COLUMBUS, Ohio, April 26, 2017 /PRNewswire/ -- M/I Homes,
Inc. (NYSE: MHO) announced results for the three months ended
March 31, 2017.
2017 First Quarter Highlights:
- Pre-tax income of $26.3 million
compared to $14.7 million in
2016
- Pre-tax income increased 56%, excluding $2.2 million of pre-tax charges for
stucco-related repairs in 2016
- Net income of $16.9 million
($0.55 per diluted share)
- Record revenue of $407 million, a
25% increase from 2016
- Record homes delivered of 1,038, an 18% increase from 2016
- New contracts of 1,454, an 11% increase from 2016 and an
all-time quarterly record
- Average home closing price increased 6% to $373,000
- Backlog sales value increased 14% to $834 million; backlog units increased 13% to
2,220
For the first quarter of 2017, the Company reported net income
of $16.9 million, or $0.55 per diluted share. This compares to
net income of $9.2 million, or
$0.30 per diluted share, for the
first quarter of 2016. The first quarter of 2016 included a
$1.3 million after-tax charge for
stucco-related repairs in certain of our Florida communities.
New contracts for the first quarter reached an all-time
quarterly record of 1,454, increasing 11% from the 1,314 contracts
recorded in 2016's first quarter. Homes delivered in 2017's
first quarter increased 18% to a first quarter record of
1,038. This compares to 876 homes delivered in 2016's first
quarter. Homes in backlog at March 31,
2017 had a total sales value of $834
million, a 14% increase over a year ago, with backlog units
of 2,220 and an average sales price of $376,000. At March
31, 2016, backlog sales value was $730 million, with backlog units of 1,969 and an
average sales price of $371,000. M/I Homes had 184 active
communities at March 31, 2017
compared to 181 at March 31,
2016. The Company's cancellation rate was 14% in the first
quarter of 2017 compared to 11% in 2016's first quarter.
Robert H. Schottenstein, Chief
Executive Officer and President, commented, "We had a very strong
first quarter highlighted by a 56% increase in pre-tax income, a
170 basis point increase in our operating margin, and a number of
record-setting achievements. We had record first quarter
revenue of $407 million, record first
quarter homes delivered of 1,038, and record new contracts of
1,454. Homes delivered were 18% higher than 2016's first
quarter and new contracts improved by 11%. In addition, first
quarter backlog reached a 10-year high with a sales value of
$834 million - 14% better than a year
ago. We were very pleased with our gross margin improvement, and
our operating margin rose to 7.8%. We also opened a record 24
new communities during the quarter, increasing our community count
to 184."
Mr. Schottenstein continued, "We are off to a very good start in
2017. We have a healthy backlog and housing market conditions
remain favorable throughout most of our markets. Our
financial condition is strong with shareholders' equity of
$672 million and homebuilding debt to
capital of 45%. 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 April 2018.
M/I Homes, Inc. is one of the nation's leading builders of
single-family homes, having sold over 101,500 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 operates under the name Hans Hagen Homes in its Minneapolis/St. Paul, Minnesota market.
The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; 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," "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 defect, 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, 2016, 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,
|
|
2017
|
|
2016
|
New
contracts
|
1,454
|
|
|
1,314
|
|
Average community
count
|
181
|
|
|
178
|
|
Cancellation
rate
|
14
|
%
|
|
11
|
%
|
Backlog
units
|
2,220
|
|
|
1,969
|
|
Backlog
value
|
$
|
834,415
|
|
|
$
|
729,950
|
|
Homes
delivered
|
1,038
|
|
|
876
|
|
Average home closing
price
|
$
|
373
|
|
|
$
|
353
|
|
|
|
|
|
Homebuilding
revenue:
|
|
|
|
Housing
revenue
|
$
|
387,458
|
|
|
$
|
309,247
|
|
Land
revenue
|
5,215
|
|
|
5,070
|
|
Total homebuilding
revenue
|
$
|
392,673
|
|
|
$
|
314,317
|
|
|
|
|
|
Financial services
revenue
|
14,307
|
|
|
10,053
|
|
Total
revenue
|
$
|
406,980
|
|
|
$
|
324,370
|
|
|
|
|
|
Cost of sales -
operations
|
320,281
|
|
|
258,017
|
|
Cost of sales -
stucco-related charges
|
—
|
|
|
2,155
|
|
Gross
margin
|
$
|
86,699
|
|
|
$
|
64,198
|
|
General and
administrative expense
|
27,760
|
|
|
22,259
|
|
Selling
expense
|
27,283
|
|
|
22,266
|
|
Operating
income
|
$
|
31,656
|
|
|
$
|
19,673
|
|
Equity in income from
joint venture arrangements
|
(17)
|
|
|
(307)
|
|
Interest
expense
|
5,338
|
|
|
5,265
|
|
Income before income
taxes
|
$
|
26,335
|
|
|
$
|
14,715
|
|
Provision for income
taxes
|
9,452
|
|
|
5,526
|
|
Net income
|
$
|
16,883
|
|
|
$
|
9,189
|
|
Preferred
dividends
|
1,219
|
|
|
1,219
|
|
Net income to common
shareholders
|
$
|
15,664
|
|
|
$
|
7,970
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
|
0.63
|
|
|
$
|
0.32
|
|
Diluted
|
$
|
0.55
|
|
|
$
|
0.30
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
Basic
|
24,738
|
|
|
24,657
|
|
Diluted
|
30,329
|
|
|
30,032
|
|
M/I Homes, Inc.
and Subsidiaries
|
Summary Balance
Sheet and Other Information (unaudited)
|
(Dollars in
thousands, except per share amounts)
|
|
|
As
of
|
|
March
31,
|
|
2017
|
|
2016
|
Assets:
|
|
|
|
Total cash, and cash
equivalents and restricted cash
|
$
|
38,898
|
|
|
$
|
34,321
|
|
Mortgage loans held
for sale
|
113,596
|
|
|
94,438
|
|
Inventory:
|
|
|
|
Lots, land and land
development
|
616,239
|
|
|
596,072
|
|
Land held for
sale
|
10,475
|
|
|
13,801
|
|
Homes under
construction
|
538,758
|
|
|
439,328
|
|
Other
inventory
|
121,146
|
|
|
104,336
|
|
Total
Inventory
|
$
|
1,286,618
|
|
|
$
|
1,153,537
|
|
|
|
|
|
Property and
equipment - net
|
22,338
|
|
|
22,740
|
|
Investments in joint
venture arrangements
|
24,218
|
|
|
25,693
|
|
Deferred income
taxes, net of valuation allowance
|
30,449
|
|
|
55,860
|
|
Other
assets
|
56,148
|
|
|
50,123
|
|
Total
Assets
|
$
|
1,572,265
|
|
|
$
|
1,436,712
|
|
|
|
|
|
Liabilities:
|
|
|
|
Debt - Homebuilding
Operations:
|
|
|
|
Senior notes due 2021
- net
|
$
|
295,953
|
|
|
$
|
294,904
|
|
Convertible senior
subordinated notes due 2017 - net
|
57,237
|
|
|
56,662
|
|
Convertible senior
subordinated notes due 2018 - net
|
85,600
|
|
|
84,891
|
|
Notes payable bank -
homebuilding
|
110,900
|
|
|
114,500
|
|
Notes payable -
other
|
7,022
|
|
|
8,805
|
|
Total Debt -
Homebuilding Operations
|
$
|
556,712
|
|
|
$
|
559,762
|
|
|
|
|
|
Notes payable bank -
financial services operations
|
106,937
|
|
|
87,186
|
|
Total Debt
|
$
|
663,649
|
|
|
$
|
646,948
|
|
|
|
|
|
Accounts
payable
|
94,403
|
|
|
81,594
|
|
Other
liabilities
|
142,501
|
|
|
103,565
|
|
Total
Liabilities
|
$
|
900,553
|
|
|
$
|
832,107
|
|
|
|
|
|
Shareholders'
Equity
|
671,712
|
|
|
604,605
|
|
Total Liabilities and
Shareholders' Equity
|
$
|
1,572,265
|
|
|
$
|
1,436,712
|
|
|
|
|
|
Book value per common
share
|
$
|
25.07
|
|
|
$
|
22.48
|
|
Homebuilding debt /
capital ratio(1)
|
45
|
%
|
|
48
|
%
|
|
|
(1)
|
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
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
Adjusted
EBITDA(1)
|
$
|
39,324
|
|
|
$
|
27,233
|
|
|
|
|
|
|
|
Cash flow (used in)
provided by operating activities
|
$
|
(23,275)
|
|
|
$
|
1,415
|
|
(2)
|
Cash provided by
(used in) investing activities
|
$
|
3,206
|
|
|
$
|
(13,552)
|
|
(2)
|
Cash provided by
financing activities
|
$
|
24,526
|
|
|
$
|
33,357
|
|
|
|
|
|
|
|
Land/lot
purchases
|
$
|
81,833
|
|
|
$
|
51,973
|
|
|
Land development
spending
|
$
|
39,572
|
|
|
$
|
32,194
|
|
|
Land sale
revenue
|
$
|
5,215
|
|
|
$
|
5,070
|
|
|
Land sale gross
profit
|
$
|
376
|
|
|
$
|
729
|
|
|
|
|
|
|
|
Financial services
pre-tax income
|
$
|
8,562
|
|
|
$
|
5,891
|
|
|
|
(1)
|
See "Non-GAAP
Financial Results" table below.
|
(2)
|
During 2016, we
elected to early-adopt Accounting Standards Update 2016-18,
Statement of Cash Flows: Restricted Cash. Certain amounts
above have been adjusted to apply the new method
retrospectively.
|
M/I Homes, Inc.
and Subsidiaries
|
Non-GAAP Financial
Results (3)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Net income
|
$
|
16,883
|
|
|
$
|
9,189
|
|
Add:
|
|
|
|
Provision for income
taxes
|
9,452
|
|
|
5,526
|
|
Interest expense net
of interest income
|
4,612
|
|
|
4,835
|
|
Interest amortized to
cost of sales
|
3,766
|
|
|
3,544
|
|
Depreciation and
amortization
|
3,583
|
|
|
3,223
|
|
Non-cash
charges
|
1,028
|
|
|
916
|
|
Adjusted
EBITDA
|
$
|
39,324
|
|
|
$
|
27,233
|
|
M/I Homes, Inc.
and Subsidiaries
|
Non-GAAP
Reconciliation (3)
|
(Dollars and
shares in thousands, except per share amounts)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Total
revenue
|
$
|
406,980
|
|
|
$
|
324,370
|
|
|
|
|
|
Gross
margin
|
$
|
86,699
|
|
|
$
|
64,198
|
|
Add: Stucco-related
charges
|
—
|
|
|
2,155
|
|
Adjusted gross
margin
|
$
|
86,699
|
|
|
$
|
66,353
|
|
|
|
|
|
Gross margin
percentage
|
21.3
|
%
|
|
19.8
|
%
|
Adjusted gross margin
percentage
|
21.3
|
%
|
|
20.5
|
%
|
|
|
|
|
Income before income
taxes
|
$
|
26,335
|
|
|
$
|
14,715
|
|
Add: Stucco-related
charges
|
—
|
|
|
2,155
|
|
Adjusted net income
before income taxes
|
$
|
26,335
|
|
|
$
|
16,870
|
|
|
|
|
|
Net income
|
$
|
16,883
|
|
|
$
|
9,189
|
|
Add: Stucco-related
charges - net of tax
|
—
|
|
|
1,336
|
|
Adjusted net
income
|
$
|
16,883
|
|
|
$
|
10,525
|
|
|
|
|
|
Stucco-related
charges - net of tax
|
$
|
—
|
|
|
$
|
1,336
|
|
Divided by: Diluted
weighted average shares outstanding
|
30,329
|
|
|
30,032
|
|
Diluted earnings per
share related to stucco-related charges
|
$
|
—
|
|
|
$
|
0.04
|
|
Add: Diluted earnings
per share
|
0.55
|
|
|
0.30
|
|
Adjusted diluted
earnings per share
|
$
|
0.55
|
|
|
$
|
0.34
|
|
|
(3)
|
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
|
2017
|
|
2016
|
|
Change
|
Midwest
|
556
|
|
|
495
|
|
|
12
|
%
|
Southern
|
590
|
|
|
492
|
|
|
20
|
%
|
Mid-Atlantic
|
308
|
|
|
327
|
|
|
(6)
|
%
|
Total
|
1,454
|
|
|
1,314
|
|
|
11
|
%
|
|
|
|
|
HOMES
DELIVERED
|
|
Three Months
Ended
|
|
March
31,
|
|
|
|
|
|
%
|
Region
|
2017
|
|
2016
|
|
Change
|
Midwest
|
379
|
|
|
322
|
|
|
18
|
%
|
Southern
|
419
|
|
|
350
|
|
|
20
|
%
|
Mid-Atlantic
|
240
|
|
|
204
|
|
|
18
|
%
|
Total
|
1,038
|
|
|
876
|
|
|
18
|
%
|
BACKLOG
|
|
March 31,
2017
|
|
March 31,
2016
|
|
|
|
Dollars
|
|
Average
|
|
|
|
Dollars
|
|
Average
|
Region
|
Units
|
|
(millions)
|
|
Sales
Price
|
|
Units
|
|
(millions)
|
|
Sales
Price
|
Midwest
|
934
|
|
|
$
|
373
|
|
|
$
|
400,000
|
|
|
845
|
|
|
$
|
330
|
|
|
$
|
391,000
|
|
Southern
|
845
|
|
|
$
|
295
|
|
|
$
|
349,000
|
|
|
702
|
|
|
$
|
247
|
|
|
$
|
352,000
|
|
Mid-Atlantic
|
441
|
|
|
$
|
166
|
|
|
$
|
377,000
|
|
|
422
|
|
|
$
|
153
|
|
|
$
|
361,000
|
|
Total
|
2,220
|
|
|
$
|
834
|
|
|
$
|
376,000
|
|
|
1,969
|
|
|
$
|
730
|
|
|
$
|
371,000
|
|
LAND POSITION
SUMMARY
|
|
March 31,
2017
|
|
|
March 31,
2016
|
|
Lots
|
Lots
Under
|
|
|
|
Lots
|
Lots
Under
|
|
Region
|
Owned
|
Contract
|
Total
|
|
|
Owned
|
Contract
|
Total
|
Midwest
|
3,591
|
|
5,779
|
|
9,370
|
|
|
|
3,488
|
|
5,003
|
|
8,491
|
|
Southern
|
4,859
|
|
6,211
|
|
11,070
|
|
|
|
4,630
|
|
5,132
|
|
9,762
|
|
Mid-Atlantic
|
1,952
|
|
2,028
|
|
3,980
|
|
|
|
2,750
|
|
1,259
|
|
4,009
|
|
Total
|
10,402
|
|
14,018
|
|
24,420
|
|
|
|
10,868
|
|
11,394
|
|
22,262
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mi-homes-reports-2017-first-quarter-results-300446083.html
SOURCE M/I Homes, Inc.