Legacy Housing Corporation (LEGH)

Legacy Housing Corporation Reports 2020 Second Quarter Results

BEDFORD, Texas, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (NASDAQ: LEGH) today announced its financial results for the second quarter ended June 30, 2020. Financial Highlights: * Revenue for the second quarter of 2020 was $46.0 million, which was a slight improvement from the net revenue of $45.8 million in 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 million recorded 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 million in 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 million in 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 million or 13.6% to $38.9 million in the second quarter of 2020 compared to $45.0 million in the second quarter of 2019. * The manufactured home park loan portfolio increased by $16.8 million or 16.3% to $120.1 million for second quarter 2020 compared to $103.3 million for 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 million for 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 million or 11.2% to $17.6 million for the six months ended June 30, 2020 compared to $15.8 million for the same period last year. * Earnings per share for the second quarter of 2020, based on diluted weighted average shares outstanding, was $0.36 on 24,201,823 diluted outstanding shares versus $0.35 on 24,369,890 diluted outstanding shares for the comparable quarter in 2019. Similarly, earnings per share for the six months ended June 30, 2020 were $0.73 compared to $0.65 for the same period last year.Curtis D. Hodgson, Executive Chairman of the Board, commented, “We are pleased with the results of the second quarter of 2020, which included a continuation of the strong growth in financed sales to manufactured home parks. Additionally, the company took proactive steps during the first and second quarter of 2020 to navigate the COVID-19 environment by reducing costs and gaining operational flexibility in our manufacturing operations. Over the last six months we have increased the tangible book value of the company by approximately 8% for our shareholders despite the headwinds of the current economy. We believe that manufactured housing presents a compelling, long-term solution for the ongoing lack of affordable housing in the United States, and the Company is well-positioned to take advantage of this market.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- August 14 at 10 AM (Central Time)Senior management will discuss the results of the second quarter of 2020 in a live webcast and conference call on Friday, August 14, 2020 at 10:00 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/mmc/p/sepkcxov, which will also be accessible via www.legacyhousingusa.com under the Investors link. In order to dial in, please call in at (866) 952-6347 and enter Conference ID 4267224 when prompted. Please try to join the webcast or call at least ten minutes prior to the scheduled start time.About Legacy Housing CorporationLegacy 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 $120,000.Forward Looking StatementsThis 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: Shane Allred, Director of Financial Reporting, (817) 799-4903 investors@legacyhousingcorp.comorMedia Inquiries: Casey Mack, (817) 799-4904 pr@legacyhousingcorp.com LEGACY HOUSING CORPORATION BALANCE SHEETS (in thousands) (Unaudited)     June 30 December 31,    2020 2019 Assets         Cash and cash equivalents $1,024  $1,724  Inventories  26,377   27,228  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  Total assets $312,184  $283,620  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  LEGACY HOUSING CORPORATION STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited)                 Three Months Ended June 30,  Six Months Ended June 30,    2020 2019 2020 2019 Net revenue:             Product sales $39,179  $39,766  $70,375  $71,316  Consumer and MHP loans interest  6,067   5,112   12,491   10,642  Other  760   883   1,414   1,757  Total net revenue  46,006   45,761   84,280   83,715  Operating expenses:             Cost of product sales  30,557   27,876   52,416   49,760  Selling, general administrative expenses  4,064   6,144   9,676   12,635  Dealer incentive  186   239   380   449  Income from operations  11,199   11,502   21,808   20,871  Other expense  (13)  (81)  997   (229) Income before income tax expense  11,186   11,421   22,805   20,642  Income tax expense  (2,590)  (2,788)  (5,186)  (4,796) Net income $8,596  $8,633  $17,619  $15,846  Weighted average shares outstanding:             Basic  24,201,220   24,369,890   24,260,274   24,442,921  Diluted  24,201,823   24,369,890   24,260,938   24,457,967  Net income per share:             Basic $0.36  $0.35  $0.73  $0.65  Diluted $0.36  $0.35  $0.73  $0.65