UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

For the transition period from __________ to ___________

Commission file number 0-8463

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the preceding 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 [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Subsection 232.405)232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES [X]            NO [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

                  [  ] Large accelerated filer                                        [  ] Accelerated filer

                  [  ] Non-accelerated filer                                          [X]

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       YES [  ]            NO [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

YES [  ]    NO [  ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.            1,775

PART I – FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS

The following financial statements and related information are included in this Form 10-Q, Quarterly Report.

1.         Accountant’s Review Report

2.         Balance Sheets

3.         Statements of Income and Retained Earnings

4.         Statements of Cash Flows

5.         Notes to Financial Statements (Unaudited)

The financial information included in Part I of this Form 10-Q has been reviewed by Brown Armstrong Accountancy Corporation, 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, 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.

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OVERVIEW

The Company continues to promote and depend upon recreational vehicle camping as the primary source of revenue. The rental of campsites to the general public provides income to cover expenses, complete capital improvements, and allow shareholders up to forty-five free nights camping annually. Additional revenues come from RV storage and spotting, RV service and repair, on-site convenience store, and other ancillary activities such as laundromat, arcade, and bike rental.

The Company has been fortunate not to have significant impact due to the currentrecent 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. Total site occupancy is up 0.7%down 2% compared to this time last year primarily due to good weather conditions.rainy weather. Occupancy projections look equal to last year throughout the remainder of the fiscal year. Revenues from ancillary operations such as the store, arcade, laundromat, and bike rental are slightly improved year-to-date, and management feels this is directly related to the economy, and this trend will continue throughout the remainder of the fiscal year.

RV storage continuesand towing continue to be a majorprimary source of revenue for the Company, and has enjoyed growth of 7.3%5.1% for the quarter. At this time, RV Storage is considered at maximum capacity with a substantial waiting list. 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.

Ongoing investment in resort improvements has assured resort guests and shareholders a top quality, up-to-date facility. This quality and pride of ownership was evident when the National Association of RV Parks and Campgrounds Park of the Year was awarded to the resort for 2007-08. In addition, in a national “My Favorite Campground” contest sponsored by Woodalls, Pismo Coast Village was voted as one of the top ten favorite campgrounds for 2011. Also, Pismo Coast Village was one of thirty-four parks nationally to receive an industry rated “A” park from over 30,000 surveys for customer satisfaction in 2015.2016.

The Company’s commitment to quality, value, and enjoyment is underscored by the business’s success due to word of mouth and referrals from guests. In addition, investment for online marketing, ads in the two leading national directories, and trade magazine advertising formulates most of the business-marketing plan.

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 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 June 30, 2016, increased $17,000,March 31, 2017, decreased $30,295, or 1.0%2.1%, abovebelow the same period in 2015. Resort Income for the nine months ended June 30, 2016, increased $166,899,2016. This decrease in income reflects a $53,604, or 3.8%5.5%, above the same period ended June 30, 2015. Thisdecrease in site revenue, and an increase in the quarter ending June 30, 2016, is due primarily to a $23,761,of $20,864, or 7.3%5.1%, increase in RV Storage. Site rentalstorage and spotting activity. This decrease in site revenue was down 2.4% belowreflects substantial impact from rainy weather, and the same period last year due totiming of Spring Break an annual high occupancy period of two weeks, was during the previous quarter. The increase incompared to last year. Resort Operations Income for the nine-monthsix-months ended March 31, 2017, increased $39,983, or 1.4%, from the same period reflects increases in site rentalended March 31, 2016. This increase is due primarily to an increase of $102,802,$44,971, or 3.3%, and $54,480, or 5.6%5.5%, in RV storage activity for the reasons mentioned above. Management feels these increases in revenue reflect ongoing loyalty from return customers that appreciate the Resort’s location and commitment to quality guest services.activity.

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.

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Income from Retail Operations,retail operations for the three-month period ending June 30, 2016,ended March 31, 2017, decreased $13,578,$66,658, or 3.7%22.0%, below the same period in 2015. This decrease reflects a $26,523, or 11.7%, decrease in the2016. The General Store primarily due to Spring Break, an annual high occupancy period being scheduled in the previous quarter. Therevenue was down $29,601, or 20.6%, and RV Service revenue increased by $12,945,decreased $37,409, or 9.2%23.6%, overfrom the previous year. Income from Retail Operations for the nine-monthsix-month period ending June 30, 2016, increasedMarch 31, 2017, decreased by $84,942,$100,794, or 9.6%16.6%, abovebelow the same period ended June 30, 2015. This reflects a $25,956,March 31, 2016. The General Store was down $37,003, or 5.1%13.0%, and RV Service was down $63,790, or 19.6%. The decrease in retail revenue reflects substantial rainy weather, the General Store incometiming of Spring Break, and an $110,898, or 30.1%, increaseloss of technical staff in the RV Service income.program. Management feels this increase in revenue from RV Service operations reflects current emphasis providing quality customercontinues to place importance upon ongoing review of retail product mix, attention to service, and advertising.staff training. The Company anticipates similar activitypositive performance in both income from resort operations and retail operations through the remainder of fiscal year 2016.2017.

Operating expenses for the quarterthree-month period ending March 31, 2017, decreased $36,339, or 2.9%, below the same period ended June 30, 2016, increased $111,181,March 31, 2016. This decrease in expenses primarily reflects the previous year’s tree removal and storm damage. While the current year landscaping expenses are considerably lower, other expense items such as labor, electricity, computer management, and RV storage lot maintenance are above the previous year. For the six-month period ending March 31, 2017, operating expenses decreased by $15,812, or 9.6%0.6%, frombelow the same period in 2015.2016. This increase in expense is primarily a result of labor and labor related expenses, workers’ compensation insurance, electricity, Wi-Fi, and landscaping due to tree removal. Operating expenses fordecrease reflects the nine-month period ended June 30, 2016, increased $361,849, or 10.6%, from the same period in 2015. This increase is primarily due to labor and labor related expenses, workers’ compensation insurance, landscaping due toprevious year’s tree removal credit card processing fees,and storm damage, and increases in labor, payroll taxes, pool maintenance, computer expenses, water and sewer, electricity, and resort repairs and maintenance garbage, Wi-Fi, vehicle expense,in the current year.  Due to severe windstorms in the second quarter of fiscal year 2016, the Company decided to remove many mature trees to minimize risk. The tree removal and electricity.replacement created a significant expense. Management continues to review and scrutinize expenses in order to maximize efficiency and profitability. Due to the age of the Resort, the Company is undertaking maintenance activity that is considered necessary in order to continue providing quality facilities and services. Some of these projects include road repair, utility improvements, landscaping, and building repair.

Cost of Goods Sold for 2016 are within projected levels at 39.2%expenses, as a percentage of retail salesincome for the quarter and 41.3% year-to-date.three-months ended March 31, 2017, are 43.2% compared to 41.2% for the same period in 2016. For the six-months ended March 31, 2017, Cost of Goods Sold expenses were 42.3 % compared to 42.4% the previous year. These levels are well within the guidelines established by management for 2015 was 44.2%the individual category sales of RV supplies and 44.5%, respectively.General Store merchandise.

Interest Expense for the three-month and nine-month periodsthree-months ended June 30, 2016,March 31, 2017, is $25,704 and $77,641, respectively,$18,777, compared to $32,215 and $97,230 the previous year. This decrease in interest expense reflects the current interest rate, and the Company’s decision to make accelerated payments towards the note.

Net Income$25,936 for the quarter ending June 30, 2016, decreased by $191,388, or 46%, compared with the same period ending June 30, 2015.in 2016. For the six-month period ended March 31, 2017, compared to the same period in 2016, interest expense was $38,865 and $51,937, respectively. This quarterly decrease in Net expense reflects financing for the purchase of additional RV storage properties that closed escrow January 11, 2006, April 6, 2006, and March 5, 2008.

Income is primarily due to increased operating expenses, specifically tree removal, and an increase inbefore provision for income tax expense. Net Income for the nine-months ending June 30, 2016,three-month period ended March 31, 2017, decreased by $3,260,$30,984, reflecting decreased income from operations compared to the previous year. For the six-months ended March 31, 2016, income before provisions for income tax increased by $8,544, reflecting decreased interest expense. Revenues during this period are directly attributed to and are consistent with seasonal occupancy of a tourist-oriented business.

Upon review of operational expenses, occupancy, and competition, the Board of Directors may approve adjustments to the nightly site rental rates or 0.06%, compared with the same period ending June 30, 2015. This decrease in Net Income is a result of an increase in operating expenses, specifically tree removal. The last quarter of 2016 is expected to provide adequate resources for continuing businesstowing and provide for planned capital expenditures.

Management has introduced various marketing promotions with reduced rates to increase revenues during low occupancy periods. However, duestorage rates. 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 asat 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. It is anticipated the published rates will continue to market site usage at its highest value and not negatively impact the Company's ability to capture an optimum market share.

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LIQUIDITY

The Company's current cash position as of June 30, 2016,March 31, 2017, is $2,387,331,$3,075,801, which is 11.5% less23.7% more than the same position in 2015.2016. This decreaseincrease is primarily due to the Company’s redemption of Company stockan increase in rental deposits, and timing ofdecrease in capital expenditures. The cash balance increased $151,524$459,131 from fiscal year ended September 30, 2015,2016, due to increasedincrease in rental deposits.deposits and timing of capital expenditures. The present level of cash is being maintained in anticipation of large capital expenditures inexpenditures. Management is planning and implementing long-term renovations to the upcoming fiscal year.Resort property, which includes redesigning sites and utilities to accommodate the needs of modern recreational vehicles and replacing restroom buildings.

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Accounts Payablepayable and accrued liabilities decreased $27,923 to an amount of $181,980 for June 30, 2016, compared to$35,333 below the same period ending 2015. This decrease was primarily due tolast year and decreased $58,868 since the 2016 fiscal year end, which reflects a timing of payment of monthly liabilities.capital projects and accrued property taxes. All undisputed payables have been paid in full according to the Company's policy.

Accounts Receivable for the period ending June 30, 2016, decreased $9,181 below June 30, 2015, and reflects overall effort by staff on collections.

The Company has consistently demonstrated an ability to optimize revenues developed from Resortthe resort and Retail Operationsretail operations during the summer season. During other lessHistorically the Company, because of its seasonal market, has produced 60% to 65% of its revenue producing periods, RV storage spaceduring the third and site rentalsfourth quarters of the fiscal year, with more than 40% being produced during the fourth quarter. The third and fourth quarters' occupancies are paid for in advance and used for Resort improvements and cash reserves. The Company has a revolving lineexpected to be consistent with that of credit for $500,000 to augment operating or capital expenditure cash needs during off-season periods. 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.past years.

CAPITAL RESOURCES AND PLANNED EXPENDITURES

The Company plans capital expenditures of approximately $825,000$900,000 in fiscal year 20162017 to further enhance the resort facilities and services. These projects include building a new RV Service and Repair facility, purchase a new RV storage tow vehicle, purchase a new forklift, road paving,vehicles for maintenance, security, and RV Service, RV storage security, and repair the Overlook ramp. 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.

Capital expenditures are consistent with prior years and operations and are expected to provide adequate resources to support the amounts committed to complete the authorized capital projects during the fiscal year. Second 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. Recognizing the age of the Resort and increased demands resulting from modern recreational vehicles, the Board has directed management to provide plans to update and improve accommodations of the Resort.

The Company redeemed eight shares during the second quarter for $27,000 each. At this time the stock has not been retired.

DISCLOSURE CONCERNING WEBSITE ACCESS TO COMPANY REPORTS

The Company makes available on its website, www.pismocoastvillage.com, access to its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission (SEC).

The public may read and copy any of the materials filed with the Securities and Exchange Commission on official business days during the hours of 10:00 a.m. to 3:00 p.m., at the SEC's Public Reference Room located at 100 F Street, N. E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy statements, and other information that the Company files with the SEC.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not Applicable

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ITEM 4T.     CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the "1934 Act"), as of June 30, 2016,March 31, 2017, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer/General Manager (our principal executive officer) and our Chief Financial Officer (our principal financial officer). Based upon and as of the date of that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as described in Item 8A(T) included with our Annual Report on Form 10-K for the year ended September 30, 2015.2016.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the 1934 Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the 1934 Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

INTERNAL CONTROL OVER FINANCIAL REPORTING

There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated by the SEC under the 1934 Act) during the nine-monthssix-months ended June 30, 2016,March 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

No pending legal proceedings against the Company other than routine litigation incidental to the business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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

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ITEM 6. EXHIBITS

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SIGNATURES

Pursuant to the requirements 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.

(Registrant)

Date:           AugustMAY 12, 2016

2017

Signature:   /s//S/ TERRIS HUGHES

Terris Hughes, President and Chairman of the Board

Date:           AugustMAY 12, 2016

2017

Signature:   /s//S/ WAYNE HARDESTY

Wayne Hardesty, V.P. - Finance/Chief Financial Officer

(principal financial officer and principal accounting officer)

Date:           AugustMAY 12, 2016

2017

Signature:   /s//S/ JAY JAMISON

Jay Jamison, General Manager/Chief Executive Officer

(principal executive officer)

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