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EXCEL - IDEA: XBRL DOCUMENT - PISMO COAST VILLAGE INC | Financial_Report.xls |
EX-31.1 - EXHIBIT 31.1 - PISMO COAST VILLAGE INC | exhibit31_1.htm |
EX-31.3 - EXHIBIT 31.3 - PISMO COAST VILLAGE INC | exhibit31_3.htm |
EX-32.3 - EXHIBIT 32.3 - PISMO COAST VILLAGE INC | exhibit32_3.htm |
EX-32.2 - EXHIBIT 32.2 - PISMO COAST VILLAGE INC | exhibit32_2.htm |
EX-32.1 - EXHIBIT 32.1 - PISMO COAST VILLAGE INC | exhibit32_1.htm |
EX-31.2 - EXHIBIT 31.2 - PISMO COAST VILLAGE INC | exhibit31_2.htm |
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES [ ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date. 1,783
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following financial statements and related information are included in this Form 10-Q, Quarterly Report.
1. Accountants Review Report
2. Balance Sheets
3. Statements of Income and Retained Earnings
4. Statements of Cash Flows
5. Notes to Financial Statements (Unaudited)
The financial information included in Part I of this Form 10-Q has been reviewed by Brown Armstrong Accountancy Corporation, the Company's Certified Public Accountants, and all adjustments and disclosures proposed by said firm have been reflected in the data presented. The information furnished reflects all adjustments which, in the opinion of management, are necessary to a fair statement of the results for the interim periods.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information included herein contains statements that may be considered forward-looking statements, such as statements relating to anticipated expenses, capital spending and financing sources. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include, but are not limited to, those relating to competitive industry conditions, California tourism and weather conditions, dependence on existing management, leverage and debt service, the regulation of the recreational vehicle industry, domestic or global economic conditions and changes in federal or state tax laws or the administration of such laws.
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Seasonal fluctuations within this industry are expected, and management projects that income for the fourth quarter will be approximately 40% of its annual revenue. This approximation is based on historical information.
Income from Retail Operations, for the three-month period ending June 30, 2014, increased $27,631, or 8.3%, above the same period in 2013. This increase reflects a $23,493, or 11.9%, increase in the General Store. The RV Service revenue increased by $4,138, or 3.1%, over the previous year. Income from Retail Operations for the nine-month period ending June 30, 2014, increased by $105,356, or 13.5%, above the same period ended June 30, 2013. This reflects a $65,307, or 18.5%, increase in RV Service income and a $40,051, or 9.3%, increase in General Store income. Management feels this increase in revenue from retail operations reflects current emphasis on logo apparel, and customers capability and willingness to spend more money on the resort. The increase in RV Service reflects staff efforts to up-sell service items such as wash and waxes, and roof repair. The Company anticipates similar activity in both income from resort operations and retail operations through the remainder of fiscal year 2014.
Operating expenses for the quarter ended June 30, 2014, increased $88,681 or 8.8%, from the same period in 2013. This increase in expense is primarily a result of labor and labor related expenses, workers compensation insurance, liability insurance, electricity, and water/sewer. Operating expenses for the nine-month period ended June 30, 2014, increased $231,240, or 7.8%, from the same period in 2013. This increase is primarily due to labor and labor related expenses, workers compensation, pool service, RV corporate property tax, storage lot security, accounting, liability insurance, water/sewer, and electricity. Also, reflected in this nine-month increase is savings of $23,767 due to the termination of a storage property lease, and the reduction of interest on Company notes payable of $23,196.
Cost of Goods Sold for 2014 are within projected levels at 44.6% of retail sales for the quarter and 45.1% year-to-date. Cost of Goods Sold for 2013 was 45.1% and 45.8%, respectively.
Interest Expense for the three‑month and nine-month periods ended June 30, 2014, is $39,484 and $119,066, respectively, compared to $46,429 and $142,936 the previous year. This decrease in interest expense reflects the current interest rate, and the Companys decision to make an accelerated payment of $400,000 towards the notes.
Net Income for the quarter ending June 30, 2014, increased by $58,106, or 20.7%, compared with the same period ending June 30, 2013. This quarterly increase in Net Income is primarily due to increased resort and retail operations income. Net Income for the nine-months ending June 30, 2014, increased by $101,188, or 27.1%, compared with the same period ending June 30, 2013. This increase in Net Income is a result of an increase in resort and retail operations income, and a decrease in interest expense. The last quarter of 2014 is expected to provide adequate resources for continuing business and provide for planned capital expenditures.
Management has introduced various marketing promotions with reduced rates to increase revenues during low occupancy periods. However, due to the nature of business and economic cycles and trends, rates may be adjusted accordingly, if deemed necessary. Although the supply‑demand balance generally remains favorable, future-operating results could be adversely impacted by weak demand. This condition could limit the Company's ability to pass through inflationary increases in operating costs as higher rates. Increases in transportation and fuel costs or sustained recessionary periods could also unfavorably impact future results. However, the Company believes that its financial strength and market presence will enable it to remain extremely competitive.
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ITEM 6. EXHIBITS
Exhibit No. |
Description of Exhibit | Sequential Page Number |
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27 | Financial Data Schedule |
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99 | Accountants Review Report |
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31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Ronald Nunlist, President and Chairman of the Board) |
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31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Jay Jamison, Chief Executive Officer and principal executive officer) |
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31.3 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Wayne Hardesty, Chief Financial Officer, principal financial officer and principal accounting officer) |
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32.1 | Certification Pursuant to 18 U. S. C. Subsection 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Ronald Nunlist, President and Chairman of the Board) |
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32.2 | Certification Pursuant to 18 U. S. C. Subsection 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Jay Jamison, Chief Executive Officer and principal executive officer) |
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32.3 | Certification Pursuant to 18 U. S. C. Subsection 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Wayne Hardesty, Chief Financial Officer, principal financial officer and principal accounting officer) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PISMO COAST VILLAGE, INC.
(Registrant)
Date: |
| August 12, 2014 |
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Signature: |
| /s/ RONALD NUNLIST |
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| Ronald Nunlist, President and Chairman of the Board |
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Date: |
| August 12, 2014 |
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Signature: |
| /s/ WAYNE HARDESTY |
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| Wayne Hardesty, V.P. - Finance/Chief Financial Officer |
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| (principal financial officer and principal accounting officer) |
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Date: |
| August 12, 2014 |
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Signature: |
| /s/ JAY JAMISON |
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| Jay Jamison, General Manager/Chief Executive Officer |
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| (principal executive officer) |
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REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors
Pismo Coast Village, Inc.
165 South Dolliver Street
Pismo Beach, California 93449
We have reviewed the accompanying balance sheets of Pismo Coast Village, Inc. (Company) as of June 30, 2014 and 2013, and the related statements of income and retained earnings and cash flows for the three and nine-month periods ended June 30, 2014 and 2013. These interim financial statements are the responsibility of the Company's management.
We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.
We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the balance sheet of the Company as of September 30, 2013, and the related statements of income and retained earnings, and cash flow for the year then ended, and in our report dated November 12, 2013, we expressed an unmodified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of September 30, 2013, is fairly stated, in all material respects.
BROWN ARMSTRONG ACCOUNTANCY CORPORATION
Bakersfield, California
August 12, 2014
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PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2014 AND 2013 (Unaudited) AND SEPTEMBER 30, 2012 (Audited)
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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events
Events subsequent to June 30, 2014 have been evaluated through August 12, 2014, which is the date the financial statements were available to be issued.
NOTE 3 - PISMO COAST VILLAGE RECREATIONAL VEHICLE RESORT AND RELATED ASSETS
At June 30, 2014, September 30, 2013 and June 30, 2013, property and equipment included the following:
| June 30, 2014 |
| September 30, 2013 |
| June 30, 2013 | |||
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Land | $ | 9,957,263 |
| $ | 9,957,263 |
| $ | 9,957,263 |
Building and resort improvements |
| 10,691,168 |
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| 10,691,168 |
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| 10,731,575 |
Furniture, fixtures, equipment and leasehold improvements |
| 515,487 |
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| 476,623 |
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| 470,894 |
Transportation equipment |
| 480,881 |
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| 459,718 |
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| 459,718 |
Construction in progress |
| 373,460 |
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| 69,240 |
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| 68,636 |
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| 22,018,259 |
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| 21,654,012 |
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| 21,688,086 |
Less: accumulated depreciation |
| (7,554,220) |
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| (7,284,448) |
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| (7,224,745) |
| $ | 14,464,039 |
| $ | 14,369,564 |
| $ | 14,463,341 |
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Depreciation expense for June 30, 2014 and 2013 were $269,773 and $253,191, respectively.
NOTE 4- LINE OF CREDIT
The Company has a revolving line of credit with Heritage Oaks Bank for $500,000, expiring March 23, 2015. There is no outstanding amount for the line of credit at June 30, 2014, September 30, 2013 and June 30, 2013.
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