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ANNUAL REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
TO THE 1934 ACT REPORTING REQUIREMENTS
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [Fee Required]
For the fiscal year ended September 30, 1995
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]
For the transition period from ________ to ________
Commission file number 0-8463
PISMO COAST VILLAGE, INC.
(Name of small business issuer in its charter)
California 95-2990441
- ------------------------------ ---------------------------------
(State or other jurisdiction (IRS Employer ID Number)
of incorporation or organization)
165 South Dolliver Street, Pismo Beach, CA 93449
- ---------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Issuer's telephone number (805)773-5649
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange
on Which Registered.
N/A N/A
Securities registered pursuant to Section 12(g) of the Act:
Common Stock
----------------
(Title of Class)
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Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 90 days past.
YES XX NO
-- --
Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB. XX
--
State issuer's revenues for its most recent fiscal year. $2,421,036
State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days (See definition of affiliate in Rule 12b-2 if the Exchange
Act). $ 17,620,000
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. 1800
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FORM 10-KSB PART I
ITEM 1 DESCRIPTION OF BUSINESS
(a) GENERAL DEVELOPMENT OF BUSINESS
Pismo Coast Village, Inc., the "Registrant" or the "Company" was incorporated
under the laws of the State of California on April 2, 1975. The Company's sole
business is owning and operating a recreational vehicle resort (hereinafter the
"Resort") in Pismo Beach, California. The Resort has continued to enhance its
business by adding other service centers related to the repair and storage of
recreational vehicles.
(b) BUSINESS OF ISSUER
The Company is engaged in only one business, namely, the ownership and
operation of the Resort. The Company generates revenue from rental of camping
sites, recreational vehicle storage, recreational vehicle repair and retail
sales from a general store and recreational vehicle parts store. Accordingly,
all of the revenues, operating profit (loss) and identifiable assets of the
Company, are attributable to a single industry segment.
Pismo Coast Village, Inc., is a full service 400 space recreational vehicle
resort. Its operations include site rentals, trailer rentals, RV storage space
and a retail operation. The retail operations include a general store, video
arcade, Laundromat, RV parts store and RV repair shop. In addition, the Company
has a recreation department that provides a youth program and recreational
equipment rentals.
PUBLIC AND SHAREHOLDER USERS
The present policy of the Company is to offer each shareholder the opportunity
for 45 days of free use of sites at the Resort, 25 days may be used during
prime time and 20 days during non-prime time. The free use of sites by
shareholders is managed by designating the days of the year as prime time and
non-prime time. A prime time day is one that is most in demand, for example
Memorial Day weekend and the period from mid-June until Labor Day. Non-prime
time is
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that time with the least demand. Each shareholder is furnished annually a
calendar that designates the prime and non-prime time days, it also provides a
schedule of when reservations can be made and the procedure for making
reservations. Shareholders free use of sites average approximately 20% to 21%
annually, refer to Results of Operations MD&A, page 12.
SEASONAL ASPECTS OF BUSINESS AND EFFECT ON CAPITAL
The business of the Company is seasonal and is concentrated during prime days
of the year which are defined as follows: Washington's Birthday, Easter Week,
Memorial Day Weekend, Summer Vacation Months, Labor Day, Thanksgiving Weekend
and Christmas Vacation.
WORKING CAPITAL REQUIREMENTS
By accumulating reserves during the prime season, the Company is able generally
to meet its working capital needs during the off-season. Industry practice is
to accumulate funds during the prime season and use such funds as necessary in
the off-season.
COMPETITION
The Company is in competition with six other RV parks located within a five-
mile radius. Since its property is the only property located adjacent to the
beach, it has a competitive edge. The Company is recognized as a recreational
vehicle resort rather than a park because of its upgraded facilities and
amenities which include 16 Channels of Satellite TV, a heated pool, a miniature
golf course and a recreational program. The Resort is noted for its ability to
provide full service which includes RV Storage and RV Repair and Service. The
Resort was recognized by TRAILER LIFE MAGAZINE as one of only five premiere
family parks in the United States, and Pismo Coast Village, Inc., was the only
one listed west of the Mississippi River. These factors allow the Resort to
price its site rental fees well above most of its competition based on
perceived value received.
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Competition for the tourist market is keen between the cities on the Central
Coast of California. Resort management and staff are involved with the City of
Pismo Beach, Chamber of Commerce, Conference and Visitors Bureau and Business
Improvement Group and are major sponsors in cooperative events and advertising.
The Resort continues to direct market off season discounts using its
reservation's database to enhance repeat business. The marketing program has
been expanded targeting groups and clubs by providing entertainment and
catering services through the restaurant. The Company's marketing plan was
funded by $31,219 for Fiscal year 1995, which was developed out of operating
revenues. The major source of the Company's business is repeat business, which
has been developed by attention to good customer service.
ENVIRONMENTAL REGULATION
The Company is affected by federal, state and local antipollution laws and
regulations. Due to the nature of its business operations (camping, RV storage
and small retail store sales) the discharge of materials into the environment
is not considered to be of a significant concern and the EPA has not designated
the Company as a potentially responsible party for clean up of hazardous waste.
The main property of the Resort is located within the boundaries of those lands
under the review and purview of the Coastal Commission of the State of
California and the City of Pismo Beach. The water and sewer systems are
serviced by the City of Pismo Beach. The Company is subject to state and
federal regulations regarding the reconstruction of an outflow structure that
empties into Pismo Creek at the north boundary of the Resort. Because the
Resort is within the wetlands area, the California Coastal Commission requires
permits for repair and construction to be reviewed by the following agencies:
City of Pismo Beach, State Lands Commission, Regional Water Quality Board State
of California, California Department of Fish and Game, State Department of
Parks and Recreation and the Army Corps of Engineers. The requirement for
these permits involves the diversion of capital from operations and could
increase cost of debt financing.
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EMPLOYEES
The Company generally employs 35 to 40 persons year round, eleven of whom are
part-time employees. This complement is increased by approximately eight
during the summer season.
The Company considers eight to ten of the employees to be career employees, the
remainder are entry level and part-time workers. The General Manager works
under contract, all other employees are "At Will" employees with no guarantee
of employment. The following chart depicts the number of employees by area of
organization:
Department Full Time Part Time Seasonal
- ---------- --------- --------- --------
Corporate Office 4 1
Accounting Office 3
Reservations 4 4 2
Maintenance 9
RV Operation 4
Store 1 3 2
Recreation 3 4
Total 25 11 8
ADDITIONAL INFORMATION
The Company's business and plan of operation for the fiscal year starting
October 1, 1994, required revision as a result of the flood damage sustained by
a storm water drainage outflow structure on March 10, 1995. The revised plan
considered the requirement to increase capital reserves to fund the rebuilding
of the damaged outflow structure and making capital expenditures for only those
projects considered necessary for business operations and safety.
Capital expenditures in Fiscal Year 1995 included renovation of 124 Sites,
completion of the street and safety lighting project, painting of buildings,
computer equipment upgrade and the completion of an extensive road repair
project required due to the harsh winter weather.
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The proposed business and plan of operation for fiscal year beginning October 1,
1995, was revised to provide funding for repair of the damaged outflow structure
and to accommodate capital projects that are considered necessary to insure the
Company continues to maintain its resort-like facilities. The proposed projects
will include the renovation of 48 sites on the south side of the Resort, minor
renovation of the three restroom complexes, installation of a playground and the
additional upgrade of the administration information computer system.
Beginning October 1, 1994, site rental rates at the Resort were increased to
range from $22 - $26 per day during the off season and $32 - $36 per day during
prime time. Rates were not increased for Fiscal Year 1995-96. The increase in
rates for Fiscal Year 1994-95 was an effort to market site usage at its highest
value and the rate increase didn't adversely affect the Company's ability to
capture optimum market share.
ITEM 2 DESCRIPTION OF PROPERTIES
The Company's principal asset consists of the Resort which is located at 165
South Dolliver Street in Pismo Beach, California. The Resort is built on a 26-
acre site and includes 400 campsites with full hookups and nearby rest rooms
with showers and common facilities, such as a restaurant, video arcade,
recreation hall, general store, swimming pool, Laundromat, and three
playgrounds.
In 1980 the Company purchased a 2.2 acre parcel of real property located at
2050 22nd Street, Oceano, California at a price of $66,564. The property is
being used by the Company as a storage facility for recreational vehicles. The
storage capacity of this lot is approximately 115 units.
In 1981 the Company exercised an option and purchased a 3.5 acre parcel located
at 300 South Dolliver Street, Pismo Beach, California, at a price of $300,000.
The property, which previously had been leased by the Company, is used primarily
as a recreational vehicle storage yard. The storage capacity of this lot is
approximately 216 units.
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The Company in 1988 purchased approximately .8 acres of property at 180 South
Dolliver Street, Pismo Beach, California, across the street from the main
property, consisting of a large building with a storefront and one large
maintenance bay in the rear. Also, on the property is a smaller garage type
building with three parking stalls. The Company enlarged its recreational
vehicle repair operation, added RV storage for approximately eleven units and
developed the storefront into a RV parts store. The property was purchased for
$345,000, of which $300,000 was financed.
There is no deferred maintenance on any of the Resort's facilities. The
Company's facilities are in good condition and adequate to meet the needs of
the shareholder users as well as the public users. The Company continues to
develop sufficient revenue from general public sites sales to support a
continued positive maintenance program and to meet the demands of shareholders
use of free sites. For the Fiscal Year ending September 30, 1995, paid site
occupancy was 39.7% compared to 45.1% in Fiscal Year 1994.
The Resort, RV Repair Shop and Parts Store and two Storage facilities
constitute substantially all the Company's property, are owned in fee. Two
storage lots and beach access used by the shareholders and general public
visitors are leased by the Company pursuant to the herein below described
leases.
1. TRAILER STORAGE YARDS In 1986 the Company leased a parcel of land 100 feet
wide by 1,600 feet long from the Southern Pacific Railroad Corp. The property
is being used by the Company as a storage facility for recreational vehicles.
Capital improvements in the amount of $40,000 were made to this property, which
provides storage for approximately 154 units. The property was leased for $950
per month the first year, $1,400 per month for the second year, with continuing
years tied to the "CPI" Index, Index or Fair Market Value of the property
according to the lease agreement. During Fiscal Year 1995, lease payments were
made in the amount of $29,954, Fiscal Year 1996 lease payments
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will be $34,020 and Fiscal Year 1997 lease payments will be $34,020
plus applicable changes in index or valuation.
In 1991 the Company developed a lease for a five-acre RV storage lot at the
Oceano Airport clear zone as storage for approximately 400 RVs. This lot was
developed to replace a 100-unit storage lot that was closed when the lease was
not renewed. The lease on the new storage lot is for five years with an
additional five-year option. Construction was completed in January 1992 and
capital improvements in the amount of $330,768 were made to this property of
which $300,000 was financed.
Lease payments for the first year of control and occupancy area were $1,500 per
month, $2,000 for the second year and continuing years tied to the "CPI" index.
During Fiscal Year 1995 lease payments were made in the amount of $25,812,
Fiscal Year 1996 lease payments will be $25,691 plus applicable changes in
index, Fiscal Year 1997 lease payments will be $25,691 plus index changes.
The Company holds no lease agreement with any affiliated party.
2. AMENDMENT NO. 4 TO CONTRACT, PISMO STATE BEACH LOCATED IN SAN LUIS OBISPO
COUNTY, PISMO COAST VILLAGE, INC., DATED JULY 1976. Pertaining to the
Boardwalk Concession Contract for construction and maintenance of three
boardwalks to the beach for pedestrians at Pismo State Beach and to provide for
continued access through the sand dunes to the State Beach abutting the Resort.
This contract is between the Company and the State of California Department of
Parks and has been renewed annually since June 30, 1984. The contract was
originally assigned by the former owner to Company by an assignment, dated
December 1, 1975. Continued ocean access is granted annually by payment of a
license fee of $400.
The Resort leases out areas to other companies to insure that the best service
and equipment are available for guest use. These areas are leased from the
Company pursuant to the herein below described leases.
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1. RECREATIONAL ARCADE AGREEMENT WITH COIN AMUSEMENTS, INC. This agreement is
dated October 1, 1994, and pursuant to this agreement the Company granted Coin
Amusements, Inc., the concession to operate various coin-operated game units at
the Resort. The one year term expired on September 30, 1995. This agreement
has been subsequently renewed for a one year term ending September 30, 1996;
continued renewal is expected without significant impact.
2. WEB SERVICE COMPANY, GOLETA, CA. The five-year lease expired on July 23,
1992, and was reissued for a five year period which will expire on July 22,
1997, and grants to Web Service Company the right to place and service coin-
operated laundry machines at the Resort on a 50-50 basis for all revenues
derived from their use.
3. RESTAURANT, AGREEMENT, CAFE KAHUNA, PISMO BEACH, CA. In 1993 the Company
reorganized its restaurant operations from a company-managed facility to a
leased restaurant operation. The concessionaire operates the restaurant
facilities as an independent food service operation. A one year lease was
entered into on December 1, 1994, at an annual rent of $6,800. It is expected
this agreement will be renewed and continued without significant impact. The
Company does not expect to resume operation of restaurant facilities, but
intends to continue leasing to a third party.
ITEM 3 LEGAL PROCEEDINGS
A case was filed in the Municipal Court of San Luis Obispo County, Grover
Beach Branch, case no. 50017, dated August 22, 1994, against the following
defendants: Pismo Coast Village, Inc.; and DOES 1 to 100.
The Plaintiff, Johnny Fabela, claims damages for alleged
personal injuries, a severe fracture, purportedly incurred when the plaintiff
was exiting the premises on his bicycle. The complaint alleges that as a direct
result of the negligence of Pismo Coast Village, pools of water remaining on an
area designated for use by bicyclists, caused a dangerous condition to exist.
Relief is sought for unknown
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general and special damages, costs of suit, and any other relief deemed
appropriate by the Court.
This matter was settled on June 12, 1995, by the Company's insurers for and
in consideration of Five Thousand Dollars ($5,000).
ITEM 4 SUBMISSION OF MATTERS TO VOTE OF SHAREHOLDERS
Paragraph inapplicable
PART II
ITEM 5 MARKET FOR COMMON STOCK AND RELATED SHAREHOLDER MATTERS
(a.) There is no market for the Company's common stock except for limited or
sporadic transactions; however, Mr. Kenneth L. McFarlen, a licensed
broker/dealer, handles sales
of the Company shares as Central Coast Investments. The last transaction the
corporation is aware of occurred on September 20, 1995, at a price of $10,000
for one share conveyed.
(b.) The approximate number of holders of the Company's common stock on
September 30, 1995 was: 1540
(c.) The Company has paid no dividends since it was organized in 1975, and
although there is no legal restriction impairing the right of the Company to
pay dividends, the Company does not intend to pay dividends in the foreseeable
future. The Company selects to invest its available working capital to enhance
the facilities at the Resort.
(d.) Mr. McFarlen, the Company's on-site broker, renewed his agreement which
expired on March 31, 1993, to lease 200 square feet at the Resort, from which
he conducts sales activities in the Company's stock. He has agreed to continue
this lease on a month to month agreement and is current under his lease
agreement. Termination or cancellation may be made by either Lessor or Lessee
by giving the other party ninety (90) days written notice.
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ITEM 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CORPORATE OPERATING FORM
Pismo Coast Village, Inc., operates as a 400 space recreational vehicle
resort. The Corporation includes additional business operations to provide
its users with a full range of services expected of a recreational resort.
These services include a restaurant, general store, video arcade, laundromat,
recreational vehicle repair, parts shop and a RV storage operation.
The Corporation is authorized to issue 1,800 shares, of one class, all with
equal voting rights and all being without par value. Transfers of shares are
restricted by Company Bylaws. One such restriction is that transferees must
acquire shares with intent to hold the same for the purpose of enjoying
camping rights and other benefits to which a shareholder is entitled. Each
share of stock is intended to provide the shareholder with the opportunity
for 45 days of free site use per year. However, if the Corporation is unable
to generate sufficient funds from the general public paid users, the Company
may be required to charge shareholders for services.
Management is charged with the task of developing sufficient funds to operate
the Resort, through site sales to general public guests, by allocating a
minimum of 175 sites to general public use and allocating a maximum of 225
sites for shareholder free use. The other service centers are expected to
generate sufficient revenue to support themselves and/or produce a profit.
CURRENT OPERATING PLANS
Fiscal Year 1995 was the fourth year of a five-year plan to revitalize its
service center and upgrade its facilities. However, due to flooding
conditions which occurred on March 10, 1995, the plan was revised. The
Company had projected the expenditure of approximately $350,000 toward this
plan, however, management decided to limit expenditures to projects required
for operations and safety. This action was taken to allow the Company to
develop larger reserves required to fund construction of a storm water
drainage outfall. The previous
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five-year plan which was in its fourth year will be extended into future years.
The Company completed the renovation of 124 Sites on the south side and plans
to complete an additional 48 during Fiscal Year 1996. The Petromat/road
repair project was revised and additional road work was required to bring the
Resort roadways into good repair. The safety and street lighting project
will be complete by early November 1995. The Company also plans to make minor
upgrades to the three restroom complexes to insure they have guest appeal and
a new playground will be installed on the south side of the Resort. The
Reservations system will be upgraded to increase operational effectiveness.
Work planned in Fiscal Year 1996, excluding the outfall repair, will cost
approximately $127,000. Planned expenditures for the out years will be
developed during the next fiscal year.
FINANCIAL CONDITION
During the fiscal year ended September 30, 1995, there were several events
which impacted the reporting period's profits which were of a short term
duration, and were either non-repetitive or corrected by remedial actions in
the operations of the Company.
The one major impact on the financial condition of the Company was the storm
damage suffered by the storm water drainage outfall. The funding of this
project is expected to cost between $350,000 to $400,000 and require the review
and modification to the Company's business and operational plans for the next
two or three out years. The impact will include reduction of proposed capital
expenditures, such as deferring site enhancement on the north side of the
Resort and deferring the rebuilding of a rest room complex. At this point the
Company feels confident it will be able to meet the required funding, however,
a $150,000 Line of Credit will be established to insure funds are available
during off season periods.
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The Company plans to continue its aggressive policy to reduce its long term
debt and to adopt conservative budgets with managed capital outlay. In
September 1993 two notes were refinanced and the new note used to refinance was
for $461,410; the current balance is $297,291, interest variable (of 8%,
currently 10.75%).
The Board of Directors has directed management to pay an additional $5,000 with
each monthly principal payment made to this note. It is expected additional
payments toward the principal will continue and this will reduce interest
expense and the requirement for financing from outside sources.
The Company is current on its payments on the installment note payable, at 8%
interest with a principal due of $12,872, secured by a deed of trust on a
Company storage lot at 2050 22nd Street, Oceano, California. An installment
note payable, which was secured by Deed of Trust on a parcel of land owned by
the Company located on 300 South Dolliver Street, Pismo Beach, California was
satisfied on February 1, 1995.
The combined principal balance due on the two notes which remain outstanding as
of September 30, 1995, was $310,163. The Company has no other liabilities to
creditors other than current accounts payable arising from its normal day-to-
day operations and advance Resort rental reservation deposits, none of which
are in arrears.
The Board of Directors continues its previously established policy by adopting
a stringent, conservative budget for Fiscal Year 1996, which projects a
positive cash flow of approximately $342,700 from operations. Capital
expenditures planned for 1996 include the continued enhancement of RV sites,
installation of a new playground, upgrading of the computer system and
continuing the enhancement of the maintenance area, equipment and buildings.
These investments are projected to be approximately $127,000, most of which can
be deferred. In addition to the normal capital projects, the repair of the
outfall structure is projected to cost from $350,00 to $400,000. These proposed
capital improvements will be funded from cash from operations, from existing
working capital and, if necessary, from a line of credit obtained by
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the Company in the event projected cash is not developed. Thus, budgeted cash
flow for the year is expected to be well within the Company's capabilities based
on its present working capital position.
LIQUIDITY The Company's policy is to use its ability to generate operating
cash flow to meet its expected future
needs for internal growth. The Company has continued to maintain sufficient
cash so as to not require the use of a short term line of credit during the off-
season period. As part of planned cash management for long-term reserves, in
fiscal year 1994 the Company purchased a $50,000 certificate of deposit.
Net cash provided by operating activities, including purchase of certificate,
totaled $427,831 in 1995, compared to $316,912 in 1994 and $334,704 in 1993.
Cash on hand and Certificates of Deposits for period in 1995 increased over the
period ended 1994 by $126,996, and increased over the period ended 1993 by
$169,806. These fluctuations are a result of marketing a reduced discount
rate, pricing concepts and the added RV Storage space. The increase of cash in
Fiscal Year 1995 and decrease in Fiscal Year 1994 over Fiscal Year 1993 is the
result of deferring selected capital projects that would not detrimentally
affect current business and the establishment of a certificate of deposit
reserve. Future capital expenditures are expected to be funded through normal
operating cash flows.
The major capital expenditures during 1995 consisted of $195,043 for site
enhancements, installation of night/safety lights, road repair, painting of
buildings, computer hardware and clubhouse furniture. Major cash investments
of $166,650 in 1994 included site enhancements and purchase of a trailer moving
vehicle. In 1993, cash investments included enhancement of sites and upgrading
the computer system. Site enhancements have involved installation of curbing,
landscaping, road improvements, sidewalks and crushed granite as a parking
base. These site improvements have assisted management in raising the average
paid rate from $23.63 in 1993, to an average of $23.61 in 1994 and to an
average of $27.97 in 1995.
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The Company has continued to maintain sufficient cash from operations to not
require the addition of long term debt during 1995 or 1994. With the
possibility of requiring additional funds for reconstruction of the storm
damaged structure and winter season, the Company has taken steps to establish a
$150,000 Line of Credit to insure funds will be available if required.
Fiscal Year 1995's current ratio (current assets to current liabilities) of 2.2
improved from prior Fiscal Year 1994's current ratio of 2.0. The increase in
current ratio is the result of deferring capital expenditures which provided
cash for prepayment of current portion of long term debt and bonuses that were
traditionally accrued, but were paid prior to the end of the Fiscal Year 1995.
Working Capital increased to $386,438 at the end of Fiscal Year 1995 compared
with $293,214 at year end Fiscal 1994, and $211,599 Fiscal 1993. This increase
is a result of planned development of cash reserves and deferment of capital
projects that have not detrimentally affected current operations and no
required maintenance has been deferred.
CAPITAL RESOURCES AND PLANNED EXPENDITURES The Company plans capital
expenditures of $127,000 in Fiscal Year 1996 to renovate 48 camping sites,
install a new playground, upgrade restroom buildings, improvements and
upgrading the administrative information system. In addition, the Company
plans to purchase a street sweeper and a utility golf cart. Further, the
Company currently plans to repair damaged outfall structure at the cost of
approximately $350,000. Funding for these projects will be by revenue
generated from the normal course of business and are expected to increase the
Resort's value to its stockholders and the general public.
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(d) RESULTS OF OPERATIONS
(1) YEAR TO YEAR COMPARISON
INCOME: Increased over the prior fiscal year ended September 30, 1994, by
$76,022, or 3.2%, and increased from fiscal year ended September 30,
1993, by $71,371 or 3.0%.
<TABLE>
<CAPTION>
Income by Segment
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Occupancy
% of Shareholder Site Use 20.1% 21.3% 21.5%
% of Site Rental 39.7% 45.1% 43.2%
% of Storage Rental 97.0% 92.9% 83.1%
Resort Operations
Site Rental $1,621,027 $1,553,514 $1,582,357
Storage Operations $ 294,400 $ 279,659 $ 255,383
Support Operations $ 89,336 $ 88,546 $ 101,348
Total $2,004,763 $1,919,019 $1,939,088
Retail Operations
Store $ 291,616 $ 302,718 $ 302,254
RV Repair/Parts $ 124,657 $ 123,278 $ 108,322
Total $ 416,273 $ 425,996 $ 410,576
Total Income $2,421,036 $2,345,015 $2,349,664
</TABLE>
Increases in Resort Operations income can be directly attributed to the $1.00
per site increases in fees in Fiscal Year 1995. In addition, increases can be
attributed to a change in marketing strategies; in fiscal year 1994 midweek
rates were discounted 50% for the period November l, 1993, through June 15,
1994. However, during fiscal year 1995 midweek rates were discounted only 25%
which in turn developed increased revenues. Additional lot space rentals for
recreational vehicle storage also significantly contributed to increased
revenues. Storage revenue has
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increased each year since the Company established a new storage lot and
increased storage capacity by 300 units. The available recreation vehicle space
is approximately 97% full.
Retail operations decreased $9,723, or 2.3%, as compared to Fiscal Year 1994.
The RV Repair and Parts operations growth is directly related to the growth
of the storage operation and the decrease in General Store revenues are a
direct result of a 9.2% shortfall in total occupancy during the current year
compared to fiscal year 1994.
Retail operations reflect an increase in income of $5,697, or 1.4%, above
Fiscal Year 1993. The increase in income in retail operations can be
attributed to the continued increase of revenues in the RV Repair and Parts
operations.
The restaurant operation is no longer a Company revenue center. It was
closed as a Company operation in October of 1992 and is currently being
operated as a leased facility. Currently the Company expects to continue
the leasing out of this facility.
OPERATING EXPENSES: Increased in the year ending September 30, 1995, over the
years ended September 30, 1994, and September 30, 1993, by $22,997 or 1.3%, and
$36,006 or 2.1%, respectively. Increases from Fiscal Year 1994 to Fiscal year
1995 relate directly to $29,713 of expenses caused by a flood condition which
occurred on March 10, 1995. If these expenses had not been required, Operating
Expenses for Fiscal Year 1995 would have been $6,716, or 0.4%, below Fiscal Year
1994. The increase of $36,006, or 2.1%, between Fiscal year 1995 and 1993 is
considered to be within expectations.
INTEREST EXPENSE: Decreased during the year ended September 30, 1995, from the
year ended September 30, 1994, by $1,931, or 4.9%, as a result of increased
principal payments, prepayment of principal, and retirement of debt on an
installation note payable. Interest decreased by $13,195, or 26.2%, from the
year ending September 30, 1993, due to retirement of debt on three equipment
loans and increased principal payments and a reduced rate of interest from 1993
refinancing.
Page 18 of 50
<PAGE>
INCOME BEFORE PROVISION FOR TAXES: Indicated a profit of $146,287 for the year
ended September 30, 1995, compared to a profit of $98,143 for the year ended
September 30, 1994, and a profit of $106,097 for the year ended September 30,
1993. These profits are reflective of the Company's current pricing policies,
and continuing efforts to maximize resort services.
CHANGE IN ACCOUNTING PRINCIPLE: Effective for Fiscal Years beginning 1992,
corporations are required to change their method of computing income taxes
under Financial Accounting Standard 109 as adopted by the American Institute of
Public Accountants. Accordingly the Company adopted Statement of Financial
Accounting Standards 109, "Accounting for Income Taxes" effective October 1,
1992. This change in accounting resulted in a one time benefit of $82,402 for
Fiscal Year 1993. (Reference: Note 6, Financial Statements attached herein).
Inflation has not had a significant impact on our profit position. Company has
increased rates which has more than compensated for the rate of inflation.
ITEM 7 FINANCIAL STATEMENTS
Page 19 of 50
<PAGE>
PISMO COAST VILLAGE, INC.
TABLE OF CONTENTS
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
PAGE
Independent Auditors' Report 3
Balance Sheets September 30, 1995 and 1994 4
Statements of Operations and Changes in Retained Earnings
(Deficit) for the Years Ended September 30, 1995, 1994 and 1993 5
Statements of Cash Flows for the Years
Ended September 30, 1995, 1994 and 1993 6-7
Notes to Financial Statements 8-14
Supporting Schedules:
V - Property, Plant and Equipment for the Years Ended
September 30, 1995, 1994 and 1993 15-16
VI - Accumulated Depreciation, Depletion and Amortization
of Property, Plant and Equipment for the Years
Ended September 30, 1995, 1994 and 1993 17-18
-2-
<PAGE>
[LOGOS]
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
Board of Directors
Pismo Coast Village, Inc.
165 South Dolliver Street
Pismo Beach, California 93449
We have audited the accompanying balance sheets of Pismo Coast Village, Inc. as
of September 30, 1995 and 1994, and the related statements of operations and
changes in retained earnings (deficit) and cash flows for each of the three
years in the period ended September 30, 1995. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Pismo Coast Village, Inc. as of
September 30, 1995 and 1994, and the results of its operations and its cash
flows for each of the three years in the period ended September 30, 1995, in
conformity with generally accepted accounting principles.
In connection with our audit of the aforementioned financial statements, we also
audited the related supporting schedules listed in the accompanying table of
contents. In our opinion, such schedules present fairly the information set
forth therein.
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
October 26, 1995
-3-
<PAGE>
PISMO COAST VILLAGE, INC.
BALANCE SHEETS
SEPTEMBER 30, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
---- ----
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 529,066 $ 352,070
Certificates of deposit 50,000
Accounts receivable 10,960 12,967
Inventory 65,826 72,983
Current deferred taxes 22,624 24,446
Prepaid expenses 74,079 87,929
---------- ----------
Total current assets 702,555 600,395
PISMO COAST VILLAGE RECREATIONAL
VEHICLE RESORT AND RELATED ASSETS
Net of accumulated depreciation 5,423,666 5,463,573
LONG-TERM DEFERRED TAXES 3,536
OTHER ASSETS 8,255 11,381
---------- ----------
Total Assets $6,134,476 $6,078,885
---------- ----------
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 37,796 $ 22,268
Salaries payable 9,200 26,185
Vacation payable 28,456 27,577
Other accrued expenses 32,155 30,722
Rental deposits 179,300 171,958
Income tax payable 6,498
Current portion of long-term debt 22,712 28,471
---------- ----------
Total current liabilities 316,117 307,181
LONG-TERM LIABILITIES
Long-term deferred taxes 23,331
Long-term debt 287,451 369,987
---------- ----------
Total liabilities 626,899 677,168
---------- ----------
STOCKHOLDERS' EQUITY
Common stock - no par value, issued
and outstanding 1,800 shares 5,647,708 5,647,708
Retained earnings (deficit) (140,131) (245,991)
---------- ----------
Total stockholders' equity 5,507,577 5,401,717
---------- ----------
Total Liabilities and Stockholders'
Equity $6,134,476 $6,078,885
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF OPERATIONS AND CHANGES IN RETAINED EARNINGS (DEFICIT)
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
INCOME
Resort operations $2,004,763 $1,919,019 $1,939,088
Retail operations 416,273 425,996 410,576
---------- ---------- ----------
Total income 2,421,036 2,345,015 2,349,664
---------- ---------- ----------
COST AND EXPENSES
Operating expenses 1,747,993 1,724,996 1,711,987
Cost of goods sold 235,817 242,584 255,696
Depreciation 252,447 238,868 223,900
Amortization 1,326 1,327 1,623
Interest 37,166 39,097 50,361
---------- ---------- ----------
Total cost and expenses 2,274,749 2,246,872 2,243,567
---------- ---------- ----------
Income before provision
for taxes on income 146,287 98,143 106,097
Provision for taxes on
income 40,427 29,316 33,052
---------- ---------- ----------
Income before change in
accounting principle 105,860 68,827 73,045
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 83,402
---------- ---------- ----------
NET INCOME 105,860 68,827 156,447
RETAINED EARNINGS (DEFICIT)
Beginning of Year (245,991) (314,818) (471,265)
---------- ---------- ----------
End of Year $ (140,131) $ (245,991) $ (314,818)
---------- ---------- ----------
---------- ---------- ----------
EARNINGS PER SHARE
Income before change in
accounting principle $58.81 $38.24 $40.58
Change in accounting principle 46.33
-------- -------- ---------
Net Income $58.81 $38.24 $86.91
-------- -------- ---------
-------- -------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 105,860 $ 68,827 $ 156,447
--------- --------- ---------
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation 252,447 238,868 223,900
Amortization 1,326 1,327 1,623
Loss on sale of fixed assets 1,796
Proceeds (Purchases) of
certificates of deposit 50,000 (50,000)
(Increase) decrease in accounts
receivable and prepaid expenses 15,857 (12,869) (8,433)
(Increase) decrease in inventory 7,157 (7,895) 7,154
(Increase) decrease in deferred tax assets 5,358 24,341 (52,323)
(Increase) decrease in other assets 1,800 (9,292)
Increase (decrease) in accounts payable 15,528 (30,645) (3,162)
Increase (decrease) in salaries payable (16,985) 6,477 7,458
Increase (decrease) in vacation payable 879 3,646 (2,031)
Increase (decrease) in other accrued expenses 1,433 1,259 (1,129)
Increase (decrease) in income taxes payable 6,498 (4,915) 4,915
Increase (decrease) in deferred income tax 23,331 (4,608)
Increase in rental deposits 7,342 28,491 12,389
--------- --------- ---------
Total adjustments 371,971 198,085 178,257
--------- --------- ---------
Net cash provided by
operating activities 477,831 266,912 334,704
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of equipment 350
Capital expenditures (212,540) (166,650) (142,584)
--------- --------- ---------
Net cash used in investing
activities (212,540) (166,650) (142,234)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term
debt 7,990
Retirement of debt (88,295) (107,452) (112,590)
--------- --------- ---------
Net cash used in financing
activities (88,295) (107,452) (104,600)
--------- --------- ---------
Net increase (decrease) in cash
and cash equivalents 176,996 (7,190) 87,870
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 352,070 359,260 271,390
--------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 529,066 $ 352,070 $ 359,260
--------- --------- ---------
--------- --------- ---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
-6-
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 2
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
SCHEDULE OF PAYMENTS OF INTEREST AND TAXES
Payments for interest $ 37,166 $ 37,156 $ 50,361
Payments for income tax $ 4,880 $ 9,938 $ 1,686
</TABLE>
The accompanying notes are an integral part of these financial statements.
-7-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS
Pismo Coast Village, Inc., (Company) is a recreational vehicle camping resort.
Its business is seasonal in nature with the fourth quarter, the summer, being
its busiest and most profitable.
INVENTORY
Inventory has been valued at the lower of cost or market on a first-in,
first-out basis.
DEPRECIATION AND AMORTIZATION
Depreciation of property and equipment is computed using an accelerated method
based on the cost of the assets, less allowance for salvage value, where
appropriate. Depreciation rates are based upon the following estimated useful
lives:
Building and park improvements 5 to 40 years
Furniture, fixtures, equipment and
leasehold improvements 5 to 31.5 years
Transportation equipment 5 to 10 years
Loan fees of $9,292 net of accumulated amortization of $2,653 and $1,327 at
September 30, 1995 and 1994, respectively, are included with other assets.
Amortization is computed using the straight-line method over seven years. The
balance of other assets at September 30, 1995 and 1994, represents deposits of
$1,616 and $3,416, respectively.
INVESTMENT TAX CREDITS
Investment tax credits are accounted for by the flow-through method.
EARNINGS PER SHARE
The earnings per share is based on the 1,800 shares issued and outstanding.
RECLASSIFICATION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
Reclassification of certain accounts reported in previously issued financial
statements have been made to enhance comparability with current financial
statements.
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Corporation considers all
highly liquid investments including certificates of deposit with a maturity of
three months or less when purchased, to be cash equivalents.
-8-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 2
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAXES
Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the basis of fixed assets and vacations
payable for financial and income tax reporting. The deferred tax assets and
liabilities represent the future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are
recovered or settled. Deferred taxes are also recognized for operating losses
that are available to offset future taxable income taxes.
NOTE 2 - PISMO COAST VILLAGE RECREATIONAL VEHICLE RESORT AND RELATED ASSETS
At September 30, 1995 and 1994, property and equipment, which are recorded at
cost, included the following:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Land $2,680,850 $2,680,850
Building and park improvements 5,020,613 4,871,076
Furniture, fixtures, equipment
and leasehold improvements 1,197,457 1,182,259
Transportation equipment 139,227 139,227
Construction in progress 17,136
---------- ----------
9,055,283 8,873,412
Less accumulated depreciation 3,631,617 3,409,839
---------- ----------
$5,423,666 $5,463,573
---------- ----------
---------- ----------
</TABLE>
Major additions in the year ended September 30, 1995 included, creek
restoration, granite site bases, and safety lighting projects.
NOTE 3 - LONG-TERM DEBT
Long-term debt at September 30, 1995 and 1994, is summarized as follows:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
8% Installment note payable, due in monthly
installments of $125 through April 13,
2010, secured by deed of trust on the
storage lot at 2050 22nd Street, Oceano. $ 12,872 $ 13,322
</TABLE>
-9-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 3
NOTE 3 - LONG-TERM DEBT (CONTINUED)
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
8% Installment note payable, due in monthly
installments of $2,500 through February 1,
1995, secured by deed of trust on 300
South Dolliver, Pismo Beach. $ $ 10,661
10.75% Installment note payable, due in
monthly installments of $4,426 through
August 1, 2000, unpaid balance due in
full September 1, 2000. Interest is
variable, secured by deed of trust on
300 South Dolliver and 180 South Dolliver,
Pismo Beach. 297,291 374,475
-------- --------
310,163 398,458
Less current portion of long-term debt 22,712 28,471
-------- --------
$287,451 $369,987
-------- --------
-------- --------
</TABLE>
Maturities of long-term debt are as follows:
<TABLE>
<CAPTION>
Year Ended September 30, Amount
------------------------ ------
<S> <C>
1996 22,712
1997 26,070
1998 28,929
1999 32,102
2000 190,357
Thereafter 9,993
--------
$310,163
--------
--------
</TABLE>
Total interest cost incurred was $37,166, $39,097 and $50,361 for the years
ended September 30, 1995, 1994 and 1993.
NOTE 4 - COMMON STOCK
Each share of stock is intended to provide the shareholder with a minimum free
use of the park 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 spot.
-10-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 4
NOTE 5 - CARRYFORWARDS RELATING TO FEDERAL INCOME TAXES
The Company files its income tax returns as of September 30, the end of its
fiscal year. At September 30, 1995, the Company had net operating loss
carryforwards which expire as follows:
<TABLE>
<CAPTION>
Federal
-------
<S> <C>
September 30, 2002 $ 35,000
September 30, 2003 23,000
September 30, 2004 61,000
--------
Total Net Operating Loss Carryforwards $119,000
--------
--------
</TABLE>
In addition, the Company has the following tax credits available to offset
future federal tax liabilities:
Approximate investment tax credits expiring as follows:
<TABLE>
<CAPTION>
<S> <C>
September 30, 1996 $ 300
September 30, 1997 2,472
September 30, 1998 3,320
September 30, 1999 2,267
September 30, 2000 2,907
September 30, 2001 356
</TABLE>
NOTE 6 - INCOME TAXES
Effective October 1, 1992, the Company adopted Statement of Financial Accounting
Standard No. 109, "Accounting for Income Taxes" (SFAS 109). SFAS 109 requires,
among other things, a change from the deferred to the asset-liability method of
computing deferred income taxes. This is considered a change in accounting
principle and the net effect of the change resulted in a one time benefit of
$83,402.
The provision for income taxes consists of the following components:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Current:
Federal $ 33,713 $ 11,615 $ 14,124
State 11,738 6,186 6,139
-------- -------- --------
45,451 17,801 20,263
-------- -------- --------
Deferred:
Federal 26,901 16,793 22,835
State 1,788 7,548 4,078
-------- -------- --------
28,689 24,341 26,913
Tax benefit of net operating
loss carryforward:
Federal (33,713) (11,615) (14,124)
State (1,211)
-------- -------- --------
$ 40,427 $ 29,316 $ 33,052
-------- -------- --------
-------- -------- --------
</TABLE>
-11-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 5
NOTE 6 - INCOME TAXES (CONTINUED)
The deferred tax assets (liabilities) are comprised of the following:
<TABLE>
<CAPTION>
1995 1994
------------------ ------------------
Current Long-Term Current Long-Term
------- --------- ------- ---------
<S> <C> <C> <C> <C>
Deferred tax assets:
Federal $20,533 $ $22,420 $20,296
State 2,091 2,026
Deferred tax liabilities:
Federal (4,718)
State (18,613) (16,760)
------- -------- ------- -------
$22,624 $(23,331) $24,446 $ 3,536
------- -------- ------- -------
------- -------- ------- -------
</TABLE>
The above deferred tax assets (liabilities) consist of the following temporary
differences:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Depreciation $(48,806) $(44,388)
-------- --------
Total gross deferred
tax liabilities (48,806) (44,388)
-------- --------
Net operating loss carryforward 23,853 50,302
Federal tax credits 11,622 22,174
Vacation accrual 6,587 6,383
Miscellaneous 6,037 4,063
-------- --------
Total gross deferred
tax assets 48,099 82,922
Deferred tax asset
valuation allowance (10,552)
-------- --------
$ (707) $ 27,982
-------- --------
-------- --------
</TABLE>
The deferred tax asset valuation account decreased by $10,552 during the year
ended September 30, 1995, due to the expiration of some of the federal tax
credits.
The effective income tax rate varies from the statutory federal income tax rate
as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Statutory federal income
tax rate 34.0 % 34.0 % 34.0 %
Increase (decreases):
State income taxes, net of
federal benefit 6.2 8.5 6.4
Effect of graduated tax rates (12.8) (12.6) (10.8)
Miscellaneous .2 .1 1.6
------- ------- -------
Effective Income Tax Rate 27.6 % 30.0 % 31.2 %
------- ------- -------
------- ------- -------
</TABLE>
-12-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 6
NOTE 7 - OPERATING EXPENSES
Operating expenses for the years ended September 30, 1995, 1994 and 1993,
consisted of the following:
<TABLE>
<CAPTION>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Direct labor $ 446,199 $ 475,321 $ 437,307
Administrative salaries 199,321 190,388 187,996
Contract labor 13,707 8,117 7,088
Insurance 179,259 180,260 177,377
Payroll tax expense 64,047 64,703 59,734
Employee travel and training 15,497 15,217 13,202
Property taxes 27,498 27,168 27,932
Taxes and licenses 4,725 4,916 3,999
Corporation expense 55,344 45,834 50,669
Advertising and promotion 31,219 34,402 39,385
Telephone 27,689 31,517 35,509
Security 62,950 63,581 66,804
Office supplies and expense 37,565 35,847 37,490
Custodial supplies 7,314 5,620 7,199
Recreational supplies 3,669 4,823 9,584
Professional services 33,142 21,477 28,455
Retail operating supplies 3,037 3,681 3,105
Repairs and maintenance 54,054 50,988 61,550
Contract services 123,128 120,561 124,274
Equipment lease 1,001 3,051 7,894
Utilities 193,380 204,729 204,700
Auto and truck expense 29,020 31,335 26,829
Rent - storage lots 55,766 52,815 49,604
Bad debts 238 170 195
Service charges 36,813 33,288 28,728
Storm damages 29,713
Uniforms 5,882 9,323 7,890
Miscellaneous 6,816 5,864 7,488
---------- ---------- ----------
Total Operating Expenses $1,747,993 $1,724,996 $1,711,987
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
-13-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995, 1994 AND 1993
PAGE 7
NOTE 8 - OPERATING LEASES
The Company leases two pieces of property to use as storage lots. One is leased
under a cancelable month-to-month lease. The other was entered into effective
August 1, 1991, for five years with an option to extend the lease for an
additional five years. Monthly lease payments are currently $2,141 and are
increased annually based on the Consumer Price Index. Future minimum lease
payments under the second lease are as follows:
<TABLE>
<CAPTION>
Year Ended September 30, Amount
------------------------ ------
<S> <C>
1996 $21,410
-------
Total $21,410
-------
-------
</TABLE>
-14-
<PAGE>
PISMO COAST VILLAGE, INC.
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Column A Column B Column C
- --------------------------------------------------------------------------------------------
Balance at
Beginning of Additions
Period At Cost
- --------------------------------------------------------------------------------------------
<S> <C> <C>
YEAR ENDED SEPTEMBER 30, 1995
Land $2,680,850 $
Buildings and park improvements 4,871,076 187,932
Furniture, fixtures, equipment and
leasehold improvements 1,182,259 15,198
Transportation equipment 139,227
Construction in progress 17,136
---------- --------
$8,873,412 $220,266
---------- --------
---------- --------
YEAR ENDED SEPTEMBER 30, 1994
Land $2,680,850 $
Buildings and park improvements 4,755,732 111,384
Furniture, fixtures, equipment and
leasehold improvements 1,153,424 28,835
Transportation equipment 112,796 26,431
Construction in progress 3,960
---------- --------
$8,706,762 $166,650
---------- --------
---------- --------
YEAR ENDED SEPTEMBER 30, 1993
Land $2,680,850 $
Buildings and park improvements 4,648,042 56,898
Furniture, fixtures, equipment and
leasehold improvements 1,146,550 39,542
Transportation equipment 105,320 7,476
Construction in progress 16,084 38,668
---------- --------
$8,596,846 $142,584
---------- --------
---------- --------
</TABLE>
(Notes 1 and 2 to the accompanying financial statements are incorporated herein
to Schedule V by reference.)
(1) Transfer of assets placed in service during the year.
-15-
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Column D Column E Column F
- --------------------------------------------------------------------------------------------
Other Changes Balance
Add (Deduct) At End of
Retirements Describe Period
- --------------------------------------------------------------------------------------------
<S> <C> <C>
$ $ $2,680,850
(38,395) 5,020,613
1,197,457
139,227
17,136
-------- -------- ----------
$(38,395) $ - $9,055,283
-------- -------- ----------
-------- -------- ----------
$ $ $2,680,850
3,960 (1) 4,871,076
1,182,259
139,227
(3,960)(1)
-------- --------- ----------
$ - $ - $8,873,412
-------- --------- ----------
-------- --------- ----------
$ $ $2,680,850
50,792 (1) 4,755,732
(32,668) 1,153,424
112,796
(50,792)(1) 3,960
-------- --------- ----------
$(32,668) $ - $8,706,762
-------- --------- ----------
-------- --------- ----------
</TABLE>
-16-
<PAGE>
PISMO COAST VILLAGE, INC.
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Column A Column B Column C
- --------------------------------------------------------------------------------------------
Additions
Balance at Charged to
Beginning of Costs and
Period Expenses
- --------------------------------------------------------------------------------------------
<S> <C> <C>
YEAR ENDED SEPTEMBER 30, 1995
Buildings and park improvements $2,643,855 $183,092
Furniture, fixtures, equipment and
leasehold improvements 650,909 58,613
Transportation equipment 115,075 10,742
---------- --------
$3,409,839 $252,447
---------- --------
---------- --------
YEAR ENDED SEPTEMBER 30, 1994
Buildings and park improvements $2,469,625 $174,230
Furniture, fixtures, equipment and
leasehold improvements 594,919 55,990
Transportation equipment 106,427 8,648
---------- --------
$3,170,971 $238,868
---------- --------
---------- --------
YEAR ENDED SEPTEMBER 30, 1993
Buildings and park improvements $2,302,965 $166,660
Furniture, fixtures, equipment and
leasehold improvements 574,443 50,998
Transportation equipment 100,185 6,242
---------- --------
$2,977,593 $223,900
---------- --------
---------- --------
</TABLE>
(Notes 1 and 2 to the accompanying financial statements are incorporated herein
to Schedule VI by reference.)
-17-
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Column D Column E Column F
- --------------------------------------------------------------------------------------------
Other Changes Balance
Add (Deduct) At End of
Retirements Describe Period
- --------------------------------------------------------------------------------------------
<S> <C> <C>
$(30,669) $ $2,796,278
709,522
125,817
-------- --------- ----------
$(30,669) $ - $3,631,617
-------- --------- ----------
-------- --------- ----------
$ $ $2,643,855
650,909
115,075
-------- --------- ----------
$ - $ - $3,409,839
-------- --------- ----------
-------- --------- ----------
$ $ $2,469,625
(30,522) 594,919
106,427
-------- --------- ----------
$(30,522) $ - $3,170,971
-------- --------- ----------
-------- --------- ----------
</TABLE>
-18-
<PAGE>
ITEM 8 CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Inapplicable.
PART III
ITEM 9 DIRECTORS, EXECUTIVE OFFICERS, AND CONTROL PERSONS; COMPLIANCE WITH
SECTION 16(a) OF THE EXCHANGE ACT
(a) Except for new appointees Harry Buchaklian vice Lee Mc Nutt and Danny R.
Shaffer vice Reva Ramey, the Company's Directors were chosen at the
Shareholder's Annual Meeting on January 21, 1995. The Directors serve for one
year, or until their successors are elected. The names, ages, background and
other information concerning the Directors, including other offices held by the
Directors with the Company, are set forth below.
(b) The following is a list of the Company's Directors and Executive Officers
setting forth their functions and experience. There is no family relationship
between the Directors nor between the Directors and the Officers. There is no
understanding or agreement under which the Directors hold office.
HOWARD R. ALLARD, DIRECTOR
Howard R. Allard, age 70, resides at 5161 Diablo Drive, Sacramento,
California 95842. He has a Master's Degree in Education Administration from
California State University, Sacramento. He was an elementary school principal
in the Rio Linda Union School District for 29 years prior to retirement in
1985. He has been a partner since 1978 in Allard Enterprises which maintains
rental properties, and he has also been a partner since 1982 in Allard
Limousine and in the Horse Shoeing Supplies Company since 1987. Mr. Allard has
served on the Board for fifteen years, served as President for three years and
Secretary for two years.
PAGE 37 OF 50
<PAGE>
LUCIAN P. AMOS, DIRECTOR AND VICE PRESIDENT OF ADMINISTRATION
Lucian P. Amos, age 73, resides at 3701 Mesa Grande, Bakersfield,
California 93304. He graduated from Cal Poly, San Luis Obispo, majoring in Dairy
Husbandry. He retired from the Carnation Company as a Fieldman and Production
Manager in 1984 after 35 years. He has been involved with the Kern County Fair
for 28 years serving on various committees. His assignments have included Dairy
Chairman and Poultry Chairman. In May 1992, he was presented the 4H Award of the
Emerald Clover for 25 years of service as an active 4H Leader. In 1994 he was
awarded the honor as most outstanding contributor to the Kern County 4H Program.
He has been on the Board eight years and is currently serving as Vice President
of Administration.
EMILY BARTON, DIRECTOR
Emily Barton is 63 years old. She resides at 4008 Glenbrook Avenue,
Bakersfield, California 93306. She holds an inactive B-1 California
Contractors License and a Supplemental Swimming Pool License C-53. She was
active in the building business for many years. She is still active in the
remodeling and rehabilitation of her properties. She has been in the rental
business for 28 years and is currently active in the rental business. Her
specialty is buying foreclosures. She holds an active Life and Disability
Insurance License and is associated with Cross Town Insurance Co. She is past
President of B'nai B'rith Women Bakersfield Chapter #69. Under her leadership
B'nai B'rith Women received many community service awards. She has served on
the Board for three years.
DONALD J. BIANCHI, DIRECTOR
Donald J. Bianchi is 72 years old. He resides at 3605 Belle Terrace,
Bakersfield, California 93309. He retired from the U.S. Air Force as a
Lieutenant Colonel in 1983 and is a Past President of The Retired Officers
Association (TROA). He was a traffic officer and accident follow-up
investigator for the California Highway Patrol for 31 years until his
retirement in 1978. He is now a licensed state investigator in private
practice. He has served on the Board for twenty years.
Page 38 of 50
<PAGE>
KURT F. BRITTAIN, DIRECTOR AND VICE PRESIDENT - SECRETARY
Kurt F. Brittain is 65 years old and resides at 518 El Modena Avenue,
Newport Beach, California. After his Marine Corps service, he was employed for
more than 33 years by Orange County, California, before his retirement in 1986.
His background includes public works, flood control and manager of the County's
Harbors, Beaches and Parks System. He was in charge of three harbors, seven
beaches and over 26 parks, three of which were camping parks. He has completed
extension courses in business administration, management, recreation and real
estate. He has served on the Board for six years; one year as Vice President of
Administration, three years as Executive Vice President, and is currently
serving as Vice President - Secretary.
ALBERT G. BROWN, DIRECTOR
Albert G. Brown is 72 years old. He resides at 22718 Lone Eagle Road,
Apple Valley, California 92308. He was employed at Hughes Aircraft for 20
years, from 1945 to 1965, TRW Systems for 3 1/2 years, from 1965 to 1968, and
Rohr Industry Inc., for 11 1/2 years, from 1968 until retirement in 1979. He
worked his way up from being an assembler to Senior Industrial Engineer,
reporting directly to the Manager of Industrial Engineering. He has completed
extensive continued education in the field of Industrial Engineering at USC.
He has also been an AARP volunteer for the 55-Alive Senior Driving Course. He
has served on the Board of Directors for ten years, and has served as Vice
President of Administration for two years.
HARRY BUCHAKLIAN, DIRECTOR
Harry Buchaklian is 63 years old. He resides at 1361 E. Ticonderoga Drive,
Fresno California 93720. He has a B.A. Degree from CSUF in Industrial Arts,
and a Secondary Level Teaching Credential in Laboratory Electronics and Small
Engine Repair. His career has included employment as Assistant Manager with
Western Auto Stores, Electronics Instructor at Fresno Technical College and
Technical Supervisor for Sears Roebuck. He retired from Sears Roebuck in 1994.
He previously served on the Board for eleven accumulative years. Mr.
Buchaklian was appointed by the Board on September 16, 1995, to fill a vacancy
created by the resignation of Lee Mc Nutt.
Page 39 of 50
<PAGE>
KEVIN L. EARNEST, DIRECTOR
Kevin Earnest, age 37, resides at 6609 Noah, Bakersfield, CA 93308. He has
been employed for thirteen years by Western States Instrumentation Services,
Inc., a company he founded, owns and serves as President of, which handles
process equipment and services, to the Oil Industry and related companies. He
has served on the Board of Directors for two years.
NORMAN M. GOULD, DIRECTOR
Norman M. Gould is 76 years old. He resides at 10597 Road 30, Madera,
California 93637. He has a B.A. in Education and an M.A. in Administration.
His occupation prior to retirement in 1986 was as the Superintendent of Schools
for Madera County. He was a member of the Board of Directors of Kingsview,
Inc., from 1968 to 1980. He held the positions of Vice Chairman and Chairman
of the Board of the Company. He is currently on the Board of Directors of
Valley Teen Ranch, Inc. Mr. Gould also serves as the president on the Board of
Directors for Camp Sugar Pine, Inc., a nonprofit corporation. He has served on
the Board for seventeen accumulative years, including most recently March 20,
1993, to present, nine years as president, one year as treasurer and two years
as secretary.
MAURICE SULLIVAN GREENBERG, DIRECTOR
Maurice Greenberg is 76 years old. He resides at 17225 Tennyson Place,
Granada Hills, California 91344. He is a Consulting Registered Civil Engineer
and Geotechnical Engineer in California, and Registered Professional Engineer in
nine other states. He worked nineteen years with the Ralph M. Parsons Company,
worldwide engineers and constructors, as vice president and manager of
Geotechnical Services worldwide. Prior to that he worked twenty years as soils
testing and construction inspection and geotechnical engineer for the City of
Detroit, Michigan and has been named a distinguished graduate and member of the
Hall of Fame at Wayne State University where he received his Bachelors Degree.
He retired in 1985 from the Ralph M. Parsons Company. He has a Masters Degree in
Engineering from the University of Michigan. He is a life fellow of the
American Society of Civil Engineers, life member of the Society of American
Military Engineers, and life member of National Rifle Association. He has
served on the Board for ten years, and is currently serving as Executive Vice
President.
Page 40 of 50
<PAGE>
EDWARD D. HINDS, JR., DIRECTOR
Edward D. (Dee) Hinds, Jr., age 68, resides at 3416 West Magill Avenue,
Fresno, California 93711. He was employed by Bank of America serving as a
Branch Officer, Vice President, and Manager for over 38 years prior to his
retirement in 1988. He has served on the Board for fifteen years, and has
served as Vice President - Secretary for three years.
EARL LOWERY, DIRECTOR
Earl Lowery is 59 years old. He resides at 2024 Sherman Street, Simi
Valley, California 93065. He was a Field Engineer with Atlantic Richfield
Company for ten years and was employed by ARCO for 29 years before retirement
in 1994. His responsibilities were engineering design, construction and
maintenance of Marketing Distribution Facilities in the western United States.
Further, his duties included equipment selection and design and installation of
automation systems. He has been a Board member for eighteen years and served
as Vice President for two years.
RONALD NUNLIST, DIRECTOR AND PRESIDENT
Ronald Nunlist, age 57, resides at 1105 Minter Avenue, Shafter, California
93263. He has been employed in the oil business for many years and since 1979
has been employed by Cal Resources LLC as an Operations Foreman. He has served
on the Board for ten years, and is currently serving his fourth year as
President.
JERALD PETTIBONE, DIRECTOR AND CHIEF FINANCIAL OFFICER
Jerry Pettibone, age 69, resides at 4179 Court Drive, Santa Cruz, California
95062. He sold and retired from his company, Pettibone Signs in Santa Cruz, in
October 1988. He started the company in 1960, which operated statewide. Active
in trade associations, he served on the Board of Directors of the National
Electric Sign Association, and on the Board of Directors of the World Sign
Association, serving as National President in 1985-1986. He served on the Board
of Directors of the California Electric Sign Association for 22 years and was
recently elected a Director Emeritus. Also active in Rotary Club, he is a
charter member and Past President of the Capitola/Aptos Club. He has served
Rotary as District Governor of District 5170 in 1983 -
Page 41 of 50
<PAGE>
1984. Mr. Pettibone has been a shareholder since 1979. He has served on the
Board for three years and is currently serving his second term as Chief
Financial Officer.
DANNY R. SHAFFER, DIRECTOR
Danny R. Shaffer is 46 years old and resides at 16620 Johnson Road,
Bakersfield California 93312. Mr. Shaffer been employed for seventeen years as
owner and President of Kern Backhoe Service, Inc., Kern Environmental Service,
and KVS Transportation, oil construction, environmental, and transportation
businesses. He also owns commercial rental properties. Mr. Shaffer was
appointed by the Board on May 20, 1995, to fill a vacancy created by the death
of Reva Ramey.
HENRY VALENTIA, DIRECTOR
Henry Valentia is 71 years old. He resides at 2007 Cardinal Way,
Fairfield, California 94533. He is retired from the U.S. Air Force as a
Lieutenant Colonel in 1969. He has a degree in Industrial Management and an
A.A. in Business Administration. Mr. Valentia also retired from Chevron
Corporation as a Safety Engineer in 1984. He served on the Board of Directors
at Travis Air Force Base Credit Union on its finance committee from June 1979
to June 1984. He has served on the Board for nine years.
JACK N. WILLIAMS, DIRECTOR
Jack N. Williams is 45 years old. He resides at 7801 Revelstoke Way,
Bakersfield CA 93309. Mr. Williams graduated from San Diego State University
in 1974 with a B.S. in Accounting. Following that, he has been employed in the
field of accounting in a variety of industries, including agriculture,
construction, heavy equipment sales, and manufacturing. Mr. Williams
established his own C.P.A. practice in 1983, and has been in practice since
that time. He has served on the Board of Directors for one year.
Page 42 of 50
<PAGE>
CHARLES A. ZAHKA, Director
Charles A. Zahka, age 69, resides at 6300 Alonzo Avenue, Encino, California
91316. He retired as Vice President of the Broadway Department Stores in 1990
after twenty years. He presently serves as a private management consultant.
Mr. Zahka is President of the Stroke Association of Southern California and
Vice-Chairman of the Better Business Bureau of the Southland. He has served on
the Board for seven years, as Secretary for one year and as President for one
year.
LEE MC NUTT, FORMER DIRECTOR
Lee Mc Nutt is 60 years old. He resides at 7568-D Charles Avenue, Fresno,
California 93711. He earned an M.B.A. from Northwestern University in 1962.
He worked in the Mortgage Banking business for over thirty years, was President
of the Gidding Co. for fifteen years, from 1959 to 1974, and President of the
All Valley Mortgage Company for twelve years from 1977 to 1988. He has been
retired since 1988. He has served on the Board of Directors for four years and
served as Executive Vice President for one year until his resignation in July
1995.
REVA RAMEY, FORMER DIRECTOR
Reva M. Ramey is 67 years old. She resides at 3706 Wenatchee Avenue,
Bakersfield, California 93306. She has worked in the management and accounting
fields during her entire career. Her 32 years of work experience include eleven
years with the Bakersfield Ready Mix company, thirteen years with J. M. Sheats,
CPA Firm, and eight years with Rushing Minerals, Inc., all doing business in
Bakersfield, California. She has an extensive background of knowledge in
accounting procedures, office management and business guidelines. Mrs. Ramey
retired from Rushing Minerals, Inc., in 1983 as an accountant, a position she
held for eight years. She has been a shareholder since 1983. She has served on
the Board for two years and died during her third year (March 1995).
Page 43 of 50
<PAGE>
Other Officers and Key Employees:
BLAINE FORREST
ASSISTANT CORPORATE SECRETARY AND GENERAL MANAGER
Blaine Forrest, 58 years old, is employed by the Company as General Manager
and serves as Assistant Corporate Secretary. He resides at 906 Delano Street,
Pismo Beach, California 93449. He has a B.S. Degree in Business Management
from Pacific Christian College and an M.P.A. from the University of San
Francisco. He served in the Military for 31 years from 1955 to 1986 with
assignments as Administrative Officer, Facilities Manager and Comptroller. He
served from 1983 to 1986 as a Deputy Director of the California Conservation
Corps, a position to which he was appointed by the then Governor of California.
His business affiliations include: Member of Board of Directors of California
Travel Parks Association for eight years, from 1987 to 1995, (serving two years
as President), a Director on the Pismo Beach Chamber of Commerce since 1991 and
currently serving as President, serves as a Commissioner on the Pismo Beach
Conference and Visitors Bureau (a position appointed by the Mayor of the City),
and President of the Hospitality Association of Pismo Beach for three years,
1991, 1992 and 1993. Mr. Forrest has served in his position with the Company
for nine years.
ROGER C. LYON, JR.
GENERAL COUNSEL
Roger C. Lyon is a practicing attorney in the State of California and owns
his law firm, Roger C. Lyon, Jr., A Law Corporation. His business address is
1104 Palm Street, Post Office Box 922, San Luis Obispo, California 93406. Mr.
Lyon has acted as outside general counsel to the Corporation since 1984.
FURTHER INFORMATION CONCERNING EXECUTIVE OFFICERS AND DIRECTORS
To the knowledge of the Company, none of the officers or directors have been
personally involved in any bankruptcy or insolvency proceedings. To the
knowledge of the Company, none of the directors or officers have been convicted
in any criminal proceedings (excluding traffic violations and other minor
offenses) or are the subject of a criminal proceeding which is presently
pending, nor have such persons been the subject of any order, judgment, or
decree of any court of competent
Page 44 of 50
<PAGE>
jurisdiction, permanently or temporarily enjoining them from acting as an
investment advisor, underwriter, broker or dealer in securities, or as an
affiliated person, director or insurance company, or from engaging in or
continuing in any conduct or practice in connection with any such activity or in
connection with the purchase or sale of any security, nor was any of such
persons the subject of a federal or state authority barring or suspending, for
more than 60 days, the right of such person to be engaged in any such activity,
which order has not been reversed or suspended.
ITEM 10 EXECUTIVE COMPENSATION
No Officer or Director was paid over $100,000 during the past fiscal year.
REMUNERATION OF DIRECTORS
The directors received no cash remuneration for their service. However, the
directors are entitled to mileage reimbursement for travel to and from meetings
upon request. In addition, they are entitled to use of the Resort for
attending meetings and are provided with food and refreshments in connection
with Board Meetings. The aggregate value of the foregoing during the $18,687.
OPTIONS, WARRANTS OR RIGHTS
The Company has no outstanding options, warrants or rights to purchase any of
its securities.
INDEBTEDNESS OF MANAGEMENT
No member of management was indebted to the Company during its last fiscal
year.
ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS MANAGEMENT
(a) No person owns beneficially of record more than 5% of the Company's
securities.
Page 45 of 50
<PAGE>
SECURITY OWNERSHIP OF MANAGEMENT
(b) The following sets forth the securities beneficially owned, directly, by
all directors and officers as a group as of September 30, 1995.
Amount of Percent
Board Member Title of Class Ownership of Class
Howard Allard Common Stock 1 Share 0.056%
Lucian Amos Common Stock 5 Shares 0.277%
Emily Barton Common Stock 1 Share 0.056%
Donald J. Bianchi Common Stock 2 Shares 0.111%
Kurt Brittain Common Stock 2 Shares 0.111%
Albert Brown Common Stock 2 Shares 0.111%
Harry Buchaklian Common Stock 1 Share 0.056%
Kevin Earnest Common Stock 5 Shares 0.277%
Norman Gould Common Stock 1 Share 0.056%
Maurice Greenberg Common Stock 1 Share 0.056%
Edward Hinds, Jr. Common Stock 1 Share 0.056%
Earl Lowery Common Stock 1 Share 0.056%
Ronald Nunlist Common Stock 4 Shares 0.222%
Jerald Pettibone Common Stock 1 Share 0.056%
Danny Shaffer Common Stock 4 Shares 0.222%
Henry Valentia Common Stock 3 Shares 0.167%
Page 46 of 50
<PAGE>
Jack N Williams Common Stock 1 Share 0.056%
Charles Zahka Common Stock 2 Shares 0.111%
All Officers and
Directors as a Group Common Stock 38 Shares 2.111%
All such shares are owned beneficially and of record, there are no additional
shares known to the Company for which the listed beneficial owner has the right
to acquire beneficial ownership as specified in Rule 13D-3(d)(1) of the
Exchange Act.
c) CHANGES IN CONTROL
Not applicable
ITEM 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
There have been no transactions between the Company and any member of
management, director, officer, any 5% shareholder, promoter or family member of
the foregoing, either during the last two years or proposed.
PART IV
ITEM 13 EXHIBITS AND REPORTS ON FORM 8-K
(a.) Documents Filed as Part of the Report:
Independent Auditor's Report
Balance Sheets as of September 30, 1995 and 1994
Statements of Operations and Retained Earnings (Deficit) for the years ended
September 30, 1995, 1994 and 1993
Statements of Operating Expenses for the years ended September 30, 1995, 1994
and 1993
Statements of Cash Flows for the years ended September 30, 1995, 1994 and
1993
Page 47 of 50
<PAGE>
Notes to Financial Statements
Supporting Schedules:
V. Property, Plant and Equipment for the Years Ended September 30,
1995, 1994 and 1993
VI. Accumulated Depreciation, Depletion and Amortization of Property,
Plant and Equipment for the years ended September 30, 1995 and 1994 and
1993
XIII. Capital Shares as of September 30, 1995 and 1994.
(b.) Reports on Form 8-K - None have been filed during the last quarter of the
period covered by this report.
(c.) Exhibit/Index:
Sequential
Exhibit Number Item Description Page Number
24 Consent of Accountants 24
Page 48 of 50
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
By: /s/ Ronald Nunlist Date: Nov 11, 1995
--------------------------------------- ------------
Ronald Nunlist, President and
Chairman of the Board
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
By: /s/ Ronald Nunlist Date: Nov 11, 1995
---------------------------------------- ------------
Ronald Nunlist, President and
Chairman of the Board
By: /s/ Maurice Greenberg Date: Nov 11, 1995
---------------------------------------- ------------
Maurice Greenberg, Executive Vice President and Director
By: /s/ Kurt Brittain Date: Nov 11, 1995
---------------------------------------- ------------
Kurt Brittain, Vice President - Secretary and Director
By: /s/ Jerald Pettibone Date: 11-11-95
---------------------------------------- ------------
Jerald Pettibone, Vice President - Finance and Director
By: /s/ Lucian Amos Date: 11-11-95
---------------------------------------- ------------
Lucian Amos, Vice President of Administration and Director
By: /s/ Howard Allard Date: 11/11/95
---------------------------------------- ------------
Howard Allard, Director
By: /s/ Emily Barton Date: 11/11/95
---------------------------------------- ------------
Emily Barton, Director
Page 49 of 50
<PAGE>
By: Date:
---------------------------------------- ------------
Donald J. Bianchi, Director
By: /s/ Albert Brown Date: 11/11/95
---------------------------------------- ------------
Albert Brown, Director
By: /s/ Harry Buchaklian Date: 11-11-95
---------------------------------------- ------------
Harry Buchaklian, Director
By: /s/ Kevin Earnest Date: 11-11-95
---------------------------------------- ------------
Kevin Earnest, Director
By: /s/ Norm Gould Date:
---------------------------------------- ------------
Norm Gould, Director
By: /s/ Edward Hinds, Jr. Date: 11-11-95
---------------------------------------- ------------
Edward Hinds, Jr., Director
By: /s/ Earl Lowery Date: 11-11-95
---------------------------------------- ------------
Earl Lowery, Director
By: /s/ Danny Shaffer Date: 11-11-95
---------------------------------------- ------------
Danny Shaffer, Director
By: Date:
---------------------------------------- ------------
Henry Valentia, Director
By: Jack N. Williams Date: 11-11-95
---------------------------------------- ------------
Jack N. Williams, Director
By: /s/ Charles A. Zahka Date: 11-11-95
---------------------------------------- ------------
Charles A. Zahka, Director
Page 50 of 50
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> SEP-30-1995
<CASH> 529,066
<SECURITIES> 0
<RECEIVABLES> 10,960
<ALLOWANCES> 0
<INVENTORY> 65,826
<CURRENT-ASSETS> 702,555
<PP&E> 9,055,283
<DEPRECIATION> 3,631,617
<TOTAL-ASSETS> 6,134,476
<CURRENT-LIABILITIES> 316,117
<BONDS> 0
<COMMON> 5,647,708
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,134,476
<SALES> 416,273
<TOTAL-REVENUES> 2,421,036
<CGS> 235,817
<TOTAL-COSTS> 1,983,810
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 37,166
<INCOME-PRETAX> 146,287
<INCOME-TAX> 40,427
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 105,860
<EPS-PRIMARY> 58.81
<EPS-DILUTED> 58.81
</TABLE>
