Legacy Housing Corporation Reports 2020 Third Quarter Results
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
About
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.
Investor Inquiries:
investors@legacyhousingcorp.com
or
Media Inquiries:
pr@legacyhousingcorp.com
| BALANCE SHEETS (in thousands) | ||||||||
| (Unaudited) | ||||||||
| 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 | ||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| 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 | ||||||||
Source: Legacy Housing Corporation