Parks! America (OTCMKTS:PRKA) recently conducted its earnings call for the first quarter of fiscal 2026, revealing updates on operational strategies and financial policies. The session, which featured minimal prepared remarks and no live questions, was led by operator Doug Jaffe, who emphasized the importance of reviewing the company’s quarterly filings for detailed information.
During the call, Jaffe noted that the company had filed its quarterly earnings release and Form 10-Q with the Securities and Exchange Commission on the prior Friday. He encouraged shareholders to examine the Form 10-Q for an in-depth understanding of financial results, including specific segment performance.
Stock Buyback Plan Under Scrutiny
One notable point discussed was the absence of activity in the company’s stock repurchase plan during the quarter. Gannon, a company representative, explained that the slow pace was primarily due to administrative challenges and the illiquid nature of the company’s shares. He indicated that many shareholders have held their investments for an extended period, some even in physical form. Gannon assured that the lack of significant repurchases does not reflect a disinterest in buying back shares but rather the time required to implement the plan effectively.
Changes to Revenue Recognition
Gannon highlighted a significant change in the company’s revenue recognition policy related to ticket redemption. Historically, if a ticket was purchased but not scanned at the park, revenue could be delayed for up to a year, as tickets were available for redemption during the following year. Under the revised policy, tickets will no longer be redeemable for an entire year. Gannon characterized this accounting adjustment as a minor item, stating that most tickets are quickly purchased and used, with revenue recognized at the point of entry.
The change aims to streamline accounting practices, making them more straightforward and efficient.
Increased Marketing Personnel Costs
As the call progressed, Gannon addressed anticipated increases in personnel costs due to planned additions in the marketing department. He indicated that the company expects to hire “two to three people” to bolster marketing efforts across its three parks. These new hires will support various marketing initiatives such as events, social media, and graphic design. Gannon clarified that these costs would be allocated to the parks and reflected in segment income.
While he did not provide specific guidance on how these additional personnel expenses might affect profit margins, he acknowledged that overall personnel costs are expected to rise significantly during the year as these full-time roles are filled.
Weather’s Impact on Revenue
Weather conditions also emerged as a topic of discussion. Gannon noted that weather was particularly favorable during the week of Christmas, which could have positively influenced sales by “a couple percent” at each park. He suggested that comparing Parks! America’s performance with larger industry peers could offer insights into whether weather significantly impacted revenue.
Looking ahead, Gannon cautioned that adverse weather, including ice storms and potential park closures, may pose challenges in the near term. He explained that this period is typically slower for the company, and investors should anticipate weeks with minimal sales as part of the seasonal pattern.
The call concluded without questions from participants, reflecting a straightforward update from management.
About Parks! America
Parks! America, Inc. engages in acquiring, developing, and operating local and regional theme parks and attractions in the United States. The company operates three Wild Animal Safari theme parks located in Pine Mountain, Georgia; Strafford, Missouri; and Bryan/College Station, Texas. Previously known as Great American Family Parks, Inc., the company rebranded to Parks! America, Inc. in June 2008 and is headquartered in Pine Mountain, Georgia.
