Pismo Coast Village Revenue Up, Net Income Plunges 40%

TL;DR

**Pismo Coast Village's revenue growth is overshadowed by a sharp net income decline, signaling operational inefficiencies despite strong cash reserves.**

AI Summary

Pismo Coast Village Inc. reported a mixed financial performance for the nine months ended June 30, 2025. Total revenue increased by 3.4% to $6,930,000 from $6,700,000 in the prior year, primarily driven by a 3.1% rise in RV camping site rentals to $4,627,000 and a 3.7% increase in RV storage and towing fees to $1,479,000. However, net income significantly decreased by 40.5% to $422,000 from $709,000 in the same period last year. This decline was largely due to a 7.5% increase in total costs and expenses, reaching $6,468,000, and a substantial 30.1% increase in depreciation and amortization to $417,000. Cash and cash equivalents saw a robust increase of $2,508,000, ending the period at $13,294,000, with $11,701,000 reserved for capital improvements. The company also paid off a $210,000 notes payable related to insurance financing by May 2025, reducing its current liabilities.

Why It Matters

For investors, the significant drop in net income despite revenue growth signals potential margin pressures and increased operational costs, which could impact future profitability and dividend capacity. The company's strong cash position, with $11,701,000 reserved for capital improvements, suggests a commitment to long-term asset enhancement, which could benefit customers through improved facilities. However, the seasonality of the business, with Q3 being the busiest, means investors should monitor the upcoming quarter closely. The competitive landscape for RV resorts remains strong, and Pismo Coast Village's ability to maintain its market share will depend on its continued investment and operational efficiency.

Risk Assessment

Risk Level: medium — The company's net income for the nine months ended June 30, 2025, decreased by 40.5% to $422,000 from $709,000, despite a 3.4% revenue increase. This significant drop, coupled with a 30.1% rise in depreciation and amortization to $417,000, indicates potential challenges in maintaining profitability and managing expenses, elevating the risk profile.

Analyst Insight

Investors should scrutinize the reasons behind the substantial net income decline, particularly the increase in operating expenses and depreciation. While revenue is growing, the erosion of profitability warrants caution; consider holding off on new investments until a clear path to improved margins is demonstrated.

Financial Highlights

debt To Equity

0.20

revenue

$6,930,000

operating Margin

6.66%

total Assets

$30,533,000

total Debt

$5,022,000

net Income

$422,000

cash Position

$13,294,000

revenue Growth

+3.4%

Revenue Breakdown

Key Numbers

• $6.93M — Total Revenue (Increased by 3.4% for the nine months ended June 30, 2025)
• $422K — Net Income (Decreased by 40.5% for the nine months ended June 30, 2025)
• $13.29M — Cash and Cash Equivalents (Increased by $2.51M from September 30, 2024, to June 30, 2025)
• $11.70M — Cash Reserved for Capital Improvements (Increased from $10.45M at September 30, 2024)
• 3.1% — RV Camping Site Rentals Growth (Increased to $4,627,000 for the nine months ended June 30, 2025)
• 7.5% — Total Cost and Expenses Growth (Increased to $6,468,000 for the nine months ended June 30, 2025)
• 30.1% — Depreciation and Amortization Increase (Increased to $417,000 for the nine months ended June 30, 2025)
• $210K — Notes Payable (Paid in full by May 2025)

Key Players & Entities

• Pismo Coast Village Inc. (company) — registrant
• City of Pismo Beach (regulator) — recipient of tourism taxes
• County of San Luis Obispo (regulator) — recipient of tourism taxes
• Pacific Premier Bank (company) — bank for operating cash and line of credit
• Financial Accounting Standards Board (regulator) — issuer of accounting standards
• $6,930,000 (dollar_amount) — total revenue for nine months ended June 30, 2025
• $422,000 (dollar_amount) — net income for nine months ended June 30, 2025
• $13,294,000 (dollar_amount) — cash and cash equivalents at June 30, 2025
• $11,701,000 (dollar_amount) — cash reserved for capital improvements at June 30, 2025
• $210,000 (dollar_amount) — notes payable paid in full by May 2025

FAQ

Risk Factors

• Dependence on Seasonal Demand [medium — operational]: The company's revenue is heavily influenced by seasonal demand for RV camping. A prolonged off-season or unexpected weather events could significantly impact revenue and profitability.
• Increased Operating Expenses [medium — financial]: Total costs and expenses increased by 7.5% to $6,468,000 for the nine months ended June 30, 2025. This rise, particularly the 30.1% increase in depreciation and amortization to $417,000, is pressuring net income.
• Competition in RV Park Industry [low — market]: The RV park industry can be competitive. Maintaining occupancy rates and pricing power requires continuous investment in facilities and services to attract and retain customers.
• Significant Cash Reserved for Capital Improvements [medium — financial]: While a strong cash position of $13,294,000 exists, $11,701,000 is reserved for capital improvements. This limits immediate liquidity for other strategic initiatives or unexpected needs.

Industry Context

Pismo Coast Village Inc. operates within the RV park and campground industry, which is experiencing steady growth driven by increased interest in outdoor recreation and travel. The industry is characterized by a mix of independent operators and larger chains, with competition focusing on amenities, location, and pricing. Trends include demand for higher-end facilities and year-round operations.

Regulatory Implications

The company must comply with local zoning laws, environmental regulations, and health and safety standards applicable to hospitality and recreational facilities. Failure to comply could result in fines, operational disruptions, or reputational damage.

What Investors Should Do

1. Monitor expense growth, particularly depreciation and amortization.
2. Analyze the utilization of cash reserves for capital improvements.
3. Evaluate revenue drivers beyond RV site rentals.

Key Dates

• 2025-05-31: Notes payable related to insurance financing paid off — Reduces current liabilities and interest expense, improving short-term financial flexibility.
• 2025-06-30: End of the nine-month reporting period — Marks the period for which the financial results are reported, showing revenue growth but a significant net income decline.
• 2024-09-30: Prior fiscal year end — Provides the comparative balance sheet figures for assets and liabilities.

Glossary

Depreciation and amortization

The systematic allocation of the cost of a tangible asset (depreciation) or an intangible asset (amortization) over its useful life. (A significant increase in D&A to $417,000 for the nine months ended June 30, 2025, contributed to the decline in net income.)

Cash reserved for capital improvements

Funds set aside specifically for future investments in property, plant, and equipment, or significant maintenance. (The company has $11,701,000 reserved for these purposes, indicating a commitment to asset upkeep and expansion.)

Notes payable

A short-term or long-term debt instrument that represents a loan from a lender to a borrower. (The company paid off a $210,000 note payable by May 2025, reducing its liabilities.)

Retained earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (Retained earnings increased to $19,945,000 as of June 30, 2025, reflecting past profitability.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Pismo Coast Village Inc. saw a modest 3.4% increase in total revenue to $6,930,000, driven by RV camping and storage fees. However, net income experienced a sharp 40.5% decline to $422,000. This was primarily due to a 7.5% rise in total costs and expenses, with depreciation and amortization notably increasing by 30.1% to $417,000, impacting profitability margins.

Filing Documents

• form10q.htm (10-Q) — 649KB
• exhibit31-1.htm (EX-31.1) — 7KB
• exhibit31-2.htm (EX-31.2) — 7KB
• exhibit32-1.htm (EX-32.1) — 4KB
• exhibit31-1x001.jpg (GRAPHIC) — 2KB
• exhibit32-1x001.jpg (GRAPHIC) — 2KB
• exhibit32-1x002.jpg (GRAPHIC) — 2KB
• 0001062993-25-014273.txt ( ) — 3723KB
• pcv-20250630.xsd (EX-101.SCH) — 53KB
• pcv-20250630_cal.xml (EX-101.CAL) — 45KB
• pcv-20250630_def.xml (EX-101.DEF) — 47KB
• pcv-20250630_lab.xml (EX-101.LAB) — 588KB
• pcv-20250630_pre.xml (EX-101.PRE) — 163KB
• form10q_htm.xml (XML) — 480KB

- FINANCIAL INFORMATION 4

PART I - FINANCIAL INFORMATION 4

Financial Statements 4

ITEM 1. Financial Statements 4 Balance Sheets as of June 30, 2025 (unaudited) and September 30, 2024 4 Notes to Unaudited Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations 16

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk 24

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures 25

ITEM 4. Controls and Procedures 25

-- OTHER INFORMATION 27

PART II -- OTHER INFORMATION 27

Legal Proceedings 27

ITEM 1. Legal Proceedings 27

Unregistered Sales of Equity Securities and Use of Proceeds 27

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities 27

ITEM 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures 27

ITEM 4. Mine Safety Disclosures 27

Other Information 27

ITEM 5. Other Information 27

Exhibits 28

ITEM 6. Exhibits 28 SIGNATURES 29 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements Pismo Coast Village, Inc. Balance Sheets as of June 30, 2025 (unaudited) and September 30, 2024 June 30, September 30, 2025 2024 (unaudited) Assets Current assets Cash and cash equivalents $ 1,593,000 $ 333,000 Cash reserved for capital improvements and deferred maintenance 11,701,000 10,453,000 Investments - 1,098,000 Accounts receivable, net of allowance for credit losses of $ 27,000 and $ 20,000 , respectively 34,000 45,000 Inventories, net 110,000 81,000 Prepaid income taxes 119,000 396,000 Prepaid expenses 521,000 389,000 Total current assets 14,078,000 12,795,000 Property and equipment, net 16,455,000 16,738,000 Total assets $ 30,533,000 $ 29,533,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 363,000 $ 390,000 Accrued wages and related 92,000 304,000 Customer deposits 3,460,000 2,310,000 Notes payable - 210,000 Current portion of operating lease obligation 42,000 41,000 Current portion of finance lease obligations 104,000 113,000 Total current liabilities 4,061,000 3,368,000 Long-term liabilities Deferred income taxes 468,000 468,000 Building security deposits 25,000 25,000 Operating lease obligation, net of current portion - 34,000 Finance lease obligations, net of current portion 468,000 543,000 Total liabilities 5,022,000 4,438,000 Stockholders' equity Common stock - no par value, 1,800 shares authorized, 1,774 shares issued and outstanding 5,566,000 5,566,000 Retained earnings 19,945,000 19,523,000 Accumulated other comprehensive income - 6,000 Total stockholders' equity 25,511,000 25,095,000 Total liabilities and stockholders' equity $ 30,533,000 $ 29,533,000 The accompanying notes are an integral part of these (unaudited) financial statements. 4 Pismo Coast Village, Inc. S

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following analysis discusses the Company's financial condition as of June 30, 2025, compared with June 30, 2024. The discussion should be read in conjunction with the unaudited financial statements and the related notes to the financial statements included elsewhere in this Form 10-Q. 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 r

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