COLUMBUS, Ohio, Oct. 25,
2023 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO)
announced results for the three and nine months ended September 30, 2023.
2023 Third Quarter Highlights:
- New contracts increased 50% to 2,021 contracts
- Delivered 2,096 homes, up 3% from 2022's 2,026 homes
delivered
- Record third quarter revenue of $1.0
billion, up 3% from 2022's third quarter
- Pre-tax income increased 7% to $178.0
million, a third quarter record
- All-time quarterly record net income of $139.0 million ($4.82 per diluted share), up 6% from 2022's
$131.6 million
- Shareholders' equity reached a record of $2.4 billion, a 25% increase from a year ago,
with book value per share of $87
- Return on equity of 23%
For the third quarter of 2023, the Company reported pre-tax
income of $178.0 million and net
income of $139.0 million, or
$4.82 per diluted share. This
compares to pre-tax income of $166.6
million and net income of $131.6
million, or $4.67 per diluted
share, for the third quarter of 2022. For the nine months ended
September 30, 2023, net income
decreased slightly to $360.1 million,
or $12.58 per diluted share, compared
to $360.3 million, or $12.59 per diluted share, for the same period of
2022.
Homes delivered in 2023's third quarter increased 3% to 2,096
homes. This compares to 2,026 homes delivered in 2022's third
quarter. Homes delivered for the nine months ended September 30, 2023 increased 2% to 6,093 from
2022's deliveries of 5,982. New contracts for the third quarter of
2023 increased 50% to 2,021 new contracts compared to 1,349 in
2022. For the first nine months of 2023, new contracts increased
12% to 6,389 compared to 5,683 in 2022. Homes in backlog at
September 30, 2023 had a total sales value of $1.8 billion, a 28% decrease from a year ago.
Backlog units at September 30, 2023 decreased 24% to 3,433
homes, with an average sales price of $510,000. At September 30, 2022, backlog
sales value was $2.4 billion, with
backlog units of 4,536 and an average sales price of $533,000. M/I Homes had 204 communities at
September 30, 2023 compared to 178 communities at
September 30, 2022. The Company's cancellation rate was 10% in
the third quarter of 2023 compared to 17% in the third quarter of
2022.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had a very strong
third quarter, highlighted by record revenue, record income, a 50%
increase in new contracts and very strong returns. We increased
revenue by 3% to a record $1.0
billion, increased pre-tax income by 7% to a record
$178.0 million, generated 27% gross
margins and 17% pre-tax income margins. These results produced a
solid 23% return on equity."
Mr. Schottenstein continued, "Our financial condition is strong.
We ended the quarter with record shareholders' equity of
$2.4 billion, an increase of 25% from
a year ago, book value of $87 per
share, cash of $736 million, zero
borrowings on our $650 million credit
facility, and a homebuilding debt to capital ratio of 22%. 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 2023."
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 October 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
New
contracts
|
2,021
|
|
1,349
|
|
6,389
|
|
5,683
|
|
Average community
count
|
200
|
|
173
|
|
199
|
|
174
|
|
Cancellation
rate
|
10 %
|
|
17 %
|
|
11 %
|
|
11 %
|
|
Backlog
units
|
3,433
|
|
4,536
|
|
3,433
|
|
4,536
|
|
Backlog sales
value
|
$
1,751,442
|
|
$
2,419,291
|
|
$
1,751,442
|
|
$
2,419,291
|
|
Homes
delivered
|
2,096
|
|
2,026
|
|
6,093
|
|
5,982
|
|
Average home closing
price
|
$
481
|
|
$
487
|
|
$
486
|
|
$
474
|
|
|
|
|
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
|
|
|
|
|
Housing
revenue
|
$
1,008,356
|
|
$
986,843
|
|
$
2,963,500
|
|
$
2,837,912
|
|
Land
revenue
|
14,424
|
|
5,986
|
|
23,276
|
|
12,897
|
|
Total homebuilding
revenue
|
$
1,022,780
|
|
$
992,829
|
|
$
2,986,776
|
|
$
2,850,809
|
|
|
|
|
|
|
|
|
|
Financial services
revenue
|
23,591
|
|
20,099
|
|
74,138
|
|
63,584
|
|
Total
revenue
|
$
1,046,371
|
|
$
1,012,928
|
|
$
3,060,914
|
|
$
2,914,393
|
|
|
|
|
|
|
|
|
|
Cost of sales -
operations
|
764,638
|
|
741,013
|
|
2,286,371
|
|
2,145,082
|
|
Gross margin
|
$
281,733
|
|
$
271,915
|
|
$
774,543
|
|
$
769,311
|
|
General and
administrative expense
|
55,867
|
|
58,247
|
|
162,481
|
|
162,246
|
|
Selling
expense
|
53,735
|
|
46,373
|
|
154,686
|
|
134,000
|
|
Operating
income
|
$
172,131
|
|
$
167,295
|
|
$
457,376
|
|
$
473,065
|
|
Other income
|
1
|
|
—
|
|
(34)
|
|
(17)
|
|
Interest (income)
expense - net
|
(5,834)
|
|
701
|
|
(11,893)
|
|
2,065
|
|
Income before income
taxes
|
$
177,964
|
|
$
166,594
|
|
$
469,303
|
|
$
471,017
|
|
Provision for income
taxes
|
38,948
|
|
35,004
|
|
109,220
|
|
110,750
|
|
Net income
|
$
139,016
|
|
$
131,590
|
|
$
360,083
|
|
$
360,267
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
4.98
|
|
$
4.76
|
|
$
12.97
|
|
$
12.86
|
|
Diluted
|
$
4.82
|
|
$
4.67
|
|
$
12.58
|
|
$
12.59
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
27,909
|
|
27,618
|
|
27,769
|
|
28,025
|
|
Diluted
|
28,837
|
|
28,185
|
|
28,631
|
|
28,610
|
|
M/I Homes, Inc. and
Subsidiaries
Summary Balance
Sheet and Other Information (unaudited)
(Dollars in
thousands, except per share amounts)
|
|
|
As of
|
|
September
30,
|
|
2023
|
|
2022
|
|
Assets:
|
|
|
|
|
Total cash, cash
equivalents and restricted cash (1)
|
$ 736,252
|
|
$
67,761
|
|
Mortgage loans held for
sale
|
207,181
|
|
183,327
|
|
Inventory:
|
|
|
|
|
Lots, land and land
development
|
1,355,622
|
|
1,230,139
|
|
Land held for
sale
|
6,881
|
|
9,174
|
|
Homes under
construction
|
1,218,256
|
|
1,624,831
|
|
Other
inventory
|
159,769
|
|
152,591
|
|
Total
Inventory
|
$
2,740,528
|
|
$
3,016,735
|
|
|
|
|
|
Property and equipment
- net
|
36,015
|
|
35,217
|
|
Investments in joint
venture arrangements
|
44,866
|
|
51,700
|
|
Operating lease
right-of-use assets
|
58,304
|
|
55,388
|
|
Goodwill
|
16,400
|
|
16,400
|
|
Deferred income tax
asset
|
18,019
|
|
10,251
|
|
Other assets
|
145,803
|
|
151,134
|
|
Total Assets
|
$
4,003,368
|
|
$
3,587,913
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
|
Senior notes due 2028
- net
|
$ 396,685
|
|
$ 395,911
|
|
Senior notes due 2030
- net
|
296,739
|
|
296,235
|
|
Notes payable -
other
|
—
|
|
429
|
|
Total Debt -
Homebuilding Operations
|
$ 693,424
|
|
$ 692,575
|
|
|
|
|
|
Notes payable bank -
financial services operations
|
200,619
|
|
189,371
|
|
Total Debt
|
$ 894,043
|
|
$ 881,946
|
|
|
|
|
|
Accounts
payable
|
250,937
|
|
296,326
|
|
Operating lease
liabilities
|
59,433
|
|
56,199
|
|
Other
liabilities
|
373,243
|
|
415,669
|
|
Total
Liabilities
|
$
1,577,656
|
|
$
1,650,140
|
|
|
|
|
|
Shareholders'
Equity
|
2,425,712
|
|
1,937,773
|
|
Total Liabilities and
Shareholders' Equity
|
$
4,003,368
|
|
$
3,587,913
|
|
|
|
|
|
Book value per common
share
|
$
87.10
|
|
$
70.65
|
|
Homebuilding debt to
capital ratio (2)
|
22 %
|
|
26 %
|
|
|
|
(1)
|
Includes $0.2 million
and $0.7 million of restricted cash and cash held in escrow for the
quarters ended September 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Cash provided by (used
in) operating activities
|
$
79,541
|
|
$
(92,689)
|
|
$
497,230
|
|
$
(14,149)
|
|
Cash used in investing
activities
|
$
(11,330)
|
|
$
(7,635)
|
|
$
(14,132)
|
|
$
(19,098)
|
|
Cash used in financing
activities
|
$
(246)
|
|
$
(20,670)
|
|
$
(58,388)
|
|
$ (135,360)
|
|
|
|
|
|
|
|
|
|
Land/lot
purchases
|
$
105,860
|
|
$
74,989
|
|
$
247,574
|
|
$
289,604
|
|
Land development
spending
|
$
151,222
|
|
$
142,000
|
|
$
352,555
|
|
$
349,240
|
|
Land sale
revenue
|
$
14,424
|
|
$
5,986
|
|
$
23,276
|
|
$
12,897
|
|
Land sale gross
profit
|
$
2,115
|
|
$
1,350
|
|
$
3,004
|
|
$
2,908
|
|
|
|
|
|
|
|
|
|
Financial services
pre-tax income
|
$
9,878
|
|
$
7,883
|
|
$
33,678
|
|
$
29,605
|
|
M/I Homes, Inc. and
Subsidiaries
Non-GAAP Financial
Results (1)
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
|
$
139,016
|
|
$
131,590
|
|
$
360,083
|
|
$
360,267
|
|
Add:
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
38,948
|
|
35,004
|
|
109,220
|
|
110,750
|
|
Interest income -
net
|
(8,469)
|
|
(1,062)
|
|
(19,122)
|
|
(2,369)
|
|
Interest amortized to
cost of sales
|
8,778
|
|
6,683
|
|
25,602
|
|
21,546
|
|
Depreciation and
amortization
|
4,227
|
|
4,350
|
|
12,890
|
|
12,824
|
|
Non-cash
charges
|
2,682
|
|
2,764
|
|
7,006
|
|
6,613
|
|
Adjusted
EBITDA
|
$
185,182
|
|
$
179,329
|
|
$
495,679
|
|
$
509,631
|
|
|
|
(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
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
|
Northern
|
885
|
|
466
|
|
90 %
|
|
|
2,662
|
|
2,378
|
|
12 %
|
|
Southern
|
1,136
|
|
883
|
|
29 %
|
|
|
3,727
|
|
3,305
|
|
13 %
|
|
Total
|
2,021
|
|
1,349
|
|
50 %
|
|
|
6,389
|
|
5,683
|
|
12 %
|
|
HOMES DELIVERED
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
|
Region
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
|
Northern
|
741
|
|
850
|
|
(13) %
|
|
|
2,321
|
|
2,610
|
|
(11) %
|
|
Southern
|
1,355
|
|
1,176
|
|
15 %
|
|
|
3,772
|
|
3,372
|
|
12 %
|
|
Total
|
2,096
|
|
2,026
|
|
3 %
|
|
|
6,093
|
|
5,982
|
|
2 %
|
|
BACKLOG
|
|
September 30, 2023
|
|
|
September 30, 2022
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
|
Region
|
Units
|
|
(millions)
|
|
Sales Price
|
|
|
Units
|
|
(millions)
|
|
Sales Price
|
|
Northern
|
1,397
|
|
$
727
|
|
$
521,000
|
|
|
1,658
|
|
$
856
|
|
$
517,000
|
|
Southern
|
2,036
|
|
$
1,024
|
|
$
503,000
|
|
|
2,878
|
|
$
1,563
|
|
$
543,000
|
|
Total
|
3,433
|
|
$
1,751
|
|
$
510,000
|
|
|
4,536
|
|
$
2,419
|
|
$
533,000
|
|
LAND POSITION SUMMARY
|
|
September 30, 2023
|
|
|
September 30, 2022
|
|
Lots
|
Lots Under
|
|
|
|
Lots
|
Lots Under
|
|
|
Region
|
Owned
|
Contract
|
Total
|
|
|
Owned
|
Contract
|
Total
|
|
Northern
|
7,341
|
8,385
|
15,726
|
|
|
7,713
|
8,111
|
15,824
|
|
Southern
|
15,835
|
13,267
|
29,102
|
|
|
17,204
|
13,044
|
30,248
|
|
Total
|
23,176
|
21,652
|
44,828
|
|
|
24,917
|
21,155
|
46,072
|
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SOURCE M/I Homes, Inc.
