UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

For the transition period from __________ to ___________

Commission file number 0-8463

                                                                PISMO COAST VILLAGE, INC.                                                     

(Exact name of registrant as specified in its charter)

                                       California                                                                                    95-2990441          

(State or other jurisdiction of incorporation or organization)                                 (IRS Employer ID No.)

165 South Dolliver Street, Pismo Beach, CA                                                                                     93449  

(Address of Principal Executive Offices)                                                                                         (Zip Code)

                                                                           (805) 773-5649                                                                     

Registrant’s telephone number, including area code

____________________________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

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 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 by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Subsection 232.405) of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES [X]            NO [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

                  [  ] Large accelerated filer                                         [  ]  Accelerated filer

                  [  ] Non-accelerated filer                                           [X]  Smaller reporting company

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      YES [  ]           NO [X]

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 issuer’s 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.         Accountant’s 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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OVERVIEW

The Company continues to promote and depend upon recreational vehicle camping as the primary source of revenue. The rental of campsites to the general public provides income to cover expenses, complete capital improvements, and allow shareholders up to forty-five free nights camping annually. Additional revenues come from RV storage and spotting, RV service and repair, on-site convenience store, and other ancillary activities such as laundromat, arcade, and bike rental.

The Company has been fortunate not to have significant impact due to the current economy. The RVing public actively seeks accommodations on the Central Coast despite volatile fuel prices and personal financial uncertainties. RVing offers an affordable outdoor recreational experience, and the Company provides quality facilities and services in a highly popular location. Total site occupancy is up 8.0% compared to this time last year due to good weather conditions. Occupancy projections look equal to last year throughout the remainder of the fiscal year. Revenues from ancillary operations such as the store, arcade, laundromat, and bike rental are slightly improved year-to-date, and management feels this is directly related to the economy, and this trend will continue throughout the remainder of the fiscal year.

RV storage continues to be a major source of revenue for the Company, and has enjoyed growth of 7.0% for the quarter. At this time, RV Storage is considered at maximum capacity with a substantial waiting list. RV storage provides numerous benefits to the customer, including: no stress of towing, no need to own a tow vehicle, use of RV by multiple family members, and convenience.

Ongoing investment in resort improvements has assured resort guests and shareholders a top quality, up-to-date facility. This quality and pride of ownership was evident when the National Association of RV Parks and Campgrounds Park of the Year was awarded to the resort for 2007-08. In addition, in a national “My Favorite Campground” contest sponsored by Woodalls, Pismo Coast Village was voted as one of the top ten favorite campgrounds for 2011. Also, Pismo Coast Village was one of thirty-four parks nationally to receive an industry rated “A” park from over 33,000 surveys for customer satisfaction in 2014.

The Company’s commitment to quality, value, and enjoyment is underscored by the business’s success due to word of mouth and referrals from guests. In addition, investment for online marketing, ads in the two leading national directories, and trade magazine advertising formulates most of the business-marketing plan.

RESULTS OF OPERATIONS

The Company develops its income from two sources: (a) Resort Operations, consisting of revenues generated from RV site rentals, from RV storage space operations, and from lease revenues from laundry and arcade operations by third party lessees; and (b) Retail Operations, consisting of revenues from General Store operations and from RV parts and service operations.

Income from resort operations for the three-month period ended June 30, 2015, increased $100,341, or 6.1%, above the same period in 2014. Resort Income for the nine months ended June 30, 2015, increased $432,060, or 10.9%, above the same period ended June 30, 2014. This increase in the quarter ending June 30, 2015, is due primarily to a $94,200, or 8.0%, increase in paid site revenue, reflecting a 5.5% increase in paid site occupancy, and a site rental rate increase effective January 1, 2015. The quarterly increase also reflects a 7.0%, or $21,390, increase in the Company’s RV storage program due to new storage customers. The increase in Resort Operations Income for the nine-month period reflects increases in site rental of $334,226, or 12.2%, and $88,718, or 10.0%, in storage activity for the reasons mentioned above. Management feels these increases in revenue reflect ongoing loyalty from return customers that appreciate the Resort’s location and commitment to quality guest services.

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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, 2015, increased $9271, or 2.6%, above the same period in 2014. This increase reflects a $7,068, or 3.2%, increase in the General Store. The RV Service revenue increased by $2,203, or 1.6%, over the previous year. Income from Retail Operations for the nine-month period ending June 30, 2015, decreased by $9,386, or 1.0%, below the same period ended June 30, 2014. This reflects a $39,511, or 8.4%, increase in the General Store income and a $48,898, or 11.7%, decrease in RV Service income. Management feels this increase in revenue from General Store operations reflects current emphasis on logo apparel, and customers’ capability and willingness to spend more money on the resort. The decrease in RV Service reflects operating four months with only one RV technician. The Company anticipates similar activity in both income from resort operations and retail operations through the remainder of fiscal year 2015.

Operating expenses for the quarter ended June 30, 2015, increased $57,406, or 5.2%, from the same period in 2014. This increase in expense is primarily a result of labor and labor related expenses, electricity, and water/sewer, and uniforms. Operating expenses for the nine-month period ended June 30, 2015, increased $187,490, or 5.8%, from the same period in 2014. This increase is primarily due to labor and labor related expenses, credit card processing fees, repairs and maintenance, garbage, and electricity.

Cost of Goods Sold for 2015 are within projected levels at 44.2% of retail sales for the quarter and 44.5% year-to-date. Cost of Goods Sold for 2014 was 44.6% and 45.1%, respectively.

Interest Expense for the three-month and nine-month periods ended June 30, 2015, is $32,215 and $97,230, respectively, compared to $39,484 and $119,066 the previous year. This decrease in interest expense reflects the current interest rate, and the Company’s decision to make an accelerated payment of $200,000 towards the note.

Net Income for the quarter ending June 30, 2014, increased by $78,984, or 23.3%, compared with the same period ending June 30, 2014. This quarterly increase in Net Income is primarily due to increased resort and retail operations income and a decrease in provision for income tax expense. Net Income for the nine-months ending June 30, 2015, increased by $84,019, or 17.7%, compared with the same period ending June 30, 2014. 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 2015 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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LIQUIDITY

The Company's current cash position, as of June 30, 2015, is $2,698,517, which is 33.0% more than the position on September 30, 2014. This increase in cash on hand reflects the current year to date increase in income of $422,674. The present level of cash is being maintained in anticipation of large capital expenditures in the upcoming fiscal year.

Accounts Payable and accrued liabilities increased $58,132 to an amount of $209,903 for June 30, 2015, compared to the same period ending 2014. This increase was primarily due to timing of payment of monthly liabilities. All undisputed payables have been paid in full according to the Company's policy.

Accounts Receivable for the period ending June 30, 2015 increased $5,595 over June 30, 2014, and reflects overall increase in business activity.

The Company has consistently demonstrated an ability to optimize revenues developed from Resort and Retail Operations during the summer season. During other less revenue producing periods, RV storage space and site rentals are paid for in advance and used for Resort improvements and cash reserves. The Company has a revolving line of credit for $500,000 to augment operating or capital expenditure cash needs during off-season periods. The Company considers its financial position sufficient to meet its anticipated future financial requirements. The foregoing information is forward-looking, based upon certain assumptions of future performance, which may not come to fruition.

CAPITAL RESOURCES AND PLANNED EXPENDITURES

The Company planned capital expenditures of approximately $525,000 in fiscal year 2015 to further enhance the resort facilities and services. These projects include new fencing along the resort frontage, road paving, RV storage security, new website, and a new cooling unit for the General Store walk-in cooler. Funding for these projects was, as expected, from normal operating cash flows. These capital expenditures are expected to increase the resort’s value to its shareholders and the general public.

Capital projects are designed to enhance the marketability of the camping sites and enhance support facilities. Recognizing the age of the Resort and increased demands resulting from modern recreational vehicles, the Board has directed management to provide plans to update and improve accommodations of the Resort.

DISCLOSURE CONCERNING WEBSITE ACCESS TO COMPANY REPORTS

The Company makes available on its website, www.pismocoastvillage.com, access to its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission (SEC).

The public may read and copy any of the materials filed with the SEC at the SEC's Public Reference Room located at 100 F Street, N. E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy statements, and other information that the Company files with the SEC.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not Applicable

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ITEM 4T.     CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the "1934 Act"), as of June 30, 2015, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer/General Manager (our principal executive officer) and our Chief Financial Officer (our principal financial officer). Based upon and as of the date of that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as described in Item 8A(T) included with our Annual Report on Form 10-K for the year ended September 30, 2014.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the 1934 Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the 1934 Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

INTERNAL CONTROL OVER FINANCIAL REPORTING

There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated by the SEC under the 1934 Act) during the nine-months ended June 30, 2015, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

No pending legal proceedings against the Company other than routine litigation incidental to the business.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not Applicable

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

ITEM 5.OTHER INFORMATION

Not Applicable

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ITEM 6.EXHIBITS

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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 14, 2015

Signature:   /s/ RONALD NUNLIST

Ronald Nunlist, President and Chairman of the Board

Date:           August 14, 2015

Signature:   /s/ WAYNE HARDESTY

Wayne Hardesty, V.P. - Finance/Chief Financial Officer

(principal financial officer and principal accounting officer)

Date:           August 14, 2015

Signature:   /s/ JAY JAMISON

Jay Jamison, General Manager/Chief Executive Officer

(principal executive officer)

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