PURE CYCLE CORPORATION PURE CYCLE
a water and wastewater services company
Financial Results for the Quarter Ending November 31, 2019
P R E S E N T E D B Y M A R K H A R D I N G
"SAFE HARBOR" STATEMENT UNDER THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
PURE CYCLE
a water and wastewater services company
Statements that are not historical facts contained or incorporated by reference in this presentation are "forward-looking statements" ("FLS") within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 as amended. FLS involve risks and uncertainties that could cause actual results to differ from projected results.
The words "anticipate," "believe," "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify FLS. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We are not able to predict all factors that may affect future results. We cannot assure you that any of our expectations will be realized. Our actual results could differ materially from those discussed in or implied by these forward-looking statements.
Factors that may cause actual results to differ materially from those contemplated by such FLS include, without limitation: the risk factors discussed in our most recent Annual Report on Form 10-K; the timing of new home construction and other development in the areas where we may sell our water, which in turn may be impacted by credit availability; population growth; employment rates; general economic conditions; the market price of water; changes in customer consumption patterns; changes in applicable statutory and regulatory requirements; changes in governmental policies and procedures; uncertainties in the estimation of water available under decrees; uncertainties in the estimation of costs of delivery of water and treatment of wastewater; uncertainties in the estimation of the service life of our systems; uncertainties in the estimation of costs of construction projects; the strength and financial resources of our competitors; our ability to find and retain skilled personnel; climatic and weather conditions, including flood, droughts and freezing conditions; labor relations; availability and cost of labor, material and equipment; delays in anticipated permit and construction dates; environmental risks and regulations; our ability to raise capital; our ability to negotiate contracts with new customers; and uncertainties in water court rulings; and other factors discussed from time to time in our press releases, public statements and documents filed or furnished with the SEC.
All FLS are expressly qualified by these cautionary statements. | 02 |
27,000 Acre Feet of water
930 Acre Zoned
Master Plan
Community
PURE CYCLE
a water and wastewater services company
KEY ASSETS
Industrial | O&G | |
Water Sales | Royalties | |
ALL OF THESE KEY ASSETS CONTRIBUTE TO YOUR SHAREHOLDER VALUE | 03 |
WATER UTILITY ASSETS
PURE CYCLE
a water and wastewater services company
27,000 acre feet of water
11 groundwater wells
3 alluvial wells
150 acre feet surface storage
2 million gallons finished water storage
2 wastewater Reclamation Facilities
20 miles of transmission lines
15 miles of distribution lines
10 miles of collection lines
3 pump stations
04
KEY FACTORS
PURE CYCLE
LAND
a water and wastewater services company
MASTER PLANNED COMMUNITY - SKY RANCH
931 Acres Located on the I-70 Corridor
LOCATION
16 miles East of Downtown Denver
4 miles South of DIA
HOME
Zoned for 3,400 homes and 2.3 | |
million sq. feet of commercial and | |
retail property (total of 5,000 SFE's | |
combined) | 05 |
PHASE 1 -
"NEIGHBORHOOD B" 506 LOTS
PURE CYCLE
a water and wastewater services company
INFRASTRUCTURE
LOT DELIVERY
First Phase for Development (151 Acres) Sold all 506 lots before breaking ground
Delivered 372 Finished lots
All Wet Utilities, drainage, electric, and 90% roadway for remaining 134 lots
40 Residents in Community
Issued 152 Building permits
Sold 175 Water and Wastewater Taps
100 homes under construction
Expect to deliver remaining 134 Lots September 2020
Water Reclamation Facility complete
06
SKY RANCH UPDATE
PURE CYCLE
a water and wastewater services company
HOME SALES
Approximately 40 Residents Averaging 6 homes/builder/mo.
AVERAGE LOT SALES
Avg. home builders $71,750 (2.5%) Reimbursables $30,000 Total $101,750
07
PURE CYCLE
a water and wastewater services company
PHASE 2-
DevelopmentNEIGHBORHOODto accommodate:A•160 acres of commercial, retail and light industrial •Multifamily residential •Attached single family •Detached single family
May include between 2,500 - 3,000 SFE's
Grading Fall 2020, lot delivery Summer '21
08
GAS&ACTIVITIES | Denver |
WATTENBERGSOUTHERN NIOBRARA | |
Adams | |
Arapahoe | |
OIL |
Douglas | Elbert | ||||||||||||||||||||||||||
PURE CYCLE
a water and wastewater services company
Repositioning of Assets in the Southern Wattenberg Feild
ConocoPhillips has entered into an agreement with Crestone Peak Resources
Occidental acquired Anadarko
Occidental/Anadarko | (approx. 20,000 Acres) | |
Extraction | (approx. 69,000 Acres) | |
Conoco (Crestone) | (approx. 100,000 Acres) | |
GMT | ||
True | ||
09 | ||
Other | ||
PURE CYCLE
a water and wastewater services company
Dollars
Water Investments | Cash | ||
(millions) | $51.5 | 30 | (millions) |
60 | $27.9 | ||
$50.2 | $25.6 |
$22.1
40 | $36.7 | 20 | $20.3 | |
$34.6 | ||||
Dollars | ||||
$28.3 | ||||
20 | 10 | $9.7 | ||
0 | '16 | '17 | '18 | '19 | Q1'20 | 0 | '16 | '17 | '18 | '19 | Q1'20 | 11 |
FYE | FYE |
Operating | Growth Income from | ||
Continuing Operations | |||
Revenues | per share (diluted) | ||
(millions) | (millions) | $0.24 | |
25 | 0.25 | ||
$20.4 | $0.20 |
20 | 0.2 |
Dollars | 15 | Dollars | 0.15 | ||||||||||||
10 | $10.4 | 0.1 | |||||||||||||
$6.9 | |||||||||||||||
5 | 0.05 | ||||||||||||||
$0.45 | $1.2 | $0.02 | |||||||||||||
($0.06) ($0.07) | |||||||||||||||
0 | 0 | ||||||||||||||
'16 | '17 | '18 | '19 | Q1'20 | '16 | '177 | '18 | '19 | Q1'20 | ||||||
FYE | FYE | ||||||||||||||
PURE CYCLE
a water and wastewater services company
Net Income | ||
(after tax) | ||
6 | (millions) | $5.7 |
$4.8
4
Dollars
2
($1.3) | ($1.7) | $0.4 | ||||
0 | ||||||
'18 | '19 | Q1'20 | ||||
'16 | '17 | |||||
FYE | 12 | |||||
PURE CYCLE | ||
a water and wastewater services company | ||
LAND DEVELOPMENT | ||
DELIVERY OF LOTS | MUNICIPAL TAP FEE REV. | |
Q1 '20 Revenues = $8,542,000 | Q1 '20 Revenues = $ | 1,672,000 |
Q1 '19 Revenues = $1,381,000 | Q1 '19 Revenues = $ | 255,000 |
DRILL FRACKING | |
INDUSTRIAL WATER | O&G ROYALTIES |
SALES | Q1 '20 Revenues = $331,000 |
Q1 '20 Revenues = $ 37,300 | Q1 '19 Revenues = $ 45,000 |
Q1 '19 Revenues = $1,285,000 | (4 NEW WELLS WITHIN OUR 1/8 |
(13 WELLS DRILLED BUT NOT | |
POOLING) | |
FRACKED IN 2019) |
Sources of Income (EBITA)
Q1 | 2020: | $7,649,000 | 13 |
Q1 | 2019: | $ 634,000 |
PURE CYCLE
a water and wastewater services company
CAB Bond Reimbursement
November Citi Corp acted as underwriter for the CAB Bond Placement
Total Par Amount | $13,501,000 | |
Capitalized Interest | $ | 2,363,000 |
Fees | $ | 633,000 |
Net Proceeds | $10,505,000 |
Accounting | |
Inventory | $4,230,000 |
Other Income | $6,275,000 |
Remaining 158 lots
Inventory margins will increase from 6% to 27% 10
PURE CYCLE
a water and wastewater services company
SHEET
SUMMARIZED BALANCE
Please refer to our Report on Form 10Q filed on January 7, 2020 for additional
information regarding our financial position. | 14 |
SUMMARIZED STATEMENT OF OPERATIONS
PURE CYCLE
a water and wastewater services company
Please refer to our Report on Form 10Q filed on January 7, 2020 for additional information regarding our operating.
15
CONTACT INFORMATION
PURE CYCLE
a water and wastewater services company
MAILING ADDRESS
34501 E Quincy Ave., Bldg. 34, Box 10, Watkins, CO 80137
EMAIL ADDRESS
info@purecyclewater.com
PHONE NUMBER
(303) 292-3456
FAX NUMBER
(303) 292-3475
WEBSITE
www.purecyclewater.com
TICKER
"PCYO" traded on the NASDAQ Capital Market
SHARES OUTSTANDING
23.8 million
THANK YOU! | PURE CYCLE |
a water and wastewater services company |
ANY QUESTIONS?
PURE CYCLE
a water and wastewater services company
Financial Results for the Quarter Ending November 31, 2019
P R E S E N T E D B Y M A R K H A R D I N G
"SAFE HARBOR" STATEMENT UNDER THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
PURE CYCLE
a water and wastewater services company
Statements that are not historical facts contained or incorporated by reference in this presentation are "forward-looking statements" ("FLS") within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 as amended. FLS involve risks and uncertainties that could cause actual results to differ from projected results.
The words "anticipate," "believe," "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify FLS. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. We are not able to predict all factors that may affect future results. We cannot assure you that any of our expectations will be realized. Our actual results could differ materially from those discussed in or implied by these forward-looking statements.
Factors that may cause actual results to differ materially from those contemplated by such FLS include, without limitation: the risk factors discussed in our most recent Annual Report on Form 10-K; the timing of new home construction and other development in the areas where we may sell our water, which in turn may be impacted by credit availability; population growth; employment rates; general economic conditions; the market price of water; changes in customer consumption patterns; changes in applicable statutory and regulatory requirements; changes in governmental policies and procedures; uncertainties in the estimation of water available under decrees; uncertainties in the estimation of costs of delivery of water and treatment of wastewater; uncertainties in the estimation of the service life of our systems; uncertainties in the estimation of costs of construction projects; the strength and financial resources of our competitors; our ability to find and retain skilled personnel; climatic and weather conditions, including flood, droughts and freezing conditions; labor relations; availability and cost of labor, material and equipment; delays in anticipated permit and construction dates; environmental risks and regulations; our ability to raise capital; our ability to negotiate contracts with new customers; and uncertainties in water court rulings; and other factors discussed from time to time in our press releases, public statements and documents filed or furnished with the SEC.
All FLS are expressly qualified by these cautionary statements. | 02 |
27,000 Acre Feet of water
930 Acre Zoned
Master Plan
Community
PURE CYCLE
a water and wastewater services company
KEY ASSETS
Industrial | O&G | |
Water Sales | Royalties | |
ALL OF THESE KEY ASSETS CONTRIBUTE TO YOUR SHAREHOLDER VALUE | 03 |
WATER UTILITY ASSETS
PURE CYCLE
a water and wastewater services company
27,000 acre feet of water
11 groundwater wells
3 alluvial wells
150 acre feet surface storage
2 million gallons finished water storage
2 wastewater Reclamation Facilities
20 miles of transmission lines
15 miles of distribution lines
10 miles of collection lines
3 pump stations
04
KEY FACTORS
PURE CYCLE
LAND
a water and wastewater services company
MASTER PLANNED COMMUNITY - SKY RANCH
931 Acres Located on the I-70 Corridor
LOCATION
16 miles East of Downtown Denver
4 miles South of DIA
HOME
Zoned for 3,400 homes and 2.3 | |
million sq. feet of commercial and | |
retail property (total of 5,000 SFE's | |
combined) | 05 |
PHASE 1 -
"NEIGHBORHOOD B" 506 LOTS
PURE CYCLE
a water and wastewater services company
INFRASTRUCTURE
LOT DELIVERY
First Phase for Development (151 Acres) Sold all 506 lots before breaking ground
Delivered 372 Finished lots
All Wet Utilities, drainage, electric, and 90% roadway for remaining 134 lots
40 Residents in Community
Issued 152 Building permits
Sold 175 Water and Wastewater Taps
100 homes under construction
Expect to deliver remaining 134 Lots September 2020
Water Reclamation Facility complete
06
SKY RANCH UPDATE
PURE CYCLE
a water and wastewater services company
HOME SALES
Approximately 40 Residents Averaging 6 homes/builder/mo.
AVERAGE LOT SALES
Avg. home builders $71,750 (2.5%) Reimbursables $30,000 Total $101,750
07
PURE CYCLE
a water and wastewater services company
PHASE 2-
DevelopmentNEIGHBORHOODto accommodate:A•160 acres of commercial, retail and light industrial •Multifamily residential •Attached single family •Detached single family
May include between 2,500 - 3,000 SFE's
Grading Fall 2020, lot delivery Summer '21
08
GAS&ACTIVITIES | Denver |
WATTENBERGSOUTHERN NIOBRARA | |
Adams | |
Arapahoe | |
OIL |
Douglas | Elbert | ||||||||||||||||||||||||||
PURE CYCLE
a water and wastewater services company
Repositioning of Assets in the Southern Wattenberg Feild
ConocoPhillips has entered into an agreement with Crestone Peak Resources
Occidental acquired Anadarko
Occidental/Anadarko | (approx. 20,000 Acres) | |
Extraction | (approx. 69,000 Acres) | |
Conoco (Crestone) | (approx. 100,000 Acres) | |
GMT | ||
True | ||
09 | ||
Other | ||
PURE CYCLE
a water and wastewater services company
Dollars
Water Investments | Cash | ||
(millions) | $51.5 | 30 | (millions) |
60 | $27.9 | ||
$50.2 | $25.6 |
$22.1
40 | $36.7 | 20 | $20.3 | |
$34.6 | ||||
Dollars | ||||
$28.3 | ||||
20 | 10 | $9.7 | ||
0 | '16 | '17 | '18 | '19 | Q1'20 | 0 | '16 | '17 | '18 | '19 | Q1'20 | 11 |
FYE | FYE |
Operating | Growth Income from | ||
Continuing Operations | |||
Revenues | per share (diluted) | ||
(millions) | (millions) | $0.24 | |
25 | 0.25 | ||
$20.4 | $0.20 |
20 | 0.2 |
Dollars | 15 | Dollars | 0.15 | ||||||||||||
10 | $10.4 | 0.1 | |||||||||||||
$6.9 | |||||||||||||||
5 | 0.05 | ||||||||||||||
$0.45 | $1.2 | $0.02 | |||||||||||||
($0.06) ($0.07) | |||||||||||||||
0 | 0 | ||||||||||||||
'16 | '17 | '18 | '19 | Q1'20 | '16 | '177 | '18 | '19 | Q1'20 | ||||||
FYE | FYE | ||||||||||||||
PURE CYCLE
a water and wastewater services company
Net Income | ||
(after tax) | ||
6 | (millions) | $5.7 |
$4.8
4
Dollars
2
($1.3) | ($1.7) | $0.4 | ||||
0 | ||||||
'18 | '19 | Q1'20 | ||||
'16 | '17 | |||||
FYE | 12 | |||||
PURE CYCLE | ||
a water and wastewater services company | ||
LAND DEVELOPMENT | ||
DELIVERY OF LOTS | MUNICIPAL TAP FEE REV. | |
Q1 '20 Revenues = $8,542,000 | Q1 '20 Revenues = $ | 1,672,000 |
Q1 '19 Revenues = $1,381,000 | Q1 '19 Revenues = $ | 255,000 |
DRILL FRACKING | |
INDUSTRIAL WATER | O&G ROYALTIES |
SALES | Q1 '20 Revenues = $331,000 |
Q1 '20 Revenues = $ 37,300 | Q1 '19 Revenues = $ 45,000 |
Q1 '19 Revenues = $1,285,000 | (4 NEW WELLS WITHIN OUR 1/8 |
(13 WELLS DRILLED BUT NOT | |
POOLING) | |
FRACKED IN 2019) |
Sources of Income (EBITA)
Q1 | 2020: | $7,649,000 | 13 |
Q1 | 2019: | $ 634,000 |
PURE CYCLE
a water and wastewater services company
CAB Bond Reimbursement
November Citi Corp acted as underwriter for the CAB Bond Placement
Total Par Amount | $13,501,000 | |
Capitalized Interest | $ | 2,363,000 |
Fees | $ | 633,000 |
Net Proceeds | $10,505,000 |
Accounting | |
Inventory | $4,230,000 |
Other Income | $6,275,000 |
Remaining 158 lots
Inventory margins will increase from 6% to 27% 10
PURE CYCLE
a water and wastewater services company
SHEET
SUMMARIZED BALANCE
Please refer to our Report on Form 10Q filed on January 7, 2020 for additional
information regarding our financial position. | 14 |
SUMMARIZED STATEMENT OF OPERATIONS
PURE CYCLE
a water and wastewater services company
Please refer to our Report on Form 10Q filed on January 7, 2020 for additional information regarding our operating.
15
CONTACT INFORMATION
PURE CYCLE
a water and wastewater services company
MAILING ADDRESS
34501 E Quincy Ave., Bldg. 34, Box 10, Watkins, CO 80137
EMAIL ADDRESS
info@purecyclewater.com
PHONE NUMBER
(303) 292-3456
FAX NUMBER
(303) 292-3475
WEBSITE
www.purecyclewater.com
TICKER
"PCYO" traded on the NASDAQ Capital Market
SHARES OUTSTANDING
23.8 million
THANK YOU! | PURE CYCLE |
a water and wastewater services company |
ANY QUESTIONS?
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Pure Cycle Corporation published this content on 06 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 January 2020 20:37:00 UTC
