8-K
PARKS AMERICA, INC (PRKA)
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 6, 2020 | 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 | (I.R.S. Employer Identification Number) |
| incorporation or organization) | |
| 1300 Oak Grove Road<br><br><br>Pine Mountain, GA 31822 | |
| (Address of Principal Executive Offices) (Zip Code) | |
| (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 6, 2020, Parks! America, Inc. (the “Company”) issued a news release (the “News Release”) reporting information regarding its results of operations for the three month period ended December 29, 2019 and its financial condition as of December 29, 2019. 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 6, 2020 |
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 6, 2020 | ||
|---|---|---|
| PARKS! AMERICA, INC. | ||
| By: | /s/ Todd R. White | |
| Name: | Todd R. White | |
| Title: | Chief Financial Officer |
Exhibit 99.1 News release issued by Parks! America, Inc. on February 6, 2020
Date: February 6, 2020
News Release – Investor Update
Parks! America, Inc. Reports Q1 Fiscal 2020 Results
| Q1 F20 park attendance levels increase 5.7% |
|---|
| Q1 F20 attendance based sales total $983,408 |
| Q1 F20 net loss increases by $73,668 |
PINE MOUNTAIN, Georgia, February 6, 2020 – Parks! America, Inc. (OTCPink: PRKA), today announced the results for its first fiscal quarter ended December 29, 2019.
First Quarter Fiscal 2019 Highlights
Total net sales for the first fiscal quarter ended December 29, 2019 were $995,485, a decrease of $21,214, compared to $1,016,699 for the prior year first fiscal quarter ended December 30, 2018. Park attendance based net sales were $983,408, resulting in a decrease of $1,303 or 0.1%, while animal sales decreased by $19,911.
The Company reported a net loss of $89,151 for the first fiscal quarter ended December 29, 2019 compared to a net loss of $15,483 for the prior year first fiscal quarter ended December 30, 2018, resulting in an increase of $73,668. The increase in the Company’s net loss during the first quarter of its 2020 fiscal year is primarily attributable to higher legal and professional fee spending, lower animal sales, and higher cost of sales, partially offset by an increase in the income tax benefit.
“Park attendance levels increased 5.7% in the quarter, while overall attendance based revenues were essentially flat, primarily reflecting strong sales of advance admissions sold to guests online, for which we offer a discount,” commented Dale Van Voorhis, Chairman & CEO. “As is normal for this time of year, we are in preparation for the upcoming busy season, which historically begins in the latter half of March.”
Balance Sheet and Liquidity
The Company had working capital of $3.28 million as of December 29, 2019, compared to working capital of $2.40 million as of December 30, 2018. The Company’s debt to equity ratio was 0.15 to 1.0 as of December 29, 2019, compared to 0.19 to 1.0 as of December 30, 2018.
“We are continuing our due diligence with respect to the non-binding letter of intent we announced on January 16, 2020, to acquire substantially all the assets of Aggieland Safari, Inc. (“Aggieland”), noted Mr. Van Voorhis. “We anticipate obtaining debt financing of $5.0 to $5.5 million to fund roughly two-thirds of Aggieland purchase price of $7.5 million plus associated transaction costs. We believe this level of financing is reasonable for the Company as a whole and is justified by this acquisition opportunity. While a number of aspects of this proposed acquisition remain to be completed, we continue to be excited about bringing Aggieland into our family of wild animal safari parks.”
1
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 29, 2019, 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 September 29, 2019.
Contact:Todd R. White
Chief Financial Officer
(706) 663-8744
todd.white@animalsafari.com
2
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ended December 29, 2019 and December 30, 2018
| For the three months ended | ||||
|---|---|---|---|---|
| December 29,<br><br><br>2019 | December 30,<br><br><br>2018 | |||
| Net sales | $ | 983,408 | $ | 984,711 |
| Sale of animals | 12,077 | 31,988 | ||
| Total net sales | 995,485 | 1,016,699 | ||
| Cost of sales | 126,860 | 117,333 | ||
| Selling, general and administrative | 851,217 | 782,532 | ||
| Depreciation and amortization | 117,500 | 115,199 | ||
| Income (loss) from operations | (100,092) | 1,635 | ||
| Other income (expense), net | 7,962 | 6,980 | ||
| Interest expense | (17,721) | (19,598) | ||
| Loss before income taxes | (109,851) | (10,983) | ||
| Income tax provision | (20,700) | 4,500 | ||
| Net loss | $ | (89,151) | $ | (15,483) |
| Income per share - basic and diluted | $ | (0.00) | $ | (0.00) |
| Weighted average shares | ||||
| outstanding (in 000's) - basic and diluted | 74,821 | 74,721 |
3
PARKS! AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 29, 2019, September 29, 2019 and December 30, 2018
| December 29,<br><br><br>2019 | September 29,<br><br><br>2019 | December 30,<br><br><br>2018 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $ | 3,547,549 | $ | 3,787,815 | $ | 2,418,860 |
| Inventory | 223,201 | 195,201 | 273,904 | |||
| Prepaid expenses | 222,352 | 147,529 | 150,697 | |||
| Total current assets | 3,993,102 | 4,130,545 | 2,843,461 | |||
| Property and equipment, net | 6,645,420 | 6,620,405 | 6,689,898 | |||
| Intangible assets, net | 400 | 600 | 1,200 | |||
| Other assets | 11,786 | 11,786 | 12,050 | |||
| Total assets | $ | 10,650,708 | $ | 10,763,336 | $ | 9,546,609 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Liabilities | ||||||
| Accounts payable | $ | 41,353 | $ | 96,270 | $ | 16,309 |
| Other current liabilities | 465,935 | 384,160 | 230,889 | |||
| Current portion of long-term debt, net | 207,055 | 204,355 | 198,378 | |||
| Total current liabilities | 714,343 | 684,785 | 445,576 | |||
| Long-term debt, net | 1,100,978 | 1,154,013 | 1,307,016 | |||
| Total liabilities | 1,815,321 | 1,838,798 | 1,752,592 | |||
| Stockholders’ equity | ||||||
| Common stock | 74,821 | 74,821 | 74,721 | |||
| Capital in excess of par | 4,855,516 | 4,855,516 | 4,837,116 | |||
| Treasury stock | (3,250) | (3,250) | (3,250) | |||
| Retained earnings | 3,908,300 | 3,997,451 | 2,885,430 | |||
| Total stockholders’ equity | 8,835,387 | 8,924,538 | 7,794,017 | |||
| Total liabilities and stockholders’ equity | $ | 10,650,708 | $ | 10,763,336 | $ | 9,546,609 |
4