Lisa Levin, writing for the investor’s publication Benzinga, wrote on 5.18.2020 in an article entitled “70 Biggest Movers From Friday” that “Legacy Housing Corporation [LEGH] rose 15.8% to close at $11.79 following upbeat Q1 results.”
Simply Wall Street said on 5.19.2020 that “Results: Legacy Housing Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts.”
“Shareholders will be ecstatic, with their stake up 24% over the past week following Legacy Housing Corporation‘s (NASDAQ:LEGH) latest first-quarter results. Revenues were US$38m, approximately in line with what the analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.37, an impressive 32% ahead of estimates,” said that same source.
While others have taken a beating on Wall Street, Legacy appears to be rebounding.
Legacy’s leadership made the tough, but arguably correct, call to return the SBA PPP loan money that sparked controversy last month. Law firms and public official statements alike that were previously reported by MHProNews seem to back that conclusion. ICYMI, unlike some others in the manufactured home industry who find themselves in a controversy, Legacy’s leaders engaged with MHProNews, provided responses to allegations and concerns, plus ultimately gave this publication an exclusive that was about a dozen or so hours ahead of what the New York Times or other mainstream media obtained.
That speaks volumes.
The consensus reported by Yahoo Finance is that the stock is currently “undervalued.”
Against that backdrop is the latest media release from Legacy Housing, because this latest data is what has sparked the positive comments from a range of financial publications.
BEDFORD, Texas, May 15, 2020 (GLOBE NEWSWIRE) — Legacy Housing Corporation (Nasdaq: LEGH) today announced its financial results for the first quarter ended March 31, 2020.
Net revenue for the first quarter of 2020 was $38.3 million, which was a slight improvement from the net revenue of $37.9 million earned in the first quarter of 2019.
Our interest income in the first quarter of 2020 was approximately $6.4 million, a 16% increase from the $5.5 million recorded in the first quarter of 2019.
Our consumer loan portfolio outstanding principal balance increased by $0.6 million net in the first quarter of 2020 to $105.6 million, inclusive of the allowance for loan loss and other discounts. Our manufactured home park loan portfolio outstanding principal balance increased by $10.9 million to a total of $103.3 million, an approximately 12% increase from the end of 2019. Between March 31, 2019 and March 31, 2020 our consumer loan portfolio increased by $6.7 million and our commercial loan portfolio increased by $40.7 million.
The income before tax expense was $11.6 million in the first quarter of 2020, a 26% increase from the $9.2 million in income before tax expense for the first quarter of 2019.
SG&A decreased in the first quarter of 2020 to approximately $5.6 million, which is a 14% decrease from the first quarter of 2019 due to a reduction of fees paid for professional services, consulting, and advertising and marketing, and first quarter 2019 retail store expenses that were subsequently recorded into cost of sales in the latter part of 2019.
Net income was approximately $9.0 million in the first quarter of 2020, compared to $7.2 million for the comparable period in 2019, which equates to a 25% increase in net income. The net income for the first quarter of 2020 included a one-time event in which the Company received $1.075 million related to the settlement of a lawsuit against a former vendor for the Company.
Earnings per share for the first quarter of 2020, based on diluted weighted average shares outstanding, was $0.37 on 24,361,083 diluted outstanding shares versus $0.29 on 24,571,088 outstanding shares for the comparable quarter in 2019. On a pro-forma basis, excluding the one-time gain on settlement in the first quarter of 2020, the earnings per share was $0.33.
Curtis D. Hodgson, Executive Chairman of the Board, commented, “The first quarter of 2020 had us heading into the year with some momentum, but obviously the COVID-19 pandemic has all us reassessing where we stand. Product sales were largely flat quarter over quarter; however, with March being impacted by the pandemic, we were pleased with the result. We expanded our income in part by keeping expenses down, decreasing our SG&A by 14%. We are adapting to the changing business environment, including having special sales to some of our best customers, providing special financing terms to some of those same customers, and increasing our marketing by stressing online advertising and our social media presence. Affordable housing remains a critical need with significant demand, and so, despite the short-term headwinds, I remain optimistic about Legacy’s potential for growth, profitability, and long-term shareholder value.”
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.
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 $140,000.
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.
Additional information from Legacy’s leadership and other HUD Code manufactured home producers is found in the report linked below.
Disclaimer. MHProNews holds no position in this firm or any others that are found in our business evening/nightly market report. Last night’s report is linked below.
Programming notice and analysis. This is the runaway largest and most-read publication in manufactured housing, despite the posturing and arguably false claims by some others in our HUD Code manufactured home industry. The evidence suggests that some people in MHVille are bold and repeated liars. Among them are purportedly those in publishing.
Let those publishers or bloggers claiming that they are somehow ‘bigger’ or better show their raw traffic data –- put up or shut up — because MHProNews has documented using their own claims and figures that they are full of it. Indeed, one source was so embarrassed by their own low traffic that a few weeks ago they stopped publicly publishing their own articles ‘view’ data, it was so poor. One of our weakest read articles would routinely smoke their best articles many times over. When it comes to reader engagement or other metrics, it simply isn’t close.
But that’s a lesson for our industry.
- Slick covers or pretty visuals doesn’t trump quality information.
- Objectivity, authentic Q&A’s and tough fact checks in trade media has its rewards.
- Intelligent readers may not always like what they read here, but they know it has been accurately sourced and fairly reported.
- Indeed, the fact-checks reflect that if you combined all of our industry trade rivals, they would not come close to our readership or content.
- So, when someone lies or spins to you about readership and size, just recognize that they may just as freely attempt to lie, spin or try to manipulate about other things too.
Don’t miss Wolf in Sheep’s Clothing — RINOs, DINOs and MHInos — linked among the other related reports below the byline, offers and notices. To sign up for our industry leading typically x2 weekly headline news emails, sign up in seconds below.
That’s a wrap on this hump day pre-dawn report here on your home for manufactured home “Industry News, Tips, and Views That Pros Can Use,” © where “We Provide, You Decide” ©. ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
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