M/I Homes Reports 2024 Third Quarter Results
COLUMBUS, Ohio, Oct. 30, 2024 /PRNewswire/ -- M/I Homes, Inc. (NYSE: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
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