Slide 1: Earnings Presentation for the Three and Nine Months Ended May 31, 2022
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 1.
Slide 2: Company Overview / Safe Harbor Statement
COMPANY OVERVIEW 2. Safe Harbor Statement
Slide 3: We Operate Multiple Complementary Segments
Single-Family Home Rentals • Build single family homes in the Denver metro area in neighborhoods we are developing • Receive rental income in growing housing market • Benefit from immediate asset appreciation and positive cash flows • Provide water and wastewater service to rental properties 3. WE O
Slide 4: Environmental, Social & Governance (ESG)
metrics 4. Envir..o..n._m_ental, Social & _ o ve rnan ce - -------E-SG • Employment of an ESG Initiatives Specialist • Development of an ESG Policy • Developing an ESG page on company website • Implementing an ESG strategy that involves: ·Adhering to an ESG framework to provide data disclosure guida
Slide 5: ESG Initiatives: Environmental, Social, Governance
• Will begin assessing, tracking, and disclosing: energy managemenUusage, • Developing a Labor, Health & Safety Policy • Will begin tracking and assessing employee satisfaction and water affordability/ access • Updated governance policies • Developing a board diversity matrix required by NASDAQ 5. E
Slide 6: Water and Wastewater Resource Development
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 6.
Slide 7: Wholesale Water & Wastewater
feet of groundwater & surface water Own rights to surface reservoir storage COLLECTION 7. Wholesale Water & Wastewater Principal business interests are to deliver wholesale water and wastewater service WELLS/DIVERSION0 IRRIGATIONREUSE Large water portfolio in water-short region Company owns or contr
Slide 8: Water Assets and Infrastructure
! PENVtR INTERNAT10NAL AIRPORT rlnfrastructure '>-, .\ . "Uftl1lli61lim ! \-) \ COlORADO AIR AHD S .-.ct "'" infrastructure is in service to support phase 2 of Ranch Development F QJ-2022 FY2021 FY2020 ; (/ FY2019 .,_ ®IONAL FY2018 . J (/ FY 2017 / Pond'erouPatk I I over water Front , , .... I )
Slide 9: Water Services Monthly Water Customers
Growth from... 3,070 Avg. residential customer generates $1,500 per year 1n 3,000 2,070 2,000 Future Sky Ranch 1,000 973 Elbert and Hwy 86 Residents Elbert and Hwy 86 9. Water ServicesMonthly Water Customers * 5,0005,000 4,5004,570 4,0004,070 New Residential 3,500 3,570 New service customers added w
Slide 10: Oil & Gas
.!= r"'.,-l --· 1"'=::=:::. -··=·-- 16 wells/mile formation 10. OIL& GAS We provide raw water to oil and gas operators tor drilling with 120 wells drilled to date Southern Wattenberg Niobrara I Five Possible Formations I Pad Development: 40 Acre spacing I I Over 10,000 well capacity I Average $250
Slide 11: Development Encroachment to Lowry Range
DEVELOPMENT ENCROACHMENT TO LOWRY RANGE Wii.U.·!..-;::--on Lowry Range exclusive Service Area ••"' 11. View looking north of development encroachment
Slide 12: Land Development
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 12.
Slide 13: Land Development
LAND DEVELOPMENT jodate up to 3,200 + 15 miles east of downtown Denver and 4 miles south of DIA 13,
Slide 14: Sky Ranch Phase 1 Overview
RANCH - PHASE 1 100% complete • All lots delivered (509) • As of 5/31/2022 there were approximately 450 residents ·All 505 taps sold (4 units remain with PCYO for rental) • Estimated that homes will be fully sold out by the end of Q4-2022 RICl-MQN) AMERICANHOME kb morr1son .... PARTNERING HOMEBUILDE
Slide 15: Sky Ranch Phase 2 Overview
Phase 2A.61% complete • Approximately 850 lots in total • 804 lots under contract with home builders • 46 lots reserved for rental business with an additional 100 potential plats • Initial lots delivered during three months ended May 31, 2022 • Will include new Charter School directly north of this
Slide 16: Sky Ranch Phase 2 Financial and Quantitative Data
SKY RANCH PHASE 2 Financial and Quantitative Data Phase 2A(22910TS) |[Phase2B (2N1L0TS) | Phase 2c (20410TS) ||Phase 20 (206L0TS) | Phase 2 (850 LOTS) Uattewne* $wén|| atten $100 || ttteeme” $s i6im|| tttoeme $ man|| UotReveme* $700 t=) esl Seer es | ose Sill sae os Tap Revenue 209m, Wale —cOia|| To
Slide 17: Lot Closing Dashboard
1st SUB-PHASE OF 2nd DEVELOPMENT PHASE Lot ClosingDashboard t) 18,417,000 LOTS BY TYPE LOTS BY BUILDER LLEY) • 50'LOTS • 3S LOTS DUPLEXS • CHALLENGER • LENNAR • DRHORTON KBHOMES • PCVOBTR • TOWNHOMES 17. LOT SALES BY BUILDER 8,000,000 • 45' LOTS45'LOTIS (A Takedown 3 DATE7/31/2022 AMOUNT$ 10,850,000
Slide 18: 18.
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Slide 19: School at Sky Ranch
• Sold 32 acres to National Heritage Academy for $1.6 million, and made cash-in-lieu payment to Bennett School District for $1.6 million • Located at the center of our Sky for 2023-2024 school year 19. Ranch Community • Groundbreaking on June 24, 2022 • School Opening Dates: Grades K-8 opening Augus
Slide 20: Single-Family Rentals
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 20.
Slide 21: Our Strategy and Projections
We have contracted for the construction of single family homes with the intent to retain them for long- term rental purposes. Pure Cycle is working with an experience home builder to construct these houses, which Pure Cycle will own and maintain, taking on a new role as property manager. "The single
Slide 22: Denver Rental Market Report
Denver Premier Leasing Agents RENTAL MARKET REPORT MEDIAN LEASED PRICE LEASED LISTINGS 4% 0 -1% + September 2021 MEDIAN LEASED PRICE PSF MEDIAN LEASED PRICE PER BEDROOM -3 Days MEDIAN DAYS IN MLS +10% +6% - Detached • Townhomes - Condominiums• Multi-Family • Apartments• All Denver Metro Counties: Ad
Slide 23: Pro Forma Income per House
Pro Forma Income/house ‘and maintenance Rental income is he average actual monthly lease rates onthe tee inl homes + Current stating wil provide propery management services forthe foreseeable future + Propet taxes based on current min Sky Ranch + Interest expense based on current nance olen fora 30-
Slide 24: Phase 4 Rental Homes
PHASE-4 RENTAL HOMES ‘March 2021 May 2022 June 2021 c May 2021 November 2021 ‘Approvalto stant fate ee Uncen “Suncom neces ete $368k + Flexible debt usoge up fo 70% of approised vee + Lowcostcopial(3 75-425 Financed costs $333K + House appraisal valve estimated at $547,000 based on homes soln Sky Ra
Slide 25: Financial Results
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 25.
Slide 26: Nine Months Ended May 31, 2022
NINE MONTHS ENDED MAY 31,2022 REVENUE OPERATING INCOME NET INCOME $3.6m 16M 4M 20M $18.3m • 18M $3.3 • -· 3.5M 14M 16M 3M 12M 14M 2.5M 12M 2M 10M $1.4m /·. SM 1.5M .. $6.l m 6M 1M 4M 0.5M Sl.2.9k YTO 03-2018 2M $784k $4.0m ($302k), $1.7m -0.5M -2M YTO 03 2018 YTO 03· 2019 YTO 03-2020 YTO 03-2021 YTO
Slide 27: Capital Allocation Priorities and Five-Year Performance
5 YEAR PERFORMANCE Shareholder Value .\ Revenue $26m Net Income* Gross Margin 22M 20M 18M 16M 14M 12M 10M 8M 6M 4M 2M 26M 11M $11m n 7 20M 7M $8m $7m • • $5m ---------....--$Om / $-2m---------• • -2M ll -4M 0 FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 PROJ.2022 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Slide 28: Consolidated Balance Sheets
Pt"RE CYCU: CORPOR.\TIOX CO:-iOLID.UD> 8.\L\KCI: SHEETS BALANCE SHEET MavJl, lOU AJl, 20ll (111 tJoou:mrtl;. taUpt ;Jtmc) ASSETS: Ommtassets. Ctih a:>dc21h oqu>\-.Jem Trwlo occOOII!i recen.,ble, Dl!t Prep:ud a:>dodler assm La:>d tmdo!r clo\'tiopmom (11Uadittd) s 5,412 20.117 1.532 458 608 16,000 1.1
Slide 29: Consolidated Statements of Operations
PGR£ CYCLE CORPORATIO:X CO:XSOLIDATED ST..\TL \IE:OO. S OF OPERATIO:XS (uuaudit•d) INCOME STATEMENT :>in• lonths End•d Thr•• lonths End•d (In thousands, except share infonnatlon) Re\·enues: Metered water usage from: Municipal customers Commercial customers \Vastew;uu treattnenl fees Water and wastew
Slide 30: Leadership and Board of Directors
LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding President and CEO Kevin B. MeNeill Vice President and CFO Peter C. Howell Director and Chairman of the Audit Committee IDirector Jeffrey G. Sheets Patrick J. Beirne Chairman of the Board Wanda J. Abel Director and Chairman of the Nominating and Gover
Slide 31: Contact and Company Information
CORPORATE HEADQUARTERS 34501E. Quincy Ave, BLDG 65, Suite A, Watkins, CO 80137 CONTACT INFO info@purecyclewater.com 303-292-3456 www.purecyclewater.com Follow us on... "# Twitter: @PureCycleCorp fm Linkedln: https://www.linkedjn.com/company/pure-cycle-corporatjon STOCK INFO Ticker symbol (NASDAQ Cap
Slide 32: Questions?
NASDAQ:PCYO www.purecyclewater.com @PureCycleCorp E CYCLE CORPORATION EARNINGS PRESENTATION FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2022 Presented by Mark Harding,CEO I Kevin McNeill,CFO I Dirk Lashnits,VP Land Development 32.