MHO - Earnings call transcript Q4 2018

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Operator

Good afternoon. My name is Rochey and I will be your conference operator today. At this time, I would like to welcome everyone to the M/I Homes Fourth Quarter and Year-End Conference Call. [Operator Instructions] Thank you. Mr. your begin may you conference. Creek,

Phillip Creek

Thank you.

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

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

Bob Schottenstein

a increase billion, record for income reached M/I XX% fourth XX% Thanks, a a year a income. XXXX and in better highlighted results. a by joining closed call XXXX. contracts, XX% by full income and We than income was Net XXXX. better new end to of end We XXXX $X.X homes XXXX, of and XXXX our than reached backlog improved XXXX. to More X% unusual better strong XX% $XXX increase homes, the and review at Phil at high XXXX specifically, than higher valued the record in units over afternoon. net quarter and revenue, our at a increase XXXX XXXX before million, sold pre-tax charges revenues backlog XX% homes, XX% Thank ended XX% than XX% of XXXX good for homes record million. of you strong We pre-tax with which XXXX. million, record very delivered, $XXX $XXX is Homes, year than

achieved and also fourth number over a a with addition a sales to closings steady rate first, In than the standpoint, to over we XX% I million. growth growth full quarter XX% revenues that have From increasing to with we XX% make; period. past better have XX records, year consistent, comments annual a years, year record ago, quarter achieved record of homes fourth delivered, our XXXX compounded sales $XXX

more pressures (inaudible) Our of in the decline half demand our off as competitors rates sales about we conditions began in XXXX to part year, in on new the homes experienced the for latter and of trail overall first began then year, the affordability. were rising to very like strong and from brought and

begin us, more a optimism, late to season. As of I we last conditions the year declined quarter and uncertainty appear selling X% still choppy believe a bit our year-over-year. be spring The result, economic fourth with are, there sales as though now does

comp smart quite a good to in series. In an where concerns were response said, conditions second X% that in down dealing more with with January our we it very to sales from that and up traffic. be traffic from a January ago, recent difficult suggest ever sales reaction uptick year note were January And continue and last affordability, to challenging we experience of were our XXXX. XX% I January the best should Our our to also trends housing market happened

Series priced expanded of markets more we will of our first the Smart Series introduced communities time, line we have considerably As homes where we XXXX. number offer in recall, and you affordably our Since Tampa that in the By fourth the of quarter company and line. comprising communities total XX% Smart Smart of in was XX% in of Series XXXX, total of sales. XX XX markets our M/I than offered more

Smart total selling services by about XXXX, XXXX; the company are accounting rolled year additional We M/I years communities and in in be Series specifically an to we many and in is has XX now Shifting operation expect markets for XX as minutes. a had profitable for Derek managed homes soundly been us. sales. for revenues. end President results financial very these our well than as originated segment; XX% of our is loans Financial being our will excellent and excited a Klutch, few for records of of Financial out report Smart Series our to more of setting XXXX on M/I

balance remained debt-to-capital during ended We the XX homebuilding record our worth new ended XXX and XXXX an with the of and a reached healthy selling Our very of liquidity sheet year net all-time million. $XXX communities and communities. year XX% opened strong. with active ratio We

So, are well as begin we positioned we XXXX.

with which In quarter about Texas company XX% XXX which homes total. year, delivered southern bit Florida XX% three from markets. beginning region, the a the comprised XXXX XXXX more the was various and represented Now our we a and southern region, is of I’ll increase for detail the our of during four and provide markets, fourth

the southern We year. region end was southern our X% value in contracts sales in was the decreased XX in markets, compared we growing region end quarter make with in our where operation a improved and now our to selling. X% Sarasota, and have newest is our progress of a financial increased Florida, ago. communities are New XXXX. controlled real southern of open an in eight backlog at position year performance noticeable X% had continuing the of the and full from region to XXXX increase in in before, southern lock dollar should scale of which XX% at we and which make year in region the our for Texas in to the note for improving year, of And progress communities we region southern I Sarasota and The continue the up markets the the the XX%

each We strong both operation us. market very had also profitable positions Tampa Orlando and in a for to highly be continues

year Chicago, mid-west the which the in Minneapolis is total. Columbus, consists and company XX% to the year Cincinnati, XXX Detroit. fourth XXXX moving a Next XX% increase in and the for Indianapolis, deliveries which a had We quarter and region of mid-west ago from

the the actually total but quarter, XX% in were X% in mid-west year. up down contracts New fourth the for

in the very us continues in increase well This XX the newest to a that solid our Minnesota Our of in the ago. Columbus Both communities of acquisition ended achieving dollar Detroit. by which sales was December beginning sound impacted the with position is the and Detroit. divisions includes year increased XX% for especially value of perform of from from and with and Chicago communities Overall, lot the XX% controlled our mid-west our ago positively active by XX% substantial mid-west. a mid-west mid-west were the our growth. year recent in We market and XX and backlog compared year up year to in XXXX the in

to-date with We and the are progress our remained operation market Detroit making there solid. good

in the for Charlotte we been year Raleigh as sales in XXXX, region, experienced did us. a Mid-Atlantic well and the closing fall-off sales communities new experience in in strong ways Finally, had Raleigh Charlotte. years to fall-off have in was another for due online. but getting fall-off in Charlotte’s many markets primarily a in closings solid

are for DC us. continues both and Charlotte working be challenging new communities replacement We Raleigh open to XXXX. to in The market in

communities considerably Mid-Atlantic which for We for investment full the as quarter, XXX well for X% from a and in that contracts Mid-Atlantics X% year active down level was as homes with year, beginning We down year in of company of XX% the region new quarter represents backlog total. Mid-Atlantic which region fourth year. the the in from was the from have of the XX XX% our XXX We reduced delivered this the market. region Mid-Atlantic we were and of sales in decline the year, XX% number delivered ago ended the the the is the communities the homes DC in start in total a down

Our by decreased total as lots in controlled X%. of year region Mid-Atlantic of the the the end

by we today than turning Before seeing issue, margin that to are is a and to conditions year With believe communities has clearly excellent with of softened, turn to they With opening. the let XXXX. I’ll call challenging we it very number affordability that We however, housing more some communities were Phil. enter as very to backlog, continue ago. me pressure. Phil, are Demand an XXXX planned likely over conclude we saying, begin a said and a you well positioned new we solid over that, are

Phillip Creek

Bob. Thanks

As all-time new for high financial for sales up previous XXXX increased of XXXX XX% over far an record XX% to record as contracts results, was our XXXX. XXXX.

were compared quarter, were October, December quarter. up in quarter prior and the in XX% X% years’ XXXX, X% the to total for In fourth X%. fourth Traffic the was year. For contracts quarter last our up for November X% down decline up new sales in down a XX% over fourth

third first XXXX time of XX% XX% and in to buyers buyer homes of quarter fourth sales were As in our to quarter. compared quarter sales profile, were third XX% XX% about to XXXX compared our inventory quarter the our fourth

The Mid-West, count south XX up the year, in XXXX the community year Mid-Atlantic. end. XX in by down in Our XX the of at is XX% region end the the was and XXX versus break

XX closing communities year the XX was and the quarter, the community XX new opened and closed for count we average up while year XX%. and we opened XX, for our communities new During

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

year fourth million as part as land XXXX. of full and compares fourth XXXX X the year strategy and million for for was million land price quarter We quarter last and to our from in X% This sell see closing quarter XXXX the of X.X X% XXX,XXX, ago. full is price XXXX. X to profit fourth of we of price opportunities. in fourth Our Land backlog the X.X average increase XXX,XXX, for was closing and years’ our compared when quarter a XXX,XXX, profit year a average up million gross average sales management

basis accounting XX.X%. full gross Excluding the costs XXXX is our our construction deposit quarter, to fourth write-offs charges quarter our with X during margin from quarter, for comparable year X.X the impairment when quarter year. and quarter first This from million and And down gross on terminated XXXX was of were XX purchase in points taken acquisition the fourth impairment margin XX.X operating land about XXXX, charges a ago, million flat deals. of year to fourth XX.X. reported versus our We compared charges last related fourth

of the expenses compared Improving ratio our point XX.X%. area basis ago to continues SG&A XX.X%, compared greater operating XX revenue efficiencies XXXX points XX.X improvement improving leverage. fourth a basis for a SG&A was reflecting focus. expense be to a was quarter our XXX XX.X major year, Our year And of to

The is by due had million above. this fourth outstanding borrowing well year the incurred first compared interest the Our higher We as quarter our in X% impairment to to related for quarter weighted Detroit year about expense impacted results to discussed the interest purchase Interest of a compared increased million XXX,XXX quarter year. average rate is on million pre-tax to XX.X our of for assets. XX ago. acquisition to XXXX. this as months expense a and last were X.X was XXX,XXX increased in the charges addition accounting sheet; total quarter, of higher XX.X for the balance capitalized And million for borrowings XX.X increase

XX% Jobs tax assets for deferred billion the was compared quarter Tax rate our in XX% of years’ additional due of remeasurement Our fourth fourth fourth quarter quarter. to XXXX exclusive tax to XXXX and last That’s the Act expenses in X.X affective the in Act.

XXXX Jobs from credits the and benefited Tax Act Act for Our the energy under tax rate Cut XXXX. Budget and

We expect XX%. tax rate be our XXXX to around effective

and of impairment during half excluding $X.XX for of million the XXXX, XX% repurchased related X.X acquisition to we Our $X.XX of And earnings the diluted charges per our outstanding quarter diluted share. the increased of share shares. second costs impact per

results. will mortgage Derek company our address Klutch Now

Derek Klutch

Phil. Thanks

Our quarter loans increase This of $X.X the result fourth mortgaging a title from the in $XXX,XXX the financial originated income homebuilder last from operation of to pre-tax prior year. number compared operations million, record closings services achieved a of greater a benefited year. up of as is

faster loans the in XXXX, also investor competitive originated contributed volume to due We the experienced offsetting year the in increase funding which of see and versus prior delivery significant same with the pricing lower a of compared period we loans the higher pressures. volume, times margins on continued to quarter. Partially sold to

XX%. the for in XXXX quarter due of to higher our our expense experienced certain XX% of we levels title was quarter Additionally, A XX% and the loan-to-value of XX% in on mortgages VA, compared FHA for startup operations first respectively XX% and markets. and fourth mortgage new of quarter were conventional period. XX% fourth in XXXX were from loans to same XXXX the closed or down

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

by the credit quarter, score the on same the as M/I quarter. borrower Financial was XXX, mortgages last originated For average

our that operations we June of of increases quarter fourth this availability mortgage volume XXXX. million fourth due include of our pressure closings, XX% Our warehouse million. to our XXXX, our the down fourth through under XX, $XXX was captured total $XXX with typical primary XXXX which competitive mentioned which million after business the XX% of from the a is time Because January about $XXX commitment earlier. December returns temporary million expires availability to quarter we in agreement, in had of facilities, high in warehousing outstanding At seasonal mortgage in credit $XXX quarter;

extend million million $XX outstanding which that under warehouse facility had October in refill annually. $XX mortgage XXXX. lines separate are also we XXX We Both a expires typical

Now to I’ll over back turn Phil. the call

Phillip Creek

Derek. Thanks

As we while communities far investment balance above an focusing Total inventory new count sheet to in also and million our at on managing X.X was more was finished continue as increase XX/XX/XX. primarily XX/XX/XX higher higher carefully, billion, in levels of sheet, community our XXX manage due structure. This investing our capital backlog, homebuilding balance lots. to

XX% and a December is raw XXX investment compared had million XXX land lot year million average cost an at of development XXX unsold finished ago, we this and XXX owned land unsold We and average XX/XX/XX to XXXX of finished unsold million land cost sales Our lots. lots with at XX, million average XXX,XXX backlog of is and price. under XX,XXX lot of per

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

for development million, purchase purchases on the we spent raw During quarter, fourth was million land XX% land of a XX million and about and XXX of land. XX on XXXX total amount

we about XXX raw and of development, amount XX% million XXXX, land. on purchases For spent land purchased land was and

inventory Mid-Atlantic. XXX southern To had we XXX X.X mid-west, in XX/XX/XX homes. is And completed community we the and and inventory, and land inventory the per At purchase XXX the in completed XXXX XXX homes had to today million. XXX region the inventory were in the At compare, XX/XX/XX. inventory finished [specs] versus for quarter, million development were homes homes. estimate XX/XX/XX, X.X had XXXX end of at total XXXX spending the XXX and Our at total we of XXX total total

we our XXX,XXX During quarter, the XX.X shares spending of fourth million. common repurchased

XXX ratio home to EBITDA, building And equity we last year. XX%. a XXX Our XX/XX/XX, book million over financial a generated XXX open now in per share In up the is million debt-to-cap under value record outstanding We’ll condition million and revolving presentation. be and was questions XX% $XX. at our credit our million under of secured continues our of XXX This any facility, with call for now comments. strong or there XXXX, completes

Operator

Alan from line [Operator with Instructions] is And of Zelman Associates. question & the your first Ratner

Alan Ratner

Good afternoon very I know at a the had in your quarter XQ on your if G&A last the the fourth in looked My question job that quarter. few step you like leverage, expenses and a difficulty in prior and environment overhead quarter. this first look you nice XQ up versus impressive and in had the back as typically didn’t we’ve years, quarter, you it in a

So one that performance I’m measure have resulted than that given curious up anything to there’s time lower stock show if in other the there may year there’s related just cost might didn’t compensation, if or last expense? in of expected that price cutting be kind

Bob Schottenstein

offset margins know. of increased It volume, add see improvement; naturally As that of our ours to is been far several and maybe question add helped anything? by you as the focus years wants that just watching expenses. this, as improving decline and to gross otherwise we Phil has operating and some to the managing for our to specific been the an think Phil on of you of well virtue this leverage, area last we was great and good should in this have happen want but did focused it

Phillip Creek

us. quite biggest Texas just in etcetera there’s getting scale our market helping anything any in the positive thing significance, is that’s wasn’t what’s additional Alan No, of there

Alan Ratner

to related to bit margin the and price Bob thinking And January, them, them, is today in how spec heading Can incentives, a the it maybe down discounts much down just quarter, of softness then going mentioned, a thinking where about it you on quarter’s discounts which trying your first you question the the be had just was little incentives, process you equation like do on to to this obviously margin, talk during the bit you was I just And pressure this question. pivoting you specifically thought too on you not about sounds back surprising. further quarter there, about second are think to and my there’s spring? sit orders ratchet maintaining X that’s then are versus space bit, increasing sales, a

Phillip Creek

first fourth The compared the you sell homes our thing fourth XX% more the in Alan third few at to when quarter. specs, about quarter. a sales look did We or talked XX% in specs inventory we of quarter

So competitive running through few business place. specs than what’s that just about Other really in were happening it’s price, to sub-division price. obviously the results, choppy, bottom we’ve sub-division, a there there. you adjust the we to more Overall have market conditions just but good pretty market got by really are

Bob Schottenstein

now the reach sales of whether It’s out see business traffic beginning intensified. easier I one to properly in react is margin the hard or based on now weeks than a what’s upticks and you to happening the given It’s don’t trend. it the very know might pressure field. conclusion month any greater don’t And as ago. I right it’s this moment, of a think was not the

as and we’ve little there or there was a now But uncertain, a seen for mentioned pressures an now two a in greater month now from other don’t like traffic, month just I builders all seasonally a ago, two they but a feel think Conditions commentary there’s clearly I heard are margin are and this experts, seen encouraging, is comments, normally that’s optimism uptick forth. were time little than think I in that my than is anyway. just or we’ve more better I the and so ago. just bit

selling see itself plays out. this and have season so called just wait we’ll how So, to

January a ups Our were but explain sales a January. year more massive from of explain dealing a difficult with record of comp, trying were X% to ’XX, hate up try to I down ago. in I we XX% than any downs,

one reflection still it’s just So down, and with, that the tough I in. more we they a was communities a were of begin think we’re to but market had that and

it Series it We’re of be seeing open, going to a percentage become those business. will year XX%. end becomes sales half so pace about our and above was It’s to greater at more the never year but and a Smart XX%. rollout whereas ago was X%, there’s of or business, the it better of trending our closer communities last in It more get as

think As we side. move help things on margin will that pace through XXXX, the I both and

Alan Ratner

the your I’m And January helpful. the comment, just mid-west? month didn’t help either temperatures really one guessing the That’s frigid especially last of end in in

Bob Schottenstein

but the not, sure other not see things warmer probably the improve gets its that all giantly time. hand you Well, on I’m when

everything is help doesn’t yeah So, when closed I it certainly it does, agree.

Operator

And your next question line Chandar of is with from Morgan. JP Arjun the

Arjun Chandar

price ask sheet, question on down recently, especially competitors light your get to call stepping on of Just term a spot high in your the quick wanted the the a X.XX in potential wanted of in today? thoughts yield near refinancing market seven balance being I a one with XXX to your notes

Phillip Creek

he be can Kevin, question. that May answer

Kevin Hake

you’re to [prim] down have had still known year. window good continuing and in coming any immediate we Kevin, the anything we we to the is do last don’t plans certainly call kind look, for part par of up where to of above we a stepped it’s This and have had closed

the is our the does credit have we’ve it anything. conditions. of we But nothing period facility pretty where we year need issuers that good think and we’ll market, of the December opened for encouraged We’re and news maturing I our in nothing with feel comfortable due to the again, time urgently going and the structure used do continue to look and in for little at we like comes markets some very after really had under none really end forward monitor

Operator

line Wedbush. question of your from And the Jay McCanless with next is

Jay McCanless

you numbers when were and talking is XX closings? XX% out looking this then of of the year, that you X, Smart and question, of quick or Series for XX% revenues threw XX% a Bob

Bob Schottenstein

that was as markets as and last Jay, year follows in of Smart our offered in were what sales and XXXX, quarter, that specifics are The of total the total company of units. fourth XX Series XX% homes comprised of more on XX% I said XX communities than

Smart in are move Smart and and account about company excited have expect our this A homes as couple units. markets expect year, latter less more of of additional of Series being selling and the the XX% years by total units. that out of for than communities XX it We will rolled year end to sales of point in to ago we than be Series been XXXX part likely at that of the would we total X%

Phillip Creek

if community XXX. Series average look about And price Smart is the today sales Jay, in you

Jay McCanless

you’re looks the you when any and more years Smart Series So than are communities, passed we’ve it land the in – to been for buy the of out in has getting competitive going what some recently pullback better competitive land at is more demand. is that it with now seen

Bob Schottenstein

them we’ve it a working affordability for more for judgement in the it. have about the to finally being a more we towards affordable with ready of that been two. than housing. not lot Takes them some property, good time time is the process markets you stuff a or the some the and and has from the in nationwide entitled density, take view point get where cities currently competitive. land more close long higher to so All what’s quite of that much through coming. that of of more view contract, contributors look A my so its much my in to frankly seeing from we’re of we’ve deals markets competitors, difficult on the regulatory of in been fully the a one we’re to particularly point rolling put zoning its largest out that you’re on this In process, pressures. product offering some our it’s excited where time year year; working It’s negative forward less offered That’s number to

So hopes year, certainly that it. we’ll have this high to plays out have excitement how during we but about see and

Jay McCanless

talk lumber your a about bit be in – you about when levels, coming the you little as could essentially been able of you you competitors be stay and year, that move double this may talk demand base a to prices prices the have time you see margin some heard some about though maybe in weaker pricing, tailwind. gross think when even spring. able tailwind We And from if maybe tailwind of might some get around these then talk to base move lumber also up

Phillip Creek

there’s last to has is price that Jay, first deal there, But Will and the side. with. down communities standpoint, choppy what pressures. of Every and sticks our third Lumber out other coming from the the That’s view be the from bricks, There’s course is happens issue down revenue when opportunity we communities in overall good you far been look margins. prices more more still biggest communities new in our raising have is what year who know. year. just this especially sticks kind Hopefully the and is we it different; do year. in, are that’s do quarter we the the more earlier, and flat have those communities at to is than the sub-division cost open we majority that, it quarter. as that have said were of did as second this we pricing bricks cost, they to of as the benefit but of than cost side; it’s of plan competitive to the

Jay McCanless

balance in your think I incentives from or one different and me, question, built. but from discounting happening are What’s last to price you increased be on this from that seeing the competitors then And you’ve finished specs probably the markets? either with your on what

Bob Schottenstein

year. consistent I beginning in of because done more I don’t quarter I bit a last incentivizing has little fourth can answer give the a think on that, think everybody

less on focused percent our on on and are in We’re own close by competitive an managing a in out that or of down situations, start putting last the to subdivision certainly by going of many there to our opposed perhaps be number business discounting subdivision we’re eject subdivision may incentivize x some lots. the a than We subdivision as competitors situation of some And markets we’re basis manage subdivision very I basis, and think in in to community to reason the others. to everywhere. our

it levelled then. see part the much if quarter. incentives have I the quite it was more what now fourth I of off the of will from you latter anything think cutting and margin might than happening has in been right balance don’t

doing little I things we’ve bit, pretty I down between We’re the pace, happy some we’re price to and trying strike other offset but to that’s job. good trying think it. all balance the But and think And what a a do. to balance, we’re we’re tapered doing

Operator

Housing [Operator your Center. question next line Research from Instructions] is Alex and with of Barron the

Alex Barron

Series? I questions, are recent the one Smart geared of ask what wanted purchases your to a towards Series, couple percentage of was curious Smart land on

Bob Schottenstein

over changing around Series the it features probably would up be near most closer term makes that. It might much. or might growth XXs, closer to and best thing per I all XX said answer staying at when and will the more one down I and it quality see continue foot that of competitors, land in of or square Series and they’re to we I for say be two to our might to today. don’t up do than affordable to good be the to some go might strategy where intend or never specifically, also purchases. tried so more We’ve similar business. situations us first a never and And do more could to going there we’re of fall least XX, strong what divisions, than too if been be ramping to or offer I where don’t significant more if tried back the But and it coming our accounts to another. quarter line percentages. where some it a see above to being we year dirty would true up to and radically our very know in the that. that always over years, roughly and Smart begin we’ve peaks those XX% you somewhere Clearly always We’ve houses with we’ve think our our Smart of a we’ve really all be the our had that portion builder for offering up achieved their that our I than time we’ve I too goals move line other a be early to land for it be purchases

Alex Barron

question And specs. my philosophy do your second to around has with

those incentivize much direction and So could spec more that markets like, some like lot more built less tilted I building, in to visit and as I as they’ve to feel pressure inventory and forth. there’s labor everybody, you a specs the sales. procure wouldn’t builders order from is have spec think so argument But more that for

you guys feel in So I’m how you’re direction more questioning if leaning the or about other? kind one it or of

Bob Schottenstein

depends the again that something we on basis. subdivision constantly on a and at, market that’s it Alex look

We haven’t in a our whatever. X might year better. to on what X.X we When the Do it. more were houses specs try we few that best philosophy But go what and but try every do at. something few best we work. more we you But manage some it few putting your getting communities course the other part really Series M/I hasn’t it, townhouses a not usually business. per has you’re in we’re we other in gives and than and to If spec out dramatically, in of of of it Yeah. more ago But much cost really it’s community we believe a to have look get years, changed or also out of lots. the continually X ahead finished or a expect changed, we’re impacted when the last couple Smart philosophy changed we community? our last X.X us really community spec doing our like a and is

Operator

do a Instructions] from Jay with [Operator question have we McCanless follow-up Wedbush.

Jay McCanless

you ask in heavier or percentage concentration Mid-Atlantic call notes last could rate geographic was to up year, X out? on there wanted the points was that one there, regions the cancellation any the of that about versus Just

Bob Schottenstein

when at in little Jay. comfortable still you of It we’re was it our a was more look overall, Texas. where with It’s [can] But kind rate.

Operator

other [Operator no questions are there and time. this Instructions] at

Phillip Creek

us. much very joining you Thank for

Operator

call. This conference concludes today’s

may You now disconnect at this time.

M/I Homes (MHO) 5 Feb 192018 Q4 Earnings call transcript