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LEGH Nasdaq· Legacy Housing Corporation
Earnings report Q3 2023

LEGACY HOUSING CORPORATION Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

LEGACY HOUSING CORPORATION generated a total net revenue of $49.94 million in the latest quarter. This revenue was derived from three main segments: product sales, consumer and MHP loans interest, and other. Product sales accounted for the majority of the revenue at $37.01 million, followed by consumer and MHP loans interest at $8.80 million, and other revenue at $4.13 million.

Strengths

Despite the overall decrease in revenue, LEGACY HOUSING CORPORATION demonstrated strength in its consumer and MHP loans interest segment, which saw an increase of 25.7% compared to the same quarter last year. This growth can be attributed to the company's effective management of its loan portfolio and the favorable interest rate environment. Additionally, the company's management highlighted the successful conversion of certain independent dealer consignment arrangements to financing arrangements, which contributed to the overall revenue.

Challenges

LEGACY HOUSING CORPORATION faced challenges in its product sales segment, which experienced a significant decrease of $11.67 million or 24.0% compared to the same quarter last year. This decline was primarily driven by industry-wide factors, including a decrease in unit volumes and a decrease in net revenue per unit. The company also cited market factors as contributing to the decline in this segment.

Noteworthy

It is noteworthy that LEGACY HOUSING CORPORATION's overall revenue decreased by 12.9% in the latest quarter compared to the same quarter last year. This decline was primarily driven by the decrease in product sales revenue. However, the company's consumer and MHP loans interest segment showed strong growth, indicating the company's ability to diversify its revenue streams.

Summary

LEGACY HOUSING CORPORATION faced challenges in its product sales segment, resulting in a decrease in overall revenue for the latest quarter. However, the company demonstrated strength in its consumer and MHP loans interest segment, which experienced significant growth. Despite the decline in revenue, the company's management highlighted successful initiatives such as the conversion of dealer arrangements and effective loan portfolio management. LEGACY HOUSING CORPORATION will need to address the challenges in its product sales segment and continue to capitalize on the opportunities in its consumer and MHP loans interest segment to drive future revenue growth.

Source documents

Form 10-Q  filed on Nov 09, 2023
26 pages scanned

Reference data

Company financials Q3 revenue 49.9M
Analyst estimates Q3 EPS beat by 2.67%
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