Wed, Jul 10, 8:02 PM (59 days ago)
Pure Cycle Corporation's Form 10-Q for the quarter ended May 31, 2024, indicates a mixed financial performance. Total revenue increased by 11% to $7.6 million compared to the same period in 2023, driven primarily by higher lot sales revenue from ongoing construction activities in Sky Ranch Phases 2A, 2B, and 2C. However, water and wastewater revenue decreased by 32%, largely due to reduced commercial water sales to oil and gas operators and fewer tap sales. Costs of revenue rose by 24% to $2.7 million, reflecting increased land development and water service costs. General and administrative expenses nearly doubled to $1.8 million, impacting operating income, which fell by 18% to $3.1 million. Net income dropped 14% to $2.8 million, with EPS decreasing similarly. For the nine months ended May 31, 2024, net income rose 37% to $5.0 million, driven by a 44% increase in total revenue to $16.2 million, primarily from commercial water sales and lot sales. However, higher costs and expenses moderated the gains. The company's liquidity remains solid with $20.4 million in cash and cash equivalents, sufficient to fund operations for the next 12 months. Future performance may be influenced by market conditions and construction progress at Sky Ranch.