Parks! America, Inc. (PRKA) Q1 FY2026 Earnings Call Transcript & Summary

Good afternoon, everyone. Welcome to Parks! America First Quarter Fiscal Year 2026 Earnings Call. My name is Doug Jaffe, and I will be your operator for today's call. Today's call is being webcast and recorded. Before we begin, I'd like to remind everyone that our comments today will contain forward-looking statements within the meaning of the federal securities laws. These statements may involve risks and uncertainties that could cause actual results to differ from those forward-looking statements. For a more detailed discussion of those risks, you may refer to the company's filings with the Securities and Exchange Commission. In addition, we may reference non-GAAP financial measures and other financial metrics on the call. More information regarding our forward-looking statements and reconciliations of non-GAAP measures to the most comparable GAAP measure is included in our Form 10-Q. Last Friday, we filed our quarterly earnings release and our 10-Q with the SEC. In our quarterly earnings release, you will find summary information related to our segment financial results. We encourage all our shareholders to read and complete 10-Q -- complete the 10-Q. In a few moments, I will turn the call over to our President, Geoff Gannon, to answer any questions. I don't currently see that we have any questions that have been submitted via e-mail. So we're going to shortly take to any types of questions that we may have on today's call. [Operator Instructions] We will take as many questions as possible within a 30-minute window. That concludes my instructions. I will now turn the call over to Geoff Gannon for opening remarks.

Okay. So because we didn't have any e-mail questions come in, I thought that before we turned it over to live questions, I might just go over a couple of topics for kind of technical items. So we have here in -- the 10-Q discloses that there were no repurchases made under the stock repurchase plan that was put in place. Obviously, there's only a few days in the quarter where that plan would be in place. But I would say that we expect that to be fairly slow going just because of administrative reasons. We're illiquid stock. There's some people who have held stock for a long time, physical form, all sorts of things. So it doesn't mean that we're not interested in buying back stock. If you don't see meaningful amounts of that early on, I think it will just take a little time to administer that as compared to some companies. There was a first-mention of something with revenue recognition. So you may have seen that there's -- in the note on revenue recognition, it's mentioned that we are changing in this year 2026. We're going to have -- the way that tickets are redeemed is going to be different in the sense that they're not just available to be redeemed for a whole year. I expect that to be a really small item so that you understand how that works. Most people obviously buy a ticket, come to the park, we scan it and recognize revenue then. Occasionally, for whatever reason a ticket is bought, not scanned. And because we had a policy up until this year that you could use it any time in the next year, you'd wait a full year before recognizing that revenue. It's not expected to be a big item, but I think it will just make our accounting simpler to do. And so we adopted it. And that's about it.

All right. Geoff, as of right now, I do not see any questions from the audience. So I don't know if you have any concluding remarks.

Sure. I'll also mention then that we do have -- we will have somewhat higher expenses for some salaries related to marketing. I've mentioned this was planned for a while. This is two to three people. There's a mention of it now for the first time in personnel costs. Just to be clear on that, these people are working on events, social media, graphic design, various marketing things internally, and they work for all three parks. But I just want to make clear that they are allocated to those parks when you see the expenses. So that's fully covered in the segment income and all that, that you see. But I do expect that, that in dollar amounts will increase expenses in personnel costs this year. I -- depending on how sales go, I don't have any guidance there that it will actually reduce margin or like increase as a percent of sales or something. But in dollar amounts, we'll have higher personnel costs because we will have two to three more full-time employees over time at the company split between the three parks. And that's probably the biggest kind of expense thing that I can mention that I'm sure will run through all 4 quarters of the year, and this is the first quarter that you've seen it. Previously, the company not had really any personnel expenses that were that way where they were working at all three parks. So that is a change. And I'd say that will probably be the biggest change. Other thing I would call out is we do mention weather. Weather was particularly good the week of Christmas. I don't think this is a huge factor, but it might matter for a couple of percent of sales at each of the parks. So the easiest way to tell how big a factor weather is, is basically to wait for some larger comps of our sort of that also have theme parks and things and to see how much they mention weather and how much it help them. If our results are a lot different than theirs, better or worse, then probably weather is not that much a factor because we have three different parks in three different states, and it would really show up in any sort of results of any attractions business in the United States. So it's very easy to comp us against peers to tell if weather is a major factor. I think it was a factor, but not a huge factor. And obviously, in this quarter that we're in now, weather will not be good, as everyone knows. There's been ice storms and park closures and things like that. But that will -- that's not going to be a surprise, but it is a slow time of the year for us, but we will have a couple of weeks where we do barely any sales. And so you should just be prepared for that. And that is all that I have.

Okay. Terrific. I still don't see any calls at this time. So with that, we will conclude today's earnings call and wanted to just thank everyone for taking the time to dial in today. Thank you, and have a great day.