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| 8-K - FORM 8-K FOR ANNUAL SHAREHOLDER MEETING PRESENTATION - VIDLER WATER RESOURCES, INC. | form8-kforasmslidedeck.htm |
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Photo by Jean-Pierre Lavoie
ANNUAL MEETING OF SHAREHOLDERS
JULY 11, 2016
NASDAQ:PICO
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SAFE HARBOR STATEMENT
This presentation contains forward-looking statements made pursuant to the “safe
harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements often address current expected future business and financial
performance, including the demand and pricing of PICO’s real estate and water assets,
and may contain words such as “expects,” “anticipates,” “intends,” “plans,“ “believes,”
“seeks,” or “will”. All forward-looking statements included in this presentation are
based on information available to PICO as of the date hereof, and PICO assumes no
obligation to update any such forward-looking statements. Actual results could differ
materially from those described in the forward-looking statements. Forward-looking
statements involve risks and uncertainties, including, but not limited to, economic,
competitive and governmental factors outside of our control, that may cause our
business, industry, strategy or actual results to differ materially from the forward-
looking statements. Factors that could cause or contribute to such differences include,
but are not limited to those discussed in detail under the heading “Risk Factors” in
PICO’s periodic reports filed with the U.S. Securities and Exchange Commission.
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VIDLER
WATER COMPANY
Update
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RENO HOUSING UPDATE
• 1Q16 quarterly new home starts 26% higher than 1Q15, highest first quarter
since 2007
• New home closings numbered 1,729 in 1Q16, 4.4% more than 1Q15
• 1 month supply of finished vacant single family homes
• Under construction homes has increased 40% since last year
• 26 months of finished and vacant single family lot inventory; Washoe County
has 14 months of inventory
• Affordability remains a concern - 1Q16 37% of new home starts priced below
$300K up from 33% last year; builders trying to provide low priced homes
Data from: Metrostudy, a Hanleywood Company
Reported by: Northern Nevada Business Weekly
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Economic Development Authority of Western Nevada
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NORTH VALLEYS – DEMAND
• Pending projects identified by a University of Nevada study total 20,989± Single
Family Units (SFU), approximately 7,600 acre-feet.
Does not
include
Industrial &
Commercial
Demands
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NORTH VALLEYS EXPECTED TRANSACTION SCHEDULE
Development Single Family Units
Commercial/
Industrial Acres
Date Estimated for
Contract
Estimated Water
Usage (AF)
1 680/1,300 Nov-16/Mar-17 249/470
2 454 May-17 163
3 913 May-17 329
4 3,800 (336+MF) 235 May-18 2,026
5 1,300 May-18 470
6 324 342 May-18 300
7 1,600 May-18 449
8 5,679 62 May-18 2,612
9 1700 Mar-18 200
10 3,529 Jan-18 1,270
TOTAL 8,068 / 8,289
Based on discussions with area developers: represents best estimate at July, 2016
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DAYTON VALLEY – DEMAND
• Projects identified by a University of Nevada study total 13,308± Single Family
Units (SFU) needing water rights (Dayton-5,832 SFU, Mark Twain-7,476 SFU).
Approximately 6,700 acre-feet required.
Does not include
Industrial &
Commercial
Demands
Does not include
Municipal Demand
in Stage coach
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NORTHERN NEVADA - PROXIMITY MAP
VIDLER PARCELS
PENDING PROJECTS
FUTURE DEVELOPABLE PROPERTY
WASHOE
TURF FARM PROJECT
DODGE FLAT
RENO
SPARKS
FERNLEY
DAYTON
CARSON
950 RANCH
NORTH VALLEYS
STOREY
LYON
DOUGLAS
CARSON
SPANISH
SPRINGS
SUN
VALLEY
SILVER
SPRINGS
LEMMON
VALLEY
FSR PIPELINE
INTERTIE
USA PARKWAY
COMPLETED
USA PARKWAY
TO BE COMPLETED
BY 12-2017
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Lower Basin Drought
Contingency Proposal
(Requires Legislation)
*Minute 319 reductions extend through 2017. Assume reductions continue in Minute 32X.
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Lake Mead at Hoover Dam – March 2nd 2016
1221 Full Pool Elevation
1084.2 March 2nd 2016
1153 November 2002
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Lake Mead at Hoover Dam – May 19th 2016
1221 Full Pool Elevation
1074.5 May 19th 2016
1153 November 2002
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CORPORATE
Update
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COST SAVINGS
• Cost savings over the last year approximately $2.3 million per annum
(current cash overhead for Corporate & Vidler approximately $11 million per
annum from 2Q 2016)
• Estimated future annual cost savings anticipated to be up to $1.5 million
over the course of the next 12 months (reduction of total Corporate & Vidler
cash overhead to approximately $9.5 million per annum)
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Q. & A.