Pure Cycle Corporation · NASDAQ:PCYO
Pure Cycle — Sidoti Investor Conference 2021
26 slides from Pure Cycle's conference presentation, 2021
Slide 1: Water & Wastewater Land Development
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 2: Overview: Safe Harbor Statement
Overview SAFE HARBOR STATEMENT 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 Sect
Slide 3: Water and Wastewater Resource Development Segment
Water and Wastewater Resource Development Segment + Own a large and valuable portfolio of water rights + Sustainable ground and surface water rights we estimate can serve up to 60,0000 SFEs + Denver metro land development requires developers to have water service as a condition of zoning, offering u
Slide 4: Water & Wastewater
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 5: Wastewater Collection
ha Wastewater Collection AT A GLANCE
Slide 6: Water Infrastructure
WATER INFRASTRUCTURE Million Gallons of Water Storage t er 29,000 acre-feet of water along the Denver Front Range Sky Ranch
Slide 7: Reclamation
+ Construction of this $10 million investment completed in February 2020 + Comprised of a state-of-the-art tw y 30’ pretreatment building and a two- story 69’ x 167’ main plant structure. RECLAMATION + Provides highly treated irrigation and other reclaimed water uses and can service up op 2 ai ~mily
Slide 8: Land Development
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 9: Developing the Sky Ranch
+ Developing the 930 acre Sky Ranch + Can accommodate up to 3,400 residential lots + Can Accommodate up to 2 million square feet of commercial development (1,600 SFE's) + 15 miles east of downtown Denver and 4 miles south of DIA Phase Progress
Slide 10: Phase Progress
- All lots delivered (509) + Nearly 300 residents + 115 homes under construction - Estimated to be fully occupied December 2021 + Recognized $36.7 million in lot revenue to date + Recognized $11.5 million in tap fees to date YAKMERICAN HOMES taylor | HOMEBUILDERS MOrTiSON gga @ RICHVIOND Homes Inspi
Slide 11: Partnering Homebuilders
+ Nearly 900 lots in total - 789 lots under contract with home builders + 100+ lots reserved for BTR purposes (In yellow) + Broke ground February 2021 + Initial lots expected to be delivered late calendar 2021 + Estimated lot revenues of $72.6 million + Estimated tap fees of $21.5 million » Estimate
Slide 12: Build-to-Rent
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 13: Build-to-Rent
BUILD-TO-RENT Build-to-Rent (BTR) is the construction of single family homes with the intent to retain them for long-term rental purposes. Pure Cycle is working with experienced home builders to construct these houses, which Pure Cycle will own and maintain these properties, taking on a new role as
Slide 14: Denver Market
DENVER MARKET + Denver market is among the top 5 home markets in the US + Sky Ranch lots are selling fast, ov: phase houses are occupied half of first - Home ownership is not an option for 55% of U.S. Counties ingle family rental: more stable than apartments or purchase options PURE CYCLE + BTR home
Slide 15: Pro Forma
Pro Forma Pro Forma Single house Single house Monthly Annualized Rental income $ 2,800 $ 33,600 Annualized Average Estimated Rental Revenue per Home of $33K Operations, repairs and maintenance Property Taxes and insurance Interest Expense Cash flow nnualized Average estimated cash flow per Home of $
Slide 16: Per House Estimates
PER HOUSE ESTIMATES Capitalized costs Financed costs Fair market value $342K $317K $450K Assumptions 15 Year Forecast - 100 Homes + Flexible debt usage, up to 80% of appraised value + Low cost capital (3.75%) - House fair market value estimated at $450,000 based on homes sold in Sky Ranch per NMLS -
Slide 17: Oil & Gas
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 18: Oil & Gas Activities
OIL & GAS ACTIVITIES : Sky Ranch i Service Area [ Lowry Range ma Sky Ranch — Gas Collection Water Transmission © Wells Drilled to date 2019 Arapahoe County Fairgrounds 18.
Slide 19: Southern Wattenberg Niobrara
Southern Wattenberg Niobrara More than 200 square miles in Adams & Arapahoe Counties Five Possible Formations Pad Development: 40 Acre spacing 16 wells/mile formation Over 10,000 well capacity Average $250,000 per well 19.
Slide 20: Financial Information
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO
Slide 21: Revenue, Gross Margin, Net Income
Revenue os som GTOSS Margin coos Net Income ows 7,000 . 8,000 6,000 Zz 7,000 a 5,000 4g 6000 v 4,000 5000 Ay 3,000 3,000 L 2,000 2000 1.000 1000 a ° 706 1,000 “gio 1.000 — FYE2016FYE2017.—«FYEQOI8—«~FYE2019._—_—«~FYE 2020 FYE2016 -FYE2017—«~FYEQOI8—«FYE2019._~—«~FYE2020 SSS ES @ Www segment @ Land D
Slide 22: Summary Balance Sheet Information
SUMMARY BALANCE SHEET INFORMATION ASSETS: Current Assets: Cash and cash equivalents Land development inventories All other current assets Total current assets Investments in water and water systems, net All other long-term assets Total assets C Liabiliti Accounts payable and accrued liabilities All
Slide 23: Summary Income Statement Information
SUMMARY INCOME STATEMENT INFORMA’ Revenues: Metered water usage ‘Municipal water usage revenues Oil and Gas water usage revenues Eamings per fully diluted share $ Crea 0m 021) (85%) 23.
Slide 24: Leadership and Board of Directors
LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO Peter (G&S inlet gletirey g pues 24.
Slide 25: Contact and Company Information
CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS 34501 E. Quine e, BLDG 34, Watkins, CO 80137 CONTACT INFO PCYO STOCK PRICE RANGE Wwww.pur ecyclewater. com Follow us on twitter L| J LJ U @PureCycleCorp W STOCK INFO tv) Ticker symbol (NASDAQ Capital FYE 2016 FYE 2017 'Y FYE 2019 FYE2020 FQ12021
Slide 26: Water & Wastewater Land Development Appendix
Water & | Wastewater Land . Development 3 Development s — Sn Appendix Presented by Mark Harding, CEO