- Q2 attendance based net sales increased by 36.3%
- First six months reported and comparable 26-week attendance based net sales increased by 31.0% and 33.6%, respectively
- Double-digit percentage growth in attendance based net sales in 10 of the last 12 fiscal quarters
- YTD Net Income increased by $248,559 to $170,743
PINE MOUNTAIN, Ga., May 10, 2017 (GLOBE NEWSWIRE) -- Parks! America (OTCPink:PRKA), announced today the results for its second quarter and six months ended April 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 26-week, basis for the six months ended April 2, 2017 as compared to the prior year. (Note, reported attendance based net sales for the three month periods ended April 2, 2017 and April 3, 2016 are already on a comparable 13-week basis).
Second Quarter 2017 Highlights
Reported total net sales for the fiscal quarter ended April 2, 2017 increased by $336,006 or 38.0%, to $1,219,858, primarily driven by higher attendance and higher average revenue per guest. Park attendance based net sales increased by $320,288 or 36.3%, while animal sales increased by $15,718.
The Company reported net income of $165,516 for the fiscal quarter ended April 2, 2017 compared to $59,348 for the fiscal quarter ended April 3, 2016, resulting in an increase of $106,168. The improvement in net income during the second quarter of the 2017 fiscal year was primarily attributable to higher total net sales, partially offset by higher cost of sales, legal fees, advertising and general operating expenses, as well as higher income taxes.
First Six Months 2017 Highlights
Reported total net sales for the first six months of the 2017 fiscal year increased by $562,824 or 34.0%, to $2,219,288, primarily driven by higher attendance and higher average revenue per guest. Reported combined Park attendance based net sales increased by $509,044 or 31.0%, while animal sales increased by $53,780. On a comparable 26-week basis, Park attendance based net sales increased $540,793 or 33.6%.
The Company reported net income of $170,743 for the six months ended April 2, 2017 compared to a net loss of $77,816 for the six months ended April 3, 2016, resulting in an improvement of $248,559. The improvement in net income during the first six months of the 2017 fiscal year was primarily attributable to higher total net sales, partially offset by higher cost of sales, legal fees, general operating expenses, and higher 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 six months of our 2017 fiscal year, especially at our Georgia Park,” 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 10 of the last 12 fiscal quarters.”
Balance Sheet and Liquidity
The Company had working capital of $1.44 million as of April 2, 2017 compared to working capital of $285,140 as of April 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 0.56 to 1.00 as of April 2, 2017, compared to 0.96 to 1.00 as of April 3, 2016.
“We continue to be pleased with the continuing improvements in our working capital and debt to equity ratio,” noted Mr. Van Voorhis. “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.”
Subsequent Event – Contingency Resolution
On April 21, 2017, the Company closed a settlement and release agreement dated March 30, 2017 to settle a lawsuit titled Parks! America, Inc. vs. Eastland, et al., Case No. 09-A-5996 in the Eighth Judicial District of Nevada. “This settlement brings closure to a multi-year legal matter,” commented Mr. Van Voorhis. “Resolution of this matter allows management to focus our efforts on driving our business and continuing to implement our long-term strategy.”
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 Six Months Ended April 2, 2017 and April 3, 2016 | |||||||||||||||
| For the three months ended | For the six months ended | ||||||||||||||
| April 2, 2017 | April 3, 2016 | April 2, 2017 | April 3, 2016 | ||||||||||||
| Net sales | $ | 1,201,917 | $ | 881,629 | $ | 2,149,181 | $ | 1,640,137 | |||||||
| Sale of animals | 17,941 | 2,223 | 70,107 | 16,327 | |||||||||||
| Total net sales | 1,219,858 | 883,852 | 2,219,288 | 1,656,464 | |||||||||||
| Cost of sales | 144,750 | 108,316 | 251,094 | 207,937 | |||||||||||
| Selling, general and administrative | 671,733 | 570,886 | 1,418,499 | 1,243,134 | |||||||||||
| Depreciation and amortization | 89,450 | 85,200 | 178,900 | 170,600 | |||||||||||
| (Gain) loss on disposal of operating assets, net | (259 | ) | - | (309 | ) | - | |||||||||
| Income from operations | 314,184 | 119,450 | 371,104 | 34,793 | |||||||||||
| Other income (expense), net | 2,828 | 1,926 | 4,659 | 4,022 | |||||||||||
| Interest expense | (50,796 | ) | (56,628 | ) | (101,020 | ) | (111,231 | ) | |||||||
| Income (loss) before income taxes | 266,216 | 64,748 | 274,743 | (72,416 | ) | ||||||||||
| Income tax provision | 100,700 | 5,400 | 104,000 | 5,400 | |||||||||||
| Net income (loss) | $ | 165,516 | $ | 59,348 | $ | 170,743 | $ | (77,816 | ) | ||||||
| Income (loss) per share - basic and diluted | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | (0.00 | ) | ||||||
| Weighted average shares | |||||||||||||||
| outstanding (in 000's) - basic and diluted | 74,681 | 74,531 | 74,618 | 74,467 | |||||||||||
| PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| As of April 2, 2017, October 2, 2016 and April 3, 2016 | ||||||||||
| April 2, 2017 | October 2, 2016 | April 3, 2016 | ||||||||
| ASSETS | ||||||||||
| Cash – unrestricted | $ | 1,539,742 | $ | 1,482,777 | $ | 387,378 | ||||
| Cash – restricted | - | 456,492 | 456,492 | |||||||
| Inventory | 129,323 | 107,573 | 138,474 | |||||||
| Prepaid expenses | 101,560 | 87,760 | 66,611 | |||||||
| Total current assets | 1,770,625 | 2,134,602 | 1,048,955 | |||||||
| Property and equipment, net | 6,589,991 | 6,432,897 | 6,403,891 | |||||||
| Intangible assets, net | 2,600 | 3,000 | 3,400 | |||||||
| Deferred tax asset | 701,624 | 777,124 | - | |||||||
| Other assets | 9,199 | 8,500 | 8,500 | |||||||
| Total assets | $ | 9,074,039 | $ | 9,356,123 | $ | 7,464,746 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Liabilities | ||||||||||
| Accounts payable | $ | 9,377 | $ | 24,106 | $ | 71,251 | ||||
| Other current liabilities | 205,475 | 231,392 | 166,057 | |||||||
| Accrued judgment award | - | 372,416 | 304,328 | |||||||
| Notes payable – line of credit | - | - | 120,700 | |||||||
| Current portion of long-term debt, net | 118,363 | 104,652 | 101,479 | |||||||
| Total current liabilities | 333,215 | 732,566 | 763,815 | |||||||
| Long-term debt, net | 3,043,927 | 3,113,603 | 3,170,350 | |||||||
| Total liabilities | 3,377,142 | 3,846,169 | 3,934,165 | |||||||
| Stockholders’ equity | ||||||||||
| Common stock | 74,681 | 74,531 | 74,531 | |||||||
| Capital in excess of par | 4,825,656 | 4,809,606 | 4,809,606 | |||||||
| Treasury stock | (3,250 | ) | (3,250 | ) | (3,250 | ) | ||||
| Retained earnings (accumulated deficit) | 799,810 | 629,067 | (1,350,306 | ) | ||||||
| Total stockholders’ equity | 5,696,897 | 5,509,954 | 3,530,581 | |||||||
| Total liabilities and stockholders’ equity | $ | 9,074,039 | $ | 9,356,123 | $ | 7,464,746 | ||||