Wednesday, 8 August 2018
· *Q3 attendance sales total $2,035,839*
· *Q3 attendance sales the 2^nd highest quarterly sales in Company history*
· *Strong financial position reflected in July 11, 2018 refinancing*
*PINE MOUNTAIN, GA / ACCESSWIRE / August 8, 2018 /* Parks! America, Inc. (OTC PINK: PRKA), today announced the results for its third fiscal quarter ended July 1, 2018.
*Third Quarter 2018 Highlights*
Total net sales for the fiscal quarter ended July 1, 2018 were $2,042,964, a decrease of $71,539, compared to $2,114,503 for the prior year fiscal quarter ended July 2, 2017. Park attendance based net sales decreased by $74,637 or 3.5%, while animal sales increased by $3,098.
The Company reported net income of $629,599 for the fiscal quarter ended July 1, 2018 compared to net income of $654,212 for the prior year fiscal quarter ended July 2, 2017, resulting in a decrease of $24,613. The decrease in net income during the third quarter of the 2018 fiscal year is primarily attributable to a decrease in attendance based net sales, increased insurance, compensation and advertising spending, higher cost of sales and a one-time legal settlement income in 2017, partially offset by a reduction in legal expense and lower income taxes.
*First Nine Months 2018 Highlights*
Total net sales for the first nine months of the 2018 fiscal year were $3,983,413, a decrease of $350,378, compared to $4,333,791 in the first nine months of the 2017 fiscal year. Park attendance based net sales decreased by $347,599 or 8.2%, and animal sales decreased by $2,779.
The Company reported net income of $460,062 for the first nine months of the 2018 fiscal year compared to net income of $824,955 for the first nine months of the 2017 fiscal year, resulting in a decrease of $364,893. Net income for the nine month period ended July 1, 2018 included a one-time deferred tax charge of $66,855, while the nine month period ended July 2, 2017 included $80,000 of one-time legal settlement income. The primary drivers for the remaining $218,038 decrease in net income during the first nine months of the 2018 fiscal year include a decrease in attendance based net sales, increased compensation, insurance and advertising spending, and higher asset disposal charges, partially offset by a reduction in legal expense and lower income taxes.
"Given the continuing impact of higher levels of precipitation we experienced in the third quarter of our 2018 fiscal year, we are encouraged by our attendance based sales for the quarter," commented Dale Van Voorhis, Chairman & CEO. "When the weather has been favorable, we continue to see strong attendance levels at each of our Parks. Our Park management teams delivered our second highest quarterly sales ever during the third quarter of our 2018 fiscal year, even with the weather headwind. This speaks to the quality and dedication of our management teams."
*Balance Sheet and Liquidity*
The Company had working capital of $3.19 million as of July 1, 2018 compared to working capital of $2.44 million as July 2, 2017. The year-over-year improvement in working capital is primarily reflective of the Company's operating results for the trailing 12 months, partially offset by capital expenditures and debt payments.
The Company's debt to equity ratio was 0.38 to 1.0 as of July 1, 2018, compared to 0.50 to 1.0 as of July 2, 2017.
On July 11, 2018, the Company completed a refinancing transaction (the "2018 Refinancing") with Synovus Bank ("Synovus"), which included a term loan in the original principal amount of $1,600,000 (the "2018 Term Loan") and a line of credit of up to $350,000 (the "2018 LOC"). The 2018 Term Loan bears interest at a rate of 5.0% per annum and is payable in monthly payments of approximately $22,672, based on a seven year amortization period. The 2018 Term Loan has a maturity date of June 11, 2021, with an option to renew at 5.0% per annum for an additional 49 month term. The 2018 LOC bears interest at a rate of 4.75% and interest only payments are due monthly. The LOC matures on July 11, 2021, with an option to renew for an additional three-year term.
"The 2018 Refinancing is a very positive reflection on our improved financial position," noted Mr. Van Voorhis. "We used the proceeds of the 2018 Term Loan, in addition to available cash of approximately $1,250,000, to retire the then outstanding principal balance of our previously outstanding term loan. This allowed us to lower our term loan interest rate by 200 basis points, while maintaining a strong cash position to support current operations. Compared to our prior term loan, we project aggregate interest expense savings in the range of $850,000 over the combined seven year term loan arrangement with Synovus."
*About Parks! America, Inc.*
Parks! America, Inc. (OTC PINK: 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 October 1, 2017, 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 October 1, 2017.
Todd R. White
Chief Financial Officer
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months and Nine Months Ended July 1, 2018 and July 2, 2017
For the three months ended
For the nine months ended
$ 2,035,839 $ 2,110,476 $ 3,912,058 $ 4,259,657
Sale of animals
7,125 4,027 71,355 74,134
*Total net sales*
2,042,964 2,114,503 3,983,413 4,333,791
Cost of sales
213,506 189,151 447,229 440,245
Selling, general and administrative
839,027 808,363 2,354,232 2,226,862
Depreciation and amortization
97,450 89,450 288,850 268,350
(Gain) loss on disposal of operating assets, net
- - 25,303 (309)
*Income from operations*
892,981 1,027,539 867,799 1,398,643
Other income (expense), net
4,938 82,472 13,792 87,131
Write-off of loan fees - prepayment
- - (12,495)
*Income before income taxes*
845,422 1,060,212 717,083 1,334,955
Income tax provision
215,823 406,000 257,021 510,000
$ 629,599 $ 654,212 $ 460,062 $ 824,955
*Income per share - basic and diluted*
$ 0.01 $ 0.01 $ 0.01 $ 0.01
*Weighted average shares outstanding (in 000's) - basic and diluted* 74,721 74,674 74,703 74,632 PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of July 1, 2018, October 1, 2017 and July 2, 2017 July 1,
$ 3,186,874 $ 3,204,043 $ 2,785,664
222,058 157,320 133,573
156,771 309,626 34,066
Total current assets
3,565,703 3,670,989 2,953,303
Property and equipment, net
6,694,802 6,464,850 6,555,394
Intangible assets, net
1,600 2,200 2,400
Deferred tax asset
- 160,355 375,405
12,050 9,199 9,199
$ 10,274,155 $ 10,307,593 $ 9,895,701
*LIABILITIES AND STOCKHOLDERS' EQUITY*
$ 21,240 $ 137,717 $ 42,330
Other current liabilities
264,417 281,155 355,765
Current portion of long-term debt, net
94,287 111,496 120,113
Total current liabilities
379,944 530,368 518,208
Long-term debt, net
2,635,841 2,990,417 3,026,384
3,015,785 3,520,785 3,544,592
74,721 74,671 74,671
Capital in excess of par
4,837,116 4,825,666 4,825,666
2,349,783 1,889,721 1,454,022
*Total stockholders' equity*
7,258,370 6,786,808 6,351,109
*Total liabilities and stockholders' equity*
$ 10,274,155 $ 10,307,593 $ 9,895,701
*SOURCE: *Parks! America, Inc.