Legacy Housing Corporation (NASDAQ:LEGH) Q3 2024 Earnings Conference Call November 13, 2024 11:00 AM ET

Company Participants

Duncan Bates - President & CEO
Max Africk - General Counsel
Jeffrey Fiedelman - CFO

Conference Call Participants

Daniel Moore - CJS Securities.
Mark Smith - Lake Street
Alex Rygiel - B. Riley Securities

Operator

Thank you for standing by, and welcome to the Legacy Housing Corporation's Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now, I'd like to introduce your host for today's program, Duncan Bates, Legacy Housing President and Chief Executive Officer. Please go ahead, sir.

Duncan Bates

Good morning. This is Duncan Bates, Legacy's President and CEO. Thanks for joining our third quarter 2024 conference call. Max Africk, Legacy's General Counsel, will read the safe harbor disclosure before getting started.

Max Africk

Thanks, Duncan. Before we begin, I want to 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 that is contained in the Private Securities Litigation Reform Act of 1995.

Actual results may differ from management's current expectations. Any projections as to the company's future performance represent management's best estimates as of today, and Legacy 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 financial performance, then I will provide additional corporate updates and open the call for Q&A. Jeff?

Jeffrey Fiedelman

Thanks, Duncan. Product sales primarily consist of direct sales, commercial sales, inventory finance sales and retail store sales. Product sales decreased $6.8 million or 18.3% during the three months ended September 30, 2024, as compared to the same period in 2023. The decrease was driven by a decrease in unit volume shipped primarily in direct sales, mobile home park sales and inventory finance sales categories. The decrease was partially offset by increased sales at our company-owned retail stores.

For the three months ended September 30, 2024, our net revenue per product sold did not change significantly as compared to the three months ended September 30, 2023. Consumer MHP and dealer loans interest income increased $1.5 million or 17.3% during the three months ended September 30, 2024, as compared to the same period in 2023 due to growth in our loan portfolios. This increase was driven primarily by increased balances in the MHP and consumer loan portfolios. Between September 30, 2024 and September 30, 2023, our MHP loan portfolio increased by $22.0 million, and our consumer loan portfolio increased by $15.6 million.