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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Mark Harding

project here is all three of our builders have accelerated their take-downs from their original contract schedules, mostly due to really the success that this project has had. We've had a great entry into the market, mostly because of our price point. Our price point is an entry level price point. Our home start in sort of the kind of the 340, 350 range. As sad as that may sound, that's a starter home in the Denver market, but we have a real mix of homeowners out there. We have had our first sort of shareholder -- homeowner community meeting and got a chance to meet with a number of those folks. We have about 70, a little more than 70 people occupying houses out there and the first Community Meeting was a huge success. I think we had more than 42 homes, represented families from 42 homes represented. I will throw shout out there to KB who gave us one of their model homes for the meeting place there and they gave us some things to snack on there, so I'll give them a shout out, thank them for that. But the project is going great. In addition to the actual occupied homes, we probably got I'd say 120 homes, 130 homes under construction. So I'd say we're right close to 200 homes, either built or under construction.

We've got, I'm going to -- let me pull that back about 180 building permits issued, so can't get started on a home until you have actually got a building permit. We have paid tap fee. So in addition to selling lots as many of you know, we -- our water utility and we keep track of that metric as well. We've got about 217 water and wastewater taps purchased from our homebuilders and then how this is likely to roll out for the rest of this first phase, we'll deliver the remaining 127 lots through calendar year-end. So there is, of those three or four more closings, those are staggered throughout the rest of the year. So you'll see announcements as we get those closed, I'll likely send out a press release for each of those announcements to let everybody know how those are progressing through.

Move to the next slide, Slide 7, that will kind of give you both a visual as well as a numerical representation of the progress since Q1. So you can see we are having a tremendous start and then we're really just getting into the building season. So we've got a number of new homes, I'd say 70 residents as we were describing. And I think home builders are averaging about six homes per month per builder. So that absorption has been very exciting over the winter. We'll see how that continues to progress in this new environment that we're in and we'll talk a little bit more about that later in the presentation. Move to Slide 8. Slide 8 will really kind of