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.

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.

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SOURCE M/I Homes, Inc.