Legacy Housing is using its lengthy experience in designing and manufacturing mobile homes to strike out into the latest housing innovation – the tiny home. The Company facilitates distribution of its products with financing programs for end users, dealers and mobile home parks. Legacy also develops manufactured housing communities. In the year ending December 2022, the Company reported $257.0 million in total revenue, the majority of which originated from the sale of mobile home units. The Company realized $67.8 million in net income or $2.74 in earnings per share. The Company used $1.7 million in cash resources in the year largely due to investments in lending and additions to dealer inventory. In the previous fiscal year, Legacy had converted 30% of each sales dollar to operating cash flow. In the first quarter ending March 2023, cash usage continued as the Company continued to await payments for loans to mobile home parks.
Legacy’s operation is limited in footprint, remaining predominantly in the Texas area. However, the Company has expanded to a number of additional states. The efficient operating infrastructure is expected to continue to product strong profits as the Company expands. Return on investment tops 14.8%, double the Company’s cost of capital estimated at 7.1%. This is an impressive achievement in excess capital that can be directed to internal growth investments. Shareholders will be the ultimate beneficiaries with rewards like return on equity at 19.6% in 2023.
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