Denver, CO based Pure Cycle Corporation (PCYO) posted break-even results in the first quarter of fiscal 2015 (ended Nov 30, 2014) as against the Zacks Consensus Estimate of a loss of 1 cent. The company had posted a loss of 4 cents per share in the first quarter fiscal 2014.
Total Revenue
In the fiscal first quarter, Pure Cycle’s total revenues of $0.83 million fell short of the Zacks Consensus Estimate of $1.0 million by 16.6%.
However, on a year-over-year basis, quarterly revenues improved 44.1% from $0.6 million. Revenues surged on the heels of increased revenue from industrial water used for fracking.
Operational Update
Total operating expenses increased 7.5% year over year to $0.68 million, primarily due to a 4.5% increase in general and administrative expenses and a surge of 128.4% in other expenses.
Pure Cycle reported a loss from operations of $0.07 million in the first quarter fiscal 2015, much narrower than the year-ago loss of $0.24 million.
In the fiscal first quarter, the company’s other income increased to $0.17 million from $0.11 million a year ago.
Financials
As of Nov 30, 2014, Pure Cycle had cash and cash equivalents of $1.9 million compared with $1.7 million as of Aug 31, 2014.
Other long-term liabilities as of Nov 30, 2014, were $6.7 million, up from $5.9 million as of Aug 31, 2014.
Zacks Rank
Pure Cycle currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the water utility space include Connecticut Water Service Inc. (CTWS), American States Water Company (AWR) and American Water Works Company, Inc. (AWK). While Connecticut Water sports a Zacks Rank #1 (Strong Buy), American States Water and American Water Works carry a Zacks Rank #2 (Buy).
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