 

$

0.00

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in 000’s) - basic and diluted




75,227





75,124





75,173





75,084



PARKS! AMERICA, INC. AND SUBSIDIARIES
ATTENDANCE BASED NET SALES BY PARK

 

 

Reported

 

 

Comparable 39-Weeks

 

 

 

For the three months ended

 

 

For the nine months ended

 

 

For the nine months ended

 

 

 

July 3, 2022

 

 

July 4, 2021

 

 

July 3, 2022

 

 

July 4, 2021

 

 

July 3, 2022

 

 

July 4, 2021

 

Georgia

 

$

2,512,363

 

 

$

2,716,847

 

 

$

5,159,261

 

 

$

5,846,750

 

 

$

5,159,261

 

 

$

5,714,198

 

Missouri

 

 

517,589

 

 

 

618,185

 

 

 

1,017,696

 

 

 

1,151,012

 

 

 

1,017,696

 

 

 

1,125,893

 

Texas

 

 

589,288

 

 

 

488,830

 

 

 

1,468,786

 

 

 

1,453,308

 

 

 

1,468,786

 

 

 

1,414,373

 

Total attendance based sales

 

$

3,619,240

 

 

$

3,823,862

 

 

$

7,645,743

 

 

$

8,451,070

 

 

$

7,645,743

 

 

$

8,254,464

 


PARKS! AMERICA, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET INCOME (1)
For the Three Months and Nine Months Ended July 3, 2022 and July 4, 2021

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

July 3, 2022

 

 

July 4, 2021

 

 

July 3, 2022

 

 

July 4, 2021

 

Net income

 

$

718,712

 

 

$

1,266,833

 

 

$

245,082

 

 

$

2,032,816

 

Legal settlement

 

 

100,000

 

 

 

-

 

 

 

100,000

 

 

 

-

 

Tax impact - legal settlement

 

 

(27,000

)

 

 

-

 

 

 

(27,000

)

 

 

-

 

Gain on extinguishment of debt

 

 

-

 

 

 

(64,617

)

 

 

-

 

 

 

(189,988

)

Adjusted net income

 

$

791,712

 

 

$

1,202,216

 

 

$

318,082

 

 

$

1,842,828

 


(1) Reconciliation of Non-GAAP Disclosure Item - Adjusted Net Income

 

Adjusted net income for the three and nine month periods ended July 3, 2022, excludes a legal settlement charge associated an employment contract dispute related to a former officer of the Company. Adjusted net income for the three and nine month periods ended July 4, 2021, exclude a gain on extinguishment of debt associated with the forgiveness of Paycheck Protection Program loans.


PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of July 3, 2022, October 3, 2021 and July 4, 2021

 

 

July 3, 2022

 

 

October 3, 2021

 

 

July 4, 2021

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash

 

$

5,299,849

 

 

$

6,654,348

 

 

$

5,959,859

 

Accounts receivable

 

 

3,877

 

 

 

4,469

 

 

 

14,822

 

Inventory

 

 

587,674

 

 

 

314,103

 

 

 

361,418

 

Prepaid expenses

 

 

275,059

 

 

 

175,248

 

 

 

73,290

 

Total current assets

 

 

6,166,459

 

 

 

7,148,168

 

 

 

6,409,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

14,717,486

 

 

 

13,806,868

 

 

 

13,936,038

 

Right of use asset, net

 

 

309,661

 

 

 

-

 

 

 

-

 

Intangible assets, net

 

 

10,141

 

 

 

10,966

 

 

 

10,966

 

Other assets

 

 

16,974

 

 

 

15,974

 

 

 

15,974

 

Total assets

 

$

21,220,721

 

 

$

20,981,976

 

 

$

20,372,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

310,740

 

 

$

221,414

 

 

$

210,146

 

Other current liabilities

 

 

589,127

 

 

 

531,347

 

 

 

529,877

 

Current portion of finance lease obligation

 

 

158,852

 

 

 

-

 

 

 

-

 

Current portion of long-term debt, net

 

 

724,239

 

 

 

699,483

 

 

 

665,019

 

Total current liabilities

 

 

1,782,958

 

 

 

1,452,244

 

 

 

1,405,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term portion of finance lease obligation

 

 

152,820

 

 

 

-

 

 

 

-

 

Long-term debt, net

 

 

4,413,406

 

 

 

4,960,180

 

 

 

5,163,503

 

Total liabilities

 

 

6,349,184

 

 

 

6,412,424

 

 

 

6,568,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

75,227

 

 

 

75,124

 

 

 

75,124

 

Capital in excess of par

 

 

4,987,762

 

 

 

4,934,212

 

 

 

4,934,212

 

Treasury stock

 

 

-

 

 

 

(3,250

)

 

 

(3,250

)

Retained earnings

 

 

9,808,548

 

 

 

9,563,466

 

 

 

8,797,736

 

Total stockholders’ equity

 

 

14,871,537

 

 

 

14,569,552

 

 

 

13,803,822

 

Total liabilities and stockholders’ equity

 

$

21,220,721

 

 

$

20,981,976

 

 

$

20,372,367