Focused Compounding urges shareholders to vote for Focused Compounding’s nominated director candidates.
The full text of the Operating Plan follows:
Focused Compounding’s Plan for
The upcoming annual meeting of
Capital will be returned in two phases:
-Phase one will consist of multiple one-time events intended to return the greatest amount of cash to shareholders in the shortest amount of time.
-Phase two will consist of ongoing cash returns to shareholders.
Phase One
Sell the two unprofitable parks: (1) Aggieland, and (2)
Add prudent leverage to the Georgia park (e.g. 3x debt/EBITDA).
Pay out all cash beyond what’s needed to maintain a prudent leverage ratio.
Cash could be returned through:
1) a tender offer or stock buyback, and
2) one or two special dividends.
Total cash returned as a result of all Phase One actions combined (i.e. selling both parks and adding leverage) is expected to be between
Phase Two
If the company receives a high EBITDA multiple offer for the Georgia park, sell the entire Company.
Otherwise: each year, pay out a special dividend equal to all cash above the amount needed to maintain the prudent leverage ratio (example: 3x debt/EBITDA).
Cash returned annually during phase two is expected to be around
Improve Investor Relations
- Conduct a reverse stock split of 1-for-100 (example: new share price of
$20 to$60 a share) - Add a head of investor relations
- Host quarterly calls with the majority of time spent on investor Q&A
- Host in-person annual shareholder meetings (with a Q&A session) held at the
Georgia Park - Host an in-person investor day (with a Q&A session) at a location that is easily accessible for finance professionals to attend
Divide Capital Allocation and Park Operating Responsibilities
After selling both unprofitable parks, there will be two remaining entities:
- Wild Animal Safari Georgia – The Georgia park. A pure operating subsidiary responsible for 100% of the company’s earnings. The president will be an experienced amusement park executive, paid a base salary plus incentive compensation based on increases in the Georgia Park’s EBITDA. We believe incentive compensation should represent greater than 50% of this executive’s total pay.
Parks! America, Inc. – A pure holding company with no operations. The president would beGeoff Gannon , holding an unpaid position.
The board’s “Strategic Growth Committee” will be replaced by a “Capital Allocation Committee.” This committee will meet very frequently.
Improve Incentivization of Employees
The President of Wild Animal Safari Georgia (the operating subsidiary) and all employees at the Georgia park will participate in a bonus pool the size of which will be determined by year-over-year improvements in EBITDA. No bonuses will be paid when there is no year-over-year improvement in EBITDA.
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The implementation of this plan is contingent on the election of Focused Compounding’s four (4) director-nominees at the Company’s Annual Meeting. The financial forecasts contained herein are not a guaranty of what will happen, but rather are based on our market knowledge, and what we believe to be conservative forecasts.
Focused Compounding is currently in a proxy contest with the Company, the outcome of which may determine the future of the Company. The Plan outlines what Focused Compounding’s nominees would propose to do if they are elected to the Board of
Contact: andrew@focusedcompounding.com |
Additional Information and Certain Information Regarding the Participants
On
FOCUSED COMPOUNDING STRONGLY ADVISES ALL SHAREHOLDERS OF PARKS! TO READ THE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION. SUCH PROXY STATEMENT IS AVAILABLE AT NO CHARGE ON THE SEC’S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, FOCUSED COMPOUNDING WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO FOCUSED COMPOUNDING’S PROXY SOLICITOR, INVESTORCOM, AT 19 OLD KINGS HIGHWAY S., SUITE 130
Source:
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