Legacy Housing Corporation Reports 2020 First Quarter Results
- Net revenue for the first quarter of 2020 was
$38.3 million, which was a slight improvement from the net revenue of $37.9 millionearned in the first quarter of 2019.
- Our interest income in the first quarter of 2020 was approximately
$6.4 million, a 16% increase from the $5.5 millionrecorded in the first quarter of 2019.
- Our consumer loan portfolio outstanding principal balance increased by
$0.6 million net in the first quarter of 2020 to $105.6 million, inclusive of the allowance for loan loss and other discounts. Our manufactured home park loan portfolio outstanding principal balance increased by $10.9 million to a total of $103.3 million, an approximately 12% increase from the end of 2019. Between March 31, 2019and March 31, 2020our consumer loan portfolio increased by $6.7 million and our commercial loan portfolio increased by $40.7 million.
- The income before tax expense was
$11.6 millionin the first quarter of 2020, a 26% increase from the $9.2 millionin income before tax expense for the first quarter of 2019.
- SG&A decreased in the first quarter of 2020 to approximately
$5.6 million, which is a 14% decrease from the first quarter of 2019 due to a reduction of fees paid for professional services, consulting, and advertising and marketing, and first quarter 2019 retail store expenses that were subsequently recorded into cost of sales in the latter part of 2019.
- Net income was approximately
$9.0 millionin the first quarter of 2020, compared to $7.2 millionfor the comparable period in 2019, which equates to a 25% increase in net income. The net income for the first quarter of 2020 included a one-time event in which the Company received $1.075 millionrelated to the settlement of a lawsuit against a former vendor for the Company.
- Earnings per share for the first quarter of 2020, based on diluted weighted average shares outstanding, was
$0.37on 24,361,083 diluted outstanding shares versus $0.29on 24,571,088 outstanding shares for the comparable quarter in 2019. On a pro-forma basis, excluding the one-time gain on settlement in the first quarter of 2020, the earnings per share was $0.33.
This shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Management Conference Call-
Senior management will discuss the results of the first quarter of 2020 in a live webcast and conference call on
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance.
|BALANCE SHEETS (in thousands)|
|Cash and cash equivalents||$||3,717||$||1,724|
|Prepaid expenses and other current assets||22,737||24,015|
|Total current assets||57,977||52,967|
|Property, plant and equipment, net||21,124||21,038|
|Consumer loans, net of deferred financing fees and allowance for loan losses||99,448||99,048|
|Notes receivable from mobile home parks (“MHP”)||93,827||81,375|
|Other assets and non-current inventory||29,242||29,192|
|Liabilities and Stockholders' Equity|
|Total current liabilities, excluding debt||$||24,474||$||23,073|
|Total long-term debt, including current portion||39,027||30,861|
|Other long-term liabilities||7,288||7,297|
|Total stockholder's equity||230,829||222,389|
|Total liabilities and stockholders' equity||$||301,618||$||283,620|
|STATEMENTS OF OPERATIONS|
|(in thousands, except share and per share data)|
|Three months ended
|Consumer and MHP loans interest||6,424||5,530|
|Total net revenue||38,273||37,954|
|Cost of product sales||21,858||21,885|
|Selling, general administrative expenses||5,612||6,491|
|Income from operations||10,609||9,368|
|Income before income tax expense||11,621||9,221|
|Income tax expense||(2,596)||(2,008)|
|Weighted average shares outstanding:|
|Net income per share:|
Source: Legacy Housing Corporation