Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.1
SEGMENT INFORMATION
6 Months Ended
Feb. 28, 2023
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 12 – 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 six months ended February 28, 2023 and 2022, 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 February 28, 2023

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

1,445

    

$

1,514

$

31

    

$

2,990

Cost of revenue

 

659

 

262

 

19

 

940

Depreciation and depletion

 

461

 

 

 

461

Total cost of revenue

 

1,120

 

262

 

19

 

1,401

Segment profit

$

325

$

1,252

$

12

$

1,589

Three Months Ended February 28, 2022

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

2,809

$

1,829

$

26

$

4,664

Cost of revenue

 

810

 

341

 

4

 

1,155

Depreciation and depletion

 

352

 

 

 

352

Total cost of revenue

 

1,162

 

341

 

4

 

1,507

Segment profit

$

1,647

$

1,488

$

22

$

3,157

Six Months Ended February 28, 2023

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

2,239

    

$

2,035

$

56

    

$

4,330

Cost of revenue

 

1,382

 

477

 

29

 

1,888

Depreciation and depletion

 

839

 

 

 

839

Total cost of revenue

 

2,221

 

477

 

29

 

2,727

Segment (loss) profit

$

18

$

1,558

$

27

$

1,603

Six Months Ended February 28, 2022

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

3,880

$

5,022

$

34

$

8,936

Cost of revenue

 

1,306

 

872

 

7

 

2,185

Depreciation and depletion

 

706

 

 

 

706

Total cost of revenue

 

2,012

 

872

 

7

 

2,891

Segment profit

$

1,868

$

4,150

$

27

$

6,045

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, cash equivalents, restricted cash, equipment, and related party notes receivables.

(In thousands)

    

February 28, 2023

    

August 31, 2022

Water and wastewater resource development

$

63,349

$

63,064

Land development

30,276

25,522

Single-family rental

3,688

1,715

Corporate

28,101

38,928

Total assets

$

125,414

$

129,229