Los Angeles Herald Logo
Los Angeles Herald Logo
  • Facebook
  • Twitter
  • Google Plus
  • RSS Feed
Menu
  • Home
  • International
  • Business
  • California
  • Wire
  • Search
  • Weather
  • Network
VOLUME NO. 0205/16

Pure Cycle Corporation Announces Financial Results for its Fourth Quarter and Fiscal Year Ended August 31, 2019

ACCESS Newswire
08 Nov 2019, 02:19 GMT+10

DENVER, CO / ACCESSWIRE / November 7, 2019 / Pure Cycle Corporation (NASDAQ:PCYO) ('Pure Cycle' or the 'Company') today reported financial results for its fourth quarter and fiscal year ended August 31, 2019.

Fourth Quarter and Fiscal Year Ended August 31, 2019 Highlights:

  • Revenue during the fourth quarter and fiscal year ended August 31, 2019, was $9.5 million and $20.4 million, respectively
  • Operating income during the fourth quarter and fiscal year ended August 31, 2019, was $1.6 million and $3.0 million, respectively
  • Net income during the fourth quarter and fiscal year ended August 31, 2019, was $2.2 million and $4.0 million, respectively
  • Fully diluted earnings per share during the fourth quarter and fiscal year ended August 31, 2019, was $0.09 and $0.17, respectively
  • Closed the sale of 172 and 255 finished lots at Sky Ranch, receiving approximately $8 million and $18 million in aggregate proceeds during the fourth quarter and fiscal year ended August 31, 2019, respectively.

'Fiscal year 2019 was an extraordinary year for us, in which we were able to execute our land development business segment and expand our water utilities segment,' commented Mark Harding, President of Pure Cycle Corporation. 'We are pleased to have closed the sale of 255 finished lots, receiving in aggregate $18 million in proceeds. This amount represents an acceleration of lot deliveries to our home builder customers from our original agreements and a testament to the success of opening our initial phase of Sky Ranch. Given this acceleration, we expect to close the remaining 159 finished lots under our finished lot agreement and 92 lots under our lot development agreements during fiscal 2020, which is more than 18 months ahead of schedule. Subsequent to our fiscal year end, we have delivered and received 2 progress payments for an additional 95 lots pursuant to our lot delivery agreements and closed an additional 22 finished lot sales, due to strong demand from our home builders for us to complete lots to keep up with home sales at Sky Ranch.

In addition to lot sales we also received payments for 113 water and wastewater taps in fiscal 2019 for a combined total of $3.5 million. As of October 31, 2019, our three home builder customers have been granted over 120 building permits and closed 11 homes with the new homeowners. Sales from our home builder customers continue to exceed forecasts, and we are thrilled with the success of our Sky Ranch opening' continued Mr. Harding.

In addition, on October 25, 2019, the Sky Ranch Community Authority Board (the 'CAB'), a political subdivision and a public corporation of the State of Colorado responsible for the construction, design and financing of the public improvements at Sky Ranch, filed a preliminary limited offering memorandum for the issuance of tax-exempt, fixed rate senior bonds in the aggregate principal amount of approximately $10,820,000 and tax-exempt, fixed-rate subordinate bonds in the aggregate principal amount of approximately $1,765,000. Should the offering close successfully, the net proceeds would be available to reimburse a portion of the CAB's obligations to Pure Cycle for its construction of public improvements at Sky Ranch. As of August 31, 2019, we have advanced the CAB approximately $20 million for the construction of public improvements.

Period Ended August 31,
In 000's (except per share)
Three Months Ended Year Ended
2019 2018 2019 2018
Revenue:
Water sales
$1,765 $1,728 $4,861 $4,745
Tap fees (water and wastewater)
1,789 - 3,545 50
Lot sales
5,920 2,164 11,956 2,164
Total revenue
9,474 3,892 20,362 6,959
Cost of revenues:
Water
$(1,010) $(975) $(2,639) $(2,148)
Lot fee development
(5,589) (2,014) (11,305) (2,014)
Total cost of revenues
(6,599) (2,989) (13,944) (4,162)
Gross profit
2,875 903 6,418 2,797
Operating expenses:
General and administrative
(1,243) (1,039) (3,107) (2,855)
Other
(36) 129 (313) (251)
Income (loss) from operations
1,596 (7) 2,998 (309)
Other income (expenses):
Oil and gas royalties and lease income, net
49 53 204 242
Other gain (loss)
31 (2) 27 (7)
Interest income
52 30 299 206
Net income before taxes
1,728 74 3,528 132
Tax benefit
494 282 494 282
Net income after taxes
$2,222 $356 $4,022 $414
Diluted income per share
$0.09 $0.01 $0.17 $0.02
* Denotes less than $0.01 per share

Revenues increased approximately 143% and 193% during the three months and fiscal year ended August 31, 2019, compared to the three months and fiscal year ended August 31, 2018, respectively. The increases were primarily attributable to revenue recognized from lot sales and water and wastewater tap fees related to Sky Ranch. Revenue from water sales increased slightly for both the three months and fiscal year ended August 31, 2019, compared to the three months and fiscal year ended August 31, 2018. Cost of revenues increased approximately 121% and 235% during the three months and fiscal year ended August 31, 2019, compared to the three months and fiscal year ended August 31, 2018, respectively, due primarily to costs incurred from land development.

During the three months and fiscal year ended August 31, 2019, net income increased approximately 523% and 870% during the period, compared to the three months and fiscal year ended August 31, 2018, respectively. The increase was primarily attributed to revenue from land development and water and wastewater tap fees and the tax benefit related to the Company releasing the valuation allowance on its net deferred tax assets, primarily related to net operating loss carryforwards.

Our summarized financial position as of August 31, 2019, and August 31, 2018, is as follows:

August 31, 2019 August 31, 2018 $ Change
000's 000's 000's
Assets
Cash, cash equivalents and marketable securities
$ 9,667 $ 20,283 $ (10,616)
Other current assets
13,871 7,635 6,236
Total current assets
23,538 27,918 (4,380)
Long-term investments
- 190 (190)
Investments in water and water systems, net
50,270 36,722 13,548
Land and mineral interests
5,104 4,660 444
Other long-term assets
4,020 2,416 1,604
Total assets
$ 82,932 $ 71,906 $ 11,026
Liabilities and Shareholders' Equity
Accounts payable

Share article:
Shares
facebook sharing button Share
twitter sharing button Tweet
reddit sharing button Share
flipboard sharing button Flip
email sharing button Email

Watch latest videos

Subscribe and Follow

Get a daily dose of Los Angeles Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.

  • Facebook
  • Twitter
  • Google Plus
  • RSS Feed

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Los Angeles Herald.

More Information
null in null

International

Section
Native leaders, activists oppose detention site on Florida wetlands
Native leaders, activists oppose detention site on Florida wetlands

EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...

Beijing crowds cheer AI-powered robots over real soccer players
Beijing crowds cheer AI-powered robots over real soccer players

BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...

COVID-19 source still unknown, says WHO panel
COVID-19 source still unknown, says WHO panel

]LONDON, U.K.: A World Health Organization (WHO) expert group investigating the origins of the COVID-19 pandemic released its final...

Fox faces $787 million lawsuit from Newsom over Trump phone call
Fox faces $787 million lawsuit from Newsom over Trump phone call

DOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...

DeepSeek faces app store ban in Germany over data transfer fears
DeepSeek faces app store ban in Germany over data transfer fears

FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...

Canadian option offered to Harvard graduates facing US visa issues
Canadian option offered to Harvard graduates facing US visa issues

TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...

California

Section
Lululemon accuses Costco of selling knockoff apparel
Lululemon accuses Costco of selling knockoff apparel

Vancouver, Canada: A high-stakes legal showdown is brewing in the world of athleisure. Lululemon, the Canadian brand known for its...

Fox faces $787 million lawsuit from Newsom over Trump phone call
Fox faces $787 million lawsuit from Newsom over Trump phone call

DOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...

DIY weight-loss drug trend surges amid high prices, low access
DIY weight-loss drug trend surges amid high prices, low access

SAN FRANCISCO, California: Across the U.S., a growing number of people are taking obesity treatment into their own hands — literally....

Apple allows outside payment links under EU pressure
Apple allows outside payment links under EU pressure

SAN FRANCISCO, California: Under pressure from European regulators, Apple has revamped its App Store policies in the EU, introducing...

Meta wins lawsuit in California court over AI use of authors’ books
Meta wins lawsuit in California court over AI use of authors’ books

SAN FRANCISCO, California: A U.S. judge has dismissed a copyright lawsuit filed by 13 authors against Meta Platforms, the company that...

ISKCON temple in US targeted in suspected hate crime; India urges swift action and stands in solidarity
ISKCON temple in US targeted in suspected hate crime; India urges swift action and stands in solidarity

Spanish Fork [US], July 2 (ANI): The ISKCON Sri Sri Radha Krishna Temple in Spanish Fork, Utah, renowned globally for hosting the annual...

Movie Review

Movie Review
Good Guys Wear Black [Blu-Ray]
  • About us
  • Contact us
  • News Releases
  • Privacy Policy
  • Terms & Conditions
  • Archives
  • Sitemap
  • Weather
  • Network
  • Facebook
  • Twitter
  • Google
  • Rss

© Copyright 1999-2025 Los Angeles Herald. All rights reserved.