| SEGMENT INFORMATION |
NOTE 11 – SEGMENT INFORMATION
The Company reports two operating segments which meet segment disclosure requirements, the water and wastewater resource development segment and the land development segment. The single-family rentals, although not currently material to operations and not a required segment disclosure, is presented within the operating segment information below for informational purposes.
The water and wastewater resource development segment includes providing water and wastewater services to customers, which water is provided by the Company using water rights owned or controlled by the Company, and developing, operating, and maintaining infrastructure to divert, treat and distribute that water and collect, treat and reuse reclaimed wastewater. The land development segment includes all activities necessary to develop and sell finished lots, which for the three and nine months ended May 31, 2023 and 2022, was done exclusively at the Company’s Sky Ranch Master Planned Community. The single-family rental business includes the monthly rental fees received from the renters under the non-cancellable annual leases.
The tables below present the measure of profit and assets used to assess the performance of the two required segments and the single-family rentals that the Company believes will become a segment for the periods presented:
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Three Months Ended May 31, 2023 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Total |
Total revenue |
|
$ |
3,643 |
|
$ |
3,202 |
|
$ |
34 |
|
$ |
6,879 |
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|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
743 |
|
|
1,032 |
|
|
24 |
|
|
1,799 |
Depreciation and depletion |
|
|
407 |
|
|
— |
|
|
— |
|
|
407 |
Total cost of revenue |
|
|
1,150 |
|
|
1,032 |
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|
24 |
|
|
2,206 |
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|
|
|
|
|
|
|
|
|
|
|
|
Segment profit |
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$ |
2,493 |
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$ |
2,170 |
|
$ |
10 |
|
$ |
4,673 |
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|
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|
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|
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Three Months Ended May 31, 2022 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Total |
Total revenue |
|
$ |
2,011 |
|
$ |
1,151 |
|
$ |
25 |
|
$ |
3,187 |
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|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
748 |
|
|
288 |
|
|
9 |
|
|
1,045 |
Depreciation and depletion |
|
|
349 |
|
|
— |
|
|
— |
|
|
349 |
Total cost of revenue |
|
|
1,097 |
|
|
288 |
|
|
9 |
|
|
1,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit |
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$ |
914 |
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$ |
863 |
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$ |
16 |
|
$ |
1,793 |
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Nine Months Ended May 31, 2023 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
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Total |
Total revenue |
|
$ |
5,882 |
|
$ |
5,237 |
|
$ |
90 |
|
$ |
11,209 |
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|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
2,125 |
|
|
1,509 |
|
|
53 |
|
|
3,687 |
Depreciation and depletion |
|
|
1,246 |
|
|
— |
|
|
— |
|
|
1,246 |
Total cost of revenue |
|
|
3,371 |
|
|
1,509 |
|
|
53 |
|
|
4,933 |
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|
|
|
|
|
|
|
|
|
|
|
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Segment (loss) profit |
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$ |
2,511 |
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$ |
3,728 |
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$ |
37 |
|
$ |
6,276 |
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Nine Months Ended May 31, 2022 |
(In thousands) |
|
Water and wastewater resource development |
|
Land development |
|
Single-family rental |
|
Total |
Total revenue |
|
$ |
5,891 |
|
$ |
6,173 |
|
$ |
59 |
|
$ |
12,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
2,054 |
|
|
1,160 |
|
|
16 |
|
|
3,230 |
Depreciation and depletion |
|
|
1,055 |
|
|
— |
|
|
— |
|
|
1,055 |
Total cost of revenue |
|
|
3,109 |
|
|
1,160 |
|
|
16 |
|
|
4,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit |
|
$ |
2,782 |
|
$ |
5,013 |
|
$ |
43 |
|
$ |
7,838 |
The following table summarizes the Company’s total assets by segment. The assets consist of water rights and water and wastewater systems in the Company’s water and wastewater resource development segment; land, land development costs and deposits in the Company’s land development segment; and the cost of the homes in the single-family rental line. The Company’s other assets (Corporate) primarily consist of cash, cash equivalents, restricted cash, equipment, and related party notes receivables.
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(In thousands) |
|
May 31, 2023 |
|
August 31, 2022 |
Water and wastewater resource development |
|
$ |
63,936 |
|
$ |
63,064 |
Land development |
|
|
29,352 |
|
|
25,522 |
Single-family rental |
|
|
4,856 |
|
|
1,715 |
Corporate |
|
|
30,021 |
|
|
38,928 |
Total assets |
|
$ |
128,165 |
|
$ |
129,229 |
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