Pure Cycle Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

SEGMENT INFORMATION

9 Months Ended

May 31, 2024

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, 2024 and 2023, 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:


	Three Months Ended May 31, 2024
(In thousands)	Water and wastewater resource development		Land development		Single-family rental		Total
Total revenue	$	2,465	$	5,016	$	123	$	7,604

Cost of revenue		911		1,346		71		2,328
Depreciation and depletion		410		—		—		410
Total cost of revenue		1,321		1,346		71		2,738

Segment profit	$	1,144	$	3,670	$	52	$	4,866

	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

Cost of revenue		743		1,032		24		1,799
Depreciation and depletion		407		—		—		407
Total cost of revenue		1,150		1,032		24		2,206

Segment profit	$	2,493	$	2,170	$	10	$	4,673


	Nine Months Ended May 31, 2024
(In thousands)	Water and wastewater resource development		Land development		Single-family rental		Total
Total revenue	$	7,562	$	8,268	$	357	$	16,187

Cost of revenue		2,547		2,362		161		5,070
Depreciation and depletion		1,132		—		—		1,132
Total cost of revenue		3,679		2,362		161		6,202

Segment (loss) profit	$	3,883	$	5,906	$	196	$	9,985


	Nine Months Ended May 31, 2023
(In thousands)	Water and wastewater resource development		Land development		Single-family rental		Total
Total revenue	$	5,891	$	5,237	$	90	$	11,218

Cost of revenue		2,125		1,518		53		3,696
Depreciation and depletion		1,246		—		—		1,246
Total cost of revenue		3,371		1,518		53		4,942

Segment profit	$	2,520	$	3,719	$	37	$	6,276

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, short term investments, restricted cash, equipment, and related party notes receivable. Related party notes receivable were not previously presented as Corporate assets and the totals listed as of August 31, 2023 have been updated to reflect the Company’s new presentation.


(In thousands)	May 31, 2024		August 31, 2023
Water and wastewater resource development	$	64,217	$	63,129
Land development		11,043		7,710
Single-family rental		5,257		5,128
Corporate		59,887		57,249
Total assets	$	140,404	$	133,216

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details