Legacy Housing Corporation Reports Full Year 2023 Financial Results

Rhea-AI Summary

Legacy Housing (NASDAQ: LEGH) reports financial results for 2023, showing a decrease in net revenue, income from operations, net income, and basic earnings per share compared to 2022. However, there was an increase in book value and book value per share. The company's President and CEO, Duncan Bates, is optimistic about the future despite the challenges faced in 2023.

Positive

• None.

Negative

• Net revenue, income from operations, net income, and basic earnings per share decreased in 2023 compared to 2022.

Insights

Market Research Analyst

The reported decrease in net revenue for Legacy Housing Corporation points to a contraction in sales or output, which is significant considering the 26.4% year-over-year decline. This drop is indicative of a potential market retraction or increased competition. Investors may interpret this as a red flag, warranting a closer look at the company's market strategy and competitive positioning. Despite the revenue downturn, the increase in book value suggests a solid asset base, which could be a buffer in challenging times. However, the growth in book value must be analyzed in context with the revenue decline to understand the underlying asset efficiency and potential for future earnings.

Financial Analyst

Legacy's earnings per share (EPS) decline is a critical metric for shareholders, reflecting a direct impact on shareholder value. A 19.7% decrease in EPS is substantial and may affect investor confidence and stock valuation. On the other hand, the company's ability to manage expenses and increase book value per share amidst declining revenues could signal strong operational control and potential for margin improvement. Investors should weigh the short-term earnings dip against the long-term asset growth to assess the company's financial health and sustainability.

Economist

The financial results of Legacy Housing Corporation might be reflecting broader economic trends such as a slowdown in the housing market or shifts in consumer spending. The management's note on improving market conditions for 2024 could indicate an expected economic recovery or a response to strategic changes within the company. It is important for stakeholders to consider macroeconomic indicators alongside the company's performance to gauge the potential for rebound or continued struggle. The interplay between the company's internal strategies and external economic forces will be important in determining its trajectory.

BEDFORD, Texas, March 15, 2024 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (the "Company” or “Legacy", NASDAQ: LEGH) today announced its financial results for the full year end December 31, 2023.

Financial Highlights

• Net revenue for the year ended 2023 was $189.1 million, a decrease of 26.4% from the year ended 2022.
• Income from operations for the year ended 2023 was $64.6 million, a decrease of 17.2% from the year ended 2022.
• Net income for the year ended 2023 was $54.5 million, a decrease of 19.6% from the year ended 2022.
• Basic earnings per share for the year ended 2023 was $2.23, a decrease of 19.7% from the year ended 2022.
• Book value for year ended 2023 was $436.7 million, an increase of 14.3% from the year ended 2022.
• Book value per share¹ for year ended 2023 was $17.91, an increase of 14.2% from the year ended 2022.

Duncan Bates, President and Chief Executive Officer, stated: “I am proud of our team’s effort managing expenses and driving profitability in a lower demand environment. We spent an incredible amount of time this year recruiting and on-boarding talented professionals and upgrading our processes and systems. Market conditions are improving, and Legacy is well positioned for 2024. Please join our call Monday for additional details on our financial results for the reporting period.”

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 Monday, March 18, 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 sixth 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.

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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.

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

FAQ

What was Legacy Housing 's net revenue for the year ended 2023?

Legacy Housing reported a net revenue of $189.1 million for the year ended 2023.

What was the income from operations for Legacy Housing in 2023?

Income from operations for Legacy Housing in 2023 was $64.6 million.

What was Legacy Housing 's net income for the year ended 2023?

Legacy Housing 's net income for the year ended 2023 was $54.5 million.

What was the basic earnings per share for Legacy Housing in 2023?

Legacy Housing 's basic earnings per share for 2023 was $2.23.

What was Legacy Housing 's book value for the year ended 2023?

Legacy Housing 's book value for the year ended 2023 was $436.7 million.

What was the book value per share for Legacy Housing in 2023?

Legacy Housing 's book value per share for 2023 was $17.91.