Legacy Housing Corporation Reports 2019 Second Quarter Results

BEDFORD, Texas, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (NASDAQ: LEGH) today announced its financial results for the second quarter ended June 30, 2019.

Financial Highlights:

  • Revenue for the second quarter of 2019 was $45.8 million, compared to $44.0 million in the second quarter of 2018, an increase of $1.8 million or 4%.
  • Gross margin percentage increased to 29.9% from 23.2% from the prior year as a result of price increases, increased sales to manufactured home parks, and increased company-owned retail sales directly to consumers.
  • The manufactured home park loan portfolio increased by $14.1 million to a total of $72.0 million, an increase of 24% from the end of 2018. The consumer loan portfolio increased to $101.0 million, inclusive of the allowance for loan loss and other discounts.
  • Earnings before taxes grew $2.5 million or 28% to $11.4 million in the second quarter compared to the prior year quarter. Net income was $8.6 million in the second quarter of 2019, compared to $6.9 million for the comparable period in 2018, a 25% increase in net income.
  • The Company’s revenue and net income increases came exclusively from organic growth.
  • Earnings per share for the second quarter of 2019, based on diluted weighted average shares outstanding, was $0.35 on 24,369,890 diluted outstanding shares versus $0.34 on 20,000,000 outstanding shares for the comparable quarter in 2018. The increase in shares reflects those shares sold pursuant to the Company’s successful initial public offering.

Curtis D. Hodgson, Executive Chairman of the Board, commented, “We are pleased with the results of the second quarter of 2019, which included a continuation of the strong growth in financed sales to manufactured home parks we experienced in the first quarter. We believe manufactured housing presents a compelling solution for the ongoing lack of affordable housing in the United States, and the Company is well-positioned to take advantage of this market. We continue to see strong order flow and believe this will continue into the third quarter and the remainder of the year.”

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- August 14 at 10 AM (Central Time)

Senior management will discuss the results of the second quarter of 2019 in a live webcast and conference call on Wednesday, August 14, 2019 at 10:00 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/mmc/p/u7823cke, 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 5689726 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:
Neal Suit, (817) 799-4906


Media Inquiries:
Casey Mack, (817) 799-4904

BALANCE SHEETS (in thousands)
  June 30, December 31,
  2019 2018
Cash and cash equivalents $2,422  $2,599 
Inventories  33,584   42,033 
Prepaid expenses and other current assets  20,723   18,512 
Total current assets  56,729   63,144 
Property, plant and equipment, net  18,041   17,128 
Consumer loans, net of deferred financing fees and allowance for loan losses  95,772   92,230 
Notes receivable from mobile home parks (“MHP”)  62,830   50,638 
Other assets and non-current inventory  18,444   11,898 
Total assets $251,816  $235,038 
Liabilities and Stockholders' Equity        
Total current liabilities, excluding debt $22,019  $20,157 
Total long-term debt, including current portion  12,586   17,644 
Other long-term liabilities  8,029   7,957 
Total stockholder's equity  209,182   189,280 
Total liabilities and stockholders' equity $251,816  $235,038 

(in thousands, except share and per share data)
  Three Months Ended June 30, Six months ended June 30,
  2019 2018 2019 2018
Net revenue:            
Product sales $39,766  $38,188  $71,316  $75,602 
Consumer and MHP loans interest  5,112   4,504   10,642   8,897 
Other  883   1,314   1,757   2,191 
Total net revenue  45,761   44,006   83,715   86,690 
Operating expenses:            
Cost of product sales  27,876   29,335   49,760   56,981 
Selling, general administrative expenses  6,144   5,175   12,635   9,974 
Dealer incentive  239   2   449   337 
Income from operations  11,502   9,494   20,871   19,398 
Other expense  (81)  (560)  (229)  (1,114)
Income before income tax expense  11,421   8,934   20,642   18,284 
Income tax expense  (2,788)  (2,046)  (4,796)  (6,036)
Net income $8,633  $6,888  $15,846  $12,248 
Weighted average shares outstanding:            
Basic  24,369,890   20,000,000   24,442,921   20,000,000 
Diluted  24,369,890   20,000,000   24,457,967   20,000,000 
Net income per share:            
Basic $0.35  $0.34  $0.65  $0.61 
Diluted $0.35  $0.34  $0.65  $0.61