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 7, 2019 |
| 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))
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Item 2.02. Results of Operations and Financial Condition.
On February 7, 2019, Parks! America, Inc. (the “Company”) issued a news release (the “News Release”) reporting information regarding its results of operations for the three months ended December 30, 2018 and its financial condition as of December 30, 2018. 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 |
News release issued by Parks! America, Inc. on February 7, 2019 | |
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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 7, 2019
PARKS! AMERICA, INC.
By: /s/ Todd R. White
Name: Todd R. White
Title: Chief Financial Officer
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Date: February 7, 2019
News Release – Investor Update
| Parks! America, Inc. Reports Q1 Fiscal 2019 Results |
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| Q1 F19 attendance based net sales increase by 2.8% |
| Q1 F19 adjusted net loss improves by $43,694 |
PINE MOUNTAIN, Georgia, February 7, 2019 – Parks! America, Inc. (OTCPink: PRKA), today announced the results for its first fiscal quarter ended December 30, 2018.
First Quarter Fiscal 2019 Highlights
Total net sales for the first fiscal quarter ended December 30, 2018 were $1,016,699, an increase of $20,348, compared to $996,351 for the prior year first fiscal quarter ended December 31, 2017. Park attendance based net sales increased by $27,071 or 2.8%, while animal sales decreased by $6,723.
The Company reported a net loss of $15,483 for the first fiscal quarter ended December 30, 2018 compared to a net loss of $134,877 for the prior year first fiscal quarter ended December 31, 2017, resulting in an improvement of $119,394. Excluding one-time items related to the write-off of deferred loan fees and deferred tax adjustments in the prior year first fiscal quarter ended December 31, 2017, our adjusted net loss for the first fiscal quarter ended December 30, 2018 improved by $43,694. The improvement in the Company’s adjusted net loss during the first quarter of its 2019 fiscal year is primarily attributable to an increase in attendance based net sales, lower net operating costs, and lower interest expense, partially offset by higher depreciation expense, higher cost of sales, and an increase in our adjusted income tax provision.
“Attendance based net sales were up 2.8% in the quarter, as we believe wet weather continued to unfavorably impact our attendance levels,” commented Dale Van Voorhis, Chairman & CEO. “We continue to invest in our business in preparation for the upcoming busy season, which historically begins late in our second fiscal quarter.”
Balance Sheet, Liquidity and Long-Term Shareholder Value
The Company had working capital of $2.40 million as of December 30, 2018 compared to working capital of $2.73 million as of December 31, 2017. The Company’s debt to equity ratio was 0.19 to 1.0 as of December 30, 2018, compared to 0.42 to 1.0 as of December 31, 2017.
“The refinancing we completed in July 2018 continues to have a positive reflection on our results of operations and financial position,” noted Mr. Van Voorhis. “The Company’s Board of Directors is highly focused on enhancing shareholder value and increasing the value of the Company for the benefit of all of its stakeholders. The Company’s Board periodically reviews a wide range of strategic options with the focus on maximizing long-term shareholder value. The Company’s Board does not intend to disclose additional details regarding its long-term strategic plans unless or until further disclosure is appropriate.”
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 September 30, 2018, is 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. 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
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||
For the Three Months Ended December 30, 2018 and December 31, 2017 | ||||||
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| For the three months ended | ||||
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| December 30, 2018 |
| December 31, 2017 | ||
Net sales | $ | 984,711 |
| $ | 957,640 | |
Sale of animals |
| 31,988 |
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| 38,711 | |
Total net sales |
| 1,016,699 |
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| 996,351 | |
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Cost of sales |
| 117,333 |
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| 111,085 | |
Selling, general and administrative |
| 782,532 |
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| 820,032 | |
Depreciation and amortization |
| 115,199 |
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| 97,450 | |
(Gain) loss on disposal of operating assets, net |
| - |
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| (719) | |
Income (loss) from operations |
| 1,635 |
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| (31,497) | |
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Other income (expense), net |
| 6,980 |
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| 3,930 | |
Write-off of loan fees - prepayment |
| - |
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| (12,495) | |
Interest expense |
| (19,598) |
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| (47,860) | |
Loss before income taxes |
| (10,983) |
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| (87,922) | |
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Income tax provision |
| 4,500 |
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| 46,955 | |
Net loss | $ | (15,483) |
| $ | (134,877) | |
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Income 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 |
| 74,721 |
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| 74,671 |
PARKS! AMERICA, INC. AND SUBSIDIARIES |
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RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET LOSS (1) |
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For the Three Months Ended December 30, 2018 and December 31, 2017 |
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| For the three months ended |
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| December 30, 2018 |
| December 31, 2017 |
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Net loss | $ | (15,483) |
| $ | (134,877) |
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Write-off of loan fees - prepayment |
| - |
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| 12,495 |
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Tax impact - write-off of loan fees-prepayment |
| - |
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| (3,650) |
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Deferred tax adjustments |
| - |
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| 66,855 |
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Adjusted net loss | $ | (15,483) |
| $ | (59,177) |
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(1) Reconciliation of Non-GAAP Disclosure Item - Adjusted Net Loss | |||||||
Adjusted net loss for the three months December 31, 2017, excludes the write-off of loan fees |
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associated with a prepayment against the Company's 2013 Refinancing term loan, as well as deferred |
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tax adjustments. Given the one-time nature of these items, the Company believes excluding them |
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from its adjusted net loss provides a better indication of its year-over-year operating performance. |
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PARKS! AMERICA, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||||
As of December 30, 2018, September 30, 2018 and December 31, 2017 | |||||||||
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| December 30, 2018 |
| September 30, 2018 |
| December 31, 2017 | |||
ASSETS |
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Cash | $ | 2,418,860 |
| $ | 2,674,260 |
| $ | 2,692,281 | |
Inventory |
| 273,904 |
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| 240,004 |
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| 236,069 | |
Prepaid expenses |
| 150,697 |
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| 131,856 |
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| 259,621 | |
| Total current assets |
| 2,843,461 |
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| 3,046,120 |
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| 3,187,971 |
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Property and equipment, net |
| 6,689,898 |
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| 6,614,835 |
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| 6,506,588 | |
Intangible assets, net |
| 1,200 |
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| 1,400 |
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| 2,000 | |
Deferred tax asset |
| - |
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| - |
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| 93,500 | |
Other assets |
| 12,050 |
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| 12,050 |
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| 9,199 | |
| Total assets | $ | 9,546,609 |
| $ | 9,674,405 |
| $ | 9,799,258 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities |
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Accounts payable | $ | 16,309 |
| $ | 92,237 |
| $ | 66,864 | |
Other current liabilities |
| 230,889 |
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| 219,443 |
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| 296,030 | |
Current portion of long-term debt, net |
| 198,378 |
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| 195,198 |
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| 91,791 | |
| Total current liabilities |
| 445,576 |
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| 506,878 |
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| 454,685 |
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Long-term debt, net |
| 1,307,016 |
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| 1,358,027 |
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| 2,692,642 | |
| Total liabilities |
| 1,752,592 |
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| 1,864,905 |
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| 3,147,327 |
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Stockholders’ equity |
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Common stock |
| 74,721 |
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| 74,721 |
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| 74,671 | |
Capital in excess of par |
| 4,837,116 |
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| 4,837,116 |
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| 4,825,666 | |
Treasury stock |
| (3,250) |
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| (3,250) |
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| (3,250) | |
Retained earnings |
| 2,885,430 |
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| 2,900,913 |
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| 1,754,844 | |
Total stockholders’ equity |
| 7,794,017 |
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| 7,809,500 |
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| 6,651,931 | |
Total liabilities and stockholders’ equity | $ | 9,546,609 |
| $ | 9,674,405 |
| $ | 9,799,258 | |
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