Legacy Housing Corporation Reports 2020 Second Quarter Results
- Revenue for the second quarter of 2020 was
$46.0 million, which was a slight improvement from the net revenue of $45.8 millionin 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 millionrecorded 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 millionin 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 millionin 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 millionor 13.6% to $38.9 millionin the second quarter of 2020 compared to $45.0 millionin the second quarter of 2019.
- The manufactured home park loan portfolio increased by
$16.8 millionor 16.3% to $120.1 millionfor second quarter 2020 compared to $103.3 millionfor 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 millionfor 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 millionor 11.2% to $17.6 millionfor the six months ended June 30, 2020compared to $15.8 millionfor the same period last year.
- Earnings per share for the second quarter of 2020, based on diluted weighted average shares outstanding, was
$0.36on 24,201,823 diluted outstanding shares versus $0.35on 24,369,890 diluted outstanding shares for the comparable quarter in 2019. Similarly, earnings per share for the six months ended June 30, 2020were $0.73compared to $0.65for the same period last year.
This shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Management Conference Call-
Senior management will discuss the results of the second quarter of 2020 in a live webcast and conference call on
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance.
|BALANCE SHEETS (in thousands)|
|Cash and cash equivalents||$||1,024||$||1,724|
|Prepaid expenses and other current assets||22,103||24,015|
|Total current assets||49,504||52,967|
|Property, plant and equipment, net||21,320||21,038|
|Consumer loans, net of deferred financing fees and allowance for loan losses||102,166||99,048|
|Notes receivable from mobile home parks (“MHP”)||108,274||81,375|
|Other assets and non-current inventory||30,920||29,192|
|Liabilities and Stockholders' Equity|
|Total current liabilities, excluding debt||$||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|
|STATEMENTS OF OPERATIONS|
|(in thousands, except share and per share data)|
|Three Months Ended
||Six Months Ended
|Consumer and MHP loans interest||6,067||5,112||12,491||10,642|
|Total net revenue||46,006||45,761||84,280||83,715|
|Cost of product sales||30,557||27,876||52,416||49,760|
|Selling, general administrative expenses||4,064||6,144||9,676||12,635|
|Income from operations||11,199||11,502||21,808||20,871|
|Income before income tax expense||11,186||11,421||22,805||20,642|
|Income tax expense||(2,590||)||(2,788||)||(5,186||)||(4,796||)|
|Weighted average shares outstanding:|
|Net income per share:|
Source: Legacy Housing Corporation