Pure Cycle Corporation Announces First Quarter Fiscal 2009 Results
THORNTON, CO -- (MARKET WIRE) -- 01/09/09 -- Pure Cycle Corporation (NASDAQ: PCYO) announced the following summary results of operations for the three months ended November 30, 2008 and 2007, respectively:
Three months ended November 30,
2008 2007 Change
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Total revenues $ 63,800 $ 69,700 $ (5,900)
Total cost of revenues (46,500) (41,400) (5,100)
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Gross margin 17,300 28,300 (11,000)
Total operating expenses (603,900) (725,100) 121,200
Other (expense) income
Including imputed interest of
$1.2 million and $1.1 million,
respectively (1,125,500) (1,198,200) 72,700
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Net loss $ (1,712,100) $ (1,895,000) $ 182,900
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Weighted average shares
outstanding (basic and diluted) 20,206,566 20,136,157
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Loss per share $ (0.08) $ (0.09) $ 0.01
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The gross margin was negatively impacted by testing procedures required every three years as well as certain maintenance procedures performed on one of our water tanks in the first quarter of fiscal 2009. Operating expenses decreased as a result of reduced consulting expenses and the elimination of franchise fees to the State of Delaware as a result of the Company's reincorporation in the State of Colorado.
As further explained in our Form 10-Q filed with the SEC today, the results reported above were impacted by the following items that do not require the use of current assets:
Three months ended November 30,
2008 2007
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Imputed expenses or non-cash
expenses:
Imputed Interest on the Tap
Participation Fee $ 1,163,000 $ 1,051,000
Loss on extinguishment of
contingent obligations - 273,700
Depreciation and depletion 94,700 95,500
Stock based compensation
expense 79,200 81,300
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Total imputed and non-cash
expenses $ 1,336,900 $ 1,501,500
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Because these items do not require the use of current assets, management does not include these items in its analysis of the financial results or how we allocate our resources. Because of this, we deemed it meaningful to provide a non-GAAP disclosure of the impact of these significant items on our financial results. Adjusting our US GAAP net loss to exclude the expenses described above, our net loss for the periods presented would have been:
Three months ended November 30,
2008 2007 Change
------------ ------------ ------------
Net loss as reported $ (1,712,100) $ (1,895,000) $ 182,900
Imputed and non-cash items
described above 1,336,900 1,501,500 $ (164,600)
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As adjusted net loss $ (375,200) $ (393,500) $ 18,300
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Financial Position Data
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November 30, August 31,
2008 2008
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Current assets $ 5,087,400 $ 5,502,200
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Total assets $109,419,000 $109,899,400
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Current liabilities $ 167,600 $ 163,900
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Total liabilities $ 57,884,100 $ 56,731,600
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Total shareholders' equity $ 51,534,900 $ 53,167,800
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We will host a conference call to discuss the results at our Annual Shareholders' Meeting on Tuesday, January 13, 2009 at 2 pm Mountain. The call will be hosted by our President, Mark W. Harding. Call details are presented below.
Additional information regarding the Annual Shareholders' Meeting is included in our Proxy Statement filed with the SEC on December 12, 2008.
CALL INFORMATION
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What: First quarter Fiscal 2009 Financial Release and Annual
Shareholders' Meeting
When: January 13, 2009 at 2:00 pm Mountain
To listen: Click on the link posted on the Company's website:
www.purecyclewater.com
Log-on 5 minutes early in case downloads are required.
Call in Number: To participate in the call, dial toll free:
(866) 713-8567
Passcode: 38331049
REPLAY INFORMATION
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The call will be available for replay until 9:59 pm on January 20, 2009:
Toll free: (888) 286-8010
Passcode: 61978488
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 to customers located in the Denver metropolitan area including the design, construction, operation and maintenance of water and wastewater systems.
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: Mark W. Harding President 303-292-3456 Email Contact
Released January 9, 2009