COLUMBUS, Ohio, Jan. 31,
2024 /PRNewswire/ -- 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.
M/I Homes, Inc. and
Subsidiaries
Summary Statement of
Income (Unaudited)
(Dollars and shares
in thousands, except per share amounts)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
New
contracts
|
1,588
|
|
985
|
|
7,977
|
|
6,668
|
Average community
count
|
209
|
|
187
|
|
202
|
|
179
|
Cancellation
rate
|
13 %
|
|
30 %
|
|
11 %
|
|
14 %
|
Backlog
units
|
3,002
|
|
3,137
|
|
3,002
|
|
3,137
|
Backlog sales
value
|
$ 1,575,643
|
|
$ 1,698,169
|
|
$ 1,575,643
|
|
$ 1,698,169
|
Homes
delivered
|
2,019
|
|
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
revenue
|
2,025
|
|
21,874
|
|
25,301
|
|
34,771
|
Total homebuilding
revenue
|
$
952,897
|
|
$ 1,194,389
|
|
$ 3,939,673
|
|
$ 4,045,198
|
|
|
|
|
|
|
|
|
Financial
services revenue
|
19,691
|
|
22,611
|
|
93,829
|
|
86,195
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
972,588
|
|
$ 1,217,000
|
|
$ 4,033,502
|
|
$ 4,131,393
|
|
|
|
|
|
|
|
|
Cost of sales -
operations
|
728,202
|
|
942,469
|
|
3,014,573
|
|
3,087,551
|
Gross margin
|
$
244,386
|
|
$
274,531
|
|
$ 1,018,929
|
|
$ 1,043,842
|
General and
administrative expense
|
60,284
|
|
52,565
|
|
222,765
|
|
214,811
|
Selling
expense
|
54,256
|
|
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:
|
|
|
|
|
|
|
|
Basic
|
27,769
|
|
27,435
|
|
27,769
|
|
27,876
|
Diluted
|
28,756
|
|
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,
|
|
2023
|
|
2022
|
Assets:
|
|
|
|
Total cash, cash
equivalents and restricted cash
|
$ 732,804
|
|
$ 311,542
|
Mortgage loans held for
sale
|
176,329
|
|
242,539
|
Inventory:
|
|
|
|
Lots, land and land
development
|
1,446,576
|
|
1,294,779
|
Land held for
sale
|
6,932
|
|
3,331
|
Homes under
construction
|
1,177,101
|
|
1,366,804
|
Other
inventory
|
166,542
|
|
163,688
|
Total
Inventory
|
$
2,797,151
|
|
$
2,828,602
|
|
|
|
|
Property and equipment
- net
|
34,918
|
|
37,446
|
Operating lease
right-of-use assets
|
56,364
|
|
60,416
|
Goodwill
|
16,400
|
|
16,400
|
Investments in joint
venture arrangements
|
44,011
|
|
51,554
|
Deferred income tax
asset
|
16,094
|
|
18,019
|
Other assets
|
148,369
|
|
148,405
|
Total Assets
|
$
4,022,440
|
|
$
3,714,923
|
|
|
|
|
Liabilities:
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
Senior notes due 2028
- net
|
396,879
|
|
396,105
|
Senior notes due 2030
- net
|
296,865
|
|
296,361
|
Total Debt -
Homebuilding Operations
|
$ 693,744
|
|
$ 692,466
|
|
|
|
|
Notes payable bank -
financial services operations
|
165,844
|
|
245,741
|
Total Debt
|
$ 859,588
|
|
$ 938,207
|
|
|
|
|
Accounts
payable
|
204,678
|
|
228,597
|
Operating lease
liabilities
|
57,566
|
|
61,310
|
Other
liabilities
|
383,669
|
|
416,084
|
Total
Liabilities
|
$
1,505,501
|
|
$
1,644,198
|
|
|
|
|
Shareholders'
Equity
|
2,516,939
|
|
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
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
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
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
105,282
|
|
$
130,395
|
|
$
465,365
|
|
$
490,662
|
Add:
|
|
|
|
|
|
|
|
Provision for income
taxes
|
32,692
|
|
33,795
|
|
141,912
|
|
144,545
|
Interest
income
|
(10,908)
|
|
(2,034)
|
|
(30,030)
|
|
(4,403)
|
Interest amortized to
cost of sales
|
7,724
|
|
8,724
|
|
33,326
|
|
30,270
|
Depreciation and
amortization
|
4,479
|
|
4,350
|
|
17,369
|
|
17,174
|
Non-cash
charges
|
13,241
|
|
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
Ended
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
Region
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
Northern
|
699
|
|
369
|
|
89 %
|
|
|
3,361
|
|
2,747
|
|
22 %
|
Southern
|
889
|
|
616
|
|
44 %
|
|
|
4,616
|
|
3,921
|
|
18 %
|
Total
|
1,588
|
|
985
|
|
61 %
|
|
|
7,977
|
|
6,668
|
|
20 %
|
|
|
|
|
|
HOMES
DELIVERED
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
%
|
|
|
|
|
|
|
%
|
Region
|
2023
|
|
2022
|
|
Change
|
|
|
2023
|
|
2022
|
|
Change
|
Northern
|
848
|
|
971
|
|
(13) %
|
|
|
3,169
|
|
3,581
|
|
(12) %
|
Southern
|
1,171
|
|
1,413
|
|
(17) %
|
|
|
4,943
|
|
4,785
|
|
3 %
|
Total
|
2,019
|
|
2,384
|
|
(15) %
|
|
|
8,112
|
|
8,366
|
|
(3) %
|
|
|
|
|
|
BACKLOG
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
|
|
Dollars
|
|
Average
|
|
|
|
|
Dollars
|
|
Average
|
Region
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
Northern
|
1,248
|
|
$
663
|
|
$ 531,000
|
|
|
1,056
|
|
$
552
|
|
$ 523,000
|
Southern
|
1,754
|
|
$
912
|
|
$ 520,000
|
|
|
2,081
|
|
$
1,146
|
|
$ 551,000
|
Total
|
3,002
|
|
$
1,576
|
|
$ 525,000
|
|
|
3,137
|
|
$
1,698
|
|
$ 541,000
|
|
|
|
|
|
LAND POSITION
SUMMARY
|
|
December 31,
2023
|
|
|
December 31,
2022
|
|
Lots
|
|
Lots
Under
|
|
|
|
|
Lots
|
|
Lots
Under
|
|
|
Region
|
Owned
|
|
Contract
|
|
Total
|
|
|
Owned
|
|
Contract
|
|
Total
|
Northern
|
6,852
|
|
8,935
|
|
15,787
|
|
|
7,972
|
|
7,406
|
|
15,378
|
Southern
|
17,522
|
|
12,351
|
|
29,873
|
|
|
17,032
|
|
9,643
|
|
26,675
|
Total
|
24,374
|
|
21,286
|
|
45,660
|
|
|
25,004
|
|
17,049
|
|
42,053
|
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SOURCE M/I Homes, Inc.