M/I Homes Reports Fourth Quarter and Year-End Results
Rhea-AI Summary
M/I Homes (NYSE:MHO) reported record-breaking results for Q4 and full-year 2024. The company achieved significant growth with Q4 net income rising 27% to $133.5 million ($4.71 per share) and full-year net income increasing 21% to $563.7 million ($19.71 per share).
Key highlights include: Q4 home deliveries up 19% to 2,402 units; full-year deliveries increased 12% to 9,055 units; Q4 revenue grew 24% to $1.2 billion; and annual revenue rose 12% to $4.5 billion. The company maintained strong financial health with shareholders' equity reaching $2.9 billion, a book value of $109 per share, and a homebuilding debt to capital ratio of 19%.
The company repurchased $50 million of stock in Q4 and $176 million throughout 2024. While new contracts increased 8% annually to 8,584, homes in backlog decreased 16% to 2,531 units with a sales value of $1.4 billion, though the average sales price in backlog rose 5% to $553,000.
Positive
- Q4 net income increased 27% to $133.5 million
- Full-year revenue grew 12% to $4.5 billion
- Record quarterly home deliveries up 19% to 2,402 units
- Strong financial position with $822 million cash and zero credit facility borrowings
- Book value per share reached record $109
- Gross margins improved to 26.6% from 25.3%
- Return on equity of 21%
Negative
- Homes in backlog decreased 16% to 2,531 units
- Backlog sales value declined 11% to $1.4 billion
- Slight increase in cancellation rate to 14% from 13% YoY
Insights
M/I Homes' Q4 and full-year 2024 results demonstrate remarkable operational execution and financial strength. The
The
The company's fortress balance sheet, with
The low
2024 Fourth Quarter Results:
- Record fourth quarter homes delivered and income
- New contracts increased
11% to 1,759 - Homes delivered increased
19% to 2,402 - Revenue of
$1.2 billion 24% - Pre-tax income of
$171 million 24% - Net income increased
27% to$133.5 million $4.71 $105 million $3.66 - Repurchased
$50 million
2024 Full Year Results:
- Record homes delivered, revenue and income
- New contracts increased
8% to 8,584 - Homes delivered increased
12% to 9,055 - Revenue increased
12% to$4.5 billion - Pre-tax income increased
21% to$734 million 16% of revenue - Net income increased
21% to$564 million $19.71 - Shareholders' equity reached an all-time record of
$2.9 billion 17% increase from a year ago, with book value per share of$109 - Repurchased
$176 million - Return on equity of
21% - Homebuilding debt to capital ratio of
19% compared to22% at December 31, 2023
For the fourth quarter of 2024, the Company reported net income of
Homes delivered in 2024's fourth quarter reached an all-time quarterly record of 2,402, a
Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had an outstanding 2024 highlighted by all-time records in homes delivered, revenue and income. Our homes delivered increased
Mr. Schottenstein continued, "We are in excellent financial condition. We ended the year with record shareholders' equity of
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 January 2026.
M/I Homes, Inc. is one of the nation's leading homebuilders of single-family homes. The Company has homebuilding operations in
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, 2023, 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.
M/I Homes, Inc. and Subsidiaries Summary Statement of Income (Unaudited) (Dollars and shares in thousands, except per share amounts) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
New contracts | 1,759 | 1,588 | 8,584 | 7,977 | |||
Average community count | 219 | 209 | 216 | 202 | |||
Cancellation rate | 14 % | 13 % | 10 % | 11 % | |||
Backlog units | 2,531 | 3,002 | 2,531 | 3,002 | |||
Backlog sales value | |||||||
Homes delivered | 2,402 | 2,019 | 9,055 | 8,112 | |||
Average home closing price | $ 490 | $ 471 | $ 483 | $ 483 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ 950,872 | ||||||
Land revenue | 882 | 2,025 | 12,635 | 25,301 | |||
Total homebuilding revenue | $ 952,897 | ||||||
Financial services revenue | 28,512 | 19,691 | 116,206 | 93,829 | |||
Total revenue | $ 972,588 | ||||||
Cost of sales - operations | 908,452 | 728,202 | 3,305,781 | 3,014,573 | |||
Gross margin | $ 296,825 | $ 244,386 | |||||
General and administrative expense | 70,059 | 60,284 | 258,422 | 222,765 | |||
Selling expense | 62,775 | 54,256 | 234,373 | 208,942 | |||
Operating income | $ 163,991 | $ 129,846 | $ 706,094 | $ 587,222 | |||
Other loss (income) | — | 1 | — | (33) | |||
Interest income, net of interest expense | (6,566) | (8,129) | (27,514) | (20,022) | |||
Income before income taxes | $ 170,557 | $ 137,974 | $ 733,608 | $ 607,277 | |||
Provision for income taxes | 37,088 | 32,692 | 169,883 | 141,912 | |||
Net income | $ 133,469 | $ 105,282 | $ 563,725 | $ 465,365 | |||
Earnings per share: | |||||||
Basic | $ 4.85 | $ 3.79 | $ 20.29 | $ 16.76 | |||
Diluted | $ 4.71 | $ 3.66 | $ 19.71 | $ 16.21 | |||
Weighted average shares outstanding: | |||||||
Basic | 27,538 | 27,769 | 27,777 | 27,769 | |||
Diluted | 28,308 | 28,756 | 28,600 | 28,716 | |||
M/I Homes, Inc. and Subsidiaries Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) | |||
As of | |||
December 31, | |||
2024 | 2023 | ||
Assets: | |||
Total cash, cash equivalents and restricted cash | $ 821,570 | $ 732,804 | |
Mortgage loans held for sale | 283,540 | 176,329 | |
Inventory: | |||
Lots, land and land development | 1,630,190 | 1,446,576 | |
Land held for sale | 7,699 | 6,932 | |
Homes under construction | 1,271,626 | 1,177,101 | |
Other inventory | 182,347 | 166,542 | |
Total Inventory | $ 3,091,862 | $ 2,797,151 | |
Property and equipment - net | 34,513 | 34,918 | |
Operating lease right-of-use assets | 53,895 | 56,364 | |
Goodwill | 16,400 | 16,400 | |
Investments in joint venture arrangements | 65,334 | 44,011 | |
Deferred income tax asset | 13,451 | 16,094 | |
Other assets | 169,231 | 148,369 | |
Total Assets | $ 4,549,796 | $ 4,022,440 | |
Liabilities: | |||
Debt - Homebuilding Operations: | |||
Senior notes due 2028 - net | 397,653 | 396,879 | |
Senior notes due 2030 - net | 297,369 | 296,865 | |
Total Debt - Homebuilding Operations | $ 695,022 | $ 693,744 | |
Notes payable bank - financial services operations | 286,159 | 165,844 | |
Total Debt | $ 981,181 | $ 859,588 | |
Accounts payable | 198,579 | 204,678 | |
Operating lease liabilities | 55,365 | 57,566 | |
Other liabilities | 374,994 | 383,669 | |
Total Liabilities | $ 1,610,119 | $ 1,505,501 | |
Shareholders' Equity | 2,939,677 | 2,516,939 | |
Total Liabilities and Shareholders' Equity | $ 4,549,796 | $ 4,022,440 | |
Book value per common share | $ 108.62 | $ 90.66 | |
Homebuilding debt / capital ratio(1) | 19 % | 22 % | |
(1) | 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 (Dollars in thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash provided by operating activities | $ 104,395 | $ 54,901 | $ 179,736 | $ 552,131 | |||
Cash used in investing activities | $ (9,859) | $ (4,500) | $ (54,896) | $ (18,632) | |||
Cash provided by (used in) financing activities | $ 7,114 | $ (53,849) | $ (36,074) | $ (112,237) | |||
Land/lot purchases | $ 107,384 | $ 95,930 | $ 472,937 | $ 343,504 | |||
Land development spending | $ 201,301 | $ 159,550 | $ 645,960 | $ 512,105 | |||
Land sale revenue | $ 882 | $ 2,025 | $ 12,635 | $ 25,301 | |||
Land sale gross profit | $ 391 | $ 356 | $ 3,709 | $ 3,360 | |||
Financial services pre-tax income | $ 10,034 | $ 4,676 | $ 49,682 | $ 38,354 | |||
M/I Homes, Inc. and Subsidiaries Non-GAAP Financial Results (1) (Dollars in thousands) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income | $ 133,469 | $ 105,282 | $ 563,725 | $ 465,365 | |||
Add: | |||||||
Provision for income taxes | 37,088 | 32,692 | 169,883 | 141,912 | |||
Interest income - net | (10,177) | (10,908) | (40,719) | (30,030) | |||
Interest amortized to cost of sales | 8,181 | 7,724 | 32,053 | 33,326 | |||
Depreciation and amortization | 4,810 | 4,479 | 18,700 | 17,369 | |||
Non-cash charges | 9,709 | 13,241 | 23,808 | 20,247 | |||
Adjusted EBITDA | $ 183,080 | $ 152,510 | $ 767,450 | $ 648,189 | |||
(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 | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
% | % | |||||||||||
Region | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Northern | 707 | 699 | 1 % | 3,761 | 3,361 | 12 % | ||||||
Southern | 1,052 | 889 | 18 % | 4,823 | 4,616 | 4 % | ||||||
Total | 1,759 | 1,588 | 11 % | 8,584 | 7,977 | 8 % | ||||||
HOMES DELIVERED | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
% | % | |||||||||||
Region | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||
Northern | 1,064 | 848 | 25 % | 3,873 | 3,169 | 22 % | ||||||
Southern | 1,338 | 1,171 | 14 % | 5,182 | 4,943 | 5 % | ||||||
Total | 2,402 | 2,019 | 19 % | 9,055 | 8,112 | 12 % | ||||||
BACKLOG | ||||||||||||
December 31, 2024 | December 31, 2023 | |||||||||||
Dollars | Average | Dollars | Average | |||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | ||||||
Northern | 1,136 | $ 637 | $ 561,000 | 1,248 | $ 663 | $ 531,000 | ||||||
Southern | 1,395 | $ 763 | $ 547,000 | 1,754 | $ 912 | $ 520,000 | ||||||
Total | 2,531 | $ 1,400 | $ 553,000 | 3,002 | $ 1,576 | $ 525,000 | ||||||
LAND POSITION SUMMARY | ||||||||||||
December 31, 2024 | December 31, 2023 | |||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||
Northern | 6,546 | 11,076 | 17,622 | 6,852 | 8,935 | 15,787 | ||||||
Southern | 17,290 | 17,244 | 34,534 | 17,522 | 12,351 | 29,873 | ||||||
Total | 23,836 | 28,320 | 52,156 | 24,374 | 21,286 | 45,660 | ||||||
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SOURCE M/I Homes, Inc.
FAQ
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