Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________ Commission file number 001-38761 Legacy Housing Corporation (Exact Name of Registrant as Specified in its Charter) Texas 20 ...

Financial Data and Key Metrics Changes - Net revenue increased to $57.3 million in Q3 2022, a 1.5% improvement over Q3 2021, driven by price increases despite a decrease in shipments from the Georgia facility [6] - Interest revenue from retail and commercial loan portfolios was $7 million, slightly down from Q3 2021 due to large payoffs in the commercial loan portfolio [7] - Income from operations rose to $16.9 million, a 10% increase from Q3 2021, primarily due to price increases and lower cost of sales [7] - Net income for the quarter was $14.7 million, a 13.4% increase over Q3 2021, with basic earnings per share growing to $0.60, an 11.1% increase [9] - The company ended the quarter with a net cash position of $11.3 million and no drawings on its line of credit [10] Business Line Data and Key Metrics Changes - The Georgia facility experienced a significant slowdown in production due to quality challenges, with shipments in August and September at approximately 10% of normal levels [20] - Production in Georgia decreased by about 40%, while production in Texas increased slightly [21] - The backlog in Georgia is solid, with approximately 800 units, indicating a strong order flow despite recent production issues [22] Market Data and Key Metrics Changes - Labor costs have risen to approximately $9 per square foot, up from $4 pre-COVID, indicating inflationary pressures in the labor market [23] - The company has seen an increase in applicants for positions, suggesting a potential easing of labor shortages as the housing market slows [23] Company Strategy and Development Direction - The company plans to maintain pricing while reducing raw material inventory to capitalize on lower material costs in the coming quarters [8] - Management aims to focus on improving operational efficiencies, including inventory management and reducing SG&A expenses [12] - The company is exploring new product lines and geographic opportunities to drive growth, particularly in land development and temporary classroom products [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2023, citing a strong backlog and the potential for growth despite current economic challenges [12] - The company believes that the slowdown in the broader housing market may create opportunities to acquire assets at attractive prices [51] - Management noted that the integrated business model with multiple recurring earnings streams will provide resilience in a slowing economy [10] Other Important Information - The company implemented a $10 million stock repurchase program as part of its capital allocation strategy [9] - Management highlighted the importance of in-house financing in maintaining competitive pricing and customer loyalty [39] Q&A Session Summary Question: What happened in Georgia? - The slowdown was due to quality challenges and increased regulatory scrutiny, leading to a significant decrease in production and shipments [20] Question: How is the labor situation currently? - Labor costs have increased, but there has been a rise in applicants, indicating potential improvements in labor availability [23] Question: Can you discuss the loan portfolio and pricing strategy? - The company has not raised rates despite market pressures, maintaining competitive pricing for customers [25] Question: What are the capital allocation plans moving forward? - The company is focused on organic growth and exploring new opportunities while weighing stock repurchases against other capital uses [30] Question: How does the macro environment impact the company? - The company anticipates continued challenges in the site-built housing market but remains optimistic about the manufactured home sector [51]

Financial Performance - For the three months ended September 30, 2022, total net revenue increased by $855,000, or 1.5%, to $57.325 million compared to $56.470 million in the same period of 2021 [163]. - Total net revenue for the nine months ended September 30, 2022, was $181.5 million, an increase of $36.5 million, or 25.1%, from $145.0 million in the same period in 2021 [174]. - Net income for the three months ended September 30, 2022, was $14.735 million, an increase of $1.742 million, or 13.4%, compared to $12.993 million in the same period of 2021 [163]. - Net income for the nine months ended September 30, 2022, was $48.1 million, an increase of $11.7 million, or 32.3%, compared to $36.3 million in the same period in 2021 [174]. - Income from operations for the nine months ended September 30, 2022, was $55.6 million, an increase of $12.6 million, or 29.4%, compared to $43.0 million in the same period in 2021 [174]. Sales and Revenue Composition - Product sales increased by $378,000, or 0.8%, to $48.678 million, driven by higher average sales prices despite a decrease in unit volumes [165]. - Product sales increased by $33.9 million, or 27.8%, during the nine months ended September 30, 2022, driven by higher average sales prices and increased unit volumes [176]. - The net revenue per product sold increased by $5, or 9.2%, to $64.6 due to rising material and labor costs, resulting in higher home sales prices [165]. - The company sold 753 total products during the three months ended September 30, 2022, a decrease of 63 units, or 7.7%, compared to 816 units in the same period of 2021 [165]. - Other revenue increased by $734,000, or 80.6%, to $1.645 million, driven by increases in servicer fee revenue, commercial lease rents, and consignment fees [168]. Costs and Expenses - The cost of product sales decreased by $2.166 million, or 6.1%, primarily due to a decrease in units sold, despite increases in material and labor costs [169]. - The cost of product sales increased by $18.6 million, or 21.7%, during the nine months ended September 30, 2022, primarily due to an increase in units sold and rising material and labor costs [180]. - Selling, general and administrative expenses increased by $5.3 million, or 35.2%, during the nine months ended September 30, 2022, compared to the same period in 2021 [181]. Cash Flow and Financial Position - Cash and cash equivalents increased to approximately $11.3 million as of September 30, 2022, compared to $1.0 million as of December 31, 2021 [185]. - Net cash provided by operating activities decreased by $49.7 million during the nine months ended September 30, 2022, compared to the same period in 2021 [187]. Compliance and Financial Obligations - The Company is required to maintain a tangible net worth of at least $120,000 and a debt to EBITDA ratio of 4 to 1 or less, and was in compliance with these covenants as of September 30, 2022 [196]. - The maximum contingent obligations under the repurchase agreements were approximately $9,905 as of September 30, 2022, compared to $4,908 as of December 31, 2021 [200]. - Operating lease obligations total $3,112, with $176 due in 2022, $1,352 in 2023-2024, $1,154 in 2025-2026, and $430 after 2026 [199]. Internal Controls and Reporting - The Company has identified material weaknesses in internal control over financial reporting, particularly in revenue recognition and accounts payable processing, which are expected to be remediated by the end of fiscal 2022 [208]. - The Company’s disclosure controls and procedures were deemed not effective as of September 30, 2022, due to identified material weaknesses [206]. - There were no changes in internal control over financial reporting that materially affected the Company's controls during the third quarter of fiscal 2022 [209]. Other Financial Information - Interest expense under the New Revolver for the nine months ended September 30, 2022, was $326, down from $827 in the same period of 2021, with an outstanding balance of $0 as of September 30, 2022, compared to $7,993 as of December 31, 2021 [196]. - The effective tax rate for the nine months ended September 30, 2022, was 17.5%, compared to 17.0% for the same period in 2021 [183]. - The Company has not drawn any amounts on the $10,000 credit facility associated with the PILOT agreement, which provides incentives through property tax abatements [197]. - The Company is classified as an "emerging growth company" and has elected to delay the adoption of certain accounting standards until it is no longer classified as such [203]. - The Company has not recorded any reserve for repurchase commitments as of September 30, 2022, considering its obligations on current contracts to be immaterial [200].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38761 Legacy Housing Corporation (Exact name of registrant as specified in its charter) Texas 20-2897516 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR (State or other j ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38761 Legacy Housing Corporation (Exact name of registrant as specified in its charter) Texas 20-2897516 (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38761 Legacy Housing Corporation (Exact Name of Registrant as Specified in its Charter) Texas 20-2897516 (State or Other Jurisdiction of Incorporatio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38761 Legacy Housing Corporation (Exact name of registrant as specified in its charter) Texas 20-2897516 (State or ot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38761 Legacy Housing Corporation (Exact name of registrant as specified in its charter) Texas 20-2897516 (State or other j ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38761 Legacy Housing Corporation (Exact name of registrant as specified in its charter) Texas 20-2897516 (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________ Commission file number 001-38761 Legacy Housing Corporation (Exact Name of Registrant as Specified in its Charter) Texas 20 ...