PICO Holdings, Inc. Announces Water Asset Monetizations
30 Agosto 2019 - 7:07PM
Business Wire
PICO Holdings, Inc. (NASDAQ:PICO) announced today that its
wholly owned subsidiary, Vidler Water Company Inc., (“Vidler”) has
closed or anticipates it will shortly close three separate sales of
water assets from Vidler’s strategic water asset portfolio.
In Nevada, a gold mining company exercised its option to
purchase 470 acre-feet of Vidler’s water rights in Dodge Flat,
northern Nevada for approximately $3 million.
In addition, during the third quarter of 2019, Vidler’s 51%
owned subsidiary, Fish Springs Ranch, LLC sold approximately 11.6
acre-feet of its water rights for approximately $405,000 to a
multi-family development and commercial entity in the North Valleys
area of Reno, Nevada.
In Colorado, Vidler entered in to an agreement with the City of
Golden for the sale of approximately 26 acre-feet of its water
rights for approximately $590,000. Closing is expected by the end
of the third quarter of 2019.
PICO’s President and Chief Executive Officer, Dorothy Timian -
Palmer, commented:
“We noted in our 2019 Second Quarter Earnings Release that we
continue to execute our business plan by monetizing assets,
returning capital to shareholders and reducing costs. In the third
quarter of 2019 to date, we have continued on this path with these
separate sale transactions in the Southwest. We believe these
transactions highlight the continued need for communities and
enterprises in the arid Southwest to secure their water
requirements so that they may successfully execute on their
business plans or prepare for sustainable future growth. We also
believe our remaining portfolio of water assets in Nevada, Arizona,
Colorado and New Mexico, which are the result of long-term
investments by Vidler, are well placed to provide other entities
and communities in the Southwest with long - term sustainable
solutions to their water resource requirements and related
issues."
Net Operating Loss Carryforwards
At December 31, 2018, we had approximately $170.1 million of
(pre-tax) federal net operating loss carryforwards, (“NOLs”) that
could be utilized in certain circumstances to offset PICO’s taxable
income and reduce its federal income tax liability. Additional
information with respect to these NOLs is contained in our 2018
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (“SEC”).
About PICO Holdings, Inc.
As of June 30, 2019, our primary holding was Vidler, a water
resource and water storage business with assets and operations
primarily in the Southwest U.S.
Currently, we believe the highest potential return to our
shareholders is from a return of capital. As we monetize assets,
rather than reinvest the proceeds, we intend to return capital to
shareholders through a stock repurchase program or by other means,
including special dividends. Nonetheless, we may, from time to
time, reinvest a portion of proceeds from asset monetizations to
further develop existing assets, if we believe the return on such a
reinvestment outweighs the benefits of a return of capital.
OTHER INFORMATION
At June 30, 2019, we had a market capitalization of $233.1
million, and 20,062,023 shares outstanding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release that are not historical,
including statements regarding our business objectives, our ability
to monetize our water resources, the future demand for our water
resources, our ability to preserve and utilize NOLs to offset
taxable income and reduce our federal income tax liability, and our
ability to monetize assets and return capital to shareholders
through stock repurchases or other means, are forward-looking
statements based on current expectations and assumptions and are
subject to risks and uncertainties.
In addition, a number of other factors may cause results to
differ materially from our expectations, including without
limitation, any slow down or downturn in the housing or real estate
markets in which Vidler operates; fluctuations in the prices of
water and water rights; physical, governmental and legal
restrictions on water and water rights; a downturn in some sectors
of the stock market; general economic conditions; prolonged
weakness in the overall U.S. and global economies; the performance
of the business sectors in which Vidler operates; the continued
service and availability of key management personnel; and potential
capital requirements and financing alternatives.
For further information regarding risks and uncertainties
associated with our business, please refer to the “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” and “Risk Factors” sections of our SEC filings,
including our 2018 Annual Report on Form 10-K and our 2019
Quarterly Reports on Form 10-Q, copies of which may be obtained by
contacting us at (775) 885-5000 or at
http://investors.picoholdings.com.
We undertake no obligation to (and we expressly disclaim any
obligation to) update our forward-looking statements, whether as a
result of new information, subsequent events, or otherwise, in
order to reflect any event or circumstance which may arise after
the date of this press release, except as may otherwise be required
by law. Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the time and
date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190830005448/en/
Dorothy Timian-Palmer President and Chief Executive Officer PICO
Holdings, Inc. 775-885-5000
PICO (NASDAQ:PICO)
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