Development and Infrastructure - The company has developed 1,395 finished lots and constructed water and wastewater systems with the capacity to serve approximately 2,500 residential equivalent units[15]. - The Sky Ranch development is zoned for up to 3,200 single-family and multifamily homes, along with over two million square feet of retail, commercial, and light industrial space[11]. - The company is actively involved in land development, having acquired approximately 930 acres of land along the I-70 corridor, with ongoing phases of development to optimize infrastructure delivery[20]. - The company has delivered 949 finished lots to homebuilders at Sky Ranch, with 228 lots under construction for delivery in fiscal 2025 and an additional 218 lots scheduled for fiscal 2026[21]. - The company has completed a wastewater reclamation facility at Sky Ranch, costing $10.2 million, with a capacity to serve over 2,000 homes before requiring expansion[72]. - The company has installed over 23 miles of water delivery and wastewater collection infrastructure at a cost of $7.9 million, which is reimbursable by the Sky Ranch CAB[74]. - The company expects full development of the Sky Ranch Master Planned Community to take another eight to ten years, depending on market conditions[73]. - The company is developing approximately 930 acres of land as a Master Planned Community known as Sky Ranch, where it will be the exclusive provider of water and wastewater services[65]. Water Resources and Services - The company has a competitive advantage by controlling both land development and water resources, allowing for efficient infrastructure development[14]. - The company owns water rights that allow it to serve an estimated 60,000 SFEs, enhancing its competitive advantage in a water-scarce region[18]. - The company provides wholesale water and wastewater services to local governmental entities, with the largest customer being the Rangeview Metropolitan District, serving over 1,400 single-family equivalent (SFE) water connections and more than 952 SFE wastewater connections as of August 31, 2024[18]. - The company is focused on providing sustainable and environmentally friendly water services to meet customer demands[5]. - The company anticipates increased demand for water services due to population growth in the Denver metropolitan area and the South Platte River basin[5]. - The company is well positioned to assist over 70 water providers along the Colorado Front Range in meeting their current and future water needs[87]. - The company has a total of 29,924 acre-feet of water assets, including 25,054 acre-feet of groundwater and 4,200 acre-feet of surface water[27]. - The Rangeview Water Supply consists of 26,924 acre-feet of tributary surface water and non-tributary groundwater, along with approximately 26,000 acre-feet of reservoir capacity[28]. Financial Performance and Projections - Future revenue is expected to increase from the development of the Sky Ranch property, with anticipated financial results including increases in customers and revenue[5]. - The company anticipates ongoing recurring rental income from its single-family rental homes, contributing to its balance sheet and diversifying revenue streams in a growing housing market[24]. - The company has raised over $76 million since 2004, including $25 million from common stock issuance and $5.2 million from convertible debt[131]. - The total sales price for the 792 lots sold and to be sold in Phase 2 is approximately $69.9 million, with Phase 2A lots priced at $18.4 million and Phase 2B lots at $17.3 million[69]. - The company sold 69 and 90 water and wastewater taps at Sky Ranch in fiscal 2024 and 2023, generating $2.6 million and $2.7 million in tap fees respectively[93]. - For Phase 2 of the Sky Ranch development, the company invested $18.8 million in fiscal 2024, with expectations of generating $19.8 million in additional tap fee revenue over the next three years[93]. Market Conditions and Risks - The company is dependent on the housing market and development in targeted service areas for future revenue, with potential adverse effects from economic conditions in Colorado[123]. - The residential homebuilding industry is cyclical, and recent rising interest rates have weakened demand for new home starts in Colorado[125]. - The company faces significant competition in land development, which may pressure pricing and affect business results[126]. - The company’s water business is subject to seasonal fluctuations and weather conditions, which could impact demand and revenue[129]. - Increased operating costs due to inflation and supply chain disruptions may adversely affect margins and financial performance[128]. - The company may struggle to attract and retain qualified personnel necessary for managing expanded operations and regulatory compliance[135]. - A downturn in the housing market could result in builders delaying home construction, impacting the company's ability to rent single-family homes at profitable rates[152]. - The company may face significant financial risks due to potential delays in land development and construction, which could lead to operating losses if cash flows are insufficient to cover expenditures[151]. Regulatory and Environmental Challenges - The company may incur significant costs for treating contaminated water sources, which could adversely affect revenues and financial condition[193]. - Regulatory changes regarding water quality standards, particularly concerning PFAS, could materially impact the company's water and wastewater operations[163]. - The implementation of SB 19-181 could adversely affect the company's water sales to the oil and gas industry and demand for new homes at Sky Ranch[175]. - Environmental regulations and legislative changes may reduce demand for water in the oil and gas industry, impacting sales[139]. - The company operates in a highly political environment, which may hinder or delay its ability to enter into service agreements or develop water rights[199]. - Municipalities may impose restrictions on utility availability, potentially causing delays and increased costs for the company[162]. - The company may face increased costs and operational challenges due to evolving environmental regulations and local government requirements[165]. Rental and Housing Market - The company launched a single-family rental division, initially contracting for 14 homes and currently under contract for 12 more, with plans to add 94 homes in Phase 2 and the potential for over 200 homes as Sky Ranch develops[24]. - The single-family rental market is estimated at $3.4 trillion, with demand for rental units steadily increasing due to demographic trends and remote work[100]. - The company anticipates building 84 additional rental homes at Sky Ranch, with an average construction cost of approximately $350,000 each[94]. - The success of the rental home division heavily depends on tenant selection, with potential defaults adversely affecting financial performance[156]. - The company anticipates high tenant turnover due to one-year lease terms, which may lead to increased costs and lower occupancy levels[157]. Operational and Management Aspects - The company employs licensed operators for its water and wastewater systems and plans to hire additional personnel as systems expand[88]. - As of August 31, 2024, the company employed 39 full-time employees, with approximately 26% in the water and wastewater segment, 44% in land development, and 30% in support functions[114]. - The company is dependent on the services of its President and CEO, Mark W. Harding, whose loss could significantly interrupt operations[202]. - The company may face potential liabilities related to labor law violations by subcontractors, which could create substantial exposures[191]. - The company faces risks from fixed-price contracts, which may lead to cost overruns if subcontractor estimates prove inaccurate[172].

Core Insights - Pure Cycle Corporation (NASDAQ: PCYO) has significant growth potential due to its ownership of valuable water reserves and assets that are becoming increasingly valuable [1] Company Overview - The company is in the early stages of monetizing its asset base, indicating a promising opportunity for future revenue generation [1] Investment Considerations - The article emphasizes the importance of conducting thorough research before making investment decisions, highlighting the author's commitment to extensive analysis [1]

Exhibit 99.1 Pure Cycle Announces Financial Results For the Three and Nine Months Ended May 31, 2024 DENVER, CO / ACCESSWIRE / July 10, 2024 – Pure Cycle Corporation (NASDAQ Capital Market: PCYO) announced its financial results for the three and nine months ended May 31, 2024. Pure Cycle posted its twentieth consecutive fiscal quarter with positive net income. Pure Cycle continues to develop its Sky Ranch Master Planned Community, and as of May 31, 2024, we are actively working on Phase 2A, 2B and 2C. Phase ...

Housing Market Challenges - The housing market faced significant challenges in Q3 2022, continuing into fiscal 2025, due to rising mortgage rates, inflation, and supply chain disruptions [159]. - The Federal Reserve's actions to combat inflation have led to mortgage rates reaching their highest levels in over 15 years during 2023, impacting the housing market negatively [160]. - The company is actively working with home builder partners to mitigate impacts from macroeconomic factors affecting consumer demand and mortgage availability [160]. Financial Performance - Total revenue for the three months ended May 31, 2024, was $6.879 million, with segment profit of $4.673 million [179]. - For the nine months ended May 31, 2024, total revenue was $11.218 million, with segment profit of $6.276 million [180]. - For the nine months ended May 31, 2024, the company generated net income of $5.0 million, an increase from $3.6 million in the same period of fiscal 2023, driven by significant water sales and increased lot sales revenue [198]. - During the three months ended May 31, 2024, total revenue was $7.6 million, an increase of 11% compared to $6.9 million in the same period of 2023, primarily due to ongoing developments in multiple phases [199]. - Total revenue for the nine months ended May 31, 2024, was $16,187,000, up 44% from $11,218,000 in the same period of 2023 [228]. - Net income for the nine months ended May 31, 2024, was $5,008,000, a 37% increase from $3,643,000 in the same period of 2023 [228]. Development Progress - As of May 31, 2024, Phase 2A of the Sky Ranch development is approximately 98% complete, with $18.4 million received from the sale of 219 lots [166]. - The company plans to expand its single-family rental business to over 200 rental units in the coming years, with 14 homes completed and leased as of May 31, 2024 [161]. - The company has retained 93 lots in Phase 2 for its rental business, with 10 completed and rented as of May 31, 2024 [169]. - As of May 31, 2024, Phase 2B of the Sky Ranch development is approximately 70% complete, with expected finished lot payments totaling $9 million over the next 3 months [221]. - The company anticipates incurring approximately $6 million in construction costs for 17 rental units at Sky Ranch in Phase 2B [211]. Revenue Sources - Lot sales revenue for the three months ended May 31, 2024, was $4.8 million, a 52% increase from $3.2 million in the same period of 2023, attributed to construction progress in Phase 2A, 2B, and 2C [199]. - The company recognized a total of $18.1 million in lot sales revenue since the start of construction on Phase 2A, with expectations to recognize the remaining $0.3 million of revenue for Phase 2A before the end of fiscal 2024 [195]. - Water and wastewater resource revenue for the three months ended May 31, 2024, was $2.5 million, a decrease of 32% from $3.6 million in the same period of 2023 [199]. - Water and wastewater resource revenue increased by 28% to $7,562,000 for the nine months ended May 31, 2024, compared to $5,891,000 in 2023 [228]. - Water deliveries increased by 76% to 1,422 acre-feet for the nine months ended May 31, 2024, compared to the same period in 2023 [228]. Cost and Expenses - The company has accrued liabilities totaling $1.380 million as of May 31, 2024, down from $1.761 million as of August 31, 2023 [176]. - Total assets increased to $140.404 million as of May 31, 2024, compared to $133.216 million as of August 31, 2023 [181]. - The effective tax rate for the company is estimated to be approximately 25% as of May 31, 2024, with potential volatility due to various factors [182]. - Total expenses for the three months ended May 31, 2024, increased by 15% to $1,321,000 compared to $1,150,000 in the same period of 2023 [232]. - Cash used in operating activities for the nine months ended May 31, 2024, was $0.8 million, primarily for normal operations and construction activities [252]. - Cash used in investing activities for the nine months ended May 31, 2024, was $3.9 million, mainly for future phases of Sky Ranch and additional water delivery infrastructure [252]. Market Trends - The average lot price increased by approximately 38%, with the price for a 45-foot lot rising from $75,000 to $103,200 [193]. - Water taps sold decreased by 55% to 20 for the three months ended May 31, 2024, compared to 44 in the same period of 2023 [199]. - Water delivered (acre-feet) decreased by 30% to 394 for the three months ended May 31, 2024, compared to 564 in the same period of 2023 [199]. - Water and wastewater tap fees dropped by 54% to $581,000 from $1,256,000 year-over-year [232].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 000-08814 PURE CYCLE CORPORATION (Exact name of registrant as specified in its charter) Colorado 84- ...

Financial Performance - Revenue increased, with Q1 2024 revenue at $5387 thousand [10] - Gross Profit also increased, with Q1 2024 gross profit at $3342 thousand [10] - The company's water rights portfolio can provide water to as many as 60000 connections [15] - The current system supports roughly $955 million in tap revenues [47] Land Development - Sky Ranch is planned to accommodate up to 3200 residential units and over 2 million square feet of commercial space, equivalent to 5000 single-family equivalents (SFEs) [6, 51] - The first two phases of Sky Ranch development generated approximately $55 million in lot revenue [51] - Remaining phases are estimated to produce $167 million from residential lots and $432 million from commercial development [51] - Land development revenue shows Phase 2b accounting for 841% of revenue [26] Single-Family Rentals - The company has 14 completed and rented homes [35] - The company plans to build 200 homes in Sky Ranch for rentals [35] - Strategy is to retain the equity value in the land and water and deliver affordable rental units in Sky Ranch Master Planned Community [55] Stock Repurchase Program - The board approved a stock repurchase program to repurchase up to 200000 shares [64] - As of Q2 2024, the company has repurchased a total of 22000 shares at an average price of $978 [65]

Table of Contents Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ PURE CYCLE CORPORATION (Exact name of registrant as specified in its charter) Colorado 84-0705083 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (State or other jurisdict ...

Pure Cycle Corporation (NASDAQ:PCYO) Q4 2023 Earnings Call Transcript November 16, 2023 8:30 AM ET Company Participants Mark Harding - President and CEO Conference Call Participants John Rosenberg - Loughlin Water Partners Greg Malachowski - Benchmark Elliot Knight - Knight Advisors Operator Greetings, and welcome to Pure Cycle Corporation's Year-End 2023 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for questions after the presentation. [Ope ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-8814 PURE CYCLE CORPORATION (Exact name of registrant as specified in its charter) Colorado 84-0705083 (State or other jurisdiction of incorporation or organization) ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 000-08814 PURE CYCLE CORPORATION (Exact name of registrant as specified in its charter) | | 84-0705083 (I ...