MHO - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Kyle, and I will be your conference operator today. At this time, I would like to welcome everyone to the M/I Homes Conference Call. All lines will be placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. you. Thank to over like Mr. our the turn would to call host, I Creek.

may your You conference. begin

Phillip Creek

for Thanks you. us. Thank joining

Joining me President on CEO the Senior VP, call today is Kevin and Tom Company; Marie Hake, EVP; Corporate Mortgage Controller; and Bob Mason, Derek our Klutch, of VP. Ann Hunker, President; Schottenstein, our

accordance forward-looking during the directly want GAAP language to disclosed turn we remind directly. our of Bob. non-GAAP release this are any measure measures earlier that we about items First Web you this no comments was and during Also, everyone consider Disclosure; to forward-looking statements to as update financial prohibited call discussing on reconciliation forward-looking comparable undertakes any site. non-public call. measure I’ll GAAP the Also press to Company encourage difference And we the call. significant made the obligation from address during you applies statements, to Fair today’s questions With ask with material call, A you call, this Regulation in be of today our to regarding over I that the financial with in release presentation most and measures. a certain made issued the that, advised during earnings this financial statements cautionary contained included the to between because is that also available non-GAAP that any issues calculated in

Bob Schottenstein

earnings growth year. Thank We and and another positioned to our results. review everyone. revenue reported are strong Thanks, call another well afternoon. of second quarter Good you for we Phil. our joining for Welcome solid quarter in

is continued to and housing continuing in overall benefiting and traffic, the are experience sales economy. U.S. We from growth healthy demand

new second contracts of and history. a second second results for quarter XX% homes quarter saw in We all-time highest This X,XXX quarter XX-year number for new our quarter. the homes from year in records ago the set and Company’s contracts, delivered was revenues. second Our increase the

XX We years of have been of past the of out year the the downturn same any one growth public that coming housing since consistent period. rates most achieving solid growth builder over XX for with

quarter our rate sales, per grown XX% at of compounded Specifically, sales least annual most second at our experienced also XX% year, and the sales and strong grown have absorptions across at XXXX through since have our aggregate contracts improved. last quarter, second rate. In our markets, we that community also

year's more for quarter. from to to from year's rate million quarter the our billion in backlog our We per of we And last sales homes. As includes $XX and revenues compared a an $XX.X second $XXX that strong year's this for X,XXX second homes second a quarter record X% X,XXX price XX% also purchase quarter XX% of year's to record from benefited result improved sales, X% quarter last to And of increased all-time a backlog and income and XX% $XXX,XXX year in million last $X to Pre-tax a second while million, up year adjustments represented than dramatically by million charges to million XX% stucco-related over Clearly, lower year's increased for excludes of a net quarter. impact second home. quarter. in significantly units the increase last increased quarter, to second XX% second this result, some accounting in income tax the increased also $X.X were of as ago. which was to value $XX.X Total closed average value. quarter the the in record closing in home

and quarter was see margins construction, as with margin delivery primarily margins our as the charges from our of pressures were with did in as pricing or XX% materials and well so, costs purchase about year home due we the by quarter, rising well communities last basis continue labor gross referred in for comments XXX all the new stucco-related earnings as both, I believe mix a prior over number XX%. excludes year's our accounting Well and in second That The that range. frankly, our to for we we mortgage the gross year decline the cost to to our charges points quarter, XX% last in our growth said, the overall gross pleased lower on will margins the to land decline to While homes consistent originations. our from ago.

to continue from revenues. which last ratio, total year's in for basis improved expense at on of points progress the with quarter We quarter XX make XX.X% second coming our SG&A overhead

leverage as we've low continue, be margins. continuing years, pre-tax divisional with operations. do ratio SG&A improving our primarily We And to as focused said on last gain growing the this by several as over our to very expect our to we

balance XX% equity a ratio a XX% shareholders' Our to better year ago. of liquidity We ended of and building capital remained million, the $XXX sheet with debt than home quarter strong. is healthy which

positioned are another year. performance well We for strong this

good solid the our communities. We have more a under lots than control of location position and very XX,XXX about lot feel of

with our We improvement our expand planned an year and this achieve grow of end continue our our remain additional we the on count are in approximately profitability. existing community community Speaking XX% up expect our growth from and to communities while active market to the XX share XX quarter markets, opened aggregate in continued fully in ago. on track at second year XXX the count to the quarter, of communities, focused

Smart on line particular, had housing our reviewing Series we've want markets, the to success Before our with I comment homes. of in

success Series is product and the price with below primarily As our you the buyer. developed Smart to home been extremely first ago of a years $XXX,XXX growth with several Smart to may recall, Series average our an sale that line affordable We've time pleased we more cater locations.

eight half that’s And Smart in markets company the close of markets. our now to total Smart of aggregate of are We Series XX% sales. the XX comprised offering of our Series

XXXX this for and later and Smart well into locations are year planned Additional beyond. Series

Now, I'll specific which of is Texas Southern our comprised performance, and of ago the three we XX% year beginning first company XXX region, deliveries the and their markets. with our more In have is about the four increase this region, provide housing the Florida a and XX% detail Southern from quarter, total. for markets

active our slightly Southern to region decreased the to and position lot year sales the our in contracts The quarter value ago, region as the XX Southern in than at particular, was is year New compared X% the backlog dollar end quarter a had a versus earlier. last in of We at our of Texas have divisions, of Southern June communities higher year. controlled X% year. XX year-over-year. And This the Southern the the the XX% XX% quarter. communities last increased XX region at in the end four to from in of we region end the of increase

four leading year-to-date. starting in with in and all which all and are gain in five Sarasota, to improved markets, newer communities of traction particular our continued improved We markets, scale to open performance is selling Texas now in

us. and Tampa operations the let Southern for that continued to add Region, on very be just Finally, Orlando me strong

Indianapolis, consists of Detroit region, is and the Minneapolis Cincinnati, our Midwest markets. Columbus, Next which Chicago,

nearly was from We second XX% have the XXX represents total. deliveries ago up and This company XX% in year quarter. the

up the our that XX% Detroit this were existing contracts excluding Midwest region year-over-year New in XX% includes up divisions, Detroit. of closings in were new our and divisions, impact

backlog and pleased a solid systems lot very ago. our ago progress to perform a Our controlled dollar a year we're of with in acquisition. from position processes. Midwest to our in by from came Midwest acquisition to operations high improved to region solid Both year I'm operations quarter the us, all that integrating sales increase of in value in full position pleased XX% the start -- Detroit, number Detroit communities of entire a our backlog Detroit respect of addition were report the was first Midwest active and very XX% XX%. XX its at Midwest, the off five for Midwest to With and Overall, to up level. our compared operations we've XX those continued acquisition. made recent and with the on an positively impacted Detroit ended by quarter the that's We in communities lot our very

region, Raleigh have been Finally, and the Charlotte markets Mid-Atlantic strong years. many for for us

market off communities modest however, on sales of The than and hand earlier communities for in of fall both experienced anticipated. these and online markets, in DC new a us. other have, be continues challenging the pace out getting We closings due to existing selling to primarily

investment XX% year region, active number have and We XX which a We communities market. level the down with our ended that ago. in communities from reduced in Mid-Atlantic the quarter is of

XXX half ago. XXXX. the for quarter Mid-Atlantic from As were value in homes of new a down year a sales XX% X% and of is delivered was a from X% contracts in region down total. result, the decrease year first ago and XX% backlog the This We

lots controlled in X% region year. quarters’ end at to the Mid-Atlantic compared total decreased last Our

Phil, said, over say I let I’ve conclude simply what want one by Before but me to call more turning it the already to saying time.

well good with have believe we a XXXX. first positioned We’re very and to our half very are results Phil? pleased

Phillip Creek

Thanks Bob.

the our second far a new was up increased community record as and As second financial count of for quarter X,XXX contracts results, to quarter XX% XX%.

XX% in April, in June. were and Our up new May up XX% contracts in up XX%

quarter second XX% were sales our XX% As first our sales to to compared quarter this second time profile, inventory quarter. of first of the first our in homes compared in XX% XX% buyer the buyers year’s quarter and to about for

and the active and breakdown second Our in of from South XX% second in XX versus up the Midwest, XX% XX at the the region up The year’s end. year is the XX in were end quarter, by communities XXX Mid-Atlantic. last quarter

During communities first year. communities while the XX opened XX new X opened we and half we closing in new the of quarter, the

’XX, communities our a the average second year homes for backlog current revenue that as be result of our community estimate to quarter services was from delivered, in XXXX, an homes XX% in financial XX% the our second second as delivering the ago. from record This primarily average X,XXX up operation. XXX $XXX should to quarter Revenue compared number record the increased We XX% of is XX% of increase year a in million. second in reaching quarter well the of about For delivered XX% of quarter, XXXX. count

X% we a average quarter XXX,XXX, sale price year for And X% We ago. land to closing second from second was year’s management our backlog Land sell the quarter. of profit last profit strategy to XX,XXX opportunities. and average quarter as price gross as year’s the last XXX,XXX in land in up is when compared wise second was XXX,XXX, our see quarter Our of closing XXX,XXX. part compared increase second

gross operating down quarter purchase Excluding is points pressures, was primarily adjustments points margin first quarter decline accounting acquisition, second over year-over-year the quarter. our This XX basis first year’s and XXX XX%. from basis This our cost was about X.X%. the and down this estimate closing about construction our We to construction our particularly were X% on and quarter origination. mix up margins lower mortgage costs due from costs quarter in that first increase lumber, our second

SG&A efficiencies major continue to of XX ago, points quarter to improving year second revenue, focus. improving reflecting XX.X greater be a a basis of expenses operating Our XX.X area leverage, were compare our

second were expense million Detroit by our accounting acquisition. related of pre-tax quarter first Our $X results purchase impacted quarter to

$X.X rate. quarter last quarter was $XX.X year's increase in higher well higher excludes compared is million as increased of year Interest last $XX.X over year's their million last million income weighted X% due million, year's the borrowings pre-tax This adjustments, $XX.X taken Interest the quarter, outstanding a ago. these $X.X increased million an second for to to this charges $X.X which expense second compared quarter. to borrowing as in stucco-related year. for million, average incurred Excluding was

total on effective This year's in our million We was rate in the XX% last tax quarter. have our X% assets. of second quarter was compared capitalized $XX balance second of our interest XX% about to And sheet.

be rate from of our credits currently XX%. rate Jobs to XXXX. Act in effective Act the estimate Our benefited the under We Bipartisan tax Budget and annual Tax and energy Cuts XXXX

quarter that, the the quarter $X.XX increased of redeemed of acquisition of impact earnings outstanding year, year. diluted of per diluted Klutch during accretive our address which to earnings company be over quarters results. our With Derek per debt share per XX% convertible cost We Our excluding it mortgage X.XX% will share. turn the two in diluted first per share, to the this this to for to related remaining I'll share

Derek Klutch

from The Phil. strong Thanks, benefitted higher operation to last financial volume number closings of services year. compared with

to on originated However, competitive pressure. due as lower mentioned, we to loans Bob and continued see pricing Phil margins the

income of pre-tax our from $X.X second quarter year. As million Loan-to-value title and the quarter first mortgages second quarter $X.X decreased result, this our million mortgage operations a XXXX, or for loans on were the XX% in from compares XXXX was XX% XX% to quarter in in XX%. XXXX’s and VA. in XX% point the conventional same down to This XXXX respectively second for XX% of closed a and period. were FHA second

average XXX quarter in Our loans increased the by and in compared mortgage of to increased to amount increased sold quarter. X%. to Loans XXXX $XXX,XXX second XXX XX% volume from originated the $XXX,XXX

average For earlier. the borrower originated X.XX, M/I from X.XX a quarter, the score Financial mortgages credit on was quarter by up

and business which operation same expire outstanding XXth, mortgage as second is the in we Our credit million the that had the at our last $XX quarter. million $XXX commitment about At expanded XXXX. of captured XX% quarter, was of MIF agreement, June under recently year's June

which million separate a outstanding October $XX expires under facility, on year. have also $XX of repo this million We

facility We are expiration. extend XXX we warehouse its typical the facilities to Both expect day to line extend annually. repo mortgage prior that to

Now, back to I'll Phil. turn the over call

Phillip Creek

Thanks Derek.

our structure. the homebuilding as investing XX, manage Homes. communities, our also billion, last more of in far sheet new above higher and lots, focusing capital to inventory managing Total while of Pinnacle levels, summary, acquisition in As June year's due our count carefully, we including primarily million at balance balance an on sheet $XXX higher $X.X XXXX was finished continue our community investment increase backlog, to

backlog million ago. raw million unsold at finished land we $XXX of lot June lots under cost XXth, is $XXX owned sale $XXX investment XX, a XX,XXX price. unsold at and an XXXX had XXX,XXX million average finished lot unsold Our with average per year and lots. of compared cost is X,XXX this land We million to of June land average and XX% development $XXX And our

year the our we South lots. land lots, finished of maintain Lots XX% XX% XX% and We lots, and one of $XXX The of as market June in XX,XXX under the in the $XXX $XXX owned XX,XXX an XX% of controlled lots. Midwest, of XX, million and additional XX,XXX of a XXXX lots XX% in of million $XXX goal mid-Atlantic. million Our the in is were mid-Atlantic. South lots in the own controlled contract. million which A the about are ago, which to owned breakdown owned unsold XX,XXX is supply in and Midwest, owned totaled for and XX,XXX total year of

we $XXX spent land was purchases and for quarter, million $XX land second year purchase $XX the and of raw this During million $XX on million development on a amount land. of million total about

land. estimate XXXX the quarter, have the about X,XXX million. completed are to $XX our we XXX Of $XXX in per XXXX, goodwill total Our million last development and XXXX, At we And and of inventory had community about for a homes, inventory is we today $XXX result XXX land spent completed homes. had million homes. XX, million and mid-Atlantic. spending XXX inventory in At of we $XXX region year, the acquisition. two Midwest, XXX XX, end total total the the in purchase June the homes are June of X,XXX as At Detroit of XXX were inventory, Southern and inventory

open $XXX our our financial We'll condition million be for any with there was by Our the the quarter accordion million questions unsecured June presentation. year. this this under or ratio from completes At in $XXX comments. facility. We facility our of borrowing outstanding second of XX, This under to call availability credit million million during homebuilding $XX exercising million to debt $XXX now continues to our and equity, XX%. increased XXXX, cap $XXX strong revolving

Operator

line comes from question Associates. the & from Ratner [Operator Instructions] Your of Zelman Alan first

open. line Your is

Alan Ratner

one the my than peers to very suggesting gave, question data stronger the So XX% are you on what's XX%. guidance I strong the and the margin On hand, what days. certainly reporting. And is are numbers order macro these your think

environment. ramp hit sequentially guidance, as both well But a to seeing the healthy implies XX% strong margin of half seeing compression like back the pretty in it shrinking. order gross the a I that XX% guess as So year, still you're year-over-year it demand to seems in just pretty

could So then pricing for ability a pretty the consumers? bit on on prices a hoping seeing you. more you push was still guidance good cost dig that gives the you're is Thank you there power seeing just of And year? front in on that little side, are I what to the to you any expected alleviation on the hitting comfort

Phillip Creek

this again, year about the quarter, approximate staying first for to XX% year. were margins second And in quarter XX%. as XX.X% As talking range were far that there equals we're the XX% to

Bob Schottenstein

this I in were response ago. you, thanks think for question. is question XX.X%, a or Alan I -- the the this and year When thing margins have been so our even a and Bob was from Schottenstein, to one might think

I believe run in XX%, XX%. quarter-to-quarter likely would think we that said we the then that of range our margins

always never You up we that range. things quarter that's sure, little quarter-to-quarter. future. be forecasting the where of really business the choppiness into end because believe that bit going for had this a to is. lower know There's you’re happen But a added put that some us We

of to I particularly some think cost side appear be appear subsiding. that lumber pressures the the

to creating XX%. goal XX% to pressures I refinancing lot the this to be business of appreciate we Certainly, other thing. pressures on our of mortgage business That's did closer a XX% fully lending think closer understandable going about the a world. was good the XX% bit But we've that's within side, maybe away and it the some heard with little quarter that. made impact of to already the is a

Alan Ratner

orders are your quite that then And on obviously, healthy. just topic, same

all over weeks. sure do that? a a couple more I've about much question suggest. a pricing how front national launched a of push the little Some in And bit bit of outside hitting last competitors see incentive of typical -- is all seen But concerned in of what I'm not room sales guess some up of if are you few starting time or your from on has the at some have late. you the of to would normal we're been this peers? for the have your markets? you wall that's softer events of year creeping are seasonality I something to macro data

Bob Schottenstein

national one and have believe year last retail A all, couple year yes, announced, weeks up sales before first we I some ourselves, few in of which did as incentives things, been there the a well. coming

is time year. Some of that a common this

will there raise think I be on prices. ability to pressure the

think the to to while runaway continue how this XX% there will. tells said for to months; XX-years next I kicked trade, working fundamentals think a I But we on also have we’ve bit, on be; it the people I a we I should we're that I because or creeping I know they’re last actually some be grown think up to over of -- time good several over little land it about saying maybe will we isn't or historic XXXX; industry we for the housing it's near you XX% that. margins. even seven, be. remain think nowhere we up margins relatively that across are the for you I'm how where increase gave don't think softening of very bullish XX% mean, think And our near the that that a think closer our and year; industry. levels, it's not though XX% to very, already going in guidance very low. spend, and housing; to rate years. and remain I But at inventory to we little that what they’re continue still to expect is In they lows most XX% here think markets eight, recent the and grow. overall think we I some

Operator

Alex the Barrón from Housing Research question Center. comes Your next of from line

is open. line Your

Alex Barrón

you your your talk can and there ask expand, to about just whether more if about level around thoughts entry wanted to seeing are guys to I that? exposure the you segments, opportunity

Bob Schottenstein

the of again several community in of that Smart number time years below buyer, selling that our branded I to mentioned total we in Yes. Today, designed We of we're average is of we our sales. about the quarters, wide launched Tampa. with continue one we're around markets. guess grow it Smart it to level entry actually started offering that. hover will approximately even price our line my several years Series, for XX% first X% ago. And the total in And primarily it's ago X% to XX% comments, now above our $XXX,XXX. -- Alex to which as It's is today communities. may Series. My next began slightly cater it's it internally company And to half XX%

planned have community for in We later Series a Smart of year this locations number and XXXX. new openings

become percentage the our of over greater think years a of next I will number it business.

to So it I don't pleased will that we're I over will excellently has today. so grow rollout. with it know to continue it and reacted the XX%, very The be but far think from if market is where

Phillip Creek

we've Alex Texas starting get of point, our really about Smart getting Texas. to to ground of well opened that another opened had it's excited happening to won't that we're just Series a and cities. in Most think in it all received And until year, in going ourselves. Texas lot our of develop because almost be next first be very we're is we But communities

Alex Barrón

XX%, wouldn't you why it So you only being bigger? would received, to why if something it's it limit make well

Bob Schottenstein

Well, think where it I will of first so all, that's realistically be.

and want evaluate, And up always Company and we'll business I don't one continues don't basket. something been -- eggs has it. to at the be growing monitor have We'll to. grow. at product evolving. or very need strong I And clip. constantly XX% plus is that that our And of to Secondly, look think too any that’s see. move put all all We to. our many We one we'll to never in

of Texas half Some the markets of think our of our divisions, and some I Texas mentioned business. our Phil

our upon divisions it's of forth. none business, other regulations, zoning and depends maybe of some suitability, just pricing and our so And

Alex Barrón

late I got Couple the I apologize questions, it little a and of one missed have on bit other might because call. I’ve

wanted this lower the your repurchases, level? stock where to drove quarter? this around And what is thoughts stock Just understand rate tax the second, the at

Ann Marie Hunker

the lower rate as to our The energy in as of result of XX% and took was XXXX lowering this business. from rate XX%, well retroactive it efficient corporate tax and a million quarter relates finished the of certifications We the granting we to the $X benefit, credit.

Alex Barrón

that corporate You in? haven't taken as

Ann Marie Hunker

No, I mean as you at recall, it extended late all in the year our of and point. we hadn’t certifications done that

Alex Barrón

it thoughts on And your or to comments as stock repurchases? pertains

Bob Schottenstein

I'll at we time-to-time simply something say our that with this. It’s look from board.

We have don't like It we'll I at looks anything that a does… meeting Hake again add look Kevin to weeks if he in it that. coming board up to wants point. at couple of know a and

Kevin Hake

did So of feel our we We longer earlier stay about we're acquisition cash over move to our do do our flow sheet. We make with I’ll part capital that leverages. forward digesting and as We period and larger add a the time. overall projections track year good balance just our repurchases consider on comfortable in try and pretty where we as that. of feel

of clearly we need a to part be So would with think talk But pleased shares not Bob Board. position. we context, we that price overall share bigger the capital that with to structure said as within is. We're decisions repurchase

Operator

next Your Instructions] comes from Wedbush. Jay question McCanless the [Operator of line from

is open. line Your

Jay McCanless

what monthly repeat I order please comps missed you the those. Phil, were? could

Phillip Creek

were in our XX% up month they in they The April, were June. order up XX% May, Jay in -- by were sales XX% were and

Jay McCanless

order would Pinnacle how quarter? did then standpoint -- you unit guys And much for a contribute from or

Phillip Creek

orders Detroit, X% increase. X% as or was the said, Bob about Detroit of XX the were about communities,

up still we XX%. that without So XX%, were

Jay McCanless

you quantify for -- in maybe actual on the was And less then gross it's assuming gain either services, what you I'm or loan? percentage from less margin on in impact sale the if financial could dollars --

Phillip Creek

at about of points operations. impact was XX the basis points XXX the change look basis you If mortgage margin, the of that in

Jay McCanless

to some are product, does existing too then, I've more side, you It you Without you're new what third is increases is And entry more generalizing competitive are like offering to in look inventory seeing both talking level in second it different Is is more product M/I out? same sale seeing your an product about. up? the think coming Bob, that from people that market. much, and now? coming markets is and What than and trying you seen move

Bob Schottenstein

all, brush; -- I'm look on in of our really I the looking inventory markets versus I'm Number than think like month places -- more have little still how first broader June April latest to focus they they of inventory same at, with hard other ticked In level that levels focusing looking in about our to ago. June seen, my an year example, lower said, markets; lower May, in a as a levels two any data it's paint to or or year versus that best in it one, I numbers the not are up than I've ago, sequentially. of to all levels, knowledge June of think the have that the have but in on in Listings, all Tampa, Orlando I MSL some in more a and inventory many markets, ago. and at whereas they primarily With jumped decline; the opposed I'm versus particular, as that nominally. sequential continue a year still our Charlotte, they bit than were at May they’re or up increased of the the

we something levels watch watch at very closely. that still and they’re but think it’s I low

don't fast. so us. far most I of selling our impacting And it's feel located like In are very really markets homes well

depending submarket though to defer dramatically to from going is pricing very, that very is think be power are. going where I upon submarket you -- to and

Jay McCanless

evidence trying to rates cutting going our you last bit move as in hearing, too. builders was about data have a the But seems be some as and Are starting price asked hearing this to just that maybe more well Alan to little I anecdotal question. and pick? think to soft specs next you And are month, been how macro faster, given

Bob Schottenstein

react to intensely much to seen was hours announced, be up. I next what as sales revised likes just that have know yes, I to But got XX heard one had that annual I even indicated, which there and XX we’ve coming or mean, I tomorrow craziness. everybody is that days. haven't haven't really react been the We will data, said. some

makes out is of And ago. we're We overall yesterday. other things that is we months not part it my the an nine do that because have And still seeing of announcement some suspicion builders It's the of review. planned think more sense. comprehensive

about still good feeling most pretty I are think demand. people

Phillip Creek

power pricing so business strong. the a lot a faced be the first. we're with. said, you're is the we we're did second you mean, But which as did stores, opening you by cost excited overall really quarter have, And of But than Bob have about. new much pressures we have, more few the location the competition I continues driven the products to

Jay McCanless

love it starting a just to trickier chime is levels. to you and share And at in be because stock like do a see it love seems share may about repurchase, maybe guys these certainly like also I’d that inexpensive seems repurchases, would given little going bit it forward. environment very

Bob Schottenstein

be at meeting. our we we’ll said issue least I with do we August it our And that and from comment. the as before, addressing And it's at look at agree with that discussing something last upcoming Board time-to-time.

Operator

Your next of from Barrón Research Center. question line Alex is from Housing the

line Your is open.

Alex Barrón

or purchase Would just more the accounting few more one to that quarters about quarter? be a ask adjustments. to expect you wanted I

Ann Marie Hunker

It two more to profit but will primarily inventory. relates and the quarters, it be about

well. to bought close. but inventory comes through homes spec that relates So some quarters from bought, that three It some at they as to as when we it we be have we could two of as bought more the

Operator

at moment. the Please There continue. are questions no

Bob Schottenstein

Thank quarter. you very Look to to you forward again talking much. next

Operator

conference. concludes That today's

disconnect. You may now

M/I Homes (MHO) 25 Jul 182018 Q2 Earnings call transcript