EX-99.1 2 exhibit9914thqtr2023earnin.htm EX-99.1 Document

Exhibit 99.1

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M/I Homes Reports
Fourth Quarter and Year-End Results

Columbus, Ohio (January 31, 2024) - M/I Homes, Inc. (NYSE:MHO) announced results for its fourth quarter and year ended December 31, 2023.

2023 Fourth Quarter Results:
•New contracts increased 61% to 1,588
•Backlog sales value of $1.6 billion compared to $1.7 billion last year
•Homes delivered decreased 15% to 2,019
•Revenue of $972.6 million, down 20%
•Pre-tax income of $138.0 million, down 16%
•Net income decreased 19% to $105.3 million ($3.66 per diluted share)
compared to $130.4 million ($4.65 per diluted share) in 2022

2023 Full Year Results:
•New contracts increased 20% to 7,977
•Homes delivered of 8,112 compared to 8,366 in 2022, a 3% decrease
•Revenue of $4.0 billion, a decrease of 2% over last year
•Pre-tax income of $607.3 million, a 4% decrease compared to $635.2 million in 2022
•Net income of $465.4 million ($16.21 per diluted share) compared to $490.7 million in 2022 ($17.24 per diluted share)
•Shareholders’ equity reached an all-time record of $2.5 billion, a 22% increase from a year ago,
with book value per share of $91
•Return on equity of 20.2%
•Homebuilding debt to capital ratio of 22% compared to 25% at December 31, 2022

For the fourth quarter of 2023, the Company reported net income of $105.3 million, or $3.66 per diluted share, compared to net income of $130.4 million, or $4.65 per diluted share, for the fourth quarter of 2022. For the year ended December 31, 2023, the Company reported net income of $465.4 million, or $16.21 per diluted share, compared to net income of $490.7 million, or $17.24 per diluted share in 2022.
Homes delivered in 2023’s fourth quarter reached 2,019, a 15% decrease compared to 2,384 deliveries in 2022’s fourth quarter. Homes delivered for the twelve months ended December 31, 2023 declined 3% to 8,112 from 2022’s deliveries of 8,366. New contracts for 2023’s fourth quarter increased 61% to 1,588 from 985 new contracts in 2022’s fourth quarter. For 2023, new contracts were 7,977, a 20% increase from 2022’s 6,668 new contracts. Homes in backlog decreased 4% at December 31, 2023 to 3,002 units, with a sales value of $1.6 billion, a 7% decrease from last year, and the average sales price in backlog decreased 3% to $525,000. At December 31,


2022, the sales value of the 3,137 homes in backlog was $1.7 billion, with an average sales price of $541,000. M/I Homes had 213 active communities at December 31, 2023 compared to 196 a year ago. The Company’s cancellation rate was 13% in 2023’s fourth quarter compared to 30% for the prior year’s fourth quarter.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “2023 was a very strong year for our Company highlighted by earning $607 million of pretax income, representing 15% of revenue with gross margins of 25.3%. Revenue reached $4 billion, new contracts increased 20% to 7,977 homes and our return on equity was a very solid 20.2%. We are particularly pleased with these results given the significant headwinds the housing industry faced entering 2023, including higher interest rates, inflationary pressures, and uncertainty in the general economy.”

Mr. Schottenstein continued, “We are in excellent financial condition. We ended the year with record shareholders’ equity of $2.5 billion, cash of $733 million, zero borrowings under our $650 million credit facility, and a homebuilding debt to capital ratio of 22%. And, our year-end book value was a record $91 per share. 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 given the strength of our balance sheet, our diverse product offerings, and our well-located communities.”

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 January 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, 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 EndedTwelve Months Ended
December 31,December 31,
2023202220232022
New contracts1,588 985 7,977 6,668 
Average community count209 187 202 179 
Cancellation rate13 %30 %11 %14 %
Backlog units3,002 3,137 3,002 3,137 
Backlog sales value$1,575,643 $1,698,169 $1,575,643 $1,698,169 
Homes delivered2,019 2,384 8,112 8,366 
Average home closing price$471 $492 $483 $479 
Homebuilding revenue:
   Housing revenue$950,872 $1,172,515 $3,914,372 $4,010,427 
   Land revenue2,025 21,874 25,301 34,771 
Total homebuilding revenue$952,897 $1,194,389 $3,939,673 $4,045,198 
   Financial services revenue19,691 22,611 93,829 86,195 
Total revenue$972,588 $1,217,000 $4,033,502 $4,131,393 
Cost of sales - operations728,202 942,469 3,014,573 3,087,551 
Gross margin$244,386 $274,531 $1,018,929 $1,043,842 
General and administrative expense60,284 52,565 222,765 214,811 
Selling expense54,256 57,580 208,942 191,580 
Operating income$129,846 $164,386 $587,222 $637,451 
Other loss (income)1 11 (33)(6)
Interest (income) expense
(8,129)185 (20,022)2,250 
Income before income taxes$137,974 $164,190 $607,277 $635,207 
Provision for income taxes 32,692 33,795 141,912 144,545 
Net income$105,282 $130,395 $465,365 $490,662 
Earnings per share:
Basic$3.79 $4.75 $16.76 $17.60 
Diluted$3.66 $4.65 $16.21 $17.24 
Weighted average shares outstanding:
Basic27,769 27,435 27,769 27,876 
Diluted28,756 28,017 28,716 28,463 



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

As of
December 31,
20232022
Assets:
Total cash, cash equivalents and restricted cash$732,804 $311,542 
Mortgage loans held for sale176,329 242,539 
Inventory:
Lots, land and land development1,446,576 1,294,779 
Land held for sale6,932 3,331 
Homes under construction1,177,101 1,366,804 
Other inventory166,542 163,688 
Total Inventory$2,797,151 $2,828,602 
Property and equipment - net34,918 37,446 
Operating lease right-of-use assets56,364 60,416 
Goodwill16,400 16,400 
Investments in joint venture arrangements44,011 51,554 
Deferred income tax asset16,094 18,019 
Other assets148,369 148,405 
Total Assets$4,022,440 $3,714,923 
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2028 - net396,879 396,105 
Senior notes due 2030 - net296,865 296,361 
Total Debt - Homebuilding Operations$693,744 $692,466 
Notes payable bank - financial services operations165,844 245,741 
Total Debt$859,588 $938,207 
Accounts payable204,678 228,597 
Operating lease liabilities57,566 61,310 
Other liabilities383,669 416,084 
Total Liabilities$1,505,501 $1,644,198 
Shareholders’ Equity2,516,939 2,070,725 
Total Liabilities and Shareholders’ Equity$4,022,440 $3,714,923 
Book value per common share$90.66 $75.46 
Homebuilding debt / capital ratio(1)
22 %25 %

(1)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
(Dollars in thousands)

Three Months EndedTwelve Months Ended
December 31,December 31,
2023202220232022
Cash provided by operating activities
$54,901 $198,220 $552,131 $184,071 
Cash used in investing activities$(4,500)$(8,282)$(18,632)$(27,380)
Cash (used in) provided by financing activities
$(53,849)$53,843 $(112,237)$(81,517)
Land/lot purchases$95,930 $51,480 $343,504 $341,084 
Land development spending$159,550 $146,937 $512,105 $496,177 
Land sale revenue$2,025 $21,874 $25,301 $34,771 
Land sale gross profit$356 $8,827 $3,360 $11,735 
Financial services pre-tax income$4,676 $9,655 $38,354 $39,260 




M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)

Three Months EndedTwelve Months Ended
December 31,December 31,
2023202220232022
Net income$105,282 $130,395 $465,365 $490,662 
Add:
Provision for income taxes32,692 33,795 141,912 144,545 
Interest income(10,908)(2,034)(30,030)(4,403)
Interest amortized to cost of sales7,724 8,724 33,326 30,270 
Depreciation and amortization4,479 4,350 17,369 17,174 
Non-cash charges13,241 20,526 20,247 27,139 
Adjusted EBITDA$152,510 $195,756 $648,189 $705,387 
(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 EndedTwelve Months Ended
December 31,December 31,
%%
Region20232022Change20232022Change
Northern699 369 89 %3,361 2,747 22 %
Southern889 616 44 %4,616 3,921 18 %
Total1,588 985 61 %7,977 6,668 20 %

HOMES DELIVERED
Three Months EndedTwelve Months Ended
December 31,December 31,
%%
Region20232022Change20232022Change
Northern848 971 (13)%3,169 3,581 (12)%
Southern1,171 1,413 (17)%4,943 4,785 3 %
Total2,019 2,384 (15)%8,112 8,366 (3)%

BACKLOG
December 31, 2023December 31, 2022
DollarsAverageDollarsAverage
RegionUnits(millions)Sales PriceUnits(millions)Sales Price
Northern1,248 $663 $531,000 1,056 $552 $523,000 
Southern1,754 $912 $520,000 2,081 $1,146 $551,000 
Total3,002 $1,576 $525,000 3,137 $1,698 $541,000 

LAND POSITION SUMMARY
December 31, 2023December 31, 2022
LotsLots UnderLotsLots Under
RegionOwnedContractTotalOwnedContractTotal
Northern6,852 8,935 15,787 7,972 7,406 15,378 
Southern17,522 12,351 29,873 17,032 9,643 26,675 
Total24,374 21,286 45,660 25,004 17,049 42,053