Business
Pure Cycle Announces Financial Results for the Three Months Ended November 30, 2022
DENVER, CO / ACCESSWIRE / January 9, 2023 / Pure Cycle Corporation (NASDAQ Capital Market:PCYO) announced for the three months ended November 30, 2022, it
About this update from Pure Cycle Corporation
[{"type":"text","content":"DENVER, CO / ACCESSWIRE / January 9, 2023 / Pure Cycle Corporation (NASDAQ Capital Market:PCYO) announced for the three months ended November 30, 2022, it posted positive net income for the fifteenth consecutive fiscal quarter. The housing market downturn and quick turn in weather proved to be a challenge for our first quarter of fiscal 2023, but we received several surface use payments and other cash payments from oil and gas operators which are a positive sign to what we believe will be a strong year for oil and gas water sales. Highlights for the first quarter of fiscal 2023 are presented below.HighlightsRevenues of $1.3 million which drove pre-tax income of $0.3 millionEBITDA of $0.8 millionReconciliation of net income to EBITDA is as follows: net income of $0.2M plus interest expense of $0.05M plus tax expense of $0.1M plus depreciation and depletion of $0.5M equals EBITDA of $0.8 millionCash and investments totaled $32.0 million at November 30, 202267.5 million gallons of water delivered\"While the downward pressures on the housing industry created by rising interest rates and increasing prices took a toll on new home sales which in turn slowed our development activities, we were able to collect a number of surface use payments from oil and gas operators which we believe indicates a strong drilling forecast for the coming year,\" commented Mr. Harding, CEO of Pure Cycle. \"The winter months are always a cyclically slow season for home sales, but each of our builders continue to construct homes at Sky Ranch with over 60 starts in our second phase under construction and over 124 of the 219 tap sales, which correlate to building permits from our homebuilders. We believe our entry level priced homes will remain attractive in this market and believe the future growth at Sky Ranch will remain strong,\" concluded Mr. Harding.Financial SummaryRevenueFor the three months ended November 30, 2022 and 2021, we reported total revenues of $1.3 million and $4.3 million. This was generated by our water and wastewater resource development segment ($0.8 million and $1.1 million), our land development segment ($0.5 million and $3.2 million), and our single-family rental business (less than $.01 million in both periods). The decline in revenue was predominately due to the slowing of the housing industry, which resulted in our construction act...