Pure Cycle Announces Financial Results For the Three and Nine Months Ended May 31, 2024
Pure Cycle announced its financial results for the three and nine months ended May 31, 2024, highlighting a 52% increase in lot sales revenue for Q3 and a 56% increase for the nine months compared to 2023. Revenues for Q3 and YTD 2024 were $7.6 million and $16.2 million, respectively, driving pre-tax income of $3.9 million and $6.8 million. Net income for Q3 and YTD stood at $2.8 million and $5.0 million, respectively, while EBITDA reached $4.5 million for Q3 and $8.7 million YTD.
Pure Cycle's development of the Sky Ranch Master Planned Community is progressing, with Phase 2A, 2B, and 2C actively underway. Phase 2B will soon be ready for builders, with construction to continue into Phase 2C. The company maintained a positive net income for the twentieth consecutive fiscal quarter and holds cash and cash equivalents totaling $20.4 million.
- 52% increase in lot sales revenue for Q3 2024.
- 56% increase in lot sales revenue for the nine months ended May 31, 2024.
- Q3 2024 revenues of $7.6 million, up from Q3 2023.
- Nine-month revenues of $16.2 million, up from the same period in 2023.
- Net income of $2.8 million for Q3 2024.
- YTD net income of $5.0 million.
- EBITDA of $4.5 million for Q3 and $8.7 million YTD.
- Twentieth consecutive fiscal quarter with positive net income.
- Cash and cash equivalents totaling $20.4 million as of May 31, 2024.
- Net income for Q3 2024 decreased to $2.8 million from $3.3 million in Q3 2023.
- EBITDA for Q3 2024 decreased to $4.5 million from $5.0 million in Q3 2023.
Insights
Pure Cycle Corporation's latest financial results show a steady improvement in its financial health. The company reported
This consistent profitability, indicated by the EBITDA figures of
Key Highlights:
- Net Income: The net income to EBITDA reconciliation is crucial, as it strips out non-operational expenses like interest and taxes, providing a clearer picture of the company's operational profitability. A net income of
$2.8 million for the quarter and$5.0 million YTD indicates a resilient business model. - EBITDA: An EBITDA margin, calculated as EBITDA divided by total revenue, yields
59% for the quarter and54% YTD, indicating strong underlying profitability.
Investors should note the company's sufficient liquidity with
Takeaway: Pure Cycle's sustainable earnings and growth in lot sales revenue signal a promising trajectory. However, the modest decline in net income compared to last year warrants monitoring. For long-term investors, these results are a positive indicator of the company's future potential.
The key driver behind Pure Cycle's recent financial performance is its development of the Sky Ranch Master Planned Community. The project is advancing through its various phases, with Phase 2B nearing readiness for builders. This progression is reflected in the 52% and 56% increases in lot sales revenue for the quarter and nine months, respectively. These figures reveal strong market demand and effective execution of their development plans.
Market Context:
- Significant revenue growth in real estate development often correlates with favorable market conditions, such as low interest rates and robust housing demand. Pure Cycle appears to be capitalizing on these trends effectively.
- The company's ability to advance through multiple phases of the Sky Ranch project without major delays or financial strain is a positive signal to the market, suggesting competent project management and strategic planning.
Strategic Insights:
- Phased Development Strategy: By advancing phases sequentially (2A, 2B, 2C), Pure Cycle mitigates risk and manages cash flow more effectively. This approach allows the company to adjust to market conditions and builder demand dynamically.
- Revenue Streams: The increase in lot sales revenue is a critical performance metric, indicating effective monetization of the developed properties. This revenue stability is essential for funding ongoing and future developments.
The continual development of the Sky Ranch project aligns well with current market trends favoring suburban and master-planned communities. Pure Cycle's proactive approach in releasing new phases systematically suggests they are well-positioned to meet ongoing and future housing demand.
Investment Perspective: The steady execution and strong revenue growth from the Sky Ranch development make Pure Cycle an attractive proposition for investors seeking exposure to the real estate development sector. However, it is vital to stay informed about broader economic factors, such as interest rates and housing market trends, that could influence future performance.
DENVER, CO / ACCESSWIRE / July 10, 2024 / Pure Cycle Corporation (NASDAQ Capital Market:PCYO) announced its financial results for the three and nine months ended May 31, 2024. Pure Cycle posted its twentieth consecutive fiscal quarter with positive net income. Pure Cycle continues to develop its Sky Ranch Master Planned Community, and as of May 31, 2024, we are actively working on Phase 2A, 2B and 2C. Phase 2B will be ready for builders to start construction in the coming months and builders will be able to continue into Phase 2C once Phase 2B is built out. We recognized a
Q3 and YTD 2024 Highlights
Revenues for the three and nine months ended May 31, 2024 of
$7.6 million and$16.2 million , which drove pre-tax income of$3.9 million and$6.8 million ;Net income for the three and nine months ended May 31, 2024 of
$2.8 million and$5.0 million ;EBITDA for the three and nine months ended May 31, 2024 of
$4.5 million and$8.7 million (see table below for reconciliation of net income to EBITDA);Cash & cash equivalents totaled
$20.4 million at May 31, 2024;For the three and nine months ended May 31, 2024, we delivered 394 and 1,422 acre-feet of water.
Net Income to EBITDA Reconciliation
We continue our profitability as shown in the table below:
| Three Months Ended |
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| Nine Months Ended | |||||||||||
(In thousands) |
| May 31, 2024 |
|
| May 31, 2023 |
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| May 31, 2024 |
|
| May 31, 2023 | ||||
Net Income |
| $ | 2,825 |
|
| $ | 3,295 |
|
| $ | 5,008 |
|
| $ | 3,643 |
Add back: |
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Interest expense, net |
|
| 109 |
|
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| 52 |
|
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| 328 |
|
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| 149 |
Taxes |
|
| 1,027 |
|
|
| 1,124 |
|
|
| 1,805 |
|
|
| 1,344 |
Depreciation / amortization |
|
| 561 |
|
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| 518 |
|
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| 1,579 |
|
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| 1,594 |
EBITDA |
| $ | 4,522 |
|
| $ | 4,989 |
|
| $ | 8,720 |
|
| $ | 6,730 |
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Earnings per common share - basic and diluted |
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Basic |
| $ | 0.12 |
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| $ | 0.14 |
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| $ | 0.21 |
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| $ | 0.15 |
Diluted |
| $ | 0.12 |
|
| $ | 0.14 |
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| $ | 0.21 |
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| $ | 0.15 |
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Weighted average common shares outstanding: |
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Basic |
|
| 24,087,170 |
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| 24,054,843 |
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| 24,085,578 |
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| 24,021,582 |
Diluted |
|
| 24,143,039 |
|
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| 24,166,344 |
|
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| 24,146,361 |
|
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| 24,131,621 |
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View the original press release on accesswire.com
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