M/I Homes Reports First Quarter Results

COLUMBUS, Ohio, April 23, 2015 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the first quarter ended March 31, 2015.

2015 First Quarter Highlights:

• Pre-tax income of $15.7 million - a 26% increase over 2014's first quarter
• Revenue increased 12%  to $263 million; average closing price increased 9%
• Gross margin of 21.7%, up 170 basis points from 2014's fourth quarter
• Net income of $9.6 million ($0.31 per diluted share)
• New contracts increased 13%; homes delivered declined 3%
• Backlog sales value increased 16%
• Net debt to net capital ratio of 48%

For the first quarter of 2015, the Company reported net income of $9.6 million, or $0.31 per diluted share.  This compares to $7.3 million or $0.23 per diluted share during the first quarter of 2014, excluding a $5.3 million benefit in 2014 for the reversal of a portion of our state deferred tax asset valuation allowance.

New contracts for the first quarter were 1,108, a 13% increase from the 982 recorded in 2014's first quarter.  Homes delivered in the first quarter were 717, a decrease of 3% from the 737 reported for the same period of 2014.  The backlog of homes at March 31, 2015 had a total sales value of $577 million, a 16% increase over a year-ago, with backlog units of 1,613 and an average sales price of $358,000.  At March 31, 2014 backlog sales value was $496 million, with backlog units of 1,525 and an average sales price of $326,000.  M/I Homes had 153 active communities at March 31, 2015 compared to 158 at March 31, 2014 and 150 at December 31, 2014.  The Company's cancellation rate was 13% in the first quarter of 2015 compared to 16% in 2014's first quarter.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased with our first quarter results highlighted by a 26% increase in pre-tax income, a 16% increase in backlog sales value and a 13% increase in new contracts. A number of factors contributed to our improved profitability including a 12% increase in revenue, gross margin of 21.7% (170 basis points better than 2014's fourth quarter), and a 50 basis point improvement in our overhead expense ratio compared to last year's first quarter. From a sales standpoint, we were particularly pleased to increase our new contracts by 13% given that our community count was slightly lower than a year ago. We are on track to open approximately 70 new communities this year and to increase our year end community count by 15%."

Mr. Schottenstein continued, "Our financial condition is strong, with shareholders' equity of $554 million and net debt to net capital of 48%.  Looking ahead, with the strength of our backlog and planned new community openings, we are poised to have a very solid 2015.  We remain focused on increasing profitability, growing our market share, and investing in attractive land opportunities."

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 April 2016.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 91,100 homes. The Company's homes are marketed and sold under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes).  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Tampa and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

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," "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 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, 2014, 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.

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SOURCE M/I Homes, Inc.