Pure Cycle Corporation Announces Second Quarter Fiscal 2013 Financial Results
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.
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