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PARKS AMERICA, INC (PRKA)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue declined sequentially and year over year as off‑season seasonality, a ticketing accounting change, and lower Georgia attendance weighed on results; Q1 FY25 revenue was $1.77M and net income was $0.19M, aided by $0.57M of D&O insurance proceeds related to the prior proxy contest .
  • Missouri showed clear operational traction: revenue +22.9% YoY (attendance +16.1%) and segment loss narrowed materially; Georgia remained pressured by competition and tornado rebuild overhang; Texas was roughly flat on a pro forma basis .
  • Non‑GAAP metrics normalized lower after removing proxy insurance benefit: Adjusted EBITDA was $(0.02)M vs $(0.06)M YoY, highlighting a still-breakeven off‑season run‑rate absent unusual items .
  • Strategic setup into peak season: new ad agency, heavier FY25 Georgia CapEx focused on a one‑time restroom project, and potential reverse/forward split discussed as a priority subject to liquidity; credit facilities may be explored as backup but not needed near term .

What Went Well and What Went Wrong

  • What Went Well

    • Missouri momentum: revenue +22.9% YoY and attendance +16.1%, with local execution credited to new management; consolidated segment margin improved to 13.1% from 11.8% YoY driven in part by Missouri .
    • Cost discipline and mix: advertising and marketing expense fell to $123,896 from $241,826 YoY, helping segment margins in Georgia despite lower sales; consolidated SG&A also declined YoY .
    • Proxy cost recovery: receipt of $567,157 of D&O insurance proceeds turned GAAP profitability positive for the quarter, boosting reported net income and pre‑tax income .

  • What Went Wrong

    • Georgia softness: revenue down 11.0% YoY (pro forma −8.3%) with attendance −13.6% amid increased competition and lingering tornado rebuild effects; management also flagged weak past advertising efficacy in Georgia .
    • Ticketing accounting shift masked underlying park sales: the switch to a new platform reduced reported park revenues though net profit impact is neutral; consolidated park revenues −5.0% YoY (pro forma −2.2%) .
    • Texas variability: lower animal sales and higher staffing costs drove a wider segment loss despite flat pro forma revenue; management reiterated structural challenges at Aggieland (Texas) versus Missouri .

Financial Results

Consolidated results by quarter (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($)3,448,744 2,607,691 1,770,458
Income before income taxes ($)87,070 252,312 276,941
Net income ($)67,870 N/A193,041
Diluted EPS ($)0.00 N/A0.00

Year-over-year comparisons (Q1 FY25 vs Q1 FY24)

MetricQ1 2024Q1 2025
Total revenues ($)1,897,625 1,770,458
Park revenues ($)1,809,234 1,719,030
Animal sales ($)88,391 51,428
Income from operations ($)(458,897) 321,028
Income before income taxes ($)(474,455) 276,941
Net income ($)(369,255) 193,041
Adjusted EBITDA ($)(58,750) (24,251)

Margins snapshot

MarginQ1 2024Q1 2025
Segment operating margin % (Consolidated)11.8% 13.1%
Net income margin %(19.5%) 10.9%

Segment breakdown (Q1 FY25 vs Q1 FY24)

SegmentRevenue Q1 2024 ($)Revenue Q1 2025 ($)Segment income (loss) Q1 2024 ($)Segment income (loss) Q1 2025 ($)Segment operating margin % Q1 2024Segment operating margin % Q1 2025
Georgia1,240,010 1,110,718 365,842 333,946 29.5% 30.1%
Missouri241,721 289,761 (106,768) (49,228) (44.2%) (17.0%)
Texas415,894 369,979 (36,025) (51,999) (8.7%) (14.1%)
Consolidated1,897,625 1,770,458 223,049 232,719 11.8% 13.1%

KPIs and balance sheet items

KPIQ1 2024Q1 2025
Georgia attendance YoY—−13.6%
Missouri attendance YoY—+16.1%
Advertising & marketing expense ($)241,826 123,896
Capital expenditures ($)230,166 601,476
Cash & short-term investments ($)3,324,368 (Sep 29, 2024) 2,661,202 (Dec 29, 2024)
Term loans principal outstanding ($)3,498,535 (Sep 29, 2024) 3,525,036 (Dec 29, 2024)
Working capital ($)1.60M (Sep 29, 2024) 1.91M (Dec 29, 2024)

Notes:

  • Ticketing platform change reduced reported park revenues but was net‑profit neutral; pro forma park revenue decline was ~2.2% YoY vs reported −5.0% .
  • Proxy contest insurance proceeds of $567,157 boosted GAAP earnings; Adjusted metrics strip this benefit .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPSFY25None providedNone provided—
Capital expenditures (Georgia focus)FY25None provided“A lot of CapEx at Georgia” in FY25; at least 50% tied to one restroom project; CapEx expected to drop ~50% thereafter (directional) New qualitative framework
Liquidity/credit facilitiesFY25N/AMay explore revolver as backup; plan to maintain cash cushion without tapping lines in normal course New qualitative framework
Corporate actions2025N/AReverse/forward split prioritized, subject to cash and annual meeting timing; functions as buyback for fractional shares New qualitative framework

No formal quantitative guidance was issued. Management avoided precise amounts to steer clear of forward guidance .

Earnings Call Themes & Trends

TopicQ3 2024 (prior two)Q4 2024 (prior one)Q1 2025 (current)Trend
Advertising/marketingNoted transition to new ticketing; no call transcript; PR emphasized cash management New ad agency hired; advertising running below normal until spring; lower FY24 ad spend highlighted Ad agency “terrific” but implementation begins in-season; expect ads to ramp from March; marketing was “a really big issue” Improving execution into peak season
Georgia operationsPR focused on authorized restroom CapEx and cash stewardship Georgia starved for capital historically; large FY25 restroom project ahead Elevated FY25 CapEx at Georgia; one-time project ~≥50% of Georgia CapEx; normalization thereafter One-time CapEx spike then normalize
Missouri operationsSegment improving in Q3 FY24 Missouri EBITDA potential with higher sales; economies of scale “A lot of positive momentum in Missouri” attributed to new management Positive
Aggieland (Texas)—Appraisal at $9.2M total; $6.3M land; evaluation ongoing; decision timing around FY25 end Texas still challenged; pro forma revenue flat; segment loss widened Under review, structurally harder than MO
Capital structure/liquidityRefinancing and proxy costs noted in PR Discussed reverse split framework and timing dependence on liquidity Explore revolver as backup; seasonal cash trough around early March; maintain cushion Prudent, liquidity-first
Ticketing/accounting——Ticketing change reduced reported revenue; profit neutral Neutral to profit, optics headwind

Management Commentary

  • “Our season really starts in March… you’ll maybe see seasonally higher advertising… once we start reporting March type numbers.”
  • “The marketing situation was a lot worse than I thought… you’re going to see probably new websites… and new advertising campaigns” .
  • “Missouri… there’s a lot of positive momentum… purely due to who we have managing that, Patty” .
  • “You’re going to see a lot of CapEx at Georgia for this fiscal year… at least 50% of that is due to 1 project… a permanent restroom to replace [porta potties]” .
  • On liquidity: “Low point for cash should probably be the first week of March… we plan to hold some cash… we’re not going to run it down” .
  • On reverse/forward split: “Very, very high priority… but… contingent on having adequate cash… likely tied to annual meeting timing” .
  • On valuations: “Aggieland appraised for $9.2 million, of which $6.3 million was the land” .

Q&A Highlights

  • CapEx and project cadence: Georgia restroom project is a large one‑off; FY25 CapEx elevated, then normalizes; no other unusual >$100k projects expected .
  • Liquidity and revolver: Management may explore a revolver as a backstop, but does not expect to need it; plans for seasonal cash cushion and stress tests for shocks (e.g., tornado) .
  • Reverse/forward split: Board discussed; intent is to reduce administrative burden and function as a targeted buyback of fractional shares; execution depends on shareholder vote and cash levels .
  • Missouri vs Texas: Missouri’s trajectory tied to better on‑the‑ground execution and scalable upside; Texas remains structurally tougher given location and invested capital .
  • Capital allocation platform: Using PRKA as an investment vehicle (buying outside equities/businesses) seen as inefficient for shareholders relative to buybacks/dividends; focus remains on core assets .

Estimates Context

  • Wall Street consensus from S&P Global (revenue and EPS) for PRKA’s Q1 FY25 was unavailable via our SPGI access today due to API limits and likely thin coverage; therefore, no beat/miss vs consensus can be determined at this time. We will update when available.
  • Management does not provide formal quantitative guidance; directional commentary is included above .

Key Takeaways for Investors

  • Seasonality and accounting optics vs underlying health: Reported revenue was pressured by off‑season and ticketing accounting, but profit impact is neutral; focus on March–September performance for true run‑rate .
  • Missouri is the near‑term growth driver: double‑digit attendance gains and better execution improved segment performance; watch for sustainability through peak season .
  • Georgia is a “fix and invest” story: one‑time restroom project should improve guest experience; advertising ramp and competitive response are critical to re‑accelerate attendance .
  • Adjusted results show a breakeven off‑season core: stripping D&O insurance, Adjusted EBITDA still negative but improving YoY; peak season operating leverage will be decisive .
  • Balance sheet/liquidity prudence: refinancing complete, working capital improved to $1.91M; management intends to maintain cash cushions and may add a revolver as optionality .
  • Corporate action catalyst: reverse/forward split can streamline holder base and function as a targeted buyback of fractional shares; timing dependent on shareholder approval and cash .
  • Medium‑term portfolio shaping: Texas/Aggieland remains under review; appraisal data provides a valuation anchor while operating changes play out through FY25 peak season .

Appendix: Source Documents

  • Q1 FY25 10‑Q and financials for period ended Dec 29, 2024 .
  • Q1 FY25 8‑K/press release and segment tables .
  • Q1 FY25 earnings call transcript (Feb 10, 2025) .
  • FY24 press release (Q4 context) .
  • Q3 FY24 press release and 8‑K (trend context) .