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Dec 31, 2019
Legacy Housing Q4 2019 Earnings Report
Legacy Housing reported Q4 2019 results with revenue increase and significant net income growth.
Key Takeaways
Legacy Housing Corporation reported a strong fourth quarter in 2019, with a 24% increase in gross revenue and a 147% increase in net income compared to the same period in 2018. The company's performance was driven by increased sales and interest income, alongside growth in its loan portfolios. Despite anticipating challenges from the COVID-19 pandemic in 2020, the company remains proactive and well-positioned.
Gross revenue for Q4 2019 increased by 24% to $43.3 million compared to $35.0 million in Q4 2018.
Interest income grew by 15% to $5.9 million in Q4 2019.
Company-owned store sales rose by 87% to $4.9 million in Q4 2019.
Net income for Q4 2019 increased by 147% to $6.9 million, compared to $2.8 million in Q4 2018.
Legacy Housing
Legacy Housing
Forward Guidance
Legacy Housing anticipates challenges in 2020 due to the COVID-19 pandemic and is proactively addressing these issues.
Positive Outlook
- Offering discounts for the sale of aged inventory on dealer and company-owned store lots.
- Offering discounts on orders for new units.
- Reducing down payment requirements for certain manufactured home community operators.
- Order book is still strong.
- Company is well-positioned once the situation begins to normalize.
Challenges Ahead
- Facing challenges in 2020 due to the COVID-19 pandemic.
- Suspended most overtime.
- Modified rates of pay for non-production workers.
- Production labor has been slightly reduced.
- Anticipation of reduced demand in the immediate future due to COVID-19’s impact on retail sales.