Pure Cycle(US:PCYO)2024-07-11 14:00Financial Performance - Pure Cycle reported a net income of $2.8 million for the three months ended May 31, 2024, and $5.0 million for the nine months ended, compared to $3.3 million and $3.6 million in the same periods of 2023, respectively [3]. - Total revenues for the three months ended May 31, 2024, were $7.6 million, a 10% increase from $6.9 million in 2023, and for the nine months, revenues were $16.2 million, up 45% from $11.2 million in 2023 [4][7]. - Operating income for the three months ended May 31, 2024, was $3,068,000, a decrease from $3,757,000 in the same period last year, reflecting a decline of 18.4% [19]. - Net income for the three months ended May 31, 2024, was $2,825,000, down from $3,295,000 in the prior year, a decrease of 14.2% [19]. - The company reported a basic earnings per share of $0.12 for the three months ended May 31, 2024, compared to $0.14 in the same period last year, a decrease of 14.3% [19]. Revenue Sources - Lot sales revenue increased by 52% to $4.8 million for the three months ended May 31, 2024, and by 56% to $7.9 million for the nine months, driven by increased development activity in the Sky Ranch community [1][14]. - Total revenues for the three months ended May 31, 2024, increased to $7,604,000, up from $6,879,000 in the same period last year, representing an increase of 10.5% [19]. - Lot sales revenue rose significantly to $4,795,000 for the three months ended May 31, 2024, compared to $3,160,000 in the prior year, marking a 51.7% increase [19]. Development Projects - The first development phase of Sky Ranch, consisting of 509 lots, is complete, while the second phase, with 874 lots, is under development across four subphases [9]. - The single-family rental business currently has 14 homes built and rented, with an additional 17 homes forecasted for construction in Phase 2B [10][15]. - Phase 2B is expected to be completed by the end of fiscal 2024, while Phase 2C is anticipated to be completed during fiscal 2025 [9][11]. Cash and Assets - As of May 31, 2024, cash and cash equivalents totaled $20.4 million, with working capital reported at $19.6 million [12]. - Total assets as of May 31, 2024, increased to $140,404,000 from $133,216,000 as of August 31, 2023, representing a growth of 5.5% [21]. - Cash and cash equivalents decreased to $20,360,000 as of May 31, 2024, from $26,012,000 as of August 31, 2023, a decline of 21.7% [21]. Liabilities - Total liabilities rose to $17,221,000 as of May 31, 2024, compared to $14,982,000 as of August 31, 2023, an increase of 15.0% [21]. Future Outlook - Pure Cycle expects continued strong demand for oil and gas water sales through 2024 and 2025, contributing to revenue growth in residential water and wastewater services [13]. - The company continues to expand its operations in land development and single-family rentals, which are expected to drive recurring revenues [22]. - Forward-looking statements indicate expectations for continued growth in water and wastewater services and potential increases in home sales and lot sales revenues [24].