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Pure Cycle Corporation Announces First Fiscal Quarter 2017 Financial Results

Wednesday, 04 January 2017 01:29 PM

Pure Cycle Corporation

Topic:
Earnings

DENVER, CO / ACCESSWIRE / January 4, 2017 / Pure Cycle Corporation (NASDAQ Capital Market: PCYO) today reported financial results for its fiscal quarter ended November 30, 2016.

"We are pleased to report our results for the three months ended November 30, 2016. During the first quarter, we continue to focus on developing and marketing lots to home builders at Sky Ranch looking to bring the project on line later this summer. In addition to our organic growth at Sky Ranch, we completed our first water system acquisition in neighboring Elbert County and look forward to operating the Wild Pointe Water System for its residents and customers," commented Mark Harding, President of Pure Cycle Corporation.

The following table summarizes results of operations for the three months ended November 30, 2016 and 2015:

Three Months Ended November 30,
2016
2015
$ Change
% Change
Water & wastewater
$ 73,100 $ 67,100 $ 6,000 9 %
Industrial water used for fracking
80,300 - 80,300 100 %
Other
45,700 58,900 (13,200 ) -22 %
Total Revenues
199,100 126,000 73,100 58 %
Cost of revenues
(145,500 ) (132,000 ) (13,500 ) 10 %
Gross margin
53,600 (6,000 ) 59,600 -993 %
Operating expenses:
General and administrative
(443,200 ) (422,400 ) (20,800 ) 5 %
Other
(74,000 ) (52,900 ) (21,100 ) 40 %
Loss from operations
(463,600 ) (481,300 ) 17,700 -4 %
Other (expense) income:
Oil and gas lease and royalty income, net
73,300 283,500 (210,200 ) -74 %
Other income
73,600 63,800 9,800 15 %
Other expenses
(2,600 ) (2,600 ) - -100 %
Net loss from continuing operations
(319,300 ) (136,600 ) 182,700 -134 %
Net income (loss) from discontinued operations
(18,700 ) 39,100
Net income (loss) after taxes
$ (338,000 ) $ (97,500 ) $ (182,700 ) 187 %
Income (loss) per share
$ (0.01 ) * *
(*) Amount is less than $.01

Revenues increased approximately 58% to approximately $199,100 during our first fiscal quarter of 2017. The increase is primarily attributable to frack water sales.

Our summarized financial position as of November 30, 2016 and August 31, 2016 is as follows:

Assets
Cash, cash equivalents and short-term investments
$ 27,339,700 $ 27,873,800 $ (534,100 )
Other current assets
1,225,900 1,212,100 13,800
Total current assets
28,565,600 29,085,900 (520,300 )
Long-term investments
6,846,600 6,853,300 (6,700 )
Investments in water and water systems, net
28,445,900 28,322,000 123,900
Land and mineral interests
5,398,700 5,345,800 52,900
Other long-term assets
1,275,900 1,272,600 3,300
Total assets
$ 70,532,700 $ 70,879,600 $ (346,900 )
Liabilities and Shareholders' Equity
Current liabilities
$ 468,100 $ 482,200 $ (14,100 )
Other long-term liabilities
1,384,000 1,399,500 (15,500 )
Total liabilities
1,852,100 1,881,700 (29,600 )
Total shareholders' equity
68,680,600 68,997,900 (317,300 )
Total liabilities and shareholders' equity
$ 70,532,700 $ 70,879,600 $ (346,900 )

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 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.

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 [email protected].

SOURCE: Pure Cycle Corporation

Topic:
Earnings
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