Legacy Housing Corporation reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net revenue and product sales compared to the same periods in 2023. For the third quarter of 2024, net revenue was $44.3 million, down 11.4% from $49.9 million in 2023. Product sales decreased by 18.5%, totaling $30.2 million, compared to $37.0 million in the prior year. For the nine-month period, net revenue was $130.0 million, a decrease of 16.4% from $155.4 million in 2023, with product sales down 24.4% to $92.7 million.

Despite the revenue decline, the company managed to reduce total operating expenses for the three months ended September 30, 2024, to $28.9 million from $30.9 million in 2023, and for the nine months, expenses decreased to $81.9 million from $100.6 million. This led to income from operations of $15.3 million for the third quarter, down from $19.0 million, and $48.1 million for the nine months, compared to $54.9 million in 2023. Net income for the third quarter was $15.8 million, slightly lower than $16.1 million in 2023, while for the nine months, net income was $47.1 million, down from $47.4 million.

The company’s consumer, mobile home park (MHP), and dealer loans interest income increased significantly, rising 17.3% to $10.3 million for the third quarter and 23.2% to $30.8 million for the nine months. The consumer loan portfolio grew by $15.6 million, and the MHP loan portfolio increased by $22.0 million.

Legacy Housing's total assets rose to $521.4 million as of September 30, 2024, from $506.7 million at the end of 2023, while total liabilities decreased significantly to $42.1 million from $70.0 million. Retained earnings increased to $306.9 million from $259.8 million, contributing to total stockholders' equity of $479.3 million, up from $436.7 million.

Strategically, the company has been active in acquiring properties for developing manufactured housing communities and subdivisions. It also refinanced $48.6 million in debt through a new two-year promissory note, secured by mobile homes and parks. The company’s share repurchase program remains robust, with $5.4 million spent on repurchasing shares in the nine months ended September 30, 2024, and approximately $14.6 million remaining for future repurchases.

Legacy Housing continues to face challenges from rising inflation and interest rates, which may impact its gross margins and access to affordable financing for home buyers and community developers. The company is exploring opportunities to enhance production capacity and manage its operations effectively in response to market conditions.