- Q3 attendance based net sales increased by 16.0%
- First nine months reported and comparable 39-week attendance based net sales increased by 23.1% and 24.3%, respectively
- Double-digit percentage growth in attendance based net sales in 11 of the last 13 fiscal quarters
- Q3 and YTD Income from Operations increased by $195,624 and $531,935, respectively
PINE MOUNTAIN, Ga., Aug. 09, 2017 (GLOBE NEWSWIRE) -- Parks! America, Inc. (OTCPink:PRKA), today announced the results for its third quarter and nine months ended July 2, 2017.
The Company’s 2017 fiscal year will end on October 1, 2017 and will be comprised of 52 weeks. The Company’s 2016 fiscal year ended on October 2, 2016 and was comprised of 53 weeks. The additional week in the 2016 fiscal year occurred within the three months ended January 2, 2016. As such, Park attendance based net sales are discussed on a reported, as well as a comparable 39-week, basis for the nine months ended July 2, 2017 as compared to the prior year. (Note, reported attendance based net sales for the three month periods ended July 2, 2017 and July 3, 2016 are already on a comparable 13-week basis).
Third Quarter 2017 Highlights
Reported total net sales for the fiscal quarter ended July 2, 2017 increased by $295,363 or 16.2%, to $2,114,503, primarily driven by higher attendance and higher average revenue per guest. Park attendance based net sales increased by $291,336 or 16.0%, while animal sales increased by $4,027.
The Company generated income from operations of $1,027,539 for the fiscal quarter ended July 2, 2017 compared to $831,915 for the fiscal quarter ended July 3, 2016, resulting in an increase of $195,624, primarily driven by strong attendance sales growth.
The Company reported net income of $645,212 for the fiscal quarter ended July 2, 2017 compared to $731,649 for the fiscal quarter ended July 3, 2016, resulting in a decrease of $77,437. Excluding a one-time legal settlement gain and normalizing effective income tax rates, third quarter 2017 fiscal year adjusted net income was $605,812, resulting in an increase of $122,663.
First Nine Months 2017 Highlights
Reported total net sales for the first nine months of the 2017 fiscal year increased by $858,187, or 24.7%, to $4,333,791, primarily driven by higher attendance and higher average revenue per guest. Reported combined Park attendance based net sales increased by $800,380 or 23.1%, and animal sales increased $57,807. On a comparable 39-week basis, Park attendance based net sales increased $832,129 or 24.3%.
The Company generated income from operations of $1,398,643 for the nine months ended July 2, 2017 compared to $866,708 for the nine months ended July 3, 2016, resulting in an increase of $531,935, primarily driven by strong attendance sales growth.
The Company reported net income of $824,955 for the nine months ended July 2, 2017 compared to a net income of $653,833 for the nine months ended July 3, 2016, resulting in an increase of $171,122. Excluding a one-time legal settlement gain and normalizing effective income tax rates, adjusted net income for the first nine months of the 2017 fiscal year was $776,555, resulting in an increase of $338,222.
“The robust growth in our attendance based net sales, particularly at our Georgia Park, continued during the third quarter of our 2017 fiscal year,” commented Dale Van Voorhis, Chairman & CEO. “On a comparable week basis, we have achieved double-digit percentage year-over-year growth in attendance based net sales in 11 of the last 13 fiscal quarters. Our operations teams have done an exemplary job of continuing to deliver an outstanding wild animal safari experience to our guests while effectively managing accelerated attendance growth. They are to be commended.”
Balance Sheet and Liquidity
The Company had working capital of $2.44 million as of July 2, 2017 compared to working capital of $1.01 million as of July 3, 2016. The year-over-year improvement in working capital is primarily reflective of the strong operating cash flow generated over the trailing twelve months.
The Company’s debt to equity ratio was 0.50 to 1.00 as of July 2, 2017, compared to 0.76 to 1.00 as of July 3, 2016.
“Our strong attendance based sales growth and strong operating costs controls have driven continuous improvement in our working capital and debt to equity ratio over the past three fiscal years,” noted Mr. Van Voorhis. “Our focus remains on delivering an outstanding wild animal safari experience for our guests and our improved financial position puts us in a strong position to build for the future.”
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 October 2, 2016, 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 2, 2016.
| PARKS! AMERICA, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| For the Three Months and Nine Months Ended July 2, 2017 and July 3, 2016 | |||||||||||||||||
| For the three months ended | For the nine months ended | ||||||||||||||||
| July 2, 2017 | July 3, 2016 | July 2, 2017 | July 3, 2016 | ||||||||||||||
| Net sales | $ | 2,110,476 | $ | 1,819,140 | $ | 4,259,657 | $ | 3,459,277 | |||||||||
| Sale of animals | 4,027 | - | 74,134 | 16,327 | |||||||||||||
| Total net sales | 2,114,503 | 1,819,140 | 4,333,791 | 3,475,604 | |||||||||||||
| Cost of sales | 189,151 | 182,141 | 440,245 | 390,078 | |||||||||||||
| Selling, general and administrative | 808,363 | 717,261 | 2,226,862 | 1,960,395 | |||||||||||||
| Depreciation and amortization | 89,450 | 85,200 | 268,350 | 255,800 | |||||||||||||
| (Gain) loss on disposal of operating assets, net | - | 2,623 | (309 | ) | 2,623 | ||||||||||||
| Income from operations | 1,027,539 | 831,915 | 1,398,643 | 866,708 | |||||||||||||
| Other income (expense), net | 82,472 | 1,978 | 87,131 | 6,000 | |||||||||||||
| Interest expense | (49,799 | ) | (52,144 | ) | (150,819 | ) | (163,375 | ) | |||||||||
| Income before income taxes | 1,060,212 | 781,749 | 1,334,955 | 709,333 | |||||||||||||
| Income tax provision | 406,000 | 50,100 | 510,000 | 55,500 | |||||||||||||
| Net income | $ | 654,212 | $ | 731,649 | $ | 824,955 | $ | 653,833 | |||||||||
| Income per share - basic and diluted | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
| Weighted average shares | |||||||||||||||||
| outstanding (in 000's) - basic and diluted | 74,674 | 74,531 | 74,632 | 74,488 | |||||||||||||
| PARKS! AMERICA, INC. AND SUBSIDIARIES | |||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET INCOME (1) | |||||||||||||||||
| For the Three Months and Nine Months Ended July 2, 2017 and July 3, 2016 | |||||||||||||||||
| For the three months ended | For the nine months ended | ||||||||||||||||
| July 2, 2017 | July 3, 2016 | July 2, 2017 | July 3, 2016 | ||||||||||||||
| Net Income | $ | 654,212 | $ | 731,649 | $ | 824,955 | $ | 653,833 | |||||||||
| Other income - settlement income | (80,000 | ) | - | (80,000 | ) | - | |||||||||||
| Tax impact - settlement income | 31,600 | - | 31,600 | - | |||||||||||||
| Normalized tax provision | - | (248,500 | ) | - | (215,500 | ) | |||||||||||
| Adjusted net income | $ | 605,812 | $ | 483,149 | $ | 776,555 | $ | 438,333 | |||||||||
| (1) Reconciliation of Non-GAAP Disclosure Item - Adjusted Net Income | |||||||||||||||||
| Adjusted net income excludes income from a legal settlement and normalizes the effective income tax rates for all | |||||||||||||||||
| periods presented, which management believes provides a better indication of year-over-year operating performance. | |||||||||||||||||
| PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of July 2, 2017, October 2, 2016 and July 3, 2016 | ||||||||||||
| July 2, 2017 | October 2, 2016 | July 3, 2016 | ||||||||||
| ASSETS | ||||||||||||
| Cash – unrestricted | $ | 2,785,664 | $ | 1,482,777 | $ | 1,191,745 | ||||||
| Cash – restricted | - | 456,492 | 456,492 | |||||||||
| Inventory | 133,573 | 107,573 | 135,424 | |||||||||
| Prepaid expenses | 34,066 | 87,760 | 41,755 | |||||||||
| Total current assets | 2,953,303 | 2,134,602 | 1,825,416 | |||||||||
| Property and equipment, net | 6,555,394 | 6,432,897 | 6,378,210 | |||||||||
| Intangible assets, net | 2,400 | 3,000 | 3,200 | |||||||||
| Deferred tax asset | 375,405 | 777,124 | - | |||||||||
| Other assets | 9,199 | 8,500 | 8,500 | |||||||||
| Total assets | $ | 9,895,701 | $ | 9,356,123 | $ | 8,215,326 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Accounts payable | $ | 42,330 | $ | 24,106 | $ | 109,310 | ||||||
| Other current liabilities | 355,765 | 231,392 | 296,528 | |||||||||
| Accrued judgment award | - | 372,416 | 304,328 | |||||||||
| Current portion of long-term debt, net | 120,113 | 104,652 | 103,180 | |||||||||
| Total current liabilities | 518,208 | 732,566 | 813,346 | |||||||||
| Long-term debt, net | 3,026,384 | 3,113,603 | 3,139,750 | |||||||||
| Total liabilities | 3,544,592 | 3,846,169 | 3,953,096 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock | 74,671 | 74,531 | 74,531 | |||||||||
| Capital in excess of par | 4,825,666 | 4,809,606 | 4,809,606 | |||||||||
| Treasury stock | (3,250 | ) | (3,250 | ) | (3,250 | ) | ||||||
| Retained earnings (accumulated deficit) | 1,454,022 | 629,067 | (618,657 | ) | ||||||||
| Total stockholders’ equity | 6,351,109 | 5,509,954 | 4,262,230 | |||||||||
| Total liabilities and stockholders’ equity | $ | 9,895,701 | $ | 9,356,123 | $ | 8,215,326 | ||||||