Legacy Housing Corporation Reports First Quarter 2023 Financial Results
BEDFORD, Texas, May 09, 2023 (GLOBE NEWSWIRE) — Legacy Housing Corporation (the “Company” or “Legacy,” NASDAQ: LEGH) today announced its financial results for the first quarter ended March 31, 2023.
Financial Highlights
- Net revenue for the first quarter of 2023 was $52.9 million, a decrease of 11.8% from the first quarter of 2022.
- Income from operations for the first quarter of 2023 was $18.4 million, an increase of 0.5% from the first quarter of 2022.
- Net income for the first quarter of 2023 was $16.3 million, an increase of 1.1% from the first quarter of 2022.
- Basic earnings per share for the first quarter of 2023 was $0.67, an increase of 1.0% from the first quarter of 2022.
- Book value for the first quarter of 2023 was $397.9 million, an increase of 4.1% from the fourth quarter of 2022.
- Book value per share for the first quarter of 2023 was $16.32, an increase of 4.0% from the fourth quarter of 2022.
Duncan Bates, President and Chief Executive Officer, stated: “I am proud of our team’s accomplishments this quarter. The market is challenging. We kept our heads down and focused on sales. Long-time customers have stepped up with orders to extend our backlog. Our loan portfolios continue to perform well, and we are deploying capital into our industry at high rates of return while other financing sources pull back. Georgia production and shipments were below historical levels during the first quarter but have recently gained momentum. Reducing costs and streamlining processes are our top priority. Since its inception, Legacy has operated in a conservative manner with low leverage and a laser focus on the bottom line. We will maintain this approach and invest as opportunities arise.”
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.
Conference Call Information
Management will host a conference call to discuss the results at 10:00 a.m. Central Time on Wednesday, May 10, 2023. To access the conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details. A live webcast of the call can be accessed using this link.
About Legacy Housing Corporation
Legacy builds, sells, and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores. The Company also sells directly to manufactured housing communities. Legacy is the fifth largest producer of manufactured homes in the United States as ranked by the number of homes manufactured based on the information available from the Manufactured Housing Institute and the Institute for Building Technology and Safety. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 395 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 $33,000 to $180,000.
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 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:
Duncan Bates, (817) 799-4837
duncanbates@legacyhousingcorp.com
Media Inquiries:
Kira Hovancik, (817) 799-4905
pr@legacyhousingcorp.com
| LEGACY HOUSING CORPORATION | ||||||||
| BALANCE SHEET (in thousands) | ||||||||
| Unaudited | ||||||||
| Assets | March 31, 2023 | December 31, 2022 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,233 | $ | 2,818 | ||||
| Held to Maturity Securities | 8,452 | 8,412 | ||||||
| Accounts receivable, net | 3,985 | 4,873 | ||||||
| Current portion of contracts – dealer financed | 30,447 | 29,441 | ||||||
| Current portion of consumer loans receivable | 6,893 | 6,801 | ||||||
| Current portion of notes receivable from mobile home parks (“MHP”) | 9,906 | 9,670 | ||||||
| Current portion of other notes receivable | 8,608 | 8,927 | ||||||
| Inventories | 32,527 | 32,075 | ||||||
| Prepaid expenses and other current assets | 3,729 | 4,064 | ||||||
| Total current assets | 107,781 | 107,081 | ||||||
| Contracts – dealer financed, net | 1,518 | 595 | ||||||
| Consumer loans receivable, net | 134,423 | 132,208 | ||||||
| Notes receivable from MHP, net | 144,431 | 133,072 | ||||||
| Other notes receivable, net | 16,364 | 13,795 | ||||||
| Inventories, Net | 7,242 | 6,987 | ||||||
| Other assets – leased mobile homes | 8,073 | 8,824 | ||||||
| ROU assets – operating leases | 2,503 | 2,663 | ||||||
| Other assets | 2,020 | 1,482 | ||||||
| Property, plant and equipment, net | 30,597 | 30,106 | ||||||
| Total Assets | $ | 454,952 | $ | 436,813 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,880 | $ | 4,549 | ||||
| Accrued liabilities | 17,673 | 16,895 | ||||||
| Customer deposits | 7,346 | 9,715 | ||||||
| Escrow liability | 9,272 | 9,653 | ||||||
| Operating lease obligation | 652 | 650 | ||||||
| Lines of credit | 7,838 | – | ||||||
| Total current liabilities | 46,660 | 41,462 | ||||||
| Operating lease obligation, less current portion | 1,959 | 2,121 | ||||||
| Lines of credit | – | 2,545 | ||||||
| Deferred income taxes, net | 2,862 | 3,065 | ||||||
| Dealer incentive liability | 5,596 | 5,516 | ||||||
| Total Liabilities | 57,078 | 54,709 | ||||||
| Stockholder’s Equity | ||||||||
| Stockholders’ Equity | 397,874 | 382,104 | ||||||
| Total Liability & Stockholders’ Equity | $ | 454,952 | $ | 436,813 | ||||
| LEGACY HOUSING CORPORATION | ||||||||
| STATEMENT OF OPERATIONS (in thousands) | ||||||||
| Unaudited | ||||||||
| Three Months Ended | ||||||||
| March 31, 2023 | March 31, 2022 | |||||||
| Net Revenue: | ||||||||
| Product Sales | $ | 43,318 | $ | 51,787 | ||||
| Consumer and MHP loans interest | 7,705 | 6,765 | ||||||
| Other | 1,834 | 1,376 | ||||||
| Total net revenue | 52,857 | 59,928 | ||||||
| Operating Expenses: | ||||||||
| Cost of product sales | 28,960 | 33,727 | ||||||
| Selling, general and administrative expenses | 5,412 | 7,659 | ||||||
| Dealer incentive | 131 | 275 | ||||||
| Total costs & operating Expenses | 34,503 | 41,660 | ||||||
| Income from operations | 18,354 | 18,267 | ||||||
| Other Income: | ||||||||
| Interest income-other | 695 | 853 | ||||||
| Other income/expenses | 753 | 586 | ||||||
| Interest expense | (91 | ) | (56 | ) | ||||
| Income before income tax expense | 19,711 | 19,650 | ||||||
| Income Tax Expense | 3,435 | 3,558 | ||||||
| Net Income | $ | 16,276 | $ | 16,092 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 24,374,677 | 24,351,223 | ||||||
| Diluted | 25,177,502 | 24,661,426 | ||||||
| Net income per share: | ||||||||
| Basic | $ | 0.67 | $ | 0.66 | ||||
| Diluted | $ | 0.65 | $ | 0.65 | ||||
