Legacy Housing Company (NASDAQ: LEGH) recently reported its Q3 financial earnings results.
Company’s operating revenue in the Q3 of 2020 was $10.8 million, which was a boost of $2.8 million and a boost of 34.5 percent from the $8.1 million posted in the Q3 of 2019. Operating income increased by $10.4 million or 31.4 percent on a twelve-month basis. Revenue was $43.7 million for the Q3 of 2020, which was a rise of $1.8 million and a boost of 4.3 percent over total revenue of $41.9 million in the Q3 of 2019.
In the reported quarter of 2020, Legacy Housing’s marketing, general and administrative costs were $4.5 million, a 28.1 percent drop of $1.8 million from $6.3 million in the Q3 of 2019. This was attributed to a drop in labor costs, the payment of bad debt expenses and credit defaults, the cost of warranty service, and consultancy and technical costs.
In the Q3 of 2020, interest revenue from both the consumer loan and mobile home park loan portfolios was $6.4 million, a rise of 13.0 percent from the $5.7 million reported in the Q3 of 2019. In the Q3 of 2020, gross inventory was decreased by $2.3 million, or 5.7 percent, to $38.0 million, compared to $40.3 million in the Q3 of 2019.
Net profits rose by $2.3 million to $8.4 million in the Q3 of 2020, or 37.6 percent, compared to $6.1 million in the Q3 of 2019. Based on diluted weighted average shares outstanding, earnings per share for the Q3 of 2020 were $0.35 on 24,214,279 diluted outstanding shares versus $0.25 on 24,338,839 diluted outstanding shares for the similar quarter of 2019.
Legacy Housing Company’s Executive Chairman of the Board, Curtis D. Hodgson, reflected, “We are pleased with the performance of the previous quarter, particularly with our potential to perform better than 2019 earnings results amid the 2020 uncertainties. Demand for mobile housing continues to rise as we look to conclude the remainder of the year.”