M/I Homes Reports 2021 Second Quarter Results and $100 million Share Repurchase Authorization

COLUMBUS, Ohio, July 28, 2021 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three and six months ended June 30, 2021, and a $100 million share repurchase authorization.

2021 Second Quarter Highlights:

• New contracts were 2,267, a second quarter record
• Backlog units increased 49% to 5,488, an all-time record
• Backlog sales value reached $2.5 billion, an all-time record
• Homes delivered increased 23% to 2,258, an all-time quarterly record
• Revenue increased 35% to $961.0 million, an all-time quarterly record
• Pre-tax income increased 97% to $141.3 million, an all-time quarterly record
• Net income of $107.6 million ($3.58 per diluted share), a 97% increase compared to $54.5 million ($1.89 per diluted share) in 2020
• Shareholders' equity reached an all-time record of $1.5 billion, a 34% increase from a year ago, with book value per share of $50
• Homebuilding debt to capital of 31% compared to 37% at June 30, 2020
• Return on equity improved to 27%

For the second quarter, pre-tax income increased 97% to a record $141.3 million and net income increased 97% to $107.6 million, or $3.58 per diluted share.  This compares to pre-tax income of $71.7 million and net income of $54.5 million, or $1.89 per diluted share, for the second quarter of 2020.  For the six months ended June 30, 2021, net income increased 123% to $192.5 million, or $6.43 per diluted share, compared to $86.3 million, or $2.98 per diluted share, for the same period of 2020.

Homes delivered in 2021's second quarter increased 23% to 2,258.  This compares to 1,835 homes delivered in 2020's second quarter.  Homes delivered for the six months ended June 30, 2021 increased 28% to 4,277 from 2020's deliveries of 3,330.  New contracts for the second quarter of 2021 were 2,267 compared to 2,261 in 2020.  For the first six months of 2021, new contracts increased 24% to 5,376 compared to 4,350 in 2020.  Homes in backlog at June 30, 2021 had a total sales value of $2.5 billion, a 71% increase from a year ago.  Backlog units at June 30, 2021 increased 49% to 5,488 homes, with an average sales price of $454,000.  At June 30, 2020, backlog sales value was $1.5 billion, with backlog units of 3,691 and an average sales price of $396,000.  M/I Homes had 175 active communities at June 30, 2021 compared to 220 communities at June 30, 2020.  The Company's cancellation rate was 7% in the second quarter of 2021 compared to 14% in the second quarter of 2020.

The Company also announced that its Board of Directors has approved a $100 million share repurchase authorization, replacing its existing $50 million share repurchase authorization.  From August 14, 2018 through July 27, 2021, the Company repurchased approximately 1.4 million shares for an aggregate purchase price of  $32.8 million.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had a record-setting second quarter highlighted by a 97% increase in net income, a 23% increase in homes delivered, a 35% increase in revenue, and a return on equity of 27%.  Our gross margins were very strong, improving 320 basis points over last year to 25.1% and our overhead expense ratio improved by 110 basis points to 10.4%.  As a result, our pre-tax income percentage improved to 14.7% from 10.0% in last year's second quarter.  We set all-time quarterly records in backlog units and sales value, with sales value rising to $2.5 billion – a 71% increase from a year-ago.  Demand for new homes continues to be very strong.  Despite our community count being down throughout the quarter, and significantly limiting sales in the majority of our communities, we were pleased to set a record for second quarter new contracts selling 2,267 homes.

Mr. Schottenstein continued, "We ended the quarter with record-high shareholders' equity of $1.5 billion, an increase of 34% from 2020's second quarter, book value of $50 per share, cash of $372 million, no borrowings on our $550 million credit facility, and a homebuilding debt to capital ratio of 31%. During the quarter, we also extended the maturity of our credit facility to July 2025 and raised our commitment amount to $550 million.  In addition, our Board of Directors approved a new share repurchase authorization under which the Company may purchase up to $100 million of our common shares.  This share repurchase authorization reflects the strength of our business and our commitment to creating long-term shareholder value.  We have significant operating momentum and are poised to continue delivering strong results."

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 2022.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold over 133,000 homes.  The Company's homes are marketed and sold primarily under the M/I Homes Brand.  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; and Charlotte and Raleigh, North Carolina.

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, the impact of the COVID-19 pandemic, 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 our Annual Report on Form 10-K for the year ended December 31, 2020, 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.

SOURCE M/I Homes, Inc.