John Rosenberg's questions to Pure Cycle Corp (PCYO) leadership • Q3 2024
Question
John Rosenberg asked for a detailed explanation of the public improvement receivable, including how it functions, the potential for accelerated payments, and where to locate it in the financial statements. He also inquired about the current student enrollment at the Sky Ranch Academy.
Answer
Executive Mark Harding explained that the public improvement receivable represents the cost of infrastructure Pure Cycle builds that is then owned by government entities. Repayment occurs through bond offerings backed by the growing property tax base of the developed homes. Harding noted these payments are lumpy but can be tracked via the note receivable and the statement of cash flows, and he projected a potential $8 million bond refinancing later in the year. He also stated that Sky Ranch Academy's enrollment is currently around 500 students.