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May 31, 2024
Pure Cycle Q3 2024 Earnings Report
Pure Cycle reported increased lot sales revenue and maintained profitability for the twentieth consecutive quarter.
Key Takeaways
Pure Cycle Corporation announced its financial results for Q3 2024, highlighting a 52% increase in lot sales revenue compared to the same period last year. The company continues to develop its Sky Ranch Master Planned Community, with Phase 2B nearing completion and Phase 2C progressing.
Revenues for the quarter were $7.6 million, driving a pre-tax income of $3.9 million.
Net income for the quarter reached $2.8 million.
Cash and cash equivalents totaled $20.4 million as of May 31, 2024.
Lot sales revenue increased to $4.8 million, compared to $3.2 million in the same period last year.
Pure Cycle
Pure Cycle
Pure Cycle Revenue by Segment
Revenue by Segment
Municipal water usage Revenue
CapyFin.comWastewater treatment Revenue
CapyFin.comTap fees Revenue
CapyFin.comLot sales Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Pure Cycle anticipates continued strong demand for oil and gas water sales through 2024 and 2025 and expects continued growth in residential water and wastewater service revenues as Sky Ranch develops.
Positive Outlook
- Continued strong demand for oil and gas water sales through 2024 and 2025.
- Continued growth in residential water and wastewater service revenues as Sky Ranch develops.
- Lot production has accelerated deliveries.
- Completion of approximately 211 lots in Phase 2B.
- Substantial progress on our overlapping production of 228 lots in Phase 2C.
Challenges Ahead
- Oil and gas operations are highly variable and dependent on oil prices.
- Demand for gas.
- Timing of development of other leases in our service areas.
- Water deliveries decreased due to an unusually large volume of oil and gas water sales in Q3 2023.
- Water and wastewater tap sales decreased due to the timing of closings at Sky Ranch.
Revenue & Expenses
Visualization of income flow from segment revenue to net income