Pure Cycle Corp · Q4 2021 earnings

Briefing

Pure Cycle reported strong financial results for fiscal year 2021, driven by lot sales, tap fees, and oil and gas revenues.

Pure Cycle Corporation reported a net income of $20.1 million for the fiscal year ended August 31, 2021. The company saw revenues from lot sales, tap fees, oil and gas operations, and water and wastewater usage fees. They also substantially completed the first development phase at Sky Ranch, commenced development on the second phase, and launched a single-family rental division.

• Substantially completed the first development phase at Sky Ranch, selling a total of 505 lots since 2018.
• Commenced development on the first subphase of the second development phase at Sky Ranch, contracting for the sale of 804 lots.
• Launched a single-family rental division with three homes, which are all occupied as of November 1, 2021.
• Recognized revenues from lot sales, tap fees, oil and gas operations, and water and wastewater usage fees.

Headline financials

Revenue & EPS history

Pure Cycle anticipates receiving the second milestone payment on the 152 lots delivered in the first subphase of the second development phase by the end of the first quarter of fiscal 2022, the final milestone payment for these 152 lots, and full payment for the 67 finished lots by the end of their fiscal 2022, generating $14.6 million in cash proceeds from lot sales. Based on current sales levels, all the homes in the first phase are expected to be sold by the end of Pure Cycle's second quarter of fiscal 2022.