PINE MOUNTAIN, Ga., May 2, 2019 /PRNewswire/ -- Parks! America, Inc. PRKA, today announced the results for its second fiscal quarter ended March 31, 2019.
Second Quarter Fiscal 2019 Highlights
Total net sales for the second fiscal quarter ended March 31, 2019 were $1,004,022, an increase of $59,924, compared to $944,098 for the prior year second fiscal quarter ended April 1, 2018. Park attendance based net sales increased by $85,218 or 9.3%, while animal sales decreased by $25,294.
The Company reported a net loss of $34,207 for the second fiscal quarter ended March 31, 2019 compared to a net loss of $34,660 for the prior year second fiscal quarter ended April 1, 2018, resulting in an improvement of $453, primarily attributable to an increase in attendance based net sales and lower interest expense, largely offset by higher compensation and depreciation expenses, as well as lower animal sales.
"Attendance based net sales were up 9.3% in the quarter, which we believe continues to demonstrate the power of the positive guest experience at our Wild Animal Safari Parks," commented Dale Van Voorhis, Chairman & CEO. "Each of our Parks delivered a strong spring break, which historically begins late in our second fiscal quarter."
First Six Months Fiscal 2019 Highlights
Total net sales for the first six months of the 2019 fiscal year were $2,020,721, an increase of $80,272, compared to $1,940,449 for the first six months of the 2018 fiscal year. Park attendance based net sales increased by $112,289 or 6.0%, while animal sales decreased by $32,017.
The Company reported a net loss of $49,690 for the first six months of the 2019 fiscal year compared to a net loss of $169,537 for the first six months of the 2018 fiscal year, resulting in an improvement of $119,847. Excluding one-time items related to the write-off of deferred loan fees and deferred tax adjustments in the 2018 first fiscal quarter, the Company's adjusted net loss for the first six months of the 2019 fiscal year improved by $44,147. The improvement in the Company's adjusted net loss during the six months of its 2019 fiscal year is primarily attributable to an increase in attendance based net sales and lower interest expense, largely offset by higher compensation and depreciation expenses, as well as lower animal sales and an increase in our adjusted income tax provision.
Balance Sheet and Liquidity
The Company had working capital of $2.34 million as of March 31, 2019, compared to working capital of $2.48 million as of April 1, 2018. The Company's debt to equity ratio was 0.19 to 1.0 as of March 31, 2019, compared to 0.42 to 1.0 as of April 1, 2018.
"The Company's lower debt to equity ratio and lower year to date interest expense reflect the refinancing we completed in July 2018," noted Mr. Van Voorhis. "We are well positioned both structurally and financially now that our 2019 fiscal year busy season has commenced."
About Parks! America, Inc.
Parks! America, Inc. 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 30, 2018, 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. 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 September 30, 2018.
Contact: | Todd R. White |
Chief Financial Officer | |
(706) 663-8744 | |
PARKS! AMERICA, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||
For the Three Months and Six Months ended March 31, 2019 and April 1, 2018 | |||||||||||||
For the three months ended | For the six months ended | ||||||||||||
March 31, 2019 | April 1, 2018 | March 31, 2019 | April 1, 2018 | ||||||||||
Net sales | $ | 1,003,797 | $ | 918,579 | $ | 1,988,508 | $ | 1,876,219 | |||||
Sale of animals | 225 | 25,519 | 32,213 | 64,230 | |||||||||
Total net sales | 1,004,022 | 944,098 | 2,020,721 | 1,940,449 | |||||||||
Cost of sales | 132,629 | 122,638 | 249,962 | 233,723 | |||||||||
Selling, general and administrative | 781,516 | 695,173 | 1,564,048 | 1,515,205 | |||||||||
Depreciation and amortization | 115,199 | 93,950 | 230,398 | 191,400 | |||||||||
(Gain) loss on disposal of operating assets, net | - | 26,022 | - | 25,303 | |||||||||
Income (loss) from operations | (25,322) | 6,315 | (23,687) | (25,182) | |||||||||
Other income (expense), net | 8,538 | 4,924 | 15,518 | 8,854 | |||||||||
Write-off of loan fees - prepayment | - | - | - | (12,495) | |||||||||
Interest expense | (19,223) | (51,656) | (38,821) | (99,516) | |||||||||
Loss before income taxes | (36,007) | (40,417) | (46,990) | (128,339) | |||||||||
Income tax provision | (1,800) | (5,757) | 2,700 | 41,198 | |||||||||
Net loss | $ | (34,207) | $ | (34,660) | $ | (49,690) | $ | (169,537) | |||||
Income per share - basic and diluted | $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.00) | |||||
Weighted average shares | |||||||||||||
outstanding (in 000's) - basic and diluted | 74,805 | 74,717 | 74,763 | 74,694 | |||||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||
RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET INCOME (1) | ||||||
For the Six Months Ended March 31, 2019 and April 1, 2018 | ||||||
For the six months ended | ||||||
March 31, 2019 | April 1, 2018 | |||||
Net loss | $ (49,690) | $ (169,537) | ||||
Write-off of loan fees - prepayment | - | 12,495 | ||||
Tax impact - write-off of loan fees-prepayment | - | (3,650) | ||||
Deferred tax adjustments | - | 66,855 | ||||
Adjusted net loss | $ (49,690) | $ (93,837) | ||||
(1) Reconciliation of Non-GAAP Disclosure Item - Adjusted Net Income | ||||||
Adjusted net income for the six months ended April 1, 2018 excludes the write-off of loan fees associated | ||||||
with a prepayment against the Company's 2013 Refinancing term loan, as well as deferred tax adjustments. Adjusted net income for the year ended October 1, 2017 excludes | ||||||
Given the one-time nature of these items, management believes excluding them from adjusted net income | ||||||
provides a better indication of year-over-year operating performance. | ||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
As of March 31, 2019, September 30, 2018 and April 1, 2018 | ||||||
March 31, 2019 | September 30, 2018 | April 1, 2018 | ||||
ASSETS | ||||||
Cash | $ 2,372,250 | $ 2,674,260 | $ 2,377,929 | |||
Inventory | 278,684 | 240,004 | 235,870 | |||
Prepaid expenses | 233,655 | 131,856 | 216,405 | |||
Total current assets | 2,884,589 | 3,046,120 | 2,830,204 | |||
Property and equipment, net | 6,683,429 | 6,614,835 | 6,704,625 | |||
Intangible assets, net | 1,000 | 1,400 | 1,800 | |||
Deferred tax asset | - | - | 93,500 | |||
Other assets | 12,050 | 12,050 | 10,426 | |||
Total assets | $ 9,581,068 | $ 9,674,405 | $ 9,640,555 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Accounts payable | $ 26,875 | $ 92,237 | $ 38,871 | |||
Other current liabilities | 319,140 | 219,443 | 216,255 | |||
Current portion of long-term debt, net | 199,078 | 195,198 | 92,373 | |||
Total current liabilities | 545,093 | 506,878 | 347,499 | |||
Long-term debt, net | 1,257,665 | 1,358,027 | 2,664,285 | |||
Total liabilities | 1,802,758 | 1,864,905 | 3,011,784 | |||
Stockholders' equity | ||||||
Common stock | 74,821 | 74,721 | 74,721 | |||
Capital in excess of par | 4,855,516 | 4,837,116 | 4,837,116 | |||
Treasury stock | (3,250) | (3,250) | (3,250) | |||
Retained earnings | 2,851,223 | 2,900,913 | 1,720,184 | |||
Total stockholders' equity | 7,778,310 | 7,809,500 | 6,628,771 | |||
Total liabilities and stockholders' equity | $ 9,581,068 | $ 9,674,405 | $ 9,640,555 | |||
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SOURCE Parks! America, Inc.
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