COLUMBUS, Ohio, July 26,
2023 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO)
announced results for the three and six months ended June 30, 2023.
2023 Second Quarter Highlights:
- New contracts increased 21% to 2,197 contracts
- Delivered 1,990 homes, down 7% from 2022's 2,133 homes
delivered
- Revenue of $1.0 billion, down 3%
from 2022's second quarter record level
- Pre-tax income of $155.4 million,
down 15% from 2022's record of $182.2
million
- Net income of $118.0 million
($4.12 per diluted share), down 14%
from 2022's record of $136.8
million
- Shareholders' equity reached a record of $2.3 billion, a 26% increase from a year ago,
with book value per share of $83
- Return on equity of 23%
For the second quarter of 2023, the Company reported pre-tax
income of $155.4 million and net
income of $118.0 million, or
$4.12 per diluted share. This
compares to pre-tax income of $182.2
million and net income of $136.8
million, or $4.79 per diluted
share, for the second quarter of 2022. For the six months ended
June 30, 2023, net income decreased
3% to $221.1 million, or $7.77 per diluted share, compared to $228.7 million, or $7.93 per diluted share, for the same period of
2022.
Homes delivered in 2023's second quarter decreased 7% to 1,990
homes. This compares to 2,133 homes delivered in 2022's second
quarter. Homes delivered for the six months ended June 30, 2023 increased 1% to 3,997 from 2022's
deliveries of 3,956. New contracts for the second quarter of 2023
increased 21% to 2,197 new contracts. For the first six months of
2023, new contracts increased 1% to 4,368 compared to 4,334 in
2022. Homes in backlog at June 30,
2023 had a total sales value of $1.8
billion, a 34% decrease from a year ago. Backlog units at
June 30, 2023 decreased 33% to 3,508
homes, with an average sales price of $507,000. At June 30,
2022, backlog sales value was $2.7
billion, with backlog units of 5,213 and an average sales
price of $519,000. M/I Homes
had 195 communities at June 30, 2023
compared to 168 communities at June 30,
2022. The Company's cancellation rate was 10% in the second
quarter of 2023 compared to 11% in the second quarter of 2022.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had a very strong
second quarter. Despite higher interest rates and uncertain
economic conditions, we were very pleased with our new contracts,
homes delivered, margins and income. New contracts improved
by 21% over last year; we delivered 1,990 homes and continued to
improve our construction cycle time; gross margins were
considerably better than expected at 26%; and pre-tax income of
$155 million, though down from last
year's record level, represented 15.3% of revenue. These
results produced a very solid 23% return on equity. Our book
value per share is now $83, an
increase of 26% versus a year ago."
Mr. Schottenstein continued, "Our financial condition remains
strong. We ended the quarter with record shareholders' equity of
$2.3 billion and available liquidity
in excess of $1 billion. We
believe our industry will continue to benefit from strong
fundamentals, including favorable demographic trends and an
undersupply of housing. Looking ahead, we are well positioned to
continue delivering strong results."
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 2024.
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,
2022, 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
contracts
|
2,197
|
|
1,820
|
|
4,368
|
|
4,334
|
Average community
count
|
198
|
|
172
|
|
197
|
|
173
|
Cancellation
rate
|
10 %
|
|
11 %
|
|
12 %
|
|
9 %
|
Backlog
units
|
3,508
|
|
5,213
|
|
3,508
|
|
5,213
|
Backlog sales
value
|
$
1,777,657
|
|
$
2,706,586
|
|
$
1,777,657
|
|
$
2,706,586
|
Homes
delivered
|
1,990
|
|
2,133
|
|
3,997
|
|
3,956
|
Average home closing
price
|
$
493
|
|
$
477
|
|
$
489
|
|
$
468
|
|
|
|
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
|
|
|
|
Housing
revenue
|
$
980,198
|
|
$
1,017,906
|
|
$
1,955,144
|
|
$
1,851,069
|
Land
revenue
|
8,549
|
|
3,374
|
|
8,852
|
|
6,911
|
Total homebuilding
revenue
|
$
988,747
|
|
$
1,021,280
|
|
$
1,963,996
|
|
$
1,857,980
|
|
|
|
|
|
|
|
|
Financial services
revenue
|
25,266
|
|
19,374
|
|
50,547
|
|
43,485
|
Total
revenue
|
$
1,014,013
|
|
$
1,040,654
|
|
$
2,014,543
|
|
$
1,901,465
|
|
|
|
|
|
|
|
|
Cost of sales -
operations
|
755,829
|
|
756,367
|
|
1,521,733
|
|
1,404,069
|
Gross margin
|
$
258,184
|
|
$
284,287
|
|
$
492,810
|
|
$
497,396
|
General and
administrative expense
|
55,654
|
|
55,216
|
|
106,614
|
|
103,999
|
Selling
expense
|
51,871
|
|
46,206
|
|
100,951
|
|
87,627
|
Operating
income
|
$
150,659
|
|
$
182,865
|
|
$
285,245
|
|
$
305,770
|
Other income
|
(28)
|
|
(1)
|
|
(35)
|
|
(17)
|
Interest (income)
expense - net
|
(4,670)
|
|
693
|
|
(6,059)
|
|
1,364
|
Income before income
taxes
|
$
155,357
|
|
$
182,173
|
|
$
291,339
|
|
$
304,423
|
Provision for income
taxes
|
37,356
|
|
45,335
|
|
70,272
|
|
75,746
|
Net income
|
$
118,001
|
|
$
136,838
|
|
$
221,067
|
|
$
228,677
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
4.25
|
|
$
4.88
|
|
$
7.98
|
|
$
8.10
|
Diluted
|
$
4.12
|
|
$
4.79
|
|
$
7.77
|
|
$
7.93
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
27,792
|
|
28,041
|
|
27,698
|
|
28,231
|
Diluted
|
28,624
|
|
28,590
|
|
28,469
|
|
28,826
|
M/I Homes, Inc. and
Subsidiaries
Summary Balance
Sheet and Other Information (unaudited)
(Dollars in
thousands, except per share amounts)
|
|
|
As of
|
|
June
30,
|
|
2023
|
|
2022
|
Assets:
|
|
|
|
Total cash, cash
equivalents and restricted cash (1)
|
$ 668,287
|
|
$ 188,755
|
Mortgage loans held for
sale
|
190,845
|
|
194,450
|
Inventory:
|
|
|
|
Lots, land and land
development
|
1,296,486
|
|
1,136,380
|
Land held for
sale
|
15,183
|
|
10,524
|
Homes under
construction
|
1,207,759
|
|
1,514,965
|
Other
inventory
|
167,586
|
|
154,396
|
Total
Inventory
|
$
2,687,014
|
|
$
2,816,265
|
|
|
|
|
Property and equipment
- net
|
35,495
|
|
36,150
|
Investments in joint
venture arrangements
|
41,988
|
|
55,625
|
Operating lease
right-of-use assets
|
58,404
|
|
52,328
|
Goodwill
|
16,400
|
|
16,400
|
Deferred income tax
asset
|
18,019
|
|
10,251
|
Other assets
|
145,297
|
|
123,100
|
Total Assets
|
$
3,861,749
|
|
$
3,493,324
|
|
|
|
|
Liabilities:
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
Senior notes due 2028
- net
|
$ 396,492
|
|
$ 395,718
|
Senior notes due 2030
- net
|
296,613
|
|
296,109
|
Notes payable -
other
|
—
|
|
1,001
|
Total Debt -
Homebuilding Operations
|
$ 693,105
|
|
$ 692,828
|
|
|
|
|
Notes payable bank -
financial services operations
|
186,396
|
|
194,602
|
Total Debt
|
$ 879,501
|
|
$ 887,430
|
|
|
|
|
Accounts
payable
|
264,656
|
|
329,384
|
Operating lease
liabilities
|
59,461
|
|
53,058
|
Other
liabilities
|
359,672
|
|
405,185
|
Total
Liabilities
|
$
1,563,290
|
|
$
1,675,057
|
|
|
|
|
Shareholders'
Equity
|
2,298,459
|
|
1,818,267
|
Total Liabilities and
Shareholders' Equity
|
$
3,861,749
|
|
$
3,493,324
|
|
|
|
|
Book value per common
share
|
$
82.73
|
|
$
65.50
|
Homebuilding debt to
capital ratio (2)
|
23 %
|
|
28 %
|
|
|
(1)
|
Includes $0.9 million
and $1.2 million of restricted cash and cash held in escrow for the
quarters ended June 30, 2023 and 2022, 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by
operating activities
|
$
166,190
|
|
$
9,214
|
|
$
417,689
|
|
$
78,540
|
Cash provided by (used
in) investing activities
|
$
1,991
|
|
$
(4,829)
|
|
$
(2,802)
|
|
$
(11,463)
|
Cash used in financing
activities
|
$
(42,458)
|
|
$
(34,236)
|
|
$
(58,142)
|
|
$
(114,690)
|
|
|
|
|
|
|
|
|
Land/lot
purchases
|
$
96,068
|
|
$
120,667
|
|
$
141,714
|
|
$
214,615
|
Land development
spending
|
$
108,914
|
|
$
106,543
|
|
$
201,333
|
|
$
207,240
|
Land sale
revenue
|
$
8,549
|
|
$
3,374
|
|
$
8,852
|
|
$
6,911
|
Land sale gross
profit
|
$
892
|
|
$
591
|
|
$
889
|
|
$
1,558
|
|
|
|
|
|
|
|
|
Financial services
pre-tax income
|
$
11,159
|
|
$
8,667
|
|
$
23,800
|
|
$
21,722
|
M/I Homes, Inc. and
Subsidiaries
Non-GAAP Financial
Results (1)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
118,001
|
|
$
136,838
|
|
$
221,067
|
|
$
228,677
|
Add:
|
|
|
|
|
|
|
|
Provision for income
taxes
|
37,356
|
|
45,335
|
|
70,272
|
|
75,746
|
Interest (income)
expense - net
|
(6,980)
|
|
(750)
|
|
(10,653)
|
|
(1,307)
|
Interest amortized to
cost of sales
|
8,734
|
|
7,536
|
|
16,824
|
|
14,863
|
Depreciation and
amortization
|
4,266
|
|
4,286
|
|
8,663
|
|
8,474
|
Non-cash
charges
|
2,301
|
|
2,018
|
|
4,324
|
|
3,849
|
Adjusted
EBITDA
|
$
163,678
|
|
$
195,263
|
|
$
310,497
|
|
$
330,302
|
|
|
(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
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
Northern
|
949
|
|
722
|
|
31 %
|
|
|
1,777
|
|
1,912
|
|
(7) %
|
Southern
|
1,248
|
|
1,098
|
|
14 %
|
|
|
2,591
|
|
2,422
|
|
7 %
|
Total
|
2,197
|
|
1,820
|
|
21 %
|
|
|
4,368
|
|
4,334
|
|
1 %
|
|
HOMES
DELIVERED
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
June
30,
|
|
|
June
30,
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
Region
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
Northern
|
783
|
|
1,000
|
|
(22) %
|
|
|
1,580
|
|
1,760
|
|
(10) %
|
Southern
|
1,207
|
|
1,133
|
|
7 %
|
|
|
2,417
|
|
2,196
|
|
10 %
|
Total
|
1,990
|
|
2,133
|
|
(7) %
|
|
|
3,997
|
|
3,956
|
|
1 %
|
|
BACKLOG
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
Region
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
Northern
|
1,253
|
|
$
631
|
|
$
504,000
|
|
|
2,042
|
|
$
1,036
|
|
$
507,000
|
Southern
|
2,255
|
|
$
1,147
|
|
$
509,000
|
|
|
3,171
|
|
$
1,670
|
|
$
527,000
|
Total
|
3,508
|
|
$
1,778
|
|
$
507,000
|
|
|
5,213
|
|
$
2,706
|
|
$
519,000
|
|
LAND POSITION
SUMMARY
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
Lots
|
Lots
Under
|
|
|
|
Lots
|
Lots
Under
|
|
Region
|
Owned
|
Contract
|
Total
|
|
|
Owned
|
Contract
|
Total
|
Northern
|
7,545
|
7,199
|
14,744
|
|
|
7,601
|
7,764
|
15,365
|
Southern
|
15,893
|
10,695
|
26,588
|
|
|
17,196
|
15,285
|
32,481
|
Total
|
23,438
|
17,894
|
41,332
|
|
|
24,797
|
23,049
|
47,846
|
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SOURCE M/I Homes, Inc.