Pure Cycle Corporation Announces Fiscal Year Ended 2013 Financial Results
November 25 2013 - 6:02PM
Marketwired
Pure Cycle Corporation Announces Fiscal Year Ended 2013 Financial
Results
DENVER, CO--(Marketwired - Nov 25, 2013) - Pure Cycle
Corporation (NASDAQ: PCYO) today reported financial results for its
fiscal year ended August 31, 2013. Basic and diluted loss per share
decreased 76% from a loss of $.72 per share in 2012 to $.17 per
share in 2013. Impairments during 2012 accounted for $.50 of the
2012 loss per share.
"We're extremely pleased with our results for Fiscal 2013,
delivering record revenue, decreased losses, and the addition of a
new operating segment," commented Mark Harding, President of Pure
Cycle Corporation. "This was an exciting year for Pure Cycle, both
operationally and financially, and we are confident that as we
continue to expand water sales and our farming operations we will
be well positioned to continue our strong performance and drive
long-term shareholder value."
The following table summarizes results of operations for the
fiscal years ended August 31, 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended August 31, |
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
$ Change |
|
|
% Change |
|
Revenues |
|
$ |
1,857,500 |
|
|
$ |
284,400 |
|
|
$ |
1,573,100 |
|
|
553 |
% |
Cost of revenues |
|
|
(393,300 |
) |
|
|
(188,000 |
) |
|
|
(205,300 |
) |
|
109 |
% |
Gross margin |
|
|
1,464,200 |
|
|
|
96,400 |
|
|
|
1,367,800 |
|
|
1419 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
(2,333,200 |
) |
|
|
(2,374,100 |
) |
|
|
40,900 |
|
|
-2 |
% |
|
Other |
|
|
(220,800 |
) |
|
|
(12,222,400 |
) |
|
|
12,001,600 |
|
|
-98 |
% |
Loss from operations |
|
|
(1,089,800 |
) |
|
|
(14,500,100 |
) |
|
|
13,410,300 |
|
|
-92 |
% |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on TPF and Convertible Debt |
|
|
(3,275,400 |
) |
|
|
(3,470,500 |
) |
|
|
195,100 |
|
|
-6 |
% |
|
Other
income |
|
|
460,200 |
|
|
|
551,900 |
|
|
|
(91,700 |
) |
|
-17 |
% |
|
Other
expenses |
|
|
(245,500 |
) |
|
|
- |
|
|
|
245,500 |
|
|
-100 |
% |
Net loss |
|
$ |
(4,150,500 |
) |
|
$ |
(17,418,700 |
) |
|
$ |
13,759,200 |
|
|
-79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
$ |
(0.17 |
) |
|
$ |
(0.72 |
) |
|
$ |
0.55 |
|
|
76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues increased approximately 553% during the 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.
During 2013 we entered into a Water Supply Agreement with Select
Energy Services to provide water for use to drill and frack oil and
gas wells in and around our service area. Three wells were drilled
in 2012 and to date in 2013 14 wells have been drilled with an
additional well under development near our service area. We
provided water needed to frack the wells drilled and are supplying
a portion of the water for the well currently being developed.
Our summarized financial position as of August 31, 2013 and 2012
is as follows:
|
|
|
|
|
|
|
|
August 31, |
|
|
|
|
|
2013 |
|
2012 |
|
$ Change |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
|
$ |
2,448,400 |
|
$ |
1,623,500 |
|
$ |
824,900 |
|
|
Other current assets |
|
|
7,451,600 |
|
|
6,038,300 |
|
|
1,413,300 |
|
|
|
Total
current assets |
|
|
9,900,000 |
|
|
7,661,800 |
|
|
2,238,200 |
|
|
Investments in water and water systems, net |
|
|
88,512,200 |
|
|
88,510,400 |
|
|
1,800 |
|
|
Land - Sky Ranch |
|
|
3,768,000 |
|
|
3,778,500 |
|
|
3,768,000 |
|
|
Other long-term assets |
|
|
6,438,100 |
|
|
11,631,400 |
|
|
(5,193,300 |
) |
|
|
Total
assets |
|
$ |
108,618,300 |
|
$ |
111,582,100 |
|
$ |
(2,963,800 |
) |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
733,400 |
|
$ |
913,900 |
|
$ |
(180,500 |
) |
|
Current portion of mortgages payable |
|
|
4,668,900 |
|
|
5,340,900 |
|
|
(672,000 |
) |
|
Tap participation fee payable to HP A&M |
|
|
59,807,300 |
|
|
68,269,200 |
|
|
(8,461,900 |
) |
|
Other long-term liabilities |
|
|
5,636,200 |
|
|
6,940,300 |
|
|
(1,304,100 |
) |
|
|
Total
liabilities |
|
|
70,845,800 |
|
|
81,464,300 |
|
|
(10,618,500 |
) |
|
Total shareholders' equity |
|
|
37,772,500 |
|
|
30,117,800 |
|
|
7,654,700 |
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
108,618,300 |
|
$ |
111,582,100 |
|
$ |
(2,963,800 |
) |
|
|
|
|
|
|
|
|
|
|
|
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.
We will host a conference call on Tuesday, December 3, 2013 at
3PM Eastern (1PM 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: 3PM Eastern on Tuesday, December 3, 2013 Call
in number: 1-877-307-1379 (no pass codes required) Replay available
until: December 10, 2013 Replay call in number: 1-800-585-8367
Passcode: 16653270
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. 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 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. Pure Cycle also owns approximately
16,700 acres in Southeastern Colorado that are leased to area
farmers.
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.
Pure Cycle Corporation Mark W. Harding President 303-292-3456
info@purecyclewater.com
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