Skip to main content

Market Overview

Parks! America, Inc. Reports Q3 Fiscal 2019 Results

Share:

PINE MOUNTAIN, Ga., Aug. 6, 2019 /PRNewswire/ -- Parks! America, Inc. (OTC:PRKA), today announced the results for its third fiscal quarter ended June 30, 2019.

Third Quarter Fiscal 2019 Highlights

Total net sales for the third fiscal quarter ended June 30, 2019 were $2,136,461, an increase of $93,497, compared to $2,042,964 for the prior year third fiscal quarter ended July 1, 2018. Park attendance based net sales increased by $80,310 or 3.9%, and animal sales increased by $13,187.

The Company reported net income of $618,695 for the third fiscal quarter ended June 30, 2019 compared to reported net income of 629,599 for the prior year third fiscal quarter ended July 1, 2018, resulting in a decrease of $10,904. Excluding one-time items related to the after-tax effect of the tornado damage asset write-offs and cleanup and repair expenses at the Company's Missouri Park, our adjusted net income for third fiscal quarter ended June 30, 2019 would have been $674,739, resulting in a year-over-year improvement of $45,140.

First Nine Months Fiscal 2019 Highlights

Total net sales for the first nine months of the 2019 fiscal year were $4,157,182, an increase of $173,769, compared to $3,983,413 for the first nine months of the 2018 fiscal year. Park attendance based net sales increased by $192,599 or 4.9%, while animal sales decreased by $18,830.

The Company reported net income of $569,005 for the first nine months of the 2019 fiscal year compared to reported net income of $460,062 for the first nine months of the 2018 fiscal year, resulting in an increase of $108,943. Excluding one-time items related to the after-tax effect of the tornado damage asset write-offs and cleanup and repair expenses at the Company's Missouri Park in the 2019 fiscal year, the write-off of deferred loan fees and deferred tax adjustments in the 2018 fiscal year, the Company's adjusted net income for the first nine months of the 2019 fiscal year improved by $89,287. The improvement in the Company's adjusted net income during the first nine 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 operating and depreciation expenses, as well as lower animal sales and an increase in its adjusted income tax provision.

"We are pleased to report that our attendance based net sales were up nearly 5.0% for the first nine months of our 2019 fiscal year," commented Dale Van Voorhis, Chairman & CEO. "Our attendance has grown 4.3%. We thank our operations teams for their continuing efforts in attaining these results and to our guests for choosing to 'take a ride on the wild side'."

Missouri Park Tornado

On May 21, 2019, the Company's Missouri Park was struck by a tornado and sustained property damage, primarily to the "walk about" area, the more traditional zoo-like section of the park, as well as to several auxiliary buildings. The Missouri Park was closed at the time of this event and no employees were injured.

While a few animals sustained non-life threatening injuries, no animals were killed or escaped. The Company has a pending property insurance claim which it believes will cover a portion of the tornado related repair costs and cleanup expenses. However, since the Company has not received a proposed settlement from its insurance carrier, it has not recorded any insurance proceeds to offset the costs and expenses incurred through June 30, 2019.

"Mike Newman, our Vice President of Safari Operations, and our entire Missouri Park team are to be commended for their handling of this matter," noted Mr. Van Voorhis. "Once the immediate danger had passed, this team worked diligently on cleanup and repairs, and the Missouri Park reopened on May 24, 2019, in time for the Memorial Day weekend. Given the circumstances, we count ourselves blessed that there was no loss of life and the property damage was relatively minor."

Balance Sheet and Liquidity

The Company had working capital of $2.96 million as of June 30, 2019, compared to working capital of $3.19 million as of July 1, 2018. The Company's debt to equity ratio was 0.17 to 1.0 as of June 30, 2019, compared to 0.38 to 1.0 as of July 1, 2018.

About Parks! America, Inc.

Parks! America, Inc. (OTC: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
todd.white@animalsafari.com

 

PARKS! AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months and Nine Months ended June 30, 2019 and July 1, 2018











For the three months ended


For the nine months ended



June 30, 2019


July 1, 2018


June 30, 2019


July 1, 2018

Net sales

$             2,116,149


$            2,035,839


$             4,104,657


$            3,912,058

Sale of animals

20,312


7,125


52,525


71,355

Total net sales

2,136,461


2,042,964


4,157,182


3,983,413










Cost of sales

198,006


213,506


447,968


447,229

Selling, general and administrative

886,002


839,027


2,450,050


2,354,232

Depreciation and amortization

115,199


97,450


345,597


288,850

Tornado damage and expenses, net

70,944


-


70,944


-

(Gain) loss on disposal of operating assets, net

15,847


-


15,847


25,303

Income from operations

850,463


892,981


826,776


867,799










Other income (expense), net

5,843


View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com