UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
____________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
February 10, 2016 |
| 000-51254 |
Date of Report (Date of earliest event reported) |
| Commission File Number |
PARKS! AMERICA, INC.
(Exact name of registrant as specified in its charter)
Nevada |
| 91-0626756 |
(State or other jurisdiction of incorporation or organization) |
| (I.R.S. Employer Identification Number) |
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1300 Oak Grove Road Pine Mountain, GA 31822 | ||
(Address of Principal Executive Offices) (Zip Code) | ||
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(706) 663-8744 | ||
(Registrant’s telephone number, including area code) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
. Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
. Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
. Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
. Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On February 10, 2016, Parks America, Inc. (the “Company”) issued a news release (the “News Release”) reporting information regarding its results of operations for the three months ended January 3, 2016 and its financial condition as of January 3, 2016. A copy of the News Release is attached as Exhibit 99.1 to this Report on Form 8-K.
The information in the News Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the News Release shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(a)
Financial statements of businesses acquired:
Not applicable.
(b)
Pro forma financial information:
Not applicable.
(c)
Shell company transactions:
Not applicable.
(d)
Exhibits:
Exhibit No. | Description of Exhibit |
99.1 | News release issued by Parks! America, Inc. on February 10, 2016 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 10, 2016
PARKS! AMERICA, INC.
By: /s/ Todd R. White Todd R. White
Name: Todd R. White
Title: Chief Financial Officer
Date: February 10, 2016
News Release – Investor Update
Parks! America Reports First Quarter Fiscal 2016 Results
· Q1 reported total net sales increase $126,570 or 19.6%
· Q1 reported and comparable 14-week attendance based net sales increase by 22.0% and 12.3%, respectively
· Double-digit percentage growth in attendance based net sales in six of the last seven quarters
· Q1 net loss in-line with slow-season expectations
PINE MOUNTAIN, Georgia, February 10, 2016 – Parks! America (OTCPink: PRKA), which owns and operates Wild Animal Safari in Pine Mountain, Georgia and Wild Animal Safari in Strafford, Missouri, today announced results for its first fiscal quarter ended January 3, 2016.
The Company’s 2016 fiscal year will end on October 2, 2016 and will be comprised of 53 weeks. The Company’s 2015 fiscal year ended on September 27, 2015 and was comprised of 52 weeks. The additional week in the Company’s 2016 fiscal year occurred in the three months ended January 3, 2016. As such, Park attendance based net sales are discussed on a reported, as well as a comparable 14-week, basis for the fiscal quarter ended January 3, 2016 as compared to the prior year.
First Fiscal Quarter 2016 Highlights
For the fiscal quarter ended January 3, 2016, the Company generated total net sales of $772,612, an increase of $126,570 or 19.6%, driven by higher attendance and higher average revenue per guest. Combined Park attendance based net sales increased by $136,533 or 22.0%, partially offset by a $9,963 decrease in animal sales. On a comparable 14-week basis, combined Park attendance based net sales increased $83,045 or 12.3%.
The Company reported a seasonal net loss of $137,164 for the fiscal quarter ended January 3, 2016, compared to a seasonal net loss of $125,155 for the fiscal quarter ended December 28, 2104. The marginally higher seasonal net loss was attributable to higher compensation and advertising expenses, as well as higher cost of sales, partially offset by higher total net sales.
“We are pleased with the continuing exceptional growth in attendance based net sales, especially during one of our off-season quarters,” commented Dale Van Voorhis, Chairman & CEO. “In fact, we have generated double-digit percentage growth in attendance based net sales in six of the last seven quarters versus the comparable quarter in the prior year. Both of our Parks performed well and continue to deliver an outstanding wild animal safari experience to our guests.”
Balance Sheet and Liquidity
The Company’s working capital was $235,489 as of January 3, 2016, compared to $444,602 as of September 27, 2015. This decrease in working capital reflects negative operating cash flow and capital expenditures during the first three months of the Company’s slow season. The Company’s debt to equity ratio was 1.00 to 1.00 as of January 3, 2016, compared to 0.97 to 1.00 as of September 27, 2015, again reflecting the seasonal nature of the Company’s operating results and cash flows.
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-Q for the fiscal quarter ended January 3, 2016 and our Form 10-K for the fiscal year ended September 27, 2015, are available on the Company’s website, http://www.animalsafari.com.
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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. A further description of these risks, uncertainties and other matters can be found in the Company 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 27, 2015.
Contact: Todd R. White
Chief Financial Officer
(706) 663-8744
todd.white@animalsafari.com
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PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||
For the Three Months January 3, 2016 and December 28, 2014 | ||||||
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| For the three months ended | ||||
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| January 3, 2016 |
| December 28, 2014 | ||
Net sales | $ | 758,508 |
| $ | 621,975 | |
Sale of animals |
| 14,104 |
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| 24,067 | |
Total net sales |
| 772,612 |
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| 646,042 | |
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Cost of sales |
| 99,621 |
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| 70,847 | |
Selling, general and administrative |
| 672,248 |
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| 565,604 | |
Depreciation and amortization |
| 85,400 |
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| 81,250 | |
Loss from operations |
| (84,657) |
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| (71,659) | |
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Other income (expense), net |
| 2,096 |
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| 2,066 | |
Interest expense |
| (52,001) |
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| (52,960) | |
Amortization of loan fees |
| (2,602) |
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| (2,602) | |
Loss before income taxes |
| (137,164) |
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| (125,155) | |
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Income tax provision |
| - |
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| - | |
Net loss | $ | (137,164) |
| $ | (125,155) | |
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Loss per share - basic and diluted | $ | (0.00) |
| $ | (0.00) | |
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Weighted average shares |
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| outstanding (in 000's) - basic and diluted |
| 74,406 |
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| 74,247 |
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PARKS! AMERICA, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
As of January 3, 2016 and September 27, 2015 | ||||||
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| January 3, 2016 |
| September 27, 2015 | ||
ASSETS |
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Cash – unrestricted | $ | 151,829 |
| $ | 563,096 | |
Cash – restricted |
| 456,492 |
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| 456,492 | |
Inventory |
| 148,723 |
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| 139,324 | |
Prepaid expenses |
| 109,609 |
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| 87,633 | |
| Total current assets |
| 866,653 |
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| 1,246,545 |
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Property and equipment, net |
| 6,413,504 |
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| 6,362,790 | |
Intangible assets, net |
| 159,659 |
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| 158,661 | |
Other assets |
| 8,500 |
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| 8,500 | |
| Total assets | $ | 7,448,316 |
| $ | 7,776,496 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities |
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Accounts payable | $ | 67,132 |
| $ | 141,404 | |
Other current liabilities |
| 149,483 |
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| 247,449 | |
Accrued judgment under appeal |
| 304,328 |
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| 304,328 | |
Current maturities of long-term debt |
| 110,221 |
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| 108,762 | |
| Total current liabilities |
| 631,164 |
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| 801,943 |
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Long-term debt |
| 3,345,919 |
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| 3,374,406 | |
| Total liabilities |
| 3,977,083 |
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| 4,176,349 |
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Stockholders’ equity |
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Common stock |
| 74,531 |
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| 74,381 | |
Capital in excess of par |
| 4,809,606 |
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| 4,801,506 | |
Treasury stock |
| (3,250) |
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| (3,250) | |
Accumulated deficit |
| (1,409,654) |
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| (1,272,490) | |
Total stockholders’ equity |
| 3,471,233 |
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| 3,600,147 | |
Total liabilities and stockholders’ equity | $ | 7,448,316 |
| $ | 7,776,496 | |
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