Management's discussion and analysis of results of operations and financial
condition ("MD&A") is a supplement to the accompanying unaudited consolidated
financial statements and provides additional information on the Company's
businesses, current developments, financial condition, cash flows and results of
operations. The following discussion should be read in conjunction with our
unaudited consolidated financial statements and notes thereto included elsewhere
in this Quarterly Report on Form 10-Q (this "Quarterly Report") and with our
Annual Report on Form 10-K for the fiscal year ended October 3, 2021 .
Forward-Looking Statements
Except for the historical information contained herein, this Quarterly Report
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Such forward-looking statements involve risks and
uncertainties, including, among other things, statements concerning: our
business strategy; liquidity and capital expenditures; future sources of
revenues and anticipated costs and expenses; and trends in industry activity
generally. Such forward-looking statements include, among others, those
statements including the words such as "may," "will," "should," "expect,"
"plan," "could," "anticipate," "intend," "believe," "estimate," "predict,"
"potential," "goal," or "continue" or similar language or by discussions of our
outlook, plans, goals, strategy or intentions.
Our actual results may differ significantly from those projected in the
forward-looking statements. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors, including, but not
limited to, the risks outlined under "Risk Factors" in this Quarterly Report,
that may cause our actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements. For example, assumptions that could cause actual
results to vary materially from future results include, but are not limited to:
competition from other parks, weather conditions during our primary tourist
season, the price of animal feed and the price of gasoline. Although we believe
that the expectations reflected in these forward-looking statements are based on
reasonable assumptions, we cannot guarantee future results, levels of activity,
performance or achievements. Additional risks have been added to our business by
the near-term and long-term impacts of the COVID-19 pandemic on the operations
of our Parks, including customers perceptions of engaging in the activities
involved in visiting our Parks, our ability to hire and retain employees in
light of the issues posed by the COVID-19 pandemic, and our ability to maintain
sufficient cash to fund operations due to the possible negative impact on our
Park revenues associated with potential future disruptions in demand as a result
of the pandemic.
The forward-looking statements we make in this Quarterly Report are based on
management's current views and assumptions regarding future events and speak
only as of the date of this report. We assume no obligation to update any of
these forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting these forward-looking
statements, except as required by applicable law, including the securities laws
of the United States and the rules and regulations of the Securities and
Exchange Commission .
Overview
Through our wholly owned subsidiaries, we own and operate three regional theme
parks and are in the business of acquiring, developing and operating local and
regional theme parks and attractions in the United States . Our wholly owned
subsidiaries are Wild Animal Safari, Inc. , a Georgia corporation ("Wild Animal -
Georgia"), Wild Animal, Inc. , a Missouri corporation ("Wild Animal - Missouri"),
and Aggieland-Parks, Inc. , a Texas corporation ("Aggieland Wild Animal -
Texas"). Wild Animal - Georgia owns and operates the Wild Animal Safari theme
park in Pine Mountain, Georgia (the "Georgia Park "). Wild Animal - Missouri owns
and operates the Wild Animal Safari theme park located in Strafford, Missouri
(the "Missouri Park "). Aggieland Wild Animal - Texas owns and operates the
Aggieland Wild Animal Safari theme park near Bryan/College Station, Texas (the
"Texas Park ").
Our Parks are open year round, but experience increased seasonal attendance,
typically beginning in the latter half of March through early September. As a
result, our combined third and fourth quarter net sales have historically ranged
from 68% to 72% of our annual attendance based net sales. For our 2021 fiscal
year, the first full fiscal year including our Texas Park , combined third and
fourth quarter net sales were approximately 60% of our annual attendance based
net sales
17
Through our fiscal year ended October 3, 2021 , our annual net sales, adjusted
income before income taxes and net cash provided by operating activities have
improved significantly over the past nine fiscal years. These improvements are
primarily attributable to a combination of increased attendance based revenues
and operating cost controls. Our Georgia Park in particular has benefitted from
several positive factors including strong management, the addition of online
ticket sales in June 2015 , growth and positive economic conditions in the
greater Atlanta area, as well as positive guest perceptions of this Park. Strong
results through our 2019 fiscal year and the resulting improvements in our
financial position provided us with the resources to pursue and ultimately close
the acquisition of our Texas Park during our 2020 fiscal year.
The rapid acceleration of the COVID-19 pandemic in the United States occurred at
the beginning of our 2020 fiscal year annual high season. Effective April 3,
2020 , both our Georgia and Missouri Parks were closed as a result of
shelter-in-place mandates. Additionally, prior to our acquisition of the Texas
Park , its operations were suspended for the majority of April 2020 due to a
shelter-in-place mandate. In compliance with respective state issued guidelines,
our Georgia Park and our Texas Park each reopened on May 1, 2020 , and our
Missouri Park reopened on May 4, 2020 . Subsequent to reopening, attendance
levels increased significantly at each of our three Parks for the balance of our
2020 fiscal year, which continued throughout our 2021 fiscal year in comparison
to comparable pre-COVID-19 periods. While attendance based net sales remain
higher in comparison to comparable pre-COVID-19 periods, we experienced a
decline in aggregate attendance based net sales and attendance for the last 22
weeks of our 2021 fiscal year and for the first 44 weeks of our 2022 fiscal
year, respectively.
We believe the increased attendance levels, relative to comparable pre-covid-19
periods, each of our Parks has experienced since reopening in early May 2020
reflects the principally outdoor nature of the family-friendly, wild animal
education and entertainment experience provided at each of our Parks. The
experience offered at each of our Parks was particularly attractive during the
height COVID-19 pandemic as potential guests are seeking outdoor entertainment
options. While we have seen many repeat customers since reopening in early May
2020 , we also experienced an increase in first time visitors seeking an outdoor
entertainment alternative. We believe this has increased the local and regional
awareness for each of our Parks, which we believe will have positive longer-term
ramifications for our business.
While we have experienced attendance gains and strong cash flow since the
beginning of the COVID-19 pandemic, there remains the possibility of longer-term
negative impacts to our business, results of operations and cash flows, and
financial condition, as a result of the COVID-19 pandemic. These negative
impacts may include changes in customer behavior and preferences causing
significant volatility or reductions in attendance at one or more of our Parks,
increases in operating expenses, limitations in our ability to recruit and
maintain staffing, limitations on our employees ability to work and travel, and
significant changes in the economic or political conditions in the areas our
Parks are located. Despite our efforts to manage these potential impacts, the
ultimate impact may be material, and may depend on a number of factors beyond
our control, including the duration and severity of the COVID-19 pandemic, the
outbreak of new variants of the COVID-19 virus, and actions by governmental
authorities taken to contain its spread and mitigate its public health effects.
There is also the potential for attendance levels at our Parks to moderate or
decline as alternative entertainment venues reopen to full capacity once the
COVID-19 pandemic has run its course or vaccines are widely adopted and proven
effective.
We are committed to leveraging the strong operating model we have established at
our Georgia Park , with a focus on increasing attendance, as well as increasing
the average revenue generated per guest visit via concession and gift shop
revenues. Among our highest priorities over the next several years is continuing
the integration of our Texas Park . As our Texas Park first opened to the public
in May 2019 , we believe there remains tremendous potential to increase
attendance by increasing the local and regional awareness of this facility via
advertising and promotion. We are pleased with the expanded attendance at our
Missouri Park since it reopened in May 2020 and plan on leveraging the increased
exposure of this facility to continue to build on this recent success.
During our 2021 fiscal year, we engaged an experienced amusement industry
consulting firm to assist us in developing a master plan for our Georgia Park .
In aggregate, our initial 2022 fiscal year capital investment plan involved
nearly $3.0 million of improvements across all three of our Parks. Our 2022
fiscal year capital plan included the first major project within our master
plan, an impressive giraffe exhibit at our Georgia Park . However, due to several
issues, we currently project this project will not be completed until at least
the spring of 2023. Our current projections indicate our fiscal 2022 capital
spending will now total approximately $1.75 million .
Our long-term business plan includes expansion via the acquisition of additional
local or regional theme parks and attractions, if attractive opportunities
arise. We believe acquisitions, if any, should not unnecessarily encumber the
Company with additional debt that cannot be justified by current operations. We
may also pursue contract management opportunities for themed attractions owned
by third parties. By using a combination of equity, debt and other financing
options, we intend to carefully monitor stockholder value in conjunction with
the pursuit of growth.
18
Strong growth in our annual operating cash flow over the past nine fiscal years
has provided us with incremental cash flow, and provided us with the financial
strength to complete the acquisition of our Texas Park and to significantly
increase our planned capital investment spending during our 2022 fiscal year.
However, our current size and operating model leave us little room for error.
Any future capital raised by us is likely to result in dilution to existing
stockholders. It is possible that cash generated by, or available to, us may not
be sufficient to fund our capital and liquidity needs for the near-term.
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 measures
used to allocate resources are Park earnings before interest and tax expense,
and free cash flow. 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 reportable
segment.
Results of operations for the three-month period ended
The following table presents our consolidated and segment operating results for the three-month periods ended
Georgia Park Missouri Park Texas Park Consolidated
Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021
Total net sales $ 2,517,848 $ 2,724,847 $ 537,189 $ 618,185 $ 589,288 $ 531,068 $ 3,644,325 $ 3,874,100
Segment income (loss) from
operations 1,286,953 1,721,101 76,589 158,419 (48,695 ) (31,482 ) 1,314,847 1,848,038
Segment operating margin % 51.1 % 63.2 % 14.3 % 25.6 % -8.3 % -5.9 % 36.1 % 47.7 %
Corporate expenses (193,461 ) (178,560 )
Legal settlement (100,000 ) -
Other income, net 22,030 16,996
Gain on extinguishment of
debt - 64,617
Interest expense (65,804 ) (91,958 )
Income before income taxes $ 977,612 $ 1,659,133
Total Net Sales
Our total net sales for the three month period ended July 3, 2022 were $3.64
million , a decrease of $229,775 , compared to the three month period ended July
4, 2021 . Our Parks' combined attendance based net sales decreased by $204,622 or
5.4%, and animal sales decreased by $25,153 .
Our Georgia Park's attendance based net sales decreased by $204,484 or 7.5%, to
$2.51 million , while animal sales decreased by $2,515 . Our Missouri Park's
attendance based net sales decreased by $100,596 or 16.3%, to $517,589 , while
animal sales increased by $19,600 . Our Texas Park's attendance based net sales
increased by $100,458 or 20.6%, to $589,289 , while animal sales decreased by
$42,238 .
For the three month period ended July 3, 2022 , paid attendance at our Georgia
and Missouri Parks decreased by approximately 12.4% and 26.0%, respectively,
while attendance at our Texas Park increased 31.9%. We believe our attendance
levels for the three month period ended July 3, 2022 were unfavorably impacted
by various factors including the full reopening of other family entertainment
venues, general economic conditions impacting family budgets, and hotter than
normal weather conditions, partially offset by higher levels of group
attendance.
Segment Operating Margin
Our consolidated segment income from operations was $1.31 million for the three
month period ended July 3, 2022 , a decrease of $533,191 , compared to $1.85
million for the three month period ended July 4, 2021 . Our Georgia Park
generated segment operating income of $1.29 million , a decrease of $434,148 ,
primarily attributable to lower attendance based net sales, as well as higher
compensation and benefits, advertising, insurance and general operating
expenses. Our Missouri Park generated segment operating income of $76,589 , a
decrease of $81,830 , primarily attributable to lower attendance based net sales,
as well as higher advertising, compensation and benefits, and general operating
expenses, partially offset by higher animal sales and a gain on asset sales. Our
Texas Park generated a segment operating loss of $48,695 , an increase of
$17,213 , primarily attributable to lower animal sales, and higher advertising
and general operating expenses, partially offset by higher attendance based net
sales and a loss on animal dispositions during the three months ended July
4, 2021. 19 Corporate Expenses
Business spending increased by
Legal Settlement Expense EffectiveAugust 5, 2022 , we agreed to pay$100,000 to two children of a former officer of the Company to settle a complaint alleging we were obligated to purchase life insurance of at least$540,000 for said officer. The Company recorded the cost of this settlement during the three month period endedJuly 3, 2022 and anticipates full payment byOctober 2, 2022 . For additional information, see "NOTE 9. COMMITMENTS AND CONTINGENCIES" of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report. Other Income, Net
Other net income increased by
Gain on extinguishment of debt
OnMay 25, 2021 , we received notification the SBA approved our Wild Animal - Missouri Paycheck Protection Program ("PPP") loan forgiveness application, resulting in a gain on extinguishment of debt totaling$64,617 for the three month period endedJuly 4, 2021 . Interest Expense
Interest expense for the three month period endedJuly 3, 2022 decreased by$26,154 , to$65,804 , primarily as a result of the lower interest rate associated with theJune 2021 refinancing of ourSynovus Bank ("Synovus") term loan and scheduled principal payments on our term loans over the trailing 12 month period, as well as the retirement of the Aggieland Seller Note inJune 2021 , partially offset by imputed interest on a right of use asset. Income Taxes For the three month period endedJuly 3, 2022 , we reported pre-tax income of$1.08 million . For the fiscal year endingOctober 2, 2022 we expect to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 29.4%. Based on a year-to-date blend of federal andState of Georgia pre-tax income, we recorded an income tax provision of$284,600 for the three month period endedJuly 3, 2022 .
Net earnings and earnings per share
For the three month period endedJuly 3, 2022 , we reported net income of$718,712 or$0.01 per basic share and per fully diluted share, compared to a net income of$1.27 million or$0.02 per basic share and per fully diluted share, for the three month period endedJuly 4, 2021 , resulting in a decrease of$548,121 . This decrease in our net income is attributable to a$434,148 decrease in segment income for ourGeorgia Park , a$81,830 decrease in the segment income for ourMissouri Park , a$17,213 increase in the segment loss for ourTexas Park , a$14,901 increase in Corporate spending, a legal settlement expense of$100,000 , and a$64,617 gain on extinguishment of debt in the three month period endedJuly 4, 2021 , partially offset by an increase of$5,034 in other income, a$26,154 decrease in interest expense, as well as a$133,400 decrease in our
income tax provision. 20
Results of operations for the nine-month period ended
Our 2022 fiscal year will be comprised of 52-weeks, compared to our 2021 fiscal year which was comprised of 53-weeks. The extra week in our 2021 fiscal year occurred during our first fiscal quarter. As such, attendance based sales analyses for the nine months endedJuly 3, 2022 will include comparable 39-week sales comparisons, in addition to reported sales comparisons.
The following table presents our consolidated and segment operating results for the nine-month periods ended
Georgia Park Missouri Park Texas Park Consolidated
Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021 Fiscal 2022 Fiscal 2021
Total net sales $ 5,166,869 $ 5,903,635 $ 1,040,003 $ 1,157,862 $ 1,468,785 $ 1,515,985 $ 7,675,657 $ 8,577,482
Segment income (loss) from
operations 2,068,758 3,401,355
(498,443) (1,768) (210,087) (26,948) 1,360,228 3,372,639 Segment operating margin %
40.0 % 57.6 % -47.9 % -0.2 % -14.3 % -1.8 % 17.7 % 39.3 % Corporate expenses (734,493 ) (677,848 ) Legal settlement (100,000 ) - Other income, net 68,322 44,315 Gain on extinguishment of debt
- 189,988 Interest expense (202,475 ) (267,578 ) Income before income taxes$ 391,582 $ 2,661,516 Total Net Sales
Our total net sales for the nine month period endedJuly 3, 2022 were$7.68 million , a decrease of$901,825 , compared to the nine month period endedJuly 4, 2021 . Our Parks' combined attendance based net sales decreased by$805,327 or 9.5%, and animal sales decreased by$96,498 . On a comparable 39-week basis, our attendance based net sales decreased by$608,721 or 7.4%. OurGeorgia Park's reported attendance based net sales decreased by$687,489 or 11.8%, to$5.16 million , while animal sales decreased by$49,278 . OurMissouri Park's reported attendance based net sales decreased by$133,316 or 11.6%, to$1.02 million while animal sales increased by$15,457 . OurTexas Park's attendance based net sales increased by$15,478 or 1.1%, to$1.47 million , while animal sales decreased by$62,677 . On a comparable 39-week basis, ourGeorgia Park's attendance based net sales decreased by$554,937 or 9.7%, ourMissouri Park's attendance based net sales decreased by$108,197 or 9.6%, while ourTexas Park's attendance based net sales increased by$54,413 or 3.8%. For the nine month period endedJuly 3, 2022 , paid attendance at our Georgia and Missouri Parks decreased by approximately 20.3% and 22.6%, respectively, while paid attendance at ourTexas Park increased 6.9%. On a comparable 39-week basis, paid attendance at our Georgia and Missouri Parks decreased by approximately 18.1% and 20.7%, respectively, while paid attendance at ourTexas Park increased 9.6%. We believe our attendance levels for the nine month period endedJuly 3, 2022 were unfavorably impacted by various factors including the full reopening of other family entertainment venues, general economic conditions impacting family budgets, and weather conditions during the late spring and early summer, partially offset by higher levels of group attendance. Segment Operating Margin Our consolidated segment income from operations was$1.36 million for the nine month period endedJuly 3, 2022 , a decrease of$2.01 million , compared to consolidated segment income from operations of$3.37 million for the nine month period endedJuly 4, 2021 . OurGeorgia Park generated segment operating income of$2.07 million , a decrease of$1.33 million , primarily attributable to lower attendance based net sales, as well as higher compensation and benefits, advertising, insurance and general operating expenses. OurMissouri Park generated a segment operating loss of$498,443 , an increase of$496,675 , primarily attributable to higher special event spending and lower attendance based net sales, as well as higher compensation and advertising expenses, partially offset by higher animal sales and gains on asset sales. OurTexas Park generated a segment operating loss of$210,087 , an increase of$183,139 , primarily attributable lower animal sales, as well as higher advertising, general operating, and depreciation expenses, and higher cost of sales, partially offset higher attendance based sales and losses on animal dispositions in the nine months endedJuly 4, 2021 . 21 Corporate Expenses
Business spending increased by
Legal Settlement Expense EffectiveAugust 5, 2022 , we agreed to pay$100,000 to two children of a former officer of the Company to settle a complaint alleging we were obligated to purchase life insurance of at least$540,000 for said officer. The Company recorded the cost of this settlement during the nine month period endedJuly 3, 2022 and anticipates full payment byOctober 2, 2022 . For additional information, see "NOTE 9. COMMITMENTS AND CONTINGENCIES" of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report. Other Income, Net
Other net income increased by
Gain on extinguishment of debt
In the nine months ended
Interest Expense
Interest expense for the nine month period endedJuly 3, 2022 decreased by$65,103 , to$202,475 , primarily as a result of the lower interest rate associated with theJune 2021 refinancing of our Synovus term loan and scheduled principal payments on our term loans over the trailing 12 month period, as well as the retirement of the Aggieland Seller Note inJune 2021 , partially offset by imputed interest on a right of use asset. Income Taxes
For the nine month period endedJuly 3, 2022 , we reported a pre-tax income of$491,582 . For the fiscal year endingOctober 2, 2022 we expect to generate pre-tax income and to record a tax provision at a blended effective federal and state income tax rate of approximately 29.4%. Based on a year-to-date blend of federal andState of Georgia pre-tax income, we recorded an income tax provision of$172,200 for the nine month period endedJuly 3, 2022 .
Net earnings and earnings per share
For the nine month period endedJuly 3, 2022 , we reported a net income of$245,082 or$0.00 per basic share and per fully diluted share, compared to a net income of$2.03 million or$0.03 per basic share and per fully diluted share, for the nine month period endedJuly 4, 2021 , resulting in a decrease of$1.79 million . The decrease in our net income is attributable to a$1.33 million decrease in segment income for ourGeorgia Park , a$496,675 increase in the segment loss for ourMissouri Park , a$183,139 increase in the segment loss for ourTexas Park , a$56,645 increase in Corporate spending, a legal settlement expense of$100,000 , and a$189,988 gain on extinguishment of debt in the nine month period endedJuly 4, 2021 , partially offset by an increase of$24,007 in other income, a$65,103 decrease in interest expense, as well as a$482,200 net decrease in our income tax provision.
Financial position, liquidity and capital resources
Financial situation and liquidity
Our primary sources of liquidity are cash generated by operations and borrowings under our loan agreements. Historically, our slow season starts afterLabor Day in September and runs until Spring Break, which typically begins toward the middle to end of March. The first and second quarters of our fiscal year have historically generated negative cash flow, requiring us to use cash generated from prior fiscal years, as well as borrowing on a seasonal basis, to fund operations and prepare our Parks for the busy season during the third and fourth quarters of our fiscal year. As a result of our improved cash position, during our 2021 fiscal year we did not utilize any seasonal borrowing, nor do we anticipate using any seasonal borrowing during our 2022 fiscal year. 22
OnJune 18, 2021 , we entered a new$1.95 million , seven-year term loan (the "2021 Term Loan") with Synovus, at an annual interest rate of 3.75%. The 2021 Term Loan replaced our 2018 borrowing facility with Synovus, which included a term loan in the original principal amount of$1.60 million at 5.0% per annum and a$350,000 line of credit at 4.75% per annum. After paying off the balance outstanding on the 2018 Term Loan, the net additional borrowings on the 2021 Term Loan were$930,222 and the line of credit was not renewed. Combined with available cash, we used the incremental proceeds from the 2021 Term Loan to paydown$1.0 million of the 2020 Term Loan used to finance ourTexas Park acquisition, which has a 5.0% annual interest rate. Overall, we estimate this refinancing will generate approximately$24,375 in annual interest savings. Our working capital was$4.38 million as ofJuly 3, 2022 , compared to$5.70 million as ofOctober 3, 2021 . This decrease in working capital primarily relates to cash used for capital investments and financing activities, partially offset by cash provided by operating activities, during the nine month period endedJuly 3, 2022 .
Total loan debt, including current maturities, as ofJuly 3, 2022 was$5.45 million compared to$5.66 million as ofOctober 3, 2021 . The decrease in total loan debt during the nine month period endedJuly 3, 2022 is attributable to scheduled term loan payments, partially offset by a financing lease obligation. As ofJuly 3, 2022 , we had equity of$14.87 million and total loan debt of$5.45 million , resulting in a debt to equity ratio of 0.37 to 1.0 compared to 0.39 to 1.0 as ofOctober 3, 2021 . Operating Activities Net cash provided by operating activities was$792,656 for the nine month period endedJuly 3, 2022 , compared$2.34 million for the nine month period endedJuly 4, 2021 , resulting in a net decrease of$1.55 million , primarily due to lower net income. Investing Activities
Net cash used in investing activities was$1.46 million for the nine month period endedJuly 3, 2022 , compared to$860,473 for the nine month period endedJuly 4, 2021 . Our capital spending for the nine month period endedJuly 3, 2022 was$1.49 million , compared to$887,473 for the nine month period endedJuly 4, 2021 . Financing Activities Net cash used in financing activities was$687,296 for the nine month period endedJuly 3, 2022 , compared to$1.03 million for the nine month period endedJuly 4, 2021 , resulting in an increase of$342,174 .
In the nine months ended
InJune 2021 , we entered into the 2021 Term Loan for$1.95 million , using those proceeds to pay off the$930,222 outstanding balance of our 2018 Term Loan, as well as prepay$1.00 million against our 2020 Term Loan. In addition, onJune 29, 2021 , we paid off the$750,000 . Aggieland Safari Seller Note. For the nine months endedJuly 4, 2021 , scheduled payments against our combined term loans totaled$277,956 . Subsequent Events OnAugust 5, 2022 , we agreed to pay$100,000 to settle a Complaint filed against us by two children of a former officer of the Company, seeking payment and damages related to an alleged Employment Agreement obligation. For more information regarding this matter, see "NOTE 9. COMMITMENTS AND CONTINGENCIES" herein.
Off-balance sheet arrangements
We have no off-balance sheet arrangements that are reasonably likely to have a current or future impact on our financial condition, results of operations, liquidity or capital expenditures.
23
Significant Accounting Policies and Estimates
The preceding discussion and analysis of our consolidated financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements included elsewhere in this Quarterly Report. Our significant accounting policies are set forth in "NOTE 2. SIGNIFICANT ACCOUNTING POLICIES" of the Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, which should be reviewed as they are integral to understanding results of operations and financial position. TheParks! America, Inc. Annual Report on Form 10-K for the fiscal year endedOctober 3, 2021 includes additional information about us, and our operations, financial condition, critical accounting policies and accounting estimates, and should be read in conjunction with this Quarterly Report.
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