Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 05, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity Registrant Name | Legacy Housing Corporation | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38761 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 20-2897516 | |
Entity Address, Address Line One | 1600 Airport Freeway | |
Entity Address, Address Line Two | #100 | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76022 | |
City Area Code | 817 | |
Local Phone Number | 799-4900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock ($0.001 par value) | |
Trading Symbol | LEGH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 24,202,631 | |
Entity Central Index Key | 0001436208 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 809 | $ 768 |
Accounts receivable, net | 5,907 | 3,867 |
Current portion of consumer loans | 5,663 | 5,348 |
Current portion of notes receivable from mobile home parks ("MHP") | 12,178 | 12,468 |
Current portion of other notes receivable | 1,612 | 2,054 |
Inventories | 39,702 | 27,224 |
Prepaid expenses and other current assets | 3,860 | 3,234 |
Total current assets | 69,731 | 54,963 |
Consumer loans, net | 110,362 | 106,572 |
Notes receivable from mobile home parks ("MHP") | 133,606 | 123,872 |
Other notes receivable, net | 21,098 | 13,050 |
Inventories, net | 5,042 | 8,656 |
Other assets | 9,533 | 8,887 |
Property, plant and equipment, net | 24,422 | 22,616 |
Total assets | 373,794 | 338,616 |
Current liabilities: | ||
Accounts payable | 8,193 | 10,197 |
Accrued liabilities | 14,701 | 14,860 |
Customer deposits | 5,745 | 3,620 |
Escrow liability | 8,737 | 7,729 |
Total current liabilities | 37,376 | 36,406 |
Long-term liabilities: | ||
Lines of credit | 49,675 | 36,174 |
Deferred income taxes | 1,971 | 1,971 |
Accrued liabilities, net of current portion | 630 | |
Dealer incentive liability | 4,020 | 4,242 |
Total liabilities | 93,042 | 79,423 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | ||
Common stock, $.001 par value, 90,000,000 shares authorized; 24,647,696 and 24,639,125 issued and 24,202,631 and 24,194,060 outstanding at June 30, 2021 and December 31, 2020, respectively | 25 | 25 |
Treasury stock at cost, 445,065 shares at June 30, 2021 and December 31, 2020 | (4,477) | (4,477) |
Additional paid-in-capital | 175,401 | 175,293 |
Retained earnings | 109,803 | 88,352 |
Total stockholders' equity | 280,752 | 259,193 |
Total liabilities and stockholders' equity | $ 373,794 | $ 338,616 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 24,647,696 | 24,639,125 |
Common stock, shares outstanding | 24,202,631 | 24,194,060 |
Treasury stock, shares | 445,065 | 445,065 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net revenue: | ||||
Product sales | $ 41,115 | $ 39,179 | $ 73,389 | $ 70,375 |
Consumer and MHP loans interest | 6,734 | 6,067 | 13,372 | 12,491 |
Other | 740 | 760 | 1,767 | 1,414 |
Total net revenue | 48,589 | 46,006 | 88,528 | 84,280 |
Operating expenses: | ||||
Cost of product sales | 28,608 | 28,688 | 52,632 | 50,547 |
Selling, general and administrative expenses | 5,165 | 4,064 | 9,958 | 9,676 |
Dealer incentive | 114 | 186 | 576 | 380 |
Income from operations | 14,702 | 13,068 | 25,362 | 23,677 |
Other income (expense): | ||||
Non-operating interest income | 429 | 215 | 677 | 451 |
Miscellaneous, net | 34 | 11 | 238 | 48 |
Gain on settlement, net | 1,075 | |||
Interest expense | (283) | (239) | (509) | (577) |
Total other | 180 | (13) | 406 | 997 |
Income before income tax expense | 14,882 | 13,055 | 25,768 | 24,674 |
Income tax expense | (2,454) | (3,015) | (4,317) | (5,611) |
Net income | $ 12,428 | $ 10,040 | $ 21,451 | $ 19,063 |
Weighted average shares outstanding: | ||||
Basic | 24,202,631 | 24,201,220 | 24,200,879 | 24,260,274 |
Diluted | 24,234,913 | 24,201,823 | 24,229,265 | 24,260,938 |
Net income per share: | ||||
Basic | $ 0.51 | $ 0.41 | $ 0.89 | $ 0.79 |
Diluted | $ 0.51 | $ 0.41 | $ 0.89 | $ 0.79 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income | $ 21,451 | $ 19,063 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation expense | 754 | 572 |
Amortization of debt discount and issuance costs | 267 | 18 |
Provision for loan loss-consumer loans | 558 | 280 |
Share based payment expense | 108 | 133 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,040) | 316 |
Consumer loans originations | (11,730) | (7,918) |
Consumer loans principal collections | 6,393 | 4,915 |
Notes receivable MHP originations | (23,649) | (37,538) |
Notes receivable MHP principal collections | 13,428 | 9,813 |
Inventories | (8,864) | 264 |
Prepaid expenses and other current assets | (893) | 1,928 |
Other assets | (876) | (1,204) |
Accounts payable | (2,004) | (2,560) |
Accrued liabilities | (792) | 6,412 |
Customer deposits | 2,125 | 171 |
Escrow liability, net | 1,008 | 18 |
Dealer incentive liability | (222) | 69 |
Net cash used in operating activities | (4,978) | (5,248) |
Investing activities: | ||
Purchases of property, plant and equipment | (2,330) | (782) |
Issuance of notes receivable | (13,554) | (278) |
Notes receivable collections | 5,940 | 116 |
Purchases of loans | (191) | |
Collections from purchased loans | 1,462 | 721 |
Net cash used in investing activities | (8,482) | (414) |
Financing activities: | ||
Treasury stock purchase | (1,417) | |
Proceeds from issuance of note payable | 6,546 | |
Principal payments on note payable | (6,546) | |
Proceeds from lines of credit | 46,109 | 30,232 |
Payments on lines of credit | (32,608) | (23,853) |
Net cash provided by financing activities | 13,501 | 4,962 |
Net increase (decrease) in cash and cash equivalents | 41 | (700) |
Cash and cash equivalents at beginning of period | 768 | 1,724 |
Cash and cash equivalents at end of period | 809 | 1,024 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 464 | $ 553 |
Cash paid for taxes | $ 5,700 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Treasury stock | Additional paid-in-capital | Retained earnings | Total |
Beginning Balance at Dec. 31, 2019 | $ 25 | $ (3,060) | $ 175,067 | $ 50,357 | $ 222,389 |
Beginning Balance (in shares) at Dec. 31, 2019 | 24,620,079 | ||||
Share based compensation expense and stock units vested | 97 | 97 | |||
Share based compensation expense and stock units vested (in shares) | 17,143 | ||||
Purchase of treasury stock | (682) | (682) | |||
Net income | 9,023 | 9,023 | |||
Ending Balance at Mar. 31, 2020 | $ 25 | (3,742) | 175,164 | 59,380 | 230,827 |
Ending Balance (in shares) at Mar. 31, 2020 | 24,637,222 | ||||
Beginning Balance at Dec. 31, 2019 | $ 25 | (3,060) | 175,067 | 50,357 | 222,389 |
Beginning Balance (in shares) at Dec. 31, 2019 | 24,620,079 | ||||
Net income | 19,063 | ||||
Ending Balance at Jun. 30, 2020 | $ 25 | (4,477) | 175,200 | 69,420 | 240,168 |
Ending Balance (in shares) at Jun. 30, 2020 | 24,637,222 | ||||
Beginning Balance at Mar. 31, 2020 | $ 25 | (3,742) | 175,164 | 59,380 | 230,827 |
Beginning Balance (in shares) at Mar. 31, 2020 | 24,637,222 | ||||
Share based compensation expense and stock units vested | 36 | 36 | |||
Purchase of treasury stock | (735) | (735) | |||
Net income | 10,040 | 10,040 | |||
Ending Balance at Jun. 30, 2020 | $ 25 | (4,477) | 175,200 | 69,420 | 240,168 |
Ending Balance (in shares) at Jun. 30, 2020 | 24,637,222 | ||||
Beginning Balance at Dec. 31, 2020 | $ 25 | (4,477) | 175,293 | 88,352 | $ 259,193 |
Beginning Balance (in shares) at Dec. 31, 2020 | 24,639,125 | 24,639,125 | |||
Share based compensation expense and stock units vested | 44 | $ 44 | |||
Share based compensation expense and stock units vested (in shares) | 8,571 | ||||
Net income | 9,023 | 9,023 | |||
Ending Balance at Mar. 31, 2021 | $ 25 | (4,477) | 175,337 | 97,375 | 268,260 |
Ending Balance (in shares) at Mar. 31, 2021 | 24,647,696 | ||||
Beginning Balance at Dec. 31, 2020 | $ 25 | (4,477) | 175,293 | 88,352 | $ 259,193 |
Beginning Balance (in shares) at Dec. 31, 2020 | 24,639,125 | 24,639,125 | |||
Net income | $ 21,451 | ||||
Ending Balance at Jun. 30, 2021 | $ 25 | (4,477) | 175,401 | 109,803 | $ 280,752 |
Ending Balance (in shares) at Jun. 30, 2021 | 24,647,696 | 24,647,696 | |||
Beginning Balance at Mar. 31, 2021 | $ 25 | (4,477) | 175,337 | 97,375 | $ 268,260 |
Beginning Balance (in shares) at Mar. 31, 2021 | 24,647,696 | ||||
Share based compensation expense and stock units vested | 64 | 64 | |||
Net income | 12,428 | 12,428 | |||
Ending Balance at Jun. 30, 2021 | $ 25 | $ (4,477) | $ 175,401 | $ 109,803 | $ 280,752 |
Ending Balance (in shares) at Jun. 30, 2021 | 24,647,696 | 24,647,696 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Legacy Housing Corporation (referred herein as”Legacy”, “we”, “our”, “us”, or the “Company”) was formed on January 1, 2018 as a Delaware corporation through a corporate conversion of Legacy Housing, Ltd. (the “Partnership”), a Texas limited partnership formed in May 2005. Effective December 31, 2019, the Company reincorporated from a Delaware corporation to a Texas corporation. The Company is headquartered in Bedford, Texas. The Company (1) manufactures and provides for the transport of mobile homes, (2) provides wholesale financing to dealers and mobile home parks, (3) provides retail financing to consumers and (4) is involved in financing and developing new manufactured home communities. The Company manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia. The Company relies on a network of dealers to market and sell its mobile homes. The Company also sells homes directly to dealers and mobile home parks. In December 2018, the Company sold 4,000,000 shares of its common stock through an initial public offering (“IPO”) at $12.00 per share. Proceeds from the IPO, net of $4,504 of underwriting discounts and offering expenses paid by the Company, were $43,492. In January 2019, the Company sold an additional 600,000 shares of its common stock as part of the IPO at $12.00 per share. Proceeds from the January 2019 issuance, net of $505 of underwriting discounts and offering expenses paid by the Company, were $6,695. On April 17, 2019, the Company purchased 300,000 shares of its common stock at the price of $10.20 per share, pursuant to the Company’s repurchase program. During the year ended December 31, 2020, the Company purchased 145,065 shares of its common stock at an average price of $9.77 per share, pursuant to the Company’s repurchase program. Under the repurchase program, the Company may purchase up to $10,000 of its common stock. Share purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice. Corporate Conversion Effective January 1, 2018, the Partnership converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Legacy Housing Corporation. In order to consummate the corporate conversion completed on January 1, 2018, a certificate of conversion was filed with the Secretary of State of the State of Delaware and with the Secretary of State of the State of Texas. Holders of partnership interests in Legacy Housing, Ltd. received an initial allocation, on a proportional basis, of 20,000,000 shares of common stock of Legacy Housing Corporation. Following the corporate conversion, Legacy Housing Corporation continues to hold all property and assets of Legacy Housing, Ltd. and all of the debts and obligations of Legacy Housing, Ltd. On the effective date of the corporate conversion, the officers of Legacy Housing, Ltd. became the officers of Legacy Housing Corporation. As a result of the corporate conversion, the Company is now a federal corporate taxpayer. Basis of Presentation The accompanying unaudited interim condensed financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or any other period. The accompanying balance sheet as of December 31, 2020 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (the "Form 10-K"). The accompanying financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K. Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Material estimates that are susceptible to significant change in the near term primarily relate to the determination of accounts receivable, loans to mobile home parks, consumer loans, other notes receivable, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities. Actual results could differ from these estimates. Revenue Recognition Product sales Revenue from product sales is recognized at a point in time when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customer. For financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is separately recorded in the statement of operations. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue. The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized. For the three months ended June 30, 2021 and 2020, sales to an independent third-party and its affiliates accounted for $2,400 or 5.8% and $14,320 or 36.6% of our product sales, respectively. For the six months ended June 30, 2021 and 2020, sales to an independent third-party and its affiliates accounted for $5,065 or 6.8% and $26,306 or 37.4% of our product sales, respectively. For the three months ended June 30, 2021 and 2020, total cost of product sales included $3,007 and $7,849 of costs, mainly relating to subcontracted production for commercial sales and reimbursed dealer expenses for consignment sales and certain other similar costs incurred for retail store and commercial sales subcontracted production for commercial sales and reimbursed dealer expenses for consignment sales and certain other similar costs incurred for retail store and commercial sales Other revenue Disaggregation of Revenue Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Product sales: Direct sales $ 5,493 $ 3,850 $ 8,918 $ 6,076 Commercial sales 13,050 21,059 25,648 36,851 Consignment sales 13,889 9,114 24,489 17,924 Retail store sales 6,183 4,325 9,508 7,536 Other (1) 2,500 831 4,826 1,988 Total product sales 41,115 39,179 73,389 70,375 Consumer and MHP loans interest: Interest - consumer installment notes 4,046 3,820 8,189 7,969 Interest - MHP notes 2,688 2,247 5,183 4,522 Total consumer and MHP loans interest 6,734 6,067 13,372 12,491 Other 740 760 1,767 1,414 Total net revenue $ 48,589 $ 46,006 $ 88,528 $ 84,280 (1) Other product sales revenue from ancillary products and services including parts, freight and other services Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each restricted stock unit (the”RSU”) is calculated based on the closing price of the Company’s common stock on the grant date. The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the award. As a recently formed public entity with a small public float and limited trading of its common shares on the NASDAQ Global Market, it was not practicable for the Company to estimate the volatility of its common shares; therefore, management estimated volatility based on the historical volatilities of a small group of companies considered as close to comparable to the Company as available, all equally weighted, over the expected life of the option. Management concluded that this group is more characteristic of the Company’s business than a broad industry index. The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience. The Company does not expect to pay dividends on its common stock. Accounts Receivable Included in accounts receivable are receivables from direct sales of mobile homes and sales of parts and supplies to customers, consignment fees and interest receivables. Accounts receivables are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible. At June 30, 2021 and December 31, 2020, the allowance for doubtful accounts totaled $287 and $97, respectively. Leased Property The Company offers mobile home park operators the opportunity to lease mobile homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement. In this arrangement title for the mobile homes remains with the Company. The standard lease agreement is typically for 96 months or 120 months. Under the lease arrangement, the lessee (mobile home park operator) uses the mobile homes as personal property to be rented as a residence at the lessee's mobile home park. The lessee makes monthly, periodic lease payments to the Company over the term of the lease. The lessee is responsible for maintaining the homes during the term of the lease. The lessee is also responsible for repairing all damages caused by force majeure events even in cases of total or partial loss of the property. At the end of the lease term or in the event of default, the lessee is required to deliver to the Company the homes with all improvements in good repair and condition in substantially the same condition as existed at the commencement of the lease. The lessee may terminate the lease with 30 days written notice to the Company and pay a lease termination fee of either 10% of the remaining lease payments or six month’s rent, whichever is greater. The lessee has an option to purchase the homes at the end of the lease term for fair market value based on an agreed upon determination of fair market value by both parties using comparable sales, recent appraisal, or NADA official guidance. The lessee must provide the Company with 30 days written notice prior to expiration of the lease of intent to purchase the property for fair market value. The lease also includes a renewal option whereby the lessee has the option to extend the lease for an additional 48 months (the extended term) at the same terms and conditions as the original lease. The lessee must notify the Company of the intent to exercise the renewal extension option not less than six months prior to expiration of the lease term. The leased mobile homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life. Homes returned to the Company upon expiration of the lease or in the event of default will be sold by the Company through its standard sales and distribution channels. Future minimum lease income under all operating leases for each of the next five years at June 30, 2021, are as follows: 2021 $ 900 2022 1,803 2023 1,803 2024 1,803 2025 1,803 Thereafter 5,280 Total $ 13,392 Recent Accounting Pronouncements The Company has elected to use longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s Financial Statements upon adoption. |
CONSUMER LOANS
CONSUMER LOANS | 6 Months Ended |
Jun. 30, 2021 | |
CONSUMER LOANS | |
CONSUMER LOANS | 2. CONSUMER LOANS Consumer loans result from financing transactions entered into with retail consumers of mobile homes sold through independent retailers and company-owned retail locations. Consumer loans receivable generally consist of the sales price and any additional financing fees, less the buyer’s down payment. Interest income is recognized monthly per the terms of the financing agreements. The average contractual interest rate per loan was approximately 13.6% as of June 30, 2021 and 13.8% as of December 31, 2020. Consumer loans receivable have maturities that range from 3 Loan applications go through an underwriting process that considers credit history to evaluate credit risk of the consumer. Interest rates on approved loans are determined based on consumer credit score, payment ability and down payment amount. The Company uses payment history to monitor the credit quality of the consumer loans on an ongoing basis. The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections. The liabilities associated with these escrow collections totaled $8,737 and $7,729 as of June 30, 2021 and December 31, 2020, respectively, and are included in escrow liability in the balance sheets. Allowance for Loan Losses—Consumer Loans Receivable The allowance for loan losses reflects management’s estimate of losses inherent in the consumer loans that may be uncollectible based upon review and evaluation of the consumer loan portfolio as of the date of the balance sheet. An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The Company’s calculation of the general reserve considers the historical loss rate for the last three years, adjusted for the estimated loss discovery period and any qualitative factors both internal and external to the Company. Specific reserves are determined based on probable losses on specific classified impaired loans. The Company’s policy is to place a loan on nonaccrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is normally when either principal or interest is past due and remains unpaid for more than 90 days. Management implemented this policy based on an analysis of historical data, current performance of loans and the likelihood of recovery once principal or interest payments became delinquent and were aged more than 90 days. Payments received on nonaccrual loans are accounted for on a cash basis, first to interest and then to principal, as long as the remaining book balance of the asset is deemed to be collectible. The accrual of interest resumes when the past due principal or interest payments are brought within 90 days of being current. Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impaired loans, or portions thereof, are charged off when deemed uncollectible. A loan is generally deemed impaired if it is more than 90 days past due on principal or interest, is in bankruptcy proceedings, or is in the process of repossession. A specific reserve is created for impaired loans based on fair value of underlying collateral value, less estimated selling costs. The Company uses various factors to determine the value of the underlying collateral for impaired loans. These factors are: (1) the length of time the unit was unsold after construction; (2) the amount of time the house was occupied; (3) the cooperation level of the borrowers, i.e., loans requiring legal action or extensive field collection efforts; (4) units located on private property as opposed to a manufactured home park; (5) the length of time the borrower has lived in the house without making payments; (6) location, size, and market conditions; and (7) the experience and expertise of the particular dealer assisting in collection efforts. Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged off loans; the loan is charged off and the loss is charged to the allowance for loan losses. At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled $724 and $1,395 as of June 30, 2021 and December 31, 2020, respectively, and are included in other assets in the balance sheets. Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following: As of June 30, As of December 31, 2021 2020 Consumer loans receivable $ 119,506 $ 115,639 Loan discount and deferred financing fees, net (2,667) (2,814) Allowance for loan losses (814) (905) Consumer loans receivable, net $ 116,025 $ 111,920 The following table presents a detail of the activity in the allowance for loan losses: Three months ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Allowance for loan losses, beginning of period $ 927 $ 1,020 $ 905 $ 913 Provision for loan losses 23 65 558 280 Charge offs (136) (169) (649) (277) Allowance for loan losses $ 814 $ 916 $ 814 $ 916 The impaired and general reserve for allowance for loan losses consists of the following: As of June 30, As of December 31, 2021 2020 Total consumer loans $ 119,506 $ 115,639 Allowance for loan losses 814 905 Impaired loans individually evaluated for impairment 1,368 1,603 Specific reserve against impaired loans 443 558 Other loans collectively evaluated for allowance 118,138 114,036 General allowance for loan losses 371 347 As of June 30, 2021 and December 31, 2020, the total principal outstanding for consumer loans on nonaccrual status was $1,368 and $1,603, respectively. A detailed aging of consumer loans receivable that are past due as of June 30, 2021 and December 31, 2020 were as follows: As of June 30, As of December 31, 2021 % 2020 % Total consumer loans receivable $ 119,506 100.0 $ 115,639 100.0 Past due consumer loans: 31 - 60 days past due $ 259 0.2 $ 954 0.8 61 - 90 days past due 157 0.1 221 0.2 91 - 120 days past due — — 141 0.1 Greater than 120 days past due 971 0.8 1,261 1.1 Total past due $ 1,387 1.2 $ 2,577 2.2 |
NOTES RECEIVABLE FROM MOBILE HO
NOTES RECEIVABLE FROM MOBILE HOME PARKS (MHP Notes) | 6 Months Ended |
Jun. 30, 2021 | |
NOTES RECEIVABLE FROM MOBILE HOME PARKS ("MHP Notes") | |
NOTES RECEIVABLE FROM MOBILE HOME PARKS ("MHP Notes") | 3. NOTES RECEIVABLE FROM MOBILE HOME PARKS The notes receivable from mobile home parks (“MHP Notes”) relate to mobile homes sold to mobile home parks and financed through notes receivable. The MHP Notes have varying maturity dates and call for monthly principal and interest payments. The interest rate on the MHP Notes can be fixed or variable. Approximately $121 million of the Notes have a fixed interest rate ranging from 6.9% to 9.5%. The remaining MHP Notes have a variable rate typically set at 4.0% above prime with a minimum of 8.0%. The average interest rate per loan was approximately 7.6% and 7.7% as of June 30, 2021 and December 31, 2020, respectively, with maturities that range from 1 to 20 years. The collateral underlying the MHP Notes are individual mobile homes which can be repossessed and resold. The MHP Notes are generally personally guaranteed by the borrowers. The Company had concentrations of MHP Notes with an independent third-party and its affiliates that equaled 49.5% and 52.9% of the principal balance outstanding, all of which was secured by the mobile homes, as of June 30, 2021 and December 31, 2020, respectively. MHP Notes are stated at amounts due from customers, net of allowance for loan losses. The Company determines the allowance by considering several factors including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance reserve composed of specific and general reserve amounts. There were minimal past due balances on the MHP Notes as of June 30, 2021 and December 31, 2020 and no charge offs were recorded for MHP Notes during the three and six months ended June 30, 2021 and 2020, respectively. Allowance for loan loss is considered immaterial and accordingly no loss is recorded against the MHP Notes as of June 30, 2021 and December 31, 2020. |
OTHER NOTES RECEIVABLE
OTHER NOTES RECEIVABLE | 6 Months Ended |
Jun. 30, 2021 | |
OTHER NOTES RECEIVABLE | |
OTHER NOTES RECEIVABLE | 4. OTHER NOTES RECEIVABLE Other notes receivable relate to various notes issued to mobile home park owners and dealers, which are not directly tied to sales of mobile homes. The other notes have varying maturity dates and call for monthly principal and interest payments. The other notes are collateralized by mortgages on real estate, units being financed and used as offices, as well as vehicles, and are typically personally guaranteed by the borrowers. The interest rate on the other notes are fixed and range from 6.25% to 12.00%. The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience. The balance outstanding on the other notes receivable were as follows: As of June 30, As of December 31, 2021 2020 Outstanding principal balance $ 22,784 $ 15,179 Allowance for loan losses (74) (75) Total $ 22,710 $ 15,104 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventories consists of the following: As of June 30, As of December 31, 2021 2020 Raw materials $ 15,728 $ 12,713 Work in progress 467 412 Finished goods 29,079 23,375 Allowance for obsolescence (530) (620) Total $ 44,744 $ 35,880 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: As of June 30, As of December 31, 2021 2020 Land $ 14,715 $ 12,968 Buildings and leasehold improvements 10,975 10,700 Vehicles 1,682 1,664 Machinery and equipment 4,417 4,127 Furniture and fixtures 298 298 Total 32,087 29,757 Less accumulated depreciation (7,665) (7,141) Total property, plant and equipment $ 24,422 $ 22,616 Depreciation expense was $261 with $109 included as a component of cost of product sales for the three months ended June 30, 2021 and $252 with $98 included as a component of cost of product sales for the three months ended June 30, 2020. Depreciation expense was $524 with $214 included as a component of cost of product sales for the six months ended June 30, 2021 and $501 with $203 included as a component of cost of product sales for the six months ended June 30, 2020. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
OTHER ASSETS | |
OTHER ASSETS | 7. OTHER ASSETS Other assets consists of the following: As of June 30, As of December 31, 2021 2020 Leased property, net of accumulated depreciation $ 8,548 $ 7,218 Prepaid rent 261 274 Repossessed homes 724 1,395 Total $ 9,533 $ 8,887 Depreciation expense for the leased property was $132 and $38 for the three months ended June 30, 2021 and 2020, respectively, and $230 and $71 for the six months ended June 30, 2021 and 2020, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
ACCRUED LIABILITIES. | |
ACCRUED LIABILITIES | 8. ACCRUED LIABILITIES Accrued liabilities consists of the following: As of June 30, As of December 31, 2021 2020 Warranty liability $ 2,507 $ 2,594 Litigation reserve 562 899 Federal and state income taxes payable 4,088 5,603 Accrued expenses & other accrued liabilities 7,544 6,394 Total $ 14,701 $ 15,490 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
DEBT | |
DEBT | 9. DEBT Lines of Credit Revolver 1 At December 31, 2019, the Company had a revolving line of credit (“Revolver 1”) with Capital One, N.A. with a maximum credit limit of $45,000 and a maturity date of May 11, 2020. On March 30, 2020, the Company entered into an agreement with Capital One, N.A. to replace Revolver 1 with a new revolving line of credit (“New Revolver”). The New Revolver has a maximum credit limit of $70,000 and a maturity date of March 30, 2024. For the period January 1, 2020 through March 30, 2020, Revolver 1 accrued interest at one-month LIBOR plus 2.40%. Amounts available under Revolver 1 were subject to a formula based on eligible consumer loans and MHP Notes and were secured by all accounts receivable, consumer loans and MHP Notes. The New Revolver accrues interest at one-month LIBOR plus 2.00%. The interest rate in effect as of June 30, 2021 and December 31, 2020 was 2.09% and 2.15%, respectively. As with Revolver 1, amounts available under the New Revolver are subject to a formula based on eligible consumer loans and MHP Notes and are secured by all accounts receivable, consumer loans and MHP Notes. The New Revolver requires the Company to comply with certain quarterly financial and non-financial covenants. The amount of available credit under the New Revolver was $20,325 and $33,826 as of June 30, 2021 and December 31, 2020, respectively. In connection with the New Revolver, we paid certain arrangement fees and other fees of approximately $300, which were capitalized as deferred debt issuance costs and will be amortized to interest expense over the life of the New Revolver. For the three months ended June 30, 2021 and 2020, interest expense under the Capital One Revolvers was $283 and $226, respectively. For the six months ended June 30, 2021 and 2020, interest expense under the Capital One Revolvers was $509 and $545, respectively. The outstanding balance as of June 30, 2021 and December 31, 2020 was $49,675 and $36,174, respectively. Revolver 2 In April 2016, the Company entered into an agreement with Veritex Community Bank to secure an additional revolving line of credit of $15,000 (“Revolver 2”). On May 12, 2017, the Company entered into an agreement to increase the line of credit to $20,000. On October 15, 2018, Revolver 2 was amended to extend the maturity date from April 4, 2019 to April 4, 2021. Revolver 2 accrues interest at one month LIBOR plus 2.50% and all unpaid principal and interest is due at maturity on April 4, 2021. Revolver 2 is secured by all finished goods inventory excluding repossessed homes. Revolver 2 requires the Company to comply with certain quarterly financial and non-financial covenants. Amounts available under Revolver 2 are subject to a formula based on eligible inventory. The interest rate in effect as of March 31, 2020 was 4.17%. The amount of available credit under Revolver 2 was $12,028 at March 31, 2020. For the three and six months ended June 30, 2020 interest expense was $0 and $17. In April 2020, this note was paid in full and the facility was terminated. PPP Loan On April 10, 2020, the Company entered into a loan with Peoples Bank as the lender in an aggregate principal amount of $6,545,700 (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act. The PPP Loan was evidenced by a promissory note dated April 10, 2020 and had a maturity date of April 10, 2022. The PPP Loan had an interest rate of 1.00% per annum, with the first six months of interest deferred. Principal and interest were payable monthly commencing on November 10, 2020 and could be prepaid by the Company at any time prior to maturity with no prepayment penalties. On May 1, 2020, this loan was paid in full. PILOT Agreement In December 2016, the Company entered into a Payment in Lieu of Taxes (“PILOT”) agreement commonly offered in Georgia by local community development programs to encourage industry development. The net effect of the PILOT agreement is to provide the Company with incentives through the abatement of local, city and county property taxes and to provide financing for improvements to the Company’s Georgia plant (the “Project”). In connection with the PILOT agreement, the Putman County Development Authority provides a credit facility for up to $10,000, which can be drawn upon to fund Project improvements and capital expenditures as defined in the agreement. If funds are drawn, the Company would pay transaction costs and debt service payments. The PILOT agreement requires interest payments of 6.00% per annum on outstanding balances, which are due each December 1st through maturity on December 1, 2021, at which time all unpaid principal and interest are due. The PILOT agreement is collateralized by the assets of the Project. As of June 30, 2021 and December 31, 2020, the Company had not drawn on this credit facility. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Compensation Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights. Stock options may be granted with a contractual life of up to ten years. At June 30, 2021, the Company had 9.7 million shares available for grant under the Compensation Plan. In February 2019, the Company granted 120,000 restricted shares of its common stock to members of senior management. The shares were granted on February 7, 2019 and had a grant date fair value of $1,636. The shares vest at a rate of 14.3% annually, beginning on February 7, 2019, and becoming fully vested on February 7, 2025. During the second quarter of 2020, 42,857 of these restricted shares were forfeited due to the departure of a member of senior managment. In February 2019, the Company granted 2,936 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on February 7, 2019 and had a grant date fair value of $40. The shares became fully vested on December 13, 2019. In August 2019, the Company granted 39,526 restricted shares of its common stock to a member of senior management. The shares were granted on August 2, 2019 and had a grant date fair value of $496. The shares vest at a rate of 20.0% annually, beginning on August 2, 2020, becoming fully vested on August 2, 2024. This grant was canceled during the second quarter of 2020 due to the departure of the member of senior managment. In March 2020, the Company granted 1,903 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on March 27, 2020 and had a grant date fair value of $18. The shares became fully vested on December 13, 2020. In December 2020, the Company granted 2,022 restricted shares of its common stock to the independent directors on the Company’s Board of Directors. The shares were granted on December 2, 2020 and had a grant date fair value of $30. The shares become fully vested on October 4, 2021. The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data): Number of Units Weighted Average Grant date Fair Value Nonvested, January 1, 2021 45 $ 13.68 Granted - $ - Vested (9) $ 13.63 Nonvested, June 30, 2021 36 $ 13.70 As of June 30, 2021, approximately 36,000 RSUs remained unvested. Unrecognized compensation expense related to these RSUs at June 30, 2021 was $431 and is expected to be recognized over 3.54 years. The Company granted 58,694 incentive stock options to a member of senior management. The options were granted on February 7, 2019 at an exercise price of $13.63 per share. The options vest at a rate of 12.5% annually, beginning on February 7, 2019, and becoming fully vested on February 7, 2026. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of The Company granted 34,626 incentive stock options to a member of senior management. The options were granted on August 10, 2020 at an exercise price of $14.44 per share. The options vest at a rate of 20.0% annually, beginning on August 10, 2021, and becoming fully vested on August 10, 2025. All options expire ten years after the date of grant. Weighted-average assumptions used in the Black-Scholes option pricing model for stock options granted were as follows: risk free interest rate of The following is a summary of option activity (in thousands, except per unit data): Number of Units Weighted Weighted Weighted Aggregate Outstanding, January 1, 2021, nonvested 35 $ 14.44 $ 8.67 9.61 Granted — $ — $ — — Exercised — $ — $ — — Outstanding, June 30, 2021, nonvested 35 $ 14.44 $ 8.67 9.11 $ 86 Exercisable, June 30, 2021 — $ — $ — — $ — As of June 30, 2021, approximately 35,000 options remained nonvested. Unrecognized compensation expense related to these options at June 30, 2021 was $247 and is expected to be recognized over 4.12 years. On March 31, 2020, the Company filed a registration statement on Form S-8 to register with the SEC approximately 2.3 million shares of Legacy common stock available for issuance under the 2018 Incentive Compensation Plan. The registration statement became effective upon filing. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The provision for income tax expense for the six months ended June 30, 2021 and 2020 was $4,317 and $5,611, respectively. The effective tax rate for the six months ended June 30, 2021 was 16.8% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction and partially offset by state income taxes. The effective tax rate for the six months ended June 30, 2020 was 22.7% and differs from the federal statutory rate of 21% due to state income taxes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES As of January 1, 2020, the Company instituted a self-insured health benefits plan with a stop-loss policy, which provides medical benefits to employees electing coverage under the plan. The Company estimates and records costs for incurred but not reported medical claims and claim development. This reserve is based on historical experience and other assumptions, some of which are subjective. The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions. At June 30, 2021 and December 31, 2020, the Company accrued a $192 and $110, respectively, liability for incurred but not reported claims. The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The Company’s obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The maximum amount for which the Company was liable under such agreements totalled $3,393 and $2,967 at June 30, 2021 and December 31, 2020, respectively, without reduction for the resale value of the homes. The Company considers its obligations on current contracts to be insignificant and accordingly have not recorded any reserve for repurchase commitment as of June 30, 2021 or December 31, 2020. Leases. Future minimum lease commitments under all non-cancelable operating leases for each of the next five years at June 30, 2021, are as follows: 2021 $ 246 2022 434 2023 422 2024 314 2025 278 Thereafter 530 Total $ 2,224 Legal Matters The Company is party to certain legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability and personal injury. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company’s financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting periods. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 13. DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Derivative Financial Instruments On February 2, 2012, the Company entered into a master interest rate swap agreement. The Company elected not to designate the interest rate swap agreements as cash flow hedges and, therefore, gains or losses on the agreements as well as the other offsetting gains or losses on the hedged items attributable to the hedged risk are recognized in current earnings. Accounting Standards Codification (“ASC”) 815-10, Derivatives and Hedging The Company entered into interest rate swap agreement with Capital One Bank on June 12, 2017 to fix the variable rate portion for Fair Value Measurements The Company accounts for its investments and derivative instruments in accordance with ASC 820-10, Fair Value Measurement, Fair Value Measurement Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has used derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The Company is not a party to any interest rate swaps as of June 30, 2021. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, consumer loans, MHP Notes, other note recievables, accounts payable, lines of credit, notes payable, and dealer portion of consumer loans. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The lines of credit, notes payable, part of the MHP Notes and part of the other note recievables have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other note recievables with fixed rates based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $117,000 compared to the book value of $116,025 as of June 30, 2021, and a fair value of approximately $115,000 compared to the book value of $111,742 as of December 31, 2020. The Company determined that the fair value of the fixed rate MHP Notes was approximately $119,000 compared to the book value of $120,598 as of June 30, 2021, and a fair value of approximately $108,000 compared to the book value of $109,806 as of December 31, 2020. The Company determined that the fair value of the other notes was approximately $17,600 compared to the book value of $17,731 as of June 30, 2021, and a fair value of approximately $15,000 compared to the book value of $15,104 as of December 31, 2020. This is a Level III valuation technique. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE Basic earnings per common share (“EPS”) is computed based on the weighted-average number of common shares outstanding during each reporting period. Diluted EPS is based on the weighted-average number of common shares outstanding plus the number of additional shares that would have been outstanding had the dilutive common shares been issued. The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS. Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income (in 000's) $ 12,428 $ 10,040 $ 21,451 $ 19,063 Denominator: Basic weighted-average common shares outstanding 24,202,631 24,201,220 24,200,879 24,260,274 Effect of dilutive securities: Restricted stock grants 11,819 603 8,951 664 Stock options 20,463 — 19,435 — Diluted weighted-average common shares outstanding 24,234,913 24,201,823 24,229,265 24,260,938 Earnings per share attributable to Legacy Housing Corporation Basic $ 0.51 $ 0.41 $ 0.89 $ 0.79 Diluted $ 0.51 $ 0.41 $ 0.89 $ 0.79 The diluted earnings per share calculation excludes 79,459 and 90,783 potential shares for the three and six months ended June 30, 2020, respectively because the effect of including theses potential shares would be antidilutive. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS Bell Mobile Homes, a retailer owned by one of the Company’s significant owners, purchases manufactured homes from the Company. Accounts receivable balances due from Bell Mobile Homes were $27 and $1 as of June 30, 2021 and December 31, 2020, respectively. Accounts payable balances due to Bell Mobile Homes for maintenance and related services were $76 and $61 as of June 30, 2021 and December 31, 2020, respectively. Home sales to Bell Mobile Homes were $695 and $533 for the three months ended June 30, 2021 and 2020, respectively and $1,393 and $1,416 for the six months ended June 30, 2021 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS In connection with the preparation of these financial statements, an evaluation of subsequent events was performed through the date of filing and there were no other events that have occurred that would require adjustments to the financial statements. |
NATURE OF OPERATIONS (Policies)
NATURE OF OPERATIONS (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
NATURE OF OPERATIONS | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020, respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03. In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or any other period. The accompanying balance sheet as of December 31, 2020 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (the "Form 10-K"). The accompanying financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Material estimates that are susceptible to significant change in the near term primarily relate to the determination of accounts receivable, loans to mobile home parks, consumer loans, other notes receivable, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition Product sales Revenue from product sales is recognized at a point in time when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customer. For financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is separately recorded in the statement of operations. Revenue is measured as the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue. The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized. For the three months ended June 30, 2021 and 2020, sales to an independent third-party and its affiliates accounted for $2,400 or 5.8% and $14,320 or 36.6% of our product sales, respectively. For the six months ended June 30, 2021 and 2020, sales to an independent third-party and its affiliates accounted for $5,065 or 6.8% and $26,306 or 37.4% of our product sales, respectively. For the three months ended June 30, 2021 and 2020, total cost of product sales included $3,007 and $7,849 of costs, mainly relating to subcontracted production for commercial sales and reimbursed dealer expenses for consignment sales and certain other similar costs incurred for retail store and commercial sales subcontracted production for commercial sales and reimbursed dealer expenses for consignment sales and certain other similar costs incurred for retail store and commercial sales Other revenue Disaggregation of Revenue Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Product sales: Direct sales $ 5,493 $ 3,850 $ 8,918 $ 6,076 Commercial sales 13,050 21,059 25,648 36,851 Consignment sales 13,889 9,114 24,489 17,924 Retail store sales 6,183 4,325 9,508 7,536 Other (1) 2,500 831 4,826 1,988 Total product sales 41,115 39,179 73,389 70,375 Consumer and MHP loans interest: Interest - consumer installment notes 4,046 3,820 8,189 7,969 Interest - MHP notes 2,688 2,247 5,183 4,522 Total consumer and MHP loans interest 6,734 6,067 13,372 12,491 Other 740 760 1,767 1,414 Total net revenue $ 48,589 $ 46,006 $ 88,528 $ 84,280 (1) Other product sales revenue from ancillary products and services including parts, freight and other services |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model. The fair value of each restricted stock unit (the”RSU”) is calculated based on the closing price of the Company’s common stock on the grant date. The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the award. As a recently formed public entity with a small public float and limited trading of its common shares on the NASDAQ Global Market, it was not practicable for the Company to estimate the volatility of its common shares; therefore, management estimated volatility based on the historical volatilities of a small group of companies considered as close to comparable to the Company as available, all equally weighted, over the expected life of the option. Management concluded that this group is more characteristic of the Company’s business than a broad industry index. The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience. The Company does not expect to pay dividends on its common stock. |
Accounts Receivable | Accounts Receivable Included in accounts receivable are receivables from direct sales of mobile homes and sales of parts and supplies to customers, consignment fees and interest receivables. Accounts receivables are generally due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines the allowance by considering several factors, including the aging of the past due balance, the customer’s payment history, and the Company’s previous loss history. The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible. At June 30, 2021 and December 31, 2020, the allowance for doubtful accounts totaled $287 and $97, respectively. |
Leased Property | Leased Property The Company offers mobile home park operators the opportunity to lease mobile homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement. In this arrangement title for the mobile homes remains with the Company. The standard lease agreement is typically for 96 months or 120 months. Under the lease arrangement, the lessee (mobile home park operator) uses the mobile homes as personal property to be rented as a residence at the lessee's mobile home park. The lessee makes monthly, periodic lease payments to the Company over the term of the lease. The lessee is responsible for maintaining the homes during the term of the lease. The lessee is also responsible for repairing all damages caused by force majeure events even in cases of total or partial loss of the property. At the end of the lease term or in the event of default, the lessee is required to deliver to the Company the homes with all improvements in good repair and condition in substantially the same condition as existed at the commencement of the lease. The lessee may terminate the lease with 30 days written notice to the Company and pay a lease termination fee of either 10% of the remaining lease payments or six month’s rent, whichever is greater. The lessee has an option to purchase the homes at the end of the lease term for fair market value based on an agreed upon determination of fair market value by both parties using comparable sales, recent appraisal, or NADA official guidance. The lessee must provide the Company with 30 days written notice prior to expiration of the lease of intent to purchase the property for fair market value. The lease also includes a renewal option whereby the lessee has the option to extend the lease for an additional 48 months (the extended term) at the same terms and conditions as the original lease. The lessee must notify the Company of the intent to exercise the renewal extension option not less than six months prior to expiration of the lease term. The leased mobile homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life. Homes returned to the Company upon expiration of the lease or in the event of default will be sold by the Company through its standard sales and distribution channels. Future minimum lease income under all operating leases for each of the next five years at June 30, 2021, are as follows: 2021 $ 900 2022 1,803 2023 1,803 2024 1,803 2025 1,803 Thereafter 5,280 Total $ 13,392 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has elected to use longer phase-in periods for the adoption of new or revised financial accounting standards under the JOBS Act as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s Financial Statements upon adoption. |
Fair Value Measurements | Fair Value Measurements The Company accounts for its investments and derivative instruments in accordance with ASC 820-10, Fair Value Measurement, Fair Value Measurement Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include: (1) Quoted prices for similar assets or liabilities in active markets; (2) Quoted prices for identical or similar assets or liabilities in inactive markets; (3) Inputs other than quoted prices that are observable; (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability. Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has used derivatives to manage risks related to interest rate movements. The Company does not enter into derivative contracts for speculative purposes. Interest rate swap contracts are recognized as assets or liabilities on the balance sheets and are measured at fair value. The fair value was calculated and provided by the lender, a Level II valuation technique. Management reviewed the fair values for the instruments as provided by the lender and determined the related asset and liability to be an accurate estimate of future gains and losses to the Company. The Company is not a party to any interest rate swaps as of June 30, 2021. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, consumer loans, MHP Notes, other note recievables, accounts payable, lines of credit, notes payable, and dealer portion of consumer loans. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. This is considered a Level I valuation technique. The lines of credit, notes payable, part of the MHP Notes and part of the other note recievables have variable interest rates that reflect market rates and their fair value approximates their carrying value. This is considered a Level II valuation technique. The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other note recievables with fixed rates based on the discounted value of the remaining principal and interest cash flows. The Company determined that the fair value of the consumer loan portfolio was approximately $117,000 compared to the book value of $116,025 as of June 30, 2021, and a fair value of approximately $115,000 compared to the book value of $111,742 as of December 31, 2020. The Company determined that the fair value of the fixed rate MHP Notes was approximately $119,000 compared to the book value of $120,598 as of June 30, 2021, and a fair value of approximately $108,000 compared to the book value of $109,806 as of December 31, 2020. The Company determined that the fair value of the other notes was approximately $17,600 compared to the book value of $17,731 as of June 30, 2021, and a fair value of approximately $15,000 compared to the book value of $15,104 as of December 31, 2020. This is a Level III valuation technique. |
NATURE OF OPERATIONS (Tables)
NATURE OF OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
NATURE OF OPERATIONS | |
Schedule of disaggregation of revenue | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Product sales: Direct sales $ 5,493 $ 3,850 $ 8,918 $ 6,076 Commercial sales 13,050 21,059 25,648 36,851 Consignment sales 13,889 9,114 24,489 17,924 Retail store sales 6,183 4,325 9,508 7,536 Other (1) 2,500 831 4,826 1,988 Total product sales 41,115 39,179 73,389 70,375 Consumer and MHP loans interest: Interest - consumer installment notes 4,046 3,820 8,189 7,969 Interest - MHP notes 2,688 2,247 5,183 4,522 Total consumer and MHP loans interest 6,734 6,067 13,372 12,491 Other 740 760 1,767 1,414 Total net revenue $ 48,589 $ 46,006 $ 88,528 $ 84,280 (1) Other product sales revenue from ancillary products and services including parts, freight and other services |
Schedule of future minimum lease income | 2021 $ 900 2022 1,803 2023 1,803 2024 1,803 2025 1,803 Thereafter 5,280 Total $ 13,392 |
CONSUMER LOANS (Tables)
CONSUMER LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
CONSUMER LOANS | |
Schedule of consumer loans, net of allowance for loan losses and deferred financing fees | As of June 30, As of December 31, 2021 2020 Consumer loans receivable $ 119,506 $ 115,639 Loan discount and deferred financing fees, net (2,667) (2,814) Allowance for loan losses (814) (905) Consumer loans receivable, net $ 116,025 $ 111,920 |
Schedule of allowance for loan losses | Three months ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Allowance for loan losses, beginning of period $ 927 $ 1,020 $ 905 $ 913 Provision for loan losses 23 65 558 280 Charge offs (136) (169) (649) (277) Allowance for loan losses $ 814 $ 916 $ 814 $ 916 |
Schedule of impaired and general reserve for allowance for loan losses | As of June 30, As of December 31, 2021 2020 Total consumer loans $ 119,506 $ 115,639 Allowance for loan losses 814 905 Impaired loans individually evaluated for impairment 1,368 1,603 Specific reserve against impaired loans 443 558 Other loans collectively evaluated for allowance 118,138 114,036 General allowance for loan losses 371 347 |
Schedule of consumer loans receivable that are past due | As of June 30, As of December 31, 2021 % 2020 % Total consumer loans receivable $ 119,506 100.0 $ 115,639 100.0 Past due consumer loans: 31 - 60 days past due $ 259 0.2 $ 954 0.8 61 - 90 days past due 157 0.1 221 0.2 91 - 120 days past due — — 141 0.1 Greater than 120 days past due 971 0.8 1,261 1.1 Total past due $ 1,387 1.2 $ 2,577 2.2 |
OTHER NOTES RECEIVABLE (Tables)
OTHER NOTES RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER NOTES RECEIVABLE | |
Schedule of balance outstanding on the other notes receivable | As of June 30, As of December 31, 2021 2020 Outstanding principal balance $ 22,784 $ 15,179 Allowance for loan losses (74) (75) Total $ 22,710 $ 15,104 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
Schedule of inventory | As of June 30, As of December 31, 2021 2020 Raw materials $ 15,728 $ 12,713 Work in progress 467 412 Finished goods 29,079 23,375 Allowance for obsolescence (530) (620) Total $ 44,744 $ 35,880 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | As of June 30, As of December 31, 2021 2020 Land $ 14,715 $ 12,968 Buildings and leasehold improvements 10,975 10,700 Vehicles 1,682 1,664 Machinery and equipment 4,417 4,127 Furniture and fixtures 298 298 Total 32,087 29,757 Less accumulated depreciation (7,665) (7,141) Total property, plant and equipment $ 24,422 $ 22,616 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER ASSETS | |
Schedule of Other Assets | As of June 30, As of December 31, 2021 2020 Leased property, net of accumulated depreciation $ 8,548 $ 7,218 Prepaid rent 261 274 Repossessed homes 724 1,395 Total $ 9,533 $ 8,887 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCRUED LIABILITIES. | |
Schedule of accrued liabilities | As of June 30, As of December 31, 2021 2020 Warranty liability $ 2,507 $ 2,594 Litigation reserve 562 899 Federal and state income taxes payable 4,088 5,603 Accrued expenses & other accrued liabilities 7,544 6,394 Total $ 14,701 $ 15,490 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SHARE-BASED COMPENSATION | |
Schedule of restricted stock units activity | The following is a summary of restricted stock units (the “RSU”) activity (in thousands, except per unit data): Number of Units Weighted Average Grant date Fair Value Nonvested, January 1, 2021 45 $ 13.68 Granted - $ - Vested (9) $ 13.63 Nonvested, June 30, 2021 36 $ 13.70 |
Schedule of stock option activity | The following is a summary of option activity (in thousands, except per unit data): Number of Units Weighted Weighted Weighted Aggregate Outstanding, January 1, 2021, nonvested 35 $ 14.44 $ 8.67 9.61 Granted — $ — $ — — Exercised — $ — $ — — Outstanding, June 30, 2021, nonvested 35 $ 14.44 $ 8.67 9.11 $ 86 Exercisable, June 30, 2021 — $ — $ — — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease commitments | Future minimum lease commitments under all non-cancelable operating leases for each of the next five years at June 30, 2021, are as follows: 2021 $ 246 2022 434 2023 422 2024 314 2025 278 Thereafter 530 Total $ 2,224 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
Summary of reconciliation of the numerators and denominators used in the computations of both basic and diluted EPS | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income (in 000's) $ 12,428 $ 10,040 $ 21,451 $ 19,063 Denominator: Basic weighted-average common shares outstanding 24,202,631 24,201,220 24,200,879 24,260,274 Effect of dilutive securities: Restricted stock grants 11,819 603 8,951 664 Stock options 20,463 — 19,435 — Diluted weighted-average common shares outstanding 24,234,913 24,201,823 24,229,265 24,260,938 Earnings per share attributable to Legacy Housing Corporation Basic $ 0.51 $ 0.41 $ 0.89 $ 0.79 Diluted $ 0.51 $ 0.41 $ 0.89 $ 0.79 |
NATURE OF OPERATIONS - IPO and
NATURE OF OPERATIONS - IPO and Corporate Conversion (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 17, 2019 | Jan. 01, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 |
Nature of operations | |||||
Shares issued upon incorporation (in shares) | 20,000,000 | ||||
Shares repurchased | 300,000 | 145,065 | |||
Share repurchase price (in dollars per share) | $ 10.20 | $ 9.77 | |||
Value of shares authorized for repurchase | $ 10,000 | ||||
IPO | |||||
Nature of operations | |||||
Shares issued from sale of common stock | 600,000 | 4,000,000 | |||
Share price (in dollars per share) | $ 12 | $ 12 | |||
Offering costs | $ 505 | $ 4,504 | |||
Proceeds from IPO net of underwriting discounts and offering expenses | $ 6,695 | $ 43,492 |
NATURE OF OPERATIONS - Revenue
NATURE OF OPERATIONS - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue | ||||
Incremental costs of obtaining a contract | true | |||
Product sales | $ 41,115 | $ 39,179 | $ 73,389 | $ 70,375 |
Dealer commission, reimbursed dealer expenses and other similar costs | 3,007 | 7,849 | 5,189 | 12,756 |
Revenue from contract with customer product and service benchmark | Customer concentration risk | Independent third party and affiliates | ||||
Disaggregation of Revenue | ||||
Product sales | $ 2,400 | $ 14,320 | $ 5,065 | $ 26,306 |
Concentration risk percentage | 5.80% | 36.60% | 6.80% | 37.40% |
Minimum | ||||
Disaggregation of Revenue | ||||
Term of lease agreement | 96 months | 96 months | ||
Maximum | ||||
Disaggregation of Revenue | ||||
Term of lease agreement | 120 months | 120 months |
NATURE OF OPERATIONS - Disaggre
NATURE OF OPERATIONS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue | ||||
Product sales | $ 41,115 | $ 39,179 | $ 73,389 | $ 70,375 |
Consumer and MHP loans interest: | ||||
Interest - consumer installments notes | 4,046 | 3,820 | 8,189 | 7,969 |
Interest - MHP notes | 2,688 | 2,247 | 5,183 | 4,522 |
Total consumer and MHP loans interest | 6,734 | 6,067 | 13,372 | 12,491 |
Other | 740 | 760 | 1,767 | 1,414 |
Total net revenue | 48,589 | 46,006 | 88,528 | 84,280 |
Direct sales | ||||
Disaggregation of Revenue | ||||
Product sales | 5,493 | 3,850 | 8,918 | 6,076 |
Commercial sales | ||||
Disaggregation of Revenue | ||||
Product sales | 13,050 | 21,059 | 25,648 | 36,851 |
Consignment sales | ||||
Disaggregation of Revenue | ||||
Product sales | 13,889 | 9,114 | 24,489 | 17,924 |
Retail store sales | ||||
Disaggregation of Revenue | ||||
Product sales | 6,183 | 4,325 | 9,508 | 7,536 |
Other | ||||
Disaggregation of Revenue | ||||
Product sales | $ 2,500 | $ 831 | $ 4,826 | $ 1,988 |
NATURE OF OPERATIONS - Accounts
NATURE OF OPERATIONS - Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts Receivable | ||
Credit period | 30 days | |
Allowance for doubtful accounts | $ 287 | $ 97 |
NATURE OF OPERATIONS - Leased P
NATURE OF OPERATIONS - Leased Property (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Lessor, Description Of Leases [Line Items] | |
Notice period for lease termination | 30 days |
Termination fees as a percentage of remaining lease payments | 10.00% |
Number of month's rent to be paid | 6 months |
Notice period for purchase of property | 30 days |
Extended term of lease | 48 months |
Notice period for exercise of renewal extension | 6 months |
Useful life | 15 years |
Minimum | |
Lessor, Description Of Leases [Line Items] | |
Term of lease agreement | 96 months |
Maximum | |
Lessor, Description Of Leases [Line Items] | |
Term of lease agreement | 120 months |
NATURE OF OPERATIONS - Future m
NATURE OF OPERATIONS - Future minimum lease income (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2021 | $ 900 |
2022 | 1,803 |
2023 | 1,803 |
2024 | 1,803 |
2025 | 1,803 |
Thereafter | 5,280 |
Total | $ 13,392 |
CONSUMER LOANS - Narrative (Det
CONSUMER LOANS - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Average contractual interest rate | 13.60% | 13.80% |
Escrow liability | $ 8,737 | $ 7,729 |
Number of components comprising the allowance for loan losses | item | 2 | |
Number of years historical loss rate considers for calculation | 3 years | |
Repossessed assets | $ 724 | $ 1,395 |
Minimum | ||
Consumer loans receivable term | 3 years | |
Maximum | ||
Consumer loans receivable term | 30 years |
CONSUMER LOANS - Consumer loans
CONSUMER LOANS - Consumer loans receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
CONSUMER LOANS | ||||||
Consumer loans receivable | $ 119,506 | $ 115,639 | ||||
Loan discount and deferred financing fees, net | (2,667) | (2,814) | ||||
Allowance for loan losses | (814) | $ (927) | (905) | $ (916) | $ (1,020) | $ (913) |
Consumer loans receivable, net | $ 116,025 | $ 111,920 |
CONSUMER LOANS - Allowance for
CONSUMER LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSUMER LOANS | ||||
Allowance for loan losses, beginning of period | $ 927 | $ 1,020 | $ 905 | $ 913 |
Provision for loan losses | 23 | 65 | 558 | 280 |
Charge offs | (136) | (169) | (649) | (277) |
Allowance for loan losses, end of period | $ 814 | $ 916 | $ 814 | $ 916 |
CONSUMER LOANS - Impaired and g
CONSUMER LOANS - Impaired and general reserve for allowance for loan losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
CONSUMER LOANS | ||||||
Total consumer loans receivable | $ 119,506 | $ 115,639 | ||||
Allowance for loan losses | 814 | $ 927 | 905 | $ 916 | $ 1,020 | $ 913 |
Impaired loans individually evaluated for impairment | 1,368 | 1,603 | ||||
Specific reserve against impaired loans | 443 | 558 | ||||
Other loans collectively evaluated for allowance | 118,138 | 114,036 | ||||
General allowance for loan losses | 371 | 347 | ||||
Principal outstanding on consumer loans | $ 1,368 | $ 1,603 |
CONSUMER LOANS - Aging of consu
CONSUMER LOANS - Aging of consumer loans receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Past due consumer loans: | ||
Total consumer loans receivable | $ 119,506 | $ 115,639 |
Total consumer loans receivable (as a percent) | 100.00% | 100.00% |
Financial Asset, Past Due [Member] | ||
Past due consumer loans: | ||
Consumer loans receivable past due | $ 1,387 | $ 2,577 |
Consumer loans receivable past due (Percent) | 1.20% | 2.20% |
31 - 60 days past due | ||
Past due consumer loans: | ||
Consumer loans receivable past due | $ 259 | $ 954 |
Consumer loans receivable past due (Percent) | 0.20% | 0.80% |
61 - 90 days past due | ||
Past due consumer loans: | ||
Consumer loans receivable past due | $ 157 | $ 221 |
Consumer loans receivable past due (Percent) | 0.10% | 0.20% |
91 - 120 days past due | ||
Past due consumer loans: | ||
Consumer loans receivable past due | $ 141 | |
Consumer loans receivable past due (Percent) | 0.10% | |
Greater than 120 days past due | ||
Past due consumer loans: | ||
Consumer loans receivable past due | $ 971 | $ 1,261 |
Consumer loans receivable past due (Percent) | 0.80% | 1.10% |
NOTES RECEIVABLE FROM MOBILE _2
NOTES RECEIVABLE FROM MOBILE HOME PARKS (MHP Notes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Notes Receivable from Mobile Home Parks | |||||
Notes Receivable | |||||
Note receivable with fixed rate of interest | $ 121,000 | $ 121,000 | |||
Average interest rate per loan (as a percent) | 7.60% | 7.70% | |||
Charge offs | 0 | $ 0 | $ 0 | $ 0 | |
Allowance for loan losses | $ 0 | $ 0 | $ 0 | ||
Accounts receivable | Credit concentration risk | Independent third party and affiliates | |||||
Notes Receivable | |||||
Concentration risk percentage | 49.50% | 52.90% | |||
Minimum | Notes Receivable from Mobile Home Parks | |||||
Notes Receivable | |||||
Fixed rate of interest (as a percent) | 6.90% | ||||
Variable rate of interest (as a percent) | 8.00% | ||||
Term of notes receivables | 1 year | ||||
Minimum | Prime Rate | Notes Receivable from Mobile Home Parks | |||||
Notes Receivable | |||||
Interest rate spread (as a percent) | 4.00% | 4.00% | |||
Maximum | Notes Receivable from Mobile Home Parks | |||||
Notes Receivable | |||||
Fixed rate of interest (as a percent) | 9.50% | ||||
Term of notes receivables | 20 years |
OTHER NOTES RECEIVABLE (Details
OTHER NOTES RECEIVABLE (Details) - Other Note Receivable - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Receivable | ||
Outstanding principal balance | $ 22,784 | $ 15,179 |
Allowance for loan losses | (74) | (75) |
Total | $ 22,710 | $ 15,104 |
Minimum | ||
Notes Receivable | ||
Interest rate on the other notes | 6.25% | |
Maximum | ||
Notes Receivable | ||
Interest rate on the other notes | 12.00% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
INVENTORIES | ||
Raw materials | $ 15,728 | $ 12,713 |
Work in progress | 467 | 412 |
Finished goods | 29,079 | 23,375 |
Allowance for obsolescence | (530) | (620) |
Total | $ 44,744 | $ 35,880 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | $ 32,087 | $ 32,087 | $ 29,757 | ||
Less accumulated depreciation | (7,665) | (7,665) | (7,141) | ||
Total property, plant and equipment | 24,422 | 24,422 | 22,616 | ||
Depreciation expense | 261 | $ 252 | 524 | $ 501 | |
Cost of product sales | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Depreciation expense | 109 | $ 98 | 214 | $ 203 | |
Land | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 14,715 | 14,715 | 12,968 | ||
Buildings and leasehold improvements | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 10,975 | 10,975 | 10,700 | ||
Vehicles | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 1,682 | 1,682 | 1,664 | ||
Machinery and equipment | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | 4,417 | 4,417 | 4,127 | ||
Furniture and fixtures | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||
Total | $ 298 | $ 298 | $ 298 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
OTHER ASSETS | |||||
Leased property, net of accumulated depreciation | $ 8,548 | $ 8,548 | $ 7,218 | ||
Prepaid rent | 261 | 261 | 274 | ||
Repossessed homes | 724 | 724 | 1,395 | ||
Total | 9,533 | 9,533 | $ 8,887 | ||
Depreciation expense on leased property | $ 132 | $ 38 | $ 230 | $ 71 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ACCRUED LIABILITIES. | ||
Warranty liability | $ 2,507 | $ 2,594 |
Litigation reserve | 562 | 899 |
Federal and state income taxes payable | 4,088 | 5,603 |
Accrued expenses & other accrued liabilities | 7,544 | 6,394 |
Total | $ 14,701 | $ 14,860 |
DEBT - Lines of Credit (Details
DEBT - Lines of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | May 12, 2017 | Apr. 30, 2016 | |
Revolver 1 | ||||||||||
Lines of Credit | ||||||||||
Maximum borrowing capacity | $ 70,000 | $ 45,000 | ||||||||
Effective interest rate | 2.09% | 2.09% | 2.15% | |||||||
Amount of available credit | $ 20,325 | $ 20,325 | $ 33,826 | |||||||
Interest expense | 283 | $ 226 | 509 | $ 545 | ||||||
Outstanding balance | $ 49,675 | $ 49,675 | $ 36,174 | |||||||
Deferred debt issuance costs | $ 300 | |||||||||
Revolver 1 | London Interbank Offered Rate (LIBOR) | ||||||||||
Lines of Credit | ||||||||||
Spread rate | 2.40% | 2.00% | ||||||||
Revolver 2 | ||||||||||
Lines of Credit | ||||||||||
Maximum borrowing capacity | $ 20,000 | $ 15,000 | ||||||||
Effective interest rate | 4.17% | |||||||||
Amount of available credit | $ 12,028 | |||||||||
Interest expense | $ 0 | $ 17 | ||||||||
Revolver 2 | London Interbank Offered Rate (LIBOR) | ||||||||||
Lines of Credit | ||||||||||
Spread rate | 2.50% |
DEBT - PPP Loans (Details)
DEBT - PPP Loans (Details) - USD ($) | Apr. 10, 2020 | Dec. 31, 2016 |
Paycheck Protection Program | ||
Notes Payable | ||
Face amount | $ 6,545,700 | |
Interest rate | 1.00% | |
Period of deferred interest | 6 months | |
Prepayment penalties | $ 0 | |
PILOT Agreement | ||
Notes Payable | ||
Maximum borrowing capacity | $ 10,000,000 | |
Interest rate | 6.00% |
SHARE-BASED COMPENSATION - Plan
SHARE-BASED COMPENSATION - Plan (Details) - USD ($) $ in Thousands | Dec. 02, 2020 | Aug. 10, 2020 | Mar. 27, 2020 | Aug. 02, 2019 | Feb. 07, 2019 | Jun. 30, 2020 | Jun. 30, 2021 |
SHARE-BASED COMPENSATION | |||||||
Number of shares may be issued to employees, directors, consultants and nonemployee service providers in the form of stock options, stock and stock appreciation rights | 10,000,000 | ||||||
Number of shares available for grant | 9,700,000 | ||||||
Stock options | |||||||
SHARE-BASED COMPENSATION | |||||||
Contractual life | 10 years | ||||||
Stock options | Senior management | |||||||
SHARE-BASED COMPENSATION | |||||||
Contractual life | 10 years | 10 years | |||||
Vesting percentage | 20.00% | 12.50% | |||||
Restricted shares | Senior management | |||||||
SHARE-BASED COMPENSATION | |||||||
Restricted shares granted (in shares) | 39,526 | 120,000 | |||||
Grant date fair value | $ 496 | $ 1,636 | |||||
Vesting percentage | 20.00% | 14.30% | |||||
Restricted shares forfeited (in shares) | 42,857 | ||||||
Restricted shares | Independent directors | |||||||
SHARE-BASED COMPENSATION | |||||||
Restricted shares granted (in shares) | 2,022 | 1,903 | 2,936 | ||||
Grant date fair value | $ 30 | $ 18 | $ 40 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted stock units (Details) - Restricted stock units $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Number of units | |
Nonvested at the beginning | shares | 45,000 |
Vested | shares | 9,000 |
Nonvested at the end | shares | 36,000 |
Weighted average grant date fair value | |
Nonvested at the beginning (in dollars per share) | $ / shares | $ 13.68 |
Vested (in dollars per share) | $ / shares | 13.63 |
Nonvested at the end (in dollars per share) | $ / shares | $ 13.70 |
Unrecognized compensation expense | $ | $ 431 |
Unrecognized compensation expense, recognition period | 3 years 6 months 14 days |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock options (Details) - Stock options - $ / shares | Aug. 10, 2020 | Feb. 07, 2019 | Jun. 30, 2021 |
Fair value assumptions for options granted | |||
Expiration period | 10 years | ||
Senior management | |||
SHARE-BASED COMPENSATION | |||
Stock options granted (in shares) | 34,626 | 58,694 | |
Exercise price (in dollar per share) | $ 14.44 | $ 13.63 | |
Vesting percentage | 20.00% | 12.50% | |
Fair value assumptions for options granted | |||
Risk free interest rate | 0.24% | 2.41% | |
Dividend yield | 0.00% | 0.00% | |
Expected volatility | 75.00% | 65.00% | |
Expiration period | 10 years | 10 years | |
Expected life | 6 years 6 months | 7 years 10 months 24 days |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Stock options activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
2018 Incentive Compensation Plan | |||
Weighted Average Remaining Contractual Life and Intrinsic Value | |||
Common stock available for issuance | 2,300,000 | ||
Stock options | |||
Number of units | |||
Oustanding, nonvested | 35,000 | ||
Oustanding, nonvested | 35,000 | 35,000 | |
Weighted Average Exercise Price | |||
Outstanding at the beginning (in dollars per share) | $ 14.44 | ||
Outstanding at the end (in dollars per share) | 14.44 | $ 14.44 | |
Weighted Average Fair Value | |||
Outstanding at the beginning (in dollars per share) | 8.67 | ||
Outstanding at the end (in dollars per share) | $ 8.67 | $ 8.67 | |
Weighted Average Remaining Contractual Life and Intrinsic Value | |||
Outstanding (in years) | 9 years 1 month 9 days | 9 years 7 months 9 days | |
Outstanding at the end (in dollars) | $ 86 | ||
Non-vested shares | 35,000 | 35,000 | |
Unrecognized compensation expense | $ 247 | ||
Unrecognized compensation expense, recognition period | 4 years 1 month 13 days |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INCOME TAXES | ||||
Tax expense | $ 2,454 | $ 3,015 | $ 4,317 | $ 5,611 |
Effective tax rate (as a percent) | 16.80% | 22.70% | ||
Federal statutory rate | 21.00% | 21.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Commitment | ||
Self-insured liability | $ 192 | $ 110 |
Repurchase agreements | Maximum | ||
Commitment | ||
Repurchase commitment | $ 3,393 | $ 2,967 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Leased Assets [Line Items] | ||||
Operating lease, term of contract (in years) | 10 years | 10 years | ||
Rent expense | $ 146 | $ 144 | $ 402 | $ 308 |
Sublease rental income | 91 | $ 89 | 182 | $ 182 |
Future minimum lease commitments | ||||
2021 | 246 | 246 | ||
2022 | 434 | 434 | ||
2023 | 422 | 422 | ||
2024 | 314 | 314 | ||
2025 | 278 | 278 | ||
Thereafter | 530 | 530 | ||
Total | $ 2,224 | $ 2,224 | ||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Sublease, term of contract (in years) | 3 years | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Sublease, term of contract (in years) | 11 years |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) - Interest rate swap agreement - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 12, 2017 | |
Derivative instruments | ||
Gain resulted from changes in fair values of the interest rate swap agreement | $ (15) | |
Line of credit | ||
Derivative instruments | ||
Interest rate swap agreement | $ 8,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value | Level 3 | Consumer Loan | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Loans | $ 117,000 | $ 115,000 |
Fair Value | Level 3 | Notes Receivable from Mobile Home Parks | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Notes receivable | 119,000 | 108,000 |
Fair Value | Level 3 | Other Note Receivable | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Notes receivable | 17,600 | 15,000 |
Book Value | Consumer Loan | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Loans | 116,025 | 111,742 |
Book Value | Notes Receivable from Mobile Home Parks | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Notes receivable | 120,598 | 109,806 |
Book Value | Other Note Receivable | ||
Receivables, Fair Value Disclosure [Abstract] | ||
Notes receivable | $ 17,731 | $ 15,104 |
EARNINGS PER SHARE- Tabular (De
EARNINGS PER SHARE- Tabular (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income (in 000's) | $ 12,428 | $ 10,040 | $ 21,451 | $ 19,063 |
Denominator: | ||||
Basic weighted-average common shares outstanding | 24,202,631 | 24,201,220 | 24,200,879 | 24,260,274 |
Effect of dilutive securities: | ||||
Diluted weighted-average common shares outstanding | 24,234,913 | 24,201,823 | 24,229,265 | 24,260,938 |
Earnings per share attributable to Legacy Housing Corporation | ||||
Basic | $ 0.51 | $ 0.41 | $ 0.89 | $ 0.79 |
Diluted | $ 0.51 | $ 0.41 | $ 0.89 | $ 0.79 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 11,819 | 603 | 8,951 | 664 |
Stock options | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 20,463 | 19,435 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||
Antidilutive shares excluded from calculation of earnings per share | 79,459 | 90,783 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Bell Mobile Homes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |||||
Accounts receivable related parties | $ 27 | $ 27 | $ 1 | ||
Accounts payable related parties | 76 | 76 | $ 61 | ||
Home sales to related parties | $ 695 | $ 533 | $ 1,393 | $ 1,416 |