Legacy Housing Corporation Reports Third Quarter 2021 Financial Results

Rhea-AI Summary

Legacy Housing Corporation (NASDAQ: LEGH) reported impressive financial growth for Q3 2021. Net revenue reached $56.5 million, up 29.1% year-over-year. Gross margin improved by 70% to $14.9 million, reflective of better management against supply chain pressures. Net income rose to $14.7 million, an increase of $6.3 million, driven by higher gross margins and interest revenue. Earnings per share soared by 74.3% to $0.61. The company remains optimistic, reporting a strong backlog and solid demand for products.

Positive

• Net revenue increased by 29.1% to $56.5 million.
• Gross margin improved to 30.9% of product sales, up from 23.9%.
• Net income grew by $6.3 million to $14.7 million.
• Earnings per share surged 74.3% to $0.61.
• Strong backlog and solid demand reported.

Negative

• None.

BEDFORD, Texas, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (NASDAQ: LEGH) today announced its financial results for the third quarter ended September 30, 2021.  

Financial Highlights:

• Net revenue for the third quarter of 2021 was $56.5 million. This was a 29.1% or $12.7 million increase from the third quarter of 2020.
• Interest revenue from our consumer and mobile home park portfolios for the third quarter of 2021 was $7.3 million. This was a 12.9% or $0.8 million increase from the third quarter of 2020.
• Gross margin for the third quarter of 2021 was $14.9 million or 30.9% of product sales compared to $8.7 million or 23.9% of product sales from the third quarter of 2020.
• Income from operations during the third quarter of 2021 was $17.6 million compared to the $10.8 million recorded in the third quarter of 2020.
• Net income in the third quarter of 2021 was $14.7 million.   Compared to the third quarter of 2020, net income increased by $6.3 million. The improvement in net income was the result of stronger gross margins, increased interest revenue, and a lowered effective tax rate.
• Diluted earnings per share for the third quarter of 2021 were $0.61. Compared to the third quarter of 2020, this was an increase of 74.3% or $0.26.

Curtis D. Hodgson, Executive Chairman of the Board, commented, “We are quite pleased with our excellent third quarter results. The growth in our gross margins illustrates how we continue to proactively manage our business in the face of supply chain challenges and inflationary conditions. The demand for our product remains solid and our backlog is very strong. Our future is bright as we move strategically to create long-term value for our shareholders.”

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 - Wednesday, November 10 at 9:30 AM (Central Time)

Senior management will discuss the results of the third quarter of 2021 in a live webcast and conference call on Wednesday, November 10^th, 2021 at 9:30 AM Central Time. To register and participate in the webcast, please go to https://edge.media-server.com/mmc/p/ckbfsadk, which will also be accessible via www.legacyhousingusa.com under the Investors link. In order to dial in, please call in at 866-952-6347 and enter Conference ID 5297726 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 sixth 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.

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

or

Media Inquiries:
Kira Hovancik, (817) 799-4905
pr@legacyhousingcorp.com

FAQ

What were the financial results of Legacy Housing Corporation for Q3 2021?

Legacy Housing Corporation reported a net revenue of $56.5 million for Q3 2021, a 29.1% increase compared to Q3 2020.

How did Legacy Housing's net income change in Q3 2021?

Net income for Q3 2021 was $14.7 million, an increase of $6.3 million from the previous year.

What is the EPS for Legacy Housing Corporation for the third quarter of 2021?

The diluted earnings per share (EPS) for Q3 2021 was $0.61, reflecting a 74.3% increase from Q3 2020.

What are the growth highlights for Legacy Housing Corporation in 2021?

Legacy Housing reported improvements in gross margin, revenue, and net income, alongside a strong backlog.

When is the conference call for Legacy Housing's Q3 results?

The management conference call to discuss Q3 results is scheduled for November 10, 2021, at 9:30 AM Central Time.