Legacy Housing Corporation (NASDAQ:LEGH) Q4 2023 Earnings Conference Call March 18, 2024 11:00 AM ET

Company Participants

Duncan Bates - President & Chief Executive Officer
Max Africk - General Counsel
Jeff Fiedelman - Chief Financial Officer

Conference Call Participants

Mark Smith - Lake Street
Jay McCanless - Wedbush

Operator

Good day and thank you for standing by. Welcome to the Legacy Housing Corporation Q4 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Duncan Bates, President and CEO. Please go ahead.

Duncan Bates

Good morning. This is Duncan Bates, Legacy's President and CEO. Thank you for joining our call to discuss Legacy's year-end 2023 results. I apologize for the release late Friday, circumstances outside of our control delayed the release and we will try to avoid Friday releases in the future.

Max Africk, Legacy's General Counsel, will read the Safe Harbor disclosure before getting started. Max?

Max Africk

Thanks, Duncan. 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 that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations and therefore, we refer you to a more detailed discussion of the risks and uncertainties in the company's 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 assumes no obligation to update these projections in the future, unless otherwise required by law.

Duncan Bates

Thanks, Max. I'm joined today by Jeff Fiedelman, Legacy's Chief Financial Officer. Jeff will discuss our 2023 financial performance then I will provide additional corporate updates and open the call for Q&A. Jeff?

Jeff Fiedelman

Thanks, Duncan. Product sales decreased to $145.1 million or 34.7% in 2023 as compared to 2022. This decrease was driven by a decrease in unit volumes and the conversion of certain independent dealer consignment arrangements to inventory finance arrangements in 2022 that did not occur in 2023. The conversion of consignment arrangements to inventory finance arrangements resulted in an increase to product sales of approximately $29.1 million during 2023. Between December 31, 2023 and December 31, 2022, our net revenue per unit sold decreased 10.4% to $59,600.