Welcome to PRKAProxyFight.com, your ultimate repository for up-to-date information on the ongoing proxy fight between Focused Compounding and Parks! America, Inc.
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Andrew Kuhn
Geoff Gannon
About Focused Compounding
The Focused Compounding Fund is a long-only, equity-focused hedge fund launched by Andrew Kuhn and Geoff Gannon in 2020.
In 2020, the Focused Compounding Fund became the third-largest shareholder in Parks! America by acquiring 17% of the outstanding shares, with the majority purchased from three separate shareholders.
During Q4 of 2023, the Focused Compounding Fund acquired an additional 21% of the outstanding shares in Parks! America from the company's former Chief Executive Officer, solidifying their position as the company’s largest shareholder with a 38.5% ownership stake.
Following the increase in their ownership to 38.5%, the Focused Compounding Fund notified Parks! America of their intent to launch a proxy contest, aiming to bring a new, owner-driven shareholder democracy to the board.
Focused Compounding's plan represents a fundamental change in the way we will manage your company, Parks! America.
It involves several owner-oriented efforts: cost reduction initiatives, potential optimization of our asset base and managerial ranks to focus on a better mix of consistently positive EBITDA-producing properties, and the enhancement of investor relations to make PRKA more investable.
Improve Operations: The board must exercise constant vigilance in cost control by setting and sticking to annual park-by-park operating budgets agreed upon with GMs who are highly incentivized to meet or exceed their budgets each and every year.
De-Centralize Management
Only two corporate positions: CEO and CFO.
All other managers will be assigned a specific park to head as General Manager (GM) with profit/loss responsibility, bonus opportunity, etc.
Incentivize Local Managers and Frontline Employees: Create Monthly Park-by-Park Bonus Pools for ALL Park Employees
The bonus pool will equal a predetermined percentage of the excess of the current calendar month’s park-level EBITDA over record best same calendar month park-level EBITDA. The bonus pool will be paid to non-GM employees and to the general manager. The bonus pool will be paid in cash at the end of each month. We believe this will reduce unnecessary headcount and waste.
Hire New Ad Agency
$1.1 million budget (2023). Switch to a digital/social agency with better creative skills. Cuts to ad spending are likely this year. Future spending will be determined by projected ROI.
Improve Capital Allocation: The board must constantly know the value of each park if sold to a third party or liquidated entirely and how value could be increased if the capital was reallocated. Every park must earn its keep on an ROI basis.
Obtain an Appraisal/Liquidation Analysis for Two of the Parks
Missouri: 225 acres / 650 animals – see-saws between slightly positive (2023) and slightly negative (2022) EBITDA; has $3.4 million in assets at book value.
Aggieland: 450 acres (200 unused) / 650 animals / one oil well – produces negative EBITDA; has $7.7 million in assets at book value.
Work with Bank
Capital Expenditures
$1.4 million budget (2024 est.). Cuts to cap-ex likely this year. Future spending will be determined by projected ROI.
Improve Investor Relations: Enhance PRKA's stock investability by establishing accountability with investor base.
Reverse-Stock-Split
1-for-100 reverse stock split. Shareholders holding 99 shares or less will receive cash. PRKA’s split-adjusted stock price will be in line with a more common trading price for listed, more liquid stocks, etc.
Report on Progress
Host quarterly earnings calls with investors.
Annual Shareholder’s Meeting
A shareholder meeting will be held annually at one of the company’s parks. CEO will participate in a (as long as needed to answer all questions) Q&A session with shareholders. Q&A session will be re-played/archived on the company’s website.
Board Nominees
Geoff Gannon
Geoff Gannon is the Portfolio Manager at Focused Compounding Fund, LP, and has served in that position since 2020. The Focused Compounding Fund owns 38.5% of Parks! America. Prior to launching the Focused Compounding Fund, LP in 2020, Geoff served as the Portfolio Manager of Focused Compounding Capital Management, a separately managed accounts firm that was launched in 2018 and is still active today. Since 2005, Mr. Gannon has been writing and sharing information on numerous topics surrounding value investing. Since 2018, Mr. Gannon has regularly produced a podcast jointly with Mr. Kuhn on which they efficiently and effectively explain investment strategy to their followers who look to them for in-depth but understandable advice.
Andrew Kuhn
Andrew Kuhn is the Managing Member of the General Partner and the Operations Manager at Focused Compounding Fund, LP, and has served in such position since 2020. The Focused Compounding Fund owns 38.5% of Parks! America. Prior to launching the Focused Compounding Fund, LP in 2020, Andrew served as the Operations Manager of Focused Compounding Capital Management, a separately managed accounts firm that was launched in 2018 and is still active today. Through his X (formerly known as Twitter) account, Mr. Kuhn regularly engages with over 40,000 users and provides key insight and thoughts on investment and business strategies. Since 2018, Mr. Kuhn has regularly produced a podcast jointly with Mr. Gannon on which they efficiently and effectively explain investment strategy to their followers who look to them for in-depth but understandable advice.
Jacob McDonough
Jacob McDonough is the Founder and Portfolio Manager of McDonough Investments, which was founded in 2021. McDonough Investments is a capital management firm that manages capital for clients as a registered investment adviser. From 2017 to 2021, Mr. McDonough served as an investment analyst for New Constructs, LLC, an independent research technology firm that provides insights into the fundamentals and valuation of thousands of publicly traded businesses. During Mr. McDonough’s time at New Constructs, he reviewed and analyzed thousands of Forms 10-K and 10-Q to reverse accounting distortions and built reverse discounted cash flow models that gauge expectations implied in stock prices. Neither McDonough Investments nor New Constructs is a parent, subsidiary, or other affiliate of Parks! America, Inc. In 2014, Mr. McDonough earned a Bachelor of Arts in Finance from Michigan State University. Mr. McDonough produces content regarding complex financial topics to provide investors with key financial information in easy-to-understand formats. He is the author of “Capital Allocation: The Financials of a New England Textile Mill (1955-1985),” a book that covers Warren Buffett’s capital reallocation from a failing textile mill to other profitable companies during the early days of his control over Berkshire Hathaway. In addition, Mr. McDonough runs a podcast called “The 10-K Podcast” in which he analyzes prior annual reports for industry-leading companies. He also regularly posts blog articles with research and analysis. We believe that Mr. McDonough’s experience in capital management and financial analysis will allow him to maximize shareholder value as a director.
Ralph Molina
Ralph Molina brings more than seven years of experience across investor relations, small business consulting, investment research, mergers and acquisitions, and venture capital. He currently serves as a Senior Investor Relations Analyst at The Cheesecake Factory (NASDAQ:CAKE). In this role, he is responsible for executing all strategic and tactical elements of the investor relations program, from quarterly earnings to the Annual Shareholder Meeting. Additionally, he currently serves as an Advisor to the San Diego State University’s Aztec Consulting Program, an award-winning program that has served nearly one thousand small and medium sized businesses in the San Diego region. From 2021 to 2023, Mr. Molina served as an Investor Relations Analyst at Edison International (NYSE: EIX). From 2019 to 2020, he served as a Deals Associate at PricewaterhouseCoopers, specializing in valuations related to mergers and acquisitions. From 2018 to 2019, he served as a Venture Capital Associate at University Growth Fund, investing in Airbnb and Postmates, among other companies. From 2017 to 2018, he served as the Founder and President of Business Consulting Group. Mr. Molina has a Bachelor of Science in Finance from San Diego State University. We believe that Mr. Molina’s experience in managing investor relations programs, valuing businesses related to investments, mergers and acquisitions, and developing strategic plans for small businesses would make him a valuable addition to the Board. Based on his experience, he would be able to engage with shareholders and existing company structures and personnel to formulate and effectively communicate a plan for continued business health and growth.
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