- Q1 F18 Attendance Revenues Increase 1.1%
- $300,000 Term Loan Prepayment in Q1 F18
PINE MOUNTAIN, GA / ACCESSWIRE / February 8, 2018 / Parks! America, Inc. (OTC PINK: PRKA) today announced the results for its first fiscal quarter ended December 31, 2017.
First Quarter 2018 Highlights
Total net sales for the fiscal quarter ended December 31, 2017 were $996,351, a decrease of $3,079, compared to $999,430 for the prior year fiscal quarter ended January 1, 2017. Park attendance based net sales increased by $10,376 or 1.1%, while animal sales decreased by $13,455.
The Company reported a net loss of $134,877 for the fiscal quarter ended December 31, 2017, compared to a net income of $5,227 for the prior year fiscal quarter ended January 1, 2017. The fiscal quarter ended December 31, 2017 included a one-time deferred tax charge of $66,855, primarily associated with the recently enacted Tax Cuts and Job Act (the "Tax Act"), as well as a $12,495 write-off of loan fees associated with a term loan prepayment during the quarter.
"Attendance based net sales were up 1.1% in the quarter, our lowest quarterly growth in the past four years," commented Dale Van Voorhis, Chairman & CEO. "We were up against tough year-over-year comps and several unfavorable weather events caused unplanned Park closures during the first quarter of our 2018 fiscal year. While we planned for better results, we believe factors out of our control were the primary driver for the disappointing sales growth in the quarter. We continue to invest in our business in preparation for the 2018 fiscal year busy season, which historically begins late in our second quarter."
Balance Sheet and Liquidity
The Company had working capital of $2.73 million as of December 31, 2017, compared to working capital of $1.34 million as of January 1, 2017. The year-over-year improvement in working capital is primarily reflective of our strong operating results for the trailing 12 months.
The Company's debt to equity ratio was 0.42 to 1.0 as of December 31, 2017, compared to 0.58 to 1.0 as of January 1, 2017.
"Based on our continued strong cash position, we elected to make a $300,000 prepayment against our term loan in December 2017," noted Mr. Van Voorhis. "This will effectively offset the 125 basis point interest rate increase that took effect in mid-January 2018. As our 2018 fiscal year progresses, we will continue evaluating options based on our strong cash position."
Recently Enacted Tax Reform
On December 22, 2017, the Tax Act was enacted into federal law, which includes significant changes to the U.S. corporate federal tax code. Among other changes, the Tax Act lowered the U.S. statutory corporate federal income tax rate from 35% to 21%. As the Company's 2018 fiscal year end falls on September 30, the U.S. statutory federal income tax rate for its 2018 fiscal year will be a blended rate of 24.5%, with the statutory rate of 21% applicable for its fiscal years beginning with 2019.
"We are grateful that the President and Congress took meaningful steps to improve the competitiveness of the U.S. federal tax code," commented Mr. Van Voorhis. "The lower federal income tax rate will have a meaningful impact on the future cash flows of our business, allowing us to reinvest in our facilities and people, as well as benefiting our shareholders."
About Parks! America, Inc.
Parks! America, Inc. (OTC PINK: 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 1, 2017, 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 1, 2017.
Contact:
Todd R. White
Chief Financial Officer
(706) 663-8744
[email protected]
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months December 31, 2017 and January 1, 2017
|
For the three months ended
|
||||||||
|
December 31,
2017
|
January 1,
2017
|
|||||||
|
Net sales
|
$ | 957,640 | $ | 947,264 | ||||
|
Sale of animals
|
38,711 | 52,166 | ||||||
|
Total net sales
|
996,351 | 999,430 | ||||||
|
Cost of sales
|
111,085 | 106,344 | ||||||
|
Selling, general and administrative
|
820,032 | 746,766 | ||||||
|
Depreciation and amortization
|
97,450 | 89,400 | ||||||
|
(Gain) loss on disposal of operating assets, net
|
(719) | - | ||||||
|
Income (loss) from operations
|
(31,497) | 56,920 | ||||||
|
Other income (expense), net
|
3,930 | 1,831 | ||||||
|
Write-off of loan fees - prepayment
|
(12,495) | - | ||||||
|
Interest expense
|
(47,860) | (50,224) | ||||||
|
Income (loss) before income taxes
|
(87,922) | 8,527 | ||||||
|
Income tax provision
|
46,955 | 3,300 | ||||||
|
Net (loss) income
|
$ | (134,877) | $ | 5,227 | ||||
|
Income (loss) per share - basic and diluted
|
$ | (0.00) | $ | 0.00 | ||||
|
Weighted average shares
|
||||||||
|
outstanding (in 000's) - basic and diluted
|
74,671 | 74,554 | ||||||
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31, 2017, October 1, 2017 and January 1, 2017
|
December 31,
2017
|
October 1,
2017
|
January 1,
2017
|
||||||||||
|
ASSETS
|
||||||||||||
|
Cash
|
$ | 2,692,281 | $ | 3,204,043 | $ | 1,394,449 | ||||||
|
Inventory
|
236,069 | 157,320 | 124,173 | |||||||||
|
Prepaid expenses
|
259,621 | 309,626 | 165,841 | |||||||||
|
Total current assets
|
3,187,971 | 3,670,989 | 1,684,463 | |||||||||
|
Property and equipment, net
|
6,506,588 | 6,464,850 | 6,484,550 | |||||||||
|
Intangible assets, net
|
2,000 | 2,200 | 2,800 | |||||||||
|
Deferred tax asset
|
93,500 | 160,355 | 777,124 | |||||||||
|
Other assets
|
9,199 | 9,199 | 9,199 | |||||||||
|
Total assets
|
$ | 9,799,258 | $ | 10,307,593 | $ | 8,958,136 | ||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
|
Liabilities
|
||||||||||||
|
Accounts payable
|
$ | 66,864 | $ | 137,717 | $ | 21,221 | ||||||
|
Other current liabilities
|
296,030 | 281,155 | 215,546 | |||||||||
|
Current portion of long-term debt, net
|
91,791 | 111,496 | 106,319 | |||||||||
|
Total current liabilities
|
454,685 | 530,368 | 343,086 | |||||||||
|
Long-term debt, net
|
2,692,642 | 2,990,417 | 3,083,669 | |||||||||
|
Total liabilities
|
3,147,327 | 3,520,785 | 3,426,755 | |||||||||
|
Stockholders' equity
|
||||||||||||
|
Common stock
|
74,671 | 74,671 | 74,681 | |||||||||
|
Capital in excess of par
|
4,825,666 | 4,825,666 | 4,825,656 | |||||||||
|
Treasury stock
|
(3,250) | (3,250) | (3,250) | |||||||||
|
Retained earnings
|
1,754,844 | 1,889,721 | 634,294 | |||||||||
|
Total stockholders' equity
|
6,651,931 | 6,786,808 | 5,531,381 | |||||||||
|
Total liabilities and stockholders' equity
|
$ | 9,799,258 | $ | 10,307,593 | $ | 8,958,136 | ||||||
SOURCE: Parks! America, Inc.