Legacy Housing Corporation Reports Record 2018 Results
2018 Fiscal Year Results
- Gross revenue for the year ended
December 31, 2018rose to an all-time high of $161.8 million, representing a 26% increase over the $128.7 millionrecorded for the year ended December 31, 2017. This achievement was primarily due to an increase in both the number and the price of our homes sold.
- Our company-owned store sales totaling
$10.4 millionin 2017 climbed 27% to $13.2 millionin 2018. We opened three new retail stores in December 2018, two in Georgiaand one in Texas.
- Our consumer loan portfolio’s outstanding principal balance grew by
$10.5 millionin 2018 to $97 million, net of deferred financing fees and allowance for loan loss and our mobile home park loan portfolio’s outstanding principal balance grew by $8.4 millionin 2018 to $58 million.
- Income before taxes for the year ended
December 31, 2018increased 16% to $30.6 millionversus $26.5 millionfor the year ended December 31, 2017.
- Income tax expense for 2018 was
$9.1 million, compared to only $124,000in the prior year due to a change in the organizational structure of our company from a partnership in 2017 to a corporation in 2018 to accommodate our initial public offering. On a pro forma basis, our tax expense for 2017 would have been approximately $9.4 million.
- Net income was
$21.5 millionfor the year ended December 31, 2018compared to $26.3 millionfor the year ended December 31, 2017. However, on a pro forma basis after taking into account the additional tax expense associated with converting from a partnership to a corporation as noted above, our pro forma net income in 2017 was $16.9 millionassuming the company had been a corporation as of the beginning of 2017. On a pro-forma basis, our net income increased 27% from 2017 to 2018.
- To cap off the year, we completed our initial public offering of common stock on
December 18, 2018and, on January 16, 2019, the underwriters exercised their over-allotment option in full. In total, we sold 4,600,000 shares of our common stock for gross proceeds of $55,200,000.
Management Conference Call- Tomorrow,
Legacy’s management will hold a conference call to review these results tomorrow,
This press release contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities and Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance.
|LEGACY HOUSING CORPORATION|
|STATEMENTS OF OPERATIONS|
|(in thousands, except share and per share data)|
|Year Ended December 31,|
|Consumer and MHP loans interest||18,759||15,647|
|Total net revenue||161,877||128,736|
|Cost of product sales||107,231||82,498|
|Selling, general administrative expenses||21,017||17,105|
|Income from operations||32,800||28,095|
|Income before income tax expense||30,645||26,472|
|Income tax expense||(9,132||)||(124||)|
|Weighted average shares outstanding:|
|Basic and diluted||20,197,260||—|
|Net income per share:|
|Basic and diluted||$||1.07||$||—|
|Pro Forma Information:|
|Pro forma provision for income taxes||(9,448||)|
|Pro forma net income||$||16,900|
|Pro forma weighted average shares outstanding:|
|Pro forma basic and diluted||20,000,000|
|Pro forma net income per share:|
|Pro forma basic and diluted||$||0.84|
|LEGACY HOUSING CORPORATION|
|BALANCE SHEETS (in thousands)|
|Cash and cash equivalents||$||2,599||$||428|
|Prepaid expenses and other current assets||18,512||19,452|
|Total current assets||63,144||59,441|
|Property, plant and equipment, net||17,128||11,826|
|Consumer loans, net of deferred financing fees and allowance for loan losses||92,230||82,331|
|Notes receivable from mobile home parks (“MHP”)||50,638||42,286|
|Other assets and non-current inventory||11,898||12,451|
|Liabilities and Stockholder's Equity|
|Total current liabilities, excluding debt||$||20,157||$||18,511|
|Total long-term debt, including current portion||17,644||58,780|
|Other long-term liabilities||7,957||6,773|
|Total liabilities and equity||$||235,038||$||208,335|
Source: Legacy Housing Corporation