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8-K - FORM 8-K CURRENT REPORT - PARKS AMERICA, INCf8k050917_8k.htm


Exhibit 99.1 News Release


Date: May 10, 2017

News Release – Investor Update



Parks! America Reports Strong Net Sales Growth and

Results for the Second Quarter and First Six Months of Fiscal 2017


·

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, Georgia, May 10, 2017 – 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.



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“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.


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

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








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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




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