Attached files
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EX-31 - EXHIBIT 31.1 - PISMO COAST VILLAGE INC | exhibit31_1.htm |
EX-31 - EXHIBIT 31.2 - PISMO COAST VILLAGE INC | exhibit31-2.htm |
EX-32 - EXHIBIT 32.2 - PISMO COAST VILLAGE INC | exhibit32-2.htm |
EX-32 - EXHIBIT 32.3 - PISMO COAST VILLAGE INC | exhibit32-3.htm |
EXCEL - IDEA: XBRL DOCUMENT - PISMO COAST VILLAGE INC | Financial_Report.xls |
EX-31 - EXHIBIT 31.3 - PISMO COAST VILLAGE INC | exhibit31-3.htm |
EX-32 - EXHIBIT 32.1 - PISMO COAST VILLAGE INC | exhibit32-1.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 Operations 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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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 SECs 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 three-months ended December 31, 2013 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 5. OTHER INFORMATION
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting for the shareholders of Pismo Coast Village, Inc. was held Saturday, January 18, 2014 at 9:00 a.m. at the South County Regional Center, 800 West Branch Street, Arroyo Grande, California 93420. At that meeting, the following Directors were elected to serve until the annual meeting in January 2015 or until successors are elected and have qualified. Following each elected Director's name is the total number of votes cast for that Director:
Brittain, Kurt | 703 |
Buchaklian, Harry | 731 |
Enns, Rodney | 672 |
Eudaly, Douglas | 1,040 |
Fischer, William | 677 |
Hardesty, Wayne | 662 |
Harris, R. Elaine | 842 |
Hearne, Dennis | 702 |
Hickman, Glenn | 672 |
Hughes, Terris | 686 |
Nelson, Garry | 669 |
Nunlist, Ronald | 805 |
Pappi, Jr., George | 696 |
Pettibone, Jerald | 699 |
Plumley, Dwight | 1,065 |
Roberts, Jerry | 670 |
Willems, Gary | 697 |
Williams, Jack | 682 |
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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: | February 10, 2014 |
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Signature: | /s/ RONALD NUNLIST |
| Ronald Nunlist, President and Chairman of the Board |
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Date: | February 10, 2014 |
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Signature: | /s/ WAYNE HARDESTY |
| Wayne Hardesty, V.P. - Finance/Chief Financial Officer |
| (principal financial officer and principal accounting officer) |
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Date: | February 10, 2014 |
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Signature: | /s/ JAY JAMISON |
| Jay Jamison, General Manager/Chief Executive Officer |
| (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 December 31, 2013 and 2012 and the related statements of operations and retained earnings and cash flows for the three-month periods ended December 31, 2013 and 2012. 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 operations and retained earnings, and cash flow for the year then ended, and in our report dated November 12, 2013, we expressed an unqualified 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
February 10, 2014
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PISMO COAST VILLAGE, INC. | |||||
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS | |||||
(UNAUDITED) | |||||
THREE MONTHS ENDED DECEMBER 31, 2013 AND 2012 | |||||
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Three Months
Ended December 31, | ||||
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2013 |
2012 | |||
Income |
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Resort operations | $ | 1,163,950 | $ | 1,078,872 | |
Retail operations | 264,374 | 217,433 | |||
Total income | 1,428,324 | 1,296,305 | |||
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Costs and Expenses |
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Operating expenses | 1,105,223 | 1,002,260 | |||
Cost of goods sold | 118,874 | 104,297 | |||
Depreciation | 90,346 | 82,091 | |||
Total costs and expenses | 1,314,443 | 1,188,648 | |||
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Income from operations | 113,881 | 107,657 | |||
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Other Income (Expense) |
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Interest/dividend income | 1,038 | 963 | |||
Interest expense | (40,295) | (48,763) | |||
Total other income (expense) | (39,257) | (47,800) | |||
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Income Before Provision for Income Taxes | 74,624 | 59,857 | |||
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Income Tax Expense | 38,100 | 27,400 | |||
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Net Income | 36,524 | 32,457 | |||
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Retained Earnings Beginning of Period | 5,630,723 | 4,959,532 | |||
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Redemption of Stock | (95,450) | - | |||
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Retained Earnings End of Period | $ | 5,571,797 | $ | 4,991,989 | |
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Net Income Per Share | $ | 20.48 | $ | 18.16 | |
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The accompanying notes are an integral part of these financial statements.
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PISMO COAST VILLAGE, INC. | |||||
STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||
THREE MONTHS ENDED DECEMBER 31, 2013 AND 2012 | |||||
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2013 |
2012 | |||
Cash Flows From Operating Activities |
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Net Income | $ | 36,524 | $ | 32,457 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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Depreciation | $ | 90,346 | $ | 82,091 | |
Decrease in accounts receivable | 10,880 | 295 | |||
(Increase) Decrease in inventory | (3,869) | 86 | |||
Decrease in deferred taxes | (4,300) | (3,400) | |||
Decrease in prepaid income taxes | - | 30,800 | |||
(Increase) in prepaid expenses | (111,672) | (83,552) | |||
Increase in accounts payable and |
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Accrued liabilities | 38,106 | 95,823 | |||
Decrease in accrued salaries and vacation | (149,620) | (121,529) | |||
Increase (Decrease) in rental deposits | 78,196 | (31,900) | |||
(Decrease) in Income taxes payable | (78,700) | - | |||
Total adjustments | (130,633) | (31,286) | |||
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Net cash provided by (used in) operating activities | (94,109) | 1,171 | |||
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Cash Flows From Investing Activities |
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Capital expenditures | (28,373) | (131,272) | |||
Net cash used in investing activities | (28,373) | (131,272) | |||
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Cash Flows from Financing Activities |
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Redemption of stock | (108,000) | - | |||
Principal repayments of note payable | (49,846) | (41,379) | |||
Net cash used in financing activities | (157,846) | (41,379) | |||
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Net decrease in cash and cash equivalents | (280,328) | (171,480) | |||
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Cash and Cash Equivalents Beginning of Period | 2,105,839 | 1,832,935 | |||
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Cash and Cash Equivalents End of Period | $ | 1,825,511 | $ | 1,661,455 | |
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Schedule of Payments of Interest and Taxes |
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Payments for income tax | $ | 121,124 | $ | - | |
Cash paid for interest | $ | 40,295 | $ | 48,763 | |
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The accompanying notes are an integral part of these financial statements.
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PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2013 AND 2012 AND SEPTEMBER 30, 2013
PAGE 3
NOTE 3 - PISMO COAST VILLAGE RECREATIONAL VEHICLE RESORT AND RELATED ASSETS
At December 31, 2013, September 30, 2013 and December 31, 2012, property and equipment included the following:
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December 31, 2013 |
September 30, 2013 |
December 31, 2012 | |||||
Land | $ | 9,957,263 | $ | 9,957,263 | $ | 9,957,263 | ||
Building and resort improvements | 10,691,168 | 10,691,168 | 10,275,009 | |||||
Furniture, fixtures, equipment and leasehold improvements | 476,623 | 476,623 | 459,976 | |||||
Transportation equipment | 480,881 | 459,718 | 457,989 | |||||
Construction in progress |
| 76,450 |
| 69,240 |
| 179,889 | ||
| 21,682,385 | 21,654,012 | 21,330,126 | |||||
Less: accumulated depreciation |
| (7,373,696) |
| (7,284,448) |
| (7,052,547) | ||
Total | $ | 14,308,689 | $ | 14,369,564 | $ | 14,277,579 |
Depreciation expense for December 31, 2013 and 2012 were $90,346 and $82,091 respectively.
NOTE 4 - LINE OF CREDIT
The Company has a revolving line of credit for $500,000 with Mission Community Bank which expires March 2014 The interest rate is variable, at one percent over West Coast Prime with an initial rate of 4.25 percent at December 31, 2013. The purpose of the line of credit is to augment operating cash needs in off-season months. There were no outstanding amounts on the line of credit as of December 31, 2013 and 2012 and September 30, 2013.
NOTE 5 - NOTE PAYABLE
The Company secured permanent financing on the purchase of storage lot land in Arroyo Grande, California, with Mission Community Bank. The loan was refinanced on April 6, 2006 and consolidated with a note for the purchase of another storage lot in Oceano, California. The total loan currently outstanding is $347,633 and was financed over a period of ten years at a variable interest rate currently at 5.00%. The lot in Oceano was formerly leased for $4,800 per month and was purchased for $925,000. The payments are currently $12,760 per month interest and principal. The Company also secured permanent financing on the purchase of another storage lot in Arroyo Grande, California with Mission Community Bank. The loan originated on May 8, 2008. The total loan currently outstanding is $2,741,093 and financed over a period of ten years at a variable interest rate currently at 5.0%. The payments are currently $15,416 per month interest and principal. The Company secured a vehicle lease with Donahue Transportation Services Corp on a 2008 Tow Truck. The loan originated on December 9, 2009. The total loan currently outstanding is $28,033 and financed over a period of seven years at an interest rate of 8.39%. The payments are currently $799 per month interest and principal. The Company secured a lease which has been classified as a capital lease and included with notes payable. The capital lease is with Donahue Transportation Services Corp on a 2013 Hino Truck. The lease originated on May 10, 2012. The total balance currently outstanding is $59,054 and is financed over a period of seven years at an interest rate of 4.751%. The payments are currently $1,046 per month interest and principal.
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PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2013 AND 2012 AND SEPTEMBER 30, 2013
PAGE 4
NOTE 5 - NOTE PAYABLE (continued)
At December 31, 2013, future minimum payments are as follows:
Period Ending December 31, |
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2014 | $ | 205,416 |
2015 |
| 216,185 |
2016 |
| 136,459 |
2017 |
| 71,899 |
2018 |
| 2,541,705 |
Thereafter |
| 4,149 |
Total | $ | 3,175,813 |
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NOTE 6 - COMMON STOCK
Each share of stock is intended to provide the shareholder with a maximum free use of the resort for 45 days per year. If the Company is unable to generate sufficient funds from the public, the Company may be required to charge shareholders for services.
A shareholder is entitled to a pro rata share of any dividends as well as a pro rata share of the assets of the Company in the event of its liquidation or sale. The shares are personal property and do not constitute an interest in real property. The ownership of a share does not entitle the owner to any interest in any particular site or camping period.
The Company redeemed four shares of Common stock from two shareholders in the current quarter for $108,000. At this time the stock has not been retired.
NOTE 7 - INCOME TAXES
The provision for income taxes is as follows:
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December 31,
2013 |
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December 31,
2012 | ||
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Income tax provision | $ | 38,100 |
| $ | 27,400 |
The Company uses the asset-liability method of computing deferred taxes in accordance with FASB Accounting Standards Codification (ASC) topic 740. The difference between the effective tax rate and the statutory tax rates is due primarily to the effects of the graduated tax rates, state taxes net of federal tax benefit, and non-deductible variable cost of shareholder usage.
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