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Feb 28, 2023
Pure Cycle Q2 2023 Earnings Report
Pure Cycle reported a profitable quarter despite housing market headwinds.
Key Takeaways
Pure Cycle Corporation announced its sixteenth consecutive fiscal quarter with positive net income, driven by its Sky Ranch Master Planned Community. While facing headwinds from rising interest rates, the company saw robust new home starts and continued demand for rental units. The company is forecasting strong fiscal 2023.
Revenues for the three months ended February 28, 2023, were $3.0 million, driving pre-tax income of $0.3 million.
EBITDA for the three months ended February 28, 2023 was $0.9 million.
Cash and investments totaled $22.5 million as of February 28, 2023.
Sky Ranch community continues to see robust new home starts due to its much-needed entry level priced homes.
Revenue by Segment
Forward Guidance
Pure Cycle forecasts a strong fiscal 2023, driven by continued participation from homebuilders and increased demand for industrial water sales from oil and gas operations.
Positive Outlook
- Strong balance sheet.
- Three strong and long-term producing assets.
- Continued investment in water resources.
- Continued participation from homebuilders.
- Increase demand for industrial water sales from oil and gas operations.
Challenges Ahead
- Rising interest rates have generated headwinds in the housing markets.
- Buyers deferring the purchase of a new home.
- Market pressures affecting the timing of lot deliveries.
- Slowing of the housing industry.
- Reduction in commercial water sales to oil and gas operators.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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