QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
TO THE 1934 ACT REPORTING REQUIREMENTS
FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ______________ to ______________
Commission file number #0-8463
PISMO COAST VILLAGE, INC.
(Exact name of small business issuer as specified in its charter)
California 95-2990441
(State or other jurisdiction of (IRS Employer I.D. Number)
incorporation or organization)
165 South Dolliver Street, Pismo Beach, California 93449
(Address of Principal Executive Offices)
(Issuer's telephone number) (805) 773-5649
(Former name, former address and former fiscal year, if changed since
last report)
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 past 90 days.
Yes X No ___
<PAGE>
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes X No _____
FORM 10-QSB
State the number of shares outstanding of each of the issuers classes of
common equity, as of the latest practicable date: -1800-
<PAGE>
PART I
__________
Financial Information
_________________________
ITEM 1 - FINANCIAL STATEMENTS
The following financial statements and related information are included in
this Form 10-QSB, Quarterly Report.
1. Accountant's Review Report
2. Balance Sheets
3. Statement of Operations and Retained Earnings (Deficit)
4. Statement of Cash Flows
5. Notes to Financial Statements (Unaudited)
The financial information included in Part 1 of this Form 10-QSB has been
reviewed by Glenn, Burdette, Phillips and Bryson, 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 within the meaning of Section 21E of the Securities
Exchange Act of 1934, 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.
RESULTS OF OPERATIONS
The Company develops its income from two sources: (a) Resort Operations,
consisting of revenues generated from RV site rentals, from RV storage space
operations, and from lease revenues from restaurant, laundry, and arcade
operations by third party lessees; and (b) Retail Operations, consisting of
revenues from general store operations and from RV parts and service
operations.
<PAGE>
Resort Operations Income for the three-month period ended June 30, 1997,
decreased $5,918, or 1.1%, from the same period in 1996. Retail Operations
Income decreased $6,257, or 5.2%, for the same quarter. These decreases are a
result of less of the Spring Break period, a higher occupancy period,
occurring in April 1997 than April 1996. For the nine-month period ending
June 30, 1997, Resort Operations increased $37,900, or 2.9%, from the same
period in 1996. Retail Operations increased $10,480, or 3.7%, from the same
nine-month period in 1996. These increases for the nine-month period reflect
the growth in paid site occupancy. This occupancy increase reverses the
decline during the first quarter and the company anticipates continued growth
in occupancy over its peak summer period and into the first quarter of next
fiscal year. Seasonal fluctuations within this industry are expected and
management projects that income for the fourth quarter will be approximately
40% of its annual revenue. This approximation is based on historical
information.
The company currently does not plan to increase or decrease its property and
anticipates it will continue to operate the restaurant by lease to an outside
vendor. Effective June 1, 1997, and with the end of the prior lease
agreement, the company entered into a restaurant lease with an equally
experienced vendor.
Operating Expenses for the quarter ended June 30, 1997, increased $51,806, or
12.6%, from the same period in 1996. This increase in expense is a result of
increased Resort maintenance planned for value enhancement before the summer
season, and an increase in local water usage and availability fees. Water
usage will continue to increase due to the addition of new sod lawns on the
north side and state water availability fees will continue until this local
mandated fee has completed funding of the state water pipeline. Operating
Expenses for the nine-month period ended June 30, 1997, increased $80,073, or
6.5%, from the same period in 1996. In addition to the explanation above for
the quarter, other costs remain consistent with the prior year and are
considered well managed to create an effective operation.
Cost of Goods Sold for 1997 are within projected levels at 60.6% for the
quarter and 59.9% year-to-date. Cost of Goods Sold for 1996 were 56.8% and
56.3% respectively.
Interest Expense continues to decline from increased payments to principal.
The Board of Directors has directed management to reduce the principal on one
loan by an additional $5,000 each month through May of 1997 and $10,000
thereafter when permitted by anticipated cash flows. Following June 30, 1997,
the Board of Directors directed management to pay off all principal and
interest on the installment note payable secured by a deed of trust on 300
South Dolliver and 180 South Dolliver, Pismo Beach. This payoff will
significantly reduce interest expense, long term, and short term liabilities.
Depreciation for the three-months ending June 30, 1997, increased $2,047, or
2.5% from the same period in 1996. Depreciation for the nine-months ending
June 30, 1997, increased $24,018, or 11.4% from the same period in 1996.
Depreciation has increased due to the replaced outfall structure compled in
the third quarter of 1996.
Net Income for the quarter ending June 30, 1997, decreased by $64,704, or
95.2%, as compared
<PAGE>
with the same period ending June 30, 1996. Net income for
the nine months ending June 30, 1997, decreased by $55,633, or 131.0%, as
compared with the same period ending June 30, 1996. The last quarter of 1997
is expected to provide adequate resources for continuing business and provide
for planned capital expenditures. Of the last seven years, with each year-end
being profitable, the company has shown losses from $ 42,475 to $229,759 as of
the end of the first nine months. Losses during this period are consistent
with the seasonal occupancy of a tourist orientated business.
Published occupancy rates for the resort operations have remained consistent
for the past three years. These rates are formally reviewed annually by the
Board of Directors and last changed in October 1994. Management has
introduced various marketing promotions with reduced rates to increase
revenues during low occupancy periods. The company during these three years
has seen some of its fixed and variable costs increase and decrease and has
not seen any significant trend to warrant an increase in rates. However, due
to the nature of business and economic cycles and trends, rates may be
adjusted accordingly if deemed necessary. Although the supply-demand balance
generally remains favorable, future operating results could be adversely
impacted by weak demand. This condition could limit the Company's ability to
pass through inflationary increases in operating costs as higher rates.
Increases in transportation and fuel costs or sustained recessionary periods
could also unfavorably impact future results. However, the Company believes
that its financial strength, and market presence will enable it to remain
extremely competitive.
Cash balances as of June 30, 1997 increased $168,731 or 40.3% as compared with
June 30, 1996 and increased $69,728 or 13.5% from September 30, 1996. These
increases are a reflection of Fiscal Year 1996 having the largest
capitalization of the company's last ten years mainly due to the replacement
of the outfall structure.
Accounts Payable for the period ended June 30, 1997 increased $43,079 or 77.8%
as compared to the period ended June 30, 1996. This increase is partially due
to the prepayment of some vendors in 1996 and to June 1997 increases in
maintenance, inventory purchases, and resort improvements before the beginning
of the major summer season period of July and August. All undisputed payables
have been paid in full accordingly to the company's policy.
LIQUIDITY
For the nine-months ended June 30, 1997, net cash provided by operating
activities totaled $399,135. Net cash used in investing activities totaled
$253,110 that consisted of the Company's continuing resort enhancements of the
north side sites with a sod and granite base pad. Other resort enhancements
included a new maintenance vehicle and renovation of the laundry room. Net
cash used in financing activities totaled $76,297 reducing the Company's
outstanding debt, no further financing was required. As a result, the
Company had cash of $586,964 compared with $418,233 at June 30, 1996.
The Company has consistently demonstrated an ability to optimize revenues
developed from Resort and Retail Operations during the summer season. During
other, less revenue producing periods, RV storage space and site rentals are
paid for in advance and used for Resort improvements and cash reserves. The
Company has a revolving line of credit for $150,000 to augment operating or
capital expenditure cash needs during off season periods. There are no
<PAGE>
amounts outstanding on this line of credit and future capital expenditures are
expected to come from operating activities. Future investing activities
include a new trailer moving vehicle, reservation and accounting computer
hardware and software, renovation of a resort office building, renovation of a
restroom building, and enhancements to the maintenance area. Future financing
activities include early retirement of debt. The Company considers its
financial position sufficient to meet its anticipated future financial
requirements. The foregoing information is forward looking, based upon
certain assumptions of future performance, which may not come to fruition.
Following June 30, 1997, the Board of Directors directed management to pay off
all principal and interest on the installment note payable secured by a deed
of trust on 300 South Dolliver and 180 South Dolliver, Pismo Beach. This July
payoff of $122,192 will significantly reduce future interest expense, long
term, and short term liabilities.
The rebuilding of the outfall structure damaged in the rains of 1995 is
reflected in balances of: Depreciation of 1997; Accounts Payable of 1996; and
Capital Expenditures of 1996. For the nine months ended June 30, 1997,
current Capital Expenditures of $253,110 include the renovation of 123 camping
sites, installation of road and walk lighting, and renovation of laundry room
area. Renovation of 123 camping sites is expected to enhance the appearance
and marketability of the sites.
The company's payments for income taxes include balances due from Fiscal 1996
plus prepayments for Fiscal 1997. As listed with the Notes to Financial
Statements, Note 8 - Income Taxes, the company recognized tax benefits based
on annual effective tax rates.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Not Applicable
ITEM 2 - CHANGES IN SECURITIES
Not Applicable
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5 - OTHER INFORMATION
Upon General Manager and Assistant Corporate Secretary's death on
April 20, 1997, the Board of Directors searched for a replacement. On June 2,
1997, Jay Jamison began
<PAGE>
employment as General Manager for the Resort. Mr. Jamison received a B.S.
degree from Cal Poly, San Luis Obispo and has extensive experience with the
recreational vehicle industry and related guest services.
ITEM 6 - EXHIBITS AND REPORTS ON THE 8-K
(a) Exhibit Index:
Sequential
Exhibit Number Item Description Page Number
24 Consent of Accountants *
27 Financial Data Schedule **
28 Accountant's Review
Report 8
* Contained in Accountant's Review
Report, Exhibit 28.
** Filed Electronically Only
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
PISMO COAST VILLAGE, INC.
Date: _______8/14/97_________________
Signature:____________/s/____________
Jerald Pettibone, President
Date: ________8/14/97________________
Signature:_____________/s/___________
Jack Williams, V.P. Finance / Chief Financial Officer
Date: ________8/8/97__________________
<PAGE>
Signature:__________/s/_______________
Allan Bristol, Comptroller / (Principal Accounting Officer)
10qs6-97.cor
<PAGE>
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
1150 Palm Street
San Luis Obispo, California 93401
PISMO COAST VILLAGE, INC.
FINANCIAL STATEMENTS
(UNAUDITED)
NINE MONTHS ENDED JUNE 30, 1997 AND 1996
ACCOUNTANTS' REVIEW REPORT
Board of Directors
Pismo Coast Village, Inc.
165 South Dolliver Street
Pismo Beach, California 93449
We have made a review of the balance sheets of Pismo Coast Village, Inc. as
of June 30, 1997 and 1996, and the related statements of operations and
retained earnings (deficit) for the three month and nine month periods ended
June 30, 1997 and 1996, and the statements of cash flows for the nine month
periods ended June 30, 1997 and 1996, in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. All information included in these financial
statements is the representation of the management of Pismo Coast Village,
Inc.
A review of interim financial information consists principally of obtaining
an understanding of the system for the preparation of interim financial
information, applying analytical review procedures to financial data, and
making inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an examination in accordance with
generally accepted auditing standards which will be performed for the full
year with the objective of expressing 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 referred to
above for them to be in conformity with generally accepted accounting
principles.
We previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of September 30, 1996, (presented herein)
and the related statements of operations and retained earnings (deficit) and
cash flows for the year then ended (not presented herein); and in our report
dated October 17, 1996 we expressed an unqualified opinion on those financial
statements.
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
San Luis Obispo, California
July 16, 1997
<PAGE>
PISMO COAST VILLAGE, INC.
BALANCE SHEETS
June 30, September 30, June 30,
1997 1996 1996
(Unaudited) (Audited) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $586,964 $517,236 $418,233
Accounts receivable 10,049 6,122 6,900
Inventory 59,803 59,092 70,712
Current deferred taxes 32,000 25,000 47,000
Prepaid income taxes 32,760 8,890
Prepaid expenses 8,506 60,864 8,977
------- ------- -------
Total current assets 730,082 668,314 560,712
Pismo Coast Village Recreational
Vehicle Resort and Related Assets -
Net of accumulated depreciation 5,662,089 5,643,793 5,713,509
Other Assets 14,338 12,979 15,724
--------- --------- ---------
Total Assets $6,406,509 $6,325,086 $6,289,945
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $98,473 $37,244 $55,394
Salaries payable 434 1,633
Vacation payable 33,482 33,482 28,456
Other accrued expenses 22,155 29,879 22,443
Rental deposits 449,490 197,968 438,780
Income tax payable 45,000
Current portion of
long-term debt 41,376 33,495 31,075
------- ------- -------
Total current liabilities 645,410 378,701 576,148
Long-Term Liabilities
Long-term deferred taxes 63,000 66,000 33,500
Long-term debt 106,054 190,232 215,195
------- ------- -------
Total liabilities 814,464 634,933 824,843
------- ------- -------
Stockholders' Equity
Common stock - no par value,
issued and outstanding 1,800
shares 5,647,708 5,647,708 5,647,708
Retained earnings (deficit) (55,663) 42,445 (182,606)
--------- --------- ---------
Total stockholders' equity 5,592,045 5,690,153 5,465,102
--------- --------- ---------
Total Liabilities and
Stockholders' Equity $6,406,509 $6,325,086 $6,289,945
========= ========= =========
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
(UNAUDITED)
For the Three Months For the Nine Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
Income
Resort operations $523,304 $529,222 $1,329,389 $1,291,489
Retail operations 113,251 119,508 291,530 281,050
------- ------- --------- ---------
Total income 636,555 648,730 1,620,919 1,572,539
------- ------- --------- ---------
Cost and Expenses
Operating expenses 464,496 412,690 1,316,956 1,236,883
Cost of goods sold 68,629 67,928 174,603 158,276
Depreciation 83,452 81,405 234,814 210,796
Amortization 332 332 995 995
Interest 4,371 6,689 14,659 22,064
------- ------- --------- ---------
621,280 569,044 1,742,027 1,629,014
------- ------- --------- ---------
Income (Loss) Before
Provisionfor Taxes
on Income 15,275 79,686 (121,108) (56,475)
Income Tax Expense
(Benefit) 12,000 11,707 (23,000) (14,000)
------- ------- -------- ---------
Net Income (Loss) $3,275 $67,979 (98,108) (42,475)
Retained Earnings (Deficit)
Beginning of period 42,445 (140,131)
-------- --------
End of period $(55,663) $(182,606)
======== ========
Net Income (Loss)
Per Share $1.82 $37.77 $(54.50) $(23.60)
======= ======= ======== ========
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED JUNE 30, 1996 AND 1995
1997 1996
Cash Flows From Operating
Activities
Net loss $(98,108) $(42,475)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation $234,814 $210,796
Amortization 995 995
Decrease (increase) in accounts
receivable (3,927) 4,060
Increase in deferred taxes (10,000) (14,207)
Increase in prepaid income taxes (32,760) (8,890)
Decrease in prepaid expenses 52,358 65,102
Increase in inventory (711) (4,886)
Increase in other assets (2,354) (8,464)
Increase in accounts payable 61,229 17,598
Decrease in salaries payable (1,199) (9,200)
Decrease in other accrued
expenses (7,724) (9,712)
Decrease in income tax payable (45,000) (6,498)
Increase in rental deposits 251,522 259,480
------- -------
Total adjustments 497,243 496,174
Net cash provided by ------- -------
operating activities 399,135 453,699
Cash Flows From Investing Activities
Capital expenditures (253,110) (500,639)
------- -------
Net cash used in investing
activities (253,110) (500,639)
Cash Flows From Financing Activities
Retirement of debt (76,297) (63,893)
------- -------
Net cash used in financing
activities (76,297) (63,893)
------- -------
Net increase (decrease) in
cash and cash equivalents 69,728 (110,833)
Cash and Cash Equivalents at Beginning
of Period 517,236 529,066
------- -------
Cash and Cash Equivalents at End
of Period $586,964 $418,233
======= =======
Schedule of Payments of Interest and Taxes
Payments for interest $14,659 $22,064
Payments for income tax $64,691 $15,388
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1997 AND 1996 AND SEPTEMBER 30, 1996
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 resort 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 $4,973 at June 30,
1997, $3,646 at June 30, 1996 and $3,978 at September 30, 1996, are included
in other assets. Amortization is computed using the straight-line method
over seven years.
Investment Tax Credits
Investment tax credits are accounted for by the flow-through method.
Earnings (Loss) Per Share
The earnings (loss) 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 Company considers all highly
liquid investments including certificates of deposit with a maturity of three
months or less when purchased, to be cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Company to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual
results could differ from those estimates.
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1997 AND 1996 AND SEPTEMBER 30, 1996
PAGE 2
Note 1 - Summary of Significant Accounting Policies (Continued)
Revenue and Cost Recognition
The Company's revenue is recognized on the accrual basis as earned based on the
date of stay. Expenditures are recorded on the accrual basis whereby expenses
are recorded when incurred, rather than when paid.
Note 2 - Pismo Coast Village Recreational Vehicle Resort and Related Assets
At June 30, 1997, September 30, 1996 and June 30, 1996, property and
equipment included the following:
June 30, 1997 September 30, 1996 June 30, 1996
Land $2,680,850 $2,680,850 $2,680,850
Building and resort
improvements 5,746,117 5,521,908 5,520,838
Furniture, fixtures,
equipment and leasehold
improvements 1,218,632 1,205,415 1,206,007
Transportation
equipment 155,266 148,152 148,227
Construction in
progress 8,717 147
--------- --------- ---------
9,809,582 9,556,472 9,555,922
Less accumulated
depreciation 4,147,493 3,912,679 3,842,413
--------- --------- ---------
$5,662,089 $5,643,793 $5,713,509
Note 3 - Long-Term Debt
Long-term debt at June 30, 1997, September 30, 1996 and June 30, 1996, is
summarized as follows:
June 30, 1997 September 30, 1996 June 30, 1996
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. $ 11,992 $ 12,384 $ 12,510
10.5% 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. 135,438 211,343 233,760
------- ------- -------
147,430 223,727 246,270
Less current portion
of long-term debt 41,376 33,495 31,075
------- ------- -------
$106,054 $190,232 $215,195
======= ======= =======
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1997 AND 1996 AND SEPTEMBER 30, 1996
PAGE 3
Note 3 - Long-Term Debt (Continued)
Maturities of long-term debt are as follows:
Year Ended June 30, Amount
1998 $41,376
1999 45,925
2000 49,964
2001 713
2002 772
Thereafter 8,680
-------
$147,430
=======
Note 4 - 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 January 1, 1997, for five years with an option to extend the lease
for an additional five years. Monthly lease payments are currently $2,160
and are increased annually based on the Consumer Price Index. Future minimum
lease payments under the second lease are as follows:
Year Ended June 30,
1998 $25,920
1999 25,920
2000 25,920
2001 10,800
------
Total $88,560
Rent expense under this agreement was $19,440 for the nine months ended
June 30, 1997.
Note 5 - Line of Credit
The Company has a revolving line of credit for $150,000. The interest rate
is variable at two percent over prime, with an initial rate of 10.50 percent
expiring December 28, 1997. The purpose of the loan is to augment operating
cash needs in off season months. There were no outstanding amounts as of
June 30, 1997.
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1997 AND 1996 AND SEPTEMBER 30, 1996
PAGE 4
Note 6 - Common Stock
Each share of stock is intended to provide the shareholder with a minimum
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.
Note 7 - Carryforwards Relating to Federal Income Taxes
The Company files its income tax returns as of September 30, the end of its
fiscal year. At June 30, 1997, the Company has the following tax credits
available to offset future federal tax liabilities:
Approximate investment tax credits expiring as follows:
September 30, 2000 $2,501
September 30, 2001 356
Note 8 - Income Taxes
The provision for income taxes is as follows:
June 30, June 30,
1997 1996
Income tax expense (benefit) $(23,000) $(14,000)
Effective September 30, 1993, 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. SFAS 109 also
requires that if income is expected for the entire year, but there is a net
loss to date, a tax benefit is recognized based on the annual effective tax
rate.
The difference between the effective tax rate and the statutory tax rates is
due primarily to the effects of the graduated tax rates and state taxes net of
the federal tax benefit.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF PSMO COAST VILLAGE, INC., FOR THE NINE MONTH PERIOD
ENDED JUNE 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 586,964
<SECURITIES> 0
<RECEIVABLES> 10,049
<ALLOWANCES> 0
<INVENTORY> 59,803
<CURRENT-ASSETS> 730,082
<PP&E> 9,809,582
<DEPRECIATION> 4,147,493
<TOTAL-ASSETS> 6,406,509
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0
0
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<EPS-PRIMARY> (54.50)
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</TABLE>
