NASDAQ$PCYO

Pure Cycle Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Pure Cycle reported a profitable quarter despite housing market headwinds.

Pure Cycle Corporation announced its sixteenth consecutive fiscal quarter with positive net income, driven by its Sky Ranch Master Planned Community. While facing headwinds from rising interest rates, the company saw robust new home starts and continued demand for rental units. The company is forecasting strong fiscal 2023.

  • Revenues for the three months ended February 28, 2023, were $3.0 million, driving pre-tax income of $0.3 million.
  • EBITDA for the three months ended February 28, 2023 was $0.9 million.
  • Cash and investments totaled $22.5 million as of February 28, 2023.
  • Sky Ranch community continues to see robust new home starts due to its much-needed entry level priced homes.

Headline financials

Total Revenue

$2.99M

Previous: $4.66M-35.9%
EPS (adj)

$0.01

Previous: $0.07-85.7%
Capital Expenditures

-$3.39M

Previous: -$2.63M-28.6%
Free Cash Flow

-$3.2M

Previous: -$939K-240.5%
Net Income

$189K

Previous: $1.69M-88.8%
Operating Income

-$240K

Previous: $1.51M-115.9%
Gross Profit

$1.59M

Previous: $3.16M-49.7%
Cash & Equivalents

$7.22M

Previous: $5.22M+38.5%
Total Assets

$125M

Previous: $113M+10.6%

Revenue & EPS history

Pure Cycle · Revenue · Quarterly

$2.99M

Q2 2023-35.9%vs Q2 2022
Beat estimate in 1 of 1 quarters(100%)
ActualEstimate

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

Pure Cycle forecasts a strong fiscal 2023, driven by continued participation from homebuilders and increased demand for industrial water sales from oil and gas operations.

Tailwinds

  • Strong balance sheet.
  • Three strong and long-term producing assets.
  • Continued investment in water resources.
  • Continued participation from homebuilders.
  • Increase demand for industrial water sales from oil and gas operations.

Headwinds

  • Rising interest rates have generated headwinds in the housing markets.
  • Buyers deferring the purchase of a new home.
  • Market pressures affecting the timing of lot deliveries.
  • Slowing of the housing industry.
  • Reduction in commercial water sales to oil and gas operators.

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 Q2 2023

Historical avgQ2 2023

+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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