EX-99.1 2 f8k020619_ex99z1.htm EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Press Release

 

Date: February 7, 2019

News Release – Investor Update

 

 

 

Parks! America, Inc. Reports Q1 Fiscal 2019 Results

 

 

 

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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PARKS! AMERICA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months Ended December 30, 2018 and December 31, 2017

 

 

 

 

 

 

For the three months ended

 

 

December 30, 2018

 

December 31, 2017

Net sales

$

984,711

 

$

957,640

Sale of animals

 

31,988

 

 

38,711

Total net sales

 

1,016,699

 

 

996,351

 

 

 

 

 

 

 

Cost of sales

 

117,333

 

 

111,085

Selling, general and administrative

 

782,532

 

 

820,032

Depreciation and amortization

 

115,199

 

 

97,450

(Gain) loss on disposal of operating assets, net

 

-

 

 

(719)

Income (loss) from operations

 

1,635

 

 

(31,497)

 

 

 

 

 

 

 

Other income (expense), net

 

6,980

 

 

3,930

Write-off of loan fees - prepayment

 

-

 

 

(12,495)

Interest expense

 

(19,598)

 

 

(47,860)

Loss before income taxes

 

(10,983)

 

 

(87,922)

 

 

 

 

 

 

 

Income tax provision

 

4,500

 

 

46,955

Net loss

$

(15,483)

 

$

(134,877)

 

 

 

 

 

 

 

Income per share - basic and diluted

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

 

Weighted average shares

 

 

 

 

 

 

outstanding (in 000's) - basic and diluted

 

74,721

 

 

74,671

 

 

PARKS! AMERICA, INC. AND SUBSIDIARIES

 

RECONCILIATION OF NON-GAAP MEASURE - ADJUSTED NET LOSS (1)

 

For the Three Months Ended December 30, 2018 and December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

December 30, 2018

 

December 31, 2017

 

Net loss

$

(15,483)

 

$

(134,877)

 

Write-off of loan fees - prepayment

 

-

 

 

12,495

 

Tax impact - write-off of loan fees-prepayment

 

-

 

 

(3,650)

 

Deferred tax adjustments

 

-

 

 

66,855

 

Adjusted net loss

$

(15,483)

 

$

(59,177)

 

 

 

 

 

 

 

 

(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

 

associated with a prepayment against the Company's 2013 Refinancing term loan, as well as deferred

 

tax adjustments. Given the one-time nature of these items, the Company believes excluding them

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 30, 2018

 

September 30, 2018

 

December 31, 2017

ASSETS

 

 

 

 

 

 

 

 

Cash

$

2,418,860

 

$

2,674,260

 

$

2,692,281

Inventory

 

273,904

 

 

240,004

 

 

236,069

Prepaid expenses

 

150,697

 

 

131,856

 

 

259,621

 

Total current assets

 

2,843,461

 

 

3,046,120

 

 

3,187,971

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

6,689,898

 

 

6,614,835

 

 

6,506,588

Intangible assets, net

 

1,200

 

 

1,400

 

 

2,000

Deferred tax asset

 

-

 

 

-

 

 

93,500

Other assets

 

12,050

 

 

12,050

 

 

9,199

 

Total assets

$

9,546,609

 

$

9,674,405

 

$

9,799,258

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

$

16,309

 

$

92,237

 

$

66,864

Other current liabilities

 

230,889

 

 

219,443

 

 

296,030

Current portion of long-term debt, net

 

198,378

 

 

195,198

 

 

91,791

 

Total current liabilities

 

445,576

 

 

506,878

 

 

454,685

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

1,307,016

 

 

1,358,027

 

 

2,692,642

 

Total liabilities

 

1,752,592

 

 

1,864,905

 

 

3,147,327

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

74,721

 

 

74,721

 

 

74,671

Capital in excess of par

 

4,837,116

 

 

4,837,116

 

 

4,825,666

Treasury stock

 

(3,250)

 

 

(3,250)

 

 

(3,250)

Retained earnings

 

2,885,430

 

 

2,900,913

 

 

1,754,844

Total stockholders’ equity

 

7,794,017

 

 

7,809,500

 

 

6,651,931

Total liabilities and stockholders’ equity

$

9,546,609

 

$

9,674,405

 

$

9,799,258


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