EX-99.1 2 exhbit991earningspressrele.htm EX-99.1 PRESS RELEASE 1ST QTR. 04-27-2022 Document


Exhibit 99.1
milogoa42.jpg


M/I Homes Reports
2022 First Quarter Results

Columbus, Ohio (April 27, 2022) - M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2022.

2022 First Quarter Highlights:
•Revenue increased 4% to $860.8 million, a first quarter record
•Pre-tax income increased 11% to $122.3 million, a first quarter record
•Net income, a first quarter record, increased 8% to $91.8 million ($3.16 per diluted share) from
2021’s $84.9 million ($2.85 per diluted share)
•Homes delivered decreased 10% to 1,823 and average sales price increased 16% to $457,000
•New contracts decreased 19% to 2,514 contracts
•Backlog units increased 1% to 5,526, an all-time quarterly record
•Backlog sales value increased 17% to $2.8 billion, an all-time quarterly record

For the first quarter of 2022, the Company reported pre-tax income of $122.3 million and net income of $91.8 million, or $3.16 per diluted share. This compares to pre-tax income of $110.3 million and net income of $84.9 million, or $2.85 per diluted share, for the first quarter of 2021.

Homes delivered in 2022’s first quarter decreased 10% to 1,823 homes. This compares to 2,019 homes delivered in 2021’s first quarter. New contracts for the first quarter of 2022 decreased 19% over 2021’s 3,109 new contracts. Homes in backlog at March 31, 2022 had a total sales value of $2.8 billion, a 17% increase from a year ago and an all-time quarterly record. Backlog units at March 31, 2022 increased 1% to an all-time quarterly record 5,526 homes, with an average sales price of $505,000. At March 31, 2021, backlog sales value was $2.4 billion, with backlog units of 5,479 and an average sales price of $433,000. M/I Homes had 176 active communities at March 31, 2022 compared to 187 communities at March 31, 2021. The Company's cancellation rate was 7% in both the first quarter of 2022 and 2021.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had strong first quarter results highlighted by record levels of revenue, income and quarter-end backlog. Our revenue increased 4% to $861 million, pre-tax income and diluted earnings per share each improved 11% to $122 million and $3.16 per share. We achieved these record first quarter results due to a 16% increase in our average closing price, a 40 basis point improvement in our gross margin to 24.8% and a 50 basis point improvement in our overhead expense ratio. Our return on equity remained strong at 26%. We are particularly pleased with these results given the unprecedented labor challenges and supply chain issues that impacted our deliveries. In addition, despite a 6% decline in community count and limiting sales in most of our communities, we achieved record backlog units and backlog sales value, with sales value improving 17% from a year ago.”



Mr. Schottenstein continued, “We ended the quarter with record shareholders’ equity of $1.7 billion, an increase of 26% from 2021, book value per share of $60, cash of $219 million, no borrowings on our $550 million credit facility and a homebuilding debt to capital ratio of 29%. During the quarter, we also repurchased $15 million of our common shares. Demand for new homes remains strong despite the increase in interest rates. Looking ahead, given our record backlog and strong backlog margins, along with a record number of new community openings planned this year, we are positioned to achieve another year of strong results in 2022.”

The Company will broadcast live its earnings conference call today at 4:00 p.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 2023.

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 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, 2021, 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.


Contact M/I Homes, Inc.
Ann Marie W. Hunker, Vice President, Chief Accounting Officer and Controller, (614) 418-8225
Mark Kirkendall, Vice President, Treasurer, (614) 418-8021



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,
20222021
New contracts2,514 3,109 
Average community count176 195 
Cancellation rate7 %7 %
Backlog units5,526 5,479 
Backlog sales value$2,788,234 $2,373,828 
Homes delivered1,823 2,019 
Average home closing price$457 $395 
Homebuilding revenue:
   Housing revenue$833,163 $798,279 
   Land revenue3,537 848 
Total homebuilding revenue$836,700 $799,127 
Financial services revenue24,111 29,649 
Total revenue$860,811 $828,776 
Cost of sales - operations647,702 626,585 
Gross margin$213,109 $202,191 
General and administrative expense48,783 45,205 
Selling expense41,421 45,689 
Operating income$122,905 $111,297 
Other income(16)(160)
Interest expense671 1,176 
Income before income taxes$122,250 $110,281 
Provision for income taxes30,411 25,415 
Net income$91,839 $84,866 
Earnings per share:
Basic$3.23 $2.92 
Diluted$3.16 $2.85 
Weighted average shares outstanding:
Basic28,424 29,015 
Diluted29,072 29,743 


M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)

As of
March 31,
20222021
Assets:
Total cash, cash equivalents and restricted cash (1)
$218,606 $292,900 
Mortgage loans held for sale200,455 217,524 
Inventory:
Lots, land and land development1,116,069 831,837 
Land held for sale8,377 4,085 
Homes under construction1,325,672 985,227 
Other inventory132,434 139,385 
Total Inventory$2,582,552 $1,960,534 
Property and equipment - net36,776 24,939 
Investments in joint venture arrangements57,309 33,822 
Operating lease right-of-use assets50,907 51,755 
Goodwill16,400 16,400 
Deferred income tax asset10,251 6,183 
Other assets133,255 105,503 
Total Assets$3,306,511 $2,709,560 
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2025 - net$— $247,743 
Senior notes due 2028 - net395,524 394,750 
Senior notes due 2030 - net295,983 — 
 Notes payable - other1,871 2,544 
Total Debt - Homebuilding Operations$693,378 $645,037 
Notes payable bank - financial services operations203,650 176,204 
Total Debt$897,028 $821,241 
Accounts payable281,387 198,216 
Operating lease liabilities51,546 52,029 
Other liabilities372,861 284,652 
Total Liabilities$1,602,822 $1,356,138 
Shareholders’ Equity1,703,689 1,353,422 
Total Liabilities and Shareholders’ Equity$3,306,511 $2,709,560 
Book value per common share$60.22 $46.37 
Homebuilding debt to capital ratio (2)
29 %32 %
(1)Includes $0.9 million and $0.5 million of restricted cash and cash held in escrow for the quarters ended March 31, 2022 and 2021, 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,
20222021
Cash provided by operating activities$69,326 $75,168 
Cash (used in) provided by investing activities$(6,634)$623 
Cash used in by financing activities$(80,454)$(43,701)
Land/lot purchases$93,948 $92,358 
Land development spending$100,697 $71,195 
Land sale revenue$3,537 $848 
Land sale gross profit$967 $250 
Financial services pre-tax income$13,055 $19,693 



M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
Three Months Ended
March 31,
20222021
Net income$91,839 $84,866 
Add:
Provision for income taxes30,411 25,415 
Interest (income) expense-net of interest income(557)275 
Interest amortized to cost of sales7,327 8,205 
Depreciation and amortization4,188 4,110 
Non-cash charges1,831 2,102 
Adjusted EBITDA$135,039 $124,973 

(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,
%
Region20222021Change
Northern1,190 1,306 (9)%
Southern1,324 1,803 (27)%
Total2,514 3,109 (19)%


HOMES DELIVERED
Three Months Ended
March 31,
%
Region20222021Change
Northern760 801 (5)%
Southern1,063 1,218 (13)%
Total1,823 2,019 (10)%


BACKLOG
March 31, 2022March 31, 2021
DollarsAverageDollarsAverage
RegionUnits(millions)Sales PriceUnits(millions)Sales Price
Northern2,320 $1,145 $494,000 2,320 $1,049 $452,000 
Southern3,206 $1,643 $513,000 3,159 $1,325 $419,000 
Total5,526 $2,788 $505,000 5,479 $2,374 $433,000 


LAND POSITION SUMMARY
March 31, 2022March 31, 2021
LotsLots UnderLotsLots Under
RegionOwnedContractTotalOwnedContractTotal
Northern7,359 7,906 15,265 6,242 8,489 14,731 
Southern16,871 13,646 30,517 10,522 16,730 27,252 
Total24,230 21,552 45,782 16,764 25,219 41,983