PARKS AMERICA, INC (PRKA)·Q2 2025 Earnings Summary

Executive Summary

• Q2 revenue grew 2.2% year over year to $2.002M and 13.1% sequentially, driven by stronger March (spring break) traffic; the quarter still posted a consolidated pre-tax loss of $(0.329)M, narrower than the prior-year’s $(1.345)M loss largely due to the absence of contested proxy costs in Q2 FY24 .
• Segment mix: Texas delivered double-digit revenue growth (+14.3% YoY), Georgia was effectively flat (-0.2%), and Missouri declined (-6.6% YoY), underscoring differing regional trajectories .
• Management highlighted upcoming catalysts not captured in Q2 results: a new Aggieland GM (start April 2) and price increases beginning in May, alongside a focus on advertising effectiveness to drive EBITDA and free cash flow per share .
• Corporate actions completed during the quarter: reverse/forward split effective April 30 and an OTCQX market upgrade announced May 2, which could improve investor visibility and trading dynamics .

What Went Well and What Went Wrong

What Went Well

• Sequential and year-over-year revenue growth with a stronger March seasonality: “the increased sales year-over-year was due to a spring break… January and February… were not seeing the same trends as we saw in March” .
• Texas park momentum: Q2 revenue +14.3% YoY ($581k vs. $509k), with park-level gross profit more than doubled cited in Q&A context, supporting management’s view that marketing and operational improvements can lift performance .
• Narrower consolidated loss vs. Q2 FY24: Q2 FY25 pre-tax loss $(329)k vs. $(1,345)k, with FY24’s quarter burdened by “contested proxy and related matters” (Q2 FY24: $(1.165)M), a non-recurring item that did not hit Q2 FY25 .

What Went Wrong

• The quarter remained loss-making: consolidated loss before income taxes of $(328,762), reflecting corporate expense, D&A, interest and limited seasonality leverage in January–February .
• Georgia weakness: management attributed attendance/revenue pressure to increased competition and “poor marketing,” emphasizing the need to improve paid advertising effectiveness to restore growth .
• Elevated capital intensity: Georgia’s restroom project made FY25 CapEx atypically high—“as high as $800,000 more than… normal CapEx,” dampening near-term free cash flow .

Financial Results

Segment revenue breakdown (seasonality and mix):

KPIs / Balance Sheet trend:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic focus on returns: “It is not necessarily the case that the company will… shrink or grow… If a park is retained… belief that the return on capital will… be adequate… [if] acquired… return on capital… will be adequate” .
• Aggieland outlook and timing: “new general manager… April 2… results in April will start to reflect the new general manager and in May… higher pricing… not captured by this quarterly results” .
• Industry benchmarks: “A very well performing park… capable of doing the 30% EBITDA margin… about a third of EBITDA… for capex… free cash flow… teens after tax” .
• Key levers to grow per-share cash flow: “best… increase in price… second best… increase in per capita spending… biggest opportunity… better return on advertising” .
• Georgia CapEx specifics: “CapEx… as high as $800,000 more than… normal CapEx… due to a restroom project… unusual spending is a restroom project” .

Q&A Highlights

• Portfolio strategy: Management frames sell/retain/acquire decisions through return-on-capital lens; Texas is overcapitalized (land intensity) but can generate positive EBITDA; decision depends on market justification and capital intensity .
• Georgia decline drivers and outlook: Increased competition and poor paid advertising cited; management sees primary remedy in improved marketing effectiveness .
• CapEx cadence/normalization: FY25 features an atypical restroom project at Georgia; CapEx should normalize thereafter; off-season timing preferred for major projects .
• Reverse/forward split and fractional payouts: Finalized amounts deferred to the next quarter; price tied to recent market trading; objective includes cost reduction and shareholder structure optimization .
• Balance sheet and cash: Accounts payable changes tied to proxy-related insurance receipts; credit facilities considered as backup, but no imminent use .

Estimates Context

• Wall Street consensus for PRKA’s revenue and EPS for Q2 2025 was unavailable via S&P Global; no published quarterly estimates were found for Q4 2024, Q1 2025, or Q2 2025 (Primary EPS Consensus Mean; Revenue Consensus Mean; # of Estimates unavailable).*
• Implication: Investors should anchor on company-reported segment data and pre-tax results; near-term estimate revisions will likely hinge on observed May–September seasonality and advertising effectiveness disclosures .

*Values retrieved from S&P Global.

Key Takeaways for Investors

• Q2 revenue inflected positively on seasonality (+2.2% YoY; +13.1% QoQ), but January–February were soft; March drove the quarter, consistent with management’s commentary .
• Loss narrowed materially vs. Q2 FY24 due to the absence of proxy-related charges; monitoring of corporate expenses and interest costs remains important for path to profitability .
• Texas is showing better traction (+14.3% YoY revenue), while Georgia remains challenged; near-term performance hinges on advertising ROI and product improvements in Georgia .
• FY25 CapEx is temporarily elevated (Georgia restroom project), expected to normalize thereafter—watch free cash flow seasonality vs. spend cadence .
• Operational catalysts not yet in numbers: Aggieland GM and price increases starting May; look for impact in Q3/Q4 prints .
• Corporate visibility improved via reverse/forward split and OTCQX upgrade; potential trading/liquidity benefits but fundamentals will drive longer-term multiples .
• Actionable: Track summer (June–September) revenue and per-capita spend, advertising efficiency metrics, and any updates on portfolio optimization (sell/retain/acquire) driven by return on capital .