Legacy Housing Corporation Reports 2020 Second Quarter Results

August 13, 2020

BEDFORD, Texas, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (NASDAQ: LEGH) today announced its financial results for the second quarter ended June 30, 2020.

Financial Highlights:

  • Revenue for the second quarter of 2020 was $46.0 million, which was a slight improvement from the net revenue of $45.8 million in the second quarter of 2019.
  • Interest income in the second quarter of 2020 was $6.1 million, a nearly 20% increase from the $5.1 million recorded in the second quarter of 2019.
  • Income from operations in the second quarter of 2020 was $11.2 million, which was substantially unchanged from the $11.5 million in the second quarter of 2019.
  • Selling, general and administrative expense in the second quarter of 2020 was $4.1 million, a 33.9% decrease from the $6.1 million in the second quarter of 2019. This was due to a reduction in payroll costs, advertising and dealer show expenses, and warranty service costs as well as certain second quarter 2019 retail store expenses that were subsequently reclassified and recorded into cost of sales in the latter part of 2019.
  • Total inventory reduced by $6.1 million or 13.6% to $38.9 million in the second quarter of 2020 compared to $45.0 million in the second quarter of 2019.
  • The manufactured home park loan portfolio increased by $16.8 million or 16.3% to $120.1 million for second quarter 2020 compared to $103.3 million for first quarter 2020. The consumer loan portfolio increased to $107.2 million, inclusive of the allowance for loan loss and other discounts, compared to $105.6 million for the first quarter 2020.
  • Net income in the second quarter of 2020 was consistent with the second quarter of 2019 with both quarters delivering earnings of $8.6 million. Year to date net income has increased by $1.8 million or 11.2% to $17.6 million for the six months ended June 30, 2020 compared to $15.8 million for the same period last year.
  • Earnings per share for the second quarter of 2020, based on diluted weighted average shares outstanding, was $0.36 on 24,201,823 diluted outstanding shares versus $0.35 on 24,369,890 diluted outstanding shares for the comparable quarter in 2019. Similarly, earnings per share for the six months ended June 30, 2020 were $0.73 compared to $0.65 for the same period last year.

Curtis D. Hodgson, Executive Chairman of the Board, commented, “We are pleased with the results of the second quarter of 2020, which included a continuation of the strong growth in financed sales to manufactured home parks. Additionally, the company took proactive steps during the first and second quarter of 2020 to navigate the COVID-19 environment by reducing costs and gaining operational flexibility in our manufacturing operations. Over the last six months we have increased the tangible book value of the company by approximately 8% for our shareholders despite the headwinds of the current economy. We believe that manufactured housing presents a compelling, long-term solution for the ongoing lack of affordable housing in the United States, and the Company is well-positioned to take advantage of this market.

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 2020 in a live webcast and conference call on Friday, August 14, 2020 at 10:00 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/mmc/p/sepkcxov, 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 4267224 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)
 
    June 30   December 31
    2020   2019
Assets                
Cash and cash equivalents   $ 1,024     $ 1,724  
Inventories     26,377       27,228  
Prepaid expenses and other current assets     22,103       24,015  
Total current assets     49,504       52,967  
Property, plant and equipment, net     21,320       21,038  
Consumer loans, net of deferred financing fees and allowance for loan losses     102,166       99,048  
Notes receivable from mobile home parks (“MHP”)     108,274       81,375  
Other assets and non-current inventory     30,920       29,192  
Total assets   $ 312,184     $ 283,620  
Liabilities and Stockholders' Equity                
Total current liabilities, excluding debt   $ 28,556     $ 23,073  
Total long-term debt, including current portion     37,535       30,861  
Other long-term liabilities     7,367       7,297  
Total stockholder's equity     238,726       222,389  
Total liabilities and stockholders' equity   $ 312,184     $ 283,620  


LEGACY HOUSING CORPORATION
STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
                         
    Three Months Ended June 30   Six Months Ended June 30
    2020   2019   2020   2019
Net revenue:                        
Product sales   $ 39,179     $ 39,766     $ 70,375     $ 71,316  
Consumer and MHP loans interest     6,067       5,112       12,491       10,642  
Other     760       883       1,414       1,757  
Total net revenue     46,006       45,761       84,280       83,715  
Operating expenses:                        
Cost of product sales     30,557       27,876       52,416       49,760  
Selling, general administrative expenses     4,064       6,144       9,676       12,635  
Dealer incentive     186       239       380       449  
Income from operations     11,199       11,502       21,808       20,871  
Other expense     (13 )     (81 )     997       (229 )
Income before income tax expense     11,186       11,421       22,805       20,642  
Income tax expense     (2,590 )     (2,788 )     (5,186 )     (4,796 )
Net income   $ 8,596     $ 8,633     $ 17,619     $ 15,846  
Weighted average shares outstanding:                        
Basic     24,201,220       24,369,890       24,260,274       24,442,921  
Diluted     24,201,823       24,369,890       24,260,938       24,457,967  
Net income per share:                        
Basic   $ 0.36     $ 0.35     $ 0.73     $ 0.65  
Diluted   $ 0.36     $ 0.35     $ 0.73     $ 0.65  



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Source: Legacy Housing Corporation

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