Pure Cycle Corporation Announces Second Quarter Fiscal 2013 Financial Results
DENVER, April 12, 2013 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (Nasdaq:PCYO) announced the following summary results of operations:
Summary Statements
Our summarized results of operations for the six months ended February 28, 2013 and February 29, 2012 are as follows:
| Six Months Ended (Unaudited) | ||||
| February 28, 2013 | February 29, 2012 | $ Change | % Change | |
| Revenues | $ 872,900 | $ 117,500 | $ 755,400 | 643% |
| Cost of revenues | (197,300) | (86,400) | (110,900) | 128% |
| Gross margin | 675,600 | 31,100 | 644,500 | 771% |
| Operating expenses: | ||||
| General and administrative | (1,141,700) | (1,183,200) | 41,500 | -4% |
| Other | (109,800) | (108,500) | (1,300) | 1% |
| Loss from operations | (575,900) | (1,260,600) | 684,700 | 769% |
| Other (expense) income: | ||||
| Interest on TPF and Convertible Debt | (1,544,800) | (1,713,800) | 169,000 | -10% |
| Other | 128,600 | 249,100 | (128,600) | -52% |
| Net loss | $ (1,992,100) | $ (2,725,300) | $ 725,100 | 707% |
| Weighted average shares outstanding (basic and diluted) | 24,037,596 | 24,037,596 | ||
| Loss per share | $ (0.08) | $ (0.11) | ||
Our summarized financial position as of February 28, 2013 and August 31, 2012 is as follows:
| February 28, 2013 | |||
| (Unaudited) | August 31, 2012 | $ Change | |
| Assets | |||
| Cash, cash equivalents and marketable securities | $ 4,428,000 | $ 2,724,900 | $ 1,703,100 |
| Other current assets | 7,132,500 | 4,936,900 | 2,195,600 |
| Total current assets | 11,560,500 | 7,661,800 | 3,898,700 |
| Investments in water and water systems, net | 88,485,000 | 88,510,400 | (25,400) |
| Land - Sky Ranch | 3,773,200 | 3,778,500 | 3,773,200 |
| Other long-term assets | 6,503,500 | 15,409,900 | (8,906,400) |
| Total assets | $ 110,322,200 | $ 111,582,100 | $ (1,259,900) |
| Liabilities and Shareholders' Equity | |||
| Current liabilities | $ 1,030,600 | $ 913,900 | $ 116,700 |
| Current portion of mortgages payable | 5,232,200 | 5,340,900 | (108,700) |
| Tap participation fee payable to HP A&M | 69,813,900 | 68,269,200 | 1,544,700 |
| Other long-term liabilities | 6,095,700 | 6,940,300 | (844,600) |
| Total liabilities | 82,172,400 | 81,464,300 | 708,100 |
| Total shareholders' equity | 28,149,800 | 30,117,800 | (1,968,000) |
| Total liabilities and shareholders' equity | $ 110,322,200 | $ 111,582,100 | $ (1,259,900) |
Summary of Significant Events and Changes
Revenues increased approximately 640% during the first six months of our fiscal 2013 attributable to (i) increased water sales due to delivery of frack water to the area; and, (ii) we assumed management of our farms and began receiving 100% of the income generated from our agricultural farm operations when, as of August 31, 2012, we terminated a property management agreement with High Plains A&M, LLC ("HP A&M"), after HP A&M defaulted on certain promissory notes due to third parties.
Levels of cash, cash equivalents and marketable securities increased as a result of the foreclosure sale of 1.5 million shares of Pure Cycle common stock owned by HP A&M pledged to secure the payment and performance by HP A&M of the promissory notes described above, which were partially offset by cash payments to acquire certain of the promissory notes defaulted upon by HP A&M.
Industrial Water Sales
In January we entered into a Water Supply Agreement with Select Energy Services ("SES") to provide water for use to drill and frack oil and gas wells in and around our service area. 3 wells were drilled in 2012 and to date in 2013 3 wells have been drilled with an additional well under development near our service area. We provided a portion of the water needed to frack the wells drilled to date to SES, and are supplying a portion of the water to SES for the well currently being developed.
We will host a conference call on Tuesday April 16, 2013 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 Tuesday April 16, 2013 |
| Call in number: | 1-877-307-1379 (no pass codes required) |
| Replay available until: | April 23, 2013 |
| Replay call in number: | 1-800-585-8367 |
| Passcode: | 36678216 |
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
info@purecyclewater.com
Released April 12, 2013