Parks! America Inc

Good afternoon, everyone. Welcome to Parks America's third 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 law. These statements may involve risk 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 on our Form 10-Q. This past Friday, we filed our quarterly earnings release with our 10-Q 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 of our shareholders to read our complete 10-Q. In a few moments, I will turn the call over to our President, Geoff Gannon, for opening remarks. Then, we will respond to questions previously submitted via email, after which we will take any follow-up questions from live participants on today's call. For those who would like to ask a follow-up question, you can use the raise hand feature on the bottom of your screen at any time to indicate you have a question. When you are called on to ask a question, your line will be unmuted. When you are finished asking your question, please state that you have no further questions. Your line will be muted afterwards. We will take as many questions as possible within 30 minutes. That concludes my instructions, and I'm now going to turn the call over to Geoff Gannon for opening remarks. Thank you.

I just wanted to go over three things that are Thank you. Thank you. and the 8K that we had. The main points on that, though, is that it's a seven-year term and a 25-year amortization, meaning it pays down like it's a 25-year loan, but then it's due in full at the end of seven years. It's fixed, as opposed to it was floating before. It's fixed at just under 7%. You can see that we entered into an agreement to convert the rate there to a fixed rate and then you can also see that there's a covenant on that both in terms of debt service for the borrower which is Agunan Parks Inc that's the Texas subsidiary and then you can also see that there's also a covenant for the parent company so if you do the math on that you can see that what debt service is and then you'd multiply that by 1.2 the exact numbers are there in the 10-Q but basically it means that the payments will tend to be lower in the future and they'll be reflected eventually in the debt actually there's a debt schedule that you can see already on that to give you some idea but the loan amount is the same which I wanted to stress there was no cash back on that or anything like that so it's just a refinancing of a tool a longer term paying down slower the other two points were I had mentioned insurance because someone had asked about inflation in the last quarter I had said that if we didn't make changes to the program, it was likely that I thought our insurance costs would rise about 5% for the next fiscal year. Most of our insurance policies were new and effective as of August 1st, so it's already happened. It was after the end of the quarter, but it's happened now. and actually it'll be down about 8% and that's because of changes to the program had that not been the case it probably would have been up about 5% or something so you should see slightly lower insurance costs in the next fiscal year even though I said slightly higher was more likely and then the last point is cost of goods sold because there have been questions about inflation in the last quarter but we're not generally seeing inflation pressures and I would say that they are lower now than they were in the past especially in things like have been talking about increases in earnings, obviously, of weekly earnings. So payroll has been declining in line with kind of the overall economy. And so I don't think we'll see as much pressure on that in next fiscal year as we have this year or in previous years. The one thing that we have seen it on, and it's only been since the start of the Iran war, is animal feed. And animal feed is a very substantial part of our cost of goods sold, especially at Georgia. So actually the entire increase that you have on a consolidated basis for that you can see is really all due to increases in animal food. It says animal food, merchandise, and food, but it's animal food. And those prices are highly commodity-based. Thank you very much. Thank you for joining us. They'll be seeing like 40% year-over-year increases all the time in the future, but right now, commodity prices have jumped by, you know, 20-40% for some sorts of things like this. And so that kind of explains that. Those are my only three for comparisons with questions from last quarter that they're going to make developments on. So that's it for me.

Okay. Thank you, Geoff. We actually have a couple of questions here from a shareholder by the name of Rich. The first one is dealing with the Texas Park. Can you explain why the Texas Park was closed two days a week versus previously being open seven? And is this a permanent change going forward?