Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion should be read in conjunction with the financial statements and accompanying notes and the information contained in other sections of this Form 10-Q. It contains forward-looking statements that involve risks and uncertainties, and is based on the beliefs of our management, as well as assumptions made by, and information currently available to, our management. Our actual results could differ materially from those anticipated by our management in these forward-looking statements as a result of various factors, including those discussed in this Form 10-Q and in our Registration Statement on Form S-1, particularly under the heading “Risk Factors.”
Overview
Legacy Housing Corporation builds, sells and finances manufactured homes and “tiny houses” that are distributed through a network of independent retailers and company-owned stores to consumers and manufactured housing communities. We are the fifth largest producer of manufactured homes in the United States as ranked by the number of homes manufactured based on information available from the Manufactured Housing Institute and the Institute for Building Technology and Safety for the twelve month period ending June 30, 2023. With current operations focused primarily in the southern United States, we offer our customers an array of quality homes ranging in size from approximately 395 to 2,667 square feet consisting of 1 to 5 bedrooms, with 1 to 3 1/2 bathrooms. Our homes range in price, at retail, from approximately $33,000 to $180,000. For the three and nine months ended September 30, 2023, we sold 643 and 2,246 home sections, respectively (which are entire homes or single floors that are combined to create complete homes). For the three and nine months ended September 30, 2022, we sold 944 and 2,947 home sections, respectively.
The Company has one reportable segment. All of our activities are interrelated, and each activity is dependent and assessed based on how each of the activities of Company supports the others. For example, the sale of manufactured homes includes providing transportation and consignment arrangements with dealers. We also provide financing options to the customers to facilitate the sale of homes. In addition, the sale of homes is directly related to financing provided by us. Accordingly, all significant operating and strategic decisions by the Company are based upon analyses of our company as one segment or unit.
We believe our Company is one of the most vertically integrated in the manufactured housing industry, allowing us to offer a complete solution to our customers, from manufacturing custom-made homes using quality materials and distributing those homes through our expansive network of independent retailers and company-owned distribution locations, to providing tailored financing solutions for our customers. Our homes are constructed in the United States at one of our three manufacturing facilities in accordance with the construction and safety standards of the U.S. Department of Housing and Urban Development (“HUD”). Our factories employ high-volume production techniques that allow us to produce, on average, approximately 70 home sections, or 60 fully-completed homes depending on product mix, per week. We use quality materials and operate our own component manufacturing facilities for many of the items used in the construction of our homes. Each home can be configured according to a variety of floor plans and equipped with such features as fireplaces, central air conditioning and state-of-the-art kitchens.
Our homes are marketed under our premier “Legacy” brand name and currently are sold primarily across 15 states through a network of 146 independent retail locations, 13 company-owned retail locations and through direct sales to owners of manufactured home communities. Our 13 company-owned retail locations, including 11 Heritage Housing stores and two Tiny House Outlet stores exclusively sell our homes. For the nine months ended September 30, 2023, approximately 49% of our manufactured homes were sold in Texas, followed by 15% in Georgia, 9% in Louisiana, 4% in Oklahoma, and 3% in Florida. For the nine months ended September 30, 2022, approximately 51% of our manufactured homes were sold in Texas, followed by 11% in Georgia, 6% in Florida, 5% in Louisiana and 5% in Arizona.
We offer three types of financing solutions to our customers. We provide floor plan financing for our independent retailers, which takes the form of a consignment arrangement or a financed sale between the retailer and us. We also provide consumer financing for our products which are sold to end-users through both independent and company-owned retail locations, and we provide financing solutions to manufactured housing community owners that buy our products for use in their manufactured housing communities. Our ability to offer competitive financing options
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at our retail locations provides us with several competitive advantages and allows us to capture sales which may not have otherwise occurred without our ability to offer consumer financing.
Factors Affecting Our Performance
We believe that the growth of our business and our future success depend on various opportunities, challenges, trends and other factors, including the following:
● We have purchased several properties in our market area for the purpose of developing manufactured housing communities and subdivisions. As of September 30, 2023, the cost of these properties include the following (dollars in thousands):
Location
Description
Date of Acquisition
Land
Improvements
Total
Bastrop County, Texas
368 Acres
April 2018
$
4,215
$
5,616
$
9,831
Bexar County, Texas
69 Acres
November 2018
842
107
949
Horseshoe Bay, Texas
133 Acres
Various 2018-2019
2,639
2,024
4,663
Johnson County, Texas
91.5 Acres
July 2019
449
-
449
Venus, Texas
50 Acres
August 2019
422
25
447
Wise County, Texas
81.5 Acres
September 2020
889
-
889
Bexar County, Texas
233 Acres
February 2021
1,550
382
1,932
$
11,006
$
8,154
$
19,160
● We also expect to provide financing solutions to a select group of our manufactured housing community-owner customers in a manner that includes developing new sites for products in or near urban locations where there is a shortage of sites to place our products. These solutions will be structured to give us an attractive return on investment when coupled with the gross margin we expect to make on products specifically targeted for sale to these new manufactured housing communities .
● Inflation most recently has been at or near its highest rate in the U.S. over the last 30 years. Our ability to maintain gross margins can be adversely impacted by sudden increases in specific costs, such as the increases in material and labor. In addition, measures used to combat inflation, such as increases in interest rates, could also have an impact on the ability of home buyers to obtain affordable financing. We continue to explore opportunities to minimize the impact of inflation on our future profitability.
● Finally, our financial performance will be impacted by our ability to fulfill current orders for our manufactured homes from dealers and customers. Our Georgia manufacturing facility has unutilized square footage available and with additional investment can add capacity to increase the number of homes that can be manufactured. We intend to increase production at the Georgia facility over time, particularly in response to orders increasingly being generated from new markets in Florida and the Carolinas. In order to maintain long term growth, we must be able to continue to properly estimate anticipated future volumes when making commitments regarding the level of business that we will seek and accept, the mix of products that we intend to manufacture, the timing of production schedules and the levels and utilization of inventory, equipment and personnel. We are actively reviewing organic and inorganic opportunities to add production capacity in attractive regions to meet future demand.
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Results of Operations
The following discussion should be read in conjunction with the information set forth in the financial statements and the accompanying notes appearing elsewhere in this Form 10-Q.
Comparison of Three Months ended September 30, 2023 and 2022 (in thousands)
Three months ended
September 30,
2023
2022
$ change
% change
Net revenue:
Product sales
$
37,008
$
48,678
$
(11,670)
(24.0)
%
Consumer and MHP loans interest
8,803
7,002
1,801
25.7
%
Other
4,126
1,645
2,481
150.8
%
Total net revenue
49,937
57,325
(7,388)
(12.9)
%
Operating expenses:
Cost of product sales
24,820
33,510
(8,690)
(25.9)
%
Selling, general administrative expenses
6,108
6,727
(619)
(9.2)
%
Dealer incentive
(5)
226
(231)
(102.2)
%
Income from operations
19,014
16,862
2,152
12.8
%
Other income (expense)
Non‑operating interest income
794
611
183
30.0
%
Miscellaneous, net
(37)
186
(223)
(119.9)
%
Interest expense
(303)
(88)
(215)
244.3
%
Total other
454
709
(255)
(36.0)
%
Income before income tax expense
19,468
17,571
1,897
10.8
%
Income tax expense
(3,380)
(2,836)
(544)
19.2
%
Net income
$
16,088
$
14,735
$
1,353
9.2
%
Product sales primarily consist of direct sales, commercial sales, inventory finance sales and retail store sales. Product sales decreased $11.7 million, or 24%, during the three months ended September 30, 2023 as compared to the same period in 2022. This decrease was driven by an industry wide decrease in unit volumes ($11.0 million), a decrease in net revenue per unit ($0.2 million) and a decrease in the conversion of certain independent dealer consignment arrangements to financing arrangements and other market factors ($0.5 million).
Net revenue attributable to our factory-built housing consisted of the following during the three months of 2023 and 2022:
Three months ended
September 30,
(in thousands)
2023
2022
$ Change
% Change
Net revenue:
Product sales
$
37,008
$
48,678
$
(11,670)
(24.0)
%
Total units sold
582
753
(171)
(22.7)
%
Net revenue per unit sold
$
63.6
$
64.6
$
(1)
(1.6)
%
For the three months ended September 30, 2023, our net revenue per unit sold decreased primarily due to changes in our product sales mix slightly offset by increases in unit prices over the same period in 2022, as rising material and labor costs were passed on to our customers. We had decreases in direct sales, inventory finance sales and retail store sales, partially offset by an increase in commercial sales and other product sales. Our commercial sales have lower margins than sales through our company-owned retail stores and our inventory financed sales.
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Consumer and MHP loans interest income grew $1.8 million, or 25.7%, during the three months ended September 30, 2023 as compared to the same period in 2022 and is related to our increase in average outstanding MHP note portfolio balance and average outstanding consumer loan portfolio balance. Between September 30, 2023 and September 30, 2022 our MHP note portfolio increased by $47.8 million and our consumer loan portfolio increased by $16.8 million.
Other revenue primarily consists of contract deposit forfeitures, dealer finance fees and commercial lease rents and increased $2.5 million, or 150.8%, during the three months ended September 30, 2023 as compared to the same period in 2022. This increase was primarily due to $2.4 million increase in forfeited deposits, a $0.2 million increase in dealer finance fees, partially offset by a $0.1 million decrease in commercial lease rents.
The cost of product sales decreased $8.7 million, or 25.9%, during the three months ended September 30, 2023 as compared to the same period in 2022. The decrease in costs is primarily related to the decrease in units sold.
Selling, general and administrative expenses decreased $0.6 million, or 9.2%, during the three months ended September 30, 2023 as compared to the same period in 2022. This decrease was primarily due to a $0.6 million decrease in warranty costs and a net $0.4 million decrease in other miscellaneous costs, partially offset by a $0.2 million increase in legal expense, and a $0.2 million increase in loan loss provision.
Dealer incentive expense decreased $0.2 million, or 102.2%, during the three months ended September 30, 2023 as compared to the same period in 2022.
Other income (expense) decreased $0.3 million, or 36.0%, during the three months ended September 30, 2023 as compared to the same period in 2022. There was an increase of $0.2 million in non-operating interest income, offset by a decrease of $0.2 million in miscellaneous income, net, and an increase of $0.2 million in interest expense.
Income tax expense was $3.4 million during the three months ended September 30, 2023 compared to $2.8 million for the same period in 2022. The effective tax rate for the three months ended September 30, 2023 was 17.4% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction, partially offset by state income taxes. The effective tax rate for the three months ended September 30, 2022 was 16.1% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction, partially offset by state income taxes.
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Comparison of Nine Months ended September 30, 2023 and 2022 (in thousands)
Nine months ended
September 30,
2023
2022
$ change
% change
Net revenue:
Product sales
$
122,505
$
155,563
$
(33,058)
(21.3)
%
Consumer and MHP loans interest
24,996
21,264
3,732
17.6
%
Other
7,929
4,637
3,292
71.0
%
Total net revenue
155,430
181,464
(26,034)
(14.3)
%
Operating expenses:
Cost of product sales
83,490
104,648
(21,158)
(20.2)
%
Selling, general administrative expenses
17,046
20,287
(3,241)
(16.0)
%
Dealer incentive
27
939
(912)
(97.1)
%
Income from operations
54,867
55,590
(723)
(1.3)
%
Other income (expense)
Non‑operating interest income
2,115
2,246
(131)
(5.8)
%
Miscellaneous, net
875
788
87
11.0
%
Interest expense
(588)
(326)
(262)
80.4
%
Total other
2,402
2,708
(306)
(11.3)
%
Income before income tax expense
57,269
58,298
(1,029)
(1.8)
%
Income tax expense
(9,885)
(10,210)
325
(3.2)
%
Net income
$
47,384
$
48,088
$
(704)
(1.5)
%
Product sales primarily consist of direct sales, commercial sales, inventory finance sales and retail store sales. Product sales decreased $33.0 million, or 21.3%, during the nine months ended September 30, 2023 as compared to the same period in 2022. This decrease was driven by an industry wide decrease in unit volumes ($26.6 million), a decrease in net revenue per unit ($1.3 million) and a decrease in the conversion of certain independent dealer consignment arrangements to financing arrangements and other market factors ($5.1 million).
Net revenue attributable to our factory-built housing consisted of the following during the nine months of 2023 and 2022:
Nine Months Ended
September 30,
(in thousands)
2023
2022
$ Change
% Change
Net revenue:
Product sales
$
122,505
$
155,563
$
(33,058)
(21.3)
%
Total units sold
1,948
2,349
(401)
(17.1)
%
Net revenue per unit sold
$
62.9
$
66.2
$
(3.3)
(5.0)
%
For the nine months ended September 30, 2023, our net revenue per unit sold decreased primarily due to changes in our product sales mix slightly offset by increases in unit prices over the first nine months of 2022, as rising material and labor costs were passed on to our customers. We had decreases in inventory finance sales, direct sales, retail store sales, and other product sales, and commercial sales were flat. Our commercial sales have lower margins than sales through our company-owned retail stores and our inventory financed sales. For the nine months ending September 30, 2023, we experienced a decrease in net revenue attributable to product sales in our Eatonton facility. We have remediated the quality and consistency issues in this facility and are increasing our sales efforts in Eatonton. We plan to meet or exceed historical levels in 2024, pending market conditions.
Consumer and MHP loans interest income grew $3.7 million, or 17.6%, during the nine months ended September 30, 2023 as compared to the same period in 2022 and is related to our increase in average outstanding MHP note portfolio balance and average outstanding consumer loan portfolio balance. Between September 30, 2023 and
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September 30, 2022, our MHP note portfolio increased by $47.8 million and our consumer loan portfolio increased by $16.8 million, both net of principal reduction.
Other revenue primarily consists of contract deposit forfeitures, dealer finance fees and commercial lease rents and increased $3.3 million, or 71.0%, during the nine months ended September 30, 2023 as compared to the same period in 2022. This increase was primarily due to $2.6 million increase in forfeited deposits, a $0.8 million increase in dealer finance fees and a $0.1 million increase in setup and service sales, partially offset by a $0.2 million decrease in portfolio fees & servicer revenue.
The cost of product sales decreased $21.2 million, or 20.2%, during the nine months ended September 30, 2023 as compared to the same period in 2022. The decrease in costs is primarily related to the decrease in units sold.
Selling, general and administrative expenses decreased $3.2 million, or 16.0%, during the nine months ended September 30, 2023 as compared to the same period in 2022. This decrease was primarily due to a $3.2 million decrease in payroll & related costs, a $0.3 million decrease in consulting and professional fees, a $0.2 million decrease in supplies and a net $0.6 million decrease in other miscellaneous costs, partially offset by a $1.1 million increase in loan loss provisions.
Dealer incentive expense decreased $0.9 million, or 97.1%, during the nine months ended September 30, 2023 as compared to the same period in 2022.
Other income (expense) decreased $0.3 million, or 11.3%, during the nine months ended September 30, 2023 as compared to the same period in 2022. There was a decrease of $0.1 million in non-operating interest income and an increase of $0.3 million in interest expense, offset by an increase of $0.1 million in miscellaneous income, net.
Income tax expense was $9.9 million during the nine months ended September 30, 2023 compared to $10.2 million for the same period in 2022. The effective tax rate for the nine months ended September 30, 2023 was 17.3% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction, partially offset by state income taxes. The effective tax rate for the nine months ended September 30, 2022 was 17.5% and differs from the federal statutory rate of 21% primarily due to a federal tax credit for energy efficient construction and partially offset by state income taxes.
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Liquidity and Capital Resources
Liquidity
We believe that cash flow from operations, cash and cash equivalents at September 30, 2023, and availability on our lines of credit will be sufficient to fund our operations and provide for growth for the next 12 to 18 months and into the foreseeable future. On July 28, 2023, we terminated our credit agreement with Capital One, N.A. and entered into a new credit agreement with Prosperity Bank that expanded and extended our credit availability (see Indebtedness , below).
Cash and Cash Equivalents
We consider all cash and highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash balances in bank accounts that may, at times, exceed federally insured limits. We have not incurred any losses from such accounts and management considers the risk of loss to be minimal. As of September 30, 2023, we had approximately $0.5 million in cash and cash equivalents, compared to $2.8 million as of December 31, 2022.
Cash Flow Activities
Nine Months Ended
September 30,
(in thousands)
2023
2022
Net cash (used in) provided by operating activities
$
(5,284)
$
790
Net cash (used in) provided by investing activities
$
(7,556)
$
17,595
Net cash provided (used in) by financing activities
$
10,568
$
(8,159)
Net change in cash and cash equivalents
$
(2,272)
$
10,226
Cash and cash equivalents at beginning of period
$
2,818
$
1,042
Cash and cash equivalents at end of period
$
546
$
11,268
Comparison of Cash Flow Activities from September 30, 2023 to September 30, 2022
Net cash used in operating activities increased $6.1 million during the nine months ended September 30, 2023, compared to the same period in 2022, primarily as a result of increased MHP originations net of collections, decreased dealer inventory loan originations net of collections, decrease in other assets, increase in prepaid expenses and other current assets, increased volume of consumer loan originations net of principal collections, decreased inventories, decrease in customer deposits, increase in accounts payable and accrued liabilities and a decrease in dealer incentive liability.
Net cash used in investing activities of $7.6 million during the nine months ended September 30, 2023 was primarily attributable to $13.9 million used for loans to third parties for the development of manufactured housing parks and $4.5M used for purchases of property, plant and equipment. This was offset by $8.5 million in proceeds from the sale of treasury notes, $1.1 million in proceeds from the sale of leased property, $1.1 million of collections related to loans to third parties for the development of manufactured housing parks and collections of $0.3 million from our purchased consumer loans.
Net cash provided by financing activities of $10.6 million during the nine months ended September 30, 2023 was attributable to net proceeds of $10.5 million on our lines of credit and $0.1 million received from the exercise of stock options. Net cash used in financing activities of $8.2 million in 2022 was attributable to net payments of $8.2 million on our lines of credit.
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Indebtedness
Capital One Revolver. On March 30, 2020, we entered into an agreement with Capital One, N.A. (“Capital One”) for a revolving line of credit (“Revolver”). The Revolver had a maximum credit limit of $70,000 and a maturity date of March 30, 2024.
On June 21, 2022, we received a Reservation of Rights notice from Capital One. The letter stated that our Revolver was in default. The default condition occurred due to our failure to timely file the Form 10-K and deliver certain financial statements to Capital One. On July 28, 2022, we entered into a Limited Waiver and First Amendment to Credit Agreement (the “Amendment”) with Capital One, N.A. The Amendment replaced the LIBOR borrowing rate with a secured overnight financing rate (“SOFR”) and waived a default arising out of a monetary judgement against the Company that exceeded the amount allowed in the Revolver.
On August 24, 2022, we received a Notice of Default and Partial Suspension of Loan Commitments from Capital One. The notice stated that the July 28, 2022 forbearance agreement had been terminated and that Capital One was suspending $50,000 of the $70,000 loan commitment under the Revolver. As a result, the available line of credit in the Revolver was limited to $20,000.
The Revolver accrued interest at one-month SOFR plus 2.00%. Amounts available under the Revolver were subject to a formula based on eligible consumer loans and MHP Notes and were secured by all accounts receivable, consumer loans and MHP Notes. In connection with the Revolver, we paid certain arrangement fees and other fees of approximately $295, which were capitalized as unamortized debt issuance costs and were amortized to interest expense over the life of the Revolver. The Revolver required the Company to comply with certain financial and non-financial covenants.
On July 28, 2023, upon entry into the New Revolver described below, the Capital One Revolver was repaid in full, and all commitments thereunder were terminated.
Prosperity Revolver. On July 28, 2023, the Company entered into a new Credit Agreement (the “New Revolver”), by and among the Company as borrower, the financial institutions from time to time party thereto, as lenders, and Prosperity Bank as administrative agent. The New Revolver provides for a four-year senior secured revolving credit facility with an initial commitment of $50,000,000 and an additional $25,000,000 commitment under an accordion feature. The New Revolver is secured by the Company’s consumer loans receivables and all escrow accounts associated with the consumer loans receivables. At the Company's option, borrowings will bear interest at a per annum rate equal to, (i) Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 2.5% or 2.75% based upon the Company's average quarterly borrowings under the New Revolving Credit Agreement or (ii) a base rate plus an applicable margin of 2.5% or 2.75% based upon the Company's average quarterly borrowings under the New Revolver. The Company paid certain arrangement fees and other fees in connection with the New Revolver of approximately $271, which were capitalized as unamortized debt issuance costs and are amortized to interest expense over the life of the New Revolver. The New Revolver matures July 28, 2027.
For the three months ended September 30, 2023, interest expense under the Revolver and New Revolver was $302, and for the three months ended September 30, 2022, interest expense under the Revolver was $87. For the nine months ended September 30, 2023, interest expense under the Revolver and New Revolver was $588 and for the nine months ended September 30, 2022, interest expense under the Revolver was $326, respectively. The outstanding balance of the New Revolver as of September 30, 2023 was $13,013, and the outstanding balance of the Revolver as of December 31, 2022 was $2,545. The interest rate in effect as of September 30, 2023 for the New Revolver was 7.95% and the interest rate in effect as of December 31, 2022 for the Revolver was 6.12%. The amount of available credit under the New Revolver was $36,987 as of September 30, 2023 and the amount of available credit under the Revolver was $17,400 as of December 31, 2022. The New Revolver requires the Company to comply with certain financial and non-financial covenants. As of September 30, 2023, the Company was in compliance with all financial covenants, including that it maintain a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.
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Contractual Obligations
The following table is a summary of contractual cash obligations as of September 30, 2023:
Payments Due by Period (in thousands)
Contractual Obligations
Total
2023
2024 - 2025
2026 - 2027
After 2027
Lines of credit
$
13,013
—
—
13,013
—
Operating lease obligations
$
2,086
151
1,014
776
145
Off Balance Sheet Arrangements
We did not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, net sales, results of operations, liquidity or capital expenditures. However, we do have a repurchase agreement with a financial institution that provides inventory financing for independent retailers of our products. Under this agreement, we have agreed to repurchase homes at declining prices over the term of the agreement (24 months). Our obligation under this repurchase agreement ceases upon the purchase of the home by the retail customer. The maximum amount of our contingent obligations under such repurchase agreements was approximately $4,767 and $8,925 as of September 30, 2023 and December 31, 2022, respectively, without reduction for the resale value of the homes. We may be required to honor contingent repurchase obligations in the future and may incur additional expense as a consequence of these repurchase agreements. We consider our obligations on current contracts to be immaterial and accordingly we have not recorded any reserve for repurchase commitment as of September 30, 2023.
Critical Accounting Estimates
Critical accounting estimates are those that we believe are both significant and require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and we might obtain different estimates if we used different assumptions or conditions. Our critical accounting estimates are identified and described in our Annual Report on Form 10-K for the year ended December 31, 2022. Subsequent to the filing of our Annual Report, we adopted FASB’s ASC 326 for determining Current Expected Credit Losses. In connection with this adoption, we implemented certain changes to our processes and controls related to our methods for estimating allowances for credit losses.
Recent Accounting Pronouncements
For information regarding recent accounting pronouncements, see Note 1 – Nature of Operations, Recent Accounting Pronouncements to our September 30, 2023 Condensed Financial Statements, included in Part I, Item 1, Financial Statements (Unaudited), of this Quarterly Report.
Emerging Growth Company Status
We are an “emerging growth company,” as defined in the JOBS Act. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of these exemptions until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of this exemption. We expect our status as an emerging growth company to end on December 31, 2023, five years from our initial public offering.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
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