Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION

v3.23.2
SEGMENT INFORMATION
9 Months Ended
May 31, 2023
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 11 – 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 nine months ended May 31, 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 May 31, 2023

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

3,643

    

$

3,202

$

34

    

$

6,879

Cost of revenue

 

743

 

1,032

 

24

 

1,799

Depreciation and depletion

 

407

 

 

 

407

Total cost of revenue

 

1,150

 

1,032

 

24

 

2,206

Segment profit

$

2,493

$

2,170

$

10

$

4,673

Three Months Ended May 31, 2022

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

2,011

$

1,151

$

25

$

3,187

Cost of revenue

 

748

 

288

 

9

 

1,045

Depreciation and depletion

 

349

 

 

 

349

Total cost of revenue

 

1,097

 

288

 

9

 

1,394

Segment profit

$

914

$

863

$

16

$

1,793

Nine Months Ended May 31, 2023

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

    

$

5,882

    

$

5,237

$

90

    

$

11,209

Cost of revenue

 

2,125

 

1,509

 

53

 

3,687

Depreciation and depletion

 

1,246

 

 

 

1,246

Total cost of revenue

 

3,371

 

1,509

 

53

 

4,933

Segment (loss) profit

$

2,511

$

3,728

$

37

$

6,276

Nine Months Ended May 31, 2022

(In thousands)

    

Water and wastewater resource development

    

Land development

Single-family rental

    

    Total

Total revenue

$

5,891

$

6,173

$

59

$

12,123

Cost of revenue

 

2,054

 

1,160

 

16

 

3,230

Depreciation and depletion

 

1,055

 

 

 

1,055

Total cost of revenue

 

3,109

 

1,160

 

16

 

4,285

Segment profit

$

2,782

$

5,013

$

43

$

7,838

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)

    

May 31, 2023

    

August 31, 2022

Water and wastewater resource development

$

63,936

$

63,064

Land development

29,352

25,522

Single-family rental

4,856

1,715

Corporate

30,021

38,928

Total assets

$

128,165

$

129,229