M/I Homes Reports 2024 Third Quarter Results

COLUMBUS, Ohio , Oct. 30, 2024 /PRNewswire/ -- M/I Homes, Inc. MHO announced results for the three and nine months ended September 30, 2024 .

2024 Third Quarter Highlights: Record third quarter homes delivered, revenue, and income Homes delivered increased 8% to 2,271 Revenue increased 9% to $1.1 billion Pre-tax income increased 6% to $188.7 million , 16.



5% of revenue Net income increased 5% to $145.4 million ( $5.10 per diluted share) Shareholders' equity reached an all-time record $2.

8 billion , a 17% increase from a year ago, with book value per share of $105 New contracts were 2,023, compared to 2,021 in last year's third quarter Repurchased $50 million of common stock Return on equity of 20% The Company reported pre-tax income of $188.7 million and net income of $145.4 million ( $5.

10 per diluted share), both third quarter records. This compares to pre-tax income of $178.0 million and net income of $139.

0 million , or $4.82 per diluted share, for the third quarter of 2023. For the nine months ended September 30, 2024 , pre-tax income increased to a record $563.

1 million and net income increased to a record $430.3 million , or $14.99 per diluted share, compared to $469.

3 million and $360.1 million , or $12.58 per diluted share, for the same period of 2023, respectively.

Homes delivered in 2024's third quarter increased 8% to a third quarter record of 2,271 homes. This compares to 2,096 homes delivered in 2023's third quarter. Homes delivered for the nine months ended September 30, 2024 increased 9% to 6,653 from 2023's deliveries of 6,093 which represents an all-time record.

New contracts were 2,023 for the third quarter of 2024 compared to 2,021 in last year's third quarter. For the first nine months of 2024, new contracts increased 7% to 6,825 compared to 6,389 in 2023. Homes in backlog at September 30, 2024 had a total sales value of $1.

73 billion , a 1% decrease from a year ago. Backlog units at September 30, 2024 decreased 8% to 3,174 homes, with an all-time record average sales price of $544,000 . At September 30, 2023, backlog sales value was $1.

75 billion , with backlog units of 3,433 and an average sales price of $510,000 . M/I Homes had 217 communities at September 30, 2024 compared to 204 communities at September 30, 2023. The Company's cancellation rate was 10% in both the third quarter of 2024 and the third quarter of 2023.

Robert H. Schottenstein , Chief Executive Officer and President, commented, "We had a very strong third quarter, highlighted by record homes delivered, record revenue, and record income. We increased homes delivered by 8% to a record 2,271, increased revenue by 9% to a record $1.

1 billion , increased pre-tax income by 6% to a record $188.7 million and we continued to generate strong returns. Pre-tax income equaled 16.

5% of revenue. Our gross margin was strong at 27% and our return on equity was 20%. Mr.

Schottenstein continued, "Our financial condition is excellent. We ended the quarter with record shareholders' equity of $2.8 billion , an increase of 17% from a year ago, book value of $105 per share, cash of $720 million , a homebuilding debt to capital ratio of 20%, and a net-debt-to-capital ratio of negative 1%.

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 2024." The Company will broadcast live its earnings conference call today at 10:00 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 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.

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, 2024 2023 2024 2023 New contracts 2,023 2,021 6,825 6,389 Average community count 214 200 215 199 Cancellation rate 10 % 10 % 9 % 11 % Backlog units 3,174 3,433 3,174 3,433 Backlog sales value $ 1,725,423 $ 1,751,442 $ 1,725,423 $ 1,751,442 Homes delivered 2,271 2,096 6,653 6,093 Average home closing price $ 489 $ 481 $ 481 $ 486 Homebuilding revenue: Housing revenue $ 1,111,389 $ 1,008,356 $ 3,199,946 $ 2,963,500 Land revenue 1,550 14,424 11,753 23,276 Total homebuilding revenue $ 1,112,939 $ 1,022,780 $ 3,211,699 $ 2,986,776 Financial services revenue 29,970 23,591 87,694 74,138 Total revenue $ 1,142,909 $ 1,046,371 $ 3,299,393 $ 3,060,914 Cost of sales - operations 833,468 764,638 2,397,329 2,286,371 Gross margin $ 309,441 $ 281,733 $ 902,064 $ 774,543 General and administrative expense 68,285 55,867 188,363 162,481 Selling expense 59,163 53,735 171,598 154,686 Operating income $ 181,993 $ 172,131 $ 542,103 $ 457,376 Other income — 1 — (34) Interest income, net of interest expense (6,680) (5,834) (20,948) (11,893) Income before income taxes $ 188,673 $ 177,964 $ 563,051 $ 469,303 Provision for income taxes 43,224 38,948 132,795 109,220 Net income $ 145,449 $ 139,016 $ 430,256 $ 360,083 Earnings per share: Basic $ 5.26 $ 4.

98 $ 15.45 $ 12.97 Diluted $ 5.

10 $ 4.82 $ 14.99 $ 12.

58 Weighted average shares outstanding: Basic 27,644 27,909 27,857 27,769 Diluted 28,534 28,837 28,703 28,631 M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) As of September 30, 2024 2023 Assets: Total cash, cash equivalents and restricted cash (1) $ 719,920 $ 736,252 Mortgage loans held for sale 242,812 207,181 Inventory: Lots, land and land development 1,558,300 1,355,622 Land held for sale 3,859 6,881 Homes under construction 1,401,260 1,218,256 Other inventory 169,275 159,769 Total Inventory $ 3,132,694 $ 2,740,528 Property and equipment - net 34,714 36,015 Investments in joint venture arrangements 63,095 44,866 Operating lease right-of-use assets 55,259 58,304 Goodwill 16,400 16,400 Deferred income tax asset 15,313 18,019 Other assets 179,650 145,803 Total Assets $ 4,459,857 $ 4,003,368 Liabilities: Debt - Homebuilding Operations: Senior notes due 2028 - net $ 397,459 $ 396,685 Senior notes due 2030 - net 297,243 296,739 Total Debt - Homebuilding Operations $ 694,702 $ 693,424 Notes payable bank - financial services operations 235,441 200,619 Total Debt $ 930,143 $ 894,043 Accounts payable 256,708 250,937 Operating lease liabilities 56,667 59,433 Other liabilities 370,983 373,243 Total Liabilities $ 1,614,501 $ 1,577,656 Shareholders' Equity 2,845,356 2,425,712 Total Liabilities and Shareholders' Equity $ 4,459,857 $ 4,003,368 Book value per common share $ 104.59 $ 87.

10 Homebuilding debt to capital ratio (2) 20 % 22 % (1) Includes $0.2 million of restricted cash and cash held in escrow for the quarter ended September 30, 2023. (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, 2024 2023 2024 2023 Cash (used in) provided by operating activities $ (67,942) $ 79,541 $ 75,341 $ 497,230 Cash used in by investing activities $ (17,496) $ (11,330) $ (45,037) $ (14,132) Cash used in financing activities $ (32,100) $ (246) $ (43,188) $ (58,388) Land/lot purchases $ 138,711 $ 105,860 $ 365,553 $ 247,574 Land development spending $ 180,753 $ 151,222 $ 444,659 $ 352,555 Land sale revenue $ 1,550 $ 14,424 $ 11,753 $ 23,276 Land sale gross profit $ 72 $ 2,115 $ 3,318 $ 3,004 Financial services pre-tax income $ 12,936 $ 9,878 $ 39,648 $ 33,678 M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income $ 145,449 $ 139,016 $ 430,256 $ 360,083 Add: Provision for income taxes 43,224 38,948 132,795 109,220 Interest income - net (10,089) (8,469) (30,542) (19,122) Interest amortized to cost of sales 7,632 8,778 23,872 25,552 Depreciation and amortization 4,816 4,227 13,890 12,890 Non-cash charges 6,750 2,682 14,099 7,056 Adjusted EBITDA $ 197,782 $ 185,182 $ 584,370 $ 495,679 (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 2024 2023 Change 2024 2023 Change Northern 890 885 1 % 3,054 2,662 15 % Southern 1,133 1,136 — % 3,771 3,727 1 % Total 2,023 2,021 — % 6,825 6,389 7 % HOMES DELIVERED Three Months Ended Nine Months Ended September 30, September 30, % % Region 2024 2023 Change 2024 2023 Change Northern 1,015 741 37 % 2,809 2,321 21 % Southern 1,256 1,355 (7) % 3,844 3,772 2 % Total 2,271 2,096 8 % 6,653 6,093 9 % BACKLOG September 30, 2024 September 30, 2023 Dollars Average Dollars Average Region Units (millions) Sales Price Units (millions) Sales Price Northern 1,493 $ 803 $ 538,000 1,397 $ 727 $ 521,000 Southern 1,681 $ 923 $ 549,000 2,036 $ 1,024 $ 503,000 Total 3,174 $ 1,726 $ 544,000 3,433 $ 1,751 $ 510,000 LAND POSITION SUMMARY September 30, 2024 September 30, 2023 Lots Lots Under Lots Lots Under Region Owned Contract Total Owned Contract Total Northern 6,528 10,885 17,413 7,341 8,385 15,726 Southern 17,114 17,678 34,792 15,835 13,267 29,102 Total 23,642 28,563 52,205 23,176 21,652 44,828 View original content to download multimedia: https://www.

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