PARKS AMERICA INC
For the period ended Mar 31, 2024. Filed May 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 14, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-31; filed 2024-02-13.
0001493152-24-006084
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001493152-24-019320
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 93 current paragraphs.
32 unchanged; 18 reworded; 36 added; 10 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 1 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
Contested Proxy and Related Matters
Current report
The Board of Directors scheduled theannual meeting of stockholders to be held on June 6, 2024 (the “2024 Annual Meeting”). On January 26, 2024, Focused Compounding submitted documents to the Company purporting to provide qualifying notice to the Company of its intent to nominate four nominees at the 2024 Annual Meeting, seeking effective control of the Company. Subsequently, on April 5, 2024, Focused Compounding submitted documents to the Company purporting to provide qualifying notice to the Company of its intent to submit a business proposal at the 2024 Annual Meeting. On April 23, 2024, the Company filed its definitive proxy statement with respect to the 2024 Annual Meeting. Stockholders are strongly encouraged to read such proxy statement, the accompanying WHITE proxy card and all other documents filed with the Securities and Exchange Commission carefully as they contain important information relating to the 2024 Annual Meeting. We remain open to ongoing engagement with Focused Compounding. However, if the Company and Focused Compounding cannot reach an agreement in connection with Focused Compounding’s nominations and business proposal, and Focused Compounding complies with applicable rules and requirements, there will be a contested election at the Company’s 2024 Annual Meeting. We do not believe that the candidates proposed by Focused Compounding for consideration by stockholders at the 2024 Annual Meeting are qualified to oversee our business, and we do not believe that their appointment would be in the best interests of the Company or its stockholders.
Current report
On March 1, 2024, Focused Compounding filed a Complaint in the Eighth Judicial District Court of Clark County against the Company and each of the members of our Board of Directors, alleging that the defendants were contemplating efforts to entrench themselves of members of the Board of Directors. See “NOTE 9. COMMITMENTS AND CONTINGENCIES” of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report for additional information.
Current report
Total Revenues
Current report
Our total revenues for the three months ended March 31, 2024 totaled $1.96 million, an increase of $82,735, compared to the three months ended April 2, 2023. Our combined park revenues were $1.92 million, an increase of $66,675 or 3.6%, while animal sales were $33,960, an increase of $16,060. In mid-January 2024 we completed the strategic switch to a new ticketing platform, which we believe improves the guest experience, while also providing improved functionality for our park customer services teams. While this change had a net neutral impact on our profitability, we no longer directly up-charge customer transaction fees. On a pro forma basis, adjusting for the tornado damage closure of our Georgia Park for the final eight days during the three months ended April 2, 2023, as well as the change in accounting for customer transaction processing fees, our park revenues for the three months ended March 31, 2024 decreased by approximately 8.9%.
Current report
Georgia park revenues were $1.04 million, a decrease of $13,986 or 1.3%, while animal sales were $12,475 compared to $0. On a pro forma basis, adjusting for the tornado damage closure and change in accounting for transaction processing fees, Georgia park revenue decreased by approximately $289,600 or 21.8%. Missouri park revenues were $400,733, an increase of $129,906 or 48.0%. Texas park revenues were $487,038, a decrease of $49,245 or 9.2%, while animal sales increased by $3,585 to $21,485.
Current report
For the three months ended March 31, 2024, paid attendance at our Missouri and Georgia Parks increased by approximately 46.2% and 8.7%, while attendance at our Texas Park decreased by approximately 8.8%. Each park was negatively impacted by unfavorable comparable weather in January, which had the most significant impact on attendance at our Georgia and Texas Parks. We believe our Georgia Park continues to be impacted by an increased competition in the greater Atlanta market, as well as a continuing overhang from the March 2023 tornado as we work to fully rebuild. We continue to believe that all three of our parks have benefitted from the transition to a new ad agency, with a focus on digital marketing.
Current report
Segment Income (Loss)
Current report
Our segment income was 267,661 for the three months ended March 31, 2024, an increase of $98,882, compared to a segment income of $168,779 for the three month period ended April 2, 2023. Our Georgia Park generated segment income of $185,645, a decrease of $1,888, primarily attributable lower park revenues, lower food service margins, and higher staffing related costs, partially offset by higher animal sales and lower advertising expense. Our Missouri Park generated segment income of $50,940, a net improvement of $96,876, primarily attributable to higher park revenues, partially offset by higher staffing related costs. Our Texas Park generated segment income of $31,076, an increase of $3,894, primarily attributable to lower advertising and general operating expenses, as well as higher animal sales, were partially offset by lower park revenues, as well as higher animal feed and staffing related costs.
Current report
Corporate expenses decreased by $204,768 to $192,722 during the three months ended March 31, 2024, primarily due to lower compensation related expenses and travel costs, as well as the timing of Directors fees, which were declared during the three months ended December 31, 2023 in the current fiscal year and during in the three months ended April 2, 2023 during the prior fiscal year.
Current report
Contested Proxy and Related Matters
Current report
During the three months ended March 31, 2024, we recorded $1.16 million of expenses associated with a contested proxy contest and related matters. This includes costs associated with preparation for and conducting a Special Meeting of Stockholders held on February 26, 2024, at the request of Focused Compounding Fund, LLC (“FC”), as well as legal costs associated with a lawsuit filed in the State of Nevada by FC on March 1, 2024. See “NOTE 11. CONTESTED PROXY AND RELATED MATTERS” of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report for additional information.
Current report
Tornado Expenses and Write-offs, Net
Current report
As a result of the tornado and severe weather damage at our Georgia Park during March 26-27, 2023, for the three months ended April 2, 2023, we recorded $381,676 of tornado related expenses, primarily due to tree and other debris removal, repairing and replacing underground water pipes throughout the property, as well as general clean-up and reopening efforts. In addition, we recorded tornado and severe weather related asset write-offs of $250,696, primarily associated with damage to various animal exhibits, several buildings, fencing and other infrastructure.
Current report
As shown in the table above, several items impacted our year-over-year reported net income comparison for the three months ended March 31, 2024. Our reported net income for the three months ended March 31, 2024 included $1.16 million of expenses associated with a contested proxy and related matters. Our reported net income for the three months ended April 2, 2023 included $632,372 of severe weather and tornado related expenses and asset write-offs. Management believes that adjusted net loss, excluding one-time items, should be considered in evaluating the ongoing operating performance of our business. Excluding the after-tax impacts of the contested proxy and related matters for the three months ended March 31, 2024 and the tornado expenses and write-offs for the three months ended April 2, 2023, our adjusted net loss was $150,162 and $384,507, respectively, resulting in a decrease of $234,345. The lower adjusted net loss for the three months ended March 31, 2024 is primarily attributable to a $204,768 decrease in Corporate expenses, a $96,876 increase in segment income for our Missouri Park, a $3,894 increase in segment income for our Texas Park, a $9,247 decrease in losses on asset disposals, a $2,360 increase in other income, a $7,342 decrease in interest expense, partially offset by a $1,888 decline in segment income for our Georgia Park, a $9,144 increase in depreciation and amortization expense, and a $79,110 decrease in our seasonal income tax benefit.
Current report
Results of Operations for the Six Months Ended March 31, 2024 as Compared to Six Months Ended April 2, 2023
Current report
Total Revenues
Current report
Our total revenues for the six months ended March 31, 2024 totaled $3.86 million, an increase of $118,981, compared to the six months ended April 2, 2023. Our combined park revenues were $3.73 million, an increase of $58,330 or 1.6%, while animal sales were $122,351, an increase of $60,651. In mid-January 2024 we completed the strategic switch to a new ticketing platform, which we believe improves the guest experience, while also providing improved functionality for our park customer services teams. While this change had a net neutral impact on our profitability, we no longer directly up-charge customer transaction fees. On a pro forma basis, adjusting for the tornado damage closure of our Georgia Park for the final eight days during the six months ended April 2, 2023, as well as the change in accounting for customer transaction processing fees, our park revenues for the six months ended March 31, 2024 decreased by approximately 5.0%.
Current report
Georgia park revenues were $2.25 million, a decrease of $93,157 or 4.0%, while animal sales were $36,314, a decrease of $7,485. On a pro forma basis, adjusting for the tornado damage closure, Georgia park revenue decreased by approximately $368,800 or 14.1%. Missouri park revenues were $625,004, an increase of $134,412 or 27.4%, while animal sales totaled $17,450. Texas park revenues were $855,830, an increase of $17,075 or 2.0%, while animal sales increased by $50,686 to $68,587.
Current report
For the six months ended March 31, 2024, paid attendance at our Georgia, Missouri and Texas Parks increased by approximately 3.7%, 34.5% and 4.4%, respectively. We believe favorable weather in the three months ended December 31, 2023, benefited our Texas and Missouri Parks, however, our Georgia Park was negatively impacted by unfavorable weather during several key weekends and holidays. Each park was negatively impacted by unfavorable comparable weather in January, which had the most significant impact on attendance at our Georgia and Texas Parks. We believe our Georgia Park continues to be impacted by an increased competition in the greater Atlanta market, as well as a continuing overhang from the March 2023 tornado as we work to fully rebuild. We continue to believe that all three of our parks have benefitted from the transition to a new ad agency.
Current report
Segment Income (Loss)
Current report
Corporate Expenses
Current report
Corporate expenses decreased by $110,509 to $510,408 during the six months ended March 31, 2024, primarily due to lower compensation related expenses and travel costs, partially offset by higher professional fees.
Current report
Depreciation and Amortization Expense
Current report
Loss on Asset Disposals, Net
Current report
Our net loss on asset disposals for the six months ended March 31, 2024 totaled $35,754, an increase of $5,170, primarily attributable to animal deaths prior to the end of their estimated life expectancy as well as the disposal of certain assets no longer useful to the business or deemed too costly to maintain or repair.
Current report
Contested Proxy and Related Matters
Current report
During the six months ended March 31, 2024, we recorded $1.29 million of expenses associated with a contested proxy contest and related matters. This includes costs associated with preparation for and conducting a Special Meeting of Stockholders held on February 26, 2024, at the request of Focused Compounding Fund, LLC (“FC”), as well as legal costs associated with a lawsuit filed in the State of Nevada by FC on March 1, 2024. See “NOTE 11. CONTESTED PROXY AND RELATED MATTERS” of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report for additional information.
Current report
Tornado Expenses and Write-offs, Net
Current report
As a result of the tornado and severe weather damage at our Georgia Park during March 26-27, 2023, for the six months ended April 2, 2023, we recorded $381,676 of tornado related expenses, primarily due to tree and other debris removal, repairing and replacing underground water pipes throughout the property, as well as general clean-up and reopening efforts. In addition, we recorded tornado and severe weather related asset write-offs of $250,696, primarily associated with damage to various animal exhibits, several buildings, fencing and other infrastructure.
Current report
Other Income, Net
Current report
Interest Expense
Current report
Income Taxes
Current report
As shown in the table above, several items impacted our year-over-year reported net income comparison for the six months ended March 31, 2024. Our reported net income for the six months ended March 31, 2024 included $1.29 million of expenses associated with a contested proxy and related matters. Our reported net income for the six months ended April 2, 2023 included $632,372 of severe weather and tornado related expenses and asset write-offs. Management believes that adjusted net loss, excluding one-time items, should be considered in evaluating the ongoing operating performance of our business. Excluding the after-tax impacts of the contested proxy and related matters for the six months ended March 31, 2024 and the tornado expenses and write-offs for the six months ended April 2, 2023, our adjusted net loss was $426,967 and $537,467, respectively, resulting in a decrease of $110,500. The lower adjusted net loss for the six months ended March 31, 2024, is primarily attributable to a $110,509 decrease in Corporate expenses, a $81,577 decrease in the segment loss for our Missouri Park, a $57,833 decrease in the segment loss for our Texas Park, a $8,634 increase in other income, a $14,633 decrease in interest expense, partially offset by a $103,653 decline in segment income for our Georgia Park, a $15,163 increase in depreciation and amortization expense, a $5,170 increase in losses on asset disposals, and a $38,700 decrease in our seasonal income tax benefit.
Current report
Net cash used in investing activities was $1.44 million for the six months ended March 31, 2024, compared to $958,106 for the six months ended April 2, 2023, resulting in an increase of $485,891. Our investing activity for the six months ended March 31, 2024 included $1.0 million related to investments in certificates of deposit. Our capital spending for the six months ended March 31, 2024 was $484,872, resulting in a decrease of $467,768 compared to the six months ended April 2, 2023.
Removed paragraphs (10)
Previous report
Special Meeting of Shareholders and Contested Proxy
Previous report
In addition, our Board has called an annual meeting of stockholders to be held on June 6, 2024 (the “2024 Annual Meeting”). At the 2024 Annual Meeting, stockholders will have an opportunity to, among other things, vote on the election of directors to the Board. Stockholders who wish to present a proposal for inclusion in the Company’s proxy statement for the 2024 Annual Meeting must ensure that the proposal is received by the Secretary of the Company at its principal executive offices at 1300 Oak Grove Road, Pine Mountain, Georgia 31822 no later than February 25, 2024, which we have determined is a reasonable time before the Company begins to print and send its proxy materials in connection with the 2024 Annual Meeting. Such stockholder proposals must comply with the proxy rules relating to stockholder proposals, in particular Rule 14a-8 under the Exchange Act, in order to be eligible for inclusion in the Company’s proxy statement for the 2024 Annual Meeting. On January 26, 2024, we received purported notice from Focused Compounding stating its intention to nominate four candidates for election as directors at the 2024 Annual Meeting.
Previous report
Total Net Sales
Previous report
Our total revenues for the three month period ended December 31, 2023 were $1.90 million, an increase of $36,246, compared to the three month period ended January 1, 2023. Our combined park revenues were $1.81 million, a decrease of $8,345 or 0.5%, while animal sales were $88,391, an increase of $44,591.
Previous report
Georgia park revenues were $1.22 million, a decrease of $79,170 or 6.1%, while animal sales were $23,839, a decrease of $19,961. Missouri park revenues increased by $4,506 or 2.1%, to $224,271, while animal sales increased by $17,450. Texas park revenues increased by $66,319 or 21.9%, to $368,792, while animal sales increased by $47,102.
Previous report
For the three month period ended December 31, 2023, paid attendance at our Texas and Missouri Parks increased by approximately 29.0% and 18.1%, while attendance at our Georgia Park was flat. Our Texas and Missouri Parks benefited from the transition to a new ad agency, with an increased focus on digital marketing, in addition to favorable year-over-year weather. Our Georgia Park was negatively impacted by unfavorable weather, particularly during several key weekend and holiday periods. We are encouraged by the consumer response to our holiday annual membership promotion which drove a more than 9-fold increase in associated sales compared to the first quarter of 2023. Annual membership park revenues are recognized ratably over the 12-month period applicable to the pass.
Previous report
Segment Operating Margin
Previous report
Corporate expenses increased by $220,899 to $444,326 during the three month period ended December 31, 2023, primarily due to higher professional fees driven by the activist investor matter that emerged in the latter half of December 2023, the timing of Directors fees, which were declared in the three month ended April 2, 2023, partially offset by lower compensation expense.
Previous report
Net cash used in investing activities was $216,168 for the three month period ended December 31, 2023, compared to $187,207 for the three month period ended January 1, 2023, resulting in an increase of $28,961. Our capital spending for the three month period ended December 31, 2023 was $230,166, compared to $181,741 for the three month period ended January 1, 2023.
Previous report
See in “NOTE 7. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES” and “NOTE 11. SPECIAL MEETING OF SHAREHOLDERS AND CONTESTED PROXY” of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report
Reworded paragraphs (18)
Previous wording
On December 22, 2023, Focused Compounding Fund, LP (together with the participants in its solicitation, “Focused Compounding”) submitted documents to us purporting to provide qualifying notice (the “Purported Notice”) as to a demand that we hold a special meeting of stockholders (if held, including any adjournment, postponement or rescheduling thereof, the “Special Meeting”). Pursuant to the Purported Notice, the Special Meeting would be held for the purpose of asking stockholders to consider and vote upon a number of proposals, including a proposal for the removal of all directors currently serving on our Board and a proposal for the election of a new Board comprised entirely of Focused Compounding’s slate of three candidates. The Special Meeting is currently scheduled to be held on February 26, 2024. Stockholders of record at the close of business on February 8, 2024 are entitled to notice of and to vote at the Special Meeting.
Current wording
On December 22, 2023, Focused Compounding Fund, LP (together with the participants in its solicitation, “Focused Compounding”) submitted documents to the Company purporting to provide qualifying notice as to a demand that the Company hold a special meeting of stockholders (the “Special Meeting”). The Special Meeting was held for the purpose of asking stockholders to consider and vote upon five proposals, including a proposal for the removal of all directors currently serving on the Board of Directors and a proposal for the election of a new Board of Directors comprised entirely of Focused Compounding’s slate of three candidates. The Special Meeting was held on February 26, 2024, and each of Focused Compounding’s proposals failed, including its proposals to reconstitute the Company’s Board of Directors.
Previous wording
During March 26-27, 2023, our Georgia Park experienced extensive damage, caused by an EF-3 tornado and over nine inches of rain, resulting in more than 4,500 fallen trees and damage to many of the Park’s animal enclosures, fencing and other infrastructure. The Walkabout Adventure Zoo (“Walkabout”) portion of the property was particularly hard hit. Our Georgia Park was closed for 20 days, including for most of its traditionally busy spring break period, which has historically comprised approximately 10%-15% of its annual revenue. The drive-through safari section of the Georgia Park reopened on April 15th. The Walkabout portion of the Park has reopened in phases, with the first phase on May 6th and the second phase on July 2nd. Approximately one-quarter of the Walkabout remains closed.
Current wording
During March 26-27, 2023, our Georgia Park experienced extensive damage, caused by an EF-3 tornado and over nine inches of rain, resulting in more than 4,500 fallen trees and damage to many of the Park’s animal enclosures, fencing and other infrastructure. The Walkabout Adventure Zoo (“Walkabout”) portion of the property was particularly hard hit. Our Georgia Park was closed for 20 days, including for most of its traditionally busy spring break period, which has historically comprised approximately 10%-15% of its annual revenue. The drive-through safari section of the Georgia Park reopened on April 15th. The Walkabout portion of the Park reopened in phases, with the first phase on May 6th and the second phase on July 2nd. Approximately one-quarter of the Walkabout remains closed.
Previous wording
Also in Georgia, our carnivore night house will be rebuilt, a capybara encounter area will be added, roadway infrastructure improved, and additional fencing and sidewalks repaired. We continue to take a strategic and measured approach to the rebuild at our Georgia Park, ensuring we put in place a product that will withstand the test of time and improve the guest, animal and staff experience, ultimately delivering higher revenue and profitability. At our Missouri Park, the 2024 capital plan is focused on activation of a guest-facing pond within the Walkabout featuring a nature trail and floating dock, the expansion of shade structures, additional rental vehicles, and equipment capital. Capital spending planned for 2024 at our Texas Park will be focused on key infrastructure needs, including hay storage, the completion of the keeper facility and general safety related improvements. We remain committed to our long-term vision for our parks, and we believe our 2024 capital plan balances additional needs from the Georgia Park tornado and deferred maintenance, along with the addition of guest facing improvements and amenities. Our 2024 fiscal year capital plan anticipates spending approximately $1.4 million, which will again be fully funded from our existing cash and continues to demonstrate our commitment to building for long-term, sustainable growth.
Current wording
Also in Georgia, our carnivore night house will be rebuilt, a capybara encounter area will be added, roadway infrastructure improved, and additional fencing and sidewalks repaired. We continue to take a strategic and measured approach to the rebuild at our Georgia Park, ensuring we put in place a product that will withstand the test of time and improve the guest, animal and staff experience, ultimately delivering higher revenue and profitability. At our Missouri Park, the 2024 capital plan is focused on activation of a guest-facing pond within the Walkabout featuring a nature trail and pond access for a fish feeding experience, the expansion of shade structures, additional rental vehicles, and equipment capital. Capital spending planned for 2024 at our Texas Park will be focused on key infrastructure needs, including electrical build out at the Park to right-size the service within the facility, hay storage, the completion of the keeper facility and general safety related improvements. We remain committed to our long-term vision for our parks, and we believe our 2024 capital plan balances additional needs from the Georgia Park tornado and deferred maintenance, along with the addition of guest facing improvements and amenities. Our 2024 fiscal year capital plan anticipates spending approximately $1.4 million, which will again be fully funded from our existing cash and continues to demonstrate our commitment to building for long-term, sustainable growth.
Previous wording
We manage our operations on an individual location basis. Discrete financial information is maintained for each park and provided to our corporate management for review and as a basis for decision-making. The primary performance measure used to allocate resources are Park earnings before interest, taxes, depreciation and amortization expenses. We use this measure of operating profit to gauge segment performance because we believe this measure is the most indicative of performance trends and the overall earnings potential of each segment.
Current wording
We manage our operations on an individual location basis. Discrete financial information is maintained for each park and provided to our corporate management for review and as a basis for decision-making. The primary performance measure used to allocate resources are Park earnings before interest, taxes, depreciation and amortization expenses (commonly referred to as “EBITDA”). We use EBITDA as a measure of operating profit to gauge segment performance because we believe this measure is the most indicative of performance trends and the overall earnings potential of each segment.
Previous wording
Results of Operations for the Three Month Period Ended December 31, 2023 as Compared to Three Month Period Ended January 1, 2023
Current wording
Results of Operations for the Three Months Ended March 31, 2024 as Compared to Three Months Ended April 2, 2023
Previous wording
Depreciation and amortization expense for the three month period ended December 31, 2023 increased by $6,019, to $223,203, primarily attributable to higher depreciation expense for our Georgia and Texas Parks, partially offset by lower depreciation expense for our Missouri Park.
Current wording
Depreciation and amortization expense for the three months ended March 31, 2024 increased by $9,144, to $218,593, primarily attributable to higher depreciation expense for our Georgia Park, partially offset by lower depreciation expense for our Missouri and Texas Parks.
Previous wording
(Gain) Loss on Asset Disposals, Net
Current wording
Loss on Asset Disposals, Net
Previous wording
Our net loss on asset disposals for the three month period ended December 31, 2023 was $14,417, primarily attributable to animal deaths prior to the end of their estimated life expectancy.
Current wording
Our net loss on asset disposals for the three months ended March 31, 2024 totaled $21,337, a decrease of $9,247, primarily attributable to animal deaths prior to the end of their estimated life expectancy as well as the disposal of certain assets no longer useful to the business or deemed too costly to maintain or repair.
Previous wording
Interest expense for the three month period ended December 31, 2023 decreased by $7,291, to $51,445, primarily attributable to a reduction in term loan interest.
Current wording
Interest expense for the three months ended March 31, 2024 decreased by $7,342, to $49,147, attributable to a reduction in term loan interest.
Previous wording
For the three month period ended December 31, 2023, we reported a pre-tax loss of $474,455. Based on a year-to-date blend of federal and State of Georgia pre-tax losses, we recorded an income tax benefit of $105,200 for the three month period ended December 31, 2023.
Current wording
For the three months ended March 31, 2024, we reported a pre-tax loss of $1.34 million. Based on a year-to-date blend of federal and State of Georgia pre-tax losses, we recorded an income tax benefit of $344,400 for the three months ended March 31, 2024.
Previous wording
For the three month period ended December 31, 2023, we reported a net loss of $369,255 or $0.00 per basic share and per fully diluted share, compared to a net loss of $152,960 or $0.00 per basic share and per fully diluted share, for the three month period ended January 1, 2023, resulting in an increase of $216,295. This increase is primarily attributable to a $220,899 increase in Corporate expenses, a $101,765 decrease in segment income for our Georgia Park, a $15,299 increase in the segment loss for our Missouri Park, and a $20,436 combined increase in depreciation and amortization expense and loss on asset disposals, partially offset by a $53,939 reduction in the segment loss for our Texas Park, a $6,274 increase in other income, a $7,291 decrease in interest expense and a $74,600 increase in our seasonal income tax benefit.
Current wording
For the three months ended March 31, 2024, we reported a net loss of $1.0 million or $0.01 per basic share and per fully diluted share, compared to a net loss of $846,139 or $0.01 per basic share and per fully diluted share, for the three months ended April 2, 2023, resulting in an increase of $154,185.
Previous wording
Our segment income from operations was $223,049 for the three month period ended December 31, 2023, a decrease of $63,125, compared to a segment income from operations of $286,174 for the three month period ended January 1, 2023. Our Georgia Park generated segment operating income of $365,842, a decrease of $101,765, primarily attributable lower park revenues, lower animal sales and higher general operating expenses, partially offset by lower compensation and advertising expenses. Our Missouri Park generated a segment operating loss of $106,768, an increase of $15,299, primarily attributable to higher animal feed and advertising expenses, partially offset by higher animal sales and park revenues. Our Texas Park generated a segment operating loss of $36,025, a decrease of $53,939, as higher park revenues and animal sales, were partially offset by higher advertising and animal feed costs.
Current wording
Our segment income was 490,710 for the six months ended March 31, 2024, an increase of $35,757, compared to a segment income of $454,953 for the six months ended April 2, 2023. Our Georgia Park generated segment income of $551,487, a decrease of $103,653, primarily attributable lower park revenues and lower food service margins, partially offset by lower advertising expense. Our Missouri Park generated a segment loss of $55,828, a decrease of $81,577, primarily attributable to higher park revenues and animal sales, partially offset by higher staffing related costs, as well as higher animal food and advertising expenses. Our Texas Park generated a segment loss of $4,949, a decrease of $57,833, primarily attributable to higher animal sales and park revenues, as well as lower operating and advertising expenses, partially offset by higher animal feed and staffing related costs.
Previous wording
Other income, net for the three month period ended December 31, 2023 increased by $6,274, to $35,887, attributable to higher interest income, partially offset by lower mineral rights royalty income from our Texas Park property.
Current wording
Other income, net for the six months ended March 31, 2024 increased by $8,634, to $69,913, attributable to higher interest income, partially offset by lower mineral rights royalty income from our Texas Park property.
Previous wording
Our working capital was $3.21 million as of December 31, 2023, compared to $3.69 million as of October 1, 2023. The decrease in working capital primarily reflects cash used for capital investments, scheduled term loan payments and net cash used in operating activities during the three month period ended December 31, 2023.
Current wording
Our working capital was $2.04 million as of March 31, 2024, compared to $3.69 million as of October 1, 2023. The decrease in working capital primarily reflects cash used for capital investments, scheduled term loan payments, as well as expenses associated with the contested proxy and related matters during the six months ended March 31, 2024.
Previous wording
Total loan debt, including current maturities, as of December 31, 2023 was $4.04 million compared to $4.23 million as of October 1, 2023. The decrease in total loan debt is the result of scheduled term loan payments during the three month period ended December 31, 2023.
Current wording
Total loan debt, including current maturities, as of March 31, 2024 was $3.85 million compared to $4.23 million as of October 1, 2023. The decrease in total loan debt is the result of scheduled term loan payments during the six months ended March 31, 2024.
Previous wording
As of December 31, 2023, we had equity of $14.68 million and total loan debt of $4.04 million, resulting in a debt to equity ratio of 0.27 to 1.0, compared to 0.28 to 1.0 as of October 1, 2023.
Current wording
As of March 31, 2024, we had equity of $13.69 million and total loan debt of $3.85 million, resulting in a debt to equity ratio of 0.28 to 1.0, compared to 0.28 to 1.0 as of October 1, 2023.
Previous wording
Net cash used in operating activities was $81,035 for the three month period ended December 31, 2023, compared to $381,220 for the three month period ended January 1, 2023, resulting in a net decrease of $300,185, as our higher net loss was more than offset by lower cash used for working capital.
Current wording
Net cash used in operating activities was $255,259 for the six months ended March 31, 2024, compared to $286,377 for the six months ended April 2, 2023, resulting in a decrease of $31,118, as our higher net loss was more than offset by lower cash used for working capital.
Previous wording
Net cash used in financing activities was $195,170 for the three month period ended December 31, 2023, compared to $181,621 for the three month period ended January 1, 2023, resulting in an increase of $13,549.
Current wording
Net cash used in financing activities was $387,511 for the six months ended March 31, 2024, compared to $365,921 for the six months ended April 2, 2023, resulting in an increase of $21,590.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Other income, net for the three months ended March 31, 2024 increased by $2,360, to $34,026, attributable to higher interest income and higher mineral rights royalty income from our Texas Park property.
Current report — wording carried from elsewhere
The following table shows our consolidated and segment operating results for the six month periods ended March 31, 2024 and April 2, 2023:
Current report — wording carried from elsewhere
Depreciation and amortization expense for the six months ended March 31, 2024 increased by $15,163, to $441,796, primarily attributable to higher depreciation expense for our Georgia Park, partially offset by lower depreciation expense for our Missouri Park.
Current report — wording carried from elsewhere
Interest expense for the six months ended March 31, 2024 decreased by $14,633, to $100,592, attributable to a reduction in term loan interest.
Current report — wording carried from elsewhere
For the six months ended March 31, 2024, we reported a pre-tax loss of $1.82 million. Based on a year-to-date blend of federal and State of Georgia pre-tax losses, we recorded an income tax benefit of $449,600 for the six months ended March 31, 2024.
Current report — wording carried from elsewhere
Net Income (Loss) and Income (Loss) Per Share
Current report — wording carried from elsewhere
For the six months ended March 31, 2024, we reported a net loss of $1.37 million or $0.02 per basic share and per fully diluted share, compared to a net loss of $999,099 or $0.01 per basic share and per fully diluted share, for the six months ended April 2, 2023, resulting in an increase of $370,480.