Pure Cycle Corp (NASDAQ:PCYO) Q1 2020 Earnings Conference Call - Final Transcript

Jan 07, 2020 • 04:00 pm ET


Pure Cycle Corp (NASDAQ:PCYO) Q1 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen and welcome to the Pure Cycle Corporation 2020 First Quarter Financial Results Conference Call. All lines have been placed in a listen-only mode and the floor will be opened for your questions and comments following the presentation. [Operator Instructions]

At this time, it is my pleasure to turn the floor to your host for today, Mr. Mark Harding. Sir, the floor is yours.

Mark Harding

Thanks, Jess. And I'd like to welcome you all to our first quarter earnings call. This is a bit out of cycle for us as we typically usually do two calls a year. But because of the results that we have and kind of the uniqueness of some of these results that I thought it might be important to share some of the color of all of these things and kind of give you an update on what we're doing and where we're headed.

So with that, we do have a slide deck for this. If you move over to -- if you can get over to our website, get over to purecyclewater.com and in the Investor tab, you'll find that there is this slide deck for this presentation. And what I'll try to do is I'll try and note the transition of the slides as we work through the presentation.

So our first slide -- second slide actually, is our Safe Harbor statement where the statements are not historical facts or incorporated in reference to this presentation are forward-looking statements. And I think you're all familiar with our Safe Harbor statement.

I'm going to kind of run through the kind of the Company story because I'm certain that most of you are fairly familiar with the Company and the assets. They're in here. We are a water utility company with a segment that also develops land and we've been developing our Sky Ranch project. We broke ground on that this year and I'm going to give you kind of a lot of color on how that's gone this year, as well as providing water for industrial sales and some oil and gas royalties.

Slide 4 is just a summary of our water utility assets and kind of a depiction on where we're at in our sandbox here in the Denver metro area. We're in sort of the southeast area. And as you can see both in terms of where our assets are located in our service area at the Lowry Range, growth in the metropolitan area has kind of grown out to where all of our assets are. So we find ourselves to be located in the right segment of the metroplex.

Let's drill down specifically to Sky Ranch. So our Master Planned Community is about 930 acres. It's right on the I-70 corridor. It's about 16 miles east of downtown and directly south of the Denver International Airport. We have a mixed-use community. So we have zoning for somewhere around 3,500 homes and that will be a product mix -- a