M/I Homes Reports 2015 Second Quarter Results

COLUMBUS, Ohio, July 23, 2015 /PRNewswire/ -- M/I Homes, Inc. MHO announced results for the second quarter and six months ended June 30, 2015.

2015 Second Quarter Highlights:

• Pre-tax income of $21.9 million - a 43% increase over 2014's second quarter
• Revenue increased 15% to $323 million; average closing price increased 11%
• Gross margin of 21.8%, up 60 basis points from 2014's second quarter
• Net income of $13.4 million ($0.43 per diluted share)
• New contracts increased 8%; homes delivered increased 3%
• Backlog sales value increased 20%

For the second quarter of 2015, the Company reported net income of $13.4 million, or $0.43 per diluted share.  This compares to net income of $9.6 million, or $0.31 per diluted share, for the second quarter of 2014 excluding the reversal of $4.0 million of the Company's state deferred tax asset valuation allowance.  For the six months ended June 30, 2015, the Company reported net income of $22.9 million, or $0.74 per diluted share, compared to net income of $16.9 million, or $0.54 per diluted share, in the same period of 2014, excluding the reversal of $9.3 million of the Company's state deferred tax asset valuation allowance.

Homes delivered in 2015's second quarter were 919 compared to 894 deliveries in 2014's second quarter - a 3% increase.  Homes delivered for the six months ended June 30, 2015 were 1,636 compared to 2014's deliveries of 1,631.  New contracts for 2015's second quarter were 1,100, an increase of 8% from 2014's second quarter.  For the first six months of 2015, new contracts increased 11% from 1,998 in 2014 to 2,208 in 2015.  M/I Homes had 155 active communities at June 30, 2015 compared to 145 at June 30, 2014 and 150 at December 31, 2014.  The Company's cancellation rate was 14% in the second quarter of 2015 compared to 15% in 2014's second quarter.  Homes in backlog increased 9% at June 30, 2015 to 1,794 units, with a sales value of $657 million (a 20% increase over last year's second quarter), and an average sales price increase of 10% to a record high of $366,000.  At June 30, 2014, the sales value of homes in backlog was $546 million, with an average sales price of $332,000 and backlog units of 1,647.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had another strong quarter highlighted by a 43% increase in pre-tax income, an 8% increase in  new contracts, and a 20% increase in our backlog sales value.  Several factors contributed to our improved profitability, including an 11% increase in our average closing price, a 60 basis point improvement in our gross margin, and better operating leverage reflected in a 90 basis point decline in our overhead expense ratio.  Our backlog sales value of $657 million includes a backlog average sales price of $366,000 - a record high for our Company."

Mr. Schottenstein continued, "We were pleased to open 28 new communities in the first half of 2015 and are on track to increase our community count by 15% in 2015. Looking ahead, with the strength of our backlog and planned new community openings, we are poised to have a very solid 2015.  We remain focused on improving profitability, growing our market share, and investing in attractive land opportunities."

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 July 2016.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 92,000 homes. The Company's homes are marketed and sold under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes).  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Tampa and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

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," "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 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, 2014, 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.

 

 

 

 

 

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mi-homes-reports-2015-second-quarter-results-300117734.html

SOURCE M/I Homes, Inc.