The following is a summary of the Legacy Housing Corporation (LEGH) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Legacy Housing Corporation reported a net income increase of 7.8% to $16.2 million in Q2 2024 compared to Q2 2023.

• Basic earnings per share increased by 8.7% in Q2 2024.

• Product sales decreased by 25.2% due to a drop in unit volumes, primarily in direct sales and mobile home park sales.

• Gross profit margin improved to 31.9% in Q2 2024 from 29.8% in Q2 2023, reflecting disciplined cost management despite lower production volumes.

Business Progress:

• Launched a retail financing special to boost movement of aged inventory ahead of the fall show, leading to a 34% increase in retail finance applications.

• Continue to resolve legal and operational issues, focusing on core business growth and increased sales efforts, particularly at the Georgia plant.

• Announced additional share repurchase of $10 million to demonstrate confidence in the company's valuation and management.

Opportunities:

• Successfully selling smaller HUD units and tiny homes to MH and RV park owners to maintain affordability and high occupancy, indicating a strategic adaptation to market demands.

• Recognized an opportunity to continue monetizing non-core real estate assets to enhance financial flexibility and shareholder value.

Risks:

• Acknowledged delayed shipments primarily in Georgia leading to a potential short-term impact on revenue recognition.

• Higher interest rates have affected the community business, impacting transaction volumes and reducing new development activities.

More details: Legacy Housing IR

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