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Aug 31, 2022
Pure Cycle Q4 2022 Earnings Report
Pure Cycle reported positive net income for the fifth consecutive year, driven by land development, water resource development, and single-family rentals.
Key Takeaways
Pure Cycle reported a net income of $9.6 million on revenues of $23.0 million for the year ended August 31, 2022. The company's growth was attributed to its land development, water resource development, and single-family rental business lines.
Revenues of $23.0 million drove pre-tax income of $12.7 million.
EBITDA reached $14.9 million.
404.9 million gallons of water were delivered, marking a record year for the water resource business.
All 229 lots were delivered, with 219 titles transferred to homebuilders in Phase 2A, and 10 lots retained for rentals.
Forward Guidance
Pure Cycle anticipates continued growth and expansion across its business segments, with a focus on affordable housing and water resource development.
Positive Outlook
- Continued progress on Sky Ranch development
- Expansion of the water resource business
- Successful launch and expansion of the home rental business
- Strong demand for entry-level housing
- High margins achieved by home building partners in Phase 1 of Sky Ranch
Challenges Ahead
- Impact of interest rates on housing demand
- Potential fluctuations in lot sale revenue due to construction timing
- General caution about the housing market
- Reliance on building permit applications for tap sales
- Uncertainties in the housing market due to inflation and other factors
Historical Earnings Impact
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Avg. Return Before/After Earnings
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