COLUMBUS, Ohio, July 30,
2024 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO)
announced results for the three and six months ended June 30, 2024.
2024 Second Quarter Highlights:
- Homes delivered increased 12% to 2,224
- Revenue increased 9% to $1.1
billion, a second quarter record
- Pre-tax income increased 25% to $194.1
million, 17.5% of revenue, all-time quarterly records
- Net income increased 24% to an all-time quarterly record of
$146.7 million ($5.12 per diluted share)
- Shareholders' equity reached a record $2.7 billion, a 19% increase from a year ago,
with book value per share of $100
- New contracts increased 3% to 2,255
- Backlog sales value increased to $1.82
billion, up 3%
- Repurchased $50 million of common
stock
- Return on equity of 21%
The Company reported pre-tax income of $194.1 million and net income of $146.7 million ($5.12 per diluted share), both all-time quarterly
records. This compares to pre-tax income of $155.4 million and net income of $118.0 million, or $4.12 per diluted share, for the second quarter
of 2023. For the six months ended June 30,
2024, pre-tax income increased to a record $374.4 million and net income increased to a
record $284.8 million, or
$9.90 per diluted share, compared to
$291.3 million and $221.1 million, or $7.77 per diluted share, for the same period of
2023, respectively.
Homes delivered in 2024's second quarter increased 12% to 2,224
homes. This compares to 1,990 homes delivered in 2023's second
quarter. Homes delivered for the six months ended June 30, 2024 increased 10% to 4,382 from 2023's
deliveries of 3,997. New contracts for the second quarter of 2024
increased 3% to 2,255 compared to 2,197 in 2023. For the
first half of 2024, new contracts increased 10% to 4,802 compared
to 4,368 in 2023. Homes in backlog at June 30, 2024 had a
total sales value of $1.82 billion, a
3% increase from a year ago. Backlog units at June 30, 2024
decreased 2% to 3,422 homes, with an average sales price of
$533,000. At June 30, 2023,
backlog sales value was $1.78
billion, with backlog units of 3,508 and an average sales
price of $507,000. M/I Homes had 211
communities at June 30, 2024 compared to 195 communities at
June 30, 2023. The Company's cancellation rate was 10% in both
the second quarter of 2024 and the second quarter of 2023.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had a very strong
second quarter highlighted by all-time quarterly records in income,
gross margins and pre-tax margins. For the quarter, revenue
increased by 9%, gross margins were 28% compared to 25% a year-ago,
pre-tax margins were 17.5% compared to 15.3% a year ago, and
pre-tax income improved by 25% to an all-time record $194.1 million. These results produced a
solid 21% return on equity."
Mr. Schottenstein continued, "Our financial condition is strong.
We ended the quarter with record shareholders' equity of
$2.7 billion, an increase of 19% from
a year ago, book value of $100 per
share, cash of $837 million, a
homebuilding debt to capital ratio of 20%, and a
net-debt-to-capital ratio of negative 6%. Given our first-half
performance, along with the strength of our balance sheet, low debt
levels, diverse product offerings and well-located communities, we
are positioned to have a very 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 July 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
New
contracts
|
2,255
|
|
2,197
|
|
4,802
|
|
4,368
|
|
Average community
count
|
215
|
|
198
|
|
214
|
|
197
|
|
Cancellation
rate
|
10 %
|
|
10 %
|
|
9 %
|
|
12 %
|
|
Backlog
units
|
3,422
|
|
3,508
|
|
3,422
|
|
3,508
|
|
Backlog sales
value
|
$
1,822,686
|
|
$
1,777,657
|
|
$
1,822,686
|
|
$
1,777,657
|
|
Homes
delivered
|
2,224
|
|
1,990
|
|
4,382
|
|
3,997
|
|
Average home closing
price
|
$
482
|
|
$
493
|
|
$
477
|
|
$
489
|
|
|
|
|
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
|
|
|
|
|
Housing
revenue
|
$
1,072,044
|
|
$
980,198
|
|
$
2,088,557
|
|
$
1,955,144
|
|
Land
revenue
|
6,975
|
|
8,549
|
|
10,203
|
|
8,852
|
|
Total homebuilding
revenue
|
$
1,079,019
|
|
$
988,747
|
|
$
2,098,760
|
|
$
1,963,996
|
|
|
|
|
|
|
|
|
|
Financial services
revenue
|
30,762
|
|
25,266
|
|
57,724
|
|
50,547
|
|
Total
revenue
|
$
1,109,781
|
|
$
1,014,013
|
|
$
2,156,484
|
|
$
2,014,543
|
|
|
|
|
|
|
|
|
|
Cost of sales -
operations
|
800,501
|
|
755,829
|
|
1,563,861
|
|
1,521,733
|
|
Gross margin
|
$
309,280
|
|
$
258,184
|
|
$
592,623
|
|
$
492,810
|
|
General and
administrative expense
|
63,994
|
|
55,654
|
|
120,078
|
|
106,614
|
|
Selling
expense
|
58,495
|
|
51,871
|
|
112,435
|
|
100,951
|
|
Operating
income
|
$
186,791
|
|
$
150,659
|
|
$
360,110
|
|
$
285,245
|
|
Other income
|
—
|
|
(28)
|
|
—
|
|
(35)
|
|
Interest income, net of
interest expense
|
(7,348)
|
|
(4,670)
|
|
(14,268)
|
|
(6,059)
|
|
Income before income
taxes
|
$
194,139
|
|
$
155,357
|
|
$
374,378
|
|
$
291,339
|
|
Provision for income
taxes
|
47,393
|
|
37,356
|
|
89,571
|
|
70,272
|
|
Net income
|
$
146,746
|
|
$
118,001
|
|
$
284,807
|
|
$
221,067
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
5.26
|
|
$
4.25
|
|
$
10.18
|
|
$
7.98
|
|
Diluted
|
$
5.12
|
|
$
4.12
|
|
$
9.90
|
|
$
7.77
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
27,878
|
|
27,792
|
|
27,965
|
|
27,698
|
|
Diluted
|
28,668
|
|
28,624
|
|
28,777
|
|
28,469
|
|
M/I Homes, Inc. and
Subsidiaries
Summary Balance
Sheet and Other Information (unaudited)
(Dollars in
thousands, except per share amounts)
|
|
|
As of
|
|
June
30,
|
|
2024
|
|
2023
|
|
Assets:
|
|
|
|
|
Total cash, cash
equivalents and restricted cash (1)
|
$ 837,458
|
|
$ 668,287
|
|
Mortgage loans held for
sale
|
227,254
|
|
190,845
|
|
Inventory:
|
|
|
|
|
Lots, land and land
development
|
1,467,961
|
|
1,296,486
|
|
Land held for
sale
|
4,235
|
|
15,183
|
|
Homes under
construction
|
1,306,650
|
|
1,207,759
|
|
Other
inventory
|
159,618
|
|
167,586
|
|
Total
Inventory
|
$
2,938,464
|
|
$
2,687,014
|
|
|
|
|
|
Property and equipment
- net
|
36,438
|
|
35,495
|
|
Investments in joint
venture arrangements
|
46,180
|
|
41,988
|
|
Operating lease
right-of-use assets
|
56,697
|
|
58,404
|
|
Goodwill
|
16,400
|
|
16,400
|
|
Deferred income tax
asset
|
15,313
|
|
18,019
|
|
Other assets
|
165,866
|
|
145,297
|
|
Total Assets
|
$
4,340,070
|
|
$
3,861,749
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
|
Senior notes due 2028
- net
|
$ 397,266
|
|
$ 396,492
|
|
Senior notes due 2030
- net
|
297,117
|
|
296,613
|
|
Total Debt -
Homebuilding Operations
|
$ 694,383
|
|
$ 693,105
|
|
|
|
|
|
Notes payable bank -
financial services operations
|
222,792
|
|
186,396
|
|
Total Debt
|
$ 917,175
|
|
$ 879,501
|
|
|
|
|
|
Accounts
payable
|
278,859
|
|
264,656
|
|
Operating lease
liabilities
|
58,043
|
|
59,461
|
|
Other
liabilities
|
344,876
|
|
359,672
|
|
Total
Liabilities
|
$
1,598,953
|
|
$
1,563,290
|
|
|
|
|
|
Shareholders'
Equity
|
2,741,117
|
|
2,298,459
|
|
Total Liabilities and
Shareholders' Equity
|
$
4,340,070
|
|
$
3,861,749
|
|
|
|
|
|
Book value per common
share
|
$
100.03
|
|
$
82.73
|
|
Homebuilding debt to
capital ratio (2)
|
20 %
|
|
23 %
|
|
|
|
(1)
|
Includes $0.2 million
and $0.9 million of restricted cash and cash held in escrow for the
quarters ended June 30, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash provided by
operating activities
|
$
27,511
|
|
$
166,190
|
|
$
143,283
|
|
$
417,689
|
|
Cash (used in) provided
by investing activities
|
$
(10,433)
|
|
$
1,991
|
|
$
(27,541)
|
|
$
(2,802)
|
|
Cash used in financing
activities
|
$
(49,782)
|
|
$
(42,458)
|
|
$
(11,088)
|
|
$
(58,142)
|
|
|
|
|
|
|
|
|
|
Land/lot
purchases
|
$
119,182
|
|
$
96,068
|
|
$
226,842
|
|
$
141,714
|
|
Land development
spending
|
$
144,539
|
|
$
108,914
|
|
$
263,906
|
|
$
201,333
|
|
Land sale
revenue
|
$
6,975
|
|
$
8,549
|
|
$
10,203
|
|
$
8,852
|
|
Land sale gross
profit
|
$
1,933
|
|
$
892
|
|
$
3,246
|
|
$
889
|
|
|
|
|
|
|
|
|
|
Financial services
pre-tax income
|
$
14,400
|
|
$
11,159
|
|
$
26,712
|
|
$
23,800
|
|
M/I Homes, Inc. and
Subsidiaries
Non-GAAP Financial
Results (1)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
146,746
|
|
$
118,001
|
|
$
284,807
|
|
$
221,067
|
|
Add:
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
47,393
|
|
37,356
|
|
89,571
|
|
70,272
|
|
Interest income -
net
|
(10,686)
|
|
(6,980)
|
|
(20,453)
|
|
(10,653)
|
|
Interest amortized to
cost of sales
|
7,938
|
|
8,734
|
|
16,240
|
|
16,774
|
|
Depreciation and
amortization
|
4,607
|
|
4,266
|
|
9,074
|
|
8,663
|
|
Non-cash
charges
|
3,810
|
|
2,301
|
|
7,349
|
|
4,374
|
|
Adjusted
EBITDA
|
$
199,808
|
|
$
163,678
|
|
$
386,588
|
|
$
310,497
|
|
|
|
(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
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
|
Region
|
|
2024
|
|
2023
|
|
Change
|
|
|
2024
|
|
2023
|
|
Change
|
|
Northern
|
|
1,002
|
|
949
|
|
6 %
|
|
|
2,164
|
|
1,777
|
|
22 %
|
|
Southern
|
|
1,253
|
|
1,248
|
|
— %
|
|
|
2,638
|
|
2,591
|
|
2 %
|
|
Total
|
|
2,255
|
|
2,197
|
|
3 %
|
|
|
4,802
|
|
4,368
|
|
10 %
|
|
|
HOMES
DELIVERED
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
|
Region
|
|
2024
|
|
2023
|
|
Change
|
|
|
2024
|
|
2023
|
|
Change
|
|
Northern
|
|
951
|
|
783
|
|
21 %
|
|
|
1,794
|
|
1,580
|
|
14 %
|
|
Southern
|
|
1,273
|
|
1,207
|
|
5 %
|
|
|
2,588
|
|
2,417
|
|
7 %
|
|
Total
|
|
2,224
|
|
1,990
|
|
12 %
|
|
|
4,382
|
|
3,997
|
|
10 %
|
|
|
|
|
|
BACKLOG
|
|
|
June 30,
2024
|
|
|
June 30,
2023
|
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
|
Region
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
Northern
|
|
1,618
|
|
$
853
|
|
$
527,000
|
|
|
1,253
|
|
$
631
|
|
$
504,000
|
|
Southern
|
|
1,804
|
|
$
970
|
|
$
538,000
|
|
|
2,255
|
|
$
1,147
|
|
$
509,000
|
|
Total
|
|
3,422
|
|
$
1,823
|
|
$
533,000
|
|
|
3,508
|
|
$
1,778
|
|
$
507,000
|
|
|
|
LAND POSITION
SUMMARY
|
|
|
June 30,
2024
|
|
|
June 30,
2023
|
|
|
Lots
|
|
Lots
Under
|
|
|
|
|
Lots
|
|
Lots
Under
|
|
|
|
Region
|
|
Owned
|
|
Contract
|
|
Total
|
|
|
Owned
|
|
Contract
|
|
Total
|
|
Northern
|
|
6,784
|
|
10,250
|
|
17,034
|
|
|
7,545
|
|
7,199
|
|
14,744
|
|
Southern
|
|
16,520
|
|
15,898
|
|
32,418
|
|
|
15,893
|
|
10,695
|
|
26,588
|
|
Total
|
|
23,304
|
|
26,148
|
|
49,452
|
|
|
23,438
|
|
17,894
|
|
41,332
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multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-2024-second-quarter-results-302208959.html
SOURCE M/I Homes, Inc.