Legacy Housing Corporation (NASDAQ:LEGH) Q3 2023 Earnings Conference Call November 10, 2023 11:00 AM ET

Company Participants

Duncan Bates - President and Chief Executive Officer

Max Africk - General Counsel

Jeff Fiedelman - Chief Financial Officer

Conference Call Participants

Mark Smith - Lake Street

Alex Rygiel - B. Riley Securities

Tim Moore - EF Hutton

Jay McCanless - Wedbush

George Melas-Kyriazi - MKH Management

Operator

Good day, and thank you for standing by. Welcome to the Legacy Housing Corporation Third Quarter 2023 Earnings Call. At this time, all participants are on a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, today's conference is being recorded.

I would now like to turn the conference over to your speaker today, Duncan Bates. Please go ahead.

Duncan Bates

Good morning. This is Duncan Bates, Legacy's President and CEO. Thanks for joining our third quarter 2023 conference call. Max Africk, Legacy's General Counsel, who will read the safe harbor disclosure before getting started. Max?

Max Africk

Thanks, Duncan.

Before we begin, may I remind our listeners that management's prepared remarks today will contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements as contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. We, therefore, refer you to a more detailed discussion of the risks and uncertainties in the annual report filed with the Securities and Exchange Commission.

In addition, any projections as to the company's future performance represent management's estimates as of today's call. Legacy Housing assumes no obligation to update these projections in the future unless otherwise required by applicable law.

Duncan Bates

Thanks, Max.

I'm joined today by Jeff Fiedelman, Legacy's Chief Financial Officer. Jeff will discuss our third quarter performance, then I will provide additional corporate updates and open the call for Q&A. Jeff?

Jeff Fiedelman

Thanks, Duncan.

Product sales decreased $11.7 million or 24% during the three months ended September 30, 2023, as compared to the same period in 2022. This decrease was driven by an industry-wide decrease in unit volumes, a decrease in net revenue per unit and a decrease in the conversion of certain independent dealer consignment arrangements to financing arrangements and other market factors.