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July 6 , 2021 PURE CYCLE Pure Cycle Reports Third Quarter Earnings DENVER , CO / ACCESSWIRE / July 6 , 2021 / Pure Cycle Corporation ( NASDAQ : PCYO ) is reporting results for the three and nine months ended May 31 , 2021. Pure Cycle is reporting net income of more than $ 18.0 million for the nine months ended May 31 , 2021 , generated on $ 12.3 million of revenue , and more than $ 20.0 million of Other Income . The Initial development phase at Sky Ranch is nearly sold out and the second phase is well underway with grading nearing completion . Since we started developing Sky Ranch , 446 or 88 % of the initial phase lots have purchased water and wastewater taps , totaling $ 13.3 million in tap fees . " Grading is nearing completion in the second development phase at Sky Ranch , and we expect to begin delivering the first round of platted lots in the fourth fiscal quarter of 2021 " commented Mark Harding , President of Pure Cycle Mr. Harding . " While COVID did push the start of our second development phase back by about six months , our contractors are making great progress with the dirt work and utilities so we can deliver lots for construction of model homes late in 2021. In addition , we are excited to share the progress our three BTR houses have made in the last few months . The foundation and framing of all houses are complete and we are currently on schedule and on budget , which is an incredible win given the rising prices of raw materials " concluded Mr. Harding . Financial Highlights Revenue - Total revenue increased 44 % compared to the three months ended May 31 , 2020 , primarily due to increased water and wastewater tap sales . Land development revenues are expected to increase beginning in the fourth fiscal quarter , with the delivery of platted lots . Profitability - Profitability increased compared to the three months ended May 31 , 2020 , primarily due to decreased land development construction costs and the additional Other Income and Interest Income related to outstanding reimbursable costs . Working Capital - As of May 31 , 2021 , our working capital was $ 16.5 million , which includes cash of $ 19.8 million . " We continue to drive balance sheet growth with a focus on maintaining strong cash reserves to ensure we have the ability to make the right decisions in a timely manner , " commented Kevin McNeill , Pure Cycle's CFO . " Delays out of our control in the second development phase at Sky Ranch have delayed our revenue recognition and slowed cash flows being generated from operations for the period , but our careful management of assets and costs allow us to avoid debt or other tough decisions companies have been forced to make during this pandemic , " concluded Mr. McNeill . Operational Summary Water and wastewater resource development - Our wholesale water and wastewater service segment continues to grow as houses are sold at Sky Ranch and Wild Pointe and as irrigation and landscaping needs require higher water usage . We delivered 16.5 million