Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2023

M/I HOMES, INC.

(Exact name of registrant as specified in its charter)

Ohio

1-12434

31-1210837

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

4131 Worth Avenue, Suite 500 Columbus, OH 43219

(Address of principal executive offices) (Zip Code)

(614) 418-8000

(Telephone Number)


N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $.01	MHO	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

SECTION 2 FINANCIAL INFORMATION

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 25, 2023, M/I Homes, Inc. (the “Company”) issued a press release reporting financial results for the three- and nine-months ended September 30, 2023. A copy of this press release, including information concerning forward-looking statements and factors that may affect our future results, is attached hereto as Exhibit 99.1.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.


Exhibit No.						Description of Exhibit

99.1						Press release dated October 25, 2023.

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).*

*Submitted electronically with this Report in accordance with the provisions of Regulation S-T.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 25, 2023

M/I Homes, Inc.


By:			/s/ Ann Marie W. Hunker
			Ann Marie W. Hunker
			VP, Chief Accounting Officer and Controller

Exhibit 99.1

M/I Homes Reports

2023 Third Quarter Results

Columbus, Ohio (October 25, 2023) - M/I Homes, Inc. (NYSE:MHO) announced results for the three and nine months ended September 30, 2023.

2023 Third Quarter Highlights:

•New contracts increased 50% to 2,021 contracts

•Delivered 2,096 homes, up 3% from 2022’s 2,026 homes delivered

•Record third quarter revenue of $1.0 billion, up 3% from 2022’s third quarter

•Pre-tax income increased 7% to $178.0 million, a third quarter record

•All-time quarterly record net income of $139.0 million ($4.82 per diluted share), up 6% from 2022’s $131.6 million

•Shareholders’ equity reached a record of $2.4 billion, a 25% increase from a year ago, with book value per share of $87

•Return on equity of 23%

For the third quarter of 2023, the Company reported pre-tax income of $178.0 million and net income of $139.0 million, or $4.82 per diluted share. This compares to pre-tax income of $166.6 million and net income of $131.6 million, or $4.67 per diluted share, for the third quarter of 2022. For the nine months ended September 30, 2023, net income decreased slightly to $360.1 million, or $12.58 per diluted share, compared to $360.3 million, or $12.59 per diluted share, for the same period of 2022.

Homes delivered in 2023's third quarter increased 3% to 2,096 homes. This compares to 2,026 homes delivered in 2022’s third quarter. Homes delivered for the nine months ended September 30, 2023 increased 2% to 6,093 from 2022’s deliveries of 5,982. New contracts for the third quarter of 2023 increased 50% to 2,021 new contracts compared to 1,349 in 2022. For the first nine months of 2023, new contracts increased 12% to 6,389 compared to 5,683 in 2022. Homes in backlog at September 30, 2023 had a total sales value of $1.8 billion, a 28% decrease from a year ago. Backlog units at September 30, 2023 decreased 24% to 3,433 homes, with an average sales price of $510,000. At September 30, 2022, backlog sales value was $2.4 billion, with backlog units of 4,536 and an average sales price of $533,000. M/I Homes had 204 communities at September 30, 2023 compared to 178 communities at September 30, 2022. The Company's cancellation rate was 10% in the third quarter of 2023 compared to 17% in the third quarter of 2022.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had a very strong third quarter, highlighted by record revenue, record income, a 50% increase in new contracts and very strong returns. We increased revenue by 3% to a record $1.0 billion, increased pre-tax income by 7% to a record $178.0 million, generated 27% gross margins and 17% pre-tax income margins. These results produced a solid 23% return on equity.”

Mr. Schottenstein continued, “Our financial condition is strong. We ended the quarter with record shareholders’ equity of $2.4 billion, an increase of 25% from a year ago, book value of $87 per share, cash of $736 million, zero

borrowings on our $650 million credit facility, and a homebuilding debt to capital ratio of 22%. 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 2023.”

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 October 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						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
New contracts	2,021			1,349			6,389			5,683
Average community count	200			173			199			174
Cancellation rate	10		%	17		%	11		%	11		%
Backlog units	3,433			4,536			3,433			4,536
Backlog sales value	$	1,751,442		$	2,419,291		$	1,751,442		$	2,419,291
Homes delivered	2,096			2,026			6,093			5,982
Average home closing price	$	481		$	487		$	486		$	474

Homebuilding revenue:
Housing revenue	$	1,008,356		$	986,843		$	2,963,500		$	2,837,912
Land revenue	14,424			5,986			23,276			12,897
Total homebuilding revenue	$	1,022,780		$	992,829		$	2,986,776		$	2,850,809

Financial services revenue	23,591			20,099			74,138			63,584
Total revenue	$	1,046,371		$	1,012,928		$	3,060,914		$	2,914,393

Cost of sales - operations	764,638			741,013			2,286,371			2,145,082



Gross margin	$	281,733		$	271,915		$	774,543		$	769,311
General and administrative expense	55,867			58,247			162,481			162,246
Selling expense	53,735			46,373			154,686			134,000
Operating income	$	172,131		$	167,295		$	457,376		$	473,065

Other income	1			—			(34)			(17)
Interest (income) expense - net	(5,834)			701			(11,893)			2,065

Income before income taxes	$	177,964		$	166,594		$	469,303		$	471,017
Provision for income taxes	38,948			35,004			109,220			110,750
Net income	$	139,016		$	131,590		$	360,083		$	360,267




Earnings per share:
Basic	$	4.98		$	4.76		$	12.97		$	12.86
Diluted	$	4.82		$	4.67		$	12.58		$	12.59

Weighted average shares outstanding:
Basic	27,909			27,618			27,769			28,025
Diluted	28,837			28,185			28,631			28,610

M/I Homes, Inc. and Subsidiaries

Summary Balance Sheet and Other Information (unaudited)

(Dollars in thousands, except per share amounts)


	As of
	September 30,
	2023			2022
Assets:
Total cash, cash equivalents and restricted cash (1)	$	736,252		$	67,761
Mortgage loans held for sale	207,181			183,327
Inventory:
Lots, land and land development	1,355,622			1,230,139
Land held for sale	6,881			9,174
Homes under construction	1,218,256			1,624,831
Other inventory	159,769			152,591
Total Inventory	$	2,740,528		$	3,016,735

Property and equipment - net	36,015			35,217
Investments in joint venture arrangements	44,866			51,700
Operating lease right-of-use assets	58,304			55,388
Goodwill	16,400			16,400
Deferred income tax asset	18,019			10,251
Other assets	145,803			151,134
Total Assets	$	4,003,368		$	3,587,913

Liabilities:
Debt - Homebuilding Operations:


Senior notes due 2028 - net	$	396,685		$	395,911
Senior notes due 2030 - net	296,739			296,235



Notes payable - other	—			429
Total Debt - Homebuilding Operations	$	693,424		$	692,575


Notes payable bank - financial services operations	200,619			189,371
Total Debt	$	894,043		$	881,946

Accounts payable	250,937			296,326
Operating lease liabilities	59,433			56,199
Other liabilities	373,243			415,669
Total Liabilities	$	1,577,656		$	1,650,140

Shareholders’ Equity	2,425,712			1,937,773
Total Liabilities and Shareholders’ Equity	$	4,003,368		$	3,587,913

Book value per common share	$	87.10		$	70.65
Homebuilding debt to capital ratio (2)	22		%	26		%

(1)Includes $0.2 million and $0.7 million of restricted cash and cash held in escrow for the quarters ended September 30, 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022


Cash provided by (used in) operating activities	$	79,541	$	(92,689)	$	497,230	$	(14,149)
Cash used in investing activities	$	(11,330)	$	(7,635)	$	(14,132)	$	(19,098)
Cash used in financing activities	$	(246)	$	(20,670)	$	(58,388)	$	(135,360)

Land/lot purchases	$	105,860	$	74,989	$	247,574	$	289,604
Land development spending	$	151,222	$	142,000	$	352,555	$	349,240
Land sale revenue	$	14,424	$	5,986	$	23,276	$	12,897
Land sale gross profit	$	2,115	$	1,350	$	3,004	$	2,908

Financial services pre-tax income	$	9,878	$	7,883	$	33,678	$	29,605

M/I Homes, Inc. and Subsidiaries

Non-GAAP Financial Results (1)

(Dollars in thousands)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	139,016	$	131,590	$	360,083	$	360,267
Add:
Provision for income taxes	38,948		35,004		109,220		110,750
Interest income - net	(8,469)		(1,062)		(19,122)		(2,369)
Interest amortized to cost of sales	8,778		6,683		25,602		21,546
Depreciation and amortization	4,227		4,350		12,890		12,824
Non-cash charges	2,682		2,764		7,006		6,613
Adjusted EBITDA	$	185,182	$	179,329	$	495,679	$	509,631

(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	2023	2022	Change		2023	2022	Change
Northern	885	466	90	%	2,662	2,378	12	%
Southern	1,136	883	29	%	3,727	3,305	13	%
Total	2,021	1,349	50	%	6,389	5,683	12	%


	HOMES DELIVERED
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
			%				%
Region	2023	2022	Change		2023	2022	Change
Northern	741	850	(13)	%	2,321	2,610	(11)	%
Southern	1,355	1,176	15	%	3,772	3,372	12	%
Total	2,096	2,026	3	%	6,093	5,982	2	%


	BACKLOG
	September 30, 2023					September 30, 2022
		Dollars		Average			Dollars		Average
Region	Units	(millions)		Sales Price		Units	(millions)		Sales Price
Northern	1,397	$	727	$	521,000	1,658	$	856	$	517,000
Southern	2,036	$	1,024	$	503,000	2,878	$	1,563	$	543,000
Total	3,433	$	1,751	$	510,000	4,536	$	2,419	$	533,000


	LAND POSITION SUMMARY
	September 30, 2023			September 30, 2022
	Lots	Lots Under		Lots	Lots Under
Region	Owned	Contract	Total	Owned	Contract	Total
Northern	7,341	8,385	15,726	7,713	8,111	15,824
Southern	15,835	13,267	29,102	17,204	13,044	30,248
Total	23,176	21,652	44,828	24,917	21,155	46,072

Cover Page Cover Page	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 25, 2023
Entity Registrant Name	M/I HOMES, INC.
Entity Incorporation, State or Country Code	OH
Entity File Number	1-12434
Entity Tax Identification Number	31-1210837
Entity Address, Address Line One	4131 Worth Avenue
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	418-8000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, par value $.01
Trading Symbol	MHO
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000799292
Amendment Flag	false