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M/I Homes Reports Fourth Quarter and Year-End Results

1. M/I Homes reported record fourth quarter results with 19% increase in homes delivered. 2. Net income for Q4 increased 27% compared to prior year, reaching $133.5 million. 3. Full year 2024 revenue was $4.5 billion, up 12% from 2023. 4. Cancellation rate rose to 14% in Q4, slightly above last year's 13%. 5. Company maintains strong financial health with $2.9 billion in shareholder equity.

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$135.2601/29 07:33 AM EDTEvent Start
$131.0101/30 02:11 PM EDTLatest Updated
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Why Very Bullish?

Record financial results and growing demand typically lead to stock price increases.

How important is it?

The article highlights significant financial performance, which is critical for investor sentiment.

Why Long Term?

Sustained growth in contracts and revenue suggests future performance stability and potential price appreciation.

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MHO
, /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for its fourth quarter and year ended December 31, 2024. 2024 Fourth Quarter Results: Record fourth quarter homes delivered and income New contracts increased 11% to 1,759 Homes delivered increased 19% to 2,402 Revenue of $1.2 billion, up 24% Pre-tax income of $171 million, up 24% Net income increased 27% to $133.5 million ($4.71 per diluted share) compared to $105 million ($3.66 per diluted share) in 2023 Repurchased $50 million of stock 2024 Full Year Results: Record homes delivered, revenue and income New contracts increased 8% to 8,584 Homes delivered increased 12% to 9,055 Revenue increased 12% to $4.5 billion Pre-tax income increased 21% to $734 million; 16% of revenue Net income increased 21% to $564 million ($19.71 per diluted share) Shareholders' equity reached an all-time record of $2.9 billion, a 17% increase from a year ago, with book value per share of $109 Repurchased $176 million of stock Return on equity of 21% Homebuilding debt to capital ratio of 19% compared to 22% at December 31, 2023 For the fourth quarter of 2024, the Company reported net income of $133.5 million, or $4.71 per diluted share, compared to net income of $105.3 million, or $3.66 per diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported net income of $563.7 million, or $19.71 per diluted share, compared to net income of $465.4 million, or $16.21 per diluted share in 2023. Homes delivered in 2024's fourth quarter reached an all-time quarterly record of 2,402, a 19% increase compared to 2,019 deliveries in 2023's fourth quarter. Homes delivered for the twelve months ended December 31, 2024 increased 12% to a record 9,055 from 2023's deliveries of 8,112. New contracts for 2024's fourth quarter increased 11% to 1,759 from 1,588 new contracts in 2023's fourth quarter. For 2024, new contracts were 8,584, an 8% increase from 2023's 7,977 new contracts. Homes in backlog decreased 16% at December 31, 2024 to 2,531 units, with a sales value of $1.4 billion, an 11% decrease from last year, while the average sales price in backlog increased 5% to an all-time record $553,000. At December 31, 2023, the sales value of the 3,002 homes in backlog was $1.6 billion, with an average sales price of $525,000. M/I Homes had 220 active communities at December 31, 2024 compared to 213 a year ago. The Company's cancellation rate was 14% in 2024's fourth quarter compared to 13% for the prior year's fourth quarter. Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had an outstanding 2024 highlighted by all-time records in homes delivered, revenue and income. Our homes delivered increased 12% to 9,055 generating revenue of $4.5 billion - a 12% increase over 2023. Our gross margins were 26.6% compared to 25.3%  and pre-tax income was $734 million, a 21% increase over last year. Our pre-tax margin reached 16% and we produced a strong return on equity of 21%." Mr. Schottenstein continued, "We are in excellent financial condition. We ended the year with record shareholders' equity of $2.9 billion, cash of $822 million, zero borrowings under our $650 million credit facility, a homebuilding debt to capital ratio of 19% and a net debt to capital ratio of negative 5%. Our year-end book value was a record $109 per share. As we begin 2025, we believe our industry will continue to benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing." The Company will broadcast live its earnings conference call today at 10:30 a.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 January 2026. 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, Fort Myers/Naples 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, 2023, 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 Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 New contracts 1,759 1,588 8,584 7,977 Average community count 219 209 216 202 Cancellation rate 14 % 13 % 10 % 11 % Backlog units 2,531 3,002 2,531 3,002 Backlog sales value $ 1,399,683 $ 1,575,643 $ 1,399,683 $ 1,575,643 Homes delivered 2,402 2,019 9,055 8,112 Average home closing price $           490 $           471 $           483 $           483 Homebuilding revenue:    Housing revenue $ 1,175,883 $    950,872 $ 4,375,829 $ 3,914,372    Land revenue 882 2,025 12,635 25,301 Total homebuilding revenue $ 1,176,765 $    952,897 $ 4,388,464 $ 3,939,673    Financial services revenue 28,512 19,691 116,206 93,829 Total revenue $ 1,205,277 $    972,588 $ 4,504,670 $ 4,033,502 Cost of sales - operations 908,452 728,202 3,305,781 3,014,573 Gross margin $    296,825 $    244,386 $ 1,198,889 $ 1,018,929 General and administrative expense 70,059 60,284 258,422 222,765 Selling expense 62,775 54,256 234,373 208,942 Operating income $    163,991 $    129,846 $    706,094 $    587,222 Other loss (income) — 1 — (33) Interest income, net of interest expense (6,566) (8,129) (27,514) (20,022) Income before income taxes $    170,557 $    137,974 $    733,608 $    607,277 Provision for income taxes 37,088 32,692 169,883 141,912 Net income $    133,469 $    105,282 $    563,725 $    465,365 Earnings per share: Basic $          4.85 $          3.79 $        20.29 $        16.76 Diluted $          4.71 $          3.66 $        19.71 $        16.21 Weighted average shares outstanding: Basic 27,538 27,769 27,777 27,769 Diluted 28,308 28,756 28,600 28,716 M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) As of December 31, 2024 2023 Assets: Total cash, cash equivalents and restricted cash $      821,570 $      732,804 Mortgage loans held for sale 283,540 176,329 Inventory: Lots, land and land development 1,630,190 1,446,576 Land held for sale 7,699 6,932 Homes under construction 1,271,626 1,177,101 Other inventory 182,347 166,542 Total Inventory $   3,091,862 $   2,797,151 Property and equipment - net 34,513 34,918 Operating lease right-of-use assets 53,895 56,364 Goodwill 16,400 16,400 Investments in joint venture arrangements 65,334 44,011 Deferred income tax asset 13,451 16,094 Other assets 169,231 148,369 Total Assets $   4,549,796 $   4,022,440 Liabilities: Debt - Homebuilding Operations: Senior notes due 2028 - net 397,653 396,879 Senior notes due 2030 - net 297,369 296,865 Total Debt - Homebuilding Operations $      695,022 $      693,744 Notes payable bank - financial services operations 286,159 165,844 Total Debt $      981,181 $      859,588 Accounts payable 198,579 204,678 Operating lease liabilities 55,365 57,566 Other liabilities 374,994 383,669 Total Liabilities $   1,610,119 $   1,505,501 Shareholders' Equity 2,939,677 2,516,939 Total Liabilities and Shareholders' Equity $   4,549,796 $   4,022,440 Book value per common share $        108.62 $          90.66 Homebuilding debt / capital ratio(1) 19 % 22 % (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 Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Cash provided by operating activities $       104,395 $         54,901 $       179,736 $       552,131 Cash used in investing activities $          (9,859) $          (4,500) $        (54,896) $        (18,632) Cash provided by (used in) financing activities $           7,114 $        (53,849) $        (36,074) $      (112,237) Land/lot purchases $       107,384 $         95,930 $       472,937 $       343,504 Land development spending $       201,301 $       159,550 $       645,960 $       512,105 Land sale revenue $              882 $           2,025 $         12,635 $         25,301 Land sale gross profit $              391 $              356 $           3,709 $           3,360 Financial services pre-tax income $         10,034 $           4,676 $         49,682 $         38,354 M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net income $       133,469 $       105,282 $       563,725 $       465,365 Add: Provision for income taxes 37,088 32,692 169,883 141,912 Interest income - net (10,177) (10,908) (40,719) (30,030) Interest amortized to cost of sales 8,181 7,724 32,053 33,326 Depreciation and amortization 4,810 4,479 18,700 17,369 Non-cash charges 9,709 13,241 23,808 20,247 Adjusted EBITDA $       183,080 $       152,510 $       767,450 $       648,189 (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 Twelve Months Ended December 31, December 31, % % Region 2024 2023 Change 2024 2023 Change Northern 707 699 1 % 3,761 3,361 12 % Southern 1,052 889 18 % 4,823 4,616 4 % Total 1,759 1,588 11 % 8,584 7,977 8 % HOMES DELIVERED Three Months Ended Twelve Months Ended December 31, December 31, % % Region 2024 2023 Change 2024 2023 Change Northern 1,064 848 25 % 3,873 3,169 22 % Southern 1,338 1,171 14 % 5,182 4,943 5 % Total 2,402 2,019 19 % 9,055 8,112 12 % BACKLOG December 31, 2024 December 31, 2023 Dollars Average Dollars Average Region Units (millions) Sales Price Units (millions) Sales Price Northern 1,136 $           637 $     561,000 1,248 $           663 $     531,000 Southern 1,395 $           763 $     547,000 1,754 $           912 $     520,000 Total 2,531 $        1,400 $     553,000 3,002 $        1,576 $     525,000 LAND POSITION SUMMARY December 31, 2024 December 31, 2023 Lots Lots Under Lots Lots Under Region Owned Contract Total Owned Contract Total Northern 6,546 11,076 17,622 6,852 8,935 15,787 Southern 17,290 17,244 34,534 17,522 12,351 29,873 Total 23,836 28,320 52,156 24,374 21,286 45,660 SOURCE M/I Homes, Inc. 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