M/I Homes (NYSE: MHO) reported Q4 EPS of $2.95, $0.53 better than the analyst estimate of $2.42. Revenue for the quarter came in at $906.43 million versus the consensus estimate of $961.99 million.

2020 Fourth Quarter Results:

• New contracts increased 27% to a fourth quarter record of 2,128
• Homes delivered increased 17% to 2,242, an all-time quarterly record
• Backlog units increased 64% to 4,389, a fourth quarter record
• Backlog sales value reached $1.8 billion, an all-time quarterly record
• Revenue increased 22% to an all-time quarterly record of $906 million
• Pre-tax income increased 99% to $101.9 million, an all-time quarterly record
• Net income increased 92% to $80.1 million ($2.71 per diluted share) compared to $41.8 million ($1.44 per diluted share) in 2019

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are extremely pleased with our fourth quarter results, capping off a tremendous year for M/I Homes with strong growth and record- setting financial achievements across the board. We nearly doubled our net income from 2019 resulting in a very strong return on equity of 22%. We also achieved a record level of new contracts, homes delivered and backlog sales value. Our 2020 results include an 87% increase in pre-tax income and an 84% improvement in diluted earnings per share, along with a 74% increase in our backlog sales value to a record $1.84 billion and record earnings in our financial services operations. Our gross margins were very strong, reaching 23.0% in the fourth quarter and 22.2% for the year – a 260 basis point improvement over 2019, and our pre-tax income percentage for the year improved 360 basis points to 10.2%. A number of factors drove these strong results, including low mortgage rates, increased home demand from younger buyers and the current undersupply of homes available. In addition, we also benefited from strong community locations, well-designed product and superb execution across our markets."

"We ended the year with record-high shareholders' equity of $1.3 billion, an increase of 25% from 2019 and book value per share of $44," Mr. Schottenstein continued. "Our year-end cash balance was $261 million, with no borrowings on our $500 million credit facility and a homebuilding debt to capital ratio of 34%. Housing conditions are very good and, given the strength of our record backlog and strong competitive position across our markets, we are well positioned for another strong year in 2021."

For earnings history and earnings-related data on M/I Homes (MHO) click here.