LEGH - Earnings call transcript Q4 2019 | Legacy Housing Corporation

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Operator

Ladies and gentlemen, thank you for standing by. And Welcome to the Legacy Housing Corporation Q4 2019 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] I would now like to introduce your host for today's conference call, Mr. the of Chairman Hodgson, Board. Curt

You may begin.

Curtis Hodgson

morning. Good

Act contained been, we prepared harbor forward-looking remarks may subject to risks may your is remind and the statements forward-looking statements, protection I management's that to of have of Private and Securities uncertainties claims listeners questions. our and make XXXX. today response for the Litigation in are additional statements Before Reform which begin, may company will the Therefore, forward-looking contain safe the that

Actual discussion current Commission. refer Exchange with results the expectations and you to filed differ from and may management's risks of therefore, a of uncertainties report Securities we more and annual detailed company's the the

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

turn we deal address impacted in and before and encouraging performance lot a Legacy's caused the it's Now, first about the across think turmoil in anxiety what news great that a has to I obviously ongoing pandemic appropriate and of QX of world is globe. XXXX, the to

out go crisis, we the those those of encourage impacted to by and to take minimize the necessary and everyone current to any to health the all certainly precautions risks thoughts health Our your around you.

the potential of in environment. I current impact this will remarks. on want also call in more for thank to detail in this We Legacy my the joining you address later pandemics

million a XXX% in year our year-over-year, sales $XX the X.X% over those of and $XX improving year was for We on of revenue traded manufactured did best We fiscal an XXXX a XXXX. million was this achieved increase first $XXX simply overview sales a to our XX that home from a product XXXX turn history massive year largely to growing XXXX then publicly happy quite to the over Legacy company. by Now results. for the communities, year. results million, increase record obviously, let's note Legacy's

and refurbishing and for a trend the XX middle up in to were by spent believe the expanding this year relationships million restocking, and we're of pleased for believe time in an and this in We We existing few that was the sales parks, with we company-owned generally our were we respect last lot XX continue improved dividends. cultivating should of $X also years We those efforts months. to manufactured store to dramatic reaped cycle home million XXXX. communities, expertise $XX.X next

you our and higher our how higher company-owned carry revenue improved homes of flat to explain and sold compared as XXXX remained relatively stores As volume XXXX. know, though margins finance this even rates, in the we capture helps

have for orders. home our million, orders the expanded manufactured $XX.X In consumer growing increase XXXX. of also $XX.X now to and year a our respect XXXX, the Legacy million $X.X manufactured portfolio tremendous Even to of financing in tremendous in interest we community had year communities by community impressive portfolios. with income reflective our those an grew over more XX.X% by loan home million,

We loan also for approximately losses. allowance million expanded fees financing $X our and consumer at a million to deferred book $XXX by

originating of type mote, a loans. challenging to our our and Warren work think We these mote, books tremendous a the house due servicing in provide Buffett great times even and in team

SG&A in challenges a from $XX.X resources presented company as required some is most the million essential in increase company XX% and adaptation prior reflected certainly public our Our and meet XXXX, approximately to obligations. This first increase public year to some year.

Legacy. for year great a was XXXX overall But

to compared sales XX% margins in product XXXX. Our XX% were

million, and net healthy rose the our prior preceding income approximately of approximately XX% increase than over million $X tax before Our income year. more a $XX.X .X increase an Likewise, $XX very year. from to increased the million, to

For the demand we've with We very what balance sheet. in improvement XX% proud year, and production ended XXXX. XXXX. I'm an levels our of strong share of note $X.XX, a accomplished healthy strong over very was the per earnings year on

definite current the think we also opportunities. will COVID-XX or challenges, While situation presents it present presents

Legacy we is as this We in always this managed feeling quickly, the the more get valuations will well us to stabilize our nature we and conditions be adapt improve that to opportunities years. or few to when flexibility than to part last its and of at peers or vertical times beneficial the to centralized have acquisition COVID-XX and when enable as particularly perform least to some dollar era. advantage tough, during growth this relative operations figures due and allows think it anticipate in case us take much is of seen is

this the briefly and in industry view to some provide all crisis me some going detail on be like some of situated say global of where immediate health economic Let of or like certainly the hotel Legacy impacted. brought pandemic face. is the industry. that manufactured the not is more our airline light home Legacy is fortunate, launch legacy is in more in to businesses we companies,

likelihood for period least or deferred our of a increased negative at on of example, operations earnings there XXXX, some as For is payments. loan anticipate we impact a losses

or permitting our purchase suffer employment, unable providers of shop as zoning, potential customers development reduced has cash to some and regulatory postponed. for resulting delays qualify are are real to likely and flow homes, new estate for reduced a projects as loan sales cannot decisions, from issues be As lines, home

favorable our facilities, or as we like of raw recent However, for are opportunities, which negotiation this our term of of with credit easing labor our coming borrowing present more perhaps our already some or the more terms down, ultimately long situation will anticipate costs. materials, cost such of as

to the and years, most taught are episodes help like that our with times Ken decline some isn't have over so prosper come know two We momentum. us some by ever tactics Legacy the we they some endure lessons in during last previously XX and seen us We've to XX, recently positioned out times. situation lessons. this difficult navigated Texas, current these proactive rodeo. of experience in of trying is being positive can oil that I of the first these difficult applying these We're the times valuable using have prices

begun already for offering we've sitting down requirements manufactured of new offering example, the certain discounts for communities. units orders for sale company For stores, home discounts and payment owned aged dealer and reducing inventory on on

balance This obviously to next the of policies, anticipate months an continue financial the our to adjusted strong situation able for and business turmoil. profitable rates update you and we the and liquidity, available even the is facing current will for company and nonproduction maintain will even wise production our our order position we being modified objectives our Additionally, our in preserved few company when With has current workers, pay strategy. we and overtime financial evolving sheet if climate book, anything execute changes.

I call quarter-over-quarter would over the comparison. to like turn to the order Cork? Cork in discuss

Cork Van Den Handel

or Curt. manufactured our sales, of $XX.X component Thanks, million. of fourth XXXX to $X.X the $XX.X increase Sales the XX.X% revenue $XX to home quarter Product net quarter quarter of of to an largest was $XX.X in million revenue, XX% the million, grew revenue million. million increased for fourth $X.X Net parks million. over XXXX's

million, our of $XX.X $X.X through of independent our While stores company and to consigned sales retail million. million network in to increased sales through increased retailers $X.X owned inventory quarter XX% the

the $X.X or These carry factory increased compared consumer million. stores, XX.X% quarter gross loan retail increases last percentage Product fourth Interest $X the were driven manufactured the of Interest highest to to increase fourth in our increased the loan increased XX.X% by generated $X.X home to million, by of And was year. through partially million offset sales $X.X typically X.X% which XX.X%, million portfolio a XXXX. quarter margins. income reduced the sales our recorded from sales portfolio by to park margin interest quarter XXXX. compared to direct increasing our gross

of $X.X our and compliance reduced higher and offset to of reduced increased expenses from quarter expenses homes. delivery related retail stores, losses public and personnel XXXX, of staffing owned SG&A by sales $XXX,XXX company expenses company insurance of reflecting on the fourth million repossessed partially

in weighted increased average million diluted XXXX $X.XX compared fourth in million period over And of the income outstanding finally, shares $XX.X $X.X and the earnings similar earnings Net for recorded. of Pre-tax $XXX.X tax per quarter. million share $X.X Income $X.XX million. of XXXX. basic higher $X.X on based to million equity the the $X.X increased was XXXX million fourth to year to quarter prior compared quarter. million the to $X.X from year-end has million $X.X Income on was the quarter in increased

That financial overview. completes Curt? our

Curtis Hodgson

that were the optimism about headed discussed well earnings Cork. third quarter in fourth earnings. I'm grateful justified quarter. fourth our that direction last quarter. Thanks we I the as we in the going we performed On was expect optimism call,

that value today, the year makes it an we But I and remain XX believe the here continue or unprecedented over our return the next we're economic global sit bring. what about to to to know of health I crisis will facing obviously I precision predict any months Legacy As months. future optimistic next with few difficult and shareholders will significant XX

six about months questions a or next what picture paint three looks me Let like. the anticipating

that production to of a private to have up XX production with decrease. sell park them from where Indiana But we the pretty floors decreased the it's branding manufacturers We State distribution overall our our from modest per our houses in and supplemented day, our have and Texas customers. from other in XX company increasing buy we

kind anticipating about the before. quarter of So same be will as second I'm sales that the

where even going to to and quarter, I we're Texas, know but strong week Xst. the we this we or In days continue, into crisis. crisis. know in backlog through third really production April will expire on, Going is not order the this sold tell, which I selling couple take have COVID-XX that we Georgia, whether be production some because don't us, next can't continues promotions In going because over every our should

second with the quarter. quarter confident decreased made. about We've some XX% optimistic approximately moves by we and just costs about the I'm of the SG&A I'm third

So a are our All working our workweek. be three profitability They're at XX-hour strong. and standard plants revenue should working.

always And that Thank attention We’re now producing take I'll for have and we your you questions today. like have. before. you’ll interest any

Operator

Burdick [Operator comes Ridge. David question Oak from Instructions] with Our first

David Burdick

just more and great the from? strong virus strength and you But tough wanted was the QX seeing where it’s where was that to business a time some that momentum. color get at year little the on a So ended coming came

Curtis Hodgson

lot a in QX. came the way we of I a as of from we but QX were in different is normally The production producing think places. down were same in industry, quarter kind it our

our actually, higher tend we of to a where expenses we QX fairly pay able be. a to expenses, of have period but and our SG&A So than QX also percentage a expected have sales. normal would bonuses to SG&A lot we were top-line a incur held as steady It’s

I those So that pleasant two think was, were surprises.

a we steady Our volume SG&A higher expected, have even where than usually higher. the little was quarter in held it's our little fourth would a and

continue our We of to portfolio. build business book

gradually take our quarter we Our put so interest hope up every I winnings income own in answers and every week, was on our your as industry. we ever as that them question. every -- month, redeploy

David Burdick

trends? little talk being order little some that? down Can book you that about strong. a some the details Thanks. March referring to on mentioned more provide color assistance. then maybe you you you’re And offering about able more you more Are detail? payment also your So be of weeks? a a sales in in you last talk on you couple and discounts Would little Can just to provide

Curtis Hodgson

orders Texas XX% the production. or of And we strong show. annual year, for even XXX, canceled about XX% have industry Mississippi of March, units the they've which of end they production XXX big that declined missed big even show, we that be may is the XXX, COVID-XX. typically during our show show at to and think of Surprisingly which exceed Tunica, happens the in Tunica Sales get I at

we've numbers almost the that, do essentially end types have as for of same would at the I of with lieu combined promotions, communities that Tunica, try those unveiled typical offered type communities down Tunica production. promotions as In that that interest doesn't with was payment regularly. financing time that to Wednesday and to for that that be plan to anticipated We like the participate. these done free a it This to that we've six the same so are The of we numbers. we until Tunica in the low essentially months just sales lock isn't the good don't first

we the make bit We're steel sure down our ahead maybe much is manufactured in suit a hopefully as of housing, our the think competition of a have we and way, more get manufactured costs of feel kind it decline nationwide entire does. and that's along and decrease a to yet. may worked any Legacy to a if The industry. a shipments through to across softening months want share next intend down get is opportunity COVID-XX a little entire have we'll if nation as at promotions housing. next throughout sales We has for that do I bit, likely anticipating what shipments smaller We do XX prices all. I in fight our before wouldn't of be it XX XX% labor decline we offer shipments super-duper we to surprised maybe have think I is of an pie just won't as competition followed six that the the we last be the little at over down months is a the of little some lumber bit third, XXX,XXX and even months and in market don't

Operator

Our next Mark Lake Capital. Street from with question Smith comes

Mark Smith

you next versus what mix quarter, you And as that through few cycles saw the know you shifting bit the far maybe you've talk you see double-wise? down over months? singles of been a then here as could about some Curt, how sales before during mix little as

Curtis Hodgson

years else going in one much. am really decrease this I concerned COVID-XX. to in I'm I'm somebody I very in since oil this a Texas the have with because and number to the year up it's keep down more XXXX. I'm not cycles, than I'm prices business that, XX But statistic address about question, old with

consumer to direct much of exposure that Oklahoma, case, a states exposure no the Basin Texas oilfield. jobs and So, we've oil in In to or had than a X% our it's our price portfolio. Louisiana, have oil. there’s West Texas, we the from probably X% $XX barrel don't or are more don't today associated $XX that barrel have We Permian much of with

lot the and a EMEA our jobs those But as of a companies. Texas layoffs oil has having are related whole Houston at states, that

a we the coming know of to retail repossessions keep sure difficulty So But primarily that to everywhere will our happen we having Texas, we people in a and slight keep increase from what moving positive in collections. California for slight anticipate don't are Midwest, from increase but the demographics everywhere.

have do said Southeast states as going as just amazingly long been fine So we the as through and positive demographics resilient has in we’re this.

increase may on In production. sales fact, keep we have their to production in Georgia, our because outperforming

think point from fast I I through have $XX a So that saying goes balance, on ago, many from experience $XX. when you going just we're to enough years an oil this I developed fall can't view. get to that of

different we're to And close competition. major pricings XX steps more Champion, on already down of so that’s running five SG&A within much our promotions I I So all plants. capacity, One it. while ours we days, pretty company, XX think are think to has and implemented ahead to of Skyline three work shut do already

do you for mix? a Ken, have product So feel

Kenneth Shipley

I you know XX-XX we %, to I and think I to about the but everything, would I think lots, singles be dropped stronger about have still about about what doubles used XX% doubles the are and most going is. that's what as got We're singles would XX say oil to the of sales they of mix park single market. the that XX% to buy is before probably be think

Mark Smith

that market, growing outside guy, into look more people, know and kind you seen kind if then Texas home this primarily and homes maybe but business site in mobile Have recessions of I of is you move we've downsize you backwards manufactured that for built seen housing downturns. of And a that parks as homes?

Kenneth Shipley

think some build probably downsize you're we've people I for but And lot think more going the and to housing, going and growth topic get lessons, a out people to to to there. especially I that's I we happen all try more, Yes, this where learn their cities to see are to they're start with affordable think together. crammed want of back of going look

Mark Smith

have then question both that home little manufactured see more down? loan as foresee you're maybe your And rates come you'd these there seeing you or for a kind to And me at with do at the that, get opportunity spread coming get, at all down you we costs land maybe or in talk that look last consumer and business, sync is kind of borrowing spread? about of as just Can the an the parks.

Curtis Hodgson

decline years, be gradual few sticker a to shock. last less as had a want the of Over we in just rates we've

margin, So And our down all and have X.X the our material talked bit corresponding our guess. mind I consumers gross affect XX%, costs Cork XX% think had have But We isn't programs we a, we and know labor now reductions we've that have and offer we way really in paying about and increase we but XX% have that because to any are profitability, in interest. we'll which down. were coming price X.X. don't I we think a paying now parks little

yet gross any of because increased our not wage to go different just this if are the our actually are we're recent they crisis, bit over data up. So all. already, hasn't, that really several so margin has maintain will at during are a COVID-XX one going our portfolio matter XX difficult how crisis, of most It's hiccup shows

a that COVID-XX were our nonpayment or In bit before slow we've began. their rent, had pay, ability full that’s the crisis few go of anybody their had haven't COVID-XX disclosure, should consumers a During two portfolio. in is community the deterioration but which to their into we situation little indicated three parks yet, a since pay this park we've concern pay had crisis, don't

or those bit superior will the proprietary our perform a and think we've and before. they earnings the we or matter what Do We when an portfolios a work don't know will Do when we you do what perform. XXXX those not we repossess our health And our of and It's this even doing. up well. knew I we're Jenny But that we with well sales difficult happens not now earnings on to road our that that policies don't do the inventory? us group. as prove discussing how of show, performance just XXXX call. peer I Neil borrowers? probably are think little and it's were times. far in And We’ll this reflect in lamenting through been on whether me, we And fine for time it during and prices out. that prove to

Operator

[Operator next with from Chris comes Instructions] question [BICM]. Our Colvin

Unidentified Analyst

a couple had I clarifying. questions question, a just

the say second quarter be quarter, anticipating there? your did repeat So, first you're too in-line you which will commentary you with wasn't or the presumably that can impacted, roughly revenue

Curtis Hodgson

although a shifts we production, it to because lag, count guess and everything I as revenue there's the until else. sale don't

production assuming big about them we for there. competitors best of the years adding another was with to principal to just made I revenue same houses So company made our affiliated second done from bunch Indiana that top-line deal. had, in to sell then and reflected or we're in know customers one in in of them or of don't we've XX% quarter, amount something we a but we lately It’s a because buy while deal production. having we're production is that decrease sales And the approximately the our

and deterioration but don't I in an X% third on we up, in little opinion form just thing think where news, prices little be even or in sales, the a those that time better quarter, a built better which as X% on shipped, there’s have any could better. will approximate it second first whatsoever I think a like quarter running to bit new every wake I be then quarter the I same just second isn't really the trying their quarter bit Obviously, really, the plant something currently oil the Texas. and So so

if sometime even here. be So cause production over the the But to get us thing real in in make more could will things I think cuts prices health soft oil Texas the in Texas in summer.

of quarter the oil is the it's a So it more in prices function crisis. of third than COVID-XX

Unidentified Analyst

And times Texas, you’ve then production doing a couple it Texas. is but as George far great, was in said unclear in as

show. XX% You since said the you has dropped then promotion this to didn't you production XX% and to ran have Tunica

at today, operating said is kind what So plants is capacity? it's in I how So because unclear you of much down Texas? about something guess production production full

Curtis Hodgson

couple And early stimulate the This seasonal in to I production. year, than of think typically winner like is not It's confused. less business part do production as time then of of maybe in I and promotions kind concepts the we year the the as we Tunica the of sell getting was fall. summer but the in different good

we COVID experiencing been of which it Texas, normally an much technical less production order since promotions for subject book we've had than promotion. isn't of that without XX% So just would in around but we to

happy Our to going week, be to with promotion, delivering to be be that they're just XXX think sales orders honest. I'd from staff XXX XXX this quite seems to sales that

little decreases Indiana had actually in boost Georgia Texas and topline. in So up I bit, decrease help into then top-line remain all or production have Midwest think per we same went by a Texas plants and the and the Each are one day. to local the production plays. boost we've Texas, plant in

around just in do nationwide which guess from it's And is, on the XX don't of in look as I further I cuts we're I’d production, it I we to math half I of when but is production as this So Texas. that through the as the in order XX%, actual crisis book said decreased XX%. that per mean level to say day, production. earlier, far XX approximately for have I ordering And

third while, books to order close only be It's affected. that we enough quite the now have For quarter can that quarter. we would a the second

order say to I the no we in weeks. We within work matter book, back probably doesn't the next book Texas, the it’s quarter the second order Texas if six quarter production really decrease third would in have happened what in might come the on wouldn't that to

Unidentified Analyst

production, not SG$A events, And roughly mentioned XX% helpful. the to could a seasonal taken think you the cut recent huge That's cost just you that's necessary if that aspect, more actions clarifying there XX% and already said be with the so you there's it's XX% cuts. then I on

assuming economy on So impact out just and and the there forecasts of pretty COVID’s of because oil kind pessimistic there're as course well. some

let's or So can a dragged recovering. much remain little production-wise, positive? assume not it's further? opportunity gross of do profitable from bit there cut kind oil a And profit margin is perspective, on is SG&A How to gross you your remain you because think

Curtis Hodgson

make of of but good is go away. several on We a book have interest suffering. going We the profit fear to not different don't ways part made it that's that our much we

So feel really other talking production real right half of comfortable. And wholesale from the equation. which about mobile of homes or is kind we now profits just

through to Our during retain pretty crisis. park be feel are I our able the ordering pretty going business parts that heavy all good special on we speak. we'll that's this as

people's store a suffering by volume are Deals times is I decreased XX% that to been off there owns home sometimes mean, decreased post off, significantly. and has there during and by anybody retail mobile it is a if willingness these even ups

the we’re place shelter So all commercial the we're to allowed industry in in to operate. construction business out has still allowed have orders, are an edged are that where in and a usually But that's operate at. that housing is states

must we told being not we're that and home. blessed stay we're guess I So

if got no question. distracted. So business, some I we your little a I answer matter don't what, that know get

something there's left I just if me So out let know.

Unidentified Analyst

XX% this revenue cut to profit, if levels side, are cut SG&A is that is the point? there pretty lower, bare you or more SG&A On bones at opportunity

Curtis Hodgson

absolutely and a half kind categories, The To eliminated we'll have is with volume the pretty took took on the then payroll and there. the we it really variable. working about are would I what half, we're it good really is fixed there, other is is We board and you go a over save in across variable it big time, so a side, linear, which the of is cut service somewhat half and got that of cuts. you that think of up on some which we bunch that's SG&A shape couple revamping fixed extent and down policies just we

things it. said lot that decrease about tough, I things got I that could it's we that of salaries, overall its in its fixed, guess XX% XX% rented, When SG&A about have disruption SG&A, is so would if but we a its possibly oil really do and are in younger for those can't XX business. in XX the eliminate that old still utilities, three an we of to Texas of you that the instance, plants In during stay years was another from went XXXXs number for and than without that's crisis.

one night what's X best o'clock and scenario. way but case markedly to the expense get that, to in what's going you the awake case think the if is don't morning, worst decrease at to So SG&A it's we're it at could that. prepared come We smarter. comes to lay And I

that We tested don't workers COVID-XX. positive have factory have for any

if our at And one even don't if had would it breakout our our it one sometimes But response plants, What a would go to which of probably it we would did I want I significantly be production, choice, impact to think, there. our in Ford do? we plant? well, in What what wasn't And that would case. be? if really

So we're this to that's and there serious around. expose workers to going sit virus not going

Unidentified Analyst

listeners you lend JV reminding consumer one me other structures. your loans is the dealers, loan last then for portfolio, through that maybe on And your

with of first explain JV you So XX% really scenario how just rate Can defaults of peak if structure a I'm or dealers? almost so. to a like start the the if there's you're thinking about out, loss insulated because

Curtis Hodgson

book they us of from JV share consumer who agreement a XX%. of all the our of with independent out winnings sign will exceed So that repos generated says losses cover was by almost any retailers that their that

what we the on hook if So we that. built carefully, much the and a owe out XX% equity have in the the for hook portfolio. hook liability our at independent greater basically, for the our anything is maintain you'll retailer see of the we're you the them on financials on read the portfolio dealers is on their or sheet first so of that portfolios balance than many And

that portfolio. So amount is our cushion retail a on essentially

want As wholesale it about XX%, of and X%, unit takes get when to finance our that a par on home out portfolio bit far and to he -- to mobile and installs down and as he speak and goes connects and a and and we reform utilities XX%, ties little that it. builds and a we security at it deck there, put sell it I our ahead $XX have the million possession

Some $X,XXX, old $XX,XXX money in of unit the products that rental have they're creating. their this $X,XXX,

very have So up repositioning be it they would it. in and be picking we that do fearful that and equity would

we of home park loan. on case the And suffered company position park in strong ever a with the the of mobile bargaining thus home think history we've entire far, So loss non-performance. I have don't a in a mobile

look don't as I at that significant exposure. So

they are said, of little issues, be this that to them Some But to rental having have in they bit relationships a we difficult cash really out do unit. times. if And these helping these substantial are dear us. flow may investments

the them side. some were guy believes hardly named really averaging and in guy was retail doesn't retail loans we of them. that that very overrule XX% around book down them, conservative portfolios. believe the Stuart make We've a and unless created or tame other we just XX% between a by to So have led McDowell, other the entire I those in business do two business relative don't he's industry the strongly overrule with we he on payments, margins been sides, our real most

feel business our home portfolio. of same So I park our about book retailer is $XXX way and million the loan solid

finance products outperform to the and significant we factories allow basically keep will but it that’s Legacy won't outperform is even you I made enough consumers be and will hoping will a appreciate they during difference. $XXX these running. year, can And and we what close. the that mote, Long So peer million in for the answer that to parks mote be that I'm our simple and that's group enhance roughly difficult this why we that times parlay to

Operator

FBR. Riley Alex from comes B. question Next Rygiel with

Alex Rygiel

had you development the that. delayed slow a four two activity? just detail go then open more confirm community first, been bit, but moment, And you little to if here a I on questions, bit suspect have on but update retail quick that they us into probably at new that’s understanding efforts, little planned could please to your Couple probably stores

Curtis Hodgson

Ken, store what the the take you development. retail don’t can take and I community

Ken Shipley

we've our the did of this another own We got slowed of market, that's bit. with of around, just, not We that either up now downsize right on the in one is may things COVID-XX it and board. of drawing and or it’s stores but or first. Atlanta one We've we and grow two shutdown is at end year off that open at the we right we're got stores something more but stores a look little market, kind struggling up a through the deal get got couple or to the in in one still this paying

Curtis Hodgson

they've our said since real as in that I haven't plans loan these really to in with In hearing developments talked We we on they guarantee that plant, we added now and guy a we well. it's haven't last had on. the a loaned that personally of indefinitely. business a which for developments a him well need who’s first We the secured which our community development, books, treatment made week talked about recently decided own about And then a to they of those before. to the our Austin On on water public his postponed setback three proceed estate call. one much as April, development they he to in the community

So delay. that's a

cities be this spaces those projections those difficult will hopeful all online, that staff permits months. that other around at councils positive coming they’re and approved we'll and of getting have but San to online in so this that’d front I I'm still the couple guess to pushed building advances place an like several the and to back like of then and get still we're when engineering the Antonio, depending year that spaces this think be give in we've be having work loans not been that's happen, has two round, trouble lost city Fort one that made and our I country. Austin, people Worth I’ve confident giving point. can we I'm the just projects going when And places things places on and that to other in that business in supposed us in But places in to we’re very in we are all us areas, in last coming

of have point from of our secured we by view, real loans place a estate. in two which strength And is neither

a of $XX bit but roughly and is estate our on $XX any powder it’s on on million what or with don't these million placed surprised be for estate And I developments single loan. is I $XX going not real exactly we of if more. So have dry wouldn't as all real know our books today our of million,

balance stores if I'm worse to to it I’m I don't what use to get know is really wanted presents solid want get the So sure and I intend itself sheet saying. not you our to extremely first, opportunity that kind but we so of better,

Alex Rygiel

manageable last quarter question, since to COVID-XX? at and very into volatile XXXX. couple sort it first then the reasonable last so. of has and levels it's inventory. Inventory stand half different Inventory look a year-end the of do year here And relates end the been times Where today over almost as as they going or of of

Curtis Hodgson

With are… our inventory levels March

Cork Van Den Handel

we're that's at something that Curt. prepared think don't I to this release time, Actually,

Curtis Hodgson

and any don't it can market from surprised on that just XX% mobile in numbers. it but either just that we that and or we raw be for be sense and materials know bottom-line our a or of homes moved other I of I we’re really then could change they think the XX%, and quarter-over-quarter really I is one direction. think And consigned it other all way to to down inventory those people. up counting XX% the I’d number retail still labs point a where was we view,

have sitting aged locations. inventory, products we old concern we an had want aged on don't about that bunch a something retail It’s inventory we're always of concerned about

keep old do ones the we for and of So that. up have old we that eight got lot years We on they of then no lot. bunch have a their some ones track that have

owned I that So of inventory to that and of with a which our come haven't we're to old company use stores recently. lot terms ones bunch is a trying can change seen aged just having with, heritage, challenges is I think

Cork Van Den Handel

Yes, sales done out. end that a we've reduction we're year of some stuff doing in

Curtis Hodgson

optimistic and product we’re be to to product extremely which a point-of-view that going We on some September and invite going anybody still Worth. show, Tunica lead we launch exciting we to have changes we're absolutely be product doing the from and in down on now that a come but aren't more some Fort is mean, our I'd different I industry up difference to coming in development we’re and so times, exciting what big industry. really make for new products is but the lot going

Operator

showing not further call time. at the turn I'm over to this And I’d any to host. questions like back our

Curtis Hodgson

for Well, and the this you get we'll appreciate and to I next call anybody hold at thank if Thanks home be. forward optimistic be many side calling team crisis question. and with of sure execute of should looking on call. other morning, to us are Bye. have free the juncture. I'm a in more we'll to normal. And as further from Hopefully, you you back you be on on as for the feel the am any And we being working staying all I'm having of this you

Operator

Ladies presentation. and gentlemen, conclude today’s does this

a may have day. wonderful disconnect You and now

Legacy Housing (LEGH) 30 Mar 202019 Q4 Earnings call transcript