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Legacy Housing Corporation Reports 2019 First Quarter Results

BEDFORD, Texas, May 13, 2019 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (LEGH) today announced its financial results for the first quarter ended March 31, 2019.

Financial Highlights:

  • Net revenue for the first quarter of 2019 was $38.0 million, compared to $42.7 million in the first quarter of 2018, a decrease of $4.7 million or 11%. The first quarter of 2018 included home sales of approximately $8.9 million as a subcontractor operating under a contract with FEMA. Excluding the FEMA home sales in 2018, there was a net increase in organic net revenue from the first quarter of 2018 to 2019 of $4.2 million, or a 12.4% improvement.

  • Our interest income in the first quarter of 2019 was $5.5 million, a 25% increase from the $4.4 million recorded in the first quarter of 2018.

  • Our consumer loan portfolio outstanding principal balance increased by $1.7 million net in the first quarter of 2019 to $98.9 million, inclusive of the allowance for loan loss and other discounts. Our manufactured home park loan portfolio outstanding principal balance increased by $4.6 million to a total of $62.5 million, an 8% increase from the end of 2018.

  • The income tax expense for the first quarter of 2019 was $2.0 million, compared to approximately $4.0 million in the same period of 2018. This decrease in tax expense was primarily attributable to the one-time recognition of deferred taxes of $2.1 million in the first quarter of 2018 related to the partnership conversion to a corporation.

  • Net income was $7.2 million in the first quarter of 2019, compared to $5.4 million for the comparable period in 2018, which equates to a 33% increase in net income.

  • Net income per share for the first quarter of 2019, based on basic and diluted weighted average shares outstanding, was $.29 versus $.27 for the comparable quarter in 2018.

  • On April 12, 2019, we announced a share buyback program of up to $10 million of outstanding common stock. On April 17, 2019, the Company purchased 300,000 shares of its common stock at the price of $10.20 per share.

Curtis D. Hodgson, Executive Chairman of the Board, commented, “The Company performed well in the first quarter of 2019, especially considering there was a softening in some of our key markets in December of 2018 that continued into January of 2019. Every month in the first quarter was better than the preceding month in terms of the company’s overall performance and demand for our products, and we are optimistic this momentum in our business is providing a runway for the Company’s growth into the second quarter and for the remainder of the year. One area in particular I’d highlight is that we had more than a 78% increase in financed sales to manufactured home parks in the first quarter of 2019 compared to the same time period in 2018.”

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- May 14 at 9 AM (Central Time)

Senior management will discuss the results of the first quarter of 2019 in a live webcast and conference call on Tuesday, May 14, 2019 at 9:00 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/m6/p/jnc5pnkk, which will also be accessible via www.legacyhousingusa.com under the Investors link. In order to dial in, you may call in at (866) 952-6347 and enter Conference ID 2799889 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 $95,000.

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:

Neal Suit, (817) 799-4906
investors@legacyhousingcorp.com

or

Media Inquiries:

Casey Mack, (817) 799-4904
pr@legacyhousingcorp.com


LEGACY HOUSING CORPORATION

BALANCE SHEETS (in thousands)

(Unaudited)

March 31,

December 31,

2019

2018

Assets

Cash and cash equivalents

$

3,098

$

2,599

Inventories

37,966

42,033

Prepaid expenses and other current assets

20,666

18,512

Total current assets

61,730

63,144

Property, plant and equipment, net

17,644

17,128

Consumer loans, net of deferred financing fees and allowance for loan losses

93,772

92,230

Notes receivable from mobile home parks (“MHP”)

54,207

50,638

Other assets and non-current inventory

16,322

11,898

Total assets

$

243,675

$

235,038

Liabilities and Stockholders' Equity

Total current liabilities, excluding debt

$

21,622

$

20,157

Total long-term debt, including current portion

10,669

17,644

Other long-term liabilities

7,962

7,957

Total stockholder's equity

203,422

189,280

Total liabilities and stockholders' equity

$

243,675

$

235,038

LEGACY HOUSING CORPORATION

STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

Three months ended
March 31,

2019

2018

Net revenue:

Product sales

$

31,550

$

37,414

Consumer and MHP loans interest

5,530

4,394

Other

874

878

Total net revenue

37,954

42,686

Operating expenses:

Cost of product sales

21,885

27,647

Selling, general administrative expenses

6,491

4,799

Dealer incentive

210

335

Income from operations

9,368

9,905

Other expense

(147

)

(554

)

Income before income tax expense

9,221

9,351

Income tax expense

(2,008

)

(3,990

)

Net income

$

7,213

$

5,361

Weighted average shares outstanding:

Basic

24,516,762

20,000,000

Diluted

24,571,088

20,000,000

Net income per share:

Basic

$

0.29

$

0.27

Diluted

$

0.29

$

0.27