Pure Cycle Corporation Announces Third Fiscal Quarter 2017 Financial Results

DENVER, CO / ACCESSWIRE / July 7, 2017 / Pure Cycle Corporation (NASDAQ: PCYO) today reported financial results for its third fiscal quarter ended May 31, 2017.

“We are pleased to report our results for the three and nine months ended May 31, 2017. During the third quarter, we continued to focus on developing and marketing lots to home builders at Sky Ranch. Subsequent to quarter end, we were also pleased to announce that those efforts resulted in the Company entering into agreements with three national home builders for the sale of approximately 500 lots in the first phase of the Sky Ranch development. In addition, during the quarter, the Company completed construction of its water transmission line to Sky Ranch, which was placed into service in June 2017,” commented Mark Harding, President of Pure Cycle Corporation.

We will file our Form 10-Q on Friday, July 7, 2017, and will host a conference call on Monday, July 10, 2017, at 2:00PM Eastern (12:00PM Mountain) to discuss these results. Call details are below. Additionally, we will post a detailed slide presentation which overviews our operations and presents summary financial results on our website prior to our call which can be accessed at www.purecyclewater.com.

The following table summarizes results of operations for the three and nine months ended May 31, 2017 and 2016:

In 000’s (except per share)

Three Months Ended May 31,

Nine Months Ended May 31,

2017

2016

2017

2016

Revenues

$
134

$
101

$
570

$
303

Cost of revenues

(167
)

(135
)

(481
)

(388
)

Gross margin

(33
)

(34
)

(85
)

Operating expenses:

General and administrative

(519
)

(432
)

(1,411
)

(1,294
)

Other

(79
)

(67
)

(228
)

(183
)

Loss from operations

(631
)

(533
)

(1,550
)

(1,562
)

Other income (expense):

Oil and gas royalties and lease income, net

108

182

626

Other income (expense)

(3
)

(2
)

(8
)

Interest income

199

175

Net (loss) from continuing operations

(543
)

(361
)

(1,177
)

(769
)

Net income (loss) from discontinued operations

(11
)

(61
)

(33
)

(22
)

Net (loss) after taxes

$
(554
)

$
(422
)

$
(1,210
)

$
(791
)

Loss per share

$
(0.02
)

$
(0.05
)

$
(0.03
)

(*) Amount is less than $.01 per share

Revenues increased approximately 33% and 88% during the three and nine months ended May 31, 2017, compared to the three and nine months ended May 31, 2016, respectively. The increase in revenue for the three months ended May 31, 2017, as compared to the same period in the prior year, is primarily attributed to the sale of a commercial water tap at our new service area, Wild Pointe. The increase in revenue for the nine months ended May 31, 2017, as compared to the same period in the prior year, is primarily attributed to the sale of frack water and the Wild Pointe tap fee revenues.

Our summarized financial position as of May 31, 2017 and August 31, 2016 is as follows:

In 000’s

May 31,

2017

August 31,

2016

$ Change

Assets

Cash, cash equivalents and short-term

investments

$
25,981

$
27,873

$
(1,892
)

Other current assets

1,137

1,213

(76
)

Total current assets

27,118

29,086

(1,968
)

Long-term investments

1,430

6,853

(5,423
)

Investments in water and water systems, net

34,343

28,322

6,021

Land and mineral interests

5,619

5,346

273

Other long-term assets

1,357

1,273

Total assets

$
69,867

$
70,880

$
(1,013
)

Liabilities and Shareholders’ Equity

Current liabilities

$
582

$
482

$
100

Other long-term liabilities

1,355

1,400

(45
)

Total liabilities

1,937

1,882

Total shareholders’ equity

67,930

68,998

(1,068
)

Total liabilities and shareholders’ equity

$
69,867

$
70,880

$
(1,013
)

SPECIAL INVESTOR CALL

When: 4:00PM Eastern on Monday, July 10, 2017
Call in number: 866-682-6100 (no pass codes required)
International call-in number: 862-255-5401 (no pass codes required)
Replay available until: July 24, 2017, at 11:59PM ET
Replay call in number: 877-481-4010

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, such as the transformative nature of the sale of our farms, the focus on our water utility assets, and our position to take advantage of new opportunities to expand our water services 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.