Pure Cycle Corp (NASDAQ:PCYO) Q2 2019 Earnings Conference Call - Final Transcript

Apr 08, 2019 • 01:00 pm ET


Pure Cycle Corp (NASDAQ:PCYO) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and thank you for joining us for this Pure Cycle Corporation Fiscal Year-to-Date and Second Quarter ended February 28, 2019 Earnings Call. As a reminder, today's meeting is being recorded and all participants will remain in a listen-only mode until we are ready for your questions. (Operator Instructions) And now to get it started with opening remarks and introductions, I'm pleased to turn the floor to President and CEO, Mr. Mark Harding. Mr. Harding, the floor is yours.

Mark W. Harding

Thank you very much. And I'd like to welcome you all to our second quarter earnings call. So this earnings call will be for our six-month period ending February 28, 2019. As those of you who have followed the Company we do two earnings call a year, one at year end and then one half year end. So I'm delighted to be able to update you as to, the status of the Company. We do have a slide deck for this presentation. So if you want to follow along with the descriptive part of that, you can log on to our website at purecyclewater.com. If you click over into the investor tab in there, you'll see the presentation in the center of the graphic there and you can click on that, expand that out and that will allow you to kind of track the audio portion of this with some of the descriptive portions that we'll have through this.

I'll try and note the slide transitions as we move along. But for the most part, welcome to our second quarter call. I'll get the lawyers out of the room first. So our Safe Harbor statement that this is really not intended to be guidance or provide historical facts or information. There will be descriptive details that some of which will be the details of our earnings release and some of that will be concepts and plans that the Company is pursuing both within our water utility as well as a development segment.

So with that, we'll go to slide number three, which really -- pardon me, it will detail out really the kind of areas that we generate some revenue. What's new to this year's reporting that many of you will have not seen is kind of we've incorporated an additional segment for our reporting. So in addition to the water utility segment that we have, we also now report our land development segment and we have some exciting developments in that. So we'll detail those out as we come along, but for the most part, at the present -- the Company has a large portfolio of water. So we have about 27,000 acre feet of water. That portfolio of water enables us to provide water service to up to about 60,000 single family connections. We generate revenue from two forms of these to that we get tap fees associated with connecting to our water system and then water usage fees. We have a 930 acre of Master