Pure Cycle Corp (NASDAQ:PCYO) Q2 2020 Earnings Conference Call - Final Transcript

Apr 07, 2020 • 04:00 pm ET


Pure Cycle Corp (NASDAQ:PCYO) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Pure Cycle Corporation 2020 Second Quarter and Six Month Financial Conference.

[Operator Instructions]

It is now my pleasure to introduce you to your speaker Mark Harding. Thank you, Mr. Harding, you may begin.

Mark Harding

Thank you. And I'd like to welcome you all to our second quarter call. Some housekeeping measures. We do have a slide deck for this. So if you want to log into our website, it should be on the front landing page. It'll just say Second Quarter Presentation. If you don't see it there, then you can surf over to the Investors section and there'll be a link there as well. So that will allow you to follow along with the presentation and the prepared remarks. And I'm going to beg forgiveness for those of you who are new to the company, probably just jump into sort of the quarter-end, without giving kind of the overview typical overview of the company. We've got some excellent resources on our website if you're new to the company and want to get a little bit more color about sort of how we do things and how we got to where we are. There's a couple of podcasts on there that will give you that presentation.

But with that, let me go ahead and start the call here. And the first thing I need to do is while I said I was going to go through the presentation quickly I got to get through at least the second slide, which is to get the lawyers out of the room saying that this is our safe harbor statement, then really these are forward leading statements not intended to be policy or direction or guidance to our investors.

So with that I'm going to scroll you guys down to Slide 6 and really start by giving you all an update into our land development segment and give you kind of an update of the activity that we've had. As you all know, we've got a very large master-planned community located in the I-70 corridor here in the Denver metropolitan area. We even embarked on our first phase of that which includes a little over 500 lots. We have three national homebuilders that are under contract for all of our homes or all our lots on that. We have Richmond America, Taylor Morrison and KB, and all three of them are very active in building homes out there. We have, of the 506 lots, I think we've delivered about 380 of the 506 lots. So there is really just two more take-downs. I think Richmond has taken down all of their lots. Taylor Morrison has one more takedown requirement, one more takedown of lots which will be about 49 lots.

And then I think KB has another 50 lots and they're going to be plus or minus, maybe a little bit more than 50 lots. I think they've got maybe two more takedown schedules. The real nice thing about our