The following is a summary of the Legacy Housing Corporation (LEGH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Legacy's product sales decreased by 28.8% in Q1 2024 due to a decline in volume shipped in direct sales, mobile home park sales, and inventory finance sales.
Interest income increased by 38% during the same period, driven by an increase in the MHP, consumer, and dealer loan portfolios.
Net income and basic earnings per share also decreased by 7% and 7.5% respectively.
As of Q1 2024, Legacy held $0.6 million in cash, with an outstanding balance of $11.8 million on the revolver.
The company repurchased shares worth $5.4 million during and post-Q1 2024, with about $4.6 million remaining in authorization.
Business Progress:
Despite a drop in sales during Q1, Legacy reports improvements, backed by the urgency of housing affordability.
Efforts are being made to build the backlog that spans a few weeks across all manufacturing plants.
Enhancements in product quality at the Eatonton plant have resulted in higher product sales.
Despite lower volumes, the company has managed to protect product gross margins through efficient management of factory overhead and expenses.
Legacy's conservative financing approach has helped maintain low default rates and reduced retail loan portfolio delinquencies to 1.3% in 2021.
Progress is evident in land developments, especially at the Bastrop property, with utilities and road construction, and the commencement of a water plant.
Proposals are under review for selling or partnering on certain properties, with expected movements within Q2.
More details: Legacy Housing IR
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