Legacy Housing Corporation Reports 2020 Third Quarter Results
November 16 2020 - 7:15PM
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) 799-4903investors@legacyhousingcorp.com
or
Media Inquiries:Casey Mack, (817)
799-4904pr@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 |
|
Legacy Housing (NASDAQ:LEGH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Legacy Housing (NASDAQ:LEGH)
Historical Stock Chart
From Jul 2023 to Jul 2024