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): January 31, 2024

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 January 31, 2024, M/I Homes, Inc. issued a press release reporting financial results for the three and twelve months ended December 31, 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. The information in Exhibit 99.1 is furnished pursuant to Item 2.02 on Form 8-K.

SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.


Exhibit No.						Description of Exhibit

99.1						Press Release dated January 31, 2024.

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: January 31, 2024

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

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 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

Cover Page Cover Page	Jan. 31, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 31, 2024
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