Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Legacy Housing Corporation Third Quarter 2022 Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers presentation, there will be a question and answer session. [Operator Instructions.] Please be advised that today's conference may be recorded.

I would now like to turn the conference over to your speaker, Mr. Executive Chief President, Bates, Officer. Duncan sir. Please go ahead,

Duncan Bates

Duncan Thank and President today. is joining you. morning, everybody. Good Bates, CEO. call Legacy's our This Thank for you

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

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

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

Kenny and President. will and Curt for Executive our questions. Legacy's Chairman quarter today. are XXXX on quarterly We and our future. I then discuss performance basis Shipley, updates. provide third Legacy's earnings call today Vice quarter I corporate over to Curt Executive in look discuss I a additional Hodgson, to We will our calls consistent and by the excited hosting and results joined the forward am to share Co-Founder third turn final business comments

offset million decrease in implemented resulted third shipments increases to by third from Net the increase year, quarter Georgia our X.X% Eatonton, in the $XX.X revenue The over past a over facility. from representing XXXX. increased the quarter, a of improvement price

homes to slowed shipments delayed consistency quality we quarter, third Eatonton. in and and improve production manufactured the the During of

meet delayed are homes to to XXXX. current shipping production now the production exceed historical levels and early plan in or by our We addition

quarter changes benefit revenue, process will moving forward. our Although our and the business third significantly this impacted customers

million, to for million continue Both was The from extremely quarter from large SG&A. on quarter volume This by of an of seven cost well. slightly perform and the XXXX the was increase for increases from third XXXX, loan the company's Georgia an of other payoffs third primarily operations down by commercial XX% the portfolios due $X from increase retail of loan lower of the retail quarter and revenue commercial third was lower was loan to third the Interest the XXXX. $XX.X offset portfolios revenue, and and price sales quarter XXXX. since the higher increase in quarter, Income commercial of third from reduction portfolio. driven

We take plan firm costs inventory our quarters. price to over to next advantage material of on continue raw the few reducing while lower material holding

will increased incentive costs, focus and fees. also and reduce on SG&A professional to salaries due We warranty quarter up ways this to compensation

$XX.X At million quarter, of was months. the earnings repurchase income capital a the to increase of of quarter quarter grew third this strategy quarter share increase Legacy's We from allocation book important per XX.X% tangible Net end implementing value for an the a the over $X.XX million XX XXXX. XXXX. Basic third a per delivered our $XX.XX. in equity third on took last $XX step by the stock return the quarter, was program. share in of XX.X% per XX.X% Legacy third quarter over of an the share

consistently drive long-term will repurchases shareholders. for uses capital our against to other stock value We weigh

provides Driven XXXX. line visibility of a ended drawings credit. well on cash the facilities we by and with position financing, million Lastly, quarter all net our into backlog our manufacturing strong in-house our cash in is $XX.X across no in and

will investors multiple integrated the recurring earnings of model with business economy we to streams. value slows, see believe the As begin our

in opportunistic moderate. our from focused long-term plan are asset be prices to broader growth industry as We and a standpoint

I'll the back for and Curt? final comments turn to Now call Curt questions.

Curtis Hodgson

for industry. year we back more management Thanks, on any and been so much I'm had be nice tasks call. on year us familiar auditor not challenges XXXX time distractions probably products of with than challenges, entirely full in It's our and spent We has and call. business our on enough regulator this to challenges, doing team, running this earnings entire account administrative that associated including too We've time are our an this Duncan. what selling do. those of

I SG&A, products, where to reducing etc., so things line, land back some we get is focus. new this mean top quality, the to forward, development, geographic and grow managing business. team that have I to many opportunities. There management in improving can our want manufacturing are ways and Moving we inventory, our improve multiple bottom

through the business. and on through pray that are I plan the we're Duncan growing that Now and distractions, I with to Kenny them, improving we work and

strong, solid is backlog as optimistic backlog very probably we're the Our as industry, anybody's in XXXX. about and

Duncan. you, to Back

Duncan Bates

prepared our concludes the that Q&A. Operator, Please begin Curt. remarks. Thanks,

Operator

we please One [Operator while the moment compile roster. Instructions] Q&A

the question first from Capital. Lake Our line Mark Smith of with Street coming

Mark Smith

to Good call have the back you here. on

just what What you kind prompted the of for little in through bit slowdown and happened question a operations guys more on Georgia? First can walk is there? focus -- me the in depth

Curtis Hodgson

to Duncan, do you want or you do it it? do me want

Duncan Bates

take you Curt. let it, I'll

Curtis Hodgson

No, you take it.

Duncan Bates

for or happy to Curt. go take All I'm right. it it,

Curtis Hodgson

who But of we more supervising Georgia quality from some getting so I summer having our better a the I scrutiny was Georgia and progressed increased we regulator And in have a and production challenges. decreased perspective. challenges more obvious Yes, were So, that there. as due got -- had the regulatory yesterday just is and probably Georgia, back State to in

third our private time, and from half and of It shipped part of production have down don't rebuilding use of XX% with exact in delayed But quarter. slowed been was we regulator September IPA and at of to we of October. concert I inspections it. of shipping normal. quarter there. our that shipments And metrics the processes make as the Georgia the probably has to third while the for then. even normal the Significant about what sure systems. did September same July months training we shipments for the Texas August were and were houses somewhat Georgia the product our in ordinary we In August quality in

good probably with another have XX news restarted The the [indiscernible] today. is shipments

a couple to houses hundred have We almost ready the in are shipped. of be now yard that all

Production this by advantage expect day have in slow down four three our fourth we to So, about a -- a before pretty before, day is the in which have up decrease is better-than-normal other of about XX% But normal our to levels normal a will yard to probably production five commerce Christmas, from quarter. per Georgia the even Georgia. in actually solid -- we So, days. day six a and had five, having

in production, mild but decrease some Texas in increase we So, a had increase, production. Georgia production, Texas in an

of some simple. I'm We Georgia options, kind confident some -- training personnel independent hired we and spent money that deal, spent our keep some maybe consultants. money, decreasing whole retooling we've it to trying

believe is [for] backlog Georgia. solid, Our in XXX backlog I we're

four literally almost even backlog a per got deposits. day, Georgia orders, So, XXX-day we've in have all pretty that solid

changing October, we it. lot So, way details we it's a almost bottomed would been a on been out Haven't basis. been probably our working of daily bottom. feeding hit of because early I say

delivered still but through, some some of that the warranty remediation do issues. on we're products have that do to have probably some we woods, think out got I got

because out up the didn't do to to was expense SG&A warranty and your that -- field Georgia. in have mostly Mark. but expect hope that perform our we to answered in go had we So, I question,

Mark Smith

is that helpful. No, Yes.

like get of kind today, look as about to you at labor you've of of there? And to today? if As are talk the kind you even able cost seen need pressure would you run kind and as of inflationary what then and we that you people labor want efficiently

Curtis Hodgson

be Labor track we continues -- a challenge. to per foot. square it now We're

of doubling all-in. houses approximately now labor know, don't we on square more wasn't it I are build Our foot as higher the wages. people That's using running per all to so a is number square it normally labor pre-COVID same a factories up pre-COVID two slippage. productivity $X and that did cost $X of much because from foot the at that was, We're

have but caused how inside know year. I have get slowing close We down, not pre-COVID industry job steel's people slows carpenters days or is factories. peak. the are might housing the those a than, be the And to had regular quite say, come and tools which that's our industry this thing, levels, These to XX a don't good it, down from its use to down, that XXXs know in more our applicants today, whatnot. last lot Because by housing if lumber's or in housings a XX% the down last as

at labor. our that real, should So, beginning the if slowdown to up help It's with just housing show us is plants.

Mark Smith

just question portfolio. the loan One Okay. on

that bit there, MHP portfolio, to little we sequential surprised we As like saw is of a good Anything speak floating the but in looks it rates the this look there? that notes, to at given rate. were growth squeezed a just lot me which

Curtis Hodgson

on all We have weren't up, think, going had I we even competition rates had to maybe of not give that just has move decrease price our But some price took position for, rates. a we one us almost discrimination also that. single

a a it So, whether arm, increase I had month home actual year six XX% gone and gone think maybe months the did through decrease retail as it mobile costs whereas had you've to house or literally or to from down. today X% price if rate cost even up buy wholesale, or the competitor same parks a corresponding month a our prices product per finance have it's our ago, if has you've per even ago

not hardly do negotiate long power some don't -- our So, customers intend up, slightly do we capital are rate you're last some than we we know from were own And to using what but to be to we've able away money. they year. seeing on taken will any rates at -- raise I rates. that how customers were is our have don't better we We're and bigger this. rates, big borrow the competitive a to us borrow of

pricing to what they've that's accepting strategy. exchange for So, done us in our

that than to backlog deposits. in We backlog of not probably park have home we're selling backlog like half on. XX% we hand. deposit a actually our our have has of It's Almost is probably mobile without deposits more dealers

Mark Smith

talk that the next you kind and put Okay. as of about just Good. the for you're far then but the have, maybe buyback, other months of at of question the can guys would opportunities uses you work. looking other just XX, And XX to what capital you as announcement where me. last Like cash

Curtis Hodgson

Duncan?

Duncan Bates

so Yes, I'm continue can attractive We formal cash our published on growth business on the that this not fairly produced these six And at happy tasks return. point We've portfolios the We've borrowing over pumped caught one. historically getting moving we to of that portfolios. do months and the the plan loan. the all haven't that take past up focused this we're just been where back to administrative filings to at has so into loan are self-sustaining rates forward.

and to industry, and certain I'll together sell around want something sell, our We what we and more manufacture Curt I temporary have -- could like are tell that you temporary be to financing similar started There opportunities and classroom figuring our or have in. products that components else we the have out been there's in we industry working geographies that into can business. see getting that

I that our would -- got think financing. we in sourcing able but And to geography current with really interesting these with trouble our be now. hitting us targets businesses that industry, we've we'd some have and our a we're in So, improve put

need capital spend on would into we're land new something time I we The the Texas are calls, earnings Curt that significant a end these in homes the for that actually know I geographies. of get that And with is of deploy even position head more mean going various to upside. to are pretty them, we've to compared And on Curt to lot had that's -- on if So, and in significantly the year. you communities trading new at stages there's where got that area, this the as significant slowdown, XX a prior I we and look development communities. products, at touched

against share So, shares buyback price long the of to weigh currently with them we've it got well. the way saying a we're is and going of a lot in where place, program purchasing as opportunities, but

Operator

line Tim Our EF Group. next the of coming Hutton from Moore question of

Timothy Moore

and a lost Georgia to it Curt about sense because mentioned area the bit Or of a six backlog give the seven backlog? while. Is Can is the less us some slower a overall delayed got units. months possibly of revenues XX Georgia you from production to probably it of plants? Texas for

Curtis Hodgson

that doesn't six -- and don't at of trust had That's that those, but little conservative add have when I I orders shows. think I -- several just shows. months. because I Texas backlog it's think mostly took We anything a deposits. if hundred couple there mean orders. was bit a you we those

see I quite And wood, think we think anyway, that orders we for. our natural with spoken XXXX flow knock frankly, we're well way pretty the on through can late -- spring. I probably, to we get have

Timothy Moore

September wonderful One what Great. had That's around color Georgia was nice October. facility. even happened to I It and question to hear. the in about was follow-up August, the that, get

have got a If it was put pushed could revenue number units? of the quarter mean, that, $X sales something into fourth you XXX January? I and that that on like maybe been million

Curtis Hodgson

arithmetic. with good pretty Well,

than would in XXX in the at per quarter. third least is wholesale we XX,XXX Georgia ship number inventory. And if the of revenue I in quarter we XXX your up per pretty them fourth will $XX,XXX floor we think that associated close, is think floor I and XX,XXX, with that's about easily stack didn't more the

going four be or $X be would than it's But January, be a day, our will probably in at the normal. to fourth expectations. by five lift million we'll and back So, more hopefully, revenue back to sales

is it places the it making the and because we moving most could to is one obviously, at Q earnings quantify didn't were look announced value quantifiable. it was we're We But quarter from as the it line in wasn't we in this We production blemish there, we that this it because our bottom by XX% never -- significant. in was because of end, Now error, and don't time. a other the back. up last book increase But get that's there. company, from decreased in profits And we another. something is during

So, three months of XX% deal.

that three we back. lost year, get XXX probably have will So, call have we day will the lost XX for floors we it, for per days, can't

that revenue is being So, lost.

Timothy Moore

helpful. putting really around for Thanks That's revenue a that. estimate

-- compared provided on understand compared think I the and -- that just about labor some I people trying I know my wrap shortages just to What plans point was maybe the head to labor. how today situation better now. commentary does the on worst you three earlier in it a there situation But was Worth shortage the is and this mall improvement you're shortages. don't playing Commerce whack most year an year. and sometimes I it's really Georgia. labor when overall was know when earlier a Fort if in from the this

Curtis Hodgson

my Well, gut this is feeling. just

more go than that think continue the the expensive, to is I recession. paying than I get even before. rate we not if today No, we less we're we anybody into labor were now X%. situation mean, will unemployment were

build people a labor that to I work generous, do we problem. is less -- to think be want people have and less [that more those houses. We the]

down. up So, per square -- and go foot

will offset it so, And [indiscernible]. be by

Timothy Moore

Okay. that's No, helpful.

not taking and that kind park more and lately, anytime have don't because you Is are competitors your really still there your For price firm I to by all it's Duncan increases decrease sensitivity Is operators you're holding soon? of you know relative? it. mentioned on confidence pricing, why prices have homebuyers

Duncan Bates

the real this financing that not is also the importance really rates Well, that that's prices I about financing. of the the the business. for haven't something the surprising And because decreasing reason found we on is something raised

industry certain it's as the regions, strong by -- and across not backlogs geographic really near the as they're at financing. look you but driven if think I certainly in-house it's in ours,

anybody them. if else, not negotiate less And to to room price. that person the finance financing able They from is so, obtain on have we'll

Timothy Moore

give can stand us can about update the kind you That on Bay progress? Horseshoe but already? on over development you systems can does maybe you to maybe you with great. just and you this have If color helpful. And give on an that some of us some were be into if get land water deal where near up would will a color maybe plan That's provide the homes earlier, And year? any and sewer the Austin sense. makes next And that, that it on happen

Curtis Hodgson

one. that I'll take

properties Antonio because these two and Fort during Worth We then of Austin was in Horseshoe Texas, in in the then have State in of the total Bay. been The three breaks area. essentially involved area have management a the area, San so Fort distraction in Worth these the three two And Austin, in seven in dormant down issues. in periods other

$X have Horseshoe we million a so very I are Bay. making slowly in in investment far about say progress Horseshoe We Bay. would

couple it, a the it. We focused production so in been quarter houses we adding we haven't slowly but really haven't on of needed very are in to the

we think I about sold four.

opening in Falls. help. Falls Marble open been to three nearby. there of city Marble lot a that sales getting lot That are sales the We've trying We will through years

XX% that building we're think entrants the this should through. the I of We're entry and way week help.

have the the project, is the The county over people, Valle from people, water which water electric the units, Del treatment X,XXX virtually people, permit we finally pillar the need every we people.

rough get difficult part construction have need and think entitlements to than there other So, water to good been a there's in on that a kind advance, we say, been but of XX% it. paid how electric probably a complete, that in We're in it, money. or anything I of prepare you works. the The roads could getting per it us of contract further on funny politically, well, don't part take contract, it. has will send They we eight just good could months with

nature contract. We just are gambling. So, $X.X nowadays. the the things sent without a even That's way million we're the election of company

progressing we're there. So,

the we're don't need selling what have on Xx what home moving we now that towards [tune done need, Atkins. all paid one we'd property, the a San because Antonio, idea better proper, small pretty that XXX titles times of] nice it. have appraisal We I in play property to one getting we I've -- the over property. it selling It's Antonio be in we a for I got we're we land. three it with and that for off entitlements of lots. an mobile into The on that's know San as the opposed and developing in

decision that's that fall. this probably a So, make we'll

own Texas there's those the on don't other seven update besides seven. We properties. properties So, the any

Timothy Moore

environment vertically just up maybe that U.S. vertical there was That average at with, drastically products terrific. question your single expanding beefing And vertical things sense is you? housing your don't get you countertops. two to compounded conditioning XX%, I'm make into wondering, more and or been and can it's up, shortage to That's XX% unique some the possibly affordable specialist around building the Considering that hear. integrated last out the in family very take last or to such this helpful advantages jumping on? you interest advantage air my would more Do advantages. economic an rates. integration really know, higher and I there's up, use of of integration like anything that's housing years those think price Is

Curtis Hodgson

contractors, XX at mean If -- a A as for yesterday decreases, one But that quite get our of XX we're frankly, when of was in below industry. business in cheaper by could business made looked into. those people. anybody it moved to to other it the manufacturing, that. us the anything, Georgia, houses what is. cost were independent big a if be during in think little I've these pulled we the do bit sense cost we than vertical trucking it we but I pretty as is that's at before sheetrock But

we particularly say or be years much which through it, than regular the is you, our of countertops, better if than whole discipline you'd -- is just to we'll may retrain normal a we on. have department many say, in the could other have channels how position to caters probably it like purchasing take I'll in I have a So, last better ever to some slowdown, housing buy

say to price used we'd just to -- what We it send year be hear don't we a mean, is. ago, us, I the

how we've to to building, building inventories the buy competitively. back got supply of to get things and with base Now as

through will mentality back it please just I that could thing. going think that get to everybody of It's a That's you, me. just ago fun. whole completely matter. can to is than you different or Kind you, pretty for year it would opposed you was eight ago to months as

Earlier furnaces refrigerators things to without this with sometimes shortages. being not having did we without were We year, have there. ship dishwashers

we an put we don't eight the six have single home months. entire or all in last over have that Now a mobile supply. shortage in a That's company. ample we the Everything

Timothy Moore

know it be in hopefully, nice terrific not to that's it's month. system see bottleneck nice that That's hear. That's anymore time stays enhancements accounting reporting and a the to way. to the Well, and been this on

my So, I questions. and really appreciate it, concludes that

Operator

question the coming line Riley Our B. Rygiel of next from Financial. Alex

Alexander Rygiel

can quick, demand the here? housing. uncertainty there's term. a for stick-built about at got slowing over rates outlook intermediate We've real new sort that Curt, address got environment macro increased We've have you Clearly, the pace of mortgage the significantly. fast economic very

sort you how your can backdrop, impact that in with Legacy maybe has, that could, or of talk strategy? So, about

Curtis Hodgson

I tell Alex, right. me. you'd All hoping was

site not competitors. hasn't exactly even X.X% industry, what's at happening. are people in don't our increase among or know want builder much rates. buy been financing costs, our homebuilders to In houses mortgage there because suffering X% You The

market. to look be that or think to rates, XX-year I but don't down continued starter there'll mortgage in or back I six -- and a be you're with up a going Texas, today's sector fall overnight. happen interesting costs they're for disconnect be And better part months you a the in mortgage sectors. will to whether of site year ago. going know what declines house at see make from $XXX,XXX significantly will go That's boats not don't the they it to rates, It home Austin, or to where of manufactured buy to were So, rise want the sector. the of all between the home if [site] I and if home builder not you tide $XXX

is the a suffering for I to housing going be while. market single-family So, think

into We replacement scraps looking we're opportunities that looking our picking below might are team and have have we people up at cost, on some at that.

selling going is of to be below future. there not-too-distant for So, in things costs replacement people the opportunities

does impact the Well, we board. necessarily us? our about think backlog. I that that's talked How don't healthy Alex, across earlier,

are competitors as financing. us Our They five with working week. integrated not with not are necessarily days a

I difference. think a significant that's

So, they the seeing it September some yet But production backlog. still are have, their numbers of up, not year-over-year. believe, easing is in industry the as the I a at in late as third through. Statistically, XX% October we last record shows and November is way

going what pressure fairly sectors. there's bad be for think in to to one, we rates normally, all is is higher build. there be But are This recession not I if going significant. interest

a time and knows. the were but that long this You and was that all-time the going like it back mobile when business. home that's to go at high who rates be way great I'd X%, same around, a mortgage I data in the we to it's in XXXX, year provided way, think

can We we have get We We are if smaller nimble. need don't of lot a commitments. to.

increasing We have will borrowing value a enough ever I'd to break if this. surprised ability cash buy our during take all opportunistic. anything be book and

committed still it true competitors year future. ongoing I true foreseeable way, not are, from it put digit that Legacy pass. in an think and be ever of you'll every value don't come more to to be I will think for increases the think this that model in book principal that double our in I may some will homebuilding don't see let's

Alexander Rygiel

$XX of quite I like $X drill a deposits, sheet quarter. a That's the on Duncan, up then end $X.X bit customer at down looks of from about ago. the sort the as or here, third and million the like year was million balance a million balance sheet And balance it the

what's that changed that. you visibility there? probably the But have that amount that in buyer? Obviously, equates you understanding in provided there's deposit greater has Georgia or whatnot? predictability by of requirement homes in of the to also And closing a the some fair So, increased that sitting are yard

Duncan Bates

Georgia to homes for that next contributor. put homes my large the not a significant of to a the deposit That you we're we building that the on we've amount have also deposit increased And may to back very exact I Alex, for a To customer have us said, Yes, actual increase. few build get amount. a down significant over knowledge, years. is

So, big of as piece I think it well. that's a

Alexander Rygiel

And independent sort I that's mostly either your sales the channel as then in there inventory of right year-end, into now? dealers. came look third sort consumer And you elevated activity down believe lastly, inventory is some that any some sales of consignment How or purchase demand? there's of go in slowed does of Curt, weakening the Duncan to out risk or of quarter. because kind

Duncan Bates

Curt, do one? take you want that Dealer to inventory?

Curtis Hodgson

inventory, Are was inventory? what distracted, a little -- about finished something inventory. but materials, to I Alex, of do talking kind with what raw you goods, kind of

Alexander Rygiel

that's No, out in independents finished goods, finished the at Inventory homes channel. yards. in the channel, the though, inventory your out

Curtis Hodgson

inventory, stores company-owned relative good have ample finished the sales. across the especially to I board think

put up including I more filling us. think brakes with company-owned the on probably stores everybody has inventory,

materials, look inventories. with to side, impact the for mean, for adding I I'm people. bit by a little high inventory stable, of So, to raw I raw touch a in people On but on don't lot the look maybe be their any I positive materials

stack more finished goods need. way beginning statements, all got than side, and up we we being I inventories and in all could increased wasn't raw inventory we materials including is crunching habit which of at glad with our have we showed going because of to everybody inventories of our just pleased on buy materials levels, to it think that distribution. are inventory. And be I financial the both the

are I'm almost grips in but you the have growing. in increasing. macro near high And So, haven't to level in six I are months think talked I would on that to board that's -- agree is and general think going the in the that inventory or that I sure inventories with across a general come economy levels future. in think very so, I everything to

So, but next by something raw will period, be less material significant. in the our hopefully, we're inventory very reporting conscious

tend so maybe increase no little finished goods the to inventory and of now finished year. and bigger inventory be end or Our material even the raw will bit, down a between either

Operator

question our Glenn] And of line next in question One moment [Brian next our the with queue. [Alcott coming Partners]. from

Unidentified Analyst

first you've this delivering your it you your like been for going do. on to both doing public sounds whole were said and what you you call, to to Duncan time. a team Congrats long

Duncan Bates

I been Thanks. months. few it. appreciate really a long It's

a team of One a about in of that year's members reminded in XXX me we've proxy filings done our public days. worth

past we're -- it's get excited So, to point. this

Unidentified Analyst

job questions. I all have very I first guess two the the it appreciate questions. broadly. I That's Yes. keep nice just to efforts. on leadership And I hire quick. try is have level. I'll the Curt, awesome. two the at

-- you equity. is generate you You unnecessary When look strictly up tad. million. returns It's past have a how an growth come It's years, at number. in assets a is which over XX% right, metrics deliberate company for is like when you strictly down your impressive the it's jump, that balance that when that's big and on organic If earned, a equity, is leverage that. you byproduct a run, got funded put two and the $XXX of Liabilities don't company decision? sheet need the obviously by grown have

that something just about quarter? happens something that And case are. up that over level? Or we it's is guys talk you geared just happened after a opportunistically? from So, in here top-down Do has quarter

Duncan Bates

want you take to do that one? Curt, me

Curtis Hodgson

Sure.

Duncan Bates

anyone. in and And it frugal Legacy making tell fill around built you think than I not Curt longer has in. it bust run if you're and extremely This conservatively All and business they've by gone right, and that always Kenny. been have they'll extremely for and have the been have always by the been you office, saving continued industry can and walking

And a approach. think I so, it's conservative

From anything. years think I potentially because make next industries the for assure surrounding my of a because and will not going having prices excited opportunities to this But attractive here our sheet. balance overpay investments we're slowdown conservative I to couple in because our at about and standpoint, of there in and you be out nature we're go of that industry and can

anything to there. Curt, I'll So, And add? stop

Curtis Hodgson

of see equilibrium different in and rather come not -- a think do reached lot I we we've grow We'd add. little that different of of up cash don't I you'll a we No, and that unless a what leverage. use kind investment, position there's to think do point our think I our industry that's the bit want. product, a with

use at that deal that find us So, -- still of allows or is something we're we're borrowing money two. some a hoping to capital plus to SOFR

ago, borrow that other with, but deals. our we our It's about many familiar based extremely time which recent buy on was yesterday's this So, a opportunities. rate with capacity is is there we'd a just hasn't not to production that been like just we're acquisition -- integrate to the year chased ourselves There very low, metrics.

If base that have hoping acquisition We're If are occur, There's for I industry always can were cash grow, like to to either be Maybe There growth deploy doesn't not be. you we where will there but do, tomorrow's may look maybe, been. powder they SOFR to make could priced just at growth disintegrate industries ancillary better have feet and really on with just two, plus going things or it still probably and opportunities do. than things cost. above we if this which occurs. right go. we'd we replacement in that our But it still metrics, is now. laying to going think we're if our organic we'll

of sky that not I'm opportunities that. to falling. is the there's I plenty think mean, pessimistic, do I

in on I find think we those an I make could think invested places of will. XX% this there's plenty if of X%, we And capital. to X%, era return some

developments I now. [on deployed capital. worth with that lots there's use finished] to we're would harvest. cool seven probably great a be think more that million $XX in, mind in because that. to of no that of going to two a capital be in we a $XXX that's basis can These years, find million All these at three want and things I'm all that be doubt and places few to we're doing my or put hard There's the are we'll looking to

Unidentified Analyst

That's helpful.

third-party provide you're financing basis. tight short opportunities at into space your -- guys at wedging it's little level up, look it, you that one floor guys level, too too to guys so a peers that thinking Or brought that the contraction still but and dealer was level you dealer just the floor and of consignment is network apparently something the a just a was opportunities, your that see And them. the is financing. One it's at of can the was plan and own plan when about? not But alluded have on educate you term? it this asked at because to and Is necessarily there bit, you in specific just me, there stuff you other industry-wide and a crowded

Duncan Bates

take Curt, South business and of long over in And their business dealers the that. financing years. been in consignment mean, to we've financing for Kenny a the have with across a I'm the lot put happy I time. Curt

have and independent with going to bit network like we selling industry get actually a us. consignment We've an finance through the that share so, them been where more our them where to a homes little give really consignment And financing we homes a business can of sells they of just change dealer to a and standard loyal agreement our them. back we're versus

a that And financing doing quarters investors no we towards over shift to true couple to like we're as to well a so, next that's and with our of that. change sale will takebacks the continue on we're way that see

So, I'll stop there.

Unidentified Analyst

who can't you a park home getting don't and a lied, There's I in of I salvage them oh, have you've industry, possibly term. Duncan, learned terms you a in XX there's helpful. that It's and necessarily model. alluded and as aspect time. I've said, to That more it's Dallas. business that our you That's pejorative average totally and the outside do not Okay. And that's future. seven mobile always something build buy mind. the may They in It's outside sites one I there's it's question kind auctions. But of those a guys years different nimby vehicle nimby from the about company, third think And I say, And thing struggles, there. based is live to person a of even is I'll a I view the discussions. It's ask people the companies if proper them talked a -- fun to over been permits -- guess industry. of don't

of at they seven, takes you this competitor, eight some fact other wherewithal business, permits. the and one other competitive it build that with a see of what this that region. besides yard, and cases, if presence in with, any replicate you years given national attributes look network a a advantages in little sheets dense in that Legacy this presence balance a them their you required thinner a bit it's but is weaker And are have and something that of six, And of to aren't in and the with getting to or terms similar is for to dealing pipeline especially ones unique, guys it's terms tough not

two, it's as the that where Do it having you see guys finished carrying question edge product? to some sheet there three, do of to financed you four to a regardless see balance -- well? wait years of in strategic asset your the is there through that on it how way you're sort Is wherewithal

Duncan Bates

Yes.

I land the is is in done I certainly put in And that to them. And and one careers attractive attractive community get business homes time the Texas, you it. takes a know Curt largest headwinds actually you point on have where of can mean do it this think we dynamics an certain ago, case. and for this entire their years and investment. business it where make to and the long would Kenny put that well very areas acquired

that. we'll new always moving forward, the try lookout on think And accelerate we're I for to opportunities.

But we'll thing have that to properties do -- do time of want communities. we what capital from dipping large continue though toe and that term. my short with institutional we'll investment to firms there's I these other been think entered factor this that's thing and space. really around the our even heard other real lot flexibility the long I've in And their The are in a -- developing here, for helps us estate

have space, which at all, the think hopefully, -- I people community I more But think and come homes. moving as we're you forward, have there And capital if trying ahead so, still the about, more to something a restrictions it's up get we'll with put that talked ease be will development, to our places challenge into it's that of. have --

Operator

call back any would showing I'm Bates questions further time. And to over Mr. the like you. to at remarks. closing this Thank for I not Duncan now turn any

Duncan Bates

call, on all to for this look a No, and basis to I'd quarterly hosting like in thank say forward I you. would future. our regular Thank joining is Great. we like the everybody to

for your thanks So, support.

Operator

for thank your gentlemen, and does you today's conclude conference Ladies call. This participation.

may Have You disconnect. now great day. a

Legacy Housing (LEGH) 9 Nov 222022 Q3 Earnings call transcript