Pure Cycle Corporation Announces Second Fiscal Quarter 2014 Financial Results
DENVER, CO -- (Marketwired) -- 04/11/14 -- 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.
Mark W. Harding
President
303-292-3456
info@purecyclewater.com
Source: Pure Cycle Corporation
Released April 11, 2014