Business
Pure Cycle Posts Strong Fiscal 2021 Financial Results
DENVER, CO / ACCESSWIRE / November 9, 2021 / Pure Cycle Corporation (NASDAQ:PCYO) posted net income of $20.1 million for its year ended August 31, 2021.
About this update from Pure Cycle Corporation
[{"type":"text","content":"DENVER, CO / ACCESSWIRE / November 9, 2021 / Pure Cycle Corporation (NASDAQ:PCYO) posted net income of $20.1 million for its year ended August 31, 2021. Fiscal 2021 marked another positive year for Pure Cycle highlighted by the following:Substantially completed the first development phase at Sky Ranch - sold a total of 505 lots since 2018Commenced development on the first subphase of the second development phase at Sky Ranch - contracted for the sale of 804 lots that will be developed in four subphasesconstructing 229 lots, of which we had the first closing on 152 lots generating $3.9 million in cash proceeds, with 67 lots being under finished lot agreements that will close in fiscal 2022remaining 10 lots we will use in our single-family rental businessLaunched single-family rental division with the construction of three homes to be used for rentalsall three rental homes are occupied effective November 1, 2021 at rates above what we budgetedRecognized $2.8 million in revenues from oil and gas customersRecognized $21.8 million of combined project management revenue, interest income and other income from the recognition of reimbursable public improvementsRecognized $5.2 million in tap fees\"We are pleased to have received our first milestone payments for lots in Phase 2 of Sky Ranch in fiscal 2021\" commented Mark Harding, President of Pure Cycle. \"Our second phase of Sky Ranch incorporates three development contracts, the first which is the largest, is our standard structure where we deliver lots pursuant to development agreements requiring milestone payments as construction progresses; the second is finished lot agreements where the builder makes a single payment at finished lot delivery; and the third is new where we retain the lots for use in our rental business. While COVID and supply chain disruption issues had some impact on starting our second phase, our contractors made great progress with the dirt and utility work so we can deliver lots for construction of model homes late in 2021 and meet our delivery obligations for our homebuilders next year. Since we started developing Sky Ranch, 464 or 92% of the first phase lots have purchased water and wastewater taps, totaling $14.0 million in tap fees. In addition, we are excited to bring our three houses to market for rentals, which were built on budget and are rented at price...