Legacy Housing (LEGH) 10 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Curtis Hodgson	executive
Thomas Kerkaert	executive
Mark Smith	analyst
Alexander Rygiel	analyst
Michael Chapman	analyst
DeForest Hinman	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Legacy Housing Corporation Third Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your first speaker for today, Mr. Curt Hodgson. Please go ahead, sir.

Curtis Hodgson

the joining for you call today. Thank is name Curt Hodgson, Chairman. Executive My

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

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

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

of additional detail. turn quarter over Kerkaert, Now a third Financial Officer, more the performance let to then will our I Thomas discuss provide discussion financials and the our updates. Chief in to turn to me call corporate

third of quarter, of representing over increase its track which quarter from volume record third the $XX.X We quarter, Net came revenue XX.X% increased of a This $XX.X last from quarter the increased in and experienced increases. the year. to strong to price income Legacy million This both year. for the million in strong improvement in third operations our million last from financial improvement $XX.X delivering continued results. quarter revenue

and better price systematic pressure unit increase offset we finished we chain gross were While to margins increases. cost with to realizing inflationary as inventory selling by supply pressure, regular managing ongoing goods deliveries and our challenges and cost able

margins our and We to will footprint. and to opportunities SG&A leverage focus grow protect on continue

compared to quarter in income many most grew $X.XX the as share that know. is the over quarter XX.X% year. of last per the to year. share $X.XX for share $XX.X million increase you a This Net Earnings third of metric was followed the last per I per

on XX.X% return an a delivered rolling Legacy basis. value book XX-month on

with our demand continued are both our the portfolio have future to value Of very and in our basis market orders not shareholders. GAAP our home importance mobile under strong. We success are which in our we loan outcome Overall, our success, development. in to reflected are pleased delivering is taken in strides our communities customers great

near XXX-acre we third as in Ambassador as secured County During other projects rights the Austin, well on cleared hurdles water Texas. our quarter, development

communities for continued estate strategic portfolio by homes over mobile peer to this Our as reinforce serve build of and our the home our key a success. and group real Legacy to competitive come. to demand We our see years will houses a major for be advantage populated will

I'll this over At point, the turn call to Tom.

Thomas Kerkaert

Thank you, Curt.

was the on was more revenue, the sales regarding the comments of leases homes that total the achieved a quarter Product revenue Following for than third quarter up accounted over increase while revenue increase, $XX.X XX Curt's million, third XXXX. originating quarter. for for of XX% XX% and in of third XXXX

its to prior loan Interest portfolio $X.X XX.X% XX, portfolio consumer customer to quarter, XX.X% loan by expanded $XXX.X the to prepaying commercial decreased of which retail revenue company's while September due for over a increase portion balance. the retail represents loan from by million XXXX, the a million million and the a Compared $XXX.X portfolios increased to year. XX% to

prudent thumb position while purchasing continued Further, key our provider investments. our customers. highlight quarter, management deepening Looking back for on the we the long-term spending as effective that to successfully both and making while market navigated we is a commodity of through big keep a difficult pricing choice of on

hand I'll call for back the questions. and to over that, comments With final any Curt

Curtis Hodgson

to whatever have. don't welcome thank all you I are comments, you, have you Tom. further question any but ask Well,

Operator

And your from Lake first is question Mark Smith Street of Capital.

Mark Smith

I've wanted look versus at price price average bit mix little of trended? how just first, kind that selling in to a here. homes of kind I But a handful got of increases questions and of

Curtis Hodgson

Well, in that is Curt. this weekly follow but report. have a in I front me, on don't of debt management do it basis we our

think committed what So memory I've you're asking. I to

year period quarter metrics are of this third we're year, we're of depends our XX% third at looking last what up to over. kind It If versus looking quarter pricing the XX%.

had this been year. first to We a However, it's we're really And huge hard looking double if to mix, for single in coming recently, wides. at increase track. wides the you're product of half back

track we've we opposed we sell. of track And that of to metrics, the floors number the number as built really houses we when

sold the volume hence, our the lines number year single we has increased was up gone there's more out So production. being there floor But is because from homes comment stable previously, our one and pretty actually to next. than that of built

building has history company. company's I'm happy back the now of XX a production think a solid pre-COVID the in on daily basis. we're all-time the floors of And been in setting we're per Georgia, as We're that the I perspective the ever case is to producing which to as records amount report is levels. our product it about day, good of in in

we've plants. little shortages sure growth bit That say everybody no XX% for year, give than deliveries if been I'm capacity of that's volume over. encountered current left our a more in -- has you only the about. this we and harness have a I room talking we would can And which labor from may that little material

Mark Smith

helpful on the side. that's price no, No,

sales the channel it in well strong continuing mix, looks like results to look kind as we retail As sales direct right as store at of way. trend

kind talk of trending kind and channel about that Can today? you how that's about you mix how just feel of

Curtis Hodgson

our added of more. to we are Well, retailing business. We've slightly management very recent part some that

calling less It's just satisfying down and went when had our turn even more more to we from your they're remember and may retailers be wholesaler. public, asking to a good backlog intent you you you've customer them. and for less it's for help hard of your As and years and

we we've lots slots. challenges. compete -- Even production have So to our production for got have own

So own they're not and production limitations. challenged a then true of sales because us, It's little our it's just their industry-wide.

All backlogs plus worth they our of our are backlog. a out us it's far are even year not in there, so about, talking for

can pretty and to pick who So year closed locations is do supply choose imbalance selling. we we have community kind we an of just do industry. to we suspect I to of the I know it question be do one who doesn't. sell when it another the But don't sell or gets of anything have product will to that of our we and build. it in sell our can independent long-standing dealer. clear we retail or so sell The one own We relationships or

don't it their myself. I've doesn't. to basis. and are make and figure I me, just our out production wouldn't you a who question issues, It's our Again, decision those limited have production Mark. daily sales somewhat to choices follow difficult directly. on I'm to the that if general capacity be doesn't gets like by retail saying that people in delegated the I managers. answer shoes want But who a

Mark Smith

helps. No, no, that

And guys taken, you've Do environment? As offset about the power? feel have how the you do we competitive have you kind price enough inflationary to of that increases pricing increases look still fully pressure? taken you are at price that

Curtis Hodgson

price we XX out. have offer and increases Each This had we lost our kind bet we time to chance a year, increase, X% haven't we've our back price backlog. of customers of a I

is. was end the can't for wides, like our we few X from where getting $XX,XXX. me bath, for know but X our now $XX,XXX Because old basic We're -- to that's seller. than and see used ago, timer ago single wides don't our I A years we believe perspective, we're So, I a few double house, an are. #X selling years bedroom more that

So increases but it's and customers. amazing me, just our price are just not to us

ones lumber vendors We and the are us, to obvious steel. have

imports. or of price it don't our XX% Chinese talk increase a thing, get But get you We sheetrock could any any take our about a price suppliers. or increase. further windows from and X% We other XX%

the that. where Now I is. know understand our customers don't end

our card can XX% inexpensive loans on in relative where and is the calling end is. the to seem And still industry. doesn't in to it the tell a average payment wide up XX stifle that by We're don't that's know we #X our counterpart originate margin. And months, you, I I demand.

Mark Smith

the of forward? had Okay. Kind last the big a look just MHP repayment that portfolio at end right going I the one to on for little the this of at bit you me. wanted your in that And impact quarter.

anything partner? Is else read to big of there far as there we reading that into as should be kind repayment? anything continued is that into with given that this And partnership

Curtis Hodgson

of is Well, would. you probably our this is are else well-heeled let buying this basis. -- translate prepayment somebody questions. there open view. these a I customer, this buying of I a #X to But very still lot quite was one from was us all customer still should a numbers certainly on knew forewarning. But get us a to and one asked But -- been take just of we along. mostly point the We one they're for coming they're what kind while, of from X a This questions. finance This me has

our generally between So when of we borrowing in we that finance somebody, a delta for. our financed X% make we cost price

more even Sometimes than it's X%.

of out. us math we're is a that do do with what million that if replace the figure So things, fact sales year to our including to could directly. it $XX do matter line other potentially The to bottom that you entity paid prepayment that off replace and very we out would the unable

we We horizon our to the financial have million $XX get loan again plans up on $XX million, so take leverage back statement. to our mark, on once some the

an of be pretty to we're has we loan, you're think opportunity a let's going on customer And money would to an with leverage, he pay of just X% and to say X% I not lend agree. them, and have good get you source trying point But a you good off view, ROE capital. from early and still it that compete when to

us. ways going kinds those spread And sense margin it we're to doesn't pressures longer. while cost we're It selling healthy. have for versus to to keep -- for good why of we under be for on That's product what make a our our the just find

I which healthy this is and of are a gross XX% view. margin quarter, very point think roughly we from

product, money As to we're adjusting ROE that the deliver can to to. going as able make long on be we you're the still

Operator

Next, we have Alex Rygiel from Riley. B.

Alexander Rygiel

of quarter. Curt, couple questions a Great here.

Let's the start community program. with development

So you mentioned Austin.

homes expect to that longer-term is to start view we should your to asset? First be liquidating when then on what Austin, on property? that And delivered

Curtis Hodgson

Well, as United world, so I hard life. the in It's milk you In in spread Austin, pretty our But much liquidate contractors -- of in to may backyard. in the you where throughout wouldn't get is it's government ideal live you know, your do to development slowness for Alex, rest regulators cow XXXX. the the my projects just an much States. and

orders. Couple the hard that at need my that neighbors risk of with the about project developing excited third get ground quarter. fact broke the that who in to really the we notifying don't really It's

So I be XX can running as months. we as we and be far within product can sales -- would expect that up

is capacity, not very miles project, a do itself It's the we facility. that but few don't Whether the manufacturing out so the extremely a project Tesla new exciting might we have only of doing just well.

-- we have that it's those besides spaces under it's also another -- same So are in predevelopment. the XXXX

improvements of Tom dormant to and them I the loose. the right company Land think can That's on ROE we answer view $XX and million, that just that coming an incubating place been south have time in point have one in are about that. Austin. sitting the of for turn from

going the putting in say into right would XXXX, the of dollars water and year calendar now. roads happen -- millions it's to I system building we're spending

because to one as be as far it the going REITs to strategy they're their exit for of spaces. the paying tempting top dollar to it's So sell

But a hard together turn will in be ideal it term. what X Short or . it put short best is plans term, term, we X best own company long the long-term and forever. So it's what's should it exit for down contest between think to landlord obviously the for company

see -- that we'll So comes. time when

Alexander Rygiel

the that activities relates relates or there next it then of strategic ongoing to now, either are And home type Georgia right home question, geography any initiatives of you're other or that building to or building, plant size the you're your in. you're as as the are it

Curtis Hodgson

of We competitors. a that really can you're yes. think But what we're want a lot on would we're the most give the word, planet. with you innovative what don't to I I And doing our company answer preannounce asking, to details

show view to for to And will don't of then having show biggest big go attendees, the But in I kind as a from be yes, [indiscernible] we're point just our of down industry. this initiatives, a the There question the going XXX far strategic weekend. really It's as want not next year. there. product I'm answer. it's

So I'm sorry, Alex.

Alexander Rygiel

enough. quarter. Nice Fair

Curtis Hodgson

All right. Anybody else?

Operator

we have Aviance Michael Chapman Capital. Next, from

Michael Chapman

Just the a homes in couple you homes now of leased the total increase. of portfolio? What's follow-ups on XX leased, have number the

Curtis Hodgson

Tom, you? will you now do take the question

Thomas Kerkaert

XXX in me. my is I front tells of schedule Yes. total got believe me I what our That's count.

Michael Chapman

you do Okay. decide goes And capacity given that? of what into how is that you're then kind constrained

I'm Lease cost. in don't seem plenty assuming be that of Obviously, rates that. at you to demand great there. put there's that on

decision So third put opposed you do you that to -- to more sell how them as what's whether decide into parties? the to

Curtis Hodgson

it can to of left decisions management politics We of that to the level. one. I and be the seems out answer the keeps satisfying. of more gets upper kind It General Manager who what

lease Manager whether General or it's finance that our not cash lot. for or or a flying, a it's a sale to it's it's own a even So sale sale is or

term looking that whether to blind look supply decide that the be and #X That's that. to it's and the demand. long or going to between be appeared He's or of at customer just priority is his production because might whether number is the He priority. of personality, #X not situation imbalance maximize floors. to

monthly So be is X% something we of bases property really that the already you rate getting on I you to to The But on think that mathematically that close we interest. embellish that. don't in recognize I basis. something a we're that have tell lease observed, will of can

line So come. residual dividends value markedly will were the many, not these top for we get leases in residual years since where these those that, has paying up place. the top XXX many open-end they're put be form gone leases most leases, to of the on are in of closed-end in earnings and And of leases and

balance So sheet. one it's many hidden of our gems in

or While at flow the even we that it is more. maybe residual X and cash to value showing might be of X, actual closer Xx probably

Michael Chapman

Okay.

from do kind those wanting the just those, residual you of calls to annuity And you inbound them from and you on on so on guys investors that of basically because buy get hold to that you and get increased the value?

Curtis Hodgson

in but discount is getting thus only to my at. a is on original analysis He the have think he far, it when okay, where a they says unless return way. Well, we that cash a going just we do and not us invoice get out the cash interest on from they're sells. the of price, investment, And calls it's

increased, a first of later, you they've went. and $XX,XXX used. that's right mean the anything, residual rate return be that the buying what Between payments we're in on car since now. of years its appreciated X like for expected $XX,XXX, they've It'd get it's if I worth the and we market value, know lease kind they

Michael Chapman

Right.

And on capacity. sounds just you're on in then tapped Okay. Texas. of out like kind kind It capacity of

shift X didn't there more you have. in Is plants constraints you possibility those have or than to run that weekends? If on the the labor do run

Curtis Hodgson

that shifts that made course, has at ago XX those one before. geographic plan today. looked in necessarily the decisions same historically, possibility of of no you running aren't We've years But location. in make times would were I several decision know multiple And succeeded that

is not building of that cost material. The

before. little the workers next had building tools day they plant up better you to environment weren't you there their and of off left home it off to back they lead type sister where left the if a that it, they their a when add to right probably to time, you're can where just capacity So and come with want pick

just sense. shift. and we the the actually home and conclusion old plant little demand, to my it unprofitable. among prior in imbalanced discussion found that or sometimes situation of at timers That's tenth going between thinking But ninth never a and is We've lot double the a when pay. after supply to analysis we home came little the it of looked tried wasn't We out the

spot don't then There's we we I they plants. the in the here can XX If the for a these shortage get sweet so at stabilized, labor gig, that We XX% least is stay next a so before new. out XX%, is find labor think people weeks and guy, a maybe a to getting door geographic comes about problem. have everybody everybody it revolving the We when as capacity. have last got

same XXX same another it XXX we'll have And Worth, that we seems the workers have Fort first every the then problem like -- have time, are another and that that we showing core have [indiscernible] for not attendance same is have We day. good. the the up we and then

nobody days if of assembly will It's up plant know you run kind hard show an to for don't anymore. X So works consecutive who tomorrow.

Michael Chapman

Yes. think systematic production? industry-wide constraints mean, I be that lot a do is pricing I so mean, across must industry. the capacity of you're in getting you just the that

be work workers the assuming consistent ethic And bring ability change is in going to either kind the or of unless there's that's everybody that, in . to some outside

Curtis Hodgson

in you to just I a they because around get got boats circle take everything are can't I to that something would out think there the its deal. and unload, worldwide problems back When at and a stabilized land everywhere. port think going in Pacific in systemic that

apologize, They sell. mean any sorry, know the and them sorry, say, sense, people or very we I but for they sorry. can't this shingles my refrigerator. begging for I'm beg I'm When suppliers, to talk I'm them doesn't at I I head I'm

something don't have the that. we don't or like have asphalt So the steel, we

have and we in know, their worldwide staff issues spends I negotiating time When more that will I change? supply they for than the begging do don't So our product management price. asking next you you year sometime. that will than to might this question, be. be I be might month. could be won't It you be might -- more be able right It

Michael Chapman

Okay.

don't so the out -- had production out assuming And facilities, have would you tapped demand add there's the you do plant, production facility. add floors the I'm that you ability you where Georgia is demand fill pull, to ability of right can't the the of can production number now, the there pretty is workers if because guys do even facilities some that if pull that have you well

kind like up. it's of to say? that So loop an Is something loosens infinite until fair

Curtis Hodgson

feel we I rough Worth, a build the to we've like employed houses have do to if electrical we plant it or we couldn't right more within work as radius X-mile one that a to build knows any how Fort in how next because everybody is.

These mean the They're build. hard an as aren't I buildings aren't So materials. people physical that problems capacity and to industry.

You months can in put XX less for, facility than up say, $XX a manufacturing million.

place, the there. It's that in bit are systems and construction do on at RV the actually duplicate. plants got have to the States all staffing and our sitting has the understand hard that United least in it's I aren't a quite many There industry in Indiana. materials We're in the the we industry. in construction

number imbalance demand. you between industry, with the in our plants probably count new in one hand But supply in and the States, of even construction United entire could under the

Operator

Walthausen next, from And Hinman have [Operator we Instructions] Company. and DeForest

DeForest Hinman

on bit Somewhat just the comment the valuations color on developed more to parcels. new a for little to get the name,

they you a were UMH believe out the call, number. I referencing put

type something of is $XXX,XXX in for that Is that think the number was path. excess it Or different? I referencing? you're developed of

Curtis Hodgson

an That's question. excellent

trading trading number digits hearing X value has market at First They're -- asked. what is time you're they're is trading they're at. at. the where ever upper The been

to actual UMH's the improvements burst can say bubble, and buy cost, fill The I replacement just and land a $XX,XXX the it but for you the space. let's hate put under in and up

value between significant in the So business, space there's a imbalance. and an value replacement imbalance market

less $XX,XXX, best than our in be even everything. including and to in And we're costs holding for properties, all intending all

be can cases, of mean I be for So we going to $XX,XXX, in -- in $XX,XXX some we're space.

between imbalance market and value there's So a replacement cost. big

a mobile developed The of there's REITs limited think that be can supply that land home spaces. into

for that's entitlements, plan, industry Texas, Here you'll States, my to I've and have of I is life, lived a find years, case. over in thousands put is XX you this X-year of state do just politic not which at the the I've for you have United mean and here can the the in most #X been here. all in spaces

to to beginning from not Oklahoma years end, people X in space. that entry take of a does think there's but That barrier

good compete within that you a have a find So school distance good still district want location, employment space, commutable if to to you an in center. to

I've it price you're I they of just We put replacement probably that heard, reach if REITs, think Xx they but nowhere, out don't middle best I you've costs, your in or X the the can't asked to but following the understand why question are.

some go. you it is That's people of is. here So but it those what customers, -- are my

DeForest Hinman

deal short impatient is don't with development pay of years that to premium. pain, people uninformed are and answer X they my very there is so the the Well, have if they asset

specifically, just that more where X in that are just now that units disclosed the done. you queue. those your Can placing timeline or help I are are right you described understand on But X parks parks believe you've investors park's have parks in you X that disclosed. locations

would accomplish color understanding helpful at and I to providing any what time. how a those you shareholders you're for done revenue really currently developments be you think, better are can what mean and of I very to just hoping get stream much there, provide this have

Curtis Hodgson

I some that. on can color give

parks, unit of entitled or develop barriers manufactured whatsoever. I communities in We locations don't housing any already of mean subdivision All those are entitlement parks. have to

supply electric those. of filed. to getting barriers no entitlement contractors and the the there's between and supply, But barrier tax water There's a little engineering the any

demand the for of to the is have factories is And hard it's we of part even more era. other the So part than the slowness our now. COVID during systems press create forward it and

need them. we're until we guess I incubating them kind So of

space to question, other just $X,XXX different because the is We're is in in I range, or space. a the the first little per answer to bit our $X,XXX, of cost of that believe my we land follow-up $X,XXX it's $X,XXX, somewhere question math doing land all I the the own. cost a head, outside But your per around is want $X,XXX lands that

or strictly So is like roads development any additional cost water. per space

look may not developers we're and feelers you the in most we provide loans. but own this it, X Texas, have are key things, we help markets active in at That in of financing only do out to that major those and we space, we make

think million developing I housing have $XX know, another, loans don't in we who I people out or to million communities states close $XX besides other to manufactured are in Texas.

if lending money, we our building make money They're we homes. customers, make money

pretty would if build drawing as they're more on because I don't pretty the product the It not say couldn't I $XX,XXX, number, but cost I'm know along United I'm ground States, spaces significant -- our with there's I the what's picking And way on that all with their maybe Carolina from drawing a than are boards Southern they and expected markets that is. the pretty a them. all was in our the $XX,XXX get that. breaking board -- that to what that even ones isn't they familiar little far going New So in is familiar There South are many on significant. But in if are market Mexico. development not

DeForest Hinman

those acre. is number for the at a you base? per now, look have we discussed parks off that if that Is that makes pads then math And that helpful. sense X very right or that's is No,

Curtis Hodgson

wants Venus, X better where that subdivision going one to septic say X, you we it's but per we it's land. can like X acre, fork of you Then than selling X do kind the or a like get per to where be land, in road. have in new There's live can If have do usually acre, system they they less Austin, it because something try we're because probably they're where is the a If don't X-point-something if around a community a -- environment case. on there. X to no rental it's

set, live, a on Part of a it's than to swing kids better the a advantage dogs mobile be to in of your apartment. is for living your place home for an

If of take of away, then advantage. part competitor that your kind you miss the you

he's that have developer and that we than we or we're ourselves. netting millions something with a We're believes X,XXX feet with developer, about and in per #X development out X should they financing, bit acre square per he The are that less be scheme. X,XXX this what smaller little doing pad,

we're X per and between acre, X I'd probably closer So to X%, little X% and say. a

DeForest Hinman

very kind on That's development you units you side. helpful. -- a build can't to And question doesn't park a just and talk make you the said of capital? build Okay. maybe last just then you how it sense Can know about and I envision And park not put on it.

the expectation? out from Not it way ballpark cost close would in of build them just it how envision that dollar cost all year, parks? would but X parks, just the in to you of mathematically out money total, much kind what terms But to those in a

Curtis Hodgson

board, at $XXX in if million. probably all looking everything Well, develop the that on have we drawing were we're we to

Now or Well, about we got from? we're that making come to find million some $XX apparently, money to place $XX million where quarter, does put a it.

shouldn't it -- be through it's So to hard grow organically. it

As far experienced bunch pretty be must a of to to develop, we're some as great because people. not it money the availability providing that

chasing we that cash in not I'm money there. have lot know might or of [indiscernible] product, be needs but there's much of we developments money is chasing don't any I finished So glad out any way a real

DeForest Hinman

laid the maybe That's units Okay. owners, helpful. and customer really you just park then point, And then for falls that groups some believe cetera. demand very big from some retail hypothetically, et dealer the of REITs, big picture. At the X out

high And mean, of needs? over do levels of this a you where X levels to own time then of envision is high their transitioning period plus parks very I years having thinking you're to production that, production. fulfill of said X these about our or

Curtis Hodgson

Walter's Jim Ultimately, going and least Pulte think Homes. it's another homes has be industry at to year. I being stop the Well, start being to

providing at place unless table been to have boutique for on by kind of We the for that that sidewalks industry. the forth. kids and a that places be more industry for the years pounding major and a to and And I've play homebuilders so the were cars build subdivision integrated, with competitive so becomes

doing. we're what that's So

doing. to finished We're a a more approach we of consumers we're whether just more the to sell it rent now, it. now and trying be renting Right integrated trend give there's or houses. big we what And

you per rentals. historically, market, But today's in $X,XXX month. think homeownership So $X,XXX, is renting about for $X,XXX, preferred these things to

I because if their but the dancing philosophy you in to build know Legacy I'm own did I lack mean how young. you think of don't do-it-yourself of know the don't anymore development were -- cardboards like your user question, So the around fixed when is end people of I

them more be to I industry. got give be think to prepared just you going a very package boutique to we're a complete or

comprehensive, a than basis, move. We can still but comprehensive and going got we The philosophy or we Pulte a be take our heads-up to sales true relevant. home bottom more all dollars more rent and more and on it with be Horton that's to is do compete more selling line and the to We've builder. be itself. house comprehensive complete, to that We're more can the whether is to just like more dollars

DeForest Hinman

I'm do remember I and homes. Walter a Jim I but guy, color, appreciate that young

that you development sense. to maybe pictures are to makes sense I terms to where it the guess more accomplish. just does something know, do at something of deck shareholders visualize what make some So an doing kind talk we on, help some point, that's you're about and mean in a investor educating guys what of I is you projects, trying that comparison. good people

Curtis Hodgson

We Investor department. in opening created our Relations

You small at a in Relations, in weave turned grew not we're guys I basically Investor environments develop. But plan that but out we starting succession XX, -- We very, to XX rural figure meant Kenny very recently. -- in environments. very were farmer have can that good that's factor a I'm both to up do farmer

the well. But make we the doesn't people how while is seeing not shine. to know will know in that's you're what is, do reports, show course, when do but other sun in we which And where And also up. to import really shining, our sun what went LEGH hay only of to financial the

And probably will weeks on in we best week the our can comparative had. stops then you'll we really industry, the systems. we've be value see happened what a don't week. it sun if a was But our with I but great shining, basis the perform had better know how ever

that long-term we've a in on lost more double-digit are made oriented investments. always you since of I mean, return money. equity been never those than your We've ever we've business. For

events years. negative. and be making of I'm about for so I So were several it I I sometimes, had point hurry could that could just churn up to Like the -- don't prove happen, wish been not worried I this

DeForest Hinman

you shareholders, you're follow shortchange can give we in and certainly don't some mean are have because... want would up Well, and describing we I you what guys I I guys doing terms to yourself. that of ideas

Curtis Hodgson

about the have of McKinney, talking it we Hertz choice be your where retail mean, try and keep wagon. to questions more know about the fall talked future, extremely downturn, this And most with book. all doing it. I've that is between things. talked comparatively, if going are it, done do do are It's had we'll If to time, that's about this we're a ratios talking definite about years. you We you I talking fine -- and in then if -- -- daily it's there about these downturn. because of keep for I'll and my but on asking it. we'll for I well we questions daily can within we leave talking We're of doing right just We'll some kind transparent on these

lasted guessed from months have analysis. I that COVID . would who have [indiscernible] would have X mean certainly didn't I a that

So have I would our that. never been been wrong has But on better. backlog

Our margins are good.

Our the as relationship innovate. continue and week we show that our are mind-boggling comes as We're in with things the at good, this is product customers doing to on. far

DeForest Hinman

sense, the of circle a good have and more. team, the you Okay. back calls with strategy a I'll learning a forward to Well, keep I conversation. look The I and appreciate detailed we'll taking and lot work. makes

Operator

Brian Olcott have Partners. we Next, Investment Glenn from Square

Unknown Analyst

you was proponents This I guys goes know to you -- to have all when I'm in it Cavalier back time This arm. the you as to guys strategic its wrote letter years that before it the lending with you And shareholders sure are goes a I that, lending. were view through of a know selling I the entity question. all asset. way time back at huge your industry.

of I structure return terms margin that preferred the in of the with your with in wanted there's liability? the then part is that terms you hold to do separate? split that residual. incentive know dealers of Is plain English back. that on dealers, Or see that if you And gross dealer could walk I third-party through that

But And that's you to I an particularly is I spelled misunderstood. K. that I think guys mitigation me see loan side guess, risk they structure on people, it's want it's can the I to out to through risky walk because just you do incentive I little view I if something side? just the know in know bit, is interesting that a and it when talk the

Curtis Hodgson

lending hitting one X arms have them. significant and We you're on of

owns if to retailer, of an through he financing, backside us, he profit him XX% kind to then and participates of sell give we upfront, he himself -- his of the of XX% retail wants we So profits. financing avail then and independent

we've dealers. of arrangement. worth So that out arrangement over million money far, our that that meant has to checks one lost has participation in sent $X No

mostly an period. Of this for course, been upmarket it's

be great analysis. not might it So

payments. down real get We

because X-person what down of their upside one's right that We bilingual is delinquency low. we and have on rate collection ago. importantly, they now at have that our is no credit And an team analysts that an bought years more do job X part so all-time

might it, have is a X fact of In they they lot to times, want break whole that product. which it replace certainly to

retail the range. yield or portfolio joint in paper yield somewhere to $XXX is is of million of XX% team as been to venture the and So ever XX% existing solid now to it's

are to debt. able willing the is are on the and where We end the user of in internal selling rates ticket of probably we world biggest the item that rates lucky pay XX%, return XX% XX%,

and not and service the So we that the on retailer. make make make we then the on margin a a we product, only do product,

bottom So our to I'm not brings it it's not our but to business. because earnings finance retail line significant -- fact in the because know, that what sure I going tell the I'm that's number in we're of would you a

Operator

call And turn there Curt are I no further remarks. closing questions the time. now at back for Hodgson to this will

Curtis Hodgson

notice more appreciate. difficulty Well, got and ] for the we appreciate thank us. probably being most had the on off get, call we the for earnings The line. the [ following much know you we there we've I faces you I better new I give didn't questions It's technical that, some I all all attending. in and on you are.

I earnings all. another we'll day. have X in So months. Good call you appreciate

Operator

conference This you all your stay of now Enjoy Thank rest your safe for day, concludes call. today's disconnect. and you participation. the may

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