EX-99.1 2 exhibit991earningspressrel.htm EX-99.1 Document

Exhibit 99.1
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M/I Homes Reports
2024 First Quarter Results

Columbus, Ohio (April 24, 2024) - M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2024.

2024 First Quarter Highlights:
•New contracts increased 17% to 2,547
•Homes delivered increased 8% to 2,158, a first quarter record
•Revenue increased 5% to $1.05 billion, a first quarter record
•Pre-tax income increased 33% to $180.2 million, 17.2% of revenue and a first quarter record
•Net income increased 34% to a first quarter record $138.1 million ($4.78 per diluted share)
•Shareholders’ equity reached a record of $2.6 billion, a 21% increase from a year ago, with book
value per share of $95
•Backlog sales value increased to $1.8 billion, up 4%
•Return on equity of 21%

The Company reported record first quarter pre-tax income of $180.2 million and record first quarter net income of $138.1 million, or $4.78 per diluted share. This compares to pre-tax income of $136.0 million and net income of $103.1 million, or $3.64 per diluted share, for the first quarter of 2023.

Homes delivered in 2024's first quarter increased 8% to 2,158 homes, a first quarter record for the Company. This compares to 2,007 homes delivered in 2023’s first quarter. New contracts for the first quarter of 2024 increased 17% to 2,547 compared to 2,171 in 2023. Homes in backlog at March 31, 2024 had a total sales value of $1.8 billion, a 4% increase from a year ago. Backlog units at March 31, 2024 increased 3% to 3,391 homes, with an average sales price of $528,000. At March 31, 2023, backlog sales value was $1.7 billion, with backlog units of 3,301 and an average sales price of $522,000. M/I Homes had 219 communities at March 31, 2024 compared to 200 communities at March 31, 2023. The Company's cancellation rate was 8% in the first quarter of 2024 compared to 13% in the first quarter of 2023.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had an exceptional first quarter - setting first quarter records in homes delivered, revenue, and income. In addition, we were very pleased with our new contracts increasing by 17%, as well as producing strong margins and returns. Our homes delivered increased 8% to a record 2,158, revenue increased 5% to a record $1.05 billion and our gross margins improved by 360 basis points to 27%. This resulted in pre-tax income increasing by 33% to a first quarter record of $180.2 million, 17.2% of revenue, and a 21% return on equity.”

Mr. Schottenstein continued, “Our financial condition is excellent. We ended the quarter with record shareholders’ equity of $2.6 billion, book value of $95 per share, cash of $870 million, zero borrowings on our $650 million credit facility, and a homebuilding debt to capital ratio of 21%, and net-debt-to-capital ratio of negative 7%. Given our performance in the first quarter of 2024, our diverse product offerings and well-located communities, we are positioned to have a strong 2024.”


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 April 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, 2023, 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,
20242023
New contracts2,547 2,171 
Average community count216 198 
Cancellation rate8 %13 %
Backlog units3,391 3,301 
Backlog sales value$1,789,340 $1,724,550 
Homes delivered2,158 2,007 
Average home closing price$471 $486 
Homebuilding revenue:
   Housing revenue$1,016,513 $974,946 
   Land revenue3,228 303 
Total homebuilding revenue$1,019,741 $975,249 
Financial services revenue26,962 25,281 
Total revenue$1,046,703 $1,000,530 
Cost of sales - operations763,360 765,904 
Gross margin$283,343 $234,626 
General and administrative expense56,084 50,960 
Selling expense53,940 49,080 
Operating income$173,319 $134,586 
Other income— (7)
Interest income, net of interest expense
(6,920)(1,389)
Income before income taxes$180,239 $135,982 
Provision for income taxes42,178 32,916 
Net income$138,061 $103,066 
Earnings per share:
Basic$4.92 $3.73 
Diluted$4.78 $3.64 
Weighted average shares outstanding:
Basic28,052 27,602 
Diluted28,888 28,305 


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

As of
March 31,
20242023
Assets:
Total cash, cash equivalents and restricted cash (1)
$870,162 $542,564 
Mortgage loans held for sale235,047 226,629 
Inventory:
Lots, land and land development1,448,459 1,279,673 
Land held for sale136 17,959 
Homes under construction1,169,791 1,190,519 
Other inventory155,779 169,258 
Total Inventory$2,774,165 $2,657,409 
Property and equipment - net33,145 37,419 
Investments in joint venture arrangements59,146 49,031 
Operating lease right-of-use assets57,890 59,787 
Goodwill16,400 16,400 
Deferred income tax asset15,313 18,019 
Other assets150,683 155,112 
Total Assets$4,211,951 $3,762,370 
Liabilities:
Debt - Homebuilding Operations:
Senior notes due 2028 - net$397,072 $396,298 
Senior notes due 2030 - net296,991 296,487 
Total Debt - Homebuilding Operations$694,063 $692,785 
Notes payable bank - financial services operations224,321 223,618 
Total Debt$918,384 $916,403 
Accounts payable224,972 208,426 
Operating lease liabilities59,163 60,763 
Other liabilities370,647 393,563 
Total Liabilities$1,573,166 $1,579,155 
Shareholders’ Equity2,638,785 2,183,215 
Total Liabilities and Shareholders’ Equity$4,211,951 $3,762,370 
Book value per common share$95.09 $78.77 
Homebuilding debt to capital ratio (2)
21 %24 %
(1)Includes $0.5 million and $1.4 million of restricted cash and cash held in escrow for the quarters ended March 31, 2024 and 2023, 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,
20242023
Cash provided by operating activities
$115,772 $251,499 
Cash used in investing activities
$(17,108)$(4,793)
Cash provided by (used in) financing activities
$38,694 $(15,684)
Land/lot purchases$107,660 $45,646 
Land development spending$119,367 $92,419 
Land sale revenue$3,228 $303 
Land sale gross profit (loss)
$1,313 $(3)
Financial services pre-tax income$12,312 $12,641 



M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
Three Months Ended
March 31,
20242023
Net income$138,061 $103,066 
Add:
Provision for income taxes42,178 32,916 
Interest income - net
(9,767)(3,673)
Interest amortized to cost of sales8,302 8,040 
Depreciation and amortization4,467 4,397 
Non-cash charges3,539 2,073 
Adjusted EBITDA$186,780 $146,819 

(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,
%
Region20242023Change
Northern1,162 828 40 %
Southern1,385 1,343 3 %
Total2,547 2,171 17 %


HOMES DELIVERED
Three Months Ended
March 31,
%
Region20242023Change
Northern843 797 6 %
Southern1,315 1,210 9 %
Total2,158 2,007 8 %


BACKLOG
March 31, 2024March 31, 2023
DollarsAverageDollarsAverage
RegionUnits(millions)Sales PriceUnits(millions)Sales Price
Northern1,567 $822 $525,000 1,087 $560 $515,000 
Southern1,824 $967 $530,000 2,214 $1,165 $526,000 
Total3,391 $1,789 $528,000 3,301 $1,725 $522,000 


LAND POSITION SUMMARY
March 31, 2024March 31, 2023
LotsLots UnderLotsLots Under
RegionOwnedContractTotalOwnedContractTotal
Northern7,005 9,279 16,284 7,712 7,214 14,926 
Southern16,821 14,352 31,173 16,054 9,761 25,815 
Total23,826 23,631 47,457 23,766 16,975 40,741