Legacy Housing Corporation Reports Amended 2020 Second Quarter Results

Rhea-AI Summary

Legacy Housing Corporation (NASDAQ: LEGH) announced restated financial results for Q2 2020, correcting prior financial statements due to an accounting error. This restatement revealed an overstatement of costs, leading to a $1.4 million increase in retained earnings and a $1.4 million rise in net income. Net income was reported at $10.0 million ($0.41 per diluted share) for the quarter, and $19.1 million ($0.79 per diluted share) for the six months ending June 30, 2020. Investors are advised to disregard previously issued financial data related to this period.

Positive

• Restated net income increased by $1.4 million, totaling $10.0 million for Q2 2020.
• Adjusted cost of product sales decreased by $1.9 million, reflecting improved profitability.

Negative

• Restatement indicates previous financial statements were misleading, potentially impacting investor trust.

BEDFORD, Texas, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (NASDAQ: LEGH) announces restated financial results for the second quarter ended June 30, 2020.  On November 6, 2020, Legacy Housing Corporation (the “Company”) filed an amended Quarterly Report on Form 10-Q/A restating its second quarter interim financial statements for fiscal year 2020. As a result of the restatement, investors should no longer rely upon the Company's previously issued financial statements for the period set forth above, earnings releases for this period, and other communications relating to these financial statements.

The Company identified an overstatement of costs errantly assigned to accounts payable for inventory received but not invoiced. The Company noted that these adjustments resulted in an increase to retained earnings of $1.4 million as of June 30, 2020. The Company also noted that these adjustments resulted in a decrease of cost of product sales by $1.9 million and an increase of net income by $1.4 million, resulting in net income of $10.0 million ($0.41 per diluted share) and $19.1 million ($0.79 per diluted share) for the three and six months ended June 30, 2020, respectively.

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 $120,000.

Investor Inquiries:

Shane Allred, Director of Financial Reporting, (817) 799-4903
investors@legacyhousingcorp.com

or

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

FAQ

What were the restated financial results for Legacy Housing Corporation (LEGH) for Q2 2020?

Legacy Housing Corporation restated its Q2 2020 financial results, reporting a net income of $10.0 million and earnings of $0.41 per diluted share.

Why did Legacy Housing Corporation (LEGH) restate its financial results?

The restatement was due to an overstatement of costs assigned to accounts payable, which affected inventory accounting.

How much did Legacy Housing Corporation (LEGH) increase its retained earnings after the restatement?

Legacy Housing Corporation increased its retained earnings by $1.4 million as a result of the restatement.

What was the impact of the restatement on the cost of product sales for LEGH?

The restatement led to a decrease of $1.9 million in the cost of product sales for Q2 2020.