Income from retail operations increased by $46,941 for the three-month period ended December 31, 2013, 21.6% above the same period in 2012. The General Store showed an $18,178, or 16.4%, increase in revenue, while RV Service and Repair increased revenue 26.8%, or $28,763. Management feels the retail operations increase in revenue reflects increased resort occupancy and resort guests becoming more confident in the overall economy.
The Company anticipates slight to moderate increase in both income from resort operations and in retail operations as the fiscal year progresses.
Operating expenses for the three-month period ending December 31, 2013, increased $102,963, or 10.3%, above the same period ended December 31, 2012. This reflects an increase in labor and labor related expenses, workers compensation, tree trimming, water and sewer, electricity, stockholders expense, and property taxes. Other operating costs remain consistent with the prior year and are considered well managed to create an effective operation.
Cost of goods sold expenses for the three-month period ended December 31, 2013, are 44.9% compared to 47.9% for the same period in 2012, which is within the guidelines established by management for the individual category sales of RV supplies and General Store merchandise.
Interest expense for the three-month period ended December 31, 2013, was $40,295, compared to $48,763 for the same period ending 2012. The current balance reflects the notes payable as a result of purchasing property in May 2008, as well as property purchased February and April of 2006 to increase RV storage. The Company has also maintained a $500,000 line of credit that currently has no outstanding balance as of December 31, 2013.
Income before provisions for income taxes for the three-month period ended December 31, 2013, increased by $14,767 above the same period in 2012. This increase in income is a result of increased total income.
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. It is anticipated the published rates will continue to market site usage at its highest value and not negatively impact the Company's ability to capture an optimum market share.
The Company's current cash position, as of December 31, 2013, is $1,825,511, which is 9.9% more than the same position in 2012. This increase is primarily due to the Company's increase in rental deposits and timing of capital expenditures. The cash balance decreased $280,328 from the fiscal year ended September 30, 2013 due to operations expenses and income tax payments. The Company has maintained cash balances in anticipation for large capital expenditures necessary to upgrade the resort. The Company has also maintained a line of credit of $500,000 to insure funds will be available, if required.