Legacy Housing Corporation Reports First Quarter 2024 Financial Results

Rhea-AI Summary

Legacy Housing reported its first quarter 2024 financial results, highlighting a decrease in net revenue, income from operations, net income, and basic earnings per share compared to the first quarter of 2023. However, the company saw an increase in book value and book value per share. Legacy Housing also mentioned share repurchases and stated its focus on improving sales volumes and profitability.

Positive

• None.

Negative

• Decrease in net revenue, income from operations, net income, and basic earnings per share compared to the first quarter of 2023.

Insights

Financial Analyst

Legacy Housing Corporation's reported decline in net revenue by 18.2% and a decrease in net income by 7.0% are indicators of contraction in the company's financial performance for the first quarter of 2024. These numbers are significant as they reflect the company's current progress and could imply a potential red flag for investors focusing on growth. The drop in basic earnings per share by 7.1% may concern investors looking for earnings stability or growth. However, the increase in book value by 13.2% and book value per share suggests a stronger balance sheet, which is a positive sign of the company's intrinsic value. The stock repurchase initiative, with 261,529 shares bought back, might signal management's confidence in the company's undervaluation. It's also worth noting that the repurchase was constrained, indicating there may be further buybacks if conditions allow. The management's efforts to showcase product improvements and build backlog during the dealer event could pave the way for future sales growth, though it remains to be seen if this will translate into improved financials.

Market Research Analyst

The decreased sales volume mentioned by Legacy Housing Corporation could be a result of several market factors, such as increased competition, shifts in consumer preferences, or broader economic issues impacting the housing sector. Despite the dip, the CEO's statement about improving sales volumes post-quarter suggests a potential rebound. Investors might look to industry trends in affordable housing to gauge the likelihood of this recovery. Moreover, the company's strategic decision to host the first Spring Show since 2020 could be seen as an attempt to rekindle relationships with dealers and customers, which may be essential in driving sales and improving market presence. However, the true impact of these initiatives on the company's market share and sales figures will require analysis of subsequent quarters.

BEDFORD, Texas, May 09, 2024 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (the "Company” or “Legacy", NASDAQ: LEGH) today announced its financial results for the first quarter ended March 31, 2024.

Financial Highlights

• Net revenue for the first quarter of 2024 was $43.2 million, a decrease of 18.2% from the first quarter of 2023.
• Income from operations for the first quarter of 2024 was $16.8 million, a decrease of 8.7% from the first quarter of 2023.
• Net income for the first quarter of 2024 was $15.1 million, a decrease of 7.0% from the first quarter of 2023.
• Basic earnings per share for the first quarter of 2024 was $0.62 a decrease of 7.1% from the first quarter of 2023.
• Book value for the first quarter of 2024 was $450.4 million, an increase of 13.2% from the first quarter of 2023.
• Book value per share¹ for the first quarter of 2024 was $18.46, an increase of 13.1% from the first quarter of 2023.
• Since our last earnings call, we repurchased 261,529 shares of common stock at an average price of $20.56. Repurchases were limited by trading restrictions and a narrow open window.
  

Duncan Bates, President and Chief Executive Officer, stated: “Legacy’s business fundamentals have not changed. There was a disconnect after our fourth quarter earnings, and we used the opportunity to repurchase stock for the first time since 2020. Our profitability during the first quarter was strong and sales volumes are improving. We hosted dealer and park customers in late April at our Georgia plant for our first Spring Show since 2020. It gave us the opportunity to showcase product improvements, sell finished goods inventory, and build our backlog. We are focused on unlocking trapped value on our balance sheet and accelerating earnings growth.”

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 AM Central Time on Friday, May 10, 2024. 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 fourth largest producer of manufactured homes in the United States as ranked by the number of homes manufactured based on 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

---

¹ Book value per share is a non-GAAP financial measure, and we define book value per share as total stockholders’ equity divided by basic weighted-average common shares outstanding.

FAQ

What were Legacy Housing 's net revenue and net income for the first quarter of 2024?

Legacy Housing reported a net revenue of $43.2 million and a net income of $15.1 million for the first quarter of 2024.

Who is the President and Chief Executive Officer of Legacy Housing ?

Duncan Bates is the President and Chief Executive Officer of Legacy Housing

When will the conference call to discuss the financial results be held?

The conference call to discuss the results will be held at 10:00 AM Central Time on Friday, May 10, 2024.

What was the book value per share for Legacy Housing in the first quarter of 2024?

The book value per share for the first quarter of 2024 was $18.46.