M/I Homes Reports First Quarter Results

COLUMBUS, Ohio, April 28, 2011 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the first quarter ended March 31, 2011.

2011 First Quarter Results:

• Adjusted pre-tax loss from operations of $5.9 million
• Net loss of $17.0 million
• Seventh consecutive quarter of positive adjusted EBITDA
• Homes delivered down 8%
• New contracts down 15%
• Cash balance of $127 million; includes $80 million of unrestricted cash
• Net debt to net capital ratio of 33%

For the 2011 first quarter, the Company reported a net loss of $17.0 million, or $0.92 per share, compared to a net loss of $8.3 million, or $0.45 per share during the first quarter of 2010.  The current quarter loss consists of a $5.9 million adjusted pre-tax operating loss and $11.1 million of asset impairments. The prior year first quarter loss was comprised primarily of a $4.9 million adjusted pre-tax operating loss and $3.2 million of asset impairments.

New contracts and homes delivered for the first quarter of 2011 were 654 and 439, down 15% and 8%,  respectively, when compared to 2010's first quarter new contracts and homes delivered.  The Company's cancellation rate was 16% in the first quarter of 2011 compared to 18% in 2010's first quarter.  Backlog of homes at March 31, 2011 had a sales value of $188 million, with an average sales price of $252,000 and backlog units of 747.  At March 31, 2010 backlog sales value was $247 million, with an average sales price of $264,000 and backlog units of 936.  M/I Homes had 111 active communities at March 31, 2011 compared to 109 at March 31, 2010 and 110 at December 31, 2010.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "Housing conditions remained challenging during the first quarter as demand for new homes continued to be impacted by sluggish employment growth and uncertain macroeconomic conditions. Our financial results for the first quarter of 2011 are largely a reflection of our relatively low backlog level at the beginning of the year. We were pleased that we achieved a reduction in our selling, general and administrative expenses in the first quarter of 2011 compared to the year-earlier quarter, had positive cash flow from operations and generated our seventh consecutive quarter of positive adjusted EBITDA.  We ended the quarter with $127 million of cash, no outstanding borrowings under our $140 million homebuilding credit facility, and a 33% net debt to net capital ratio. We opened 12 new communities during the quarter and continue to be encouraged by their contribution level.  We also continued to diversify our geographic footprint by further expanding our presence in Texas via our previously announced acquisition of the assets of San Antonio based TriStone Homes. While we believe 2011 housing conditions will remain challenging, we are confident in our strategy and market position."

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 April 2012.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 78,500 homes. The Company's homes are marketed and sold under the trade names M/I Home, Showcase Homes and TriStone Homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Chicago, Illinois; Indianapolis, Indiana; Tampa and Orlando, Florida; Charlotte and Raleigh, North Carolina; the Virginia and Maryland suburbs of Washington, D.C.; Houston and San Antonio, Texas.

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 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 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 in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, 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 in this Press Release will increase with the passage of time. The Company undertakes 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.

In this press release, we use the following non-GAAP financial measures:  adjusted operating gross margin, adjusted operating gross margin percentage, adjusted pre-tax loss from operations, adjusted EBITDA and adjusted cash flow provided by operating activities. For these measures, we have provided reconciliations to the most comparable GAAP measures along with an explanation of the usefulness of the non-GAAP measure. Please see the "Non-GAAP Financial Results / Reconciliations" table.

Adjusted operating gross margin, adjusted operating gross margins %, adjusted pre-tax loss from operations, adjusted EBITDA and adjusted cash flows provided by operating activities are non-GAAP financial measures. Management finds these measures to be useful in evaluating the Company's performance because they disclose the financial results generated from homes the Company actually delivered during the period, as the asset impairments and certain other write-offs relate, in part, to inventory that was not delivered during the period. They also assist the Company's management in making strategic decisions regarding the Company's future operations. The Company believes investors will also find these measures to be important and useful because they disclose financial  measures that can be compared to a prior period without regard to the variability of asset impairments and certain other write-offs and unusual charges. In addition, to the extent that the Company's competitors provide similar information, disclosure of these measures helps readers of the Company's financial statements compare the Company's financial results to the results of its competitors with regard to the homes they deliver in the same period. Because these measures are not calculated in accordance with GAAP, they may not be completely comparable to similarly titled measures of the Company's competitors due to potential differences in methods of calculation and charges being excluded.  Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP.  Adjusted EBITDA is also presented in accordance with the terms of our revolving credit facility.

SOURCE M/I Homes, Inc.