COLUMBUS, Ohio, Oct. 30,
2024 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO)
announced results for the three and nine months ended September 30, 2024.
2024 Third Quarter Highlights:
- Record third quarter homes delivered, revenue, and income
- Homes delivered increased 8% to 2,271
- Revenue increased 9% to $1.1
billion
- Pre-tax income increased 6% to $188.7
million, 16.5% of revenue
- Net income increased 5% to $145.4
million ($5.10 per diluted
share)
- Shareholders' equity reached an all-time record $2.8 billion, a 17% increase from a year ago,
with book value per share of $105
- New contracts were 2,023, compared to 2,021 in last year's
third quarter
- Repurchased $50 million of common
stock
- Return on equity of 20%
The Company reported pre-tax income of $188.7 million and net income of $145.4 million ($5.10 per diluted share), both third quarter
records. This compares to pre-tax income of $178.0 million and net income of $139.0 million, or $4.82 per diluted share, for the third quarter of
2023. For the nine months ended September
30, 2024, pre-tax income increased to a record $563.1 million and net income increased to a
record $430.3 million, or
$14.99 per diluted share, compared to
$469.3 million and $360.1 million, or $12.58 per diluted share, for the same period of
2023, respectively.
Homes delivered in 2024's third quarter increased 8% to a third
quarter record of 2,271 homes. This compares to 2,096 homes
delivered in 2023's third quarter. Homes delivered for the nine
months ended September 30, 2024
increased 9% to 6,653 from 2023's deliveries of 6,093 which
represents an all-time record. New contracts were 2,023 for the
third quarter of 2024 compared to 2,021 in last year's third
quarter. For the first nine months of 2024, new contracts increased
7% to 6,825 compared to 6,389 in 2023. Homes in backlog at
September 30, 2024 had a total sales value of $1.73 billion, a 1% decrease from a year ago.
Backlog units at September 30, 2024 decreased 8% to 3,174
homes, with an all-time record average sales price of $544,000. At September 30, 2023, backlog
sales value was $1.75 billion, with
backlog units of 3,433 and an average sales price of $510,000. M/I Homes had 217 communities at
September 30, 2024 compared to 204 communities at
September 30, 2023. The Company's cancellation rate was 10% in
both the third quarter of 2024 and the third quarter of 2023.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had a very strong
third quarter, highlighted by record homes delivered, record
revenue, and record income. We increased homes delivered by 8% to a
record 2,271, increased revenue by 9% to a record $1.1 billion, increased pre-tax income by 6% to a
record $188.7 million and we
continued to generate strong returns. Pre-tax income equaled 16.5%
of revenue. Our gross margin was strong at 27% and our return
on equity was 20%.
Mr. Schottenstein continued, "Our financial condition is
excellent. We ended the quarter with record shareholders' equity of
$2.8 billion, an increase of 17% from
a year ago, book value of $105 per
share, cash of $720 million, a
homebuilding debt to capital ratio of 20%, and a
net-debt-to-capital ratio of negative 1%. Given our performance
through three quarters of this year, 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 10:00 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 October 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
New
contracts
|
2,023
|
|
2,021
|
|
6,825
|
|
6,389
|
|
Average community
count
|
214
|
|
200
|
|
215
|
|
199
|
|
Cancellation
rate
|
10 %
|
|
10 %
|
|
9 %
|
|
11 %
|
|
Backlog
units
|
3,174
|
|
3,433
|
|
3,174
|
|
3,433
|
|
Backlog sales
value
|
$
1,725,423
|
|
$
1,751,442
|
|
$
1,725,423
|
|
$
1,751,442
|
|
Homes
delivered
|
2,271
|
|
2,096
|
|
6,653
|
|
6,093
|
|
Average home closing
price
|
$
489
|
|
$
481
|
|
$
481
|
|
$
486
|
|
|
|
|
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
|
|
|
|
|
Housing
revenue
|
$
1,111,389
|
|
$
1,008,356
|
|
$
3,199,946
|
|
$
2,963,500
|
|
Land
revenue
|
1,550
|
|
14,424
|
|
11,753
|
|
23,276
|
|
Total homebuilding
revenue
|
$
1,112,939
|
|
$
1,022,780
|
|
$
3,211,699
|
|
$
2,986,776
|
|
|
|
|
|
|
|
|
|
Financial services
revenue
|
29,970
|
|
23,591
|
|
87,694
|
|
74,138
|
|
Total
revenue
|
$
1,142,909
|
|
$
1,046,371
|
|
$
3,299,393
|
|
$
3,060,914
|
|
|
|
|
|
|
|
|
|
Cost of sales -
operations
|
833,468
|
|
764,638
|
|
2,397,329
|
|
2,286,371
|
|
Gross margin
|
$
309,441
|
|
$
281,733
|
|
$
902,064
|
|
$
774,543
|
|
General and
administrative expense
|
68,285
|
|
55,867
|
|
188,363
|
|
162,481
|
|
Selling
expense
|
59,163
|
|
53,735
|
|
171,598
|
|
154,686
|
|
Operating
income
|
$
181,993
|
|
$
172,131
|
|
$
542,103
|
|
$
457,376
|
|
Other income
|
—
|
|
1
|
|
—
|
|
(34)
|
|
Interest income, net of
interest expense
|
(6,680)
|
|
(5,834)
|
|
(20,948)
|
|
(11,893)
|
|
Income before income
taxes
|
$
188,673
|
|
$
177,964
|
|
$
563,051
|
|
$
469,303
|
|
Provision for income
taxes
|
43,224
|
|
38,948
|
|
132,795
|
|
109,220
|
|
Net income
|
$
145,449
|
|
$
139,016
|
|
$
430,256
|
|
$
360,083
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
5.26
|
|
$
4.98
|
|
$
15.45
|
|
$
12.97
|
|
Diluted
|
$
5.10
|
|
$
4.82
|
|
$
14.99
|
|
$
12.58
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
27,644
|
|
27,909
|
|
27,857
|
|
27,769
|
|
Diluted
|
28,534
|
|
28,837
|
|
28,703
|
|
28,631
|
|
M/I Homes, Inc. and
Subsidiaries
Summary Balance
Sheet and Other Information (unaudited)
(Dollars in
thousands, except per share amounts)
|
|
|
As of
|
|
September
30,
|
|
2024
|
|
2023
|
|
Assets:
|
|
|
|
|
Total cash, cash
equivalents and restricted cash (1)
|
$ 719,920
|
|
$ 736,252
|
|
Mortgage loans held for
sale
|
242,812
|
|
207,181
|
|
Inventory:
|
|
|
|
|
Lots, land and land
development
|
1,558,300
|
|
1,355,622
|
|
Land held for
sale
|
3,859
|
|
6,881
|
|
Homes under
construction
|
1,401,260
|
|
1,218,256
|
|
Other
inventory
|
169,275
|
|
159,769
|
|
Total
Inventory
|
$
3,132,694
|
|
$
2,740,528
|
|
|
|
|
|
Property and equipment
- net
|
34,714
|
|
36,015
|
|
Investments in joint
venture arrangements
|
63,095
|
|
44,866
|
|
Operating lease
right-of-use assets
|
55,259
|
|
58,304
|
|
Goodwill
|
16,400
|
|
16,400
|
|
Deferred income tax
asset
|
15,313
|
|
18,019
|
|
Other assets
|
179,650
|
|
145,803
|
|
Total Assets
|
$
4,459,857
|
|
$
4,003,368
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
|
Senior notes due 2028
- net
|
$ 397,459
|
|
$ 396,685
|
|
Senior notes due 2030
- net
|
297,243
|
|
296,739
|
|
Total Debt -
Homebuilding Operations
|
$ 694,702
|
|
$ 693,424
|
|
|
|
|
|
Notes payable bank -
financial services operations
|
235,441
|
|
200,619
|
|
Total Debt
|
$ 930,143
|
|
$ 894,043
|
|
|
|
|
|
Accounts
payable
|
256,708
|
|
250,937
|
|
Operating lease
liabilities
|
56,667
|
|
59,433
|
|
Other
liabilities
|
370,983
|
|
373,243
|
|
Total
Liabilities
|
$
1,614,501
|
|
$
1,577,656
|
|
|
|
|
|
Shareholders'
Equity
|
2,845,356
|
|
2,425,712
|
|
Total Liabilities and
Shareholders' Equity
|
$
4,459,857
|
|
$
4,003,368
|
|
|
|
|
|
Book value per common
share
|
$
104.59
|
|
$
87.10
|
|
Homebuilding debt to
capital ratio (2)
|
20 %
|
|
22 %
|
|
|
|
(1)
|
Includes $0.2 million
of restricted cash and cash held in escrow for the quarter ended
September 30, 2023.
|
|
(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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash (used in) provided
by operating activities
|
$
(67,942)
|
|
$
79,541
|
|
$
75,341
|
|
$
497,230
|
|
Cash used in by
investing activities
|
$
(17,496)
|
|
$
(11,330)
|
|
$
(45,037)
|
|
$
(14,132)
|
|
Cash used in financing
activities
|
$
(32,100)
|
|
$
(246)
|
|
$
(43,188)
|
|
$
(58,388)
|
|
|
|
|
|
|
|
|
|
Land/lot
purchases
|
$
138,711
|
|
$
105,860
|
|
$
365,553
|
|
$
247,574
|
|
Land development
spending
|
$
180,753
|
|
$
151,222
|
|
$
444,659
|
|
$
352,555
|
|
Land sale
revenue
|
$
1,550
|
|
$
14,424
|
|
$
11,753
|
|
$
23,276
|
|
Land sale gross
profit
|
$
72
|
|
$
2,115
|
|
$
3,318
|
|
$
3,004
|
|
|
|
|
|
|
|
|
|
Financial services
pre-tax income
|
$
12,936
|
|
$
9,878
|
|
$
39,648
|
|
$
33,678
|
|
M/I Homes, Inc. and
Subsidiaries
Non-GAAP Financial
Results (1)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
145,449
|
|
$
139,016
|
|
$
430,256
|
|
$
360,083
|
|
Add:
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
43,224
|
|
38,948
|
|
132,795
|
|
109,220
|
|
Interest income -
net
|
(10,089)
|
|
(8,469)
|
|
(30,542)
|
|
(19,122)
|
|
Interest amortized to
cost of sales
|
7,632
|
|
8,778
|
|
23,872
|
|
25,552
|
|
Depreciation and
amortization
|
4,816
|
|
4,227
|
|
13,890
|
|
12,890
|
|
Non-cash
charges
|
6,750
|
|
2,682
|
|
14,099
|
|
7,056
|
|
Adjusted
EBITDA
|
$
197,782
|
|
$
185,182
|
|
$
584,370
|
|
$
495,679
|
|
|
|
(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
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
|
Region
|
|
2024
|
|
2023
|
|
Change
|
|
|
2024
|
|
2023
|
|
Change
|
|
Northern
|
|
890
|
|
885
|
|
1 %
|
|
|
3,054
|
|
2,662
|
|
15 %
|
|
Southern
|
|
1,133
|
|
1,136
|
|
— %
|
|
|
3,771
|
|
3,727
|
|
1 %
|
|
Total
|
|
2,023
|
|
2,021
|
|
— %
|
|
|
6,825
|
|
6,389
|
|
7 %
|
|
|
HOMES
DELIVERED
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
|
Region
|
|
2024
|
|
2023
|
|
Change
|
|
|
2024
|
|
2023
|
|
Change
|
|
Northern
|
|
1,015
|
|
741
|
|
37 %
|
|
|
2,809
|
|
2,321
|
|
21 %
|
|
Southern
|
|
1,256
|
|
1,355
|
|
(7) %
|
|
|
3,844
|
|
3,772
|
|
2 %
|
|
Total
|
|
2,271
|
|
2,096
|
|
8 %
|
|
|
6,653
|
|
6,093
|
|
9 %
|
|
|
|
BACKLOG
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
|
Region
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
Northern
|
|
1,493
|
|
$
803
|
|
$
538,000
|
|
|
1,397
|
|
$
727
|
|
$
521,000
|
|
Southern
|
|
1,681
|
|
$
923
|
|
$
549,000
|
|
|
2,036
|
|
$
1,024
|
|
$
503,000
|
|
Total
|
|
3,174
|
|
$
1,726
|
|
$
544,000
|
|
|
3,433
|
|
$
1,751
|
|
$
510,000
|
|
|
|
LAND POSITION
SUMMARY
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
Lots
|
|
Lots
Under
|
|
|
|
|
Lots
|
|
Lots
Under
|
|
|
|
Region
|
|
Owned
|
|
Contract
|
|
Total
|
|
|
Owned
|
|
Contract
|
|
Total
|
|
Northern
|
|
6,528
|
|
10,885
|
|
17,413
|
|
|
7,341
|
|
8,385
|
|
15,726
|
|
Southern
|
|
17,114
|
|
17,678
|
|
34,792
|
|
|
15,835
|
|
13,267
|
|
29,102
|
|
Total
|
|
23,642
|
|
28,563
|
|
52,205
|
|
|
23,176
|
|
21,652
|
|
44,828
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multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-2024-third-quarter-results-302290595.html
SOURCE M/I Homes, Inc.
