M/I Homes (MHO) Reports Homes Delivered and New Contracts; Company Withdraws FY Guidance
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Price: $152.37 +1.61%
Financial Fact:
General and administrative: 29.16M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
General and administrative: 29.16M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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M/I Homes, Inc. (NYSE: MHO) announced homes delivered and new contracts for the three- and six-month periods ended June 30, 2007 and backlog as of the end of the period. The Company also provided an estimate of second quarter charges for asset impairment and other write-offs.
Homes delivered for the 2007 second quarter decreased 24% to 755 from 2006's 987. For the six-month period ended June 30, 2007, homes delivered were 1,459, down 20% from 1,819 in the same period of 2006.
New contracts for 2007's second quarter were 688, down 10% from 2006's second quarter of 764. For the first six- months, 2007's new contracts declined 14% to 1,630 from 1,901 in 2006.
The Company currently estimates that it will record pre-tax asset impairment and write-offs of between $60 and $70 million in the second quarter. In addition, the Company will incur approximately $5 million of charges for the write-off of intangible assets related to the Company's 2005 acquisition of a Florida builder.
Robert H. Schottenstein, Chief Executive Officer and President, commented, " Today's announcement is further evidence of the challenging and uncertain conditions facing the homebuilding industry. Though we were slightly encouraged by our first quarter results -- in particular new contracts and a reduced cancellation rate -- conditions deteriorated in the second quarter as a result of the widely reported and well documented concerns over credit tightening and difficulties in the sub-prime market, excess inventory of new and used homes, and weakening demand. All of these factors have led to further price competition and margin compression in most of our markets. While we continue to estimate that we will deliver approximately 3,000 homes this year, current market conditions make it difficult for us to predict either our new contracts or margins; accordingly, we are withdrawing our annual earnings guidance for 2007."
Homes delivered for the 2007 second quarter decreased 24% to 755 from 2006's 987. For the six-month period ended June 30, 2007, homes delivered were 1,459, down 20% from 1,819 in the same period of 2006.
New contracts for 2007's second quarter were 688, down 10% from 2006's second quarter of 764. For the first six- months, 2007's new contracts declined 14% to 1,630 from 1,901 in 2006.
The Company currently estimates that it will record pre-tax asset impairment and write-offs of between $60 and $70 million in the second quarter. In addition, the Company will incur approximately $5 million of charges for the write-off of intangible assets related to the Company's 2005 acquisition of a Florida builder.
Robert H. Schottenstein, Chief Executive Officer and President, commented, " Today's announcement is further evidence of the challenging and uncertain conditions facing the homebuilding industry. Though we were slightly encouraged by our first quarter results -- in particular new contracts and a reduced cancellation rate -- conditions deteriorated in the second quarter as a result of the widely reported and well documented concerns over credit tightening and difficulties in the sub-prime market, excess inventory of new and used homes, and weakening demand. All of these factors have led to further price competition and margin compression in most of our markets. While we continue to estimate that we will deliver approximately 3,000 homes this year, current market conditions make it difficult for us to predict either our new contracts or margins; accordingly, we are withdrawing our annual earnings guidance for 2007."
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