Good day, and thank you for standing by. Welcome to Legacy Housing Corporation second quarter 2026 earnings call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Jon. Please go ahead. Good morning, and thank you for joining Legacy Housing second quarter 2026 conference call. I'm Jon Langbert, the Chief Financial Officer. Our CEO, Kenneth E. Shipley, is also on the line and will join me for the question and answer session following our prepared remarks. Before we get into the quarter, I want to briefly note a leadership change. In July, Curt Hodgson retired as Executive Chairman and from our board of directors after decades building Legacy alongside Kenny, from a Texas partnership into one of the largest producers of manufactured homes in the country. Curt is the reason I joined Legacy. I have known him personally for more than 20 years, and I have learned an immense amount from him about this business and about business in general. I will always be grateful to him. Kenny continues to lead the company as Chief Executive Officer, and he will share a few thoughts on Curt at the close of our prepared remarks. Before we begin those remarks, I will read our safe harbors disclosure. 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. We refer you to a more detailed discussion of the risks and uncertainties in the company's quarterly report on Form 10-Q filed yesterday with the Securities and Exchange Commission, and in our most recent annual report on Form 10-K. Any projections as to the company's future performance represent management's estimates as of today's call. Legacy Housing assumes no obligation to update these projections in the future unless otherwise required by applicable law. With that, let's get into the numbers. Total net revenue for the quarter was $66.3 million, up 32.3% from $50.2 million a year ago. Net income grew to $23.5 million from $14.7 million, an increase of nearly 60%, and diluted earnings per share came in at $0.99, up from $0.60 in the second quarter of 2025. Net income was a record for the company, and I will walk you through the drivers. Product sales were $53.8 million, up 40%. We shipped 718 units in the quarter versus 564 a year ago, up 27.3%. Net revenue per unit rose to roughly $74,900 from $68,100, reflecting a shift in product mix toward higher value homes. The single biggest driver was the commencement of deliveries under our large workforce housing order. We shipped 113 units this quarter against a 380-unit contract. We also saw strength in commercial sales to mobile home parks, which were up about 12.5%. Those gains were partially offset by inventory finance sales, which were down about $10.1 million, or 74%, as our dealers continued to work through existing inventory on their lots, and by modestly lower direct and retail store sales. Loan portfolio interest income was $11.5 million, up 5.4%, with the growth driven primarily by our consumer book. At quarter end, the consumer loan portfolio stood at approximately $202.2 million, notes receivable from mobile home parks at approximately $209 million, and dealer inventory finance receivables at approximately $23.2 million. On the expense side, cost of product sales rose 29.2%, in line with higher unit volumes, including deliveries under the Workforce Housing Order. Selling, General, and Administrative expense was $6.9 million, up 21.1%, driven mainly by higher professional and consulting fees, higher Heritage Housing payroll, and higher service and warranty costs, partially offset by lower incentive compensation and property taxes. Beginning this quarter, we present the provision for loan loss as a separate line item rather than within SG&A. On that basis, the provision was a benefit of about $600,000 this quarter, compared with an expense of $1.1 million a year ago, reflecting favorable portfolio performance. On taxes, our effective rate for the quarter was 11.2% versus 17.3% a year ago, and the 21% statutory rate. The lower rate reflects the Federal Energy-Efficient Home Tax Credit, known as Section 45L, as well as the reversal of certain uncertain tax position accruals during the quarter. As a reminder, the Section 45L credit terminated on June 30th of this year under last year's tax legislation. We expect our effective tax rate to move closer to the statutory rate in the second half of the year. Our balance sheet remains in excellent shape. We ended the quarter with $29 million in cash, up from $8.5 million at year-end, and we generated $24.4 million of operating cash flow in the first half of the year, up from $11 million a year ago. That increase was driven by our stronger earnings and by a $10.7 million increase in customer deposits, which includes the roughly $7.1 million non-refundable advance we received in the first quarter on that Workforce Housing Order. Inventories rose to $43.9 million from $39.9 million at year-end, primarily in finished goods to support continued production, including units remaining to be delivered under the Workforce Housing Order. Our $50 million Prosperity Bank revolver had no borrowings outstanding at quarter end. We paid down the small balance carried at year-end, leaving essentially the full facility available. We remain in compliance with all financial covenants. Total stockholders' equity finished the quarter at $562.2 million, up from $528.6 million at year-end, and book value per share was $23.64. Credit quality across the loan portfolios remains solid. The clear highlight of the quarter was the start of deliveries under our large Workforce Housing Order. This is a 380-unit contract, and we shipped 113 units during the second quarter, with deliveries expected to continue throughout the remainder of 2026. We're seeing significant interest in workforce housing across our markets. In addition to our traditional oil field housing, new opportunities tied to data center construction projects. Given the number of projects underway or planned in our regions, we believe there is meaningful potential for additional orders of this type. We'd also credit our sales organization directly here. The team continues to raise its game, bringing in more and higher quality leads than we've worked in the past, and that is building an increasingly healthy order book heading into the second half. Our principal near-term constraint on converting that opportunity is securing and retaining enough trained labor, and management is implementing new recruiting and retention programs to expand and stabilize our skilled workforce. Our loan portfolios continue to be a stable, growing source of interest income. Consumer loan portfolio interest income grew again this quarter. Credit quality remains solid across all portfolios, and we have not seen deterioration that would change our reserving posture. On capital allocation, with our balance sheet carrying $29 million of cash and essentially no debt, we remain well-positioned to fund growth, and we continue to view share repurchases as a sensible use of capital when our stock trades near book value. One important development this summer came out of Washington. In July, the 21st Century ROAD to Housing Act was signed into law, the most significant federal housing affordability legislation in decades, and one that we view as meaningfully favorable to our industry. Among other things, it eliminates the longstanding permanent chassis requirement for HUD code homes, directs HUD to modernize construction standards, raises FHA-insured loan limits for manufactured housing, and reauthorizes grant funding that supports manufactured home communities. Taken together, we believe these measures should, over time, expand where our homes can be placed and improve financing access for our customers. It's still early, and we don't know which of these changes we'll ultimately be able to take advantage of. Some of the new possibilities, such as building duplexes or two-story units, come with their own set of opportunities and challenges that we're still working through. What we can say is that there was nothing in this legislation that is negative for Legacy, and the overall policy direction is clearly supportive of factory-built affordable housing, which is exactly the market we serve. Tariff rates were relatively stable this quarter, which helped us forecast input costs, and we received about $700,000 of tariff refunds following the Supreme Court's ruling on the IEEPA tariffs, which benefited gross margin. That said, effective rates on most Chinese origin goods remain well above pre-2025 levels, and we continue to mitigate through supplier diversification, more domestic sourcing, and selective price adjustments. A quick update on the Americasa litigation. By way of background, Americasa is a manufactured housing business whose assets we acquired in late 2025. In March, we filed suit against the sellers over alleged misrepresentations and post-closing misappropriation of receipts connected to that acquisition. The case is now in the Texas Business Court, and the sellers have filed counterclaims that we believe are without merit. It's early, and we can't yet predict an outcome, but depending upon how it develops, there could be adjustments to the provisional acquisition accounting in a future period. Separately, we wrote off our roughly $560,000 minority investment in an affiliated entity, Corpus Americasa, during the quarter. The full detail is in notes 13, 16, and 17, and in the Legal Proceedings section of our 10-Q. One other item. We hold a roughly $48.6 million note from a group of mobile home park borrowers that matured in July and was not repaid in full. Since quarter end, we've received a $2 million principal paydown and agreed to a modification, a short forbearance, an 18-month interest-only period, and then amortizing payments at a market rate, along with additional collateral and an increased personal guarantee. Based on the collateral, we do not expect to recognize a loss, and we're finalizing the documentation right now. This is covered in notes four and 17 of the 10-Q. To sum up, this was a record quarter for net income at Legacy. Net revenue was up 32%, net income was up nearly 60% to a company record $23.5 million, and diluted earnings per share was $0.99. We generated $24.4 million of operating cash flow in the first half, and we ended the quarter with $29 million of cash, essentially no debt, $562 million of stockholders' equity, and a fully available revolver. The workforce housing order is delivering on schedule. Our sales pipeline is building, and we see real opportunity ahead, including in workforce housing for data center projects. Our loan portfolios remain a dependable, growing source of interest income, and our balance sheet gives us the flexibility to invest behind that growth. As Curt often reminded us, Legacy has never had a losing quarter in its history, and the second quarter of 2025 keeps that streak going. We're grateful for the foundation Curt and Kenny built. We're conservatively capitalized, and we're focused on long-term value creation as affordable housing becomes ever more important to U.S. consumers and policymakers. That concludes our prepared remarks. Before we move to questions, Kenny, our Co-founder and Chief Executive Officer, would like to say a few words. Hey, thanks Jon. I want to say a few words about my friend and business partner for more than 40 years, Curt Hodgson. For just about the entire time that me and Curt were together, most people didn't even know our last names. I think they just either knew us as Curt and Kenny or Kenny and Curt. Curt swore up and down for the whole time that he was done at 70. I think we just got lucky, and we squeezed out an extra couple of years out of him, and of course, it paid off. Anything Curt did was profitable. Curt and I built the business from the ground up, and we did it hands-on operations over the years. The two of us personally climbed in and out of literally thousands of units. I'm really proud of everything that me and Curt built together. We've manufactured for FEMA shelters, for families, hurricane victims. We've built for everything that you could build for in this industry. We've had our hands in every part of this industry, whether it was mobile home parks or trucking or building or selling. We've done it all. Many of the first-time homebuyers who would have never had an opportunity to own a home have gotten that opportunity from our finance programs that we've put in place. That's the legacy that Curt leaves behind, and it's a good one. He's earned his retirement, Chance, and man, everybody at Legacy wishes him the very best. I hope he's happy in his retirement, and we're still friends. I just got the most respect you could ever have for anybody. I've got that for Curt. I'd like to, maybe he's on listening, he probably is, thank him for everything he's done for the company and for me personally. He's been a great friend. That pretty much sums it up for me. We're going to continue to work Legacy and make it profitable. Thank you very much. Okay. Thanks, Kenny. With that, Lisa, let's open up the line for Q&A. Kenny and I will both be available to respond. Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone. You'll hear the automated message advising your hand is raised. If you would like to remove yourself, please press star one one again. We ask that you wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. Our first question's coming from the line of Rohit Seth of B. Riley. Please go ahead. Hey, this is Rohit Seth at B. Riley. Thanks for taking my question. Good quarter, guys, in the workforce housing. Just curious, is the backlog on the workforce housing the 267 units, or is that increasing since you put out the number? I'll take that question. We've really beefed up our sales department. We've got a backlog of more than just workforce housing. We've beefed up in Georgia's sales force. We've beefed up Texas, and we've got some really good people, including Jon Langbert on here. He's been a good, great find for us. Curt knew him and believed in him, and we brought him on. In that backlog, there's more than just workforce housing. We've done a good job penetrating the park business. These guys have just been on fire. We're starting to penetrate more of the independent dealer business. We've got a healthy backlog everywhere right now. Okay. The workforce housing, the pricing on that was phenomenal. It was under $2,000 or whatnot. Do you expect that to be the same for the remaining backlog? Yeah. Depends on what we build. It's all about square footage and everything. Some of the stuff that we're building for the workforce housing is harder to build than the normal stuff. We go through some extra steps. The stuff that we built previously has been just extremely heavy. We had to increase axles on everything. There's more cost in building what we've been building. In the queue, it mentioned that Georgia had some room to grow, and you're looking at potential to expand over there. Prior calls had talked about there not being enough volume. I just want to know, has something changed? Are you guys looking at restaffing Georgia and ramping up given the strength in the workforce housing? Yeah. Like I said earlier, we beefed up our sales departments in Georgia and Texas. We're building there also, we've got some backlog there, a lot of deals cooking, whether it's independent dealers, putting on new dealers. We've gotten some park business going on up there, we've got a little bit of workforce housing. We're working hard to get that beefed up and going. Okay. I guess, last quarter, it was more of Georgia, you're looking at strategic options. I guess, is that taken off the table? I'm sorry, repeat that. In the last call, you guys had mentioned that the volumes weren't there and profitability wasn't there, something would have to change. So you're starting to see that one start to rebuild? You're starting to see orders come out of there? Yeah. Absolutely. Yeah. Yeah. We dust ourselves off, and we got up out of the dirt, dust ourselves off, and like I said, we beefed up the sales department, and we went back to selling and trying to get it going. We've got some backlog right now and some business working. All right. Fantastic. Well, good luck for the second half. Thank you. Thank you. If you'd like to ask a question, please press * one one on your telephone. One moment for the next question. Our next question's coming from the line of Alex Rygiel of Texas Capital Securities. Please go ahead. Thank you. Excellent quarter, everyone. Thank you. John or Kenny, could you update us a little bit on the potential to monetize some land assets, in particular Bastrop County? You've been investing a fair amount on improvements there. Where does that site stand as it relates to delivering homes to it? Maybe update us on some of the other real estate assets you own. Appreciate you calling, Alex. I've been spending a little bit of time up there. I've been up there just in the past two weeks, I think two or three times. The project is a great project. It's an unbelievable deal. If you're ever up that way, you need to go visit. It's unbelievable. We're getting really close. When you're dealing with governmental officials and you're dealing with engineers, everything is mañana. Everything. It's a hurry-up-and-wait situation. I think we're close to getting the DOT driveway in, the final plat has got to be filed. I think that gets the door open. The sewer treatment plant is actually being built, I don't think it's going to be a hold-up from what I'm told now. It wouldn't be the first time that we've got the rug pulled out from underneath our feet on this deal. Kurt had an incredible vision on this project, he spent a lot of time, he worked his tail off on it. Probably, if we hadn't have done this, I'd have got another three years out of him. It'll age you working this deal, just waiting on and dealing with these governmental officials. They're not motivated to let anybody make any money. Their motivation is to figure out a way to keep you out or add something to your list because they think that's how their job's supposed to go. I think we're getting real close. I could see us being in there before the end of the year with houses. I think the need is still there in Austin. I drove a couple of other parks, they're full. There's no place to put the houses there. I think it's going to be an incredible opportunity for us. Anyway. On the bright side, the fact that it's taken so long to get the project to near where we could start selling lots, is that the value of those lots has appreciated well ahead of the rate of inflation. That area of Austin has just really been booming. It's kind of a silver lining to that cloud. Wonderful. John, if we just do the math and we look at the revenue that you broke out for workforce housing, and we look at the 113 units, the ASP per unit's pretty high. Is there some other kind of revenue from payment that's coming through the P&L there? Are these units three, four times bigger than what your traditional unit looks like? These are large units, and as Kenny mentioned, they have some features that are non-standard that add to your revenue per square foot. You also oftentimes have customers who are in the oil business and data centers are motivated by your speed of delivery, and will compensate you for that. Is that kind of where you're headed? Yep, super. Also very helpful. Lastly, John, are there any other ways that you can kind of either trim back costs or be more creative on driving price using different AI tools maybe that you're working on internally that could help you longer term? I'm glad you asked that. I came on in December as CFO, and one of the first things I recognized was Legacy is hugely profitable, but sometimes you rest on your laurels. It's an old line manufacturing and sales business. What I wanted to do was bring in some of those AI tools, and we've created a financial analysis department and brought in four analysts who are doing a great job. Even as we speak right now, they are out in the Fort Worth plant, working on our bills of material, what we call BOMs, in the business, and going down to the stud on pricing. They are looking at it not just from the traditional sense of what's the cost per square foot for labor and materials for each of our models, but they're looking at the assembly process and saying, "Where can we apply technology?" There might be capital expense or capital investment opportunities there because we have such a strong balance sheet, but also, where does AI work in that system? Everything from we're replacing the software on our front end, our sales software, so that it's more effective. We can quote faster on through the manufacturing process and then out through financing. How can we more quickly and effectively underwrite? We have AI tools that we've already implemented in a couple of places, and then all the way at the end of the life cycle, the part we don't like to talk about, repos. We've got a new AI tool we just put in place last month to go out into the market, check pricing, and more accurately price our repos so they sell quickly without leaving money on the table. Yes, we are absolutely adding technology where we can through the entire production cycle. Great. Thank you. Nice quarter. Thanks. Thank you. There are no more questions in the queue. I would like to turn the call back over to John for closing remarks. Please go ahead. Well, thank you all for joining us today and your continued interest in Legacy Housing. We look forward to updating you next quarter. This concludes today's programming. You may now disconnect.