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 December 31, 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 ___
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 _____
<PAGE> 1 of 16
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> 2 of 16
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 16
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.
Income from Resort Operations for the three-month period ended
December 31, 1997, increased $16,557, or 4.2%, from the same
period in 1996. These increases are a result of an increase in
RV group and holiday period occupancy which are at a higher rate
then weekday business. RV storage income grew to a 6.2%
increase above the same three-month period last year ending on
December 31, 1996, primarily due to obtaining full occupancy of
the storage operation. Income from retail operations increased
by $ 4,928, or 5.7%, for the three-month period ended December
31, 1997, above the same period in 1996. This increase is a
result of continuing growth in the RV repair and parts store.
Growth in RV storage and RV repairs also contributed to an
increase in Accounts Receivables, however, none that are
significantly uncollectible. Interest income decreased 18.5% for
the three-month period ended December 31, 1997, below the same
period in 1996 due to the use of funds to eliminate outstanding
debt in September 1997. The Company anticipates continued
moderate growth in both income from resort operations and in
retail operations.
The Company currently has no plans to increase or decrease its
property and anticipates it will continue to operate the
restaurant by lease to an outside vendor.
Operating expenses for the three-month period ending December 31,
1997, increased $41,132, or 9.3%, above the same period ended
December 31, 1996. During this seasonal slow business period,
the Company performed maintenance tasks on its roads and
vehicles. Prorated property taxes increased due to a water tax
placed on several of the Company's owned parcels. Other
operating costs remain consistent with the prior year and are
considered well managed to create an effective operation. The
Company has a spending plan that is managed by expense item; each
expense is assigned a percent of income earned.
Cost of Goods Sold expenses for the three-month period ended
Decembeerr 31, 1997, are 56.2% compared to 58.9% for the same
period in 1996, which is well withhin the guidelines established
by management for the individual category sales of RV supplies
and General Store merchandise.
Interest expense for the three-month period ended December 31,
1997, was reduced by $5,363 below the same period in 1996. This
reduction is the result of the Board's decision to eliminate all
outstanding debt in September 1997. The Company has renewed its
$150,000 line of credit.
Loss before provisions for taxes on income for the three-month
period ended December 31, 1997, increased by $23,443 above the
same period in 1996. This increase of loss is a result of
increased managed operating expenses and an increase in
depreciation expense for the site improvements that were
completed in June of 1997. Losses during this 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 has introduced various marketing
promotions with reduced rates to increase revenues during low
occupancy periods. The Company, during these
<PAGE> 4 of 16
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.
LIQUIDITY
The Company plans capital expenditures of $295,000 in Fiscal Year
1998 to continue its enhancement of camping sites, upgrade
restroom buildings, replace an electrical generator, expand
offices, maintenance area improvements and upgrade of computer
information systems. During the first quarter of Fiscal 1998,
the information system and generator were completed. Funding for
these projects will be by revenue generated from the normal
course of business. The Company's current cash position as of
December 31, 1997, is $335,302 which is 18.1% less than the same
position in 1996. 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 taken steps to
renew 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 December 31, 1997,
amounted to $13,130, or 8.4%, less then the deposits for December
31, 1996. This decrease is a result of a decrease in the
difference in the number of winter vacation days that fell into
January. These additional stay over days were collected in
advance and realized as revenue in January 1997.
Accounts payable and accrued liabilities increased $57,430 due to
the December purchase of the generator, vehicle repairs, and
timing differences in payment of amounts owed. All undisputed
payables have been paid in full accordingly to the Company's
policy.
Expenditures are consistent with prior years' operations and are
expected to provide adequate resources to support the amounts
committed to complete the authorized capital projects during the
fiscal year. Fourth quarter site occupancy and storage fill are
expected to be consistent with that of the past year. Capital
projects are designed to enhance the marketability of the camping
sites and enhance support facilities. Capital projects not
completed prior to our busy season will be completed after Labor
Day.
PART II - OTHER INFORMATION
__________________________________
<PAGE> 5 of 16
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
The annual meeting for the shareholders of Pismo Coast
Village, Inc., was held on Saturday, January 17, 1998,
at 9:00 a.m. at the South County Regional Center, 800
West Branch Street, Arroyo Grande, California 93420.
At that meeting the following Directors were elected to
serve until the annual meeting in January 1999, or
until successors are elected and have qualified, and
following each elected Director's name is the total
number of votes cast for that Director:
Allard, Howard 920
Barton, Emily 971
Bianchi, Donald 957
Brittain, Kurt 865
Brown, Albert 953
Buchaklian, Harry 1,065
Drake, Frank 859
Gould, Norman 841
Hinds, Jr., Edward 863
Hughes, Terris 855
Keller, Larry 864
Nunlist, Ronald 906
Pettibone, Jerald 856
Proschold, Richard 802
Rourke, Thomas 928
Valentia, Henry 934
Williams, Jack 838
Zahka, Charles 844
<PAGE> 6 of 16
Further, the following additional matters were voted upon at the
meeting, and the number of affirmative votes and negative votes
cast with respect to each such matter is set forth below:
(a) A proposal to approve the selection of Glenn, Burdette,
Phillips and Bryson to serve as independent certified public
accountants for the Company for the fiscal year 1997.
Affirmative Votes Negative Votes
880 8
ITEM 5 - OTHER INFORMATION
The annual meeting of the stockholders of Pismo Coast Village,
Inc., was held on Saturday, January 17, 1998, at 9:00 a.m. at
the South County Regional Center, 800 West Branch Street, Arroyo
Grande, California 93420. Following that meeting, the newly
elected Board held a reorganizational meeting at which the
following officers were elected to serve until the next Annual
Stockholders Meeting:
President Jerald Pettibone
Executive Vice President Harry Buchaklian
V.P. Finance/Chief Financial Officer Jack Williams
V.P. Administration Frank Drake
V.P. Secretary Edward Hinds, Jr.
Assistant Corporate Secretary Jay Jamison
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 16
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: February 6, 1998
Signature:__________/s/____________________
Jerald Pettibone, President
Date: February 12, 1998
Signature:______/s/__________________
Jack Williams, V.P. Finance /Chief Financial Officer
Date: February 4, 1998
Signature:_____/s/_________________________
Allan Bristol, Comptroller / Principal Accounting Officer
10Q12c97.WPD
<PAGE> 8 of 16
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 December 31, 1997 and 1996, and the related statements
of operations and retained earnings (deficit) and cash flows for the
three month periods ended December 31, 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, 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 unqalified opinion on those financial statements.
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
1150 PALM STREET
SAN LUIS OBISPO, CA 93401
January 19, 1998
<PAGE> 9 of 16
PISMO COAST VILLAGE, INC.
BALANCE SHEETS
DECEMBER 31, 1997 AND 1996 AND SEPTEMBER 30, 1997
December 31, September 30, December 31,
1997 1997 1996
(Unaudited) (Audited) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $335,302 $410,062 $409,579
Accounts receivable 11,486 8,467 5,980
Inventory 68,915 69,597 62,132
Current deferred taxes 56,000 19,000 39,000
Prepaid income taxes 24,551 24,551
Prepaid expenses 38,831 48,900 46,210
------------ ------------ ------------
Total current assets 535,085 580,577 562,901
Pismo Coast Village
Recreational Vehicle Resort
and Related Assets -
Net of accumulated
depreciation 5,532,012 5,569,029 5,573,807
Other Assets 4,770 6,619 10,593
------------ ------------ ------------
Total Assets $6,071,867 $6,156,225 $6,147,301
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $118,326 $86,479 $60,896
Accrued salaries and vacation 37,416 37,394 34,990
Rental deposits 143,434 184,379 156,564
Current portion of
long-term debt 35,983
------------ ------------ ------------
Total current liabilities 299,176 308,252 288,433
Long-Term Liabilities
Long-term deferred taxes 76,000 74,000 68,000
Long-term debt 164,554
------------ ------------ ------------
Total liabilities 375,176 382,252 520,987
------------ ------------ ------------
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) 48,983 126,265 (21,394)
------------ ------------ ------------
Total stockholders' equity 5,696,691 5,773,973 5,626,314
------------ ------------ ------------
Total Liabilities and
Stockholders' Equity $6,071,867 $6,156,225 $6,147,301
============ ============ ============
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
Page
<PAGE> 10 of 16
PISMO COAST VILLAGE, INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
(UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
1997 1996
Income
------
Resort operations $413,574 $397,017
Retail operations 91,316 86,388
Interest income 3,350 4,109
------------ ------------
Total income 508,240 487,514
------------ ------------
Cost and Expenses
-----------------
Operating expenses 485,134 444,002
Cost of goods sold 51,288 50,875
Depreciation 84,000 75,681
Amortization 332
Interest expense 100 5,463
------------ ------------
620,522 576,353
------------ ------------
Loss Before Provision
for Taxes on Income (112,282) (88,839)
Income Tax Expense (Benefit) (35,000) (25,000)
------------ ------------
Net Loss (77,282) (63,839)
Retained Earnings
-----------------
Beginning of period 126,265 42,445
------------ ------------
End of period $48,983 $(21,394)
============ ============
Net Loss Per
Share $(42.93) $(35.47)
============ ============
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
Page
<PAGE> 11 of 16
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
1997 1996
-------------------- --------------------
Cash Flows From
Operating Activities
Net loss $(77,282) $(63,839)
Adjustments to reconcile
net loss to net cash
used by operating activities:
Depreciation $84,000 $75,681
Amortization 332
Decrease in accounts
receivable (3,019) 858
Decrease in prepaid expenses 10,069 13,938
Increase in current
deferred taxes (37,000) (14,000)
(Increase) Decrease in
inventory 682 (3,040)
Decrease in other assets 1,849 2,054
Increase (Decrease)
in accounts payable
and accrued liabilities 31,847 (6,227)
Increase (Decrease) in
accrued salaries and vacation 22 (125)
Decrease in income
taxes payable (45,000)
Increase in long-term
deferred taxes 2,000 2,000
Decrease in rental deposits (40,945) (41,404)
----------- -----------
Total adjustments 49,505 (14,933)
Net cash used by ---------- ----------
operating activities (27,777) (78,772)
Cash Flows From Investing
Activities
Capital expenditures (46,983) (5,695)
Net cash used in investing ----------- -----------
activities (46,983) (5,695)
Cash Flows From Financing
Activities
Retirement of debt (23,190)
Net cash used in financing -----------
activities (23,190)
----------- ----------
Net decrease in cash and
cash equivalents (74,760) (107,657)
Cash and Cash Equivalents at
Beginning of Period 410,062 517,236
----------- -----------
Cash and Cash Equivalents at
End of Period $335,302 $409,579
=========== ===========
Schedule of Payments of Interest and Taxes
Payments for interest $ 100 $ 5,463
Payments for income tax $ - $ 31,931
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
Page
<PAGE> 12 of 16
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
DECEMBER 31, 1997 AND 1996 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 resort improvements 5 to 40 years
Furniture, fixtures, equipment and
leasehold improvements 5 to 31.5 years
Transportation equipment 5 to 10 years
Loan fee of $9,292 net of accumulated amortization of $4,310 at December 31,
1996, is included with other assets. Amortization is computed using the
straight-line method over seven years. The balance of other assets at
December 31, 1997 and 1996, represents deposits held by others and of $4,770
and $5,611, respectively.
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.
Page
<PAGE> 13 of 16
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF DECEMBER 31, 1997 AND 1996 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.
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 December 31, 1997, September 30, 1997 and December 31, 1996, property and
equipment included the following:
December 31, 1997 September 30, 1997 December 31, 1996
Land $2,680,850 $2,680,850 $2,680,850
Building and
resort improvements 5,564,088 5,564,088 5,523,351
Furniture, fixtures,
equipment and
leasehold improvements 1,265,675 1,214,381 1,208,255
Transportation
equipment 200,400 200,450 148,152
Construction in
progress 11,629 15,890 1,559
---------- ---------- ----------
9,722,642 9,675,659 9,562,167
Less accumulated
depreciation 4,190,630 4,106,630 3,988,360
---------- ---------- ----------
$5,532,012 $5,569,029 $5,573,807
========== ========== ==========
Page
<PAGE> 14 of 16
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF DECEMBER 31, 1997 AND 1996 AND SEPTEMBER 30, 1997
PAGE 37
Note 3 - Long-Term Debt
Long-term debt at December 31, 1997 and September 30, 1997 is zero. Long-term
debt at December 31, 1996, is summarized as follows:
December 31, 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. $ 12,256
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. 188,281
--------
200,537
Less current portion of
long-term debt 35,983
--------
$164,554
========
Total interest cost incurred was $100 and $5,463 for the three months ended
December 31, 1997 and 1996, respectively and $18,099 for the year ended
September 30, 1997.
Note 4 - 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, 1998. The purpose of the loan is to augment operating cash
needs in off season months. There were no outstanding amounts as of December
31, 1997 and 1996 and September 30, 1997.
Note 5 - 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.
Page
<PAGE> 15 of 16
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF DECEMBER 31, 1997 AND 1996 AND SEPTEMBER 30, 1997
PAGE 4
Note 6 - Income Taxes
The provision for income taxes is as follows:
December 31, December 31,
------------ ------------
1997 1996
---- ----
Income tax expense (benefit) $(35,000) $(25,000)
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 7 - 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 $2,208
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 December 31,
-----------------------
1998 $ 28,797
1999 28,797
2000 28,605
2001 36,493
--------
Total $122,692
========
Rent expense under these agreements was $15,505, $15,156 for the three month
period ended December 31, 1997 and 1996, respectively and $27,712 for the year
ended September 30, 1997.
<PAGE> 16 of 16
<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
DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 335,302
<SECURITIES> 0
<RECEIVABLES> 11,486
<ALLOWANCES> 0
<INVENTORY> 68,915
<CURRENT-ASSETS> 535,085
<PP&E> 9,722,642
<DEPRECIATION> 4,190,630
<TOTAL-ASSETS> 6,071,867
<CURRENT-LIABILITIES> 299,176
<BONDS> 0
0
0
<COMMON> 5,647,708
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,071,867
<SALES> 91,316
<TOTAL-REVENUES> 508,240
<CGS> 51,288
<TOTAL-COSTS> 485,134
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 100
<INCOME-PRETAX> (112,282)
<INCOME-TAX> (35,000)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (77,282)
<EPS-PRIMARY> (42.93)
<EPS-DILUTED> (42.93)
</TABLE>
