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 ...

PART I - FINANCIAL INFORMATION This section presents Legacy Housing Corporation's unaudited financial statements and management's analysis of operations [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Legacy Housing Corporation's unaudited condensed financial statements for Q2 and H1 2021 [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) The balance sheet shows growth in total assets, liabilities, and stockholders' equity as of June 30, 2021 Condensed Balance Sheet Data (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $69,731 | $54,963 | | Consumer loans, net | $110,362 | $106,572 | | Notes receivable from MHP | $133,606 | $123,872 | | **Total assets** | **$373,794** | **$338,616** | | **Total current liabilities** | $37,376 | $36,406 | | Lines of credit | $49,675 | $36,174 | | **Total liabilities** | **$93,042** | **$79,423** | | **Total stockholders' equity** | **$280,752** | **$259,193** | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) Net income and diluted EPS increased for Q2 and H1 2021, driven by higher product sales and interest income Q2 2021 vs Q2 2020 Performance (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | | :--- | :--- | :--- | | Total net revenue | $48,589 | $46,006 | | Income from operations | $14,702 | $13,068 | | Net income | $12,428 | $10,040 | | Diluted EPS | $0.51 | $0.41 | H1 2021 vs H1 2020 Performance (in thousands, except per share data) | Metric | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Total net revenue | $88,528 | $84,280 | | Income from operations | $25,362 | $23,677 | | Net income | $21,451 | $19,063 | | Diluted EPS | $0.89 | $0.79 | [Condensed Statements of Cash Flows](index=5&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating and investing activities was offset by financing activities for H1 2021 Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,978) | $(5,248) | | Net cash used in investing activities | $(8,482) | $(414) | | Net cash provided by financing activities | $13,501 | $4,962 | | **Net increase (decrease) in cash** | **$41** | **$(700)** | [Condensed Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased significantly due to retained net income for the six months ended June 30, 2021 - Stockholders' equity grew to **$280.8 million** at June 30, 2021, mainly due to the retention of net income[15](index=15&type=chunk) [Notes to Condensed Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Condensed%20Financial%20Statements%20%28Unaudited%29) These notes detail the company's operations, accounting policies, debt, and contingencies - The company's business model is vertically integrated, covering manufacturing, sales, transportation, and financing for mobile homes and communities[19](index=19&type=chunk) - The consumer loan portfolio had an average interest rate of **13.6%** as of June 30, 2021. The allowance for loan losses was **$0.814 million** against a total portfolio of **$119.5 million**[55](index=55&type=chunk)[65](index=65&type=chunk) - The company has a **$70 million** revolving line of credit with Capital One, with an outstanding balance of **$49.7 million** as of June 30, 2021[79](index=79&type=chunk)[81](index=81&type=chunk) - The effective tax rate for H1 2021 was **16.8%**, lower than the **21%** federal statutory rate, primarily due to a federal tax credit for energy-efficient construction[99](index=99&type=chunk) - The company is contingently liable for up to **$3.4 million** under repurchase agreements with dealers for their inventory financing[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, liquidity, capital resources, and strategic initiatives for Q2 and H1 2021 [Overview](index=33&type=section&id=Overview) Legacy Housing, the sixth largest U.S. manufactured home producer, operates a vertically integrated model - The company is the **sixth largest producer** of manufactured homes in the United States[121](index=121&type=chunk) - Legacy operates a vertically integrated model, including manufacturing, distribution through **106 independent** and **13 company-owned** retail locations, and financing services[123](index=123&type=chunk)[124](index=124&type=chunk) - For H1 2021, Texas was the largest market, accounting for **50%** of manufactured homes sold[124](index=124&type=chunk) [Factors Affecting Our Performance](index=35&type=section&id=Factors%20Affecting%20Our%20Performance) Performance is influenced by expansion strategies, production capacity, and COVID-19 pandemic risks - Key growth strategies include expanding retail centers, with each requiring **$0.5 million to $1.5 million** in capital[132](index=132&type=chunk) - The company has purchased several properties for over **$13.1 million** to develop new manufactured housing communities[131](index=131&type=chunk)[132](index=132&type=chunk) - The company plans to increase production at its Georgia facility to meet growing demand, as its Texas facilities are near peak capacity[133](index=133&type=chunk)[135](index=135&type=chunk) - The COVID-19 pandemic poses several risks, including potential for increased loan losses, reduced sales, production disruptions, and supply chain delays[137](index=137&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Revenue growth for Q2 and H1 2021 was driven by higher revenue per product sold, despite lower sales volume [Comparison of Three Months ended June 30, 2021 and 2020](index=38&type=section&id=Comparison%20of%20Three%20Months%20ended%20June%2030%2C%202021%20and%202020) Q2 2021 saw increased revenue and net income, driven by higher revenue per product sold despite lower sales volume Q2 2021 vs Q2 2020 Key Metrics (in thousands) | Metric | 2021 | 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total net revenue | $48,589 | $46,006 | $2,583 | 5.6% | | Income from operations | $14,702 | $13,068 | $1,634 | 12.5% | | Net income | $12,428 | $10,040 | $2,388 | 23.8% | - Product sales revenue increased **4.9%** due to a **27.9%** increase in net revenue per product sold (**$52.5 thousand** vs **$41.1 thousand**), despite a **17.9%** decrease in total products sold (**783** vs **954**)[140](index=140&type=chunk) - SG&A expenses increased by **$1.1 million** (**27.1%**), primarily due to a **$0.7 million** increase in salaries and incentive costs and a **$0.3 million** increase in warranty costs[144](index=144&type=chunk) [Comparison of Six Months ended June 30, 2021 and 2020](index=39&type=section&id=Comparison%20of%20Six%20Months%20ended%20June%2030%2C%202021%20and%202020) H1 2021 total net revenue and net income grew, driven by higher revenue per product sold despite lower sales volume H1 2021 vs H1 2020 Key Metrics (in thousands) | Metric | 2021 | 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total net revenue | $88,528 | $84,280 | $4,248 | 5.0% | | Income from operations | $25,362 | $23,677 | $1,685 | 7.1% | | Net income | $21,451 | $19,063 | $2,388 | 12.5% | - Product sales revenue increased **4.3%** due to a **26.4%** increase in net revenue per product sold (**$52.0 thousand** vs **$41.2 thousand**), despite a **17.5%** decrease in total products sold (**1,410** vs **1,709**)[150](index=150&type=chunk) - Other income decreased by **$0.6 million**, primarily because the 2020 period included a **$1.1 million** gain from a lawsuit settlement[155](index=155&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash flow, existing cash, and available credit for future operations - The company believes cash flow from operations, cash on hand (**$0.9 million** as of June 30, 2021), and available credit will be sufficient for operations and growth for the next **12-18 months**[157](index=157&type=chunk) Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,978) | $(5,248) | | Net cash used in investing activities | $(8,482) | $(414) | | Net cash provided by financing activities | $13,501 | $4,962 | - The company has a **$70 million** revolving line of credit with Capital One maturing in March 2024. As of June 30, 2021, the outstanding balance was **$49.7 million**, with **$20.3 million** of available credit[162](index=162&type=chunk)[163](index=163&type=chunk) - In April 2020, a **$15 million** revolving line of credit with Veritex Community Bank was paid in full and terminated. A **$6.5 million** PPP loan obtained in April 2020 was paid in full in May 2020[165](index=165&type=chunk)[166](index=166&type=chunk) [Off Balance Sheet Arrangements](index=45&type=section&id=Off%20Balance%20Sheet%20Arrangements) Off-balance sheet arrangements primarily involve repurchase agreements for dealer inventory financing - The company has contingent repurchase obligations for dealer inventory financing, with a maximum potential liability of **$3.4 million** as of June 30, 2021[169](index=169&type=chunk) [Critical Accounting Estimates](index=45&type=section&id=Critical%20Accounting%20Estimates) No material changes have occurred in the company's critical accounting estimates since its 2020 Form 10-K filing - No material changes have occurred in the company's critical accounting estimates since its 2020 Form 10-K filing[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable as the company qualifies as a smaller reporting company - Not applicable for smaller reporting companies[173](index=173&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses, with remediation underway - Management concluded that disclosure controls and procedures were not effective as of June 30, 2021[175](index=175&type=chunk) - The ineffectiveness is due to previously disclosed material weaknesses, including insufficient accounting processes, personnel, IT safeguards, and segregation of duties[176](index=176&type=chunk)[177](index=177&type=chunk) - The company is implementing remediation plans and expects them to be completed by the end of fiscal 2021[177](index=177&type=chunk) PART II - OTHER INFORMATION This section provides other required information, including legal proceedings and exhibits [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are referenced in Note 12, with no expected material adverse effect - For details on legal proceedings, refer to Note 12 - Commitments and Contingencies[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[180](index=180&type=chunk) [Item 3. Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[180](index=180&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - None[180](index=180&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No other material information is reported for the period - None[180](index=180&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data - Exhibits filed include CEO/CFO certifications and XBRL data files[181](index=181&type=chunk) SIGNATURES This section contains the authorized signatures for the report [Signatures](index=49&type=section&id=Signatures_Execution) The report was duly authorized and signed on August 9, 2021, by the Chief Financial Officer - The report is signed by Thomas Kerkaert, Chief Financial Officer[185](index=185&type=chunk)

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 ...

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, 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 20-2897516 (State or ot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) Texas 20-2897516 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 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, 2020 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tra ...

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, 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) (Registrant's telephone number, i ...

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, 2019 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 ...

Legacy Housing Corporation (NASDAQ:LEGH) Q4 2019 Earnings Conference Call March 30, 2020 11:00 AM ET Company Participants Curtis Hodgson - Executive Chairman and Co-Founder Cork Van Den Handel - Chief Financial Officer Ken Shipley - CEO and Co-Founder Conference Call Participants David Burdick - Oak Ridge Mark Smith - Lake Street Capital Alex Rygiel - B. Riley FBR Operator Ladies and gentlemen, thank you for standing by. And Welcome to the Legacy Housing Corporation Q4 2019 Earnings Call. At this time, all ...

Table of Contents For the quarterly period ended September 30, 2019 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 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 Legacy Housing Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction ...