Pure Cycle(PCYO) - 2024 Q4 - Annual Results

Financial Performance - Pure Cycle reported a net income of $11.6 million for the year ended August 31, 2024, representing a 147% increase compared to $4.7 million in 2023[2] - Earnings per fully diluted common share increased to $0.48, up 153% from $0.19 in 2023[1] - Total revenue for the year ended August 31, 2024, was $28.7 million, a 97% increase from $14.6 million in 2023[2] - EBITDA for the year ended August 31, 2024, was $18.2 million, reflecting a 112% increase from $8.6 million in 2023[2] Revenue Sources - Lot sales revenue increased to $16.0 million for the year ended August 31, 2024, compared to $6.8 million in 2023[14] - Water deliveries reached a record 1,818 acre-feet for the year ended August 31, 2024, an increase of 89% from 964 acre-feet in 2023[2] - The company expects to generate an additional $19.8 million in water and wastewater tap fee revenue over the next three years from Phase 2 of Sky Ranch[8] Assets and Liabilities - Total assets increased to $147,354,000 as of August 31, 2024, up from $133,216,000 in 2023, representing a growth of approximately 10.8%[19] - Total current assets rose to $37,862,000 in 2024, compared to $29,727,000 in 2023, marking an increase of about 27.4%[19] - Cash and cash equivalents decreased to $22,113,000 in 2024 from $26,012,000 in 2023, a decline of approximately 15.5%[19] - Total liabilities increased to $17,652,000 in 2024 from $14,982,000 in 2023, reflecting a rise of about 17.8%[19] - Total shareholders' equity grew to $129,702,000 in 2024, up from $118,234,000 in 2023, indicating an increase of approximately 9.4%[19] Business Segments and Development - The company operates in three business segments: wholesale water and wastewater services, land development, and single-family home rentals, which contribute to recurring revenues[20] - The rental of single-family homes at Sky Ranch was launched in 2021, providing long-term recurring revenues and enhancing land development operations[20] - The Sky Ranch Master Planned Community is actively developing Phases 2A, 2B, and 2C, with substantial completion of Phases 2A and 2B[1] - The single-family rental segment had 14 homes built and rented, with plans for an additional 17 homes in Phase 2B[10] Future Outlook and Risks - Future growth is anticipated through market cycles, with expectations for increased water and wastewater tap sales and revenues[22] - The company is positioned to benefit from the strength of the Sky Ranch market and forecasts for future sales of water to oil and gas operators[22] - The company emphasizes the importance of monitoring risks such as home mortgage interest rates and inflation that could impact housing market dynamics[22]