NASDAQ$PCYO

Pure Cycle Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Pure Cycle reported positive net income and revenue growth, driven by Sky Ranch development and water resource segment expansion.

Pure Cycle reported a net income of $0.8 million on revenues of $3.2 million for the three months ended May 31, 2022. The company's Sky Ranch development continues to progress, with Phase 2A nearing completion and strong demand for affordably priced homes. The water resource development segment also continues to expand its customer reach.

  • Revenues reached $3.2 million for the quarter.
  • Net income was $0.8 million for the quarter, marking the thirteenth consecutive quarter with positive net income.
  • Phase 2A of Sky Ranch development is nearly 67% complete, with homebuilders beginning construction on model homes.
  • 40 water taps were sold in Phase 2A during the quarter, contributing to total tap fees of $16.4 million to date at Sky Ranch.

Headline financials

Total Revenue

$3.19M

Previous: $2.67M+19.5%
EPS (adj)

$0.03

Previous: $0.03+0.0%
Capital Expenditures

-$3.9M

Previous: -$101K-3756.4%
Free Cash Flow

-$3.06M

Previous: $523K-684.7%
Net Income

$837K

Previous: $624K+34.1%
Operating Income

$624K

Previous: $328K+90.2%
Gross Profit

$1.79M

Previous: $1.73M+3.9%
Cash & Equivalents

$5.42M

Previous: $19.8M-72.6%
Total Assets

$115M

Previous: $109M+5.8%
Stock-Based Comp

$120K

Previous: $91K+31.9%

Revenue & EPS history

Pure Cycle · Revenue · Quarterly

$3.19M

Q3 2022+19.5%vs Q3 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

Pure Cycle anticipates continuing to grow through the remainder of fiscal year 2022, focusing on delivering finished lots on time and on budget. The company believes its land, water, and rental housing assets will continue to grow, adding substantial shareholder value.

Tailwinds

  • Demand for affordably priced Sky Ranch homes holds steady.
  • First 229 lots in Phase 2A have been delivered as projected.
  • Builders have invested in over-lot grading for the next 211 lots in Phase 2B.
  • Wet utilities set to begin construction this fall for lot deliveries early next summer.
  • Sale of the school site completed during fiscal Q2-2022.

Headwinds

  • Economy continues to adjust to inflationary pressures.
  • Markets are slowing.
  • Interest rates are rising.
  • Water and wastewater tap sales declined compared to Q3-2021 due to the 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.

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 2022

Historical avgQ3 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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