Financial Results - Legacy Housing Corporation reported its financial results for the fiscal quarter ended September 30, 2024[2]. - The press release detailing the financial results was issued on November 12, 2024[2]. - The financial results press release is included as Exhibit 99.1 in the Current Report[4]. Company Information - The company is listed on the NASDAQ Global Market under the trading symbol LEGH[1]. - The registrant is not classified as an emerging growth company[2]. - The company's principal executive offices are located in Bedford, Texas[1]. - The company has an IRS Employer Identification Number of 20-2897516[1]. Report Details - The report is not intended to be filed under the Securities Exchange Act of 1934[3]. - The report was signed by Duncan Bates, President and CEO, on November 14, 2024[5]. - The report includes a cover page interactive data file formatted as Inline XBRL[4].

Financial Data and Key Metrics Changes - Product sales decreased by $6.8 million or 18.3% for Q3 2024 compared to Q3 2023, primarily due to a decrease in unit volume shipped in direct sales, mobile home park sales, and inventory finance sales [6][7] - Net income decreased by 1.8% to $15.8 million in Q3 2024 compared to Q3 2023, with basic earnings per share decreasing by $0.01 or 1.5% [13] - Gross profit margin was 29.2% for Q3 2024, down from 32.9% in Q3 2023, attributed to lower production levels and under-absorbed labor [10][20] Business Line Data and Key Metrics Changes - Consumer MHP and dealer loans interest income increased by $1.5 million or 17.3% in Q3 2024 compared to Q3 2023, driven by growth in loan portfolios [7] - Other revenue decreased by $0.4 million or 8.7% in Q3 2024 compared to Q3 2023, primarily due to a decrease in forfeited deposits and dealer finance fees [8] - Selling, general and administrative expenses remained flat compared to Q3 2023, with slight increases in payroll and healthcare expenses offset by decreases in warranty and bad debt expenses [11] Market Data and Key Metrics Changes - Applications for retail finance increased by 16% in Q3 2024 compared to Q3 2023, indicating a positive trend in market demand [18] - October 2024 retail finance funding reached the highest level since December 2020, suggesting a recovery in the market [18] - The community business is slowly improving, with more inbound requests expected to continue into 2025 [18] Company Strategy and Development Direction - The company is focusing on increasing production at its Texas plants and expanding its independent dealer network, particularly in South Texas, Florida, and the Carolinas [15][17] - The company is transitioning its community business by selling HUD tiny homes to RV park investors, viewing this as a growth opportunity [19] - Legacy Housing is also prioritizing land sales and development projects, with plans to sell lots in Bastrop County and Horseshoe Bay in 2025 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production ramp-up in Q4 2024, expecting to see improved sales and backlog reduction following the successful fall show [29][30] - The company is monitoring material price fluctuations and labor market conditions, with expectations for gross margins to normalize as production increases [20][34] - Management noted that while high interest rates are currently depressing transaction volumes, they anticipate improvements in the community business in 2025 [18] Other Important Information - The company reported a one-time gain from a settlement agreement, which has now been fully integrated into the financials [36] - The company is operating two mobile home parks with a current occupancy rate of approximately 35%, with plans to increase occupancy before monetizing the assets [22][42] Q&A Session Summary Question: Expectations for production rates across plants for Q4 - Management expects to ramp up production in Q4, driven by strong orders from the fall show and new sales team management [29] Question: Trends in orders post-fall show - Orders have remained steady since the fall show, with an increase in inquiries from park customers [30][31] Question: Impact of hurricanes on operations - The company faced some delayed shipments but emerged from the storms without significant damage, anticipating future rebuild opportunities [32] Question: Normalization of gross margins - Management aims to return gross margins to the low 30s in Q4, contingent on improved production and labor conditions [34][41] Question: Status of the settlement agreement - The settlement agreement has been fully resolved, with ongoing opportunities to increase occupancy in the newly acquired parks [36][38]

Core Insights - Legacy Housing (LEGH) reported revenue of $44.27 million for Q3 2024, reflecting an 11.4% year-over-year decline and falling short of the Zacks Consensus Estimate of $51.14 million by 13.44% [1] - The company's EPS remained unchanged at $0.64 compared to the same period last year, but it missed the consensus EPS estimate of $0.65 by 1.54% [1] Revenue Breakdown - Net revenue from Consumer, MHP, and dealer loans interest was $10.33 million, exceeding the average estimate of $10.11 million by analysts, representing a year-over-year increase of 17.4% [3] - Net revenue from Other sources was reported at $3.77 million, significantly higher than the estimated $1.45 million, but showed a decline of 8.7% compared to the previous year [3] - Net revenue from Product sales was $30.17 million, which was below the estimated $39.58 million, marking an 18.5% decrease year-over-year [3] Stock Performance - Over the past month, Legacy Housing shares have returned +2%, while the Zacks S&P 500 composite increased by +3.3% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Financial Performance - For the three months ended September 30, 2024, product sales decreased by $6.8 million, or 18.5%, compared to the same period in 2023, primarily due to a decrease in unit volumes shipped [134]. - Total net revenue for Q3 2024 was $44.3 million, a decrease of $5.7 million, or 11.4%, from $49.9 million in Q3 2023 [133]. - Net income for Q3 2024 was $15.8 million, a decrease of $285,000, or 1.8%, from $16.1 million in Q3 2023 [133]. - Total net revenue decreased by $25.4 million, or 16.4%, during the three months ended September 30, 2024, compared to the same period in 2023, primarily driven by a decrease in product sales [145]. - Product sales decreased by $29.9 million, or 24.4%, during the nine months ended September 30, 2024, due to a decrease in unit volumes shipped [146]. - Other revenue decreased by $1.4 million, or 17.5%, during the nine months ended September 30, 2024, primarily due to a decrease in dealer finance fees [150]. Sales and Production - The company sold 549 home sections in Q3 2024, down from 643 in Q3 2023, representing a decrease of 14.6% [121]. - The average net revenue per unit sold remained relatively stable at $63.5 in Q3 2024 compared to $63.6 in Q3 2023 [135]. - Approximately 48% of manufactured homes were sold in Texas for the nine months ended September 30, 2024, a slight decrease from 49% in the same period of 2023 [123]. - The company operates three manufacturing facilities and produces approximately 70 home sections per week, which translates to about 60 fully completed homes depending on product mix [122]. Expenses and Costs - The cost of product sales decreased by $20.1 million, or 24.1%, during the nine months ended September 30, 2024, primarily related to the decrease in units sold [151]. - Selling, general, and administrative expenses increased by $0.5 million, or 2.8%, during the nine months ended September 30, 2024, primarily due to increases in legal and marketing expenses [152]. - Inflation has impacted gross margins, with material and labor costs rising, and interest rate increases affecting financing availability for home buyers [129]. Cash Flow and Financing - Cash balances as of September 30, 2024, were approximately $0.6 million, a decrease from $0.7 million as of December 31, 2023 [157]. - The company believes that cash flow from operations and available credit will be sufficient to fund operations and growth for the next 12 to 18 months [156]. - Net cash provided by operating activities was $28.1 million for the nine months ended September 30, 2024, compared to a net cash outflow of $5.3 million for the same period in 2023, indicating a significant improvement [159]. - Net cash used in investing activities was $1.5 million for the nine months ended September 30, 2024, down from $7.6 million in the same period of 2023, primarily due to reduced loan issuances for manufactured housing parks [160]. - Net cash used in financing activities totaled $26.8 million for the nine months ended September 30, 2024, compared to a net cash inflow of $10.6 million in the same period of 2023, reflecting increased repayments on lines of credit and stock repurchases [161]. Share Repurchase and Credit Facilities - The company repurchased 262,530 shares for $5.4 million during the nine months ended September 30, 2024, with a remaining authorization of approximately $14.6 million for future repurchases [162]. - As of September 30, 2024, the outstanding balance of the new revolving credit facility was $2.1 million, with an interest rate of 7.61% [164]. - The company entered into a new Credit Agreement on July 28, 2023, providing a senior secured revolving credit facility with an initial commitment of $50 million [163]. - Interest expense under the new revolving credit facility was $686 thousand for the nine months ended September 30, 2024, compared to $588 thousand for the same period in 2023 [164]. Other Financial Metrics - The effective tax rate for the nine months ended September 30, 2024, was 18.2%, compared to 17.3% for the same period in 2023 [155]. - The maximum contingent obligations under repurchase agreements were approximately $856 thousand as of September 30, 2024, down from $3.0 million in December 31, 2023 [167]. - The company had a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00 as of September 30, 2024, indicating compliance with financial covenants [164]. - Cash at the end of the period was $570 thousand as of September 30, 2024, compared to $547 thousand at the end of the same period in 2023 [158]. - Other income increased by $7.1 million, or 296.7%, during the nine months ended September 30, 2024, driven by various gains including a reversal of accrued liabilities [154].

Core Viewpoint - Legacy Housing Corporation reported a decline in net revenue and income for the third quarter of 2024, while experiencing an increase in book value and book value per share, indicating mixed financial performance [2][3]. Financial Performance - Net revenue for Q3 2024 was $44.3 million, down 11.4% from Q3 2023 [2]. - Income from operations for Q3 2024 was $15.3 million, a decrease of 19.4% from Q3 2023 [2]. - Net income for Q3 2024 was $15.8 million, a decrease of 1.8% from Q3 2023 [2]. - Basic earnings per share for Q3 2024 were $0.65, down 1.5% from Q3 2023 [2]. - Book value for Q3 2024 was $479.3 million, an increase of 11.6% from Q3 2023 [2]. - Book value per share for Q3 2024 was $19.84, an increase of 12.7% from Q3 2023 [2][4]. Market and Strategic Initiatives - The company hosted a record number of customers at its 2024 Fall Show, showcasing updated home designs that appealed to younger buyers [3]. - Orders from the Fall Show increased the company's backlog into Q1 2025, suggesting positive market reception [3]. - The management believes that the market for manufactured homes will strengthen as housing affordability remains low [3]. Company Overview - Legacy Housing Corporation is the fourth largest producer of manufactured homes in the U.S., focusing on homes ranging from approximately 395 to 2,667 square feet and priced between $33,000 and $180,000 [6].

Core Viewpoint - Wall Street analysts anticipate Legacy Housing (LEGH) will report quarterly earnings of $0.65 per share, reflecting a year-over-year increase of 1.6%, with revenues expected to reach $51.14 million, up 2.4% from the previous year [1]. Group 1: Earnings and Revenue Estimates - Analysts project that 'Net revenue- Consumer and MHP loans interest' will likely reach $10.11 million, indicating a year-over-year increase of 14.9% [4]. - The 'Net revenue- Other' is estimated to be $1.45 million, showing a significant decline of 64.9% compared to the prior year [4]. - 'Net revenue- Product sales' is expected to reach $39.58 million, reflecting a year-over-year increase of 7% [4]. Group 2: Market Performance - Legacy Housing shares have shown a return of 5% over the past month, slightly outperforming the Zacks S&P 500 composite, which increased by 4.9% [5]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5].

BEDFORD, Texas, Oct. 14, 2024 (GLOBE NEWSWIRE) -- Legacy Housing Corporation ("Legacy" or the "Company", NASDAQ: LEGH) will release its financial results for the third quarter ended September 30, 2024, after markets close on Tuesday, November 12, 2024. The Company will then host a conference call at 10:00 a.m. Central Time on Wednesday, November 13, 2024. To access the conference call, please pre-register using this link. Registrants will receive confirmation with dialin details. A replay of the webcast wil ...

Tony Anderson/DigitalVision via Getty Images Over the past several decades, the average home has only gotten larger in size. That increase in size has actually been one of the primary drivers behind home affordability issues in this country. As an example, the median square footage of a single-family home that was built sometime in the 1960s would be around 1,500 square feet today. This is significantly greater than the 750 square feet that the original Levittown home was. By 2009, the average single-family ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): August 8, 2024 LEGACY HOUSING CORPORATION (Exact name of registrant as specified in its charter) | --- | --- | --- | |------------------------------------|----------------------|-----------------------| | Texas | 001-38761 | 20-2897516 | | (State or Other Jurisdiction | (Commission | (IRS Emplo ...

Financial Data and Key Metrics Changes - Product sales decreased by $10.7 million or 25.2% in Q2 2024 compared to Q2 2023, primarily due to a decrease in unit volumes shipped [4] - Net revenue per unit sold decreased by 1.3% to $61,600 in Q2 2024 compared to the same period in 2023 [4] - Net income increased by 7.8% to $16.2 million in Q2 2024 compared to Q2 2023, with basic earnings per share increasing by $0.05 or 8.7% [7] - Book value per basic share outstanding increased by 13.2% to $19.17 from the same period in 2023 [8] - Cash decreased to approximately $0.1 million as of June 30, 2024, from $0.7 million as of December 31, 2023 [7] Business Line Data and Key Metrics Changes - Consumer MHP and dealer loans interest income increased by $1.4 million or 16.0% in Q2 2024 compared to Q2 2023 due to growth in loan portfolios [5] - Other revenue decreased by $0.8 million or 45.5% in Q2 2024 compared to Q2 2023, primarily due to a decrease in dealer finance fees [5] Market Data and Key Metrics Changes - Retail finance applications increased by 34% in Q2 2024 compared to Q2 2023, indicating a positive trend in consumer financing [9] - The community business has been impacted by higher interest rates, leading to a decrease in transaction volume [9] Company Strategy and Development Direction - The company aims to build its backlog to increase production volume, with a focus on managing margins at lower production levels [10][11] - The company is actively monetizing real estate assets on its balance sheet, which have not received credit in public markets [12] - The company is focusing on improving its retail business, which has underperformed historically, by embracing technology and modern sales approaches [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market improving, citing positive sales trends from larger competitors [45] - The company is addressing specific challenges that have distracted it from managing sales effectively, with expectations for improved performance in the second half of the year [45] - Management noted that while labor costs are a concern, they are focused on maintaining gross margins despite potential volume increases [29] Other Important Information - The company repurchased 170,342 shares for $3.5 million during Q2 2024, with an additional $10 million authorized for share repurchase [8] - A binding settlement agreement was signed to resolve litigation with a long-term MHP customer, which is expected to positively impact future operations [13] Q&A Session Summary Question: Impact of delayed shipments in Georgia and Texas - Management indicated that delays primarily occurred in Georgia, affecting shipments that will be pushed into Q3 [15] Question: Changes in order rates and backlog - Management noted that while they do not publish backlog figures, internal sales have shown improvement, and they are optimistic about future orders [16] Question: MHP loan portfolio performance - Management explained that the MHP loan portfolio has seen slower growth due to decreased park sales, but interest rates will adjust as loans flip to variable [23][24] Question: Gross profit margin sustainability - Management expressed confidence in maintaining gross profit margins despite labor cost pressures, with production ramping up in Georgia [29] Question: Future stock repurchase plans - Management stated that stock repurchases will be opportunistic based on internal calculations of liquidation value [31] Question: Production quality and plans in Georgia - Management reported significant improvements in production quality in Georgia and is optimistic about future sales growth [36][37]