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PCYO Nasdaq· Pure Cycle Corp
Earnings report Q4 2023

PCYO Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

PCYO reported total revenues of $5.39 million for the three months ended November 30, 2023, compared to $1.34 million in the same period last year. The breakdown of revenue by segment is as follows:

  • Metered water usage from municipal customers: $202,000
  • Metered water usage from commercial customers: $2.13 million
  • Wastewater treatment fees: $86,000
  • Water and wastewater tap fees: $581,000
  • Lot sales: $1.89 million
  • Project management fees: $100,000
  • Single-family rentals: $10,925,000
  • Special facility projects and other: $280,000

Strengths

PCYO's strong revenue growth in the latest quarter can be attributed to several factors. Firstly, the company experienced significant water sales to oil and gas operators for drilling purposes, which contributed to increased revenue. Additionally, PCYO saw increased lot sale revenue, which was recognized using the percentage of completion method based on the progress of construction. The company's land development activities also showed growth, particularly in the construction of Phase 2B at Sky Ranch, driven by entry-level pricing and affordable lot costs.

Challenges

While PCYO's revenue performance was strong overall, there were some challenges. The company faced increased challenges in the housing market, which could impact future revenue growth. Additionally, PCYO incurred expenses related to water service operations, wastewater service operations, land development construction costs, and general and administrative expenses, which could impact profitability.

Noteworthy

PCYO's revenue growth in the latest quarter was notable, particularly in the lot sales segment, which saw a significant increase of 270% compared to the same period last year. The company's entry into Phase 2B at Sky Ranch and its focus on affordable lot costs contributed to this growth. Additionally, PCYO's increased water sales to oil and gas operators for drilling purposes also played a significant role in driving revenue growth.

Summary

PCYO reported strong revenue growth in the latest quarter, with total revenues of $5.39 million. The company's performance was driven by increased water sales to oil and gas operators, higher lot sale revenue recognized using the percentage of completion method, and growth in land development activities. However, PCYO also faced challenges in the housing market and incurred various expenses. Overall, PCYO's revenue performance reflects its ability to capitalize on market opportunities and manage its operations effectively.

Source documents

Form 10-Q  filed on Jan 16, 2024
58 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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