UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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,site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Subsection 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, or an emerging growth company.

                  [  ] Large accelerated filer                                        [  ] Accelerated filer

                  [X] Non-accelerated filer                                          [X] Smaller reporting company

                                                                                                   [  ] Emerging growth company

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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, COVID-19 or similar pandemic conditions, 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 economic volatility. 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. Based on advanced reservation deposits, occupancy projections are positive compared to this time last year. Industry projections anticipate positive business trends and reasonable fuel prices as the season approaches.

On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID-19) a pandemic. In response, the County of San Luis Obispo followed by the Governor of California issued a Shelter at Home order effective March 19, 2020, requiring certain non-essential businesses to temporarily close to the public. The Company began canceling reservations on March 19, 2020 and closed the park on March 23.23, 2020.  The resort remained closed until May 22, 2020 at which time the County of San Luis Obispo permitted occupancy to fifty percent.  On June 12, 2020, the County of San Luis Obispo allowed lodging businesses to operate at full capacity with restrictions on amenities.  The Company enjoyed four consecutive months of record site occupancy until the State mandated a Stay-at-Home order on December 3, 2020.  This order limited non-essential travel, and caused significant cancelations for December 2020.2020 and January 2021.  February and March of 2021 resumed with record occupancy, and projections are expected to meet or exceed 2020 occupancy for the remainder of fiscal year 2021.

RV storage and towing continue to be a primary source of revenue for the Company.Company and is even year-to-date compared to last year. 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. Revenues for RV storage and towing are down 3.8% compared to the previous year due the impact of the COVID-19 pandemic.

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 Woodall’s, Pismo Coast Village was voted as one of the top ten favorite national campgrounds for 2011. The resort continues to maintain high standards and again has been recognized with quality ratings by Good Sam in 2020.2011

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 directory,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 restaurant, 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 Operationsresort operations for the three-month period ended DecemberMarch 31, 2020,2021, increased $207,368,$340,980, or 13.3%24.1%, above the same period in 2019.2020. This increase in income reflects a $335,328, or 36.0%, increase in site revenue, and an increase of $13,080, or 3.1%, in RV storage and spotting activity. This increase in site revenue reflects paid site occupancy due to the COVID-19 crisis.  In March of 2020 there was a negative impact on paid occupancy, while the quarter ending March 31, 2021 reflects a 28% increase in paid occupancy over 2020.  Resort Operations Income for the six-months ended March 31, 2021, increased $548,348, or 18.5%, from the same period ended March 31, 2020. This increase is due primarily to an increase of $571,585, or 28.8%, in site rental revenue, which was primarily due to COVID-19 ramifications where the public sought outdoor recreation as a $236,257, or 22.4%, increase in year-to-date site rental revenue. Site occupancy for October and November set new records due to the demand for camping during the pandemic. Paid site occupancy for the quarter increased 12.3% over the same quarter the previous year. RV storage and towing activity decreased by $17,717, or 3.8% as some storage customers removed their RV’s to use elsewhere during the pandemic. Vending revenue, which includes income from the arcade, restaurant, and laundromat, decreased $4,177, or 17.3%.  This decrease in Vending revenue was due to closures or operational limitations due to COVID-19 regulations.                                                             safe environment.

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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.

Income from retail operations increased by $49,123 for the three-month period ended DecemberMarch 31, 2020, 18.8%2021, increased $39,813, or 16.9%, above the same period in 2019.2020. The General Store incomerevenue was up $39,301, or 36.0%, and RV Service revenue increased $36,185,$511, or 28.7%0.4%, from the previous year. Due to the COVID-19 the General Store was closed March 23, 2020 until June 12, 2020, while RV Service remained open during the crisis.  Retail revenue, and specifically General Store revenue increased 36.0%, above the same period ended March 31, 2020 due to increased occupancy.  Income from Retail Operations for the six-month period ending March 31, 2021, increased by $88,936, or 17.9%, over the previous year. The General Store was up $75,485, or 32.1%, and RV Service was up $13,450, or 5.1%. The increase in the General Store revenue primarily reflects the increased resort occupancy due to COVID-19. The increase in the RV Service program revenue reflects effort to target new business and Repair income increased revenue by $12,938, or 9.6%, comparednew inventory. Management continues to the previous year. These increases are consistent with the record occupancy experienced during this time.

place importance upon ongoing review of retail product mix, pricing, attention to service, and staff training. The Company anticipates slight to moderate increasespositive performance in both income from resort operations, and in retail operations as the fiscal year progresses, as long asresort reopens for business following restrictions due to the COVID-19 restrictions allow the resort to operate.pandemic.

Operating expenses for the three-month period ending DecemberMarch 31, 2020,2021, decreased $41,226,$79,028, or 2.9%6.1%, below the same period ended DecemberMarch 31, 2019.2020. This reflects a decrease in expense primarily reflects labor, worker’s compensation, travel,repairs and maintenance, and legal interest,fees.  For the six-month period ending March 31, 2021, operating expenses decreased by $120,254, or 4.4%, below the same period in 2020. This decrease reflects payroll taxes, employee insurance benefits, worker’s compensation, employee travel/training, legal fees, WiFi expense, repairs and maintenance, vehicle expense, and advertising. Other operating costs remain consistent withrecreation expense. Management continues to review and scrutinize expenses in order to maximize efficiency and profitability. Due to the prior yearage of the Resort, the Company is undertaking maintenance activity that is considered necessary in order to continue providing quality facilities and are considered well managed to create an effective operation.services. Some of these projects include road repair, utility improvements, landscaping, and building repair.

Cost of goods soldGoods Sold expenses, as a percentage of retail income for the three-month periodthree-months ended DecemberMarch 31, 2020,2021, are 47.3%,46.5% compared to 47.1%44.6% for the same period in 2019, which is2020. For the six-months ended March 31, 2021, Cost of Goods Sold expenses were 46.9 % compared to 45.9% the previous year. These levels 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-months ended March 31, 2021, is $3,985, compared to $4,801 for the same period in 2020. For the six-month period ended March 31, 2021, compared to the same period in 2020, interest expense was $8,076 and $10,940, respectively. This expense primarily reflects financing for trucks used in the company’s RV storage and towing operation.

Income before provision for income tax for the three-month period ended DecemberMarch 31, 2020, was $4,091,2021, increased by $440,631, reflecting increased total income compared to $6,139 for the same period ending 2019.

Incomeprevious year and decreased operating expenses. For the six-months ended March 31, 2021, income before provisions for income taxes for the three-month period ended December 31, 2020tax increased by $279,298 above the same$719,929, reflecting increased total income and decreased operating expenses. Revenues during this period in 2019. This increase in income before provision for income taxes is a resultare directly attributed to and are consistent with seasonal occupancy of a 14.1% increase in total income, decreased operating expenses, and interest expense.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 towing and storage 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.

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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.

LIQUIDITY

The Company's current cash position, as of DecemberMarch 31, 2020,2021, is $6,739,572,$8,156,893, which is 35.2%58.9% more than the same position in 2019.2020. This increase is primarily due to an increase in income, rental deposits, and decrease in capital expenditures. The cash balance increased $287,462$1,704,783 from the fiscal year ended September 30, 2020, due to increased revenue.increase in income, rental deposits, reduction of expenses, and timing of capital expenditures. The Company haspresent level of cash is being maintained cash balances in anticipation forof large capital expenditures necessaryexpenditures. Management is planning and implementing long-term renovations to upgrade the resort.Resort property, which includes redesigning sites and utilities to accommodate the needs of modern recreational vehicles and replacing restroom buildings. The Company has also maintained a line of credit of $500,000 to insureensure funds will be available, if required.

Accounts payable and accrued liabilities decreased $34,809$2,885 below the same period last year and increased $38,652decreased $314 since the 2020 fiscal year end, which reflects a timing of capital projects and accrued vacation.property taxes. All undisputed payables have been paid in full according to the Company's policy.

Working capital increased to $4,636,932$5,041,669 at the end of the firstsecond quarter of fiscal year 2021, compared with $4,288,675 at the end of fiscal year 2020, and $3,118,195 at quarter end March 31, 2020.

The Company has consistently demonstrated an ability to optimize revenues developed from the resort and retail operations during the summer season. Historically the Company, because of its seasonal market, has produced 60% to 65% of its revenue during the third and fourth quarters of the fiscal year, with more than 40% being produced during the fourth quarter. The third and fourth quarters' occupancies are expected to be consistent with that of past years, with the possible exception created by COVID-19.

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CAPITAL RESOURCES AND PLANNED EXPENDITURES

The Company plans capital expenditures up to $200,000 in fiscal year 2021 to further enhance the Resort facilities and services. This would include the purchase of a tractorequipment with sweeper attachments, surveillance cameras for the resort, garbage compactor container, service truck for RV service, and a lift for the RV service facility.  Funding for these projects is expected to come 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.

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. SecondThird and 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.facilities.

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 electronically with the SEC.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURESDISCLOSURE ABOUT MARKET RISK

Not Applicable.Applicable

ITEM 4.4T.     CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the “1934 Act”"1934 Act"), as of DecemberMarch 31, 2020,2021, 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, 2020.

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’sSEC'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.

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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 three-monthssix-months ended DecemberMarch 31, 20202021 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

The annual meeting of the shareholders of Pismo Coast Village, Inc. was held as a virtual electronic meeting using Zoom video conferencing on January 16, 2021, at 9:00 a.m. with no physical in-person meeting except the Board of Directors at Pismo Coast Village, Inc., 165 S. DolliverStreet, Pismo Beach, California 93449. At that meeting, the following Directors were elected to serve until the annual meeting in January 2022, or until successors are elected and have qualified. Following each elected Director's name is the total number of votes cast for that Director:

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 matters is set forth below:

Proposal to approve the selection of Brown Armstrong Accountancy Corporation to serve as independent certified public accountants for the Company for Fiscal Year 2020 - 2021:

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ITEM 5. OTHER INFORMATION

The annual meeting of the shareholders of Pismo Coast Village, Inc. was held as a virtual electronic meeting using Zoom video conferencing on January 16, 2021, at 9:00 a.m. with no physical in-person meeting except the Board of Directors at Pismo Coast Village, Inc., 165 S. DolliverStreet, Pismo Beach, California 93449. Following that meeting, the newly elected Board held a reorganization meeting at which the following officers were elected to serve until the next Annual Shareholders’ Meeting: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:          February 10,May 14, 2021

Signature:   /s/ GARRY NELSON

Garry Nelson, President and Chairman of the Board

Date:          February 10,May 14, 2021

Signature:   /s/ JERRY ROBERTS

Jerry Roberts, V.P. - Finance/Chief Financial Officer

(principal financial officer and principal accounting officer)

Date:          February 10,May 14, 2021

Signature:   /s/ JAY JAMISON

Jay Jamison, General Manager/Chief Executive Officer

(principal executive officer)

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors

and Stockholders of Pismo Coast Village, Inc.

165 South Dolliver Street

Pismo Beach, California

Results of Review of Interim Financial Information

We have reviewed the balance sheets of Pismo Coast Village, Inc., (the Company) as of DecemberMarch 31, 20202021 and 2019,2020, and the related statements of operations, and statement of changes in stockholders’ equity for the three-monthsix-month periods ended DecemberMarch 31, 20202021 and 2019,2020, and statements of cash flows for the three-monthsix-month periods then ended, and the related notes (collectively referred to as the interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the balance sheet of the Company as of September 30, 2020, and the related statements of incomeoperations, and comprehensive income,statement of changes in stockholders’ equity, and cash flows for the year then;then ended; and in our report dated November 18, 2020, we expressed an unqualifiedunmodified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of September 30, 2020, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the PCAOB, the objective of which is the expression of an opinion regarding the interim financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

BROWN ARMSTRONG

                                                            ACCOUNTANCY CORPORATION

Bakersfield, California

Bakersfield, CaliforniaMay 14, 2021

February 10, 2021
 

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