NASDAQ$PCYO

Pure Cycle Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Pure Cycle reported net income increase driven by increased lot sales.

Pure Cycle Corporation reported a net income of $1.5 million on revenues of $4.3 million for the three months ended November 30, 2021. The company continues construction on the second development phase of the Sky Ranch Master Planned Community.

  • Revenues of $4.3 million for the three months ended November 30, 2021.
  • Received the second progress payment for Phase 2 LDA lots of Sky Ranch.
  • 479 or 94% of lots in the initial phase of Sky Ranch have purchased water and wastewater taps, totaling $14.2 million in tap fees to date.
  • Completed construction of the first three single-family rental homes and rented the homes within ten days of completing construction at rates higher than budgeted.

Headline financials

Total Revenue

$4.27M

Previous: $4.87M-12.2%
EPS (adj)

$0.06

Previous: $0.04+50.0%
Capital Expenditures

-$2.25M

Previous: -$31K-7151.6%
Free Cash Flow

-$734K

Previous: $814K-190.2%
Net Income

$1.51M

Previous: $845K+79.2%
Operating Income

$1.48M

Previous: $953K+55.3%
Gross Profit

$2.89M

Previous: $2.12M+36.1%
Cash & Equivalents

$12.9M

Previous: $21.3M-39.4%
Total Assets

$116M

Previous: $89M+30.8%
Stock-Based Comp

$112K

Previous: $86K+30.2%

Revenue & EPS history

Pure Cycle · Revenue · Quarterly

$4.27M

Q1 2022-12.2%vs Q1 2021

Revenue by segment

Pure Cycle · $3.63M total across 4 segments · Q1 2021

  • Lot sales
    $2.36M
  • Tap fees
    $1.08M
  • Water services
    $167K
  • Project mgmt & other
    $21K

Forward guidance

The second development phase continues to progress, driving lot sales revenue which is anticipated to continue to grow through fiscal 2022.

Tailwinds

  • Lot sales revenue is expected to grow through fiscal 2022.
  • Single-family rentals are another great revenue driver.
  • Company is excited to grow the single-family rentals business in the coming years.
  • Utility customer base continues to grow as occupancy in the first phase of Sky Ranch increases.
  • Recurring revenue from residential water and wastewater usage is steadily growing.

Headwinds

  • Total Revenues decreased for Q1 2022 compared to Q1 2021, due to the decrease in tap sales after the near completion of Sky Ranch Phase 1.
  • Saw increases in the cost of raw materials in this next phase which increases overall budget in the first subphase
  • Tap sales declined in Q1 2022 as compared to Q1 2021, due to timing of closings at Sky Ranch.
  • Revenue for three of the four builder contracts in the second development phase are recognized over time with progress measured under the percent of completion method; therefore, revenue will fluctuate due to timing of construction activities throughout the second phase.
  • No building permits have been issued for the second development phase as of November 30, 2021

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.9%

Avg return

30 days after

55%

26 / 47 earnings

Positive

+14.8%

Q2 2021

Best reaction

-9.6%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+1.1%-3.7%-1.0%
Q1 2026+4.7%+7.5%+4.6%
Q4 2025-1.9%-0.5%+8.1%
Q3 2025+1.7%-1.7%+0.8%
Q2 2025-4.5%-7.1%-3.9%
Q1 2025-4.1%-5.0%-3.6%
Q4 2024+11.1%+11.6%+13.7%
Q3 2024+7.4%+11.8%+7.2%
Q2 2024-0.1%-2.0%+1.2%
Q1 2024+0.6%+0.3%-2.6%
Q4 2023-4.1%-3.4%+5.4%
Q3 2023-0.4%+6.9%+9.2%
Q2 2023+1.2%+1.4%+2.9%
Q1 2023-9.6%-6.6%-15.4%
Q4 2022+10.9%+21.7%+29.0%
Q3 2022-3.8%-2.8%+0.6%
Q2 2022-5.8%-3.4%-18.4%
Q1 2022-2.4%-3.4%-10.6%
Q4 2021+1.3%+1.5%-6.7%
Q3 2021+2.4%+3.3%+9.9%
Q2 2021+14.8%+16.3%-4.8%
Q1 2021+6.0%+4.6%-2.4%
Q4 2020+4.8%+1.6%+9.5%
Q3 2020-6.2%-7.4%-2.6%
Q2 2020+7.7%+9.9%+7.6%
Q1 2020+0.6%-1.0%+6.2%
Q4 2019+1.1%+1.7%+10.0%
Q3 2019-1.9%+2.2%-0.2%
Q2 2019+1.8%+3.5%+2.4%
Q1 2019+1.1%-1.7%+2.3%
Q4 2018+0.6%-4.8%-9.1%
Q3 2018+2.0%+3.0%+8.1%
Q2 2018+2.2%-4.3%+1.1%
Q1 2018-1.2%-1.2%-9.2%
Q4 2017-2.1%-2.8%+8.3%
Q3 2017-1.9%-6.9%-7.8%
Q2 2017+0.9%+0.9%+39.6%
Q1 2017-0.9%-6.5%-3.7%
Q4 2016-6.2%-8.4%-9.3%
Q3 2016+0.6%-2.8%-1.1%
Q1 2012+0.0%
Q3 2011-7.5%
Q2 2011-0.9%
Q1 2010+0.6%
Q4 2010-2.5%
Q3 2010+7.3%
Q2 2009+9.9%

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