Pure Cycle Corp. Files 10-Q for Nov 30, 2024

Ticker: PCYO · Form: 10-Q · Filed: 2025-01-08T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, water-supply

TL;DR

Pure Cycle Corp 10-Q filed. Financials for Nov 30, 2024 quarter out.

AI Summary

Pure Cycle Corp. filed its 10-Q for the period ending November 30, 2024. The company, incorporated in Colorado, operates in the Water Supply sector. Its principal executive offices are located in Watkins, Colorado. The filing covers the fiscal quarter and nine months ended November 30, 2024.

Why It Matters

This filing provides investors with an update on Pure Cycle Corp.'s financial performance and operational status for the recent quarter, crucial for assessing the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Numbers

Key Players & Entities

FAQ

What is Pure Cycle Corp.'s primary business sector?

Pure Cycle Corp. operates in the Water Supply sector, with Standard Industrial Classification code 4941.

When is Pure Cycle Corp.'s fiscal year end?

Pure Cycle Corp.'s fiscal year ends on August 31st.

What is the filing date for this 10-Q?

This 10-Q filing was made on January 8, 2025.

What is the address of Pure Cycle Corp.'s principal executive offices?

The company's business address is 34501 E. QUINCY AVE, BLDG. 34, WATKINS, CO 80137.

What period does this 10-Q report cover?

This 10-Q report covers the period ended November 30, 2024.

Filing Stats: 4,492 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-01-08 16:00:35

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets: November 30, 2024 (unaudited) and August 31, 2024 4 Consolidated Statements of Income (unaudited): For the three months ended November 30, 2024 and 2023 5 Consolidated Statements of Shareholders' Equity (unaudited): For the three months ended November 30, 2024 and 2023 6 Consolidated Statements of Cash Flows (unaudited): For the three months ended November 30, 2024 and 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 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

Item 4. Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Exhibits

Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 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," "potential" 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 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; 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 revenue and cash flows from our single-family rental homes; timing of and interpreta

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PURE CYCLE CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except shares) November 30, 2024 August 31, 2024 ASSETS: (unaudited) Current assets: Cash and cash equivalents $ 19,031 $ 22,113 Trade accounts receivable, net 4,993 1,472 Prepaid expenses and other assets 460 530 Land under development 3,718 3,647 Reimbursable public improvements and project management fees — 10,100 Total current assets 28,202 37,862 Restricted cash 5,336 3,245 Investments in water and water systems, net 63,773 60,486 Construction in progress 2,584 3,161 Single-family rental units 5,003 5,059 Land and mineral rights: Held for development 5,993 3,683 Held for investment purposes 451 451 Other assets 1,365 1,164 Notes receivable – related parties, including accrued interest Reimbursable public improvements and project management fees 35,580 30,864 Other 1,247 1,221 Operating leases - right of use assets 154 158 Total assets $ 149,688 $ 147,354 LIABILITIES: Current liabilities: Accounts payable $ 2,230 $ 1,948 Accrued liabilities 1,181 1,514 Accrued liabilities – related parties 1,091 2,208 Income taxes payable 2,712 1,442 Deferred lot sales revenue 537 2,173 Debt, current portion 161 64 Total current liabilities 7,912 9,349 Debt, less current portion 6,719 6,821 Deferred tax liability, net 1,395 1,395 Lease obligations - operating leases, less current portion 75 87 Total liabilities 16,101 17,652 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; 24,076,909 and 24,063,894 outstanding, respectively 80 80 Additional paid-in capital 175,181 175,125 Accumula

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) November 30, 2024 NOTE 1 – PRESENTATION OF INTERIM INFORMATION The accompanying unaudited consolidated financial statements have been prepared by Pure Cycle Corporation (the "Company" or "Pure Cycle") and include all adjustments that are of a normal recurring nature and are in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company as of and for the three months ended November 30, 2024 and 2023. The August 31, 2024 balance sheet was derived from the Company's audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. It is suggested the accompanying consolidated financial statements and notes be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended August 31, 2024 ("2024 Annual Report") filed with the Securities and Exchange Commission ("SEC") on November 13, 2024. The results of operations for interim periods presented are not necessarily indicative of the operating results expected for the full fiscal year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used to account for certain items such as revenue recognition, dollar amount of reimbursable costs and collectability of reimbursable costs, costs of revenue for lot sales, share-based compensation, and the useful lives and recoverability of long

View on Read The Filing