NASDAQ$PCYO

Pure Cycle Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Pure Cycle reported a revenue increase of 44% due to increased water and wastewater tap sales, with land development revenues expected to increase in the next quarter.

Pure Cycle Corporation reported increased revenue driven by water and wastewater tap sales. The company is progressing with its Sky Ranch development, expecting to deliver platted lots in the next fiscal quarter. They are also on schedule with their Build-to-Rent project.

  • Total revenue increased 44% compared to the three months ended May 31, 2020.
  • 59 water and wastewater taps were sold at Sky Ranch for $1.9 million during the three months ended May 31, 2021.
  • Land development revenues are expected to increase beginning in the fourth fiscal quarter, with the delivery of platted lots.
  • As of May 31, 2021, more than 330 homes are currently occupied and another 100+ are under construction at Sky Ranch.

Headline financials

Total Revenue

$2.67M

Previous: $1.85M+44.1%
EPS (adj)

$0.03

Previous: $0.00
Capital Expenditures

-$101K

Previous: -$525K+80.8%
Free Cash Flow

$523K

Previous: -$498K+205.0%
Net Income

$624K

Previous: $27.3K+2182.6%
Operating Income

$328K

Previous: -$143K+329.9%
Gross Profit

$1.73M

Previous: $744K+132.1%
Cash & Equivalents

$19.8M

No prior period
Total Assets

$109M

No prior period
Stock-Based Comp

$91K

No prior period

Revenue & EPS history

Pure Cycle · Revenue · Quarterly

$2.67M

Q3 2021+44.1%vs Q3 2020

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 anticipates delivering the first round of platted lots in the fourth fiscal quarter of 2021 and expects land development revenues to increase.

Tailwinds

  • Grading is nearing completion in the second development phase at Sky Ranch.
  • Expected delivery of the first round of platted lots in the fourth fiscal quarter of 2021.
  • Contractors are making great progress with the dirt work and utilities.
  • Three BTR houses are on schedule and on budget.
  • Expect these three homes to be completed and ready for renters in the fall of 2021.

Headwinds

  • Delays out of the company's control in the second development phase at Sky Ranch have delayed revenue recognition and slowed cash flows being generated from operations for the period.
  • Error discovered in prior issued financial statements related to the spreadsheet used to record the recognized reimbursables and related interest income.
  • COVID-19 impacts have caused unavoidable delays in the permitting process for the next phase of development.
  • Land development revenues and expenses decreased in the third fiscal quarter of 2021 compared to fiscal 2020.
  • Company is working to correct an error which was discovered in their prior issued financial statements.

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 Q3 2021

Historical avgQ3 2021

+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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