Pure Cycle Corporation · NASDAQ:PCYO
Pure Cycle — FY2020 Earnings Presentation
24 slides from Pure Cycle's earnings presentation, Aug 31, 2020
Slide 1: Presented by Mark Harding, CEO
a PRESENTED BY Mark Harding, CEO
Slide 2: Safe Harbor Statement
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 Section 21C o
Slide 3: About Pure Cycle
ABOUT PURE CYCLE bh
Slide 4: 4.
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Slide 5: 5.
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Slide 6: Land Development
Land Development
Slide 7: Sky Ranch
SKY RANCH
Slide 8: Denver Housing Market in the News
DENVER HOUSING MARKET IN THE NEWS 0 i: Low interest rates lead to 0 2 Average metro Denver home 0 3 September was the toughest 4 "Shrugging Off" the highest level of mortgage sale price surpasses $600,000 month ever to buy a home in Pandemic, Colorado's activity in Denver metro since for first time
Slide 9: Homes under Construction
110 90 Homes under Construction Homes under Construction 70 Residents 110 Homes under Construction Homes under Construction 40 120 Ri Residents
Slide 10: Sky Ranch Filing 1
Sky Ranch Filing 1 Neighborhood B Lots Sold 506 Lots Sold to 3 national home builders for $36.7 million Lots Delivered All 506 lots have been delivered as of Q1-2021 Homes Occupied 214 Homes are occupied by residents Homes Under Construction 87 Homes are under construction at avg of 27 completed per
Slide 11: Total Platted Lots and Lots Under Contract
895 Total Platted Lots Anticipated 789 Lots Under Contract 106 Lots retained for future use | | | 11.
Slide 12: Attached and detached homes
Attached and detached homes (paired duplex and townhomes) will be added on lots sized 32' 45' and Syoy Some will be alley loaded homes 1st Lot Deliveries expected in Winter Adee Projected lot sales and reimbursable expenses $121M December 2020 anticipated date to start grading 12.
Slide 13: Filing 1 and Filing 2 revenues and costs comparison
40m 140M 20m 120M S 100M 100M we & oom om gs < sou con we aon som 20M 2m Q 72600000 0 65590000 Fling 1 Revenues Fling 2 Revenues Fling 2 Costs @ Lotsales @ current Reimbursable @ Future Reimbursements @ Tap Fees © costs Key Comparisons + 50' Lots sold for 40% more + 45' lots sold for 30% more + High
Slide 14: Sky Ranch Master Plan
Sky Ranch Master Plan 400M 400M 3600 Lots * 350M 350M S Ne) et 300M 300M aor® je 250M 250M pe 200M 200M 3600 Lots * 150M 150M 100M 506 Lots 100M 895 Lots 50M 50M 506 Lots 36,674,000 72,600,000 183,738,000 0 | coemmara —_| Filing 1 Revenues Filing 2 Revenues Remaining Revenues Filing 1 Expenses Filin
Slide 15: Water & Wastewater
Water & Wastewater , Metered Water Usage TH Water Assets “a TapFees —§ @WastewaterTreatment = r Industrial Bulk Water 15.
Slide 16: Investment in Water and Tap Sales
Investment in Water and Tap Sales Net Water Assets All major infrastructure is in service to support filing 2 of the Sky Ranch Development Water/WW Tap Fees 2019 2020 2021 64% Growth (Current Rates) 16.
Slide 17: Water Utilities
Water Utilities 5,000 rn 4,500 ad 4,000 / 3,500 EE 3,000 f 2,500 2,000 7,500 WA 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 & Utility Customers @ Projected Monthly Utility Customers 3 ‘i 17.
Slide 18: Sky Ranch Filing
Sky Ranch Filing 2 Start and Contracted Sky Ranch Filing 1 Complete Invested $6.2M Cash of $21.8M into water at year end resources in 2020 All within one of the most challenging environments to operate in. 18.
Slide 19: Balance Sheet
ASSETS: Current Assets: Cash, cash equivalents and investments Land development inventories All other current assets Total current assets Investments in water and water systems, net All other long-term assets Total assets LIABILITIES: Current liabilities: Accounts payable and accrued liabilities (wi
Slide 20: Summary Income Statement Information
TVR 7 WY Summary Income Statement Information ii BY \\\ (000's except per share data) Revenues: Metered water usage Wastewater treatment fees Lot sales Water and wastewater tap fees Other Total revenues Expenses: Water and wastewater service operations Land development construction costs Other Total
Slide 21: Leadership and Board of Directors
Leadership and Board of Directors Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO Harrison H. Augur Peter C. Howell Chairman of the Board* Director and Chairman of the Audit Committee Arthur G. Epker Ill Patrick J. Beirne Director and Chairman of Director the Compensation C
Slide 22: Revenue, Gross Margin, Net Income and Adjusted EBITDA
REVENUE oo) ww Gross Margin cos . Net Income x 6750 8 os ore agro Po age FrEZO16-FYEZ0I7_FYEZO18 FYE 019 FYE 2020 FYE2016 __FYE2OT7 __FYEZOI@__FYEOIO_FYE2020 Fvezo1s FYEz017.-FYEZOIe —FYEZOTS.—_FYE000 @ wow segment (Lond Development @ wrwnwsegment Land development @ Netincome Adjusted EBITDA (acu) E
Slide 23: Contact and Company Information
Contact and Company Information Stock Price Corporate Headquarters: 34501 E. Quincy Ave, BLDG 34, Watkins, CO 80137 Additional information contact info@purecyclewater.com _—— 303-292-3456 www.purecyclewater.com FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020 Follow us on twitter 365 46 665 335 7383 @Pu
Slide 24: Questions?
Questions?