SOURCE: Pure Cycle Corporation

April 11, 2014 16:10 ET

Pure Cycle Corporation Announces Second Fiscal Quarter 2014 Financial Results

DENVER, CO--(Marketwired - Apr 11, 2014) - Pure Cycle Corporation (NASDAQ: PCYO) today reported financial results for the six months ended February 28, 2014. Basic and diluted loss per share decreased 38% from a loss of $.08 per share in last year to $.05 per share this year.

"During the second quarter we continued to see our business grow and develop driving long-term shareholder value," commented Mark Harding, President of Pure Cycle Corporation. "We are very excited to have record water sales and deliveries and are continuing to add value to our Company through monetizing our valuable water assets."

The following table summarizes approximate results of operations for the six months ended February 28, 2014 and 2013:

                   
                   
    Six Months Ended February 28,              
    2014     2013     $ Change     % Change  
  Industrial water used for fracking   $ 654,600     $ 85,600     $ 569,000     665 %
  Water & wastewater     81,900       86,600       (4,700 )   -5 %
  Farm operations     526,900       667,900       (141,000 )   -21 %
  Other     51,000       32,800       18,200     55 %
Total Revenues     1,314,400       872,900       441,500     51 %
Cost of revenues     (364,800 )     (197,300 )     (167,500 )   85 %
Gross margin     949,600       675,600       274,000     41 %
Operating expenses:                              
  General and administrative     (1,304,900 )     (1,141,600 )     (163,300 )   14 %
  Other     (22,900 )     (109,800 )     86,900     -79 %
Loss from operations     (378,200 )     (575,800 )     197,600     -34 %
Other (expense) income:                              
  Interest on TPF and Convertible Debt     (1,060,200 )     (1,544,800 )     484,600     -31 %
  Other income     260,400       231,700       28,700     12 %
  Other expenses     (124,500 )     (103,200 )     124,500     -100 %
Net loss   $ (1,302,500 )   $ (1,992,100 )   $ 835,400     -42 %
                               
Loss per share   $ (0.05 )   $ (0.08 )   $ 0.03     38 %
                               
                               

Revenues increased approximately 51% during the our six months ended February 28, 2014 compared to our six months ended February 28, 2013 primarily as a result of increased water sales used for fracking.

Our summarized approximate financial position as of February 28, 2014 and August 31, 2013 is as follows:

               
               
    February 28, 2014   August 31, 2013   $ Change  
Assets                    
  Cash, cash equivalents and marketable securities   $ 289,600   $ 2,448,400   $ (2,158,800 )
  Other current assets     12,929,900     7,451,600     5,478,300  
    Total current assets     13,219,500     9,900,000     3,319,500  
  Investments in water and water systems, net     89,010,600     88,512,200     498,400  
  Land - Sky Ranch     3,778,300     3,768,000     3,778,300  
  Other long-term assets     2,481,300     6,438,100     (3,956,800 )
    Total assets   $ 108,489,700   $ 108,618,300   $ (128,600 )
                     
Liabilities and Shareholders' Equity                    
  Current liabilities   $ 1,374,300   $ 733,400   $ 640,900  
  Current portion of mortgages payable     3,511,700     4,668,900     (1,157,200 )
  Tap participation fee payable to HP A&M     24,632,100     59,807,300     (35,175,200 )
  Other long-term liabilities     6,152,000     5,636,200     515,800  
    Total liabilities     35,670,100     70,845,800     (35,175,700 )
  Total shareholders' equity     72,819,600     37,772,500     35,047,100  
    Total liabilities and shareholders' equity   $ 108,489,700   $ 108,618,300   $ (128,600 )
                     
                     

We will host a conference call on Thursday April 17, 2014 at 4PM Eastern (2PM Mountain) to discuss these results. Call details are below. Additionally, we have posted a detailed slide presentation which overviews the Company and presents summary financial results on our website which can be accessed at www.purecyclewater.com.

CALL DETAILS
When: 4PM Eastern on Thursday April 17, 2014
Call in number: 1-855-241-1929 (no pass codes required)
Replay available until: April 24, 2014
Replay call in number: 1-855-859-2056 
Passcode: 28250018

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Forward-looking statements are all statements, other than statements of historical facts, including in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K and those factors discussed from time to time in our press releases, public statements and documents filed or furnished with the U.S. Securities and Exchange Commission. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. Except as required by law, we disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Information

Pure Cycle owns water assets in several river basins in the State of Colorado as well as certain aquifers in the Denver, Colorado metropolitan area. Pure Cycle provides water and wastewater services, including the design, construction, operation and maintenance of water and wastewater systems, to wholesale customers, which are local governmental entities who provide water and wastewater services to their end-use customers located in the greater Denver metropolitan area. Pure Cycle also owns approximately16,200 acres in Southeastern Colorado that are leased to area farmers.

Additional information including our recent press releases and Annual Reports are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, at 303-292-3456 or at info@purecyclewater.com.

Contact Information