Legacy Housing Corporation Reports First Quarter 2025 Financial Results

Rhea-AI Summary

Legacy Housing Corporation (NASDAQ: LEGH) reported its Q1 2025 financial results, showing significant declines across key metrics. Net revenue decreased 17.5% to $35.7 million, while income from operations fell 30.8% to $11.6 million compared to Q1 2024. Net income dropped 32.1% to $10.3 million, and basic earnings per share decreased 30.6% to $0.43. However, the company's book value per share increased 13.1% to $20.87, with total book value exceeding $500 million for the first time. CEO Duncan Bates noted that while inventory finance sales exceeded expectations, community shipments underperformed. The company has implemented strategic changes, including simplified product offerings, new financing solutions for community owners, and key personnel additions in manufacturing and retail positions.

Positive

• Book value per share increased 13.1% to $20.87
• Total book value exceeded $500 million for the first time
• Inventory finance sales performed above expectations
• Implementation of new financing solutions for community owners

Negative

• Net revenue declined 17.5% to $35.7 million
• Income from operations decreased 30.8% to $11.6 million
• Net income fell 32.1% to $10.3 million
• Basic earnings per share dropped 30.6% to $0.43
• Lower-than-expected shipments to communities

Insights

Financial Analyst

Legacy Housing reports significant Q1 declines across key metrics despite reaching $500M book value milestone.

Legacy Housing's Q1 2025 results reveal concerning across-the-board declines in key performance indicators. Net revenue fell 17.5% year-over-year to $35.7 million, while income from operations dropped even more sharply by 30.8% to $11.6 million. Most critically, net income decreased by 32.1% to $10.3 million and earnings per share fell 30.6% to $0.43.

The single bright spot is book value per share, which increased 13.1% year-over-year to $20.87, with the company's total book value exceeding $500 million for the first time. This suggests the company continues to build equity value despite operational challenges.

Management attributes the underperformance primarily to lower-than-expected shipments to communities, even as inventory finance sales exceeded expectations. The company has implemented several strategic initiatives in response: simplifying their product offering, introducing new financing solutions for community owners, and bringing industry veterans into key manufacturing and retail positions.

The substantial double-digit percentage declines across revenue, operating income, and net income indicate significant headwinds for Legacy's core operations. While management remains "optimistic" about the year, these results demonstrate material deterioration in the company's financial performance that should be closely monitored going forward.

BEDFORD, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Legacy Housing Corporation (“Legacy” or the “Company,” NASDAQ: LEGH) today announced its financial results for the first quarter ended March 31, 2025.

Financial Highlights

• Net revenue for the first quarter of 2025 was $35.7 million, a decrease of 17.5% from the first quarter of 2024.
• Income from operations for the first quarter of 2025 was $11.6 million, a decrease of 30.8% from the first quarter of 2024.
• Net income for the first quarter of 2025 was $10.3 million, a decrease of 32.1% from the first quarter of 2024.
• Basic earnings per share for the first quarter of 2025 was $0.43, a decrease of 30.6% from the first quarter of 2024.
• Book value per share¹ for the first quarter of 2025 was $20.87, an increase of 13.1% from the first quarter of 2024.
  

Duncan Bates, President and Chief Executive Officer, stated: “Inventory finance sales were ahead of our expectations, but first quarter results were negatively impacted by lower-than-expected shipments to communities during the quarter. Recently, we simplified our product offering, introduced a new financing solution for community owners, and added industry veterans to our team in key manufacturing and retail positions. During the first quarter, Legacy’s book value topped $500 million for the first time in the Company’s history. I am excited about the changes and remain optimistic about the year.”

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 Tuesday, May 13, 2025. To access the conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details.

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 one of the largest producers of manufactured homes in the United States.   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.

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

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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.

FAQ

What were Legacy Housing's (LEGH) Q1 2025 earnings results?

Legacy Housing reported Q1 2025 net income of $10.3 million, with basic EPS of $0.43, representing decreases of 32.1% and 30.6% respectively from Q1 2024.

How much did LEGH's revenue decline in Q1 2025?

Legacy Housing's net revenue decreased 17.5% to $35.7 million in Q1 2025 compared to Q1 2024.

What was Legacy Housing's book value per share in Q1 2025?

Legacy Housing's book value per share was $20.87 in Q1 2025, representing a 13.1% increase from Q1 2024.

What strategic changes did Legacy Housing implement in Q1 2025?

Legacy Housing simplified its product offering, introduced new financing solutions for community owners, and added industry veterans to key manufacturing and retail positions.

Why did Legacy Housing's performance decline in Q1 2025?

The decline was primarily attributed to lower-than-expected shipments to communities, although inventory finance sales performed above expectations.