Financial Data and Key Metrics Changes - Normalized FFO for Q1 2025 was $0.23 per diluted share, up 5% from $0.22 per diluted share in Q1 2024 [6][18] - Rental and related income increased by 8% to $54.6 million compared to $50.3 million a year ago [18] - Community NOI increased by 8% from $30 million in 2024 to $32.5 million in 2025 [19] Business Line Data and Key Metrics Changes - Same property occupancy increased by 113 units year-to-date and 227 units over the first quarter of last year [8] - Gross home sales for the quarter were $6.7 million, down approximately 9.5% from $7.4 million last year, primarily due to the liquidation of inventory at a sales center [9] - The rental home occupancy rate increased from 94% at year-end to 94.6% at the end of Q1 [12] Market Data and Key Metrics Changes - The company has over $45 million invested in expansions that are not yet generating expected yields [11] - The company anticipates the development of over 150 sites this year in markets with high occupancy levels and rental rates [10] - The total market capitalization increased by 18% to approximately $2.5 billion at quarter-end compared to $2.1 billion last year [21] Company Strategy and Development Direction - The company plans to continue increasing earnings and value through the occupancy of 3,400 vacant sites and the development of 2,400 acres of vacant land [7][16] - The company is focused on addressing the affordable housing crisis and believes its vacant sites and land are key to driving organic growth [28][30] - The company is exploring selling vacant land to single-family homebuilders or for other higher and better uses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for affordable housing and the potential for increased occupancy and sales [27][29] - The company is monitoring the impact of tariffs and geopolitical issues but currently sees minimal impact on operations [15] - Management believes the fundamentals of manufactured housing are strong and the company is well-positioned for growth [16][29] Other Important Information - The company has a strong balance sheet and is prepared to execute on compelling acquisitions as they become available [16][27] - The company has a proven track record of executing its business plan, with a total shareholder return of approximately 30% in 2024 [15] Q&A Session Summary Question: What are the rent growth expectations for this year? - Management confirmed they still expect to achieve a 5% rent increase throughout the year due to strong demand [34][35] Question: Are home prices up compared to pre-orders due to tariffs? - Prices have increased slightly by 3% to 5%, but supply chain disruptions are a bigger concern [36][37] Question: What refinancing rates are expected? - Anticipated rates for refinancing are around 5.5% to 5.75% [38] Question: Are there notable upward pressures on real estate taxes? - There has been a small increase in real estate taxes, and management is working on potential appeals [41][43] Question: How are solar shingle homes being received? - Initial demand for solar shingle homes is strong, with several already occupied [44][45] Question: What are the gross margins on new versus used home sales? - Sales are strong, particularly due to downsizing trends among older individuals [57][61] Question: Are there larger acquisition opportunities available? - Management indicated that there are opportunities due to many new entrants in the market who may not be well-informed [72] Question: How does GSE financing work for communities with rentals? - GSE financing currently includes income from the site but not the homes themselves, impacting LTV [94][96]

Core Insights - Patrick Industries, Inc. reported a 7% increase in net sales to $1.0 billion for Q1 2025, driven by strong demand in the RV and Manufactured Housing markets, which offset declines in Marine and Powersports sectors [3][7] - Operating income rose approximately 10% to $66 million, with an operating margin of 6.5%, reflecting a slight increase from the previous year [4][7] - Net income increased by 9% to $38 million, or $1.11 per diluted share, although adjusted diluted earnings per share decreased from $1.19 to $1.11 due to dilution from convertible notes [5][7] Financial Performance - Net sales reached $1.0 billion, a $70 million increase from Q1 2024, with RV revenue growing by 14% and Housing revenue by 7%, while Marine and Powersports revenues declined by 4% and 2%, respectively [3][7] - Operating income was $66 million, up from $59 million in the prior year, with an operating margin of 6.5%, a slight increase from 6.4% [4][7] - EBITDA increased by 9% to $108 million, while adjusted EBITDA rose by 4%, with an adjusted EBITDA margin of 11.5% [7][24] Cash Flow and Capital Allocation - Cash flow from operating activities grew to $40 million compared to $35 million in Q1 2024, with free cash flow on a trailing twelve-month basis at $251 million [9][25] - The company returned over $22 million to shareholders through share repurchases and dividends, maintaining a total net liquidity of $745 million at the end of Q1 [10][11] - Long-term debt increased by approximately $110 million due to acquisitions, resulting in a total net leverage ratio of 2.7x [9][11] Market Sector Performance - Revenue breakdown for Q1 2025: RV (48% of revenue), Housing (29%), Marine (15%), and Powersports (8%) [8] - The RV market saw a 14% increase in revenue, while the Marine sector experienced a 2% decline [13] - Estimated content per wholesale RV unit remained flat at $4,870, while content per wholesale MH unit increased by 4% to $6,671 [13] Strategic Initiatives - The company completed acquisitions of Elkhart Composites and Medallion Instrumentation Systems, enhancing its product offerings and market position [6][10] - Ongoing investments in automation, new product development, and strategic acquisitions are aimed at strengthening customer service and capturing market opportunities [6][14] - The company remains focused on maintaining financial strength and flexibility to navigate macroeconomic uncertainties while driving long-term shareholder value [12][14]

Core Viewpoint - Legacy Housing Corporation is set to release its financial results for Q1 2025 on May 12, 2025, followed by a conference call on May 13, 2025 [1] Company Overview - Legacy Housing Corporation specializes in building, selling, and financing manufactured homes and tiny houses, distributed through independent retailers and company-owned stores [3] - The company is one of the largest producers of manufactured homes in the United States, primarily operating in the southern region [3] - Legacy offers a variety of homes ranging from approximately 395 to 2,667 square feet, with configurations of 1 to 5 bedrooms and 1 to 3.5 bathrooms [3] - Retail prices for these homes range from approximately $33,000 to $180,000 [3]

Financial Data and Key Metrics Changes - Normalized FFO for Q4 2024 was $0.24 per share, up 4% from $0.23 per share in Q4 2023. For the full year, normalized FFO was $0.93 per share, an 8% increase from $0.86 in 2023 [9][25] - Rental and related income for Q4 2024 increased to $53.3 million, an 8% rise from $49.2 million in Q4 2023. For the full year, it rose from $189.7 million in 2023 to $207 million in 2024, a 9% increase [26] - Community NOI for Q4 2024 was $31.1 million, up 8% from $28.7 million in Q4 2023, and for the full year, it increased from $108.4 million in 2023 to $119.7 million in 2024, a 10% increase [28] Business Line Data and Key Metrics Changes - Same property income increased by 8% for Q4 and 9% for the full year, with same property NOI growth of 8% for Q4 and 10% for the year [14][28] - The rental home program added 565 homes in 2024, with a target of adding 800 homes in 2025. The current occupancy rate for rental homes is 94% [15][29] - Gross sales for the year reached $33.5 million, an 8% increase from $31.2 million in 2023, with a gross sales margin of 35% [17] Market Data and Key Metrics Changes - The company anticipates further occupancy growth in 2025 as it rents and sells its in-place inventory and continues to achieve 5% rent increases across the portfolio [15] - The acquisition pipeline has grown, with four communities under contract, totaling 457 sites, with a purchase price of $39.1 million [19][20] Company Strategy and Development Direction - The company has a long-term value-add business plan, focusing on generating future income through vacant land and new home setups [11][23] - The company aims to provide affordable housing solutions and has been actively involved in upgrading and expanding its communities [37][41] - The company is optimistic about acquiring communities at reasonable prices due to the prolonged high-interest rate environment [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving similar or improved same property operating results in 2025, driven by occupancy growth and rental home additions [15][36] - The company is well-positioned to execute on acquisition opportunities and anticipates a strong year in 2025 [42][41] Other Important Information - The company ended the year with $99.7 million in cash and cash equivalents and $260 million available on its credit facility [29] - The total market capitalization increased to approximately $2.5 billion at year-end, up 23% from the previous year [33] Q&A Session Summary Question: Can you provide more details on the four acquisitions under contract? - The company has four communities under contract, two in New Jersey and two in Maryland, with a total purchase price of $39.2 million. The New Jersey communities are 100% occupied, while one Maryland property has a value-add opportunity [44][46] Question: What interest rates are expected for refinancing with Fannie Mae? - The company expects refinancing rates to be in the 5.5% to 5.75% range, with proceeds exceeding current balances [51] Question: What are the key factors affecting the 2025 guidance range? - Home sales and acquisitions are the primary factors influencing the guidance range [61] Question: How confident is the company in achieving the target of 800 new rental homes? - The company is optimistic about achieving this target due to better inventory management and strong demand in key markets [90] Question: What is the anticipated impact of potential changes in financing laws? - Changes in financing laws could significantly increase home sales, as more renters may transition to homeowners [103] Question: What is the expected stabilized return on the acquisition pipeline? - The expected stabilized return on the acquisition pipeline is in the 6.5% to 7% range over five years [133]

Financial Data and Key Metrics Changes - Normalized FFO for Q4 2024 was $0.24 per share, up 4% from $0.23 in Q4 2023. For the full year, normalized FFO was $0.93 per share, an 8% increase from $0.86 in 2023 [6][20] - Rental and related income for Q4 2024 increased by 8% to $53.3 million from $49.2 million in Q4 2023. For the full year, it rose 9% to $207 million from $189.7 million in 2023 [20][21] - Community NOI for Q4 2024 was $31.1 million, an increase of 8% from $28.7 million in Q4 2023, and for the full year, it increased by 10% to $119.7 million from $108.4 million in 2023 [21][22] Business Line Data and Key Metrics Changes - Same property income increased by 8% in Q4 and 9% for the year, with same property NOI growth of 8% for Q4 and 10% for the year [10][22] - The rental home program added 565 homes in 2024, bringing the total to 10,300 rental homes, with a 94% occupancy rate [12][20] - The sales division achieved gross sales of $33.5 million in 2024, an 8% increase from $31.2 million in 2023, with a gross sales margin of 35% [13] Market Data and Key Metrics Changes - The company anticipates further occupancy growth and 5% rent increases across the portfolio in 2025 [11] - The acquisition pipeline includes four communities under contract, with a total purchase price of $39.1 million [15][33] - The company ended 2024 with $99.7 million in cash and cash equivalents, and $260 million available on its credit facility [22] Company Strategy and Development Direction - The company aims to balance growth with earnings accretion, focusing on value-add strategies to improve occupancy and revenue [9][10] - There is a strong emphasis on providing affordable housing solutions, with plans to develop and rehabilitate older communities [28][30] - The company is optimistic about acquiring communities at more reasonable prices due to the prolonged high interest rate environment [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving similar or improved same property operating results in 2025 [11] - The company is well-positioned to execute on acquisition opportunities as they arise, with a strong balance sheet supporting growth [19][30] - Management highlighted the importance of long-term patient capital to upgrade existing communities and increase development pace [30] Other Important Information - The company has a history of increasing dividends, with a 19% increase since 2020 [18] - The total market capitalization at year-end was approximately $2.5 billion, a 23% increase from the previous year [24] Q&A Session Summary Question: Can you provide more details on the four acquisitions under contract? - The four communities under contract include two in New Jersey and two in Maryland, with a total of 266 sites, all 100% occupied. The purchase price is $24.6 million for the New Jersey properties [32][33] Question: What interest rates should be expected for refinancing with Fannie Mae? - The company anticipates refinancing at rates between 5.5% and 5.75% [38] Question: What factors influenced the G&A increase in Q4? - G&A increased primarily due to additional bonuses accrued for strong operating results, with an overall increase of about 8% [41][42] Question: What are the key factors for the high end of the 2025 guidance range? - The main factors are home sales and acquisitions, with expectations of exceeding the four acquisitions discussed [46][47] Question: What is the expected average price per rental home being purchased? - The average price for rental homes is around $60,000 to $65,000, with setup costs bringing the total to approximately $70,000 to $75,000 [56] Question: How does the company view the potential for increased home sales with changes in financing laws? - Management believes that potential changes in financing laws could significantly increase home sales, as many renters may wish to transition to ownership [80]