M/I Homes Reports Fourth Quarter and Year-End Results

COLUMBUS, Ohio, Feb. 2, 2023 /PRNewswire/ — M/I Homes, Inc. (NYSE:MHO) announced results for its fourth quarter and year ended December 31, 2023.

2023 Fourth Quarter Results:

• Homes delivered increased 3% to 2,316, an all-time quarterly record
• Revenue increased 16% to an all-time quarterly record of $1.1 billion
• Pre-tax income increased 39% to $141.4 million, an all-time quarterly record
• Net income increased 42% to $113.4 million ($3.83 per diluted share) compared to $80.1 million ($2.71 per diluted share) in 2020
• New contracts were 1,744 compared to 2,128 in 2020’s fourth quarter
• Backlog units increased 10% to 4,835, a fourth quarter record
• Backlog sales value reached $2.4 billion, a fourth quarter record

2023 Full Year Results:

• Record homes delivered of 8,638, a 12% increase
• Record revenue of $3.7 billion, an increase of 23%
• Record pre-tax income of $509.1 million, a 64% increase compared to $310.0 million in 2020
• Net income increased 65% to $396.9 million ($13.28 per diluted share) compared to $239.9 million in 2020 ($8.23 per diluted share)
• New contracts were 9,084, a decrease of 4% when compared to the record level achieved in 2020
• Shareholders’ equity reached an all-time record of $1.6 billion, a 29% increase from a year ago, with book value per share of $57
• Return on equity of 27.4%
• Homebuilding debt to capital ratio of 30% compared to 34% at December 31, 2020

For the fourth quarter of 2023, the Company reported record net income of $113.4 million, or $3.83 per diluted share.  This compares to net income of $80.1 million, or $2.71 per diluted share, for the fourth quarter of 2020.  Net income in the fourth quarter of 2020 included $6.4 million of after-tax impairment charges ($0.22 per diluted share).

For the year ended December 31, 2023, the Company reported net income of $396.9 million, or $13.28 per diluted share, compared to net income of $239.9 million, or $8.23 per diluted share, in 2020.  Net income in 2023 included a $7.0 million after-tax loss on early extinguishment of debt ($0.23 per diluted share) while net income in 2020 included $6.4 million of after-tax impairment charges ($0.22 per diluted share).

Homes delivered in 2023’s fourth quarter reached an all-time quarterly record of 2,316, increasing 3% compared to 2,242 deliveries in 2020’s fourth quarter.  Homes delivered for the twelve months ended December 31, 2023 increased 12% to a record 8,638 from 2020’s deliveries of 7,709.  New contracts for 2023’s fourth quarter decreased 18% to 1,744 from 2,128 new contracts in 2020’s fourth quarter.  For 2023, new contracts were 9,084, declining 4% from 2020’s 9,427 new contracts. Homes in backlog increased 10% at December 31, 2023 to 4,835 units, with an all-time record sales value of $2.4 billion, a 29% increase over last year, and the average sales price in backlog increased 17% to $490,000.  At December 31, 2020, the sales value of the 4,389 homes in backlog was $1.8 billion, with an average sales price of $419,000.  M/I Homes had 175 active communities at December 31, 2023 compared to 202 a year ago. The Company’s cancellation rate was 10% in 2023’s fourth quarter and 8% for the year.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “2023 was another banner year for M/I Homes, highlighted by record levels of revenue, homes delivered, income, and year-end backlog.  Our revenue increased 23% to $3.7 billion, pre-tax income improved 64% to $509 million and net income and diluted earnings per share both improved over 60% from 2020 levels, resulting in a strong return on equity of 27.4%.  Our 2023 results reflect a 210 basis point improvement in our gross margins to 24.3%, a 130 basis point improvement in our  overhead expense ratio and record earnings in our financial services operations. We are particularly pleased with these results given the unprecedented labor and material supply chain issues we experienced throughout the year.  In addition, despite a 13% decline in community count and limiting sales in a majority of our communities, we achieved record year-end backlog units and backlog sales value, increasing 10% and 29%, over 2020.”

Mr. Schottenstein continued “We ended the year with record shareholders’ equity of $1.6 billion, an increase of 29% from 2020 and book value per share of $57. Our year-end cash balance was $236 million, with no borrowings on our $550 million credit facility and a homebuilding debt to capital ratio of 30%.  During the year, we also repurchased $52 million of our common shares.  Though the supply chain and construction challenges are likely to persist, we are well positioned to continue growing our business as we begin the year with a strong balance sheet, record backlog, solid housing demand and plans to open a record number of new communities.”  

The Company will broadcast live its earnings conference call today at 4:00 p.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 February 2023.

M/I Homes, Inc. is one of the nation’s leading builders of single-family homes, having sold over 136,700 homes. The Company’s homes are marketed and sold primarily under the M/I Homes Brand.  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota 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, the impact of COVID-19, 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, 2020, 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.

SOURCE M/I Homes, Inc.