Pure Cycle Corp (PCYO) Reports Annual Financial Results for Fiscal Year 2023
Pure Cycle Corp (NASDAQ:PCYO) posts $4.7 million in net income for the fiscal year ended August 31, 2023.
Revenue for FY 2023 stands at $14.6 million, a decrease from $23.0 million in FY 2022.
Working capital reported at $23.2 million with $26.0 million in cash as of August 31, 2023.
Company hosts earnings call to discuss financial results and provide operational updates.
On November 15, 2023, Pure Cycle Corp (NASDAQ:PCYO) released its 8-K filing, announcing its financial results for the fiscal year ended August 31, 2023. The company reported a net income of $4.7 million, marking its sixth consecutive year and seventeenth consecutive fiscal quarter with positive net income. However, this represents a decrease from the $9.6 million net income reported in the previous fiscal year.
Financial Performance Overview
Pure Cycle Corp (NASDAQ:PCYO) experienced a decline in total revenues, reporting $14.6 million for FY 2023 compared to $23.0 million in FY 2022. The company's water and wastewater resource development segment generated $7.3 million, while the land development segment contributed $6.8 million. The single-family rental business reported revenues of less than $0.2 million.
The company sold 90 water and wastewater taps for $2.7 million in FY 2023, a decrease from 154 taps sold for $4.9 million in the previous year. Despite no finished lots being delivered to homebuilders during the fiscal year, milestone payments from Lot Delivery Agreements accounted for significant lot sales revenue.
Operational Highlights and Challenges
During FY 2023, Pure Cycle Corp (NASDAQ:PCYO) delivered 738 finished lots to homebuilders and completed and leased 11 additional single-family homes, bringing the total to 14 homes. The company's Sky Ranch Master Planned Community has nearly 600 new homes built and sold, with 90 homes under construction.
Despite the challenges posed by rising interest rates and their impact on the housing market, CEO Mark W. Harding remains optimistic about the community's growth, citing the opening of the Sky Ranch Academy School and the delivery of affordable rental units as key factors in delivering strong shareholder returns.
Balance Sheet and Cash Flow
The company's working capital stood at $23.2 million as of August 31, 2023, with cash reserves amounting to $26.0 million. The balance sheet reflects a strong financial position, with total assets valued at $133.2 million.
Water deliveries decreased in FY 2023, primarily due to reduced sales to oil and gas operators, while residential water and wastewater service revenues are expected to grow as Sky Ranch develops further. The company also anticipates the addition of 65 homes to its single-family rental business in Phase 2 of Sky Ranch.
Looking Ahead
CFO Marc Spezialy highlighted the company's strong balance sheet and its positioning for continued growth despite delays in construction activities and lot deliveries. The demand at Sky Ranch remains robust, driven by well-priced lots and water availability in the Denver metropolitan region.
Pure Cycle Corp (NASDAQ:PCYO) will host a conference call to discuss these financial results and answer questions. The company also plans to post a detailed slide presentation on its website, providing an overview of the company and summarizing the financial results.
For more detailed information on Pure Cycle Corp (NASDAQ:PCYO)'s financial performance, readers are encouraged to view the full earnings report and the upcoming slide presentation on the company's website.
This summary aims to provide investors with a concise overview of Pure Cycle Corp (NASDAQ:PCYO)'s financial results for the fiscal year ended August 31, 2023. For a deeper dive into the company's financials and operational strategies, stakeholders are advised to review the full earnings report and attend the earnings call for comprehensive insights.
Explore the complete 8-K earnings release (here) from Pure Cycle Corp for further details.
This article first appeared on GuruFocus.
