COLUMBUS, Ohio, Oct. 26, 2022 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and nine months ended September 30, 2022.

2022 Third Quarter Highlights:

• Revenue increased 12% to $1.0 billion, a third quarter record
• Pre-tax income increased 43% to $167 million, a third quarter record
• Net income increased 45% to a third quarter record $132 million ($4.67 per diluted share) from 2021's $91 million ($3.03 per diluted share)
• Homes delivered decreased 1% to 2,026 and average sales price increased 13% to $487,000
• New contracts of 1,349, down 31% with average community count down 2% and a cancellation rate of 17%
• Backlog units decreased 16% to 4,536
• Backlog sales value decreased 5% to $2.4 billion, with average sales price in backlog at an all-time record $533,000
• Shareholders' equity reached an all-time record of $1.9 billion, a 25% increase from a year ago, with book value per share of $71
• Homebuilding debt to capital ratio of 26% compared to 31% at September 30, 2021
• Return on equity of 27%

For the third quarter of 2022, pre-tax income increased 43% to a record $166.6 million and third quarter net income increased 45% to a record $131.6 million, or $4.67 per diluted share. This compares to pre-tax income of $116.2 million and net income of $91.0 million, or $3.03 per diluted share, for the third quarter of 2021. The third quarter of 2021 includes a $9.1 million pre-tax loss on early extinguishment of debt, or $0.24 per diluted share. For the nine months ended September 30, 2022, net income increased 27% to $360.3 million, or $12.59 per diluted share, compared to $283.5 million, or $9.46 per diluted share, for the same period of 2021.

Homes delivered in 2022's third quarter decreased 1% to 2,026, compared to 2,045 homes delivered in 2021's third quarter. Homes delivered for the nine months ended September 30, 2022 decreased 5% to 5,982 from 6,322 deliveries in the first nine months of 2021. New contracts for the third quarter of 2022 were 1,349, a 31% decrease from 1,964 new contracts in 2021. For the first nine months of 2022, new contracts decreased 23% to 5,683 compared to 7,340 in the first nine months of 2021. Homes in backlog at September 30, 2022 had a total sales value of $2.4 billion, a 5% decrease from a year ago. Backlog units at September 30, 2022 decreased 16% to 4,536 homes, with an all-time record average sales price of $533,000. At September 30, 2021, backlog sales value was $2.5 billion, with backlog units of 5,407 and an average sales price of $471,000. M/I Homes had 178 communities at September 30, 2022 compared to 176 communities at September 30, 2021.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased to announce record financial results for the third quarter of 2022, highlighted by record revenue, income, and earnings per share. Our margins during the quarter were very strong with gross margins of 26.8% (up 230 basis points from a year ago) and operating margins at 16.5% (up 270 basis points from a year ago). Our overhead leverage improved 40 basis points to 10.3%. Our homes delivered declined 1% from a year ago due to delayed closings in our Florida markets caused by Hurricane Ian."

Mr. Schottenstein continued, "New contracts for the quarter declined 31%, reflecting the significant decline in homebuyer demand that began earlier this year due to the well documented impact of higher mortgage interest rates. Notwithstanding this decline, our financial condition is very strong. We ended the quarter with record shareholders' equity of $1.9 billion, an increase of 25% over last year, book value of $71 per share, cash of $68 million, zero borrowings on our $550 million credit facility, and a homebuilding debt to capital of 26%."

Mr. Schottenstein concluded, "There is much uncertainty concerning the general economy, and it is unclear when demand for new homes will improve. However, we believe, over the long term, that housing markets will benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing. We are well positioned to manage through these changing and uncertain times given the strength of our balance sheet, low debt levels, diverse product offerings and well-located communities."

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 October 2023.

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 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, 2021, 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.