Pure Cycle Corporation Announces Second Quarter Fiscal 2009 Results

• Press Release
• Source: Pure Cycle Corporation
• On 4:10 pm EDT, Thursday April 9, 2009

THORNTON, Colo., April 9, 2009 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (NasdaqCM:PCYO - News) announced the following summary results of operations:

                                       Six Months Ended              
                          Feb. 28, 2009  Feb. 29, 2008      Change   
                          -------------  -------------  -------------
 Total revenues           $     117,900  $     126,500  $      (8,600)
 Total cost of revenues         (83,500)       (82,200)        (1,300)
                          -------------  -------------  -------------
 Gross margin                    34,400         44,300         (9,900)
 Total operating expenses    (1,238,000)    (1,369,100)       131,100
 Other (expense) income                                              
   Interest imputed on                                               
    the Tap Participation                                            
    Fee liability            (2,004,000)    (2,141,000)       137,000
   Other                         94,300        (78,900)       173,200
                          -------------  -------------  -------------
 Net loss                 $  (3,113,300) $  (3,544,700) $     431,400
                          =============  =============  =============
 Weighted average shares                                             
  outstanding                                                        
  (basic and diluted)        20,206,566     20,170,588             
 Loss per share           $       (0.15) $       (0.18) $        0.03
                          =============  =============  =============

Related Quotes

Symbol	Price	Change
PCYO	2.27	-0.02

{"s" : "pcyo","k" : "c10,l10,p20,t10","o" : "","j" : ""}

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 our reincorporation into the State of Colorado. We reduced the number of consultants because the developer of the Lowry Range terminated their agreement with the State of Colorado Board of Land Commissioners.

The results reported above include significant imputed and non-cash expense items which do not require the use of current assets but are expensed for reporting purposes. Because none of these items require the use of current assets, management thought it important to note these items.

                                                                     
                                            Six months ended         
                                     Feb. 28, 2009      Feb. 29, 2008
                                     -------------      -------------
 Imputed expenses or non-cash                                        
  expenses:                                                          
   Imputed Interest on the Tap                                       
    Participation Fee                  $ 2,004,000        $ 2,141,000
   Loss on extinguishment of                                         
    contingent obligations                      --            273,700
   Depreciation and depletion              189,800            190,800
   Stock-based compensation expense        153,600            170,400
                                     -------------      -------------
 Total imputed and non-cash expenses   $ 2,347,400        $ 2,775,900
                                     =============      =============

As will be reported in our financial statements contained in the Form 10-Q filed with the SEC today our financial position as of February 28, 2009 is as follows:

                         Financial Position Data
 --------------------------------------------------------------------
                                  February 28, 2009   August 31, 2008
                                  -----------------   ---------------
 Current assets                       $   4,654,500     $   5,502,200
                                  -----------------   ---------------
 Total assets                         $ 108,916,700     $ 109,899,400
                                  -----------------   ---------------
 Current liabilities                  $     202,900     $     163,900
                                  -----------------   ---------------
 Total liabilities                    $  58,708,700     $  56,731,600
                                  -----------------   ---------------
 Total stockholders' equity           $  50,208,000     $  53,167,800
                                  -----------------   ---------------

At February 28, 2009, our total assets include approximately $103.2 million of capitalized costs related to our water rights and water systems and our total liabilities include approximately $55.8 million related to the Tap Participation Fee liability which is a result of our acquisition of Arkansas River water rights from High Plains A&M, LLC in 2006. Both are further detailed in our Form 10-Q.

We will host a conference call to discuss the results on Tuesday, April 14, 2009 at 2 pm Mountain (4 pm Eastern). The call will be hosted by our President, Mark W. Harding. Call details are presented below.

 CALL INFORMATION
 --------------------------------------------------------------------
 What:           Second quarter Fiscal 2009 Financial Release
 When:           April 14, 2009 at 2:00 pm Mountain (4:00 pm Eastern)
 To listen:      Click on the link posted on the Company's website:
                 http://www.purecyclewater.com
                 Log-on 5 minutes early in case downloads
                 are required.
 Call in Number: To participate in the call, dial toll free:
                 (800) 510-0178
 Passcode:       14165677

 REPLAY INFORMATION
 --------------------------------------------------------------------
 The call will be available for replay until 9:59 pm Mountain on
 April 21, 2009:
 Toll free:      (888) 286-8010
 Passcode:       47294130

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.

The Pure Cycle Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6070

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

          Pure Cycle Corporation
          Mark W. Harding, President
          303-292-3456
          info@purecyclewater.com