Exhibit 99.1
M/I Homes Reports
2022 First Quarter Results
Columbus, Ohio (April 27, 2022) - M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2022.
2022 First Quarter Highlights:
•Revenue increased 4% to $860.8 million, a first quarter record
•Pre-tax income increased 11% to $122.3 million, a first quarter record
•Net income, a first quarter record, increased 8% to $91.8 million ($3.16 per diluted share) from
2021’s $84.9 million ($2.85 per diluted share)
•Homes delivered decreased 10% to 1,823 and average sales price increased 16% to $457,000
•New contracts decreased 19% to 2,514 contracts
•Backlog units increased 1% to 5,526, an all-time quarterly record
•Backlog sales value increased 17% to $2.8 billion, an all-time quarterly record
For the first quarter of 2022, the Company reported pre-tax income of $122.3 million and net income of $91.8 million, or $3.16 per diluted share. This compares to pre-tax income of $110.3 million and net income of $84.9 million, or $2.85 per diluted share, for the first quarter of 2021.
Homes delivered in 2022’s first quarter decreased 10% to 1,823 homes. This compares to 2,019 homes delivered in 2021’s first quarter. New contracts for the first quarter of 2022 decreased 19% over 2021’s 3,109 new contracts. Homes in backlog at March 31, 2022 had a total sales value of $2.8 billion, a 17% increase from a year ago and an all-time quarterly record. Backlog units at March 31, 2022 increased 1% to an all-time quarterly record 5,526 homes, with an average sales price of $505,000. At March 31, 2021, backlog sales value was $2.4 billion, with backlog units of 5,479 and an average sales price of $433,000. M/I Homes had 176 active communities at March 31, 2022 compared to 187 communities at March 31, 2021. The Company's cancellation rate was 7% in both the first quarter of 2022 and 2021.
Robert H. Schottenstein, Chief Executive Officer and President, commented, “We had strong first quarter results highlighted by record levels of revenue, income and quarter-end backlog. Our revenue increased 4% to $861 million, pre-tax income and diluted earnings per share each improved 11% to $122 million and $3.16 per share. We achieved these record first quarter results due to a 16% increase in our average closing price, a 40 basis point improvement in our gross margin to 24.8% and a 50 basis point improvement in our overhead expense ratio. Our return on equity remained strong at 26%. We are particularly pleased with these results given the unprecedented labor challenges and supply chain issues that impacted our deliveries. In addition, despite a 6% decline in community count and limiting sales in most of our communities, we achieved record backlog units and backlog sales value, with sales value improving 17% from a year ago.”
Mr. Schottenstein continued, “We ended the quarter with record shareholders’ equity of $1.7 billion, an increase of 26% from 2021, book value per share of $60, cash of $219 million, no borrowings on our $550 million credit facility and a homebuilding debt to capital ratio of 29%. During the quarter, we also repurchased $15 million of our common shares. Demand for new homes remains strong despite the increase in interest rates. Looking ahead, given our record backlog and strong backlog margins, along with a record number of new community openings planned this year, we are positioned to achieve another year of strong results in 2022.”
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 2023.
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 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, 2021, 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 | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||
| New contracts | 2,514 | 3,109 | |||||||||||||||||||||
| Average community count | 176 | 195 | |||||||||||||||||||||
| Cancellation rate | 7 | % | 7 | % | |||||||||||||||||||
| Backlog units | 5,526 | 5,479 | |||||||||||||||||||||
| Backlog sales value | $ | 2,788,234 | $ | 2,373,828 | |||||||||||||||||||
| Homes delivered | 1,823 | 2,019 | |||||||||||||||||||||
| Average home closing price | $ | 457 | $ | 395 | |||||||||||||||||||
| Homebuilding revenue: | |||||||||||||||||||||||
| Housing revenue | $ | 833,163 | $ | 798,279 | |||||||||||||||||||
| Land revenue | 3,537 | 848 | |||||||||||||||||||||
| Total homebuilding revenue | $ | 836,700 | $ | 799,127 | |||||||||||||||||||
| Financial services revenue | 24,111 | 29,649 | |||||||||||||||||||||
| Total revenue | $ | 860,811 | $ | 828,776 | |||||||||||||||||||
| Cost of sales - operations | 647,702 | 626,585 | |||||||||||||||||||||
| Gross margin | $ | 213,109 | $ | 202,191 | |||||||||||||||||||
| General and administrative expense | 48,783 | 45,205 | |||||||||||||||||||||
| Selling expense | 41,421 | 45,689 | |||||||||||||||||||||
| Operating income | $ | 122,905 | $ | 111,297 | |||||||||||||||||||
| Other income | (16) | (160) | |||||||||||||||||||||
| Interest expense | 671 | 1,176 | |||||||||||||||||||||
| Income before income taxes | $ | 122,250 | $ | 110,281 | |||||||||||||||||||
| Provision for income taxes | 30,411 | 25,415 | |||||||||||||||||||||
| Net income | $ | 91,839 | $ | 84,866 | |||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 3.23 | $ | 2.92 | |||||||||||||||||||
| Diluted | $ | 3.16 | $ | 2.85 | |||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 28,424 | 29,015 | |||||||||||||||||||||
| Diluted | 29,072 | 29,743 | |||||||||||||||||||||
M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)
| As of | |||||||||||
| March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Assets: | |||||||||||
Total cash, cash equivalents and restricted cash (1) | $ | 218,606 | $ | 292,900 | |||||||
| Mortgage loans held for sale | 200,455 | 217,524 | |||||||||
| Inventory: | |||||||||||
| Lots, land and land development | 1,116,069 | 831,837 | |||||||||
| Land held for sale | 8,377 | 4,085 | |||||||||
| Homes under construction | 1,325,672 | 985,227 | |||||||||
| Other inventory | 132,434 | 139,385 | |||||||||
| Total Inventory | $ | 2,582,552 | $ | 1,960,534 | |||||||
| Property and equipment - net | 36,776 | 24,939 | |||||||||
| Investments in joint venture arrangements | 57,309 | 33,822 | |||||||||
| Operating lease right-of-use assets | 50,907 | 51,755 | |||||||||
| Goodwill | 16,400 | 16,400 | |||||||||
| Deferred income tax asset | 10,251 | 6,183 | |||||||||
| Other assets | 133,255 | 105,503 | |||||||||
| Total Assets | $ | 3,306,511 | $ | 2,709,560 | |||||||
| Liabilities: | |||||||||||
| Debt - Homebuilding Operations: | |||||||||||
| Senior notes due 2025 - net | $ | — | $ | 247,743 | |||||||
| Senior notes due 2028 - net | 395,524 | 394,750 | |||||||||
| Senior notes due 2030 - net | 295,983 | — | |||||||||
| Notes payable - other | 1,871 | 2,544 | |||||||||
| Total Debt - Homebuilding Operations | $ | 693,378 | $ | 645,037 | |||||||
| Notes payable bank - financial services operations | 203,650 | 176,204 | |||||||||
| Total Debt | $ | 897,028 | $ | 821,241 | |||||||
| Accounts payable | 281,387 | 198,216 | |||||||||
| Operating lease liabilities | 51,546 | 52,029 | |||||||||
| Other liabilities | 372,861 | 284,652 | |||||||||
| Total Liabilities | $ | 1,602,822 | $ | 1,356,138 | |||||||
| Shareholders’ Equity | 1,703,689 | 1,353,422 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,306,511 | $ | 2,709,560 | |||||||
| Book value per common share | $ | 60.22 | $ | 46.37 | |||||||
Homebuilding debt to capital ratio (2) | 29 | % | 32 | % | |||||||
(1)Includes $0.9 million and $0.5 million of restricted cash and cash held in escrow for the quarters ended March 31, 2022 and 2021, 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 | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||
| Cash provided by operating activities | $ | 69,326 | $ | 75,168 | |||||||||||||||||||
| Cash (used in) provided by investing activities | $ | (6,634) | $ | 623 | |||||||||||||||||||
| Cash used in by financing activities | $ | (80,454) | $ | (43,701) | |||||||||||||||||||
| Land/lot purchases | $ | 93,948 | $ | 92,358 | |||||||||||||||||||
| Land development spending | $ | 100,697 | $ | 71,195 | |||||||||||||||||||
| Land sale revenue | $ | 3,537 | $ | 848 | |||||||||||||||||||
| Land sale gross profit | $ | 967 | $ | 250 | |||||||||||||||||||
| Financial services pre-tax income | $ | 13,055 | $ | 19,693 | |||||||||||||||||||
M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results (1)
(Dollars in thousands)
| Three Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||
| Net income | $ | 91,839 | $ | 84,866 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Provision for income taxes | 30,411 | 25,415 | |||||||||||||||||||||
| Interest (income) expense-net of interest income | (557) | 275 | |||||||||||||||||||||
| Interest amortized to cost of sales | 7,327 | 8,205 | |||||||||||||||||||||
| Depreciation and amortization | 4,188 | 4,110 | |||||||||||||||||||||
| Non-cash charges | 1,831 | 2,102 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 135,039 | $ | 124,973 | |||||||||||||||||||
(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 | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||
| Northern | 1,190 | 1,306 | (9) | % | |||||||||||||||||||||||||||||||||||||
| Southern | 1,324 | 1,803 | (27) | % | |||||||||||||||||||||||||||||||||||||
| Total | 2,514 | 3,109 | (19) | % | |||||||||||||||||||||||||||||||||||||
| HOMES DELIVERED | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||||||||||||||||||||
| % | |||||||||||||||||||||||||||||||||||||||||
| Region | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||
| Northern | 760 | 801 | (5) | % | |||||||||||||||||||||||||||||||||||||
| Southern | 1,063 | 1,218 | (13) | % | |||||||||||||||||||||||||||||||||||||
| Total | 1,823 | 2,019 | (10) | % | |||||||||||||||||||||||||||||||||||||
| BACKLOG | ||||||||||||||||||||||||||||||||||||||
| March 31, 2022 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Dollars | Average | Dollars | Average | |||||||||||||||||||||||||||||||||||
| Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||||||||||||||||||||||||||||
| Northern | 2,320 | $ | 1,145 | $ | 494,000 | 2,320 | $ | 1,049 | $ | 452,000 | ||||||||||||||||||||||||||||
| Southern | 3,206 | $ | 1,643 | $ | 513,000 | 3,159 | $ | 1,325 | $ | 419,000 | ||||||||||||||||||||||||||||
| Total | 5,526 | $ | 2,788 | $ | 505,000 | 5,479 | $ | 2,374 | $ | 433,000 | ||||||||||||||||||||||||||||
| LAND POSITION SUMMARY | ||||||||||||||||||||||||||
| March 31, 2022 | March 31, 2021 | |||||||||||||||||||||||||
| Lots | Lots Under | Lots | Lots Under | |||||||||||||||||||||||
| Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||||||||||||||
| Northern | 7,359 | 7,906 | 15,265 | 6,242 | 8,489 | 14,731 | ||||||||||||||||||||
| Southern | 16,871 | 13,646 | 30,517 | 10,522 | 16,730 | 27,252 | ||||||||||||||||||||
| Total | 24,230 | 21,552 | 45,782 | 16,764 | 25,219 | 41,983 | ||||||||||||||||||||