Legacy Housing Corporation Reports 2020 Third Quarter Results

Bedford, Texas, UNITED STATES


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