Full Year 2023 Legacy Housing Corp Earnings Call
[music].
Okay.
Good day and thank you for standing by welcome to the legacy Housing Corporation Q4, 2023 earnings call.
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I'd now like to hand, the conference over to your Speaker today, Duncan Bates President and CEO. Please go ahead.
Good morning. This is Duncan Bates legacies, President and CEO. Thank you for joining our call to discuss legacy as year end 2023 results.
Apologize for the release late Friday circumstances outside of our control delayed the release and we will try to avoid Friday releases in the future.
Thanks Alfred.
<unk> General counsel.
Read the safe Harbor disclosure before getting started Max.
Thanks Duncan.
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 protection of the Safe Harbor for forward looking statements that is contained in the private Securities Litigation Reform Act 1995.
Actual results may differ from management's current expectations and therefore, we refer you to a more detailed discussion of the risks and uncertainties in the company's annual report filed with the Securities and Exchange Commission. In addition, any projections as to the company's future performance represent managements estimates as of today's call legacy assumes no obligation to update these projections.
In the future unless otherwise required by law.
Thanks Max.
I'm joined today by Jeff's Edelman legacy as Chief Financial Officer, Jeff will discuss our 2023 financial performance then I will provide additional corporate updates and open the call for Q&A.
Jeff.
Thanks Duncan.
Product sales decreased to $145 1 billion from 34, 7% in 2023 as compared to 2022.
This decrease was driven by a decrease in unit volumes and the conversion of certain independent dealer consignment arrangement to inventory finance arrangements in 2022 that did not occur in 2023.
The conversion of consignment arrangements to inventory finance arrangements resulted in an increase to product sales up approximately $29 1 million during 2023.
Between December 31, 2023, and December 31, 2022, our net revenue per unit sold decreased 10, 4% to $59600.
Dealer and community customers purchase smaller less auction homes to meet customer demand in 2023, the decrease was not driven by price concessions during the year.
Consumer M HP and dealer loans interest income increased to 37 4 million or 31% from 2023 to 2022.
This increase was driven by increased balances to me I'm HP and consumer loan portfolios.
Between December 31, 2023, and December 31, 2022, our consumer portfolio, our consumer loan portfolio increased by $17 5 million and our MH P loan portfolio increased by $39 2 million.
These increases are net of principle payments in loan loss reserves.
Other revenue primarily consists of contract deposit forfeitures dealer finance fees and commercial lease rents and increased to $6 6 million or three 5%.
The increase was driven by growth in forfeited deposits and servicer fee revenue offset by a decrease in consignment fees.
Dealers carry less inventory in 2023.
The cost of product sales decreased $54 million or.
Our 33, 6% in 2023 as compared to 2022.
The decrease in cost is primarily related to a decrease in units sold.
Product gross margin was 31, 3% for the year ended December 31 2023.
Selling general and administrative expenses decreased $3 3 million or 11, 9% in 2023 as compared to 2022.
This decrease was primarily due to a decrease in salaries and benefits costs.
Warranty costs consulting and professional fees.
Partially offset by an increase in loan loss provision legal expenses in marketing and advertising expenses.
Net income decreased 19, 6% to $54 5 million between December 31, 2023 December.
December <unk> December 31 2022.
At December 31, 2023, we had approximately zero point $7 million in cash and cash equivalents compared to $2 8 million as of December 31, 2022.
I guess these outstanding balance on our credit facility at December 31, 2023 was $23 $7 million.
During the fourth quarter, we drew on our facility to make significant investments in our land development and to fund multiple financing opportunities that surface near year end.
The balance on our credit facility, it's below $11 million today.
Okay.
Okay.
Legacy delivered a 13.0% return on shareholder's equity over the last 12 months.
At December 31, 2023 legacy <unk> book value per basic share outstanding was $17 91.
An increase of 14, 2% from the same period in 2022.
Thanks, Jeff.
I appreciate you and your team's hard work on the audit and the 10-K filing.
Let's start with legacy financial performance, then I will discuss the market and give other corporate updates.
First I would like to address a few one time items that impacted our numbers for the reported period.
In 2022, we converted legacy dealer financing program from consignment arrangements to inventory financing arrangements. The goal of this conversion was to move our dealers' to an industry standard inventory finance program.
The conversion resulted in a onetime increase in product sales of $29 1 million in 2022.
Approximately $20 million of the $29 million was recognized in the fourth quarter of 2022.
Please keep this in mind as you evaluate the quarter and year end performance.
In 2023, the energy tax credit program changed and legacy adjusted Accordingly.
2023, we started building nearly all of our HUD code units to energy Star standards, a voluntary program that will serve our that will save our customers money.
For the year ended December 31, 2023 legacy could only claimed tax credits for homes built and sold in 2023.
Lowering the tax credits recognized during the year.
Our effective tax rate jumped from 17, 5% in 2022% to 28% in 2023.
For 2024, we anticipate reducing our effective tax rate back towards 18% as we claim credit for homes built in 2023, but sold in 2024.
For the year ended 2023 legacy implemented CSO of loan loss accounting framework required by FASB.
The standard requires an entity to reflect its current estimate of all expected credit losses.
The adoption resulted in an increase in portfolio allowances of 900000, it transition in the first quarter of 2023.
The allowance.
So allowances have increased 158% to $2 2 million at December 31, 2023.
From 840000 at December 31, 2022.
I am proud of our team's execution controlling expenses during a lower demand environment in 2023.
We managed SG&A down 11, 9% and overhead expenses effectively.
We ended 2023 with 29% net income margins for the year with no adjustments legs.
Legacies Board launch our management team laser focused on the bottom line we.
We have held pricing levels and held production levels as we continue to build our backlog across the manufacturing plants.
Shipments were lower in the fourth quarter than we would've liked.
Your estimated seasonality on the dealer side further delayed shipments from the Texas, and Georgia plants to mobile home parks and weather up north delaying shipments of sub contracted units from our partners. These factors all contributed to lower shipments during the fourth quarter.
As Jeff mentioned consumer MH P and dealer dealer loan interest income increased to $37 4 million or 31% from 2022 to 2023.
We will continue to deploy capital into our loan portfolios in 2024.
The notes are performing well and we like the stable and recurring revenue.
Housing affordability in the U S continues to deteriorate.
Large numbers of potential homebuyers are priced out of the traditional housing market.
Our products and financing solutions served a 50% of U S households that make less than $75000 a year.
We believe in our industry and continue to see signs of a gradual recovery in 2024.
The economy stabilizes and credit eases.
Moving on to the market.
The retail or dealer side of our business continues to show signs of life, we just work through seasonally.
Seasonally slower period.
Foot traffic is still up from mid 2023 and dealers are selling homes.
We believe that most of the Destocking issues from early 2023 are behind us.
The reorder rates continue to lag, but inventory carrying costs are higher.
Two important data points.
Right now interest from new dealers and legacy products and financing solutions is high.
<unk> has signed up more new dealers this month than any other months since I started.
Second.
Our heritage stores are on track for the best sales months in the last 12 months.
On the community or park side of our business.
Sales to community owners and developers remained stable, but shipments lag.
Like other manufacturers, we are battle delayed shipments due to set up related issues and discriminatory zoning practices.
New manufactured housing developments have been impacted by high interest rates.
In Q4, we started to see an interesting trend is traditional community developers and investors started taking delivery of small HUD units and tiny homes for RV parks.
They are purchased and converted.
These smaller units did impact our average selling price in the fourth quarter.
A quick update on some of the projects I discussed last call.
Here's where I'm focused hiring we continue to build the team at legacy.
Mentioned that we are hiring young hungry talent last quarter My mandate from the board now has to also hire senior professionals with industry experience to increase depth in important areas of our business like financing sales engineering and manufacturing we.
We still have some key positions to fill but I am excited to see the contribution as these individuals get up to speed.
Working capital working capital is still a focus from December 31, 2022 to December 31, 2023, we reduced our raw material inventory by 23%. We still have work to do on finished goods inventory at our Georgia plant.
Kenny and I have been heavily involved in recruiting and training talented sales professionals. We are system rising our sales process by adding tools and technology.
As the newer sales team gets up to speed, we're starting to see results and as the market improves we are well positioned from a sales standpoint.
Workforce housing.
Continue to believe workforce housing is a big opportunity for legacy we hired a team to focus exclusively on this product line during the fourth quarter. The team is quoting and winning small orders. We are managing this area closely and are excited about the opportunities with state.
Land development I mentioned during the call that we hired a dedicated team to prioritize and accelerate land development completing phase one of our del Val SaaS dropped county.
Jacked outside of Boston is our top priority you will see in our numbers the capital to complete. This project is accelerating we continue to evaluate ways to maximize the value of these projects for our shareholders.
Two new areas that I want investors to keep an eye on.
As our heritage stores performance improves we think theres an opportunity to add additional stores, we only sell about 10% of our production through our company owned stores compared to almost 50% from some of our competitors.
We are exploring opportunities to add financing products to better serve our customers. Our senior leadership team has been working with customers to understand their needs and is evaluating if these programs make sense for our business.
One final thought I.
Ill discuss valuation on our last call.
Legacy is a high quality business with strong consistent margins high insider ownership low leverage and the ability to redeploy its earnings at high rates of return.
We are long term focused.
One quarter does not define us.
Now that our foundation is stable the right conversations are happening at the board level about strategic growth projects. Our management team is excited to see what we can do over the next few years off.
Operator. This concludes our prepared remarks, please begin the Q&A.
Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.
Our first question comes from the line of Alex Rygiel from B Riley Securities.
Good morning, Duncan and Jeff This is Matt on for Alex This morning.
Couple of quick questions, Hey, So I was just wondering if you can.
Well on our November call.
You, obviously talked about a lot of positive trends that youre seeing retail improvements you had some positive backlog from your October show.
Has anything shifted more positively or maybe just.
The negative direction.
Ann.
Man, it's been spotty.
We were really excited coming out a day out of the show.
We're able to secure a lot of orders and we had a pretty good run built nodes orders.
During the fourth quarter, we just had a lot of things that worked against us and ultimately slowed down shipments and so what we decided was.
Let's hold production at current levels and let's continue to build a backlog and we've got we're all heading to Biloxi. After this call. We've got great show specials, and so we've been continuing to push on the sales side I think the biggest change is that.
We are seeing the impact of higher interest rates on the park side of our business now.
And that's something that we had a lot of parks that we're filling up I think that.
New development is slower than we like but it's still it's still stable and we've had some some nice size orders.
We're working on some more.
But it hasn't we're impacted just like the other manufacturers on the park side of the business.
Yeah.
Okay, great. Thank you.
Also just talking more about <unk> I know that you had hired a new team to kind of focus on land development.
You're supposed to finish that like the roads and water treatment plants and maybe that's part of some of the slower development, but do you have any sense any better sense for timing of some of the home deliveries into del Val or even Horseshoe Bay at this point.
So we have made some progress in Horseshoe Bay Horseshoe Bay.
Our individual lots and we own about 300 oven.
We're putting homes on.
And selling.
And we're probably I'd say.
A month and a half away from opening our sales center, there, which should accelerate the sales of those of those homes and we've already sold a few or we sold a few homes this quarter in Horseshoe Bay.
So there is we are making progress in Horseshoe Bay.
And the other the other area, where we're really focused on the land development side as is <unk>.
Del Val Youll see if you look at our our.
Our Capex I mean, we wrote some really big checks at the end of the year.
We've got the water lines and we've got the sewer lines and we've got the power. They are working on the drainage inroads now and starting the water treatment plant and so our goal.
Really I don't think well have houses on it in 2024, but I think it's pretty early in 2023.
Sorry, 2025, and we're we're pushing hard on at our dollars are starting to really accelerate and we've got the right team working with Curt on that project.
To get back on track.
Okay and then just a final question on your new focused on potentially expanding your heritage or your.
You're in home sales I guess.
Can you talk a little bit about how much capital is required to open up a new location kind of what your.
Kind of return horizon timeline looks like and just what locations are looking to expand it.
Yes.
I want I want you guys to keep an eye on it I wont say its perfect but.
When legacy went public.
They use the IPO proceeds to build.
Our retail presence and we've had some challenges.
Managing our retail stores, but I finally feel like we're heading in the right direction, there, which is the first step.
Ultimately growing.
That piece of our business and Theres a lot of benefits that we pick up.
Bye Bye, adding company owned retail stores, because you capture the retail margin and you accelerate.
Yeah.
Financing opportunities to our consumer loan portfolio.
The first.
First.
A lot will be in Horseshoe Bay, and that's mainly to serve that.
Development is as we put houses on those lots.
But there are several other areas that that we're looking at and from.
From a capital contribution standpoint, I mean, we're not talking about huge dollars.
About half of our lots right now are leased and the others are owned.
So we don't have to necessarily go out and buy a piece of land every time, we open up a lot, but it just seems like an area as we.
As we've gotten better at managing heritage and Theres still some certainly some improvement.
There are ways to go but I think as we get that business really comment then it opens up the opportunity.
To add more stores.
And if you look at our larger competitors.
Right now I mean there.
They are selling up to 50% of their production through their stores. So we've got a.
Lot of White space ahead, if we can get this right.
Alright, Thanks, a lot guys I'll turn it over.
Thank you one moment far next question.
Our next question comes from the line of Mark Smith from Lake Street.
Okay.
Hi, guys.
First question for me Duncan that stay on the retail stores.
Did you guys run any more.
Motions did we see ASP.
Where does that kind of move within the retail store segment as the sales they are pretty solid.
Yeah.
I would say is.
Let's talk about all all dealer sales not just the legacy sales, but I would say the dealer side of the business.
Is is improving and we continue we've been really impressed I've got my secret sales weapon Kenny.
Kenny out there running down new dealers and we've added a lot of new independent dealers, which is great for us because when the Parkside cycles, we do really need the dealers.
And we like the financing opportunities on.
On the consignment.
Federal investors consumer financing side.
We're seeing some good improvement on the dealer side.
It is patchy, though there are certain geographies, where people seem to be doing better than others. I think that there is also we are seeing this divergent divergence between the dealers that have embraced technology and we're using social media.
And finding customers on the internet versus others that haven't and so I think that there is some some room to help them improve as well.
But we haven't.
We havent dropped prices across the board.
Yes.
We've taken production down to meet the demand and you're building the backlog, but the dealer side of the business is fairly strong.
Okay.
And then if we had if we.
We maintain the sales mix similar to where it was here in Q4 can you just talk about margin.
Outlook.
Much of the decline here in margins in Q4 was really due to sales mix versus anything else happening.
Yes, I mean, we were impacted I mentioned, we have these big orders were on the park side, where we shipped.
Smaller HUD code units been tiny homes to I've got a few customers who are converting RV parks. So I think that that has impacted us but across the board both on the dealer side and the park side.
The shift has been.
Has continued to be toward smaller homes, I mean, where we used to sell a lot of large 16 wides to parks people are moving to 14, Wides and 12 Wides.
So I think that.
That has had an impact, but I don't anticipate that everyone's only going to be buying smaller homes.
For the next year or so I mean, it's just something that we've seen here in the very very near future or very near.
History.
Okay, and then as we look at the loan business.
Within consumer loans are you guys using right.
To drive an increase in that business it looks like rates maybe come down.
Out the year and even into Q4 any commentary on kind of what you guys are charging and how that's impacting the business.
Yes, I mean, if you look at that loan portfolio in its entirety.
We went through we went through a period, where I would say rates were stable and then interest rates were super low and now interest rates are high.
And.
The older loans have higher interest rates on loans say from the last three years, but we are pushing rate higher now.
We.
With the set with federal investors we have.
Very strict underwriting requirements.
We have used.
So we have kept our rate.
Low because we're not borrowing to land.
But in certain unique.
Situations, where we're financing a certain type of borrower.
There are certain types of borrowers.
Our credit quality is a little bit lower I mean, we're certainly pushing rates higher so I think we'll get back to.
A point, where the rates on our our chattel loans are closer to what they were four or five years ago and over the last few years.
Okay and the last one for me Jeff.
Sorry, I think I missed it did you talk about where the balance sheet, where the debt is today.
Today's or under $11 million on our line of credit.
So it has come down considerably since the end of December.
Okay.
And maybe one more follow up on that just as we think about use of capital going forward you guys spend a little bit more here recently on some investments how should we look at kind of capex and use of capital going forward here in 2024.
I think on the <unk>.
<unk> dropped county, Q4 is a pretty good indicator of what the next few quarters will look like from a capex standpoint for that specific project.
I think capex it.
At the plant is fairly stable.
We've had.
We've worked through several projects, where we've invested in the plants.
With things like new roofs, then.
Updated walkways and.
And other things to keep our workers safe, but no meaningful uptick and.
And the plant Capex and but back to your back to your question on the on the credit line.
What essentially happened at year end, we had.
We had some larger checks that we had to write for for vast drop for roadwork and for the.
The water treatment plant.
Credit is tight and there's a lot of there's a lot of people in our industry that.
Need to borrow money for certain projects and these are secured loans and relatively high interest rates with personal guarantees for assets that we wouldn't mind owning if theres a problem with the credit and so we put a lot of money to work at the end of the year.
And we continue to see those opportunities to generate great returns with a with a secured loan and ultimately helps some of our customers out with projects that.
We will get some orders once they get through the development.
Okay, great. Thank you.
Thank you one moment for our next question.
Our next question comes from the line of Jay Mccanless from Wedbush.
Hey, good morning, Thanks for taking my questions Hey, good morning.
So if we could start with the decline in product sales for the fourth quarter, maybe could you break out what that decline was for the retail dealers versus the part versus your park customers.
Yes, I mean, a big well I don't have the exact split in front of me, but I can follow up with you with an exact number but.
At a high level on the dealer side, we came off our we came off our show we started shipping a lot of houses.
And then we hit a seasonably slower period, where.
Dealers.
Wanted us to hold off on shipping homes and the park side like I mentioned has been spotty where.
Project will go and Youll be able to deliver a few months of houses or in many cases theres significant delays with.
Utilities are permitting R. R.
Other other things that happen for these developments are retrofits and so we kind of just had up.
A little bit of a perfect storm and.
Delays on the park side and just some seasonality on the dealer side.
We've also got I think you know Jay we've got some partnerships up north with some other manufacturers that build our floor plans and I think that that that continues to be a good opportunity for us but.
With the weather out there, we just couldnt ship anything.
And.
We've been pushing we've been pushing hard on.
All year, and we just we kind of hit a point, where there was a lot of delays in shipments.
And.
You see that in our fourth quarter results.
Got it could you give us any color on how product sales are trending thus far in the first quarter.
Yes.
They're looking they're looking pretty good I've had I've had some delays shipping houses out of Georgia.
Which just seems to be one thing after another there, but we're pretty close I think to getting back on track.
So we had at the beginning of beginning of the quarter, we had homes caught up and the are there that we're clearing out now as quickly as we can.
But in Texas, It's Ben.
It's been pretty consistent we thought when we spoke last quarter.
That we were we looked really good.
And we are planning on taking up production in what we're doing now is where we have decided hey, let's keep production where it is and keep building the backlog keep running specials keep focusing on sales. We've got a lot of new sales reps that are getting up to speed and they are.
They are making sales and theyre, making commissions and it's.
It's fun to watch but.
Four.
For Q1, I think it looks better than better than Q4.
But but maybe not as good as to some of the prior quarters in early 2023.
Okay.
And then just thinking about gross margin.
31 and change for fiscal 'twenty three.
Whats your outlook for fiscal 2004 in there or anything.
Any issues, we need to be thinking about from a cost side, whether it's rising OSB prices or some other things going on maybe maybe walk us through how youre thinking about gross margin for the full year.
Yes, I mean look I think if you go back and you look five years backwards and kind of our gross margins.
They tend to be in the higher higher <unk> versus low thirties.
So the margins look pretty strong right now.
I don't anticipate a major change between this quarter and next quarter, but I think over the long term.
I will revert closer to the high <unk> and stay.
At these levels as material prices.
Start to increase.
When you said on pricing that you guys have been holding pricing, especially on the dealer side has that continued into the first quarter and do you think.
On now the Georgia, starting to ship again, you'll be able to hold prices there too.
Yeah.
I mean look there's.
Price and volume as is.
Are related obviously Ed.
Throughout this entire slower period, and I think 2023 is a great example, could.
Could we have given homes away and really increase the throughput through the plants I'm sure I'm sure we could have but like I mentioned on the call our board wants us to be extremely bottomline focus.
And I don't I think for other manufacturers that are cutting cut.
Cutting price I mean, I don't think material costs are going down and frankly, I know labor costs aren't going down and so we're going to right size, our SG&A and right size, our overhead for a slower period.
And continue to hold price.
As the market recovers even to the detriment of volume.
Okay.
And that actually was going to be my next question on SG&A. It sounds like youre going to be doing staffing higher income staffing as you build out some some of the different portions of the business I guess.
From a total dollar standpoint should we expect that to ramp up by some percentage in 'twenty four.
More more personnel.
You know.
I think so I think it'll be a little bit higher but.
We've had.
I mean do you guys have seen the press releases and with some of the any areas. I mean, we've had a lot of turnover at the senior level, which I think.
Many cases is a good thing.
For the business long term, but what the board has said is look.
We launched you in addition to hiring young people like let's add some let's add some bench strength.
In key areas of our business because some of these some of these areas are significantly larger than when we went public and you need more senior people and so I think as we find the right people.
Well, we'll hire them and pay them well and I think the contributions will be great. We've already we've already made some great new hires at the senior level and there they are contributing so I do see.
I do see SG&A, maybe going up slightly but a lot of it is just offsetting.
Other senior people that has that have retired or moved on from the business.
Thank you and then I appreciate all the commentary on del Val, but maybe could you talk about some of the other land holdings that legacy has and what Youre thinking is on those parcels now.
Yeah.
I think I mentioned or I talked a little bit about it Jay last call I mean really what we're going through as we're prioritizing where we want to allocate capital on these developments.
And.
In many cases, we've sat on some of these things so long.
That if we don't think a project is viable for a community for us to do internally there may be a better owner of that so I think that there's a bucket of <unk>.
Properties that we could look to ultimately divest and we've held them for a long enough where you make.
Three or four times your money on the raw land.
There's a second group of properties, where over this time period that dynamics.
<unk> changed and so you've got city sewer.
Now coming to the project in the next year or so and we're looking at those and the feasibility of those projects.
As MH communities, whether it's with us or someone else.
Finalizing the development or is this.
This piece of land does it have a.
A better and higher use that we can return that we can generate returns for our shareholders Bye bye.
Having so much selling it and having somebody build stick built homes on it but our focus for all of these projects is we want to sell more manufactured homes, we want to finance more manufactured homes.
And so.
We're really we're reviewing all the from the lens of MH that is a big headwind I mean, it's the biggest headwind is where do you put them.
But we're fighting the same battles with.
You know the regulators that all of our customers are and.
But we're trying to pick our battles and we know we've got a few that makes sense.
To go ahead and take the full.
Take the full way and that's where we're allocating capital as we prioritize the other projects.
Okay, that's great and then.
The administration announced some changes to the title one program changes they've made in the long term are those changes any benefit to legacy wood wood.
It would increase title one financing.
Something of a challenge for your consumer loan book, maybe any benefit or help you saw in those recent announcements.
Yes, I don't think it's going to have a huge impact on our business like I don't think that changes cannibalize.
The.
The volume to our consumer loan business I believe all of these changes were on the FHA financing side, it's just a little bit different than what we do here, but has a longer more administratively Intel.
Intense process. So right now I don't see I don't see a big impact.
But if something changes we can talk offline.
Got it got it.
<unk>.
And then the last question I had.
We've heard from some of your competitors that.
Mortgage qualification has been getting more difficult not just because of higher rates, but now youre seeing credit card debt starting to move up other types of debt moving up and thats, causing more this qualifications for certain site built.
For certain site builders I guess are you guys seeing any of that in your consumer loan book right now.
How do you feel like the quality of the loan book has been trending through the quarter so far.
Yes.
Our loan book continues to perform really well.
We made a senior hire who had run our financing business in our industry.
And it's been working with the team and doing his analysis and he's like Mad.
Like you guys have a good formula here for underwriting and you are outperforming.
The competitors and I think the key thing with with our consumer financing portfolio.
We have a very specific.
Customer that we finance and.
We don't move on things like Downpayment, and extra just like financing storage sheds.
Septic tanks and other add ons that you ultimately can't recover.
We want to provide.
A reasonable rate and a high quality product for.
For a borrower.
But they've got to have skin in the game and I think because we haven't been to on those and we've seen a lot of others Bend on those we haven't seen large changes to to the downside and the performance of our consumer loan portfolios.
Okay. That's great. Thanks for taking all my questions.
Sure. Thanks Jay.
Thank you.
As a reminder to ask a question. Please press star one one on your telephone.
<unk> for your name to be announced to withdraw your question. Please press star one one again.
At this time I would now like to turn the conference back over to Duncan for closing remarks.
Our team won a one other thing our team is.
Is heading to the Biloxi mobile home show today through Wednesday, Kenny and I leave directly after this call. So if there are any.
Industry folks on the call who will be attending the show, we'd love to we'd love to see and spend time with you and show you. Some of the houses we have set up there.
And discuss some of the specials that we're running right now.
Thank you for joining today's earnings call. We appreciate your interest in legacy housing operator. This concludes our call.
This concludes today's conference call. Thank you for participating you may now disconnect.
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