COLUMBUS, Ohio, April 24,
2024 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO)
announced results for the three months ended March 31, 2024.
2024 First Quarter Highlights:
- New contracts increased 17% to 2,547
- Homes delivered increased 8% to 2,158, a first quarter
record
- Revenue increased 5% to $1.05
billion, a first quarter record
- Pre-tax income increased 33% to $180.2
million, 17.2% of revenue and a first quarter record
- Net income increased 34% to a first quarter record $138.1 million ($4.78 per diluted share)
- Shareholders' equity reached a record of $2.6 billion, a 21% increase from a year ago,
with book
- value per share of $95
- Backlog sales value increased to $1.8 billion, up 4%
- Return on equity of 21%
The Company reported record first quarter pre-tax income of
$180.2 million and record first
quarter net income of $138.1 million,
or $4.78 per diluted share. This
compares to pre-tax income of $136.0
million and net income of $103.1
million, or $3.64 per diluted
share, for the first quarter of 2023.
Homes delivered in 2024's first quarter increased 8% to 2,158
homes, a first quarter record for the Company. This compares to
2,007 homes delivered in 2023's first quarter. New contracts for
the first quarter of 2024 increased 17% to 2,547 compared to 2,171
in 2023. Homes in backlog at March 31, 2024 had a total sales
value of $1.8 billion, a 4% increase
from a year ago. Backlog units at March 31, 2024 increased 3%
to 3,391 homes, with an average sales price of $528,000. At March 31, 2023, backlog sales
value was $1.7 billion, with backlog
units of 3,301 and an average sales price of $522,000. M/I Homes had 219 communities at
March 31, 2024 compared to 200 communities at March 31,
2023. The Company's cancellation rate was 8% in the first quarter
of 2024 compared to 13% in the first quarter of 2023.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had an exceptional
first quarter - setting first quarter records in homes delivered,
revenue, and income. In addition, we were very pleased with our new
contracts increasing by 17%, as well as producing strong margins
and returns. Our homes delivered increased 8% to a record 2,158,
revenue increased 5% to a record $1.05
billion and our gross margins improved by 360 basis points
to 27%. This resulted in pre-tax income increasing by 33% to a
first quarter record of $180.2
million, 17.2% of revenue, and a 21% return on equity."
Mr. Schottenstein continued, "Our financial condition is
excellent. We ended the quarter with record shareholders' equity of
$2.6 billion, book value of
$95 per share, cash of $870 million, zero borrowings on our $650 million credit facility, and a homebuilding
debt to capital ratio of 21%, and net-debt-to-capital ratio of
negative 7%. Given our performance in the first quarter of 2024,
our diverse product offerings and well-located communities, we are
positioned to have a strong 2024."
The Company will broadcast live its earnings conference call
today at 10:30 A.M. Eastern Time. To
listen to the call live, log on to the M/I Homes' website at
mihomes.com, click on the "Investors" section of the site, and
select "Listen to the Conference Call." A replay of the call
will continue to be available on our website through April 2025.
M/I Homes, Inc. is one of the nation's leading homebuilders of
single-family homes. The Company has homebuilding operations in
Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota, Fort
Myers/Naples and
Orlando, Florida; Austin, Dallas/Fort
Worth, Houston and
San Antonio, Texas; Charlotte and Raleigh, North Carolina and Nashville, Tennessee.
Certain statements in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as "expects," "anticipates,"
"targets," "envisions," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," variations of such words and
similar expressions are intended to identify such forward-looking
statements. These statements involve a number of risks and
uncertainties. Any forward-looking statements that we make herein
and in any future reports and statements are not guarantees of
future performance, and actual results may differ materially from
those in such forward-looking statements as a result of various
factors, including, without limitation, factors relating to the
economic environment, interest rates, availability of resources,
competition, market concentration, land development activities,
construction defects, product liability and warranty claims and
various governmental rules and regulations, as more fully discussed
in the "Risk Factors" section of the Company's Annual Report on
Form 10-K for the year ended December 31, 2023, as the same
may be updated from time to time in our subsequent filings with the
Securities and Exchange Commission. All forward-looking
statements made in this press release are made as of the date
hereof, and the risk that actual results will differ materially
from expectations expressed herein will increase with the passage
of time. We undertake no duty to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. However, any further disclosures made
on related subjects in our subsequent filings, releases or
presentations should be consulted.
M/I Homes, Inc. and
Subsidiaries
Summary Statement of
Income (unaudited)
(Dollars and shares
in thousands, except per share amounts)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
New
contracts
|
2,547
|
|
2,171
|
Average community
count
|
216
|
|
198
|
Cancellation
rate
|
8 %
|
|
13 %
|
Backlog
units
|
3,391
|
|
3,301
|
Backlog sales
value
|
$
1,789,340
|
|
$
1,724,550
|
Homes
delivered
|
2,158
|
|
2,007
|
Average home closing
price
|
$
471
|
|
$
486
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
Housing
revenue
|
$
1,016,513
|
|
$
974,946
|
Land
revenue
|
3,228
|
|
303
|
Total homebuilding
revenue
|
$
1,019,741
|
|
$
975,249
|
|
|
|
|
Financial services
revenue
|
26,962
|
|
25,281
|
Total
revenue
|
$
1,046,703
|
|
$
1,000,530
|
|
|
|
|
Cost of sales -
operations
|
763,360
|
|
765,904
|
Gross margin
|
$
283,343
|
|
$
234,626
|
General and
administrative expense
|
56,084
|
|
50,960
|
Selling
expense
|
53,940
|
|
49,080
|
Operating
income
|
$
173,319
|
|
$
134,586
|
Other income
|
—
|
|
(7)
|
Interest income, net of
interest expense
|
(6,920)
|
|
(1,389)
|
Income before income
taxes
|
$
180,239
|
|
$
135,982
|
Provision for income
taxes
|
42,178
|
|
32,916
|
Net income
|
$
138,061
|
|
$
103,066
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
4.92
|
|
$
3.73
|
Diluted
|
$
4.78
|
|
$
3.64
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
Basic
|
28,052
|
|
27,602
|
Diluted
|
28,888
|
|
28,305
|
M/I Homes, Inc. and
Subsidiaries
Summary Balance
Sheet and Other Information (unaudited)
(Dollars in
thousands, except per share amounts)
|
|
|
As of
|
|
March
31,
|
|
2024
|
|
2023
|
Assets:
|
|
|
|
Total cash, cash
equivalents and restricted cash (1)
|
$ 870,162
|
|
$ 542,564
|
Mortgage loans held for
sale
|
235,047
|
|
226,629
|
Inventory:
|
|
|
|
Lots, land and land
development
|
1,448,459
|
|
1,279,673
|
Land held for
sale
|
136
|
|
17,959
|
Homes under
construction
|
1,169,791
|
|
1,190,519
|
Other
inventory
|
155,779
|
|
169,258
|
Total
Inventory
|
$
2,774,165
|
|
$
2,657,409
|
|
|
|
|
Property and equipment
- net
|
33,145
|
|
37,419
|
Investments in joint
venture arrangements
|
59,146
|
|
49,031
|
Operating lease
right-of-use assets
|
57,890
|
|
59,787
|
Goodwill
|
16,400
|
|
16,400
|
Deferred income tax
asset
|
15,313
|
|
18,019
|
Other assets
|
150,683
|
|
155,112
|
Total Assets
|
$
4,211,951
|
|
$
3,762,370
|
|
|
|
|
Liabilities:
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
Senior notes due 2028
- net
|
$
397,072
|
|
$
396,298
|
Senior notes due 2030
- net
|
296,991
|
|
296,487
|
Total Debt -
Homebuilding Operations
|
$
694,063
|
|
$
692,785
|
|
|
|
|
Notes payable bank -
financial services operations
|
224,321
|
|
223,618
|
Total Debt
|
$
918,384
|
|
$
916,403
|
|
|
|
|
Accounts
payable
|
224,972
|
|
208,426
|
Operating lease
liabilities
|
59,163
|
|
60,763
|
Other
liabilities
|
370,647
|
|
393,563
|
Total
Liabilities
|
$
1,573,166
|
|
$
1,579,155
|
|
|
|
|
Shareholders'
Equity
|
2,638,785
|
|
2,183,215
|
Total Liabilities and
Shareholders' Equity
|
$
4,211,951
|
|
$
3,762,370
|
|
|
|
|
Book value per common
share
|
$
95.09
|
|
$
78.77
|
Homebuilding debt to
capital ratio (2)
|
21 %
|
|
24 %
|
|
|
(1)
|
Includes $0.5 million
and $1.4 million of restricted cash and cash held in escrow for the
quarters ended March 31, 2024 and 2023, respectively.
|
(2)
|
The ratio of
homebuilding debt to capital is calculated as the carrying value of
our homebuilding debt outstanding divided by the sum of the
carrying value of our homebuilding debt outstanding plus
shareholders' equity.
|
M/I Homes, Inc. and
Subsidiaries
Selected
Supplemental Financial and Operating Data
(unaudited)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
Cash provided by
operating activities
|
$
115,772
|
|
$
251,499
|
Cash used in investing
activities
|
$
(17,108)
|
|
$
(4,793)
|
Cash provided by (used
in) financing activities
|
$
38,694
|
|
$
(15,684)
|
|
|
|
|
Land/lot
purchases
|
$
107,660
|
|
$
45,646
|
Land development
spending
|
$
119,367
|
|
$
92,419
|
Land sale
revenue
|
$
3,228
|
|
$
303
|
Land sale gross profit
(loss)
|
$
1,313
|
|
$
(3)
|
|
|
|
|
Financial services
pre-tax income
|
$
12,312
|
|
$
12,641
|
M/I Homes, Inc. and
Subsidiaries
Non-GAAP Financial
Results (1)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
Net income
|
$
138,061
|
|
$
103,066
|
Add:
|
|
|
|
Provision for income
taxes
|
42,178
|
|
32,916
|
Interest income -
net
|
(9,767)
|
|
(3,673)
|
Interest amortized to
cost of sales
|
8,302
|
|
8,040
|
Depreciation and
amortization
|
4,467
|
|
4,397
|
Non-cash
charges
|
3,539
|
|
2,073
|
Adjusted
EBITDA
|
$
186,780
|
|
$
146,819
|
|
|
(1)
|
We believe these
non-GAAP financial measures are relevant and useful to investors in
understanding our operations and may be helpful in comparing us
with other companies in the homebuilding industry to the extent
they provide similar information. These non-GAAP financial measures
should be used to supplement our GAAP results in order to provide a
greater understanding of the factors and trends affecting our
operations.
|
M/I Homes, Inc. and
Subsidiaries
Selected
Supplemental Financial and Operating Data
|
|
|
NEW
CONTRACTS
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
|
|
|
|
%
|
Region
|
|
2024
|
|
2023
|
|
Change
|
Northern
|
|
1,162
|
|
828
|
|
40 %
|
Southern
|
|
1,385
|
|
1,343
|
|
3 %
|
Total
|
|
2,547
|
|
2,171
|
|
17 %
|
|
|
|
HOMES
DELIVERED
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
|
|
|
|
%
|
Region
|
|
2024
|
|
2023
|
|
Change
|
Northern
|
|
843
|
|
797
|
|
6 %
|
Southern
|
|
1,315
|
|
1,210
|
|
9 %
|
Total
|
|
2,158
|
|
2,007
|
|
8 %
|
|
BACKLOG
|
|
March 31,
2024
|
|
|
March 31,
2023
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
Region
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
Northern
|
1,567
|
|
$
822
|
|
$
525,000
|
|
|
1,087
|
|
$
560
|
|
$
515,000
|
Southern
|
1,824
|
|
$
967
|
|
$
530,000
|
|
|
2,214
|
|
$
1,165
|
|
$
526,000
|
Total
|
3,391
|
|
$
1,789
|
|
$
528,000
|
|
|
3,301
|
|
$
1,725
|
|
$
522,000
|
|
LAND POSITION
SUMMARY
|
|
March 31,
2024
|
|
|
March 31,
2023
|
|
Lots
|
Lots
Under
|
|
|
|
Lots
|
Lots
Under
|
|
Region
|
Owned
|
Contract
|
Total
|
|
|
Owned
|
Contract
|
Total
|
Northern
|
7,005
|
9,279
|
16,284
|
|
|
7,712
|
7,214
|
14,926
|
Southern
|
16,821
|
14,352
|
31,173
|
|
|
16,054
|
9,761
|
25,815
|
Total
|
23,826
|
23,631
|
47,457
|
|
|
23,766
|
16,975
|
40,741
|
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SOURCE M/I Homes, Inc.