Pure Cycle(PCYO) - 2025 Q2 - Quarterly Results

Financial Performance - Revenues for the three and six months ended February 28, 2025, were $4.0 million and$9.7 million, respectively, compared to $3.2 million and$8.6 million for the same periods in 2024, representing an increase of 25% and 12.8%[3][5][6] - Net income for the three and six months ended February 28, 2025, was $0.8 million and$4.7 million, respectively, compared to $0.118 million and$2.183 million in 2024, indicating a significant increase of 577% and 115%[3][4][6] - Royalty income for the three and six months ended February 28, 2025, was $1.9 million and$4.7 million, respectively, compared to $0.053 million and$0.087 million in 2024, showing a substantial increase of 3,487% and 5,400%[3][4][6] - EBITDA for the three and six months ended February 28, 2025, was $1.8 million and$7.6 million, respectively, compared to $0.778 million and$4.198 million in 2024, reflecting an increase of 131% and 81%[3][4][6] Assets and Liabilities - Total assets increased to $149,656,000 as of February 28, 2025, compared to$147,354,000 on August 31, 2024, reflecting a growth of 1.5%[17] - Current assets decreased from $37,862,000 to$26,991,000, a decline of 28.8%[17] - Total liabilities decreased from $17,652,000 to$15,244,000, a reduction of 13.6%[18] - Total shareholders' equity increased to $134,412,000 from$129,702,000, representing a growth of 3.5%[18] Business Operations - The company operates in three business segments: wholesale water and wastewater services, land development, and single-family home rentals, enhancing recurring revenues[19] - The rental of single-family homes at Sky Ranch contributes to long-term recurring revenues and supports land development operations[19] - The company continues to prioritize investment in ongoing development projects while maintaining a share repurchase program and reserving capital for strategic initiatives[2] Development Projects - The first development phase of Sky Ranch is complete with 509 lots, while the second phase is ongoing with 1,032 lots being developed across five subphases[8][10] - The company is focused on the development of master-planned communities, with ongoing projects at Sky Ranch expected to deliver finished lots in the near future[21] - The single-family rental business had 14 homes built and rented, with an additional 17 homes under contract to build in Phase 2B starting in spring 2025[9][14] Market Outlook - The company anticipates future water and wastewater tap sales and revenues to be strong, driven by market demand[21] - Forward-looking statements indicate potential risks including home mortgage interest rates and inflation impacting the housing market[21] Water Deliveries - Water deliveries decreased to 64 acre-feet for the three months ended February 28, 2025, compared to 404 acre-feet in 2024, and to 367 acre-feet for the six months ended February 28, 2025, compared to 1,028 acre-feet in 2024[12] - The company sold 52 water or wastewater taps for $2.1 million in the three months ended February 28, 2025, and 90 taps for$3.6 million in the six months ended, compared to 0 taps in 2024[7][12] Innovation and Strategy - The company has a commitment to innovation and vertical integration within its service offerings, positioning itself competitively in the market[19]