M/I Homes Reports 2021 First Quarter Results

COLUMBUS, Ohio, April 28, 2021 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2021.

M/I Homes, Inc. Logo (PRNewsfoto/M/I Homes, Inc.)

2021 First Quarter Highlights:

  • New contracts increased 49% to 3,109 contracts, an all-time quarterly record
  • Backlog units increased 68% to 5,479, an all-time quarterly record
  • Backlog sales value reached $2.4 billion, an all-time quarterly record
  • Homes delivered increased 35% to 2,019, a first quarter record
  • Revenue increased 43% to $828.8 million, a first quarter record
  • Pre-tax income increased 167% to $110.3 million, an all-time quarterly record
  • First quarter net income of $84.9 million ($2.85 per diluted share), a 167% increase compared to $31.7 million ($1.09 per diluted share) in 2020
  • Shareholders' equity reached an all-time record of $1.4 billion, a 30% increase from a year ago, with book value per share of $46
  • Homebuilding debt to capital of 32% compared to 39% at March 31, 2021

For the first quarter of 2021, the Company reported pre-tax income of $110.3 million and net income of $84.9 million, or $2.85 per diluted share.  This compares to pre-tax income of $41.4 million and net income of $31.7 million, or $1.09 per diluted share, for the first quarter of 2020.

Homes delivered in 2021's first quarter increased 35% to a first quarter record of 2,019.  This compares to 1,495 homes delivered in 2020's first quarter.  New contracts for the first quarter of 2021 were an all-time quarterly record 3,109, a 49% increase over 2020's 2,089 new contracts.  Homes in backlog at March 31, 2021 had a total sales value of $2.4 billion, an 82% increase from a year ago and an all-time quarterly record. Backlog units at March 31, 2021 increased 68% to an all-time quarterly record 5,479 homes, with an average sales price of $433,000.  At March 31, 2020, backlog sales value was $1.3 billion, with backlog units of 3,265 and an average sales price of $399,000.  M/I Homes had 187 active communities at March 31, 2021 compared to 223 communities at March 31, 2020.  The Company's cancellation rate was 7% in the first quarter of 2021 compared to 11% in the first quarter of 2020.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had an outstanding record-setting first quarter, highlighted by a 49% increase in new contracts, a 35% increase in homes delivered and a 167% increase in pre-tax income.  All of our homebuilding operations had a very strong quarter and our financial service business produced record results.   Our gross margins improved by 420 basis points over last year, and our overhead expense ratio improved by 120 basis points.  As a result, our first quarter pre-tax income percentage improved to 13.3% from 7.2% last year, and we achieved a 25% return on equity." 

Mr. Schottenstein continued, "We ended the quarter with a record backlog of $2.4 billion, 82% better than last year, record shareholders' equity of $1.4 billion, an increase of 30% from 2020's first quarter, book value of $46 per share, cash of $293 million, no borrowings on our $500 million credit facility and a homebuilding debt to capital ratio of 32%.  We have tremendous momentum and are very well positioned to have another outstanding year."

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 April 2022.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold over 130,800 homes.  The Company's homes are marketed and sold primarily under the M/I Homes Brand.  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; and Charlotte and Raleigh, North Carolina.

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 our Annual Report on Form 10-K for the year ended December 31, 2020, 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.

 

 

M/I Homes, Inc. and Subsidiaries

Summary Statement of Income (unaudited)

(Dollars and shares in thousands, except per share amounts)

 




Three Months Ended


March 31,


2021


2020

New contracts

3,109



2,089


Average community count

195



224


Cancellation rate

7

%


11

%

Backlog units

5,479



3,265


Backlog sales value

$

2,373,828



$

1,301,326


Homes delivered

2,019



1,495


Average home closing price

$

395



$

374






Homebuilding revenue:




   Housing revenue

$

798,279



$

559,449


   Land revenue

848



4,687


Total homebuilding revenue

$

799,127



$

564,136






Financial services revenue

29,649



13,467


Total revenue

$

828,776



$

577,603






Cost of sales - operations

626,585



460,924


Gross margin

$

202,191



$

116,679


General and administrative expense

45,205



33,847


Selling expense

45,689



36,828


Operating income

$

111,297



$

46,004


Equity in income from joint venture arrangements

(160)



(52)


Interest expense

1,176



4,700


Income before income taxes

$

110,281



$

41,356


Provision for income taxes

25,415



9,610


Net income

$

84,866



$

31,746






Earnings per share:




Basic

$

2.92



$

1.11


Diluted

$

2.85



$

1.09






Weighted average shares outstanding:




Basic

29,015



28,478


Diluted

29,743



29,009


 

 

M/I Homes, Inc. and Subsidiaries

Summary Balance Sheet and Other Information (unaudited)

(Dollars in thousands, except per share amounts)

 




As of


March 31,


2021


2020

Assets:




Total cash, cash equivalents and restricted cash (1)

$

292,900



$

21,184


Mortgage loans held for sale

217,524



156,208


Inventory:




Lots, land and land development

831,837



837,686


Land held for sale

4,085



1,164


Homes under construction

985,227



829,230


Other inventory

139,385



154,451


Total Inventory

$

1,960,534



$

1,822,531






Property and equipment - net

24,939



21,046


Investments in joint venture arrangements

33,822



40,306


Operating lease right-of-use assets

51,755



20,075


Goodwill

16,400



16,400


Deferred income tax asset

6,183



9,540


Other assets

105,503



91,673


Total Assets

$

2,709,560



$

2,198,963






Liabilities:




Debt - Homebuilding Operations:




Senior notes due 2025 - net

$

247,743



$

247,222


Senior notes due 2028 - net

394,750



393,989


 Notes payable - homebuilding



6,900


 Notes payable - other

2,544



7,546


Total Debt - Homebuilding Operations

$

645,037



$

655,657






Notes payable bank - financial services operations

176,204



145,055


Total Debt

$

821,241



$

800,712






Accounts payable

198,216



150,256


Operating lease liabilities

52,029



20,075


Other liabilities

284,652



190,239


Total Liabilities

$

1,356,138



$

1,161,282






Shareholders' Equity

1,353,422



1,037,681


Total Liabilities and Shareholders' Equity

$

2,709,560



$

2,198,963






Book value per common share

$

46.37



$

36.38


Homebuilding debt to capital ratio (2)

32

%


39

%



(1)

Includes $0.5 million of restricted cash and cash held in escrow for both the quarters ended March 31, 2021 and 2020.

(2)

The ratio of homebuilding debt to capital is calculated as the carrying value of our homebuilding debt outstanding divided by the sum of the carrying value of our homebuilding debt outstanding plus shareholders' equity.


 

 

M/I Homes, Inc. and Subsidiaries

Selected Supplemental Financial and Operating Data (unaudited)

(Dollars in thousands)

 




Three Months Ended


March 31,


2021


2020

Cash provided by (used in) operating activities

$

75,168



$

(24,227)


Cash provided by (used in) investing activities

$

623



$

(6,546)


Cash (used in) provided by financing activities

$

(43,701)



$

45,874






Land/lot purchases

$

92,358



$

75,694


Land development spending

$

71,195



$

61,998


Land sale revenue

$

848



$

4,687


Land sale gross profit

$

250



$

69






Financial services pre-tax income

$

19,693



$

5,631


 

 

M/I Homes, Inc. and Subsidiaries

Non-GAAP Financial Results (1)

(Dollars in thousands)

 




Three Months Ended


March 31,


2021


2020

Net income

$

84,866



$

31,746


Add:




Provision for income taxes

25,415



9,610


Interest expense net of interest income

275



3,888


Interest amortized to cost of sales

8,205



6,570


Depreciation and amortization

4,110



4,224


Non-cash charges

2,102



2,923


Adjusted EBITDA

$

124,973



$

58,961




(1)

We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations.

 

 

M/I Homes, Inc. and Subsidiaries

Selected Supplemental Financial and Operating Data

 


NEW CONTRACTS


Three Months Ended


March 31,

Region

2021


2020


% Change

Northern

1,306



853



53

%

Southern

1,803



1,236



46

%

Total

3,109



2,089



49

%

 

HOMES DELIVERED


Three Months Ended


March 31,

Region

2021


2020


% Change

Northern

801



588



36

%

Southern

1,218



907



34

%

Total

2,019



1,495



35

%

 

BACKLOG


March 31, 2021



March 31, 2020




Dollars


Average





Dollars


Average

Region

Units


(millions)


Sales Price



Units


(millions)


Sales Price

Northern

2,320



$

1,049



$

452,000




1,408



$

596



$

423,000


Southern

3,159



$

1,325



$

419,000




1,857



$

705



$

380,000


Total

5,479



$

2,374



$

433,000




3,265



$

1,301



$

399,000


 

LAND POSITION SUMMARY


March 31, 2021



March 31, 2020


Lots

Lots Under




Lots

Lots Under


Region

Owned

Contract

Total



Owned

Contract

Total

Northern

6,242


8,489


14,731




6,852


6,833


13,685


Southern

10,522


16,730


27,252




7,926


12,209


20,135


Total

16,764


25,219


41,983




14,778


19,042


33,820


 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/mi-homes-reports-2021-first-quarter-results-301278371.html

SOURCE M/I Homes, Inc.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.