Slide 1: Earnings presentation for the year ended August 31, 2021
PURE CYCLE CORPORATION ae fa nest as Ay Lee Earnings presentation for the year ended August 31, 2021 Water & Wastewater Development Development
Slide 2: Forward-looking statements
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 of the Securities Excha
Slide 3: We operate multiple complementary segments
WE OPERATE MULTIPLE COMPLEMENTARY SEGMENTS Driving value for stakeholders with land and water investments 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 + De
Slide 4: Follow us on Twitter
Follow us on Twitter @purecyclecorp
Slide 5: Wholesale water and wastewater
WHOLESALE WATER AND WASTEWATER Principal business interests are to deliver wholesale water and wastewater service WELLS/DIVERSION 6 Large water portfolio in water-short Denver BUILD Company owns or controls 29,000+ acre feet of groundwater & surface water which I we estimate can serve 60,000 taps On
Slide 6: Water infrastructure
WATER INFRASTRUCTURE 29,500 Acre-Feet of Water Rights 11 15 Groundwater Miles of Wells Distribution 2 Million Gallons of Water Storage Pipeline 3 Alluvial Wells 20 Miles of Transmission 150 Acre-Feet of Surface Pipeline Storage 2 Wastewater Reclamation Facilities Own or control over 29,000 acre-feet
Slide 7: Water Services
Water Services Growth from: New Residential New service customers added with every neighborhood Avg. residential customer generates $1,500 per year in revenue New Commercial Future Sky Ranch commercial phases Existing Residential Elbert and hwy 86 Residents Existing Commercial Elbert and Hwy 86 comm
Slide 8: Development encroachment to Lowry Range
DEVELOPMENT ENCROACHMENT TO LOWRY RANGE ON NPicadity Ra View looking north of development encroachment on Lowry Range exclusive Service Area Ke jes Ra. M.Watking Rd | | E inspiration Dy
Slide 9: Investment in Water and Tap Sales
Investment in Water and Tap Sales All major infrastructure is in service Water/WW Tap Fees to support phase 2 of the Sky Ranch Development Water Assets (Net) In millions $3,544,700 $5,641,000 $5,162,108 2019 2020 (2021 @ $sold
Slide 10: Sky Ranch capacity and location
+ Can accommodate up to 3,200 residential lots + Can Accommodate up to 2 million square feet of commercial development (1,800 SFE's) - 15 miles east of downtown Denver and 4 miles south of DIA 10.
Slide 11: Sky Ranch - Phase 1
SKY RANCH - PHASE 1 + All lots delivered (509) + Approximately 375 residents + 467 of 509 Taps Sold + Estimated that homes will be fully sold out by the end of Q2-2022 + Received $10.5 million of reimbursables and recorded more than $20M in receivables including project management fees and related i
Slide 12: Sky Ranch - Phase 2 Overview
SKY RANCH - PHASE 2 OVERVIEW + 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 expected to be delivered late calendar 2021 + Estimated lot revenues of $70 million + Estimated tap
Slide 13: Sky Ranch Phase 2 financial and quantitative data
SKY RANCH PHASE 2 Financial And Quantitative Data Subphase 1 (229 LOTS) | | Subphase 2 (211 LOTS) LotRevenue $ 184m LotRevenue $ = 17.0m Tap Revenue 5.6m Tap Revenue 5.2m Total lot costs (20.1m) Tota Lot costs (8.3m) Reimbursable* 16.7m Reimbursable* 15.2m GROSS MARGIN $ 206m || GROSSMARGIN $ 19.1m
Slide 14: 1st sub-phase of 2nd development phase
Ist SUB-PHASE OF 2nd DEVELOPMENT PHASE LOT CLOSING DASHBOARD Takedown! “%, Takedown 2 “4%, Takedown 3 “¢7,, Total © DATE — 8/25/2021 DATE — 11/30/2021 DATE = — 7/31/2022 AMOUNT $ 3,846,000 AMOUNT $ 3,721,000 AMOUNT $ 10,850,000 $ 18 417.000 BUILDERS 3 BUILDERS 3 BUILDERS 4 as LDAPHASE Plated Lots LO
Slide 15: Single-family rental 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 experienced home builders to construct these houses, which Pure Cycle will own and maintain, taking on a new role as property manager. "The single-f
Slide 16: Market Watch
Market Watch Steady increase in lease price while other rental types fell Detached and Townhomes, are more affordable per square foot and per bedroom Detached homes spend less days on market on average then other types rental units nch Phase 1 + Rented first 3 homes above the average market price +
Slide 17: Rental Income
Rental Income 2 Operations, repairs and maintenance Property taxes and insurance Interest expense Cash flow $ Pro Forma Pro forma Single house Single house Monthly Annualized 2,820 $ 33,840 150 1,800 400 4,800 950 11,400 1,320 $ 15,840 Assumptions + Rental income is the average actual monthly lease
Slide 18: Per house estimates
PER HOUSE ESTIMATES Financed costs Fair market value Capitalized costs $342K $317K $547K Assumptions + Flexible debt usage, up to 70% of appraised value + Low cost capital (3.75%) + House appraisal value estimated at $547,000 based on homes sold in Sky Ranch per NMLS + Annual appreciation estimated
Slide 19: Phase 1-3 rental homes
PHASE 1-3 RENTAL HOMES : March 2021 May 2021 The project is on track to confirm original forecasts for Phase 1 and the next phase of 46 BTR homes with the potential to expand to 100+" - Kevin McNeill, CFO June 2021 November 2021 Cc Approval to start date —_ Utilities complete & vertical Final stages
Slide 20: Southern Wattenberg Niobrara
Southern Wattenberg Niobrara. More than 200 square miles in Adams & Arapahoe Counties ey) cottar-Ave SS ce Na 2 z i 3 : if 2 Five Possible Formations 7 Air Base Pad Development: 40 Acre spacing | s E Jowell Ave 3 16 wells/mile formation \§ 4 ae hates | || E-duincy Avo lL ; ‘balled Over 10,000 well c
Slide 21: Fiscal year 2021 highlights
2021 Completed Sky Above Market Ranch Phase 1 Employee Retention Phase 1 of Sky Continued growth Ranch is despite COVID-19 substantially and shutdown from 2020 roughly 95% to date occupied FISCAL YEAR Launched new rental line of Business Planned and executed the creation of our single-family home re
Slide 22: Fiscal year ended August 31, 2021
FISCAL YEAR ENDED AUGUST 31, 2021 Revenue Gross Margin Net Income* s26m. 2M 26M | 20M 320m om som am S-2m FYE2017 -FYE2018 «= -FYE2019«—FYE2020.«— FYE 2021 FYE2017-FYE2018 -FVE2019——«~FYE2020.~—~FYE2021 FYE2017FYE2018 —~FYE2019 —«~FYE2020.——~FYE2021 Net Income @ www segment @ Land Development @ weww
Slide 23: Condensed consolidated balance sheets
CONDENSED CONSOLIDATED BALANCE SHEELS (In thousands, except share and per share amounts) ASSETS: Current assets: | Cashand cash equivalents 20 $2,797 ‘Trade accounts receivable, net 1,532 1,124 Land. t inventories 608 481 i i : | i a ic land investment “451 431 Total assets s W777 s 39,761 LD Ln a |
Slide 24: Consolidated statement of operations and comprehensive income
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME i | : @ a4 f 2 fee i i A i 723 7, iation 31: 356) net 196 247 40 ion of public k . p p P os 17 a es i i i i 5 20.0 $ 0) fa 3 20,10 $ z q EB on ost § 0.28 iHir i 24111 24,062
Slide 25: Leadership and board of directors
LEADERSHIP AND BOARD OF DIRECTORS Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO Patrick J. Beirne Peter C. Howell Jeffrey G. Sheets Chairman of the Board Director and Chairman of Director and Chairman of the the Audit Committee Nominating and Governance Committee Arthur G
Slide 26: Contact and company information
CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS 34501 E. Quincy Ave, BLDG 34, Watkins, CO 80137 CONTACT INFO info@purecyclewater.com 303-292-3456 www.purecyclewater.com Follow us on twitter @PureCycleCorp y STOCK INFO Ticker symbol (NASDAQ Capital Market): PCYO Shares outstanding: 23.9 millio