Pismo Coast Village Reports Quarterly Results
Pismo Coast Village Inc., owners of Pismo Coast Village RV Resort in Southern California, issued its 10-Q report with the Securities and Exchange Commission on Tuesday (Feb. 14).
According to its SEC filing, income from resort operations for the three-month period ended Dec. 31, 2011, totaled $1.25 million, up 4.6 percent from $1.20 million a year earlier. This increase is primarily due to a $35,757, or 5.2%, increase in year-to-date site revenue as a result of a rate increase. An increase of $8,217, or 3.6%, in storage revenue is due to opening a self-access storage lot and efforts to increase storage following last year’s loss of storage customers due to the economy and personal finances.
Income from retail operations increased by $2,284 for the quarter, 1.0% above the same period in 2010. The General Store showed a $332, or 0.3%, decrease in revenue, while RV Service and Repair increased revenue 2.4%, or $2,616. Management feels the General Store’s decrease in revenue reflects resort guests’ reduced discretionary spending as a symptom of the overall economy.
The company anticipates even-to-slight increase in both income from resort operations and in retail operations as the fiscal year progresses.
The company reported a net loss for the quarter of $12,879, compared to a net loss of $242 in the year-earlier quarter.
The company has been fortunate not to have significant impact due to the current economy. The RVing public actively seeks accommodations on the Central Coast despite volatile fuel prices and personal financial uncertainties. RVing offers an affordable outdoor recreational experience, and the company provides quality facilities and services in a highly popular location.
Fiscal year-to-date site occupancy is down 1.5%, or 393 nights. Based on advanced reservation deposits, occupancy projections are up 3% compared to this time last year. However, prime time reservations are equal to last year. Revenues from ancillary operations such as the General Store, arcade, Laundromat and bike rental, with the exception of RV service, are flat to slightly down year-to-date, and management feels this is directly related to the economy, and that this trend will continue throughout the remainder of the fiscal year.
RV storage continues to be a primary source of revenue for the company; however, demand has slowed due to the economy’s impact on disposable income. RV storage provides numerous benefits to the customer including: no stress of towing, no need to own a tow vehicle, use of RV by multiple family members, and convenience.
Income (loss) before provisions for income taxes for the quarter increased by $23,628 below the same period in 2010. This increase in loss is a result of increased operating expenses and cost of goods.
The company plans capital expenditures of approximately $625,000 in fiscal year 2012 to further enhance the resort facilities and services. These projects include: renovation of 47 campsites, major road paving, clubhouse upgrade including new windows, a new trailer towing truck, an ADA-compliant pool lift and a new financial reporting program. Funding for these projects is expected to be from normal operating cash flows and, if necessary, supplemented with outside financing. These capital expenditures are expected to increase the resort’s value to its shareholders and the general public.
After years with no debt, the board of directors approved expansion of the RV storage program and understood this investment would require substantial financing. Management has made it a high priority to effect timely construction and successful marketing in order to maximize return on this investment.
Click here to read the entire SEC filing.