Legacy Housing Corporation Reports 2019 First Quarter Results
May 13 2019 - 6:24PM
Legacy Housing Corporation (Nasdaq: 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) 799-4904pr@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 endedMarch 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 |
|
|
|
|
|
|
|
|
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