M/I Homes (NYSE: MHO) reported Q1 EPS of $1.09, $0.27 better than the analyst estimate of $0.82. Revenue for the quarter came in at $577.6 million versus the consensus estimate of $545.75 million.

2020 First Quarter Highlights:

• Homes delivered increased 26% to a first quarter record of 1,495 homes
• Revenue increased 20% to a first quarter record of $577.6 million
• Pre-tax income increased 76% to $41.4 million, a first quarter record
• Record first quarter net income of $31.7 million ($1.09 per diluted share), a 79% increase compared to $17.7 million ($0.63 per diluted share) in 2019
• New contracts increased 27% to 2,089 contracts, an all-time quarterly record
• Backlog units increased 23% to 3,265, a first quarter record
• Backlog sales value reached $1.3 billion, an all-time quarterly record
• Homebuilding debt to capital of 39% compared to 47% at March 31, 2019
• Shareholders' equity reached an all-time record of $1.04 billion, a 19% increase from a year ago, with book value per share of $36

Homes delivered in 202\'s first quarter increased 26% to a first quarter record of 1,495. This compares to 1,186 homes delivered in 2019\'s first quarter. New contracts for the first quarter of 2020 were an all-time quarterly record 2,089, a 27% increase over 2019's 1,644 new contracts. Homes in backlog at March 31, 2020 had a total sales value of $1.3 billion, a 22% increase from a year ago and an all-time quarterly record. Backlog units at March 31, 2020 increased 23% to a first quarter record 3,265 homes, with an average sales price of $399,000. At March 31, 2019, backlog sales value was $1.07 billion, with backlog units of 2,652 and an average sales price of $403,000. M/I Homes had 223 active communities at March 31, 2020, an increase of 4% over our 214 communities at March 31, 2019. The Company\'s cancellation rate was 11% in the first quarter of 2020 compared to 12% in the first quarter of 2019.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased to announce record setting first quarter results - highlighted by record first quarter net income of $31.7 million, a 79% increase over 2019's first quarter, along with all-time quarterly records in both new contracts and backlog sales value. Revenues, pre-tax income, homes delivered, and backlog units each improved by over 20% when compared to 2019\'s first quarter and were also first quarter records for our Company. Gross margin improved to 20.2%, 90 basis points better than 2019\'s first quarter and our overhead expense ratio improved 70 basis points to 12.2%. Our diluted earnings per share improved 73% from 2019's first quarter, and we ended the quarter with shareholders\' equity of $1.04 billion and a homebuilding debt to capital ratio of 39%."

Mr. Schottenstein continued, "The world is in the midst of an unprecedented battle with the COVID-19 pandemic; our primary concern continues to be the health and well-being of our employees, our trade partners, our customers, the communities in which we do business and all of those impacted by this highly contagious virus. In most of the markets in which we operate, housing construction and mortgage services have been deemed essential businesses and we\'re doing everything we can to safely continue selling, building and delivering our homes. We have adapted our operations and business to safeguard our various work environments, while closely monitoring updates and guidelines from the CDC and other state and local government and public health agencies.\"

Mr. Schottenstein concluded, "The pandemic first began impacting our results in the second half of March. New contracts in the last of half of March were 50% below prior year levels. New contracts during the first three weeks of April have improved and are 35% below the comparable period in 2019. We are reviewing all aspects of our operations and adjusting our business as needed. We entered 2020 in the best financial condition in company history. With our experienced leadership team, record quarter-end backlog, and nearly $450 million of available liquidity, we are confident that we will navigate through this very challenging environment."

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