Legacy Housing Corporation has recently released its 10-K report, revealing key insights into the company's performance and operations. The company primarily focuses on building, selling, and financing manufactured homes and tiny houses in the southern United States. As of December 31, 2023, Legacy Housing Corporation is the sixth largest producer of manufactured homes in the U.S., offering a range of homes from 1 to 5 bedrooms with 1 to 3 1/2 bathrooms. In 2023, the company sold 2,877 home sections, compared to 4,189 in 2022.
In the 10-K report, Legacy Housing Corporation highlighted its financial performance and operations. The company's total net revenue for the year ended December 31, 2023, was $189,144, representing a decrease of 26.4% from the previous year. This decline was mainly driven by a 34.7% decrease in product sales, which amounted to $145,100 in 2023 compared to $222,052 in 2022. Despite the decrease in product sales, consumer and MHP loans interest increased by 31.0% to $37,420 in 2023 from $28,564 in 2022.
The company's operating expenses also saw a significant decrease, totaling $124,557 in 2023, down 30.4% from $178,997 in 2022. This decrease was attributed to lower costs of product sales and reduced selling, general administrative expenses, and dealer incentives. As a result, Legacy Housing Corporation reported an income from operations of $64,587 in 2023, down 17.2% from $78,018 in 2022.
In terms of financing solutions, Legacy Housing Corporation offers three types of financing options to its customers: inventory financing for independent retailers, consumer financing for end-users, and financing solutions for manufactured housing community owners. The company believes that offering competitive financing options provides it with several competitive advantages and enables it to capture sales that may not have otherwise occurred.
Furthermore, the report highlighted factors that may affect the company's performance, including property acquisitions for developing manufactured housing communities, providing financing solutions to customers, and managing the impact of inflation on profitability. Legacy Housing Corporation also emphasized its ability to maintain gross margins and fulfill current orders for manufactured homes as key factors affecting its financial performance.
Check out the company's full 10-K submission here.
