MHO 8-K
M/I Homes, Inc. (MHO)
8-K
2023-07-26
For: 2023-07-26
View Original
Added on
April 10, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
| CURRENT REPORT | ||
| Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934 | ||
Date of Report (Date of earliest event reported): July 26, 2023
| (Exact name of registrant as specified in its charter) | ||||||||||||||
| (State or other jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
| of incorporation) | File Number) | Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
(614 ) 418-8000
(Telephone Number)
| N/A | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SECTION 2 FINANCIAL INFORMATION
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 26, 2023, M/I Homes, Inc. (the “Company”) issued a press release reporting financial results for the three- and six-months ended June 30, 2023. A copy of this press release, including information concerning forward-looking statements and factors that may affect our future results, is attached hereto as Exhibit 99.1.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
Exhibit No. | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document).* | |||||||
*Submitted electronically with this Report in accordance with the provisions of Regulation S-T.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 26, 2023
M/I Homes, Inc.
By: | /s/ Ann Marie W. Hunker | ||||
Ann Marie W. Hunker | |||||
VP, Chief Accounting Officer and Controller | |||||
Exhibit 99.1
M/I Homes Reports
2023 Second Quarter Results
Columbus, Ohio (July 26, 2023) - M/I Homes, Inc. (NYSE:MHO) announced results for the three and six months ended June 30, 2023.
2023 Second Quarter Highlights:
•New contracts increased 21% to 2,197 contracts
•Delivered 1,990 homes, down 7% from 2022’s 2,133 homes delivered
•Revenue of $1.0 billion, down 3% from 2022’s second quarter record level
•Pre-tax income of $155.4 million, down 15% from 2022’s record of $182.2 million
•Net income of $118.0 million ($4.12 per diluted share), down 14% from 2022’s record of $136.8 million
•Shareholders’ equity reached a record of $2.3 billion, a 26% increase from a year ago, with book value per share of $83
•Return on equity of 23%
For the second quarter of 2023, the Company reported pre-tax income of $155.4 million and net income of $118.0 million, or $4.12 per diluted share. This compares to pre-tax income of $182.2 million and net income of $136.8 million, or $4.79 per diluted share, for the second quarter of 2022. For the six months ended June 30, 2023, net income decreased 3% to $221.1 million, or $7.77 per diluted share, compared to $228.7 million, or $7.93 per diluted share, for the same period of 2022.
Homes delivered in 2023’s second quarter decreased 7% to 1,990 homes. This compares to 2,133 homes delivered in 2022’s second quarter. Homes delivered for the six months ended June 30, 2023 increased 1% to 3,997 from 2022’s deliveries of 3,956. New contracts for the second quarter of 2023 increased 21% to 2,197 new contracts. For the first six months of 2023, new contracts increased 1% to 4,368 compared to 4,334 in 2022. Homes in backlog at June 30, 2023 had a total sales value of $1.8 billion, a 34% decrease from a year ago. Backlog units at June 30, 2023 decreased 33% to 3,508 homes, with an average sales price of $507,000. At June 30, 2022, backlog sales value was $2.7 billion, with backlog units of 5,213 and an average sales price of $519,000. M/I Homes had 195 communities at June 30, 2023 compared to 168 communities at June 30, 2022. The Company's cancellation rate was 10% in the second quarter of 2023 compared to 11% in the second quarter of 2022.
Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had a very strong second quarter. Despite higher interest rates and uncertain economic conditions, we were very pleased with our new contracts, homes delivered, margins and income. New contracts improved by 21% over last year; we delivered 1,990 homes and continued to improve our construction cycle time; gross margins were considerably better than expected at 26%; and pre-tax income of $155 million, though down from last year’s record level, represented 15.3% of revenue. These results produced a very solid 23% return on equity. Our book value per share is now $83, an increase of 26% versus a year ago.”
Mr. Schottenstein continued, “Our financial condition remains strong. We ended the quarter with record shareholders’ equity of $2.3 billion and available liquidity in excess of $1 billion. We believe our industry will continue to benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing. Looking ahead, we are well positioned to continue delivering strong results.”
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 July 2024.
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, 2022, 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.
Contact M/I Homes, Inc.
Ann Marie W. Hunker, Vice President, Chief Accounting Officer and Controller, (614) 418-8225
Mark Kirkendall, Vice President, Treasurer, (614) 418-8021
M/I Homes, Inc. and Subsidiaries
Summary Statement of Income (unaudited)
(Dollars and shares in thousands, except per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| New contracts | 2,197 | 1,820 | 4,368 | 4,334 | |||||||||||||||||||
| Average community count | 198 | 172 | 197 | 173 | |||||||||||||||||||
| Cancellation rate | 10 | % | 11 | % | 12 | % | 9 | % | |||||||||||||||
| Backlog units | 3,508 | 5,213 | 3,508 | 5,213 | |||||||||||||||||||
| Backlog sales value | $ | 1,777,657 | $ | 2,706,586 | $ | 1,777,657 | $ | 2,706,586 | |||||||||||||||
| Homes delivered | 1,990 | 2,133 | 3,997 | 3,956 | |||||||||||||||||||
| Average home closing price | $ | 493 | $ | 477 | $ | 489 | $ | 468 | |||||||||||||||
| Homebuilding revenue: | |||||||||||||||||||||||
| Housing revenue | $ | 980,198 | $ | 1,017,906 | $ | 1,955,144 | $ | 1,851,069 | |||||||||||||||
| Land revenue | 8,549 | 3,374 | 8,852 | 6,911 | |||||||||||||||||||
| Total homebuilding revenue | $ | 988,747 | $ | 1,021,280 | $ | 1,963,996 | $ | 1,857,980 | |||||||||||||||
| Financial services revenue | 25,266 | 19,374 | 50,547 | 43,485 | |||||||||||||||||||
| Total revenue | $ | 1,014,013 | $ | 1,040,654 | $ | 2,014,543 | $ | 1,901,465 | |||||||||||||||
| Cost of sales - operations | 755,829 | 756,367 | 1,521,733 | 1,404,069 | |||||||||||||||||||
| Gross margin | $ | 258,184 | $ | 284,287 | $ | 492,810 | $ | 497,396 | |||||||||||||||
| General and administrative expense | 55,654 | 55,216 | 106,614 | 103,999 | |||||||||||||||||||
| Selling expense | 51,871 | 46,206 | 100,951 | 87,627 | |||||||||||||||||||
| Operating income | $ | 150,659 | $ | 182,865 | $ | 285,245 | $ | 305,770 | |||||||||||||||
| Other income | (28) | (1) | (35) | (17) | |||||||||||||||||||
| Interest (income) expense - net | (4,670) | 693 | (6,059) | 1,364 | |||||||||||||||||||
| Income before income taxes | $ | 155,357 | $ | 182,173 | $ | 291,339 | $ | 304,423 | |||||||||||||||
| Provision for income taxes | 37,356 | 45,335 | 70,272 | 75,746 | |||||||||||||||||||
| Net income | $ | 118,001 | $ | 136,838 | $ | 221,067 | $ | 228,677 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 4.25 | $ | 4.88 | $ | 7.98 | $ | 8.10 | |||||||||||||||
| Diluted | $ | 4.12 | $ | 4.79 | $ | 7.77 | $ | 7.93 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 27,792 | 28,041 | 27,698 | 28,231 | |||||||||||||||||||
| Diluted | 28,624 | 28,590 | 28,469 | 28,826 | |||||||||||||||||||
M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)
| As of | |||||||||||
| June 30, | |||||||||||
| 2023 | 2022 | ||||||||||
| Assets: | |||||||||||
Total cash, cash equivalents and restricted cash (1) | $ | 668,287 | $ | 188,755 | |||||||
| Mortgage loans held for sale | 190,845 | 194,450 | |||||||||
| Inventory: | |||||||||||
| Lots, land and land development | 1,296,486 | 1,136,380 | |||||||||
| Land held for sale | 15,183 | 10,524 | |||||||||
| Homes under construction | 1,207,759 | 1,514,965 | |||||||||
| Other inventory | 167,586 | 154,396 | |||||||||
| Total Inventory | $ | 2,687,014 | $ | 2,816,265 | |||||||
| Property and equipment - net | 35,495 | 36,150 | |||||||||
| Investments in joint venture arrangements | 41,988 | 55,625 | |||||||||
| Operating lease right-of-use assets | 58,404 | 52,328 | |||||||||
| Goodwill | 16,400 | 16,400 | |||||||||
| Deferred income tax asset | 18,019 | 10,251 | |||||||||
| Other assets | 145,297 | 123,100 | |||||||||
| Total Assets | $ | 3,861,749 | $ | 3,493,324 | |||||||
| Liabilities: | |||||||||||
| Debt - Homebuilding Operations: | |||||||||||
| Senior notes due 2028 - net | $ | 396,492 | $ | 395,718 | |||||||
| Senior notes due 2030 - net | 296,613 | 296,109 | |||||||||
| Notes payable - other | — | 1,001 | |||||||||
| Total Debt - Homebuilding Operations | $ | 693,105 | $ | 692,828 | |||||||
| Notes payable bank - financial services operations | 186,396 | 194,602 | |||||||||
| Total Debt | $ | 879,501 | $ | 887,430 | |||||||
| Accounts payable | 264,656 | 329,384 | |||||||||
| Operating lease liabilities | 59,461 | 53,058 | |||||||||
| Other liabilities | 359,672 | 405,185 | |||||||||
| Total Liabilities | $ | 1,563,290 | $ | 1,675,057 | |||||||
| Shareholders’ Equity | 2,298,459 | 1,818,267 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,861,749 | $ | 3,493,324 | |||||||
| Book value per common share | $ | 82.73 | $ | 65.50 | |||||||
Homebuilding debt to capital ratio (2) | 23 | % | 28 | % | |||||||
(1)Includes $0.9 million and $1.2 million of restricted cash and cash held in escrow for the quarters ended June 30, 2023 and 2022, respectively.
(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 | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Cash provided by operating activities | $ | 166,190 | $ | 9,214 | $ | 417,689 | $ | 78,540 | |||||||||||||||
| Cash provided by (used in) investing activities | $ | 1,991 | $ | (4,829) | $ | (2,802) | $ | (11,463) | |||||||||||||||
| Cash used in financing activities | $ | (42,458) | $ | (34,236) | $ | (58,142) | $ | (114,690) | |||||||||||||||
| Land/lot purchases | $ | 96,068 | $ | 120,667 | $ | 141,714 | $ | 214,615 | |||||||||||||||
| Land development spending | $ | 108,914 | $ | 106,543 | $ | 201,333 | $ | 207,240 | |||||||||||||||
| Land sale revenue | $ | 8,549 | $ | 3,374 | $ | 8,852 | $ | 6,911 | |||||||||||||||
| Land sale gross profit | $ | 892 | $ | 591 | $ | 889 | $ | 1,558 | |||||||||||||||
| Financial services pre-tax income | $ | 11,159 | $ | 8,667 | $ | 23,800 | $ | 21,722 | |||||||||||||||
M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income | $ | 118,001 | $ | 136,838 | $ | 221,067 | $ | 228,677 | |||||||||||||||
| Add: | |||||||||||||||||||||||
| Provision for income taxes | 37,356 | 45,335 | 70,272 | 75,746 | |||||||||||||||||||
| Interest (income) expense - net | (6,980) | (750) | (10,653) | (1,307) | |||||||||||||||||||
| Interest amortized to cost of sales | 8,734 | 7,536 | 16,824 | 14,863 | |||||||||||||||||||
| Depreciation and amortization | 4,266 | 4,286 | 8,663 | 8,474 | |||||||||||||||||||
| Non-cash charges | 2,301 | 2,018 | 4,324 | 3,849 | |||||||||||||||||||
| Adjusted EBITDA | $ | 163,678 | $ | 195,263 | $ | 310,497 | $ | 330,302 | |||||||||||||||
(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 | Six Months Ended | |||||||||||||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||||||||||||
| % | % | |||||||||||||||||||||||||||||||||||||
| Region | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||
| Northern | 949 | 722 | 31 | % | 1,777 | 1,912 | (7) | % | ||||||||||||||||||||||||||||||
| Southern | 1,248 | 1,098 | 14 | % | 2,591 | 2,422 | 7 | % | ||||||||||||||||||||||||||||||
| Total | 2,197 | 1,820 | 21 | % | 4,368 | 4,334 | 1 | % | ||||||||||||||||||||||||||||||
| HOMES DELIVERED | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||||||||||||
| % | % | |||||||||||||||||||||||||||||||||||||
| Region | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||
| Northern | 783 | 1,000 | (22) | % | 1,580 | 1,760 | (10) | % | ||||||||||||||||||||||||||||||
| Southern | 1,207 | 1,133 | 7 | % | 2,417 | 2,196 | 10 | % | ||||||||||||||||||||||||||||||
| Total | 1,990 | 2,133 | (7) | % | 3,997 | 3,956 | 1 | % | ||||||||||||||||||||||||||||||
| BACKLOG | ||||||||||||||||||||||||||||||||||||||
| June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||
| Dollars | Average | Dollars | Average | |||||||||||||||||||||||||||||||||||
| Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||||||||||||||||||||||||||||
| Northern | 1,253 | $ | 631 | $ | 504,000 | 2,042 | $ | 1,036 | $ | 507,000 | ||||||||||||||||||||||||||||
| Southern | 2,255 | $ | 1,147 | $ | 509,000 | 3,171 | $ | 1,670 | $ | 527,000 | ||||||||||||||||||||||||||||
| Total | 3,508 | $ | 1,778 | $ | 507,000 | 5,213 | $ | 2,706 | $ | 519,000 | ||||||||||||||||||||||||||||
| LAND POSITION SUMMARY | ||||||||||||||||||||||||||
| June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
| Lots | Lots Under | Lots | Lots Under | |||||||||||||||||||||||
| Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||||||||||||||
| Northern | 7,545 | 7,199 | 14,744 | 7,601 | 7,764 | 15,365 | ||||||||||||||||||||
| Southern | 15,893 | 10,695 | 26,588 | 17,196 | 15,285 | 32,481 | ||||||||||||||||||||
| Total | 23,438 | 17,894 | 41,332 | 24,797 | 23,049 | 47,846 | ||||||||||||||||||||