Parks! America Q3 2022 Earnings Report Review
Parks! America (Ticker: PRKA) released its Q3 2022 earnings report last week. My goal today is to review it with you and highlight the key items that I found particularly interesting.
As my understanding of the business develops more over time, I am learning that Parks! America has great assets but a crisis of leadership. The recent end to the prior CEO’s tenure and vacuum in power sense shows up in the results that we see today.
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What Management Chooses to Highlight
You can learn a lot from what a management team chooses to highlight in their press releases. Often, this can be just as telling as the results themselves. Today is no exception.
This is the first earnings report that I’ve seen “per capita spend” highlighted.
This is relevant for two reasons:
First, management teams often switch metrics that they talk about when the ones they’ve covered historically no longer show them in a favorable light. While this is a common tactic, I tend to see this as a yellow flag. It’s a possible way in which a management team can divert attention away from a poorly performing business.
Second, per capita spending is actually a very relevant metric for us to be aware of. I’m excited if they’ll continue to report this number in all future quarters (although I don’t expect that outcome). A key method by which the company can leverage their local moat is by increasing prices and per capita spending. At Aggieland Safari in particular, concessions are a key next step for the management to grow their business.