Item 5. Market for Registrant’s Common Equity
Item 5 – Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common stock is traded on The NASDAQ Stock Market under the symbol “PCYO.”
Holders
On October 29, 2020, there were 772 holders of record of our common stock.
Dividends
We have never paid any dividends on our common stock and expect for the foreseeable future to retain all of our capital and earnings from operations, if any, for use in expanding and developing our water and land
development businesses. Any future decision as to the payment of dividends will be at the discretion of our board of directors and will depend upon our earnings, financial position, capital requirements, plans for expansion and such other factors
as our board of directors deems relevant. The terms of our Series B Preferred Stock prohibit payment of dividends on common stock unless all dividends accrued on the Series B Preferred Stock have been paid and require dividends to be paid on the
Series B Preferred Stock if proceeds from the sale of Export Water exceed $36,026,232. For further discussion, see Note 8 – Shareholders’ Equity to the accompanying consolidated financial statements.
Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
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Item 6 – Selected Financial Data
Selected Financial Data Table
In thousands (except per share data)
For the Fiscal Years Ended August 31,
2020
2019
2018
2017
2016
Summary Statement of Operations Items:
Total revenue
$
25,855.2
$
20,361.5
$
6,959.2
$
1,227.8
$
452.2
Income (loss) before taxes
$
8,919.1
$
3,528.0
$
132.7
$
(1,678.8
)
$
(1,230.3
)
Net income (loss)
$
6,750.4
$
4,811.1
$
414.7
$
(1,710.9
)
$
(1,310.6
)
Basic income (loss) per share
$
0.28
$
0.20
$
0.02
$
(0.07
)
$
(0.06
)
Diluted income (loss) per share
$
0.28
$
0.20
$
0.02
$
(0.07
)
$
(0.06
)
Weighted-average basic shares outstanding
23,845
23,795
23,760
23,754
23,781
Weighted-average diluted shares outstanding
24,062
24,003
23,930
23,754
23,781
As of August 31,
2020
2019
2018
2017
2016
Summary Balance Sheet Information:
Current assets
$
25,991.2
$
23,537.7
$
27,918.2
$
27,124.3
$
29,085.9
Total assets
$
89,761.1
$
83,721.4
$
71,906.6
$
69,787.6
$
70,879.6
Current liabilities
$
6,218.6
$
8,297.2
$
2,054.0
$
940.2
$
482.2
Long-term liabilities
$
1,498.6
$
693.1
$
399.4
$
1,341.3
$
1,399.5
Total liabilities
$
7,717.2
$
8,990.3
$
2,453.4
$
2,281.5
$
1,881.7
Shareholders’ equity
$
82,043.8
$
74,731.1
$
69,453.2
$
67,506.1
$
68,997.9
The following items had a significant impact on our operations:
(a)
In fiscal 2020, due to land development activities at Sky Ranch, we recognized $18.9 million in revenue from lot sales and $5.7 million in revenue from the sale of water and wastewater taps. Our revenue from water sales decreased by
78% to $1.0 million primarily related to the decline in the demand for industrial water sales, and we recorded a non-cash long-lived asset impairment charge of $1.4 million on our mineral rights in the Arkansas Valley, Colorado, in both
cases due to the drop of the price of crude oil as a result of increased world-wide production and lower demand because of the COVID-19 pandemic and related shelter-in-place and stay-at-home orders. We invested $8.0 million in our land,
water and wastewater systems, including $1.9 million for the wastewater facility at Sky Ranch, $586,400 for the purchase of equipment, and $8.5 million in costs related to the development of our Sky Ranch property. During fiscal 2020, we
had net sales or maturities of marketable securities of $5.2 million. In addition, we received $10.5 million as partial reimbursement for advances we made to the Sky Ranch CAB to fund the construction of public improvements at the Sky
Ranch property. Of the $10.5 million we received, $6.3 million was recognized in Other income and the remaining $4.2 million partially reduced the remaining capitalized costs in Land development i nventories .
(b)
In fiscal 2019, due to land development activities at Sky Ranch, we recognized $12.0 million in revenue from lot sales and $3.4 million in revenue from the sale of water and wastewater taps. Our revenue from water sales increased by 2%
to $4.7 million primarily related to industrial water sales. We invested $14.1 million in our water and wastewater systems, including $8.1 million for the wastewater facility at Sky Ranch and $3.5 million for a water right and land
acquisition, $354,000 for the purchase of equipment and $17.7 million in costs related to the development of our Sky Ranch property. During fiscal 2019, we had net sales or maturities of marketable securities of $3.7 million. In addition,
we released our valuation allowance on our net deferred tax assets and recognized a deferred tax benefit of $1.3 million.
(c)
In fiscal 2018, we invested $1.1 million in our water and wastewater systems, $1.8 million for the construction of pipelines, $5.3 million related to the development of our Sky Ranch property, and $445,400 for the purchase of
equipment. During fiscal 2018, we had net sales or maturities of marketable securities of $11.4 million. Our revenue from water sales increased by 452% to $4.6 million primarily related to industrial water sales. In addition, we began
construction at Sky Ranch and recognized $2.1 million in revenue from platted lot sales under the percentage-of-completion method.
(d)
In fiscal 2017, we invested $2.5 million in our water and wastewater systems, $4.4 million for the construction of pipelines, $0.9 million related to development of our Sky Ranch property, and $95,400 for the purchase of equipment.
During fiscal 2017, we had sales or maturities of marketable securities of $9.8 million.
(e)
In fiscal 2016, we invested $923,800 in our water and wastewater systems and $285,600 for planning and design of our Sky Ranch property. We also purchased land for $450,300 in the Arkansas River Valley in Southeastern Colorado.
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