COLUMBUS, Ohio, July 25, 2018 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and six months ended June 30, 2018.

2018 Second Quarter Highlights:

• New contracts increased 17% to a second quarter record 1,631
• Backlog sales value increased 29% to an all-time quarterly record of $1.2 billion, and backlog units increased 23% to 2,966
• Revenue increased 22% to a second quarter record of $558 million
• Homes delivered increased 16% to a second quarter record 1,409
• Net income to common shareholders increased to $27.9 million ($0.96 per diluted share) from $15.8 million ($0.55 per diluted share) in 2017
• Diluted earnings per share increased 42% to $1.04, excluding the impact of $3.0 million of purchase accounting adjustments. In 2017's second quarter, diluted earnings per share were $0.73, excluding the impact of $8.5 million of stucco-related charges
• Shareholders' equity reached an all-time record of $816 million, an 18% increase from a year-ago, with book value per share of $28.56

For the second quarter of 2018, the Company reported net income to common shareholders of $27.9 million, or $0.96 per diluted share. This compares to net income to common shareholders of $15.8 million, or $0.55 per diluted share, for the second quarter of 2017. The second quarter of 2018 includes a $3.0 million pre-tax purchase accounting charge ($0.08 per diluted share) related to our acquisition of Pinnacle Homes in Michigan in the first quarter of 2018. The second quarter of 2017 included an $8.5 million pre-tax charge ($0.18 per diluted share) for stucco-related repair costs in certain of our Florida communities. For the six months ended June 30, 2018, the Company reported net income to common shareholders of $46.0 million, or $1.56 per diluted share, compared to $31.4 million, or $1.09 per diluted share, for the same period of 2017. Year-to-date in 2018, the Company incurred $5.6 million of pre-tax acquisition-related charges ($0.14 per diluted share) and, in the same period of 2017, incurred $8.5 million ($0.18 per diluted share), for pre-tax stucco-related repair costs. Exclusive of these charges in both periods, year-to-date net income to common shareholders was $50.1 million in 2018 compared to $36.9 million in 2017's same period, a 36% increase.

Homes delivered in 2018's second quarter reached a second quarter record of 1,409, increasing 16% from the 1,211 deliveries in 2017's second quarter. Homes delivered for the six months ended June 30, 2018 increased 13% to 2,531 from 2017's deliveries of 2,249. New contracts for 2018's second quarter were a record 1,631, an increase of 17% over 2017's second quarter. For the first six months of 2018, new contracts increased 18% to 3,370 from 2,854 in 2017. Homes in backlog increased 23% at June 30, 2018 to 2,966 units, with a sales value of $1.2 billion (a 29% increase over last year's second quarter), and an average sales price of $396,000. At June 30, 2017, the sales value of homes in backlog was $909 million, with an average sales price of $377,000 and backlog units of 2,409. M/I Homes had 209 active communities at June 30, 2018 compared to 187 at June 30, 2017. The Company's cancellation rate was 14% in the second quarter of 2018 and 13% in 2017.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We reported another strong quarter highlighted by all-time second quarter records for new contracts, homes delivered, and revenue. We also achieved an all-time quarterly record of backlog sales value, reaching $1.2 billion - a 29% increase over 2017's second quarter. Our second quarter new contracts of 1,631 increased 17% over last year, and despite margin pressures, our pre-tax income for the second quarter increased to $33.5 million. The increase in pre-tax income, combined with a significantly lower tax rate and improved operating expense leverage, resulted in a dramatic increase in net income to common shareholders from $15.8 million in last year's second quarter to $27.9 million."

Mr. Schottenstein continued, "We ended the quarter with record-high shareholders' equity of $816 million, an increase of 18% from 2017's second quarter, book value per share of $28.56, and a homebuilding debt to capital ratio of 47%. With the strength of our backlog and planned new community openings, we are positioned to have a very good 2018. We will continue to focus 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 July 2019.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold over 109,000 homes. The Company's homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and also currently are sold under the name Hans Hagen Homes in the Minneapolis/St. Paul, Minnesota market and Pinnacle Homes in the Detroit, Michigan market. 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 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," "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, integration of acquisitions, 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, 2017, 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.