Legacy Housing Corp (LEGH) 2024 Q3 法說會逐字稿

Thank you for standing by, and welcome to the Legacy Housing Corporation's third-quarter 2024 earnings call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的耐心等待，歡迎參加 Legacy Housing Corporation 的 2024 年第三季財報電話會議。（操作員指示）提醒一下，今天的節目正在錄製中。

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

現在，我想介紹一下今天節目的主持人，Legacy Housing 總裁兼執行長鄧肯貝茨 (Duncan Bates)。請繼續，先生。

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

早安.我是鄧肯貝茨 (Duncan Bates)，Legacy 的總裁兼執行長。感謝您參加我們的 2024 年第三季電話會議。Legacy 的總法律顧問 Max Africk 將在開始之前閱讀安全港揭露資訊。

Thanks, Duncan. Before we begin, I want to remind our listeners that management's prepared remarks today will contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. Any projections as to the company's future performance represent management's best estimates as of today, and Legacy assumes no obligation to update these projections in the future, unless otherwise required by applicable law.

謝謝，鄧肯。在我們開始之前，我想提醒我們的聽眾，管理層今天準備的演講將包含前瞻性陳述，這些陳述存在風險和不確定性，管理層可能會針對您的問題做出額外的前瞻性陳述。因此，該公司聲稱受到 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述的安全港保護。實際結果可能與管理層目前的預期有所不同。對公司未來業績的任何預測均代表管理層截至目前的最佳估計，Legacy 不承擔未來更新這些預測的義務，除非適用法律另有要求。

Thanks, Max. I'm joined today by Jeff Fiedelman, Legacy's Chief Financial Officer. Jeff will discuss our third-quarter financial performance, then I will provide additional corporate updates and open the call for Q&A. Jeff?

謝謝，馬克斯。今天，Legacy 財務長 Jeff Fiedelman 也加入了我的行列。傑夫將討論我們第三季的財務業績，然後我將提供更多公司最新資訊並開始問答環節。傑夫？

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

謝謝，鄧肯。產品銷售主要包括直銷、商業銷售、庫存融資銷售和零售店銷售。截至 2024 年 9 月 30 日的三個月內，產品銷售額與 2023 年同期相比減少了 680 萬美元，即 18.3%。這一下降是由於直銷、移動房屋公園銷售和庫存融資銷售類別的單位出貨量下降所致。這一下降被我們公司擁有的零售店銷售額的成長部分抵消。

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

截至2024年9月30日止三個月，與截至2023年9月30日止三個月相比，我們售出的每件產品淨收入沒有顯著變化。由於我們的貸款組合成長，截至 2024 年 9 月 30 日的三個月內，消費者 MHP 和經銷商貸款利息收入與 2023 年同期相比增加了 150 萬美元，即 17.3%。這一增長主要是由 MHP 和消費貸款組合餘額增加所推動的。2024年9月30日至2023年9月30日期間，我們的MHP貸款組合增加了2,200萬美元，我們的消費貸款組合增加了1,560萬美元。

Other revenue primarily consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees, and other miscellaneous income and decreased $0.4 million or 8.7% during the three months ended September 30, 2024, as compared to the same period in 2023. This decrease was primarily due to a $2.4 million decrease in forfeited deposits and a $1.0 million decrease in dealer finance fees, partially offset by a $2.7 million increase in land sales and a $0.3 million increase in other miscellaneous revenue.

其他收入主要包括合約保證金沒收、寄售費、商業租賃租金、土地出售、服務費和其他雜項收入，截至 2024 年 9 月 30 日的三個月內比 2024 年同期減少 40 萬美元，即 8.7% 2023年。這一下降主要是由於沒收押金減少了 240 萬美元，經銷商融資費用減少了 100 萬美元，但部分被土地銷售增加 270 萬美元和其他雜項收入增加 30 萬美元所抵銷。

The cost of product sales decreased $3.5 million or 13.9% during the three months ended September 30, 2024, as compared to the same period in 2023. The decrease in costs is primarily related to the decrease in units sold. Gross profit margin was 29.2% of product sales during the three months ended September 30, 2024, as compared to 32.9% during the three months ended September 30, 2023. The cost of other sales increased $2.0 million during the three months ended September 30, 2024, as compared to the same period in 2023. The increase in cost is due to the sale of land.

截至 2024 年 9 月 30 日的三個月內，產品銷售成本與 2023 年同期相比減少了 350 萬美元，即 13.9%。成本下降主要與銷售下降有關。截至2024年9月30日止三個月，毛利率佔產品銷售額的29.2%，截至2023年9月30日止三個月，毛利率為32.9%。截至 2024 年 9 月 30 日的三個月內，其他銷售成本與 2023 年同期相比增加了 200 萬美元。成本增加是由於出售土地所致。

Selling, general, and administrative expenses during the three months ended September 30, 2024, remained flat compared to the same period in 2023. We had a $0.6 million increase in payroll and health care expense, a $0.2 million increase in marketing expense, a $0.1 million increase in other miscellaneous expense, offset by a $0.3 million decrease in warranty expense, a $0.2 million decrease in loan loss provision, a $0.2 million decrease in bad debt expense, and a $0.2 million decrease in professional fees.

截至 2024 年 9 月 30 日的三個月內，銷售、一般和管理費用與 2023 年同期相比保持持平。我們的薪資和醫療保健費用增加了 60 萬美元，行銷費用增加了 20 萬美元，其他雜項費用增加了 10 萬美元，但保固費用減少了 30 萬美元，貸款損失準備金減少了 20 萬美元，壞賬費用減少20 萬美元，專業費用減少20 萬美元。

Other income expense increased $3.5 million or 781% during the three months ended September 30, 2024, as compared to the same period in 2023. We had a decrease of $0.8 million in nonoperating interest income, primarily as a result of the settlement agreement that we executed in the third quarter, an increase of $3.9 million in income in miscellaneous net. Also, primarily as a result of the settlement agreement, an increase of $0.4 million in income in miscellaneous net due to a gain on conversion of inventory finance loans, a decrease of $0.1 million in interest expense, and an increase of $0.1 million in expense in miscellaneous net related to other expenses.

截至 2024 年 9 月 30 日的三個月內，其他收入支出與 2023 年同期相比增加了 350 萬美元，即 781%。我們的非營業利息收入減少了 80 萬美元，主要是由於我們在第三季執行的和解協議，雜項淨收入增加了 390 萬美元。此外，主要由於和解協議，由於存貨融資貸款轉換收益，雜項淨收入增加了 40 萬美元，利息支出減少了 10 萬美元，雜項淨額支出增加了 10 萬美元。

Net income decreased 1.8% to $15.8 million in the third quarter of 2024 compared to the third quarter of 2023. Basic earnings per share decreased $0.01 per share or 1.5% in the third quarter of 2024 compared to the third quarter of 2023. As of September 30, 2024, we had approximately $0.6 million in cash compared to $0.7 million as of December 31, 2023. The outstanding balance of the revolver as of September 30, 2024, and December 31, 2023, was $2.1 million and $23.7 million, respectively. At the end of the third quarter of 2024, Legacy's book value per basic share outstanding was $19.84, an increase of 12.7% from the same period in 2023.

與 2023 年第三季相比，2024 年第三季淨利下降 1.8%，至 1,580 萬美元。與 2023 年第三季相比，2024 年第三季每股基本收益減少 0.01 美元，即 1.5%。截至 2024 年 9 月 30 日，我們擁有約 60 萬美元現金，而截至 2023 年 12 月 31 日，我們擁有 70 萬美元現金。截至2024年9月30日及2023年12月31日，左輪手槍的未清餘額分別為210萬美元及2,370萬美元。截至2024年第三季末，Legacy的每股已發行基本股帳面價值為19.84美元，較2023年同期成長12.7%。

Thanks, Jeff. Legacy's 2024 fall show in late September was a huge success. We hosted a record number of customers and wrote orders that extended the backlog into the first quarter of 2025. During the fourth quarter, we increased production at both Texas plants. At the fall show, we showcased significant updates to interior and exterior home finishes to appeal to younger homebuyers. The changes were very well received by both dealer and community customers. We are building and shipping these orders now.

謝謝，傑夫。Legacy 於 9 月下旬舉辦的 2024 年秋季展會取得了巨大成功。我們接待的客戶數量創歷史新高，訂單積壓時間延長至 2025 年第一季。第四季度，我們增加了德州兩家工廠的產量。在秋季展會上，我們展示了室內外家居裝飾的重大更新，以吸引年輕的購屋者。這些變化受到了經銷商和社群客戶的好評。我們現在正在生產和運送這些訂單。

Third-quarter shipments came in lower than we would have liked. Given the marketing around the product updates, many of our customers elected to see the changes in person and order at the show. We continue to build the team, including onboarding a senior sales manager for the Texas plants in late September.

第三季的出貨量低於我們的預期。鑑於圍繞產品更新的營銷，我們的許多客戶選擇在展會上親自看到和訂購的變化。我們繼續建立團隊，包括於 9 月底為德克薩斯工廠任命一名高級銷售經理。

Despite slower sales in the third quarter, we are moving in the right direction. Product sales for October 2024 were up 27% over September of 2024. We continue to hold pricing, which has contributed to a slower recovery than our peers. Our dealer business across most of the network is good. We are pushing the team to add new independent dealers across the manufacturing footprint. South Texas, Florida, and the Carolinas are top areas of focus.

儘管第三季銷售放緩，但我們正在朝著正確的方向前進。2024 年 10 月的產品銷售量比 2024 年 9 月成長了 27%。我們繼續維持定價，這導致復甦速度慢於同行。我們大部分網路的經銷商業務都很好。我們正在推動團隊在整個製造領域增加新的獨立經銷商。南德克薩斯州、佛羅裡達州和卡羅來納州是最受關注的地區。

We view retail finance as a leading indicator on the dealer side. A couple of recent data points. Applications were up 16% for the third quarter of 2024 compared to the third quarter of 2023. October 2024 retail finance funding were the highest recorded since December 2020.

我們將零售金融視為經銷商的領先指標。最近的幾個數據點。與 2023 年第三季相比，2024 年第三季的申請量增加了 16%。2024 年 10 月零售金融融資額創 2020 年 12 月以來最高紀錄。

Our community business is improving slowly. High interest rates continue to depress transaction volumes. We are receiving more inbound requests and think the community business will continue to improve in 2025.

我們的社區事業正在慢慢改善。高利率繼續抑制交易量。我們收到了更多的入站請求，並認為社區業務將在 2025 年繼續改善。

During the quarter, we secured several meaningful orders on the community side. We continue to have success selling HUD tiny homes to RV park investors, transitioning these assets from seasonal to year-round occupancy. I view this as a growth opportunity and highly encourage any of the community customers listening to explore the economics of this strategy.

本季度，我們在社區方面獲得了幾筆有意義的訂單。我們繼續成功向房車公園投資者出售 HUD 小型住宅，將這些資產從季節性入住轉變為全年入住。我認為這是一個成長機會，並強烈鼓勵任何傾聽的社區客戶探索這項策略的經濟效益。

Our lending portfolios continue to grow. Over the last 12 months, interest revenue from MHP, retail finance, and floor plan financing is up 33.9%. Our delinquencies remain low, and recovery rates are strong. Product gross margins were 29.2% for the third quarter of 2024. Under-absorbed labor, given the lower production levels drove the decline, we continue to watch labor closely and expect margins to normalize with production improving. We are also keeping an eye on material price fluctuations.

我們的貸款組合持續成長。過去 12 個月，來自 MHP、零售金融和平面圖融資的利息收入增加了 33.9%。我們的拖欠率仍然很低，而且回收率很高。2024年第三季產品毛利率為29.2%。由於生產水準較低導致了產量下降，勞動力吸收不足，我們將繼續密切關注勞動力，並預計隨著產量的改善，利潤率將正常化。我們也密切關注材料價格波動。

We sold excess land in Horseshoe Bay during the third quarter for $2.7 million. As I mentioned on the last call, investors will continue to see land sales as we shift our focus to the core properties.

第三季我們以 270 萬美元的價格出售了馬蹄灣的多餘土地。正如我在上次電話會議中提到的，隨著我們將重點轉向核心物業，投資者將繼續看到土地銷售。

Legacy is now operating two mobile home parks that were deed to us under the settlement agreement. The parks combined have 275 spaces and occupancy rates of approximately 35%. Brand-new homes were already on site. We hired a manager in the corporate office to oversee these projects. We are renting homes now to increase occupancy before monetizing. As Jeff mentioned, the settlement agreement resulted in a one-time gain during the third quarter. We believe there is still meaningful upside to realize when we sell the properties over the next couple of quarters.

Legacy 目前正在經營兩個移動房屋公園，這些公園是根據和解協議轉讓給我們的。這些公園共有 275 個停車位，入住率約 35%。全新的房屋已經建在現場。我們在公司辦公室聘請了一名經理來監督這些專案。我們現在出租房屋是為了在貨幣化之前增加入住率。正如傑夫所提到的，和解協議在第三季帶來了一次性收益。我們相信，當我們在未來幾季出售這些房產時，仍然可以實現有意義的上漲空間。

A few updates on land development. In Bastrop County, our 1,100 pad development near Austin, the roads and utilities are nearly complete for Phase 1. We anticipate selling lots during the first half of 2025. We are starting the roads in Phase 2 now, and we'll provide additional updates next quarter.

土地開發的一些最新情況。在巴斯特羅普縣，我們在奧斯汀附近開發了 1,100 個土地，第一階段的道路和公用設施已接近完工。我們預計在 2025 年上半年出售地塊。我們現在正在啟動第二階段的道路，我們將在下個季度提供更多更新。

In Horseshoe Bay, we own 300 developed mobile home lots. A market study estimated that the lots are worth approximately 3 times the value on our balance sheet. This quarter, we are opening our first new company-owned dealerships since the post-IPO build-out. The sales lot is near the Horseshoe Bay land, and we will begin selling land and homes in the first half of 2025. We are making progress on our retail business and view our independent dealer network as a path to expand our company-owned footprint as some business owners approach retirement age.

在馬蹄灣，我們有 300 個已開發的移動房屋地塊。一項市場研究估計，這些拍品的價值約為我們資產負債表上價值的 3 倍。本季度，我們將開設自 IPO 後擴建以來的第一家新的公司自有經銷商。該銷售地塊靠近馬蹄灣土地，我們將於 2025 年上半年開始出售土地和房屋。我們的零售業務正在取得進展，隨著一些企業主接近退休年齡，我們將我們的獨立經銷商網路視為擴大公司足蹟的途徑。

I continue to believe in the long-term fundamentals of this business. We are seeing more coverage of factory-built housing in the media and hear talks of regulatory reform. The affordable housing crisis is not solved without our industry.

我仍然相信這項業務的長期基本面。我們看到媒體越來越多地報道工廠建造的住房，並聽到有關監管改革的討論。如果沒有我們的產業，經濟適用房危機就無法解決。

Operator, this concludes our prepared remarks. Please begin the Q&A.

接線員，我們準備好的發言到此結束。請開始問答。

Daniel Moore, CJS Securities.

丹尼爾·摩爾，CJS 證券。

Thank you, Duncan. Thanks, Jeff, for all the color and taking questions. I need to start with good morning. Appreciate the color on October. Maybe just talk about your expectations for production rates across your three plants for the December quarter in relative to Q3, in light of the strength in orders that you've seen during the fall show. It sounds like you intend to ramp production rather than let backlogs build, but any detail or call there would be really helpful.

謝謝你，鄧肯。謝謝傑夫的所有顏色和提問。我需要從早安開始。欣賞十月的色彩。鑑於您在秋季展會期間看到的訂單強勁，也許只是談談您對 12 月份季度相對於第三季度三個工廠的生產率的預期。聽起來您打算提高產量，而不是讓積壓的訂單增多，但任何細節或電話都會非常有幫助。

Yeah, absolutely. Dan, we were looking for a catalyst to ramp production up, and we've been trying to build our backlog. Third quarter was lighter than we would have liked, but we created a lot of excitement around the fall show, which was at the end of September. I think as our sales team started seeing the new colors and features in the houses and sharing those with customers ahead of the show, we had some customers that decided to wait and order at the show for delivery in the fourth quarter or even in the first quarter of next year. So that delayed some shipments for us.

是的，絕對是。丹，我們正在尋找提高產量的催化劑，並且我們一直在努力增加積壓訂單。第三季的情況比我們想像的要輕鬆，但我們在 9 月底的秋季展會上創造了很多興奮點。我認為，隨著我們的銷售團隊開始看到房屋的新顏色和功能，並在展會前與客戶分享這些內容，我們有一些客戶決定在展會上等待並訂購，以便在第四季度甚至第一季度交貨明年一個季度。所以這延遲了我們的一些發貨。

I think the other thing, we continue to build the team here, and we've made over the last couple of years, several key senior hires. What wasn't working for the two Texas plants is me overseeing the sales department and all my spare time. We've hired a senior sales manager there, and he's managing the team daily, and pricing has had an impact. I mean, we haven't taken pricing down. I think some of our larger competitors have.

我認為另一件事是，我們繼續在這裡建立團隊，並且在過去幾年中我們聘用了幾名關鍵的高級人員。我在德州的兩家工廠無法工作的是我負責監督銷售部門和我所有的業餘時間。我們在那裡聘請了一位高級銷售經理，他每天都在管理團隊，定價也產生了影響。我的意思是，我們還沒有降低價格。我認為我們的一些較大的競爭對手已經這樣做了。

So ultimately, we're building these show orders now. We had a little bit of a delay getting some of the new materials in, but I certainly expect the fourth quarter from a product sales standpoint to be up over the third quarter.

所以最終，我們現在正在建立這些演出訂單。我們在購買一些新材料方面有一點延遲，但從產品銷售的角度來看，我當然預計第四季將比第三季有所成長。

Very helpful. And maybe just talk about how orders gave good detail around the show, and we can kind of see how things are trending in October. But just how have orders trended thus far into Q4, the momentum you've experienced in Q3 kind of carried over so far this quarter?

非常有幫助。也許只要談談訂單如何提供有關展會的詳細信息，我們就可以了解十月份的趨勢。但到目前為止，第四季的訂單趨勢如何？

Yeah. I think even since the show and writing all the orders at the show, we've had pretty steady sales for the last couple of weeks that continue to take the backlog out, which is good. Production is still below where we'd like it to be, but better than Q3. The encouraging thing is we're starting to see the park customers come back. That's been a space through COVID, the two founders really built the business on the park side. We had a good dealer network, and we've been struggling on the community side and are starting to see more inquiries and sign some meaningful deals, not huge deals where you're selling hundreds of houses, but deals where we're selling 20 to 60, and that helps us out a little bit. It's still slower than we'd like, but it's certainly improving.

是的。我認為，即使自展會結束並在展會上寫下所有訂單以來，我們在過去幾週的銷售量仍然相當穩定，繼續消除積壓，這很好。產量仍低於我們希望的水平，但好於第三季。令人鼓舞的是，我們開始看到園區內的顧客回來了。這是新冠疫情期間的一個空間，兩位創始人真正在公園一側建立了業務。我們擁有良好的經銷商網絡，我們一直在社區方面苦苦掙扎，並開始看到更多的詢問並簽署一些有意義的交易，不是出售數百套房屋的大筆交易，而是我們出售20 套房屋的交易到 60，這對我們有一點幫助。它仍然比我們希望的要慢，但肯定正在改善。

Really helpful. It doesn't sound like it, but just checking to see if there was any impact from the hurricanes in the Georgia and Carolinas. If not, as we look forward, do you see potential opportunity either in terms of rebuild or FEMA replacement or both?

真的很有幫助。聽起來不像，但只是檢查一下喬治亞州和卡羅來納州的颶風是否有任何影響。如果沒有，正如我們所期待的，您是否看到重建或 FEMA 更換或兩者兼而有之的潛在機會？

Yeah, absolutely. We were fortunate where we had some delayed shipments just going to customers in certain areas in the southeast from the storm. But, as far as the plant and the inventory and our team there, we luckily came out of it unscathed. I think the hurricane rebuild work has been confusing. There's been conversations with HUD and with other providers of temporary or workforce housing.

是的，絕對是。幸運的是，我們有一些延遲發貨，這些貨物只是運送給受風暴影響的東南部某些地區的客戶。但是，就工廠、庫存以及我們在那裡的團隊而言，我們幸運的是毫髮無傷。我認為颶風重建工作一直令人困惑。我們已經與 HUD 以及其他臨時或勞動力住房提供者進行了對話。

It doesn't seem like there's been any meaningful money that started to flow yet. But we certainly expect that going forward, there will be rebuild work. We're getting a lot of inquiries on our workforce housing products primarily build in Texas, but we can build in Georgia temporary housing applications over in the Carolinas.

似乎還沒有任何有意義的資金開始流動。但我們當然預期未來會有重建工作。我們收到了很多關於主要在德克薩斯州建造的勞動力住房產品的詢問，但我們可以在喬治亞州建造臨時住房應用程序，在卡羅來納州建造。

Great. Last one. But gross margins, as you pointed out, tick lower sequentially. It sounds like you'll get better absorption starting in Q4. So, any more specificity in terms of what normalization looks like for margins as we think about Q4 and into the first half of next year? Thanks again.

偉大的。最後一張。但正如您所指出的，毛利率連續下降。聽起來從第四季開始你會得到更好的吸收。那麼，當我們考慮第四季和明年上半年時，利潤率正常化的情況是否有更多具體內容？再次感謝。

Yeah, absolutely, Dan. I think we'll get back in 30s and low-30s in first quarter -- sorry, in the fourth quarter. Labor is obviously the market is not as tight as it was through COVID, but it's still pretty tight, and you want to hang on to your people. This was a quarter where just our production was down until we got through the show and really started building those orders. I think we'll normalize heading into the end of the year as we ramp production up to right-size the team from a production standpoint.

是的，絕對是，丹。我認為我們會在第一季回到 30 多歲和 30 多歲以下的水平——抱歉，在第四季度。勞動市場顯然不像新冠疫情期間那麼緊張，但仍然相當緊張，你想留住你的員工。這個季度我們的產量有所下降，直到我們看完展會並真正開始建立這些訂單。我認為，隨著我們從生產的角度提高產量以調整團隊規模，我們將在今年年底實現正常化。

Perfect. Appreciate it. Appreciate the color.

完美的。欣賞它。欣賞顏色。

Thanks, Dan.

謝謝，丹。

Mark Smith, Lake Street.

馬克史密斯，湖街。

Hey, Duncan. I just wanted to check in first on the settlement agreement, if we've now kind of worked through everything there, if there's any kind of ongoing impact as we look at Q4?

嘿，鄧肯。我只是想先檢查和解協議，我們現在是否已經解決了所有問題，在我們考慮第四季度時是否有任何持續的影響？

No, we've worked through it. This was the last quarter of the moving pieces around getting the settlement agreement on to the books. We did realize a pretty meaningful gain during the quarter. And ultimately, the borrower is current, and we're now operating two parks that we've got our arms around, and we've got a team hired at the corporate level and then new park managers on site. And so, there's some cleanup work to do, there's opportunities to take occupancy higher. And then I think we'll ultimately look to monetize these assets in the fairly near future. But as far as the moving pieces of getting the settlement agreement on the books, we are complete.

不，我們已經解決了。這是圍繞和解協議的最後一個季度的進展。我們確實在本季實現了相當有意義的收益。最終，借款人是當前的，我們現在正在運營兩個我們已經掌握的公園，我們在公司層面聘請了一個團隊，然後在現場聘請了新的公園經理。因此，需要做一些清理工作，才有機會提高入住率。然後我認為我們最終會在不久的將來尋求將這些資產貨幣化。但就達成和解協議這令人感動的事情而言，我們已經完成了。

Perfect. And then I did just want to ask about the big ramp in the MHP financing portfolio came up in size quite a bit. If you can just speak to kind of what all happened there?

完美的。然後我只是想問一下 MHP 融資組合的大幅成長。您能談談那裡發生的一切嗎？

Yeah. As part of the settlement agreement, the borrower had MHP notes that were secured by homes and then there were also development loans as well. So we shifted -- with the settlement, we shifted some of the balances from the development loan portfolio over to MHP.

是的。作為和解協議的一部分，借款人擁有以房屋為抵押的 MHP 票據，此外還有開發貸款。因此，我們進行了轉移——透過和解，我們將開發貸款組合的部分餘額轉移到了 MHP。

Perfect. Thank you.

完美的。謝謝。

Alex Rygiel, B. Riley Securities.

Alex Rygiel，B. Riley 證券公司。

Thanks. Good morning, Duncan. A couple of quick questions. First, can you give us a clarification, did you say earlier that product sales gross margin would get back above 30% in the fourth quarter?

謝謝。早上好，鄧肯。幾個簡單的問題。首先，您能否給我們澄清一下，您之前是否說過第四季產品銷售毛利率將恢復到30%以上？

I think we'd like to get to 30%. We slid from 31% to 29% with the lower production in the fourth quarter. And so, we'd like to get closer to where we were in the second quarter. I think the improving production helps, but there's also -- we're keeping an eye on the lumber and wood products, which I think have been impacted after the hurricane. So that's the goal. But the margin really slipped because of labor under absorption in the third quarter.

我想我們希望達到 30%。由於第四季產量下降，我們的產量從 31% 下滑至 29%。因此，我們希望更接近第二季的水平。我認為生產的改善有所幫助，但我們正在密切關注木材和木製品，我認為它們在颶風後受到了影響。這就是目標。但由於第三季勞動力吸收不足，利潤率確實下滑。

Helpful. And then how long might it take to increase the occupancy at the two owned parks to a level that's attractive to sell?

有幫助。那麼，需要多長時間才能將兩個自有公園的入住率提高到有吸引力的出售水平？

I think we can get there in a quarter, Alex. Both of these parks had a lot of brand-new homes that we had shipped some of which have been set up and not rented, others that were on pads and utilities weren't connected. And so, we're really focused on Beaumont, Texas, I think that's where the most upside is. And we've done a pretty good job so far with the new park manager leasing those homes up. So I'd like to get us somewhere between 50% and 70% occupancy before we ultimately monetize these. We'll just see how it goes.

我想我們可以在一個季度內到達那裡，亞歷克斯。這兩個公園都有很多全新的房屋，我們已經運送了這些房屋，其中一些已經建成但尚未出租，其他房屋位於墊地上，公用設施尚未連接。因此，我們真正關注的是德州博蒙特，我認為那是最大的優勢。到目前為止，我們在新公園經理出租這些房屋方面做得非常好。因此，在我們最終將這些貨幣化之前，我希望讓我們的入住率達到 50% 到 70% 之間。我們將看看事情進展如何。

That's helpful. And then as it relates to the fall show, it sounds like coming out of the fall show, you've got good visibility for backlog into 1Q '25. You've increased production in your Texas plants. Does that all suggest that the show was better than you had expected or about the same?

這很有幫助。然後，由於它與秋季展會相關，聽起來像是秋季展會結束後，您對 25 年第一季的積壓訂單有了很好的了解。您增加了德州工廠的產量。這一切是否表明該節目比您預期的要好或差不多？

No, the show really was a big success. I mean, that's our big sales event every year. And I think the difference this year is, we made more updates to the houses this year than we probably had in the last 10 years combined. So I think new flooring options, wallboard, cabinet colors, countertops, walk-in showers. The team really did a nice job on the interior and exterior finishes to modernize the product. And I think we really pushed that.

不，這部劇確實取得了巨大的成功。我的意思是，那是我們每年的大型銷售活動。我認為今年的不同之處在於，我們今年對房屋的更新可能比過去 10 年的總和還要多。所以我認為新的地板選擇、牆板、櫥櫃顏色、檯面、步入式淋浴間。團隊在內部和外部裝飾方面確實做得很好，使產品現代化。我認為我們確實推動了這一點。

We got a lot of customers there, weather was great, and ultimately, we wrote a lot of orders, but the, I'd say 95% of the orders were for the updated finishes. And so, it took us a little bit of time, a couple of weeks to get all the new colors in, and then we started building them.

我們在那裡有很多客戶，天氣很好，最終我們寫了很多訂單，但我想說 95% 的訂單都是更新的飾面。因此，我們花了一點時間，幾週的時間來獲得所有新顏色，然後我們開始建造它們。

So I think in the long term, our customers were looking for us to update the product; we did. The feedback was great. And we're starting to get these homes out on dealer lots where they're selling them really quickly. And I think that there may have been a little pain kind of getting through the show and production in the third quarter. But for the long term, it really sets us up nicely.

所以我認為從長遠來看，我們的客戶希望我們更新產品；我們做到了。反饋很好。我們開始將這些房屋賣給經銷商，他們的銷售速度非常快。我認為第三季的演出和製作可能會有些痛苦。但從長遠來看，這確實對我們有好處。

That's great. Congratulations. Thanks.

那太棒了。恭喜。謝謝。

Thank you.

謝謝。

This does conclude the question-and-answer session of today's program. I'd now like to hand the program back to Duncan Bates for any further remarks.

今天節目的問答環節到此結束。我現在想將該程序交還給鄧肯·貝茨以供進一步評論。

Sure. Thank you for joining today's earnings call. We appreciate your interest in Legacy Housing. Operator, this concludes our call.

當然。感謝您參加今天的財報電話會議。我們感謝您對遺產住房的興趣。接線員，我們的通話到此結束。

Thank you. And thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

謝謝。女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。