Denver, CO based Pure Cycle Corporation PCYO posted break-even results in the second quarter of fiscal 2015 (ended Feb 28, 2015). The Zacks Consensus Estimate was 1 cent. The company had posted a loss of 2 cents per share in the second quarter of fiscal 2014.
The year-over-year improvement can be attributed to the monetization of water assets and commencement of production in two oil wells.
Total Revenue
In the fiscal second quarter, Pure Cycle’s total revenues of $0.66 million fell short of the Zacks Consensus Estimate of $1.0 million by 34.3%.
Even on a year-over-year basis, quarterly revenues dropped 10.8%. Revenues declined on account of decreased metered water usage and farm operations revenues compared with the prior year.
Operational Update
Total operating expenses decreased 4.6% year over year to $0.66 million, primarily due to a 10.5% decline in general and administrative expenses.
Pure Cycle incurred an operating loss of $0.18 million in the second quarter fiscal 2015, wider than the year-ago loss of $0.14 million.
In the fiscal second quarter, the water utility’s interest expense increased to $0.08 million from $0.06 million a year ago.
Financials
As of Feb 28, 2015, Pure Cycle’s cash and cash equivalents declined to $0.83 million from $1.7 million as of Aug 31, 2014.
Other long-term liabilities as of Feb 28, 2015, were $7.7 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 The York Water Company YORW, American States Water Company AWR and California Water Service Group CWT. While The York Water sports a Zacks Rank #1 (Strong Buy), American States Water and California Water carry a Zacks Rank #2 (Buy).
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