PICO Holdings, Inc. Announces Closing of the Sale of 100,000 Long Term Storage Credits in Arizona for Gross Proceeds of $25 M...
07 February 2017 - 10:00PM
PICO Holdings, Inc. (NASDAQ:PICO) announced today that its
wholly-owned subsidiary, Vidler Water Company, Inc. has closed on
two sales totaling 100,000 Long Term Storage Credits stored in the
Phoenix Active Management Area of Arizona to the Arizona Water Bank
Authority and the Central Arizona Groundwater Replenishment
District. Vidler received aggregate gross proceeds of $25
million from the sales. The Company will record the transactions
during the first quarter of 2017 and as a result, expects to report
income before taxes of approximately $12.5 million related to the
sales.
Additionally, the Company announced that it has
received final sale proceeds of $6 million that had been held in
escrow in connection with the sale of its canola seed crushing
plant and operations in 2015.
About PICO Holdings, Inc.
PICO Holdings is a diversified holding company.
Currently, we believe the highest potential return to shareholders
is from a return of capital to shareholders. As we monetize
assets, rather than reinvest the proceeds, we intend to return the
capital derived therefrom, less any working capital requirements,
back to shareholders through a stock repurchase program or by other
means such as special dividends taking into effect liquidity
requirements, debt covenants and any other contractual and legal
restrictions that may exist at the time.
As of September 30, 2016, our two major
investments were:
- Vidler Water Company, Inc., a water resource development
business; and
- a 56.9% interest in UCP, Inc. (NYSE: UCP), a publicly-traded
homebuilder and land developer in markets located in California,
Washington State, North Carolina, South Carolina and
Tennessee.
OTHER INFORMATION
At September 30, 2016, PICO Holdings, Inc. had
a market capitalization of $272 million, and 23,069,381 shares
outstanding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Statements in this press release that are not
historical, including statements regarding our business objectives,
our income before taxes related to the sales, our ability to return
a substantial portion of the proceeds from the sales to
shareholders and the timing thereof, and our ability to monetize
assets and return capital to shareholders through stock repurchases
or through other means, are forward-looking statements based on
current expectations and assumptions that are subject to risks and
uncertainties.
In addition, a number of other factors may cause
results to differ materially from our expectations, such as: any
slow down or downturn in the housing recovery or in the real estate
markets in which UCP and Vidler operate; 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 businesses; 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 Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q, copies of which may be obtained by contacting
us at (858) 456-6022 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 date of this press release.
This news release was distributed by GlobeNewswire,
www.globenewswire.com.
CONTACT:
Max Webb
Chairman and Chief Executive Officer
PICO Holdings, Inc.
(858) 652-4114
UCP, Inc. (NYSE:UCP)
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