The following is a summary of the Pure Cycle Corporation (PCYO) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Pure Cycle Corporation reported Q1 2024 revenues of nearly $5.4 million and gross margins of approximately 62%.

• The company recorded a net income of over $2 million and earnings per share of $0.09.

• Three key business segments, water and wastewater, land development, and single-family rental contributed to the revenues, with strong margins from each of these segments.

• The water/wastewater segment holds over $2 billion in top-line revenue, and the Sky Ranch land development project holds more than $500 million in value.

• Increased revenue in Q1 2024 due to high demand for single-family rental units.

Business Progress:

• The water/wastewater segment can provide 60,000 single-family connections, with an existing system that can deliver around 2,500 connections.

• The Sky Ranch land development project is generating value, and the developing single-family rental segment is starting to contribute, with approximately 30% equity value per completed home.

• The company plans to accelerate investment in each business segment and pursue acquisitions to add to the portfolio.

• The single-family rental segment plans to grow to 200 planned units in the community.

• The company continues their work on projects despite temperature constraints. Streets, curbs, and gutters are expected to be installed by April.

• Commercial development is ongoing, with more interest from the industrial side and plans for a new highway interchange.

• The acceleration of recurring revenue is expected through the growing single-family rental side, with new connections being added each month.

• The company has increased its single-family rentals in Phase 2 from 40 to 90, leveraging their income and financing strategy.

More detailed: Pure Cycle IR

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