Legacy Housing Corporation Reports 2020 Third Quarter Results

Legacy Housing Corporation Reports 2020 Third Quarter Results




Legacy Housing Corporation Reports 2020 Third Quarter Results

BEDFORD, Texas, Nov. 16, 2020 (GLOBE NEWSWIRE) — Legacy Housing Corporation (NASDAQ: LEGH) today announced its financial results for the third quarter ended September 30, 2020.

Financial Highlights:

  • Revenue for the third quarter of 2020 was $43.7 million, which was an increase of $1.8 million and a 4.3% improvement from the net revenue of $41.9 million in the third quarter of 2019.
  • Interest income from both the consumer loan and mobile home park loan portfolios in the third quarter of 2020 was $6.4 million, a 13.0% increase from the $5.7 million recorded in the third quarter of 2019.
  • Income from operations in the third quarter of 2020 was $10.8 million, which was a $2.8 million increase and a 34.5% improvement from the $8.1 million reported in the third quarter of 2019. On a trailing twelve month basis, income from operations has increased by $10.4 million or 31.4%.
  • Selling, general and administrative expense in the third quarter of 2020 was $4.5 million, a 28.1% decrease of $1.8 million from the $6.3 million in the third quarter of 2019. This was due to a reduction in payroll costs, bad debt expense and loan loss provision, warranty service costs, and consulting and professional expenses.
  • Total inventory was reduced by $2.3 million or 5.7% to $38.0 million in the third quarter of 2020 compared to $40.3 million in the third quarter of 2019.
  • Net income in the third quarter of 2020 increased by $2.3 million to $8.4 million or 37.6% compared to $6.1 million in third quarter 2019.
  • Earnings per share for the third quarter of 2020, based on diluted weighted average shares outstanding, was $0.35 on 24,214,279 diluted outstanding shares versus $0.25 on 24,338,839 diluted outstanding shares for the comparable quarter in 2019.
  • Curtis D. Hodgson, Executive Chairman of the Board, commented, “We are pleased with the results of the third quarter of 2020, especially in our ability to outperform 2019 earnings results despite the challenges of 2020. Demand for mobile housing remains strong as we look to finishing out the remainder of the year. Over the last twelve months, we have increased tangible book value by $1.42 per share.”

This shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Management Conference Call – November 17 at 10 AM (Central Time)

Senior management will discuss the results of the third quarter of 2020 in a live webcast and conference call on Tuesday, November 17, 2020 at 10:00 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/mmc/p/zc7af25t which will also be accessible via www.legacyhousingUSA.com under the Investors link. In order to dial in, please call in at (866) 952-6347 and enter Conference ID 8382528 when prompted. Please try to join the webcast or call at least ten minutes prior to the scheduled start time.

About Legacy Housing Corporation

Legacy Housing Corporation builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores and are sold directly to manufactured housing communities. We are the fourth largest producer of manufactured homes in the United States as ranked by number of homes manufactured based on the information available from the Manufactured Housing Institute. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $22,000 to $120,000.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Legacy Housing undertakes no obligation to update any such forward-looking statements after the date hereof, except as required by law. Investors should not place any reliance on any such forward-looking statements.

Investor Inquiries:
Shane Allred, Director of Financial Reporting, (817) 799-4903
investors@legacyhousingcorp.com

or

Media Inquiries:
Casey Mack, (817) 799-4904
pr@legacyhousingcorp.com

LEGACY HOUSING CORPORATION
BALANCE SHEETS (in thousands)
(Unaudited)
 
    September 30   December 31, 
    2020   2019
Assets                
Cash and cash equivalents   $ 1,643     $ 1,724  
Inventories     27,852       27,228  
Prepaid expenses and other current assets     26,175       24,015  
Total current assets     55,670       52,967  
Property, plant and equipment, net     22,445       21,038  
Consumer loans, net of deferred financing fees and allowance for loan losses     103,406       99,048  
Notes receivable from mobile home parks (“MHP”)     116,842       81,375  
Other assets and non-current inventory     30,017       29,192  
Total assets   $ 328,380     $ 283,620  
Liabilities and Stockholders’ Equity                
Total current liabilities, excluding debt   $ 28,139     $ 23,073  
Total long-term debt, including current portion     43,820       30,861  
Other long-term liabilities     7,764       7,297  
Total stockholder’s equity     248,657       222,389  
Total liabilities and stockholders’ equity   $ 328,380     $ 283,620  

LEGACY HOUSING CORPORATION
STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
                         
    Three Months Ended September 30   Six Months Ended September 30
    2020   2019   2020   2019
Net revenue:                        
Product sales   $ 36,566     $ 35,355     $ 106,940     $ 106,671  
Consumer and MHP loans interest     6,428       5,688       18,919       16,330  
Other     749       893       2,163       2,650  
Total net revenue     43,743       41,936       128,022       125,651  
Operating expenses:                        
Cost of product sales     27,839       27,504       78,387       77,265  
Selling, general administrative expenses     4,525       6,293       14,202       18,928  
Dealer incentive     550       85       929       534  
Income from operations     10,829       8,054       34,504       28,924  
Other expense     103       (21 )     1,100       (249 )
Income before income tax expense     10,932       8,033       35,604       28,675  
Income tax expense     (2,486 )     (1,895 )     (8,097 )     (6,691 )
Net income   $ 8,446     $ 6,138     $ 27,507     $ 21,984  
Weighted average shares outstanding:                        
Basic     24,192,157       24,317,143       24,237,402       24,400,534  
Diluted     24,214,279       24,338,839       24,243,927       24,421,355  
Net income per share:                        
Basic   $ 0.35     $ 0.25     $ 1.13     $ 0.90  
Diluted   $ 0.35     $ 0.25     $ 1.13     $ 0.90