Overview

Parks! America, Inc. is a company that owns and operates three regional safari parks in the United States through its wholly owned subsidiaries. The company’s parks are located in Georgia, Missouri, and Texas, and experience increased seasonal attendance typically from late March through early September.

Contested Proxy and Related Matters

In late 2023, Focused Compounding Fund, LP submitted a demand for a special shareholder meeting to consider proposals to remove the current board of directors and elect a new board. The special meeting was held in February 2024, but Focused Compounding’s proposal did not receive sufficient votes to pass. The company subsequently adopted a rights plan, which expired in January 2025. At the company’s annual meeting in June 2024, four of Focused Compounding’s nominees were elected to the board, along with three of the company’s nominees. The company incurred $2.04 million in expenses related to the contested proxy matter in fiscal 2024.

Reverse/Forward Stock Split

In March 2025, shareholders approved a 1-for-500 reverse stock split followed by a 5-for-1 forward stock split, effective April 30, 2025. The goal was to reduce the large number of stockholders owning relatively few shares and the associated administrative costs.

Financial Performance

Second Quarter 2025 vs Second Quarter 2024:

• Total revenue increased 2.2% to $2.00 million
• Park revenue increased 2.9% to $1.98 million
• Segment income decreased 16.9% to $222,421
• Net loss was $247,762 compared to $1.00 million in the prior year

Year-to-Date 2025 vs Year-to-Date 2024:

• Total revenue decreased 2.2% to $3.77 million
• Park revenue decreased 0.9% to $3.70 million (0.5% decrease on a pro forma basis excluding customer transaction fees)
• Segment income decreased 7.2% to $455,140
• Net loss was $54,721 compared to $1.37 million in the prior year

The company’s three parks had mixed performance, with the Georgia and Missouri parks seeing declines in revenue and segment income, while the Texas park had improvements. Corporate expenses and interest expense also increased year-over-year.

Liquidity and Capital Resources

As of March 30, 2025, the company had $1.22 million in working capital and $3.37 million in total long-term debt. Cash used in operating activities decreased year-over-year, while cash used in investing activities also declined due to the maturity of short-term investments. The company refinanced its term loan in the first quarter of 2025.

Outlook

The company continues to face challenges from competition, weather, and other factors impacting attendance and financial performance at its parks. Management is focused on improving operations and profitability, while also addressing the contested proxy matter that resulted in changes to the board of directors.