updated 4/8/2011 4:17:50 PM ET 2011-04-08T20:17:50

DENVER, April 8, 2011 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (Nasdaq:PCYO) announced the following summary results of operations:

Summary Statements

Our summarized approximate results of operations for the six months ended February 28, 2011 and 2010 are as follows:

  Six Months Ended February 28,  
  2011 2010 $ Change
Revenues  $ 124,900  $ 110,800  $ 14,100
Cost of revenues  (75,300)  (80,000)  4,700
Gross margin  49,600  30,800  18,800
Operating expenses:      
General and administrative  (1,188,600)  (940,200)  (248,400)
Other  (106,200)  (149,300)  43,100
Loss from operations  (1,245,200)  (1,058,700)  (186,500)
Other (expense) income:      
Interest on TPF and Convertible Debt  (2,045,700)  (1,782,000)  (263,700)
Other  49,100  47,700  (49,100)
Net loss  $ (3,241,800)  $ (2,793,000)  $ (499,300)
       
Weighted average shares outstanding (basic and diluted)  22,284,899  20,206,566  
Loss per share  $ (0.15)  $ (0.14)  

Our summarized approximate financial position as of February 28, 2011 and August 31, 2010 is as follows:

  February 28, 2011 August 31, 2010 $ Change
Assets      
Cash, cash equivalents and marketable securities  $ 4,370,400  $ 1,446,100  $ 2,924,300
Other current assets  313,400  373,500  (60,100)
Total current assets  4,683,800  1,819,600  2,864,200
Investments in water and water systems, net  106,538,000  102,931,300  3,606,700
Land - Sky Ranch  3,739,000  –   3,739,000
Other long-term assets  954,100  1,626,900  (672,800)
Total assets  $ 115,914,900  $ 106,377,800  $ 9,537,100
       
Liabilities and Shareholders' Equity      
Current liabilities  $ 291,200  $ 171,300  $ 119,900
Tap participation fee payable to HP A&M  63,035,300  61,141,300  1,894,000
Other long-term liabilities  2,576,400  2,605,200  (28,800)
Total liabilities   65,902,900  63,917,800  1,985,100
Total shareholders' equity   50,012,000  42,460,000  7,552,000
Total liabilities and shareholders' equity  $ 115,914,900  $ 106,377,800  $ 9,537,100

Summary of Significant Events and Changes

Revenues increased approximately 13% during the six months ended February 28, 2011 compared to the six months ended February 28, 2010 mainly due to increases in water and wastewater monthly fees which were effective July 1, 2010. 

General and administrative expenses increased approximately 26% mainly due to increased consulting and professional service fees related to ongoing discussions with the State Land Board and the City of Aurora, fees and expenses that were not capitalized as part of our acquisition of the Sky Ranch property (see our Form 10-Q for the six months ended February 28, 2011 for more details), and the payment of approximately $180,000 of bonuses for the successful completion of the Sky Ranch acquisition and related financings. 

During the six months ended February 28, 2011, we expensed approximately $151,700 of interest on a $5.2 million convertible note that we issued in September 2010, which was part of the financing of the Sky Ranch land and water acquisition. Interest on this ceased on January 11, 2011, when we issued 1,982,099 shares of restricted common stock upon the conversion of the note (approved by our shareholders at the January 11, 2011 Annual Shareholders' Meeting). 

Levels of cash, cash equivalents and marketable securities increased as a result of the stock issuance and issuance of the $5.2 million convertible note, which was offset by our acquisition of Sky Ranch and use of cash for operations during the six months ended February 28, 2011. 

Earnings Call

We will be hosting an earnings call to discuss our mid-year results. Call details are below. Consistent with prior periods, 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 .

Call Information  
   
Date: Tuesday April 12, 2011
Time: 2:00 PM Mountain (4:00 PM Eastern)
Call in: (877) 377-7104

A replay of the call will be available until April 18, 2011 by calling 1-800-642-1687.

Company Information

Pure Cycle owns water assets in several river basins in the State of Colorado as well as certain aquifers in the Denver, Colorado metropolitan area. Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area including the design, construction, operation and maintenance of water and wastewater systems.

Additional information including our recent press releases and Annual Reports are available at www.purecyclewater.com , or you may contact our President, Mark W. Harding, at 303-292-3456 or at info@purecyclewater.com.

CONTACT: Mark W. Harding, President
         303-292-3456 
         info@purecyclewater.com

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