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Pure Cycle Corporation Announces First Fiscal Quarter 2019 Financial Results

DENVER, CO / ACCESSWIRE / January 7, 2019 / Pure Cycle Corporation (PCYO) today reported financial results for its fiscal quarter ended November 30, 2018.

"We are pleased to report our results for the three months ended November 30, 2018. During the first quarter, we continued to focus on developing lots at Sky Ranch and looking forward to the first model home construction by our contracted builders beginning later this month. In addition to our Land Development activities at Sky Ranch we continued to add capacity to our water and wastewater systems for service to Sky Ranch and our industrial frack water customers," commented Mark Harding, President of Pure Cycle Corporation.

The following table summarizes the results of operations for the three months ended November 30, 2018 and 2017:

In 000's (except per share)

Three Months Ended November 30,
2018 2017 $ Change % Change
Water & wastewater
$ 1,377 $ 934 $ 443 47 %
Water tap fees recognized
255 50 205 100 %
Lot sales
1,381 - 1,381 100 %
Other
60 26 34 131 %
Total revenues
3,073 1,010 2,063 204 %
Cost of revenues
(1,827 ) (495 ) (1,332 ) (269 %)
Gross profit
1,246 515 731 142 %
Operating expenses:
General and administrative
(639 ) (661 ) 22 3 %
Other
(88 ) (54 ) (34 ) (63 %)
Income (loss) from operations
519 (200 ) 719 360 %
Other income (expense):
Oil and gas lease and royalty income, net
46 51 (5 ) (10 %)
Other income
71 54 17 31 %
Other expenses
(2 ) (2 ) - -
Net income (loss) from operations before income taxes
634 (97 ) 731 754 %
Income tax expense (benefit)
- - - -
Net income (loss)
$ 634 $ (97 ) $ 731 754 %
Income (loss) per share
$ 0.03 * $ 0.03 -

(*) Amount is less than $.01

Revenues increased approximately 204% to approximately $3.1 million during our first fiscal quarter of 2018. The increase is primarily attributable to lot sales and water and wastewater tap sales at Sky Ranch and frack water sales.

Our summarized financial position as of November 30, 2018 and August 31, 2018 is as follows:

In 000's

November 30, 2018 August 31, 2018 $ Change
Assets
Cash, cash equivalents and short-term investments
$ 12,299 $ 20,283 $ (7,984 )
Other current assets
12,652 7,635 5,017
Total current assets
24,951 27,918 (2,967 )
Long-term investments
- 190 (190 )
Investments in water and water systems, net
38,910 36,722 2,188
Land and mineral interests
4,775 4,660 115
Other long-term assets
2,510 2,417 93
Total assets
$ 71,146 $ 71,907 $ (761 )
Liabilities and Shareholders' Equity
Current liabilities
$ 483 $ 2,054 $ (1,571 )
Other long-term liabilities
382 400 (18 )
Total liabilities
865 2,454 (1,589 )
Total shareholders' equity
70,281 69,453 828
Total liabilities and shareholders' equity
$ 71,146 $ 71,907 $ (761 )

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, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the timing of the first model home construction by our contracted builders. The words "anticipate," "likely," "may," "should," "could," "will," "believe," "estimate," "expect," "plan," "intend," and similar expressions are intended to identify forward-looking statements. 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 the State of Colorado in the Denver, Colorado metropolitan area. Pure Cycle provides wholesale 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.

SOURCE: Pure Cycle Corporation