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