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

COLUMBUS, Ohio, Jan. 31, 2024 /PRNewswire/ -- 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.

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SOURCE M/I Homes, Inc.