Pure Cycle(US:PCYO)2021-07-08 16:00Revenue Growth - Water and wastewater resource development revenue increased by 90% to $2,198,000 for the three months ended May 31, 2021, compared to $1,154,000 for the same period in 2020[116] - Total revenue rose by 44% to $2,666,000 for the three months ended May 31, 2021, up from $1,850,000 in the prior year[116] - Total revenue for the nine months ended May 31, 2021, decreased by 22% to $12,273,000 compared to $15,829,000 for the same period in 2020[117] - Water and wastewater resource revenue increased by 71% to $7,386,000, while land development revenue decreased by 58% to $4,887,000[117] - Water and wastewater tap sales increased by 85% to $1,856,000, driven by increased home closings and higher average prices[129] - Total revenue for Q3 2021 was $468,000, a decrease of 33% from $696,000 in Q3 2020[144] - Total revenue for the nine months ended May 31, 2021 was $4.887 million, down 58% from $11.503 million in the prior year[145] Net Income and Earnings - Net income surged to $624,000 for the three months ended May 31, 2021, a significant increase of 2,211% from $27,000 in the same period last year[116] - Net income for the nine months ended May 31, 2021, increased by 201% to $18,276,000, with basic EPS rising to $0.77 from $0.25[117] - Segment operating income for the nine months ended May 31, 2021 increased by 162% to $2.8 million from $1.067 million in 2020[145] Water Delivery and Usage - Water delivered increased by 36% to 16,541 thousand gallons for the three months ended May 31, 2021, compared to 12,205 thousand gallons in the previous year[116] - Water deliveries increased by 290% to 126,253 thousand gallons compared to 32,394 thousand gallons in the prior year[117] - Water deliveries increased in 2021 compared to 2020, driven by increased oil and gas operations, new Sky Ranch customers, and higher landscaping and irrigation water usage[142] Development Projects - The Sky Ranch development is expected to include a total of roughly 5,000 residential and equivalent units upon completion, with 3,400 single-family and multifamily homes planned[106] - The company has incurred $35.3 million of the estimated $35.8 million costs related to the first phase of Sky Ranch development, with $32.2 million expected to be reimbursable[109] - The company expects to recognize revenue from phase two land development in the fourth fiscal quarter of 2021[118] - The estimated total costs to complete the second phase of Sky Ranch are $65 million, with approximately $21 million expected to be spent in the next twelve months[154] Costs and Expenses - General and administrative expenses rose by 37% to $3,986,000, attributed to increased headcount and legal fees[117] - Costs of revenue decreased by 59% to $4,949,000, mainly due to reduced land development costs as phase one nears completion[117] - Wastewater service costs increased in 2021 compared to 2020, primarily due to the new Sky Ranch water reclamation facility being operational for the entire fiscal year[141] Lot Sales and Pricing - Water and wastewater taps sold rose by 64% to 59 for the three months ended May 31, 2021, up from 36 in the same period in 2020[116] - The company anticipates an increase in lot prices by approximately 30%, from $75,000 to $97,000 for a 50' lot in the second phase of Sky Ranch[110] - Lot sales decreased by 36% in Q3 2021, totaling $445,000 compared to $696,000 in Q3 2020[144] - For the nine months ended May 31, 2021, lot sales decreased by 71% to $3.316 million from $11.503 million in the same period of 2020[145] Cash and Working Capital - As of May 31, 2021, the company had working capital of $16.5 million, including $19.8 million in cash and cash equivalents[153] - The company expects to receive an additional $1.5 million in water and wastewater tap fees during calendar 2021, following $13.3 million generated from the Sky Ranch development[109] - The company anticipates investing $1.1 million in 2021 and $7.5 million from 2022 to 2025 for the Rangeview District's participation in WISE[156] New Business Initiatives - The Build-to-Rent line of business was launched in March 2021, with three single-family homes under construction expected to be completed by fall 2021[112]