SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for Quarterly Period Ended June 30, 1995
-OR-
Transaction Report Pursuant to Section 13 or 15(d)
of the Securities And Exchange Act of 1934
for the transaction period from _________ to________
________________________________________________________________________
Commission File Number 0-9789
________________________________________________________________________
Premier Parks Inc.
________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 73-6137714
________________________________________________________________________
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
11501 Northeast Expressway, Oklahoma City, OK 73131
________________________________________________________________________
(Address of principal executive offices, Zip Code)
(405) 478-2414
________________________________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No _
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date:
At June 30, 1995, Premier Parks Inc. had outstanding 16,860,607 shares of
common stock, par value $.01 per share.
ITEM 1. FINANCIAL STATEMENTS
PREMIER PARKS INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1995 1994
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $ 1,862,861 $ 1,365,728
Accounts receivable 1,200,878 869,796
Inventories 1,723,112 1,017,791
Prepaid expenses 917,494 765,200
Total current assets 5,704,345 4,018,515
Other assets
Investment in and advances to a partnership, at equity:
229 East 79th Street Associates LP 1,123,356 1,123,708
Deferred charges 382,150 428,608
Deposits 77,132 1,107,732
Other 284,250 288,143
Total other assets 1,866,888 2,948,191
Property and equipment, at cost 50,455,007 44,841,784
Less accumulated depreciation 7,380,613 6,269,852
Total property and equipment 43,074,394 38,571,932
Total assets $ 50,645,627 $45,538,638
LIABLITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 6,073,342 $ 1,281,061
Accrued interest payable 146,701 101,857
Current portion of long-term debt 1,226,098 1,239,160
Current portion of long-term debt - related parties 200,000 200,000
Current portion of revolving credit facility 3,500,000 0
Current portion of capitalized lease obligations 489,248 452,645
Total current liabilities 11,635,389 3,274,723
Long-term debt and capitalized lease obligations
Capitalized lease obligation 1,302,593 1,419,924
Long-term debt - unrelated parties:
Senior subordinated notes 1,240,000 1,240,000
Term notes 11,882,090 11,901,080
Long-term debt - related parties:
Senior subordinated notes 5,760,000 5,760,000
Junior subordinated loan 1,895,000 1,895,000
Total long-term debt and capitalized
lease obligations 22,079,683 22,216,004
Deferred income taxes 667,918 1,913,900
Total liabilities 34,382,990 27,404,627
Stockholders' equity
Common stock 169,923 169,923
Capital in excess of par 50,572,978 50,572,978
Accumulated deficit (33,791,497)(31,920,123)
16,951,404 18,822,778
Less treasury stock at cost 688,767 688,767
Total stockholder's equity 16,262,637 18,134,011
Total liabilities and stockholders' equity $50,645,627 $45,538,638
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
PREMIER PARKS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
1995 1994
Revenue:
Theme park admissions $ 5,675,268 $ 3,996,944
Theme park food, merchandise, and other 3,692,255 3,312,094
Total revenue 9,367,523 7,309,038
Costs and expenses:
Operating expenses 5,882,948 5,947,817
Selling, general and administrative 3,239,644 2,443,608
Cost of products sold 826,942 799,901
Depreciation and amortization 1,110,761 859,076
Total cost and expenses 11,060,295 10,050,402
Income (loss) from operations (1,692,772) (2,741,364)
Other income (expense)
Interest expense, net (1,383,353) (1,081,090)
Equity in loss of partnership (38,912) (36,566)
Other income 81 60
Total other income (expense) (1,422,184) (1,117,596)
(Loss) before income taxes (3,114,956) (3,858,960)
Provision for income tax (benefit) expense: (1,243,582) (1,543,584)
NET (LOSS) $ (1,871,374) $ (2,315,376)
Per share amounts
NET (LOSS) PER SHARE (0.11) (0.17)
AVERAGE SHARES OUTSTANDING 16,860,607 13,276,097
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
PREMIER PARKS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
1995 1994
Revenue:
Theme park admissions $ 4,688,107 $ 3,996,944
Theme park food, merchandise, and other 3,109,095 2,953,065
Total revenue 7,797,202 6,950,009
Costs and expenses:
Operating expenses 4,184,798 4,095,086
Selling, general and administrative 2,357,860 1,755,812
Cost of products sold 815,294 780,425
Depreciation and amortization 553,434 429,499
Total cost and expenses 7,911,386 7,060,822
Income (loss) from operations (114,184) (110,813)
Other income (expense)
Interest expense, net (804,843) (696,767)
Equity in loss of partnership (19,523) (11,158)
Other income 81 0
Total other income (expense) (824,285) (707,925)
(Loss) before income taxes (938,469) (818,738)
Provision for income tax (benefit) expense: (372,988) (264,320)
NET (LOSS) $ (565,482) $ (554,418)
Per share amounts
NET (LOSS) PER SHARE (0.03) (0.04)
AVERAGE SHARES OUTSTANDING 16,860,607 13,276,097
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
PREMIER PARKS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
1995 1994
Cash flow from operating activities
Net loss $ (1,871,374)$ (2,315,376)
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 1,110,761 859,076
Amortization of discount on debt 50,351 43,451
Equity in losses of partnerships 38,912 36,566
Gain on sale of assets 0 (8,531)
Increase in notes and accounts (331,082) (866,787)
receivable and accrued interest
Decrease in deferred income taxes (1,245,982) (1,543,584)
Increase in inventories and prepaid expenses (857,615) (946,051)
Decrease in other 1,030,600 160,915
Increase in accounts payable and accrued expenses 3,977,281 3,126,061
Increase in accrued interest payable 44,844 86,016
Payments of issuance costs 0 (73,906)
Total adjustments 3,818,070 873,226
Net cash provided by (used in)
operating activies 1,946,696 (1,442,150)
Cash flow from investing activities
Proceeds from the sale of equipment 0 14,000
Additions to property and equipment (4,798,223) (7,923,273)
Increase in investments in and advances
to partnerships (38,560) (53,160)
Net cash (used in) investing activities (4,836,783) (7,962,433)
Cash flow from financing activities
Repayment of long-term debt (169,280) (68,802)
Proceeds from borrowings 3,556,500 8,965,276
Net cash provided by financing activities 3,387,220 8,896,474
Increase (decrease) in cash and cash equivalents 497,133 (508,109)
Cash and cash equivalents at beginning of period 1,365,728 3,025,859
Cash and cash equivalents at end of period $ 1,862,861 $ 2,517,750
PART I - FINANCIAL INFORMATION (Continued)
Item 1 Financial Statements (Continued)
________________________________
PREMIER PARKS INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
1. Management's Discussion and Analysis of Financial Condition and Results of
Operations which follows these notes contains additional information on the
results of operations and the financial position of the Company. Those
comments should be read in conjunction with these notes. The Company's
annual report on Form 10-K for the year ended December 31, 1994 includes
additional information about the Company, its operations and its financial
position, and should be read in conjunction with this quarterly report on
Form 10-Q.
2. The information furnished in this report reflects all adjustments which are,
in the opinion of management, necessary to present a fair statement of the
results for the periods presented.
3. Results of operations for the six month and three month periods ended June
30, 1995 are not indicative of the results expected for the full year. In
particular, the Company's theme park operations contribute most of their
annual revenue during the period from Memorial Day to Labor Day each year.
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations
_______________________________________________
RESULTS OF OPERATIONS
Six months ended June 30, 1995 vs. six months ended June 30, 1994
Loss before income taxes for the six months ended June 30, 1995 aggregated
$3.1 million, as compared to loss before taxes of $3.9 million for the
comparable six month period of 1994. The decrease in the loss in the 1995
period was attributable to increased operating revenues in that period, arising
primarily from a new season pass program, as well as an increase in overall
attendance to the parks. The increase in operating revenue in the second
quarter was offset in part by the increased depreciation expense in that period
arising out of the Company's capital improvement program, additional interest
expense due to higher levels of outstanding debt and an increase in the interest
rates, and larger advertising expense incurred earlier than the previous year.
Revenue. Revenues increased 28.2% from 7.3 million in the first six months
of 1994 to $9.4 million in the first six months of 1995. This increase in
revenues is primarily attributable to a substantial increase in season pass
sales at Frontier City and White Water Bay due to a new combined season pass
program and the effect of these season pass revenues, and increased attendance
at the Company's three theme parks.
Operating Expenses. Operating expenses decreased 1.1% from $5.95 million
in the first six months of 1994 to $5.88 million in the first six months of
1995.
Selling, General and Administrative. Selling, general and administrative
increased 32.6% from $2.4 million in the first six months of 1994 to $3.2
million in the comparable period of 1995 primarily due to a 30.6% increase in
marketing and advertising expenses. Most of such increase was incurred at
Adventure World as part of the advertising campaign designed to promote public
awareness of the new Mind Eraser roller coaster, and a lesser portion of such
increase was incurred in connection w ith the promotion of the new combined
season pass program at Frontier City and White Water Bay.
Costs of Products sold. Costs of products sold increased 3.4% from
$800,000 in the first six months of 1994 to $827,000 in the first six months of
1995. This increase is a direct result of increased in-park sales at the parks.
Three months ended June 30, 1995 vs. three months ended June 30, 1994
Loss before income taxes for the three months ended June 30, 1995
aggregated $938,000, as compared to loss before income taxes of $819,000 for the
comparable three month period of 1994. The increase in the loss in the 1995
period was attributable to increased depreciation expense arising out of the
Company's capital improvement program and additional interest expense due to the
increase in outstanding debt.
Revenue. Revenues increased 12.2% from 6.9 million in the three months
ended June 30, 1994 to $7.8 million in the three months ended June 30, 1995.
This increase in revenues is primarily attributable to a substantial increase in
season pass sales at Frontier City and White Water Bay due to a new combined
season pass program and the effect of these season pass revenues, and increased
attendance at the Company's three theme parks.
Operating Expenses. Operating expenses increased 2.2% from $4.1 million in
the three months ended June 30, 1994 to $4.2 million in the three months ended
June 30, 1995.
Selling, General and Administrative. Selling, general and administrative
increased 34.3% from $1.8 million in the three months ended June 30, 1994 to
$2.4 million in the comparable period of 1995 primarily due to a 30.1% increase
in marketing a nd advertising expenses. Most of such increase was incurred at
Adventure World as part of the advertising campaign designed to promote public
awareness of the new Mind Eraser roller coaster, and a lesser portion of such
increase was incurred in connection with the promotion of the new combined
season pass program at Frontier City and White Water Bay.
Costs of Products sold. Costs of products sold increased 4.5% from
$780,000 in the three months ended June 30, 1994 to $815,000 in the three months
ended June 30, 1995. This increase is a direct result of increased in-park
sales at the parks.
Because of the seasonal nature of the Company's theme park operations most
of the Company's revenues are generated from Memorial Day to Labor Day.
LIQUIDITY, CAPITAL COMMITMENTS AND RESOURCES
At June 30, 1995, the Company's indebtedness (including capitalized leases)
aggregated $27.5 million, of which approximately $1.9 million is due prior to
June 30, 1996, and $3.5 million represents borrowings under the Company's
revolving credit facility. Amounts outstanding under this facility must be
repaid in full prior to November 1, with reborrowings thereunder permitted
commencing in December. The Company anticipates repaying current indebtedness
from funds generated from operations.
The Company continues to implement the capital improvements program for its
three parks assembled prior to the 1993 season. In connection with this
program, the Company estimates that it expended approximately $6 million prior
to the 1995 season. The Company funded this amount from existing cash, funds
generated from operations and the proceeds of financings. During the fourth
quarter of 1994, the Company consummated a private placement of 3,584,510 shares
of its common stock at a purchase price of $1.35 per share. Of the shares
issued, 485,437 were issued in satisfaction of $655,340 of indebtedness of the
Company. The cash proceeds of approximately $4.184 million have been used to
fund improvements to the parks.
The Company's liquidity could be adversely affected by any event or
condition, such as inclement weather that significantly reduces attendance at
any of its parks.
PART II - OTHER INFORMATION
Item 3 Submission of Matters to a vote of Security-holders
On June 19, 1995 the Company held its annual meeting of stockholders, at
which the Company's then-current directors, Michael E. Gellert, Kieran E. Burke,
Gary Story, Paul A. Biddelman, James F. Dannhauser and Jack Tyrrell, were
elected to serve as directors for an additional one-year term. In addition, the
stockholders approved by a vote of 16,662,817 to 2,870 the selection of KPMG
Peat Marwick LLP as independent auditors for the Company for the year ended
December 31, 1995.
Items 1,2, 4-5
Not applicable
Item 6 Exhibits
(a) Exhibit Number
27 Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
Pursant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this reportg to be signed on its behalf by the
undersigned thereunto duly authorized.
Premier Parks Inc.
------------------------
(Registrant)
KIERAN E. BURKE
-----------------------
Kieran E. Burke
Chairman/
Chief Executive
August 11, 1995 RICHARD R. WEBB
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Date Richard R. Webb
Vice President/Accounting