EX-99.1 2 exhibit991earningspressrel.htm EX-99.1 Document

Exhibit 99.1
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M/I Homes Reports
2023 First Quarter Results

Columbus, Ohio (April 26, 2023) - M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2023.

2023 First Quarter Highlights:
•Revenue increased 16% to $1.0 billion, a first quarter record
•Pre-tax income increased 11% to $136.0 million, a first quarter record
•Net income increased 12% to a first quarter record $103.1 million ($3.64 per diluted share) from
2022’s $91.8 million ($3.16 per diluted share)
•Homes delivered increased 10% to 2,007 and average sales price increased 6% to $486,000
•Shareholders’ equity reached an all-time record of $2.2 billion, a 28% increase from a year ago, with book value per share of $79
•Return on equity of 26%
•New contracts decreased 14% to 2,171 contracts
•Backlog sales value decreased to $1.7 billion compared to $2.8 billion a year-ago

For the first quarter of 2023, the Company reported pre-tax income of $136.0 million and net income of $103.1 million, or $3.64 per diluted share. This compares to pre-tax income of $122.3 million and net income of $91.8 million, or $3.16 per diluted share, for the first quarter of 2022.

Homes delivered in 2023’s first quarter increased 10% to 2,007 homes. This compares to 1,823 homes delivered in 2022’s first quarter. New contracts for the first quarter of 2023 decreased 14% over 2022’s 2,514 new contracts. Homes in backlog at March 31, 2023 had a total sales value of $1.7 billion, a 38% decrease from a year ago. Backlog units at March 31, 2023 decreased 40% to 3,301 homes, with an average sales price of $522,000. At March 31, 2022, backlog sales value was $2.8 billion, with backlog units of 5,526 and an average sales price of $505,000. M/I Homes had 200 communities at March 31, 2023 compared to 176 communities at March 31, 2022. The Company's cancellation rate was 13% in the first quarter of 2023 and 7% in the first quarter of 2022.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had strong first quarter results highlighted by record revenue, record income and a 10% increase in homes delivered. We are particularly pleased with our results given the material change in housing conditions compared to a year ago; notably, significantly higher interest rates, inflationary pressures and persistent uncertainty regarding the general economy. We increased our revenue by 16% to a record $1.0 billion, increased pre-tax income by 11% to $136 million and delivered 2,007 homes. In addition, our results reflect a 50-basis point improvement in our overhead expense ratio.”

Mr. Schottenstein continued, “Our financial condition is as strong as it’s ever been. We ended the quarter with record shareholders’ equity of $2.2 billion, an increase of 28% over last year, book value of $79 per share, cash of $543 million, zero borrowings on our $650 million credit facility, and a homebuilding debt to capital ratio of 24%.


Despite the changes in housing conditions over the past year, there remains a strong desire for home ownership, and 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 with our diverse markets and product offerings, a strong balance sheet and low leverage.”

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 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.


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,
20232022
New contracts2,171 2,514 
Average community count198 176 
Cancellation rate13 %7 %
Backlog units3,301 5,526 
Backlog sales value$1,724,550 $2,788,234 
Homes delivered2,007 1,823 
Average home closing price$486 $457 
Homebuilding revenue:
   Housing revenue$974,946 $833,163 
   Land revenue303 3,537 
Total homebuilding revenue$975,249 $836,700 
Financial services revenue25,281 24,111 
Total revenue$1,000,530 $860,811 
Cost of sales - operations765,904 647,702 
Gross margin$234,626 $213,109 
General and administrative expense50,960 48,783 
Selling expense49,080 41,421 
Operating income$134,586 $122,905 
Other income(7)(16)
Interest (income) expense(1,389)671 
Income before income taxes$135,982 $122,250 
Provision for income taxes32,916 30,411 
Net income$103,066 $91,839 
Earnings per share:
Basic$3.73 $3.23 
Diluted$3.64 $3.16 
Weighted average shares outstanding:
Basic27,602 28,424 
Diluted28,305 29,072 


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

As of
March 31,
20232022
Assets:
Total cash, cash equivalents and restricted cash (1)
$542,564 $218,606 
Mortgage loans held for sale226,629 200,455 
Inventory:
Lots, land and land development1,279,673 1,116,069 
Land held for sale17,959 8,377 
Homes under construction1,190,519 1,325,672 
Other inventory169,258 132,434 
Total Inventory$2,657,409 $2,582,552 
Property and equipment - net37,419 36,776 
Investments in joint venture arrangements49,031 57,309 
Operating lease right-of-use assets59,787 50,907 
Goodwill16,400 16,400 
Deferred income tax asset18,019 10,251 
Other assets155,112 133,255 
Total Assets$3,762,370 $3,306,511 
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2028 - net$396,298 $395,524 
Senior notes due 2030 - net296,487 295,983 
 Notes payable - other— 1,871 
Total Debt - Homebuilding Operations$692,785 $693,378 
Notes payable bank - financial services operations223,618 203,650 
Total Debt$916,403 $897,028 
Accounts payable208,426 281,387 
Operating lease liabilities60,763 51,546 
Other liabilities393,563 372,861 
Total Liabilities$1,579,155 $1,602,822 
Shareholders’ Equity2,183,215 1,703,689 
Total Liabilities and Shareholders’ Equity$3,762,370 $3,306,511 
Book value per common share$78.77 $60.22 
Homebuilding debt to capital ratio (2)
24 %29 %
(1)Includes $1.4 million and $0.9 million of restricted cash and cash held in escrow for the quarters ended March 31, 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
March 31,
20232022
Cash provided by operating activities$251,499 $69,326 
Cash used in investing activities$(4,793)$(6,634)
Cash used in financing activities$(15,684)$(80,454)
Land/lot purchases$45,646 $93,948 
Land development spending$92,419 $100,697 
Land sale revenue$303 $3,537 
Land sale gross (loss) profit$(3)$967 
Financial services pre-tax income$12,641 $13,055 



M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
Three Months Ended
March 31,
20232022
Net income$103,066 $91,839 
Add:
Provision for income taxes32,916 30,411 
Interest income(3,673)(557)
Interest amortized to cost of sales8,090 7,327 
Depreciation and amortization4,397 4,188 
Non-cash charges2,023 1,831 
Adjusted EBITDA$146,819 $135,039 

(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,
%
Region20232022Change
Northern828 1,190 (30)%
Southern1,343 1,324 1 %
Total2,171 2,514 (14)%


HOMES DELIVERED
Three Months Ended
March 31,
%
Region20232022Change
Northern797 760 5 %
Southern1,210 1,063 14 %
Total2,007 1,823 10 %


BACKLOG
March 31, 2023March 31, 2022
DollarsAverageDollarsAverage
RegionUnits(millions)Sales PriceUnits(millions)Sales Price
Northern1,087 $560 $515,000 2,320 $1,145 $494,000 
Southern2,214 $1,165 $526,000 3,206 $1,643 $513,000 
Total3,301 $1,725 $522,000 5,526 $2,788 $505,000 


LAND POSITION SUMMARY
March 31, 2023March 31, 2022
LotsLots UnderLotsLots Under
RegionOwnedContractTotalOwnedContractTotal
Northern7,712 7,214 14,926 7,359 7,906 15,265 
Southern16,054 9,761 25,815 16,871 13,646 30,517 
Total23,766 16,975 40,741 24,230 21,552 45,782