Legacy Housing Corporation Reports 2019 First Quarter Results
- Net revenue for the first quarter of 2019 was
$38.0 million, compared to $42.7 millionin the first quarter of 2018, a decrease of $4.7 millionor 11%. The first quarter of 2018 included home sales of approximately $8.9 million as a subcontractor operating under a contract with FEMA. Excluding the FEMAhome sales in 2018, there was a net increase in organic net revenue from the first quarter of 2018 to 2019 of $4.2 million, or a 12.4% improvement.
- Our interest income in the first quarter of 2019 was
$5.5 million, a 25% increase from the $4.4 millionrecorded in the first quarter of 2018.
- Our consumer loan portfolio outstanding principal balance increased by
$1.7 millionnet in the first quarter of 2019 to $98.9 million, inclusive of the allowance for loan loss and other discounts. Our manufactured home park loan portfolio outstanding principal balance increased by $4.6 millionto a total of $62.5 million, an 8% increase from the end of 2018.
- The income tax expense for the first quarter of 2019 was
$2.0 million, compared to approximately $4.0 millionin the same period of 2018. This decrease in tax expense was primarily attributable to the one-time recognition of deferred taxes of $2.1 millionin the first quarter of 2018 related to the partnership conversion to a corporation.
- Net income was
$7.2 millionin the first quarter of 2019, compared to $5.4 millionfor the comparable period in 2018, which equates to a 33% increase in net income.
- Net income per share for the first quarter of 2019, based on basic and diluted weighted average shares outstanding, was
$.29versus $.27for the comparable quarter in 2018.
April 12, 2019, we announced a share buyback program of up to $10 millionof outstanding common stock. On April 17, 2019, the Company purchased 300,000 shares of its common stock at the price of $10.20per share.
This shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Management Conference Call-
Senior management will discuss the results of the first quarter of 2019 in a live webcast and conference call on
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance.
|LEGACY HOUSING CORPORATION|
|BALANCE SHEETS (in thousands)|
|March 31,||December 31,|
|Cash and cash equivalents||$||3,098||$||2,599|
|Prepaid expenses and other current assets||20,666||18,512|
|Total current assets||61,730||63,144|
|Property, plant and equipment, net||17,644||17,128|
|Consumer loans, net of deferred financing fees and allowance for loan losses||93,772||92,230|
|Notes receivable from mobile home parks (“MHP”)||54,207||50,638|
|Other assets and non-current inventory||16,322||11,898|
|Liabilities and Stockholders' Equity|
|Total current liabilities, excluding debt||$||21,622||$||20,157|
|Total long-term debt, including current portion||10,669||17,644|
|Other long-term liabilities||7,962||7,957|
|Total stockholder's equity||203,422||189,280|
|Total liabilities and stockholders' equity||$||243,675||$||235,038|
|LEGACY HOUSING CORPORATION|
|STATEMENTS OF OPERATIONS|
|(in thousands, except share and per share data)|
|Three months ended
|Consumer and MHP loans interest||5,530||4,394|
|Total net revenue||37,954||42,686|
|Cost of product sales||21,885||27,647|
|Selling, general administrative expenses||6,491||4,799|
|Income from operations||9,368||9,905|
|Income before income tax expense||9,221||9,351|
|Income tax expense||(2,008||)||(3,990||)|
|Weighted average shares outstanding:|
|Net income per share:|
Source: Legacy Housing Corporation