QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
TO THE 1934 ACT REPORTING REQUIREMENTS
FORM 10--QSB
U.S. SECURITIEESS 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 March 31, 1998
[ ] 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 ___
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
<PAGE> 1 of 18
State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date:
-1800-
<PAGE> 2 of 18
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. Accountants 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
<PAGE> 3 of 18
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.
During the three-month period ended March 31, 1998, several
seasonal and weather related incidents occurred that impacted the
Company. The Spring Break period, which is one of the Company's
peak periods, fell into the third quarter of Fiscal Year 1998.
During Fiscal Year 1997, Spring Break occurred during the second
quarter. The effects of El Nino's weather pattern also effected
the Company with poor weather, road closures, and above average
rainfall throughout the state of California. As the Company's
primary product is its ability to provide an outdoor experience,
the weather is conducive to creating and maintaining occupancy.
During the month of February 1998, the area experienced 18 days
of rain which created short and canceled site reservations. The
Company's other income sources are dependent upon the occupancy
of the Resort.
Income from Resort Operations for the three-month period ended
March 31, 1998, decreased $122,875, or 30.6%, from the same
period in 1997, and for the six-month period ended March 31,
1998, decreased $106,318, or 13.3%, from the same six-month
period in 1997. These decreases are a result of the previously
mentioned seasonal and weather related incidents. RV Storage
Income is not affected by seasonal and weather incidents and grew
to a 3.6% increase above the same three-month period last year
ending on March 31, 1997, and a 4.9% increase above the same six-
month period last year. Storage Income increases are due to
reaching the facilities' full occupancy.
Income from Retail Operations decreased $20,769, or 22.6%, for
the three-month period ended March 31, 1998, and decreased
$15,841, or 8.9%, for the six-month period ended March 31, 1998,
as compared to the prior year respective periods. These
decreases are a direct result of the decrease in occupancy due to
seasonal and weather related incidents. The decrease for the
six-months ended March 31, 1998, was minimized by continued
growth in the RV Repair and Parts Store of 5.9%.
Interest Income decreased for the threee-month period and the six-
month period endeed March 31, 1998, as compared to the same
periods ended March 31, 1997, by 3.9% and 12.1%, due to the
outstanding debt paid in full during Fiscal Year 1997.
The Company anticipates moderate growth in both income from
Resort Operations and Retail Operations.
After March 31, 1998, the Company negotiated and began escrow for
a parcel of property to be developed as an additional RV storage
yard. The Company currently does not have other plans to
increase or decrease its property and anticipates it will
continue to operate the restaurant by lease to an outside vendor.
<PAGE> 4 of 18
Operating Expenses for the three-month period ending March 31,
1998, increased $21,694, or 5.3%, from the same period in 1997,
and for the six-month period ending March 31, 1998, increased
$62,826, or 7.4%, from the same period in 1997. The Company has
continued performing maintenance tasks on its roads and vehicles,
in addition to an increase in weather related repairs and
expenses. Increases in minimum wages, group health insurance
premiums, and property taxes have increased operating expenses.
Many Operating Expenses were managed to lower levels through the
reduction in occupancy.
Cost of Goods Sold Expenses for the three-month period ended
March 31, 1998, are 59.9% compared to 60.0% for the same period
in 1997. Year-to-date Cost of Goods Sold Expenses were 57.8%
compared to 59.4% for the same period in 1997. These
fluctuations are well within the guidelines established by
management for the individual category sales of RV supplies and
General Store merchandise.
Interest expense for the three-month period ended March 31, 1998,
was reduced by $4,725 below the same period in 1997, and $10,088
below the six-month year-to-date expense of 1997. These
reductions are a result of the Board of Director's decision to
eliminate all outstanding debt in September 1997. The Company
has renewed its $150,000 line of credit.
Loss before provision for taxes on income for the three-month
period ending March 31, 1998, increased by $151,091 and for the
six-month, year-to-date period increased by $174,534 compared
respectively to the same periods ending March 31, 1997. These
increases in loss are a result of the increased maintenance
expenses, weather and differences in Spring Break periods.
Losses during the period are directly attributed to and are
consistent with seasonal occupancy of a tourist oriented
business.
Published occupancy rates for resort operations have remained
consistent for the past three years. These rates are formally
reviewed annually by the Board of Directors and were last changed
in October 1994. Management uses 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, weather
patterns, 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.
<PAGE> 5 of 18
LIQUIDITY
The Company plans capital expenditures of $295,000 in Fiscal Year
1998 to continue its enhancement of camping sites, upgrade
restroom buildings, equipment upgrades, expand administrative and
guest contact areas, maintenance area improvements and upgrade of
computer information systems. Funding for these projects will be
by revenue generated from the normal course of business. The
Company's current cash position as of March 31, 1998, is $381,172
which is 19.7% less than the same position in 1997. This
reduction in cash is the direct result of retirement of all debt
during Fiscal Year 1997. With past growth in its Recreational
Vehicle Storage operation and upon reaching full occupancy of its
owned and leased lots, the Company is in the process of exploring
other available space to continue growth. Future funding of this
project may be from operations or from acquiring new financing.
The Company has renewed a $150,000 line of credit to insure funds
will be available, if required.
The Company has consistently demonstrated an ability to optimize
revenues developed from resort and retail operations during the
summer season. In addition, RV storage space and site rentals
are paid for in advance and are on deposit during the winter
season. These deposits of future revenues for March 31, 1998,
amounted to $45,634, or 13.6% more than the deposits for March
31, 1997. This increase is the difference in the Spring Break
period that fell into March of 1997 and April of 1998.
Accounts payable and accrued liabilities decreased $16,632 due to
the Spring Break period and timing differences in payment of
amounts owed. All undisputed payables have been paid in full
accordingly to the Company's policy.
Capital projects are designed to enhance the marketability of the
camping sites and enhance support facilities. Fourth quarter
site occupancy, storage fill, and retail sales are expected to be
consistent with that of the past year. Capital projects not
completed prior to our busy summer season will be completed after
Labor Day. With the extenuating circumstances of El Nino's
effects, expenditures are expected to provide adequate resources
to support the amounts needed to complete the authorized capital
projects during the fiscal year.
PART II - OTHER INFORMATION
__________________________________
ITEM 1 - LEGAL PROCEEDINGS
Not Applicable
ITEM 2 - CHANGES IN SECURITIES
<PAGE> 6 of 18
Not Applicable
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5 - OTHER INFORMATION
Not Applicable
ITEM 6 - EXHIBITS AND REPORTS ON FORM 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 9
* Contained in Accountant's Review
Report, Exhibit 28.
** Filed Electronically Only
<PAGE> 7 of 18
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: May 6, 1998
Signature:____/s/_______________________
Jerald Pettibone, President
Date: May 8, 1998
Signature:____/s/_______________________
Jack Williams, V.P. Finance / Chief Financial Officer
Date: May 4, 1998
Signature:____/s/_______________________
Allan Bristol, Comptroller / Principal Accounting Officer
10Q3-98.COR.wpd
<PAGE> 8 of 18
PISMO COAST VILLAGE, INC.
FINANCIAL STATEMENTS
(UNAUDITED)
SIX MONTHS ENDED MARCH 31, 1998 AND 1997
TABLE OF CONTENTS
PAGE
Accountant's Review Report 3
Financial Statements
Balance Sheet 4-5
Statements of Operations and Retained Earnings (Deficit)
(Unaudited) 6
Statements of Cash Flows (Unaudited) 7-8
Notes to Financial Statements (Unaudited) 9-12
<PAGE> 9 OF 18
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 March 31, 1998 and 1997, and the related statements of operations
and retained earnings (deficit) for the three and six month periods ended
March 31, 1998 and 1997, and the statements of cash flows for the six
month periods ended March 31, 1998 and 1997, 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, 1997, (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 23, 1997, we
expressed an unqualified opinion on those financial statements.
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
1150 Palm Street
San Luis Obispo, California 93401
April 20, 1998
<PAGE> 10 OF 18
PISMO COAST VILLAGE, INC.
BALANCE SHEETS
MARCH 31, 1998 AND 1997 AND SEPTEMBER 30, 1997
ASSETS
March 31, 1998 September 30, March 31, 1997
(Unaudited) 1997 (Unaudited)
(Audited)
Current Assets
Cash and cash equivalents $ 381,172 $ 410,062 $ 474,456
Accounts receivable 8,025 8,467 6,371
Inventory 70,518 69,597 60,266
Current deferred taxes 80,500 19,000 53,000
Prepaid income taxes 28,461 24,551 21,840
Prepaid expenses 42,666 48,900 40,442
--------- --------- ---------
Total current assets 611,342 580,577 656,375
Pismo Coast Village Recreational
Vehicle Resort and Related Assets
Net of accumulated 5,457,107 5,569,029 5,612,190
depreciation
Other Assets 12,261 6,619 17,396
--------- --------- ---------
Total Assets $6,080,710 $6,156,225 $6,285,961
========= ========= =========
See accountants' review report.
The accompanying notes are an integral part of these financial
statements.
<PAGE> 11-A OF 18
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, 1998 September 30, March 31,
(Unaudited) 1997 1997
(Audited) (Unaudited)
Current Liabilities
Accounts payable and
accrued liabilities 63,192 86,479 79,824
Accrued salaries and vacation 38,153 37,394 33,482
Rental deposits 380,809 184,379 335,175
Current portion of long-
term debt 38,540
--------- --------- ---------
Total current liabilities 482,154 308,252 487,021
Long-Term Liabilities
Long-term deferred taxes 73,000 74,000 72,000
Long-term debt 138,170
--------- --------- ---------
Total liabilities 555,154 382,252 697,191
--------- --------- ---------
Stockholders' Equity
Common stock - no par value, issued
and outstanding 1,800 5,647,708 5,647,708 5,647,708
shares
Retained earnings
(deficit) (122,152) 126,265 (58,938)
--------- --------- ---------
Total stockholders' equity 5,525,556 5,773,973 5,588,770
--------- --------- ---------
Total Liabilities and Stockholders'
Equity $6,080,710 $6,156,225 $6,285,961
========= ========= =========
<PAGE> 11-B OF 18
PISMO COAST VILLAGE, INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
(UNAUDITED)
THREE AND SIX MONTHS ENDED MARCH 31, 1998 AND 1997
For the Three Months For the Six Months
Ended March 31, Ended March 31,
1998 1997 1998 1997
Income
Resort operations $278,884 $401,759 $692,458 $798,776
Retail operations 71,122 91,891 162,438 178,279
Interest income 3,076 3,200 6,426 7,309
-------- -------- -------- --------
Total income 353,082 496,850 861,322 984,364
-------- -------- -------- --------
Cost and Expenses
Operating expenses 430,152 408,458 915,286 852,460
Cost of goods sold 42,610 55,099 93,898 105,974
Depreciation 78,855 75,681 162,855 151,362
Amortization 331 663
Interest 100 4,825 200 10,288
-------- -------- -------- --------
Total cost and
expenses 551,717 544,394 1,172,239 1,120,747
-------- -------- -------- --------
Loss Before Provision for Taxes
on Income (198,635) (47,544) (310,917) (136,383)
Income Tax Expense
(Benefit) (27,500) (10,000) (62,500) (35,000)
-------- -------- -------- --------
Net Loss $(171,135) $(37,544) (248,417) (101,383)
======== ========
Retained Earnings (Deficit)
Beginning of period 126,265 42,445
-------- --------
End of Period $(122,152) $ (58,938)
======== ========
Net Loss Per Share (95.08) (20.86) (138.01) (56.32)
======== ======== ======== ========
See accountants' review report.
The accompanying notes are an integral part of these financial
statements.
<PAGE> 12 OF 18
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 1998 AND 1997
1998 1997
Cash Flows From Operating Activities
Net loss $(248,417) $(101,383)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation $162,855 151,362
Amortization 663
Decrease (increase) in
accounts receivable 442 (249)
Increase in inventory (921) (1,174)
Increase in deferred taxes (62,500) (22,000)
Increase in prepaid income taxes (3,910) (21,840)
Decrease in prepaid expenses 6,234 20,422
Increase in other assets (5,642) (5,080)
Increase (decrease) in accounts payable and
accrued expenses (23,287) 12,701
Increase (decrease) in accrued salaries and
vacation 759 (1,633)
Increase in rental deposit 196,430 137,207
Decrease in income taxes payable (45,000)
------- -------
Total adjustments
270,460 225,379
------- -------
Net cash provided by operating
activities 22,043 123,996
Cash Flows From Investing Activities
Capital expenditures (50,933) (119,760)
------- -------
Net cash used in
investing activities (50,933) (119,760)
Cash Flows From Financing Activities
Retirement of debt (47,016)
-------
Net cash used in financing activities (47,016)
------- -------
Net decrease in cash
and cash equivalents (28,890) (42,780)
Cash and Cash Equivalents -
Beginning of Period 410,062 517,236
------- -------
Cash and Cash Equivalents -
End of Period $ 381,172 $ 474,456
======= =======
See accountants' review report.
The accompanying notes are an integral part of these financial
statements.
<PAGE> 13 OF 18
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 1998 AND 1997
PAGE 2
1998 1997
Schedule of Payments of Interest and Taxes
Payments for interest $ 200 $10,288
Payments for income tax $5,750 $53,771
See accountants' review report.
The accompanying notes are an integral part of these financial
statements.
<PAGE> 14 OF 18
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998 AND 1997 AND SEPTEMBER 30, 1997
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
Earnings (Loss) Per Share
The earnings (loss) per share is based on the 1,800 shares issued and
outstanding.
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.
Deferred Income Tax
Deferred income taxes resulted from a timing difference in recognizing
depreciation expense and net operating loss carryforward.
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.
<PAGE> 15 OF 18
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998 AND 1997 AND SEPTEMBER 30, 1997
PAGE 2
Note 1 - Summary of Significant Accounting Policies (Continued)
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.
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.
Note 2 - Pismo Coast Village Recreational Vehicle Resort and Related
Assets
At March 31, 1998, September 30, 1997 and March 31, 1997, property and
equipment included the following:
March 31, September 30, March 31,
1998 1997 1997
Land $2,680,850 $2,680,850 $2,680,850
Building and park
improvements 5,564,088 5,564,088 5,523,351
Furniture, fixtures, equipment
and leasehold improvements 1,269,625 1,214,381 1,209,979
Transportation equipment 200,400 200,450 148,152
Construction in progress 11,629 15,890 113,899
--------- --------- ---------
9,726,592 9,675,659 9,676,231
Less accumulated depreciation 4,269,485 4,106,630 4,064,041
--------- --------- ---------
$5,457,107 $5,569,029 $5,612,190
<PAGE> 16 OF 18
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998 AND 1997 AND SEPTEMBER 30, 1997
PAGE 3
Note 3 - Long-Term Debt
Long-term debt at March 31, 1998 and September 30, 1997, is zero, long-
term debt at March 31, 1997, is summarized as follows:
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. $ 12,125
10.25% 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. 164,585
-------
176,710
Less current portion of long-term debt 38,540
-------
$138,170
=======
Interest cost incurred was $10,288 for the six months ended March 31, 1997.
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 renewed
effective January 1, 1997, for five years with an option to extend for an
additional five years. Monthly lease payments are currently $2,208 and
are increased annually based on the Consumer Price Index. Future minimum
lease payments under the second lease and an obligation to lease equipment
are as follows:
Year Ended March 31, Amount
1999 $28,968
2000 28,350
2001 26,496
2002 6,624
------
Total $90,438
======
Rent expense under this agreement was $14,428 and $13,579 for the six
months ended March 31, 1998 and 1997, respectively.
<PAGE> 17 OF 18
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998 AND 1997 AND SEPTEMBER 30, 1997
PAGE 4
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 March 31, 1999. The purpose of the loan is to
augment operating cash needs in off season months. There were no
outstanding amounts as of March 31, 1998 and 1997 and September 30, 1997.
Note 6 - 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
period.
Note 7 - Income Taxes
The provision for income taxes is as follows:
March 31, March 31,
1998 1997
Income tax expense (benefit) $(62,500) $(35,000)
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.
Note 8 - Subsequent Event
On April 20, 1998, the Company entered into an agreement to purchase a
six acre parcel for $495,000 to store recreational vehicles. Several
contingencies remain including appraisal, arranging financing and
assessment of environmental impact.
<PAGE> 18 OF 18
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Pismo Coast Village, Inc., for the quarter period ended
March 31, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 381,172
<SECURITIES> 0
<RECEIVABLES> 8,025
<ALLOWANCES> 0
<INVENTORY> 70,518
<CURRENT-ASSETS> 611,342
<PP&E> 9,726,592
<DEPRECIATION> 4,269,485
<TOTAL-ASSETS> 6,080,710
<CURRENT-LIABILITIES> 482,154
<BONDS> 0
0
0
<COMMON> 5,647,708
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,080,710
<SALES> 162,438
<TOTAL-REVENUES> 861,322
<CGS> 93,898
<TOTAL-COSTS> 915,286
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 200
<INCOME-PRETAX> (310,917)
<INCOME-TAX> (62,500)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (248,417)
<EPS-PRIMARY> (138.01)
<EPS-DILUTED> (138.01)
</TABLE>
