DENVER, Nov. 12, 2010 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (Nasda:PCYO) announced the following summary results of operations:
Increases in fiscal 2010 revenues were mainly attributable to increases in water usage and wastewater monthly fees effective July 1, 2010. These increases were offset partially by decreased water usage at our largest customer as a result of its closing of student housing facilities. Due to our ability to actively manage our expenditures, including energy costs, our gross margin increased 2% in 2010 following a decline of 4% from 2008 to 2009 as a result of the decreased water usage.
Our general and administrative expenses ("G&A expenses") decreased approximately 7% as a result of cost reduction efforts undertaken by management in light of the weakened economy, particularly in the housing market, and delays in development within our service areas. Specifically, we reduced the level of outside legal and other professional services. More specific details of the decreases in our G&A expenses are included in our Form 10-K which was filed with the Securities and Exchange Commission on November 12, 2010.
Our Tap Participation Fee ("TPF") expense consists of fees due and payable once we have sold a water tap and received the consideration due for such water tap. The Tap Participation Fee liability, which is included in our summarized statement of financial position below, represents the fair value of the estimated amounts payable to HP A&M as a result of the assets we acquired from HP A&M in 2006. The increase in the liability is due to the imputed interested.
Our summarized financial position as of August 31, 2010 and 2009 is as follows:
Levels of cash, cash equivalents and marketable securities have declined due mainly to the use of cash in operations. Our August 31, 2010 cash balance was also impacted by our $700,000 escrow payment related to the Sky Ranch acquisition which was announced on August 4, 2010. Reference is made to the Management's, Discussion and Analysis section of our August 31, 2010 Form 10-K for further information on cash used by operations. Subsequent to August 31, 2010, we completed the sale of approximately $5.5 million of common stock and the issuance of a convertible note with a principal amount of $5.2 million. Approximately $6.3 million of the $10.7 million we raised subsequent to August 31, 2010, was used to complete our acquisition of the Sky Ranch property, which is described in greater detail in our Form 10-K. The remaining $4.4 million will be used for general corporate working capital purposes.
We will host a conference call to discuss these results and current events on Tuesday November 16, 2010 at 2PM Mountain (4PM Eastern). Details of the call are below. Additionally, we have posted two slide presentations with additional information on our website at . A replay of the call will be available until November 23, 2010.
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 , or you may contact our President, Mark W. Harding, at 303-292-3456 or at email@example.com.
CONTACT: Pure Cycle Corporation Mark W. Harding, President 303-292-3456 firstname.lastname@example.org