Pure Cycle Corp Files 10-Q for Period Ending February 29, 2024

Ticker: PCYO · Form: 10-Q · Filed: 2024-04-10T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, Pure Cycle Corp, Financial Report, Quarterly Filing, Water Supply

TL;DR

<b>Pure Cycle Corp filed its quarterly report (10-Q) for the period ending February 29, 2024, detailing its financial status and operations.</b>

AI Summary

PURE CYCLE CORP (PCYO) filed a Quarterly Report (10-Q) with the SEC on April 10, 2024. Pure Cycle Corp filed a 10-Q for the period ending February 29, 2024. The company's fiscal year end is August 31. The filing is from the Water Supply industry (SIC 4941). The filing was made on April 10, 2024. The company's principal business address is in Watkins, Colorado.

Why It Matters

For investors and stakeholders tracking PURE CYCLE CORP, this filing contains several important signals. This filing provides investors with an update on the company's financial performance and strategic direction for the most recent quarter. As a 10-Q filing, it contains unaudited financial statements and management's discussion and analysis, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — PURE CYCLE CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to assess Pure Cycle Corp's operational performance and financial position.

Key Numbers

Key Players & Entities

FAQ

When did PURE CYCLE CORP file this 10-Q?

PURE CYCLE CORP filed this Quarterly Report (10-Q) with the SEC on April 10, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by PURE CYCLE CORP (PCYO).

Where can I read the original 10-Q filing from PURE CYCLE CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by PURE CYCLE CORP.

What are the key takeaways from PURE CYCLE CORP's 10-Q?

PURE CYCLE CORP filed this 10-Q on April 10, 2024. Key takeaways: Pure Cycle Corp filed a 10-Q for the period ending February 29, 2024.. The company's fiscal year end is August 31.. The filing is from the Water Supply industry (SIC 4941)..

Is PURE CYCLE CORP a risky investment based on this filing?

Based on this 10-Q, PURE CYCLE CORP presents a relatively low-risk profile. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

What should investors do after reading PURE CYCLE CORP's 10-Q?

Review the detailed financial statements and management's discussion and analysis within the 10-Q to assess Pure Cycle Corp's operational performance and financial position. The overall sentiment from this filing is neutral.

How does PURE CYCLE CORP compare to its industry peers?

Pure Cycle Corp operates in the Water Supply industry, focusing on infrastructure and services related to water resources.

Are there regulatory concerns for PURE CYCLE CORP?

As a public company, Pure Cycle Corp is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

Industry Context

Pure Cycle Corp operates in the Water Supply industry, focusing on infrastructure and services related to water resources.

Regulatory Implications

As a public company, Pure Cycle Corp is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

  1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended February 29, 2024.
  2. Read the Management's Discussion and Analysis of Financial Condition and Results of Operations section for insights into performance drivers and trends.
  3. Review any disclosed risk factors or legal proceedings that may impact the company.

Key Dates

Year-Over-Year Comparison

This is the 10-Q filing for the period ending February 29, 2024, providing an update from previous filings.

Filing Stats: 4,545 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-04-10 16:01:01

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets: February 29, 2024 (unaudited) and August 31, 2023 4 Consolidated Statements of Income (unaudited): For the three and six months ended February 29, 2024 and February 28, 2023 5 Consolidated Statements of Shareholders' Equity (unaudited): For the three and six months ended February 29, 2024 and February 28, 2023 6 Consolidated Statements of Cash Flows (unaudited): For the three and six months ended February 29, 2024 and February 28, 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION 30

Issuer Purchases of Equity Securities

Item 2. Issuer Purchases of Equity Securities 30

Exhibits

Item 6. Exhibits 31

SIGNATURES

SIGNATURES 31 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Statements that are not historical facts contained in this Quarterly Report on Form 10-Q are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended ( Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended ( Exchange Act ). The words "anticipate," "seek," "project," "future," "likely," "believe," "may," "should," "could," "will," "estimate," "expect," "plan," "intend" and similar expressions, as they relate to us, are intended to identify forward-looking statements. Forward-looking statements include statements relating to, among other things: future water supply needs in Colorado and how such needs will be met; anticipated revenue from our commercial water sales; anticipated increases in residential and commercial demand for water services and competition for these services; estimated population increases in the Denver metropolitan area and the South Platte River basin; increased demand for single-family rental homes; plans for, and the efficiency of, development of our Sky Ranch property; our competitive advantage; the impact of individual housing and economic cycles on the number of connections we can serve with our water; the number of new water connections needed to recover the costs of our water supplies; the number of units planned for development at Sky Ranch; the timing of the completion of construction and sale of finished lots at Sky Ranch; the number of lots expected to be delivered in a fiscal period; anticipated financial results, including anticipated increases in customers and revenue, from development of our Sky Ranch property; estimated tap fees to be generated from the development of the various phases of Sky Ranch; anticipated expansion and rental dates for our single-family rental homes; anticipated revenues and cash flows from our single-family rental homes; timing of a

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PURE CYCLE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except shares) February 29, 2024 August 31, 2023 ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 20,417 $ 26,012 Short term investments 169 — Trade accounts receivable, net 1,712 1,092 Land under development 3,441 1,726 Income taxes receivable — 551 Prepaid expenses and other assets 637 346 Total current assets 26,376 29,727 Restricted cash 2,880 2,475 Investments in water and water systems, net 57,417 57,798 Construction in progress 6,227 5,457 Single-family rental units 5,171 4,490 Land and mineral rights: Held for development 5,150 4,652 Held for investment purposes 451 451 Other assets 1,036 1,359 Notes receivable – related parties, including accrued interest Reimbursable public improvements and project management fees 28,915 24,999 Other 1,410 1,451 Operating leases - right of use assets 193 357 Total assets $ 135,226 $ 133,216 LIABILITIES: Current liabilities: Accounts payable $ 1,169 $ 1,960 Accrued liabilities 1,338 1,761 Accrued liabilities – related parties 1,086 1,021 Income taxes payable 176 — Deferred lot sale revenues 2,605 1,661 Deferred water sales revenues 31 69 Debt, current portion 33 31 Total current liabilities 6,438 6,503 Debt, less current portion 6,868 6,885 Deferred tax liability, net 1,352 1,352 Lease obligations - operating leases, less current portion 124 242 Total liabilities 14,782 14,982 Commitments and contingencies SHAREHOLDERS' EQUITY: Series B preferred shares: par value $ 0.001 per share, 25 million authorized; 432,513 issued and outstanding (liquidation preference of $ 432,513 ) — — Common shares: par value 1/3 of $.01 per share, 40.0 million authorized; 24,088,734 and 24,078,720 outstanding, respectively 80 80 Additional paid-in capital

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