NASDAQ$LEGH

Legacy Housing Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Legacy Housing reported Q4 2019 results with revenue increase and significant net income growth.

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.

Headline financials

Total Revenue

$43.3M

Previous: $34.6M+25.0%
EPS (adj)

$0.28

Previous: $0.13+115.4%
Capital Expenditures

-$272K

Previous: $1.36M-120.0%
Free Cash Flow

-$7M

Previous: $1.62M-533.0%
Net Income

$6.9M

Previous: $2.78M+148.4%
Operating Income

$8.92M

Previous: $4.11M+116.9%
Gross Profit

$15.7M

Previous: $10.7M+46.0%
Cash & Equivalents

$1.72M

Previous: $2.6M-33.7%
Total Assets

$284M

Previous: $235M+20.7%
Stock-Based Comp

$108K

No prior period

Revenue & EPS history

Legacy Housing · Revenue · Quarterly

$43.3M

Q4 2019+25%vs Q4 2018
Beat estimate in 8 of 9 quarters(89%)
ActualEstimate

Forward guidance

Legacy Housing anticipates challenges in 2020 due to the COVID-19 pandemic and is proactively addressing these issues.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+3.0%

Avg return

Earnings day

+4.6%

Avg return

5 days after

+5.9%

Avg return

30 days after

59%

19 / 32 earnings

Positive

+32.9%

Q4 2021

Best reaction

-15.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+3.0%+10.3%
Q4 2025+1.7%+4.9%+15.3%
Q3 2025-5.9%-9.9%-12.1%
Q1 2025-7.9%-8.3%-13.1%
Q4 2024+2.7%+4.8%-3.6%
Q3 2024-3.6%-4.9%-5.7%
Q2 2024-1.3%-2.3%-3.2%
Q1 2024+11.4%+13.7%+8.1%
Q4 2023-15.0%-15.8%-18.7%
Q3 2023+19.0%+24.6%+22.0%
Q2 2023-2.5%-5.4%-6.7%
Q1 2023+0.8%-1.4%-7.5%
Q4 2022+13.2%+7.0%+10.2%
Q3 2022+2.7%+4.3%+12.2%
Q2 2022-0.6%+0.0%-3.8%
Q1 2022+1.8%+5.1%-2.4%
Q4 2021+32.9%+31.1%+26.7%
Q3 2021+18.4%+28.8%+22.1%
Q2 2021+4.4%+2.8%+5.0%
Q1 2021-6.8%-0.5%-2.7%
Q4 2020+0.7%+9.0%+13.7%
Q3 2020+5.4%+6.4%+6.3%
Q2 2020+6.4%+8.7%+1.2%
Q1 2020+18.7%+14.3%+32.3%
Q4 2019-3.5%-10.4%+10.0%
Q3 2019-0.6%+11.8%+1.6%
Q3 2018-0.6%+11.8%+1.6%
Q2 2018-2.1%-0.8%+21.5%
Q2 2019+1.4%+0.7%+22.7%
Q4 2018+2.5%+6.1%+7.2%
Q1 2018+2.5%+3.3%+8.4%
Q1 2019+1.6%+5.0%+9.9%
Q4 2017

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