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May 31, 2023
Pure Cycle Q3 2023 Earnings Report
Pure Cycle reported increased revenue and net income due to record water sales and phase 2B construction.
Key Takeaways
Pure Cycle Corporation announced its financial results for the three months ended May 31, 2023, posting its seventeenth consecutive fiscal quarter with positive net income. The company reported revenues of $6.9 million and a net income of $3.3 million. The increase in revenue was driven by record water sales to oil and gas operators and the start of Phase 2B construction at Sky Ranch.
Revenues for the three months ended May 31, 2023, were $6.9 million, driving pre-tax income of $4.4 million.
Net income for the three months ended May 31, 2023, was $3.3 million.
Cash totaled $26.0 million at May 31, 2023.
Delivered 183.6 million gallons of water during the three months ended May 31, 2023.
Forward Guidance
Pure Cycle anticipates the summer months generating increased lot sale revenue due to seasonal construction activity and believes they are going to finish the fiscal year strong.
Positive Outlook
- Strong demand at Sky Ranch due to well-priced lots.
- Continued interest in rental business.
- Resurgence of oil and gas operations in service area added a tremendous boost to income.
- Anticipate the summer months generating increased lot sale revenue due to seasonal construction activity.
- Company believes they are going to finish the fiscal year strong.
Challenges Ahead
- Interest rates pressuring the housing market.
- The nine months ended May 31, 2023, was impacted by a very high precipitation year.
- Housing market headwinds delayed some of construction activity.
- Lot sale revenue declined as we delayed the start of Phase 2B by a few months due to the increased pressures on the housing market in late 2022.
Historical Earnings Impact
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