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Nov 30, 2023

Pure Cycle Q1 2024 Earnings Report

Reported eighteenth consecutive fiscal quarter with positive net income and increased lot sale and water/wastewater revenue.

Key Takeaways

Pure Cycle Corporation announced strong Q1 2024 results, marked by a significant increase in lot sale revenue and water/wastewater revenue, driving a net income of $2.1 million. The company's Sky Ranch community continues to show solid growth, with revenues driven by diversified streams.

Revenues reached $5.4 million, resulting in pre-tax income of $2.8 million.

Net income stood at $2.1 million.

EBITDA was reported at $3.4 million.

Cash totaled $21.8 million.

Total Revenue
$5.39M
Previous year: $1.34M
+301.9%
EPS
$0.09
Previous year: $0.01
+800.0%
Gross Profit
$3.19M
Previous year: $14K
+22714.3%
Cash and Equivalents
$21.8M
Previous year: $16.8M
+29.3%
Total Assets
$137M
Previous year: $128M
+7.3%

Pure Cycle

Pure Cycle

Forward Guidance

Pure Cycle anticipates continued strong demand for oil and gas water sales through 2024 and expects to be substantially complete with the delivery of all 211 Phase 2B lots during calendar 2024.

Positive Outlook

  • Continued strong demand for oil and gas water sales through 2024.
  • Sky Ranch continues to develop, leading to anticipated growth in residential water and wastewater service revenues.
  • Expectation to be substantially complete with the delivery of all 211 Phase 2B lots during calendar 2024.
  • Strong demand for affordable homes in the Denver market.
  • Lot inventories and existing home sales well below historic levels.

Challenges Ahead

  • Oil and gas operations are highly variable and dependent on oil prices.
  • Oil and gas operations are dependent on demand for gas.
  • Oil and gas operations are dependent on the timing of development of other leases in our service areas.
  • Home mortgage interest rates impacting the housing market and home sales.
  • Inflation impacting the housing market and home sales.