Parks! America (OTCMKTS:PRKA) conducted its earnings call for the first quarter of fiscal 2026, revealing key insights into its financial performance and operational strategies. The call, held on March 15, 2024, featured limited formal remarks, as management noted that no questions were submitted either in advance or during the webcast.
During the call, operator Doug Jaffe emphasized the importance of reviewing the company’s quarterly earnings release and Form 10-Q, which were filed with the Securities and Exchange Commission the previous Friday. He highlighted that the 10-Q contains detailed financial results and segment information relevant to shareholders.
Stock Repurchase Plan and Revenue Recognition Changes
No stock repurchase activity was reported for the quarter. Gannon, a key member of the management team, attributed the slow pace of the repurchase plan to administrative challenges. He described the company’s shares as illiquid, indicating that many shareholders have held onto their shares for an extended period, some even in physical form. Gannon reassured investors that the lack of early buybacks does not reflect disinterest but rather the time required to manage the plan effectively.
A significant change in the company’s revenue recognition policy was also discussed. Gannon explained that, historically, revenue from ticket sales could be delayed for up to a year if tickets were purchased but not scanned at the park. Under the new policy, ticket redemption will be streamlined. Gannon noted that tickets will no longer be redeemable for an entire year, which should simplify accounting processes. He characterized the expected financial impact of this change as minimal since most tickets are quickly used and scanned upon entry.
Increased Marketing Personnel Costs and Weather Impacts
As the call progressed, Gannon addressed anticipated increases in personnel costs tied to hiring additional marketing staff. The company plans to add “two to three people” to enhance its marketing efforts, which will encompass events, social media, and graphic design across all three parks. He emphasized that these costs will be allocated to the parks and reflected in segment income. Although Gannon did not specify whether these additional costs would affect profit margins, he acknowledged that overall personnel expenses would rise as the year progresses.
Weather conditions were also a topic of discussion. Gannon noted that favorable weather during the Christmas week positively influenced sales, though he did not consider it a primary factor. He suggested that shareholders compare Parks! America’s performance to larger peers in the theme park sector for broader context. Looking ahead, Gannon warned that adverse weather conditions, including ice storms and park closures, could negatively impact sales in the current quarter. He indicated that investors should prepare for potential sales dips during traditionally slow periods.
The call concluded without any questions from participants, following Gannon’s updates on the company’s operations and strategies.
Parks! America, based in Pine Mountain, Georgia, focuses on acquiring, developing, and operating local and regional theme parks in the United States. The company currently manages three Wild Animal Safari theme parks located in Pine Mountain, Georgia; Strafford, Missouri; and Bryan/College Station, Texas. Formerly known as Great American Family Parks, Inc., it rebranded to Parks! America, Inc. in June 2008.
