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8-K - FORM 8-K CURRENT REPORT - PARKS AMERICA, INCf8k081016_8k.htm


Date: August 10, 2016

News Release – Investor Update



Parks! America Reports Strong Net Sales Growth and

Results for the Third Quarter and First Nine Months of Fiscal 2016


· Q3 reported and comparable 13-week attendance based net sales increase by 12.4% and 11.1%, respectively

· First nine months reported and comparable 40-week attendance based net sales increase by 22.5% and 15.8%, respectively

· Double-digit percentage growth in attendance based net sales in eight of the last nine quarters

· YTD Net Income increased by $453,742 to $653,833


PINE MOUNTAIN, Georgia, August 10, 2016 – Parks! America (OTCPink: PRKA), announced today the results for its third quarter and nine months ended July 3, 2016.


The Company’s 2016 fiscal year will end on October 2, 2016 and will be comprised of 53 weeks. The Company’s 2015 fiscal year ended on September 27, 2015 and was comprised of 52 weeks. This calendar change has also impacted the timing of our 2016 fiscal quarter ends as compared to the prior year. Therefore, Park attendance based net sales are discussed on a comparable 13-week, as well as a reported, basis for the third quarter of our 2016 fiscal year as compared to the prior year. In addition, Park attendance based net sales are discussed on a comparable 40-week, as well as a reported, basis for the first nine months of our 2016 fiscal year as compared to the prior year.


Third Quarter 2016 Highlights


Reported total net sales for the fiscal quarter ended July 3, 2016 increased by $199,389 or 12.3%, to $1,819,140, driven by higher attendance and higher average revenue per guest. Reported Park attendance based net sales increased by $201,014 or 12.4%, while animal sales decreased by $1,625. On a comparable 13-week basis, combined Park attendance based net sales increased $181,963 or 11.1%.


The Company reported net income of $731,649 for the fiscal quarter ended July 3, 2016 compared to $552,275 for the fiscal quarter ended June 28, 2015, resulting in an increase of $179,374. The improvement in net income during the third quarter of the 2016 fiscal year was primarily attributable to higher total net sales, as well as lower legal fees, partially offset by higher cost of sales, general operating expenses and income taxes.


First Nine Month 2016 Highlights


Reported total net sales for the first nine months of the 2016 fiscal year increased by $626,811 or 22.0%, to $3,475,604, driven by higher attendance and higher average revenue per guest. Reported combined Park attendance based net sales increased by $636,176 or 22.5%, partially offset by a $9,365 decrease in animal sales. On a comparable 40-week basis, Park attendance based net sales increased $471,586 or 15.8%.


The Company reported net income of $653,833 for the nine months ended July 3, 2016 compared to $200,091 for the nine months ended June 28, 2015, resulting in an increase of $453,742. The increase in net income during first nine months of the 2016 fiscal year was primarily attributable to higher total net sales, as well as lower legal fees, partially offset by higher compensation, advertising, insurance and general operating expenses, and higher cost of sales and income taxes.


“We continue to be very encouraged by the strong growth in attendance based net sales generated by both our Parks during the first nine months of our 2016 fiscal year,” commented Dale Van Voorhis, Chairman & CEO. “We have achieved double-digit percentage year-over-year growth in attendance based net sales in eight of the last nine fiscal quarters. We are also pleased with the operating income leverage generated during the first nine months of our 2016 fiscal year, as approximately 72% of incremental sales flowed through to net income.”


Balance Sheet and Liquidity


The Company had working capital of $1.00 million as of July 3, 2016 compared to working capital of $122,567 as of June 28, 2015. The year-over-year improvement in working capital is primarily reflective of the strong operating results during the first nine months of the 2016 fiscal year and lower year-to-date capital spending.





The Company’s debt to equity ratio was 0.80 to 1.00 as of July 3, 2016, compared to 1.11 to 1.00 as of June 28, 2015.


“We continue to be pleased with our strong improvement in working capital and debt to equity ratio over the past three years,” noted Mr. Van Voorhis. “This has been driven by continuing improvement in our results from operations and the January 2013 refinancing of all our debt. We plan to continue to leverage these strong financial results to build on our businesses and to improve the wild animal safari experience for our guests.”


About Parks! America, Inc.


Parks! America, Inc. (OTCPink: PRKA), through its wholly owned subsidiaries, owns and operates two regional theme parks - the Wild Animal Safari theme park in Pine Mountain, Georgia, and the Wild Animal Safari theme park located in Strafford, Missouri.


Additional information, including our Form 10-K for the fiscal year ended September 27, 2015, 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. 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. 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 September 27, 2015.



Contact: Todd R. White

Chief Financial Officer

(706) 663-8744

todd.white@animalsafari.com








PARKS! AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months and Nine Months Ended July 3, 2016 and June 28, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the nine months ended

 

 

July 3, 2016

 

June 28, 2015

 

July 3, 2016

 

June 28, 2015

Net sales

$

1,819,140

 

$

1,618,126

 

$

3,459,277

 

$

2,823,101

Sale of animals

 

-

 

 

1,625

 

 

16,327

 

 

25,692

Total net sales

 

1,819,140

 

 

1,619,751

 

 

3,475,604

 

 

2,848,793

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

182,141

 

 

157,121

 

 

390,078

 

 

323,155

Selling, general and administrative

 

717,261

 

 

758,292

 

 

1,960,395

 

 

1,899,230

Depreciation and amortization

 

85,200

 

 

81,250

 

 

255,800

 

 

243,750

(Gain) loss on disposal of operating assets, net

 

2,623

 

 

(7,344)

 

 

2,623

 

 

(7,344)

Income from operations

 

831,915

 

 

630,432

 

 

866,708

 

 

390,002

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

1,978

 

 

2,541

 

 

6,000

 

 

5,978

Interest expense

 

(49,542)

 

 

(56,096)

 

 

(155,569)

 

 

(166,083)

Amortization of loan fees

 

(2,602)

 

 

(2,602)

 

 

(7,806)

 

 

(7,806)

Income before income taxes

 

781,749

 

 

574,275

 

 

709,333

 

 

222,091

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

50,100

 

 

22,000

 

 

55,500

 

 

22,000

Net income

$

731,649

 

$

552,275

 

$

653,833

 

$

200,091

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share - basic and diluted

$

0.01

 

$

0.01

 

$

0.01

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

74,531

 

 

74,381

 

 

74,488

 

 

74,314








PARKS! AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of July 3, 2016, September 27, 2015 and June 28, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 3, 2016

 

September 27, 2015

 

June 28, 2015

ASSETS

 

 

 

 

 

 

 

 

Cash – unrestricted

$

1,191,745

 

$

563,096

 

$

251,495

Cash – restricted

 

456,492

 

 

456,492

 

 

456,492

Inventory

 

135,424

 

 

139,324

 

 

178,634

Prepaid expenses

 

41,755

 

 

87,633

 

 

52,823

 

Total current assets

 

1,825,416

 

 

1,246,545

 

 

939,444

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

6,378,210

 

 

6,362,790

 

 

6,293,885

Intangible assets, net

 

154,054

 

 

158,661

 

 

161,263

Other assets

 

8,500

 

 

8,500

 

 

8,500

 

Total assets

$

8,366,180

 

$

7,776,496

 

$

7,403,092

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

$

109,310

 

$

141,404

 

$

104,387

Other current liabilities

 

296,528

 

 

247,449

 

 

267,685

Accrued judgment under appeal

 

304,328

 

 

304,328

 

 

304,328

Notes payable – related parties

 

-

 

 

-

 

 

25,000

Current maturities of long-term debt

 

113,588

 

 

108,762

 

 

115,477

 

Total current liabilities

 

823,754

 

 

801,943

 

 

816,877

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

3,280,196

 

 

3,374,406

 

 

3,410,576

 

Total liabilities

 

4,103,950

 

 

4,176,349

 

 

4,227,453

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

74,531

 

 

74,381

 

 

74,381

Capital in excess of par

 

4,809,606

 

 

4,801,506

 

 

4,801,506

Treasury stock

 

(3,250)

 

 

(3,250)

 

 

(3,250)

Accumulated deficit

 

(618,657)

 

 

(1,272,490)

 

 

(1,696,998)

Total stockholders’ equity

 

4,262,230

 

 

3,600,147

 

 

3,175,639

Total liabilities and stockholders’ equity

$

8,366,180

 

$

7,776,496

 

$

7,403,092