M/I Schottenstein Homes Reports Record Earnings

Apr 19, 2001, 01:00 ET from M/I Schottenstein Homes, Inc.

    COLUMBUS, Ohio, April 19 /PRNewswire/ -- M/I Schottenstein Homes, Inc.
 (NYSE:   MHO) reports record financial results for the first quarter ended
 March 31, 2001.
     Net income of $12,244,000 for 2001's first quarter, a 48% increase over
 2000's first quarter net income of $8,279,000, represents a record level for
 this period in the Company's 25-year history.  Diluted earnings per share of
 $1.58 increased 58% over 2000's first quarter diluted earnings per share of
 $1.00.  Record high levels were also reported for New Contracts, Homes
 Delivered and Backlog.
     Irving E. Schottenstein, Chief Executive Officer, commented, "We are
 thrilled with our record 2001 first quarter performance.  Our March New
 Contracts were the highest month ever recorded and our focus on customer
 service and profitability continues to serve us well.  Our Company's financial
 strength is improving steadily, with Stockholders' Equity exceeding
 $242,000,000, and book value per share at $32.10 at quarter end."
     Robert H. Schottenstein, President, added, "Our business is running more
 efficiently than ever, with gross margins of nearly 23% and operating margins
 exceeding 10%.  With our backlog at March 31, 2001 reaching $625,000,000, we
 anticipate 2001 full year results being the best ever for M/I Homes.  We
 believe that our diluted earnings per share for 2001 will be approximately
 $6.50, a meaningful increase to our previously forecasted estimate of $6.00."
     Effective January 1, 2001, the Company adopted SFAS No. 133, "Accounting
 for Derivative Instruments and Hedging Activities," which resulted in income
 of $2,681,000, net of tax, in the first quarter.  This pronouncement affected
 M/I's mortgage operations and effectively required recording the value of
 certain loan commitments and forward sales of mortgage backed securities in
 the first quarter.  The Company estimates that $1,426,000 of the $2,681,000
 would have been recorded in the first quarter had the new pronouncement not
 been adopted.
     M/I recorded new contracts for the first three months of 2001 of 1,376, up
 24% from the 1,106 units recorded in the same period of 2000.  Homes Delivered
 were 777 for the first quarter of 2001.  This represents a 5% increase over
 2000's first quarter record level deliveries of 743.  The Backlog at March 31,
 2001 consisted of 2,710 homes with a record sales value of $625,000,000.  At
 the end of the first quarter of 2000, the backlog totaled 2,517 units with a
 sales value of $571,000,000.  The average sales price of homes in backlog was
 a record $230,000 at March 31, 2001, compared to $227,000 at March 31, 2000.
     The Company will be holding its first quarter earnings conference call at
 4:00 pm (EDT) today, Thursday, April 19th.  The call can be accessed live
 through the Investor Relations section of M/I Homes' website
 ( www.mihomes.com ). The call will also be available on the website through
 April 27th.
     M/I Schottenstein Homes, Inc. is one of the nation's leading builders of
 single-family homes, having sold over 45,000 homes.  The Company's homes are
 marketed and sold under the trade names Horizon, M/I Homes and Showcase Homes.
 The Company has homebuilding operations in Columbus and Cincinnati, Ohio;
 Indianapolis, Indiana; Tampa, Orlando and Palm Beach County, Florida;
 Charlotte and Raleigh, North Carolina; Virginia; Maryland; and Phoenix,
 Arizona.
     Certain statements in this Press Release are forward looking statements
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such statements involve known and unknown risks, uncertainties and other
 factors that may cause actual results to differ materially.  Such risks,
 uncertainties and other factors include, but are not limited to, changes in
 general economic conditions, fluctuations in interest rates, increases in raw
 materials and labor costs, levels of competition, and other factors discussed
 in the Company's Form 10-K.
 
 
                 M/I Schottenstein Homes, Inc. and Subsidiaries
                       Consolidated Statements of Income
                    (In thousands, except per share amounts)
 
                                                       Three Months Ended
                                                            March 31,
                                                       2001           2000
                                                           (unaudited)
 
     Revenue                                         $178,155       $173,856
 
     Income before cumulative effect of
       change in accounting principle                   9,563          8,279
 
     Cumulative effect of change in accounting
       principle, net of income taxes                   2,681             --
 
     Net income                                        12,244          8,279
 
     Earnings per share - basic:
       Income before cumulative effect
         of change in accounting principle               1.27           1.01
 
     Cumulative effect of change in accounting
       principle, net of income taxes                    0.36             --
 
     Net income                                          1.63           1.01
 
     Earnings per share - diluted:
       Income before cumulative effect of
         change in accounting principle                  1.23           1.00
 
     Cumulative effect of change in accounting
       principle, net of income taxes                    0.35             --
 
     Net income                                         $1.58          $1.00
 
     Weighted average shares outstanding:
       Basic                                            7,513          8,176
       Diluted                                          7,756          8,302
 
 
                 M/I Schottenstein Homes, Inc. and Subsidiaries
               Selected Supplemental Financial and Operating Data
                (Dollars in thousands, except per share amounts)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
                                                            (unaudited)
 
     Revenue                                         $178,155       $173,856
     Gross margin                                      40,733         38,021
     General and administrative expense                 9,666          8,929
     Selling expense                                   12,373         11,392
     Operating income                                  18,694         17,700
     Interest expense                                   3,115          4,184
     Income before income taxes                        15,579         13,516
     Income taxes                                       6,016          5,237
       Income before cumulative effect of change
         in accounting principle                        9,563          8,279
       Cumulative effect of change in accounting
         principle, net of income taxes                 2,681             --
 
       Net income                                     $12,244         $8,279
 
     Additional Information:
     Land and lot sales                                $4,530         $4,759
     Land and lot margin                                  438            535
     Financial services revenue                         5,387          5,180
     Financial services operating income               $3,808         $3,758
 
     Units:
     New contracts                                      1,376          1,106
     Homes delivered                                      777            743
     Backlog, end of period                             2,710          2,517
 
     Backlog:
     Aggregate sales value                           $625,000       $571,000
     Average sales price                                 $230           $227
 
                                                            March 31,
                                                       2001           2000
     Balance Sheet:
     Homebuilding inventory                          $482,316       $472,002
     Homebuilding debt                                212,675        242,903
     Shareholders' equity                             242,037        205,256
     Book value per share                             $ 32.10         $25.51
 
 

SOURCE M/I Schottenstein Homes, Inc.
    COLUMBUS, Ohio, April 19 /PRNewswire/ -- M/I Schottenstein Homes, Inc.
 (NYSE:   MHO) reports record financial results for the first quarter ended
 March 31, 2001.
     Net income of $12,244,000 for 2001's first quarter, a 48% increase over
 2000's first quarter net income of $8,279,000, represents a record level for
 this period in the Company's 25-year history.  Diluted earnings per share of
 $1.58 increased 58% over 2000's first quarter diluted earnings per share of
 $1.00.  Record high levels were also reported for New Contracts, Homes
 Delivered and Backlog.
     Irving E. Schottenstein, Chief Executive Officer, commented, "We are
 thrilled with our record 2001 first quarter performance.  Our March New
 Contracts were the highest month ever recorded and our focus on customer
 service and profitability continues to serve us well.  Our Company's financial
 strength is improving steadily, with Stockholders' Equity exceeding
 $242,000,000, and book value per share at $32.10 at quarter end."
     Robert H. Schottenstein, President, added, "Our business is running more
 efficiently than ever, with gross margins of nearly 23% and operating margins
 exceeding 10%.  With our backlog at March 31, 2001 reaching $625,000,000, we
 anticipate 2001 full year results being the best ever for M/I Homes.  We
 believe that our diluted earnings per share for 2001 will be approximately
 $6.50, a meaningful increase to our previously forecasted estimate of $6.00."
     Effective January 1, 2001, the Company adopted SFAS No. 133, "Accounting
 for Derivative Instruments and Hedging Activities," which resulted in income
 of $2,681,000, net of tax, in the first quarter.  This pronouncement affected
 M/I's mortgage operations and effectively required recording the value of
 certain loan commitments and forward sales of mortgage backed securities in
 the first quarter.  The Company estimates that $1,426,000 of the $2,681,000
 would have been recorded in the first quarter had the new pronouncement not
 been adopted.
     M/I recorded new contracts for the first three months of 2001 of 1,376, up
 24% from the 1,106 units recorded in the same period of 2000.  Homes Delivered
 were 777 for the first quarter of 2001.  This represents a 5% increase over
 2000's first quarter record level deliveries of 743.  The Backlog at March 31,
 2001 consisted of 2,710 homes with a record sales value of $625,000,000.  At
 the end of the first quarter of 2000, the backlog totaled 2,517 units with a
 sales value of $571,000,000.  The average sales price of homes in backlog was
 a record $230,000 at March 31, 2001, compared to $227,000 at March 31, 2000.
     The Company will be holding its first quarter earnings conference call at
 4:00 pm (EDT) today, Thursday, April 19th.  The call can be accessed live
 through the Investor Relations section of M/I Homes' website
 ( www.mihomes.com ). The call will also be available on the website through
 April 27th.
     M/I Schottenstein Homes, Inc. is one of the nation's leading builders of
 single-family homes, having sold over 45,000 homes.  The Company's homes are
 marketed and sold under the trade names Horizon, M/I Homes and Showcase Homes.
 The Company has homebuilding operations in Columbus and Cincinnati, Ohio;
 Indianapolis, Indiana; Tampa, Orlando and Palm Beach County, Florida;
 Charlotte and Raleigh, North Carolina; Virginia; Maryland; and Phoenix,
 Arizona.
     Certain statements in this Press Release are forward looking statements
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such statements involve known and unknown risks, uncertainties and other
 factors that may cause actual results to differ materially.  Such risks,
 uncertainties and other factors include, but are not limited to, changes in
 general economic conditions, fluctuations in interest rates, increases in raw
 materials and labor costs, levels of competition, and other factors discussed
 in the Company's Form 10-K.
 
 
                 M/I Schottenstein Homes, Inc. and Subsidiaries
                       Consolidated Statements of Income
                    (In thousands, except per share amounts)
 
                                                       Three Months Ended
                                                            March 31,
                                                       2001           2000
                                                           (unaudited)
 
     Revenue                                         $178,155       $173,856
 
     Income before cumulative effect of
       change in accounting principle                   9,563          8,279
 
     Cumulative effect of change in accounting
       principle, net of income taxes                   2,681             --
 
     Net income                                        12,244          8,279
 
     Earnings per share - basic:
       Income before cumulative effect
         of change in accounting principle               1.27           1.01
 
     Cumulative effect of change in accounting
       principle, net of income taxes                    0.36             --
 
     Net income                                          1.63           1.01
 
     Earnings per share - diluted:
       Income before cumulative effect of
         change in accounting principle                  1.23           1.00
 
     Cumulative effect of change in accounting
       principle, net of income taxes                    0.35             --
 
     Net income                                         $1.58          $1.00
 
     Weighted average shares outstanding:
       Basic                                            7,513          8,176
       Diluted                                          7,756          8,302
 
 
                 M/I Schottenstein Homes, Inc. and Subsidiaries
               Selected Supplemental Financial and Operating Data
                (Dollars in thousands, except per share amounts)
 
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
                                                            (unaudited)
 
     Revenue                                         $178,155       $173,856
     Gross margin                                      40,733         38,021
     General and administrative expense                 9,666          8,929
     Selling expense                                   12,373         11,392
     Operating income                                  18,694         17,700
     Interest expense                                   3,115          4,184
     Income before income taxes                        15,579         13,516
     Income taxes                                       6,016          5,237
       Income before cumulative effect of change
         in accounting principle                        9,563          8,279
       Cumulative effect of change in accounting
         principle, net of income taxes                 2,681             --
 
       Net income                                     $12,244         $8,279
 
     Additional Information:
     Land and lot sales                                $4,530         $4,759
     Land and lot margin                                  438            535
     Financial services revenue                         5,387          5,180
     Financial services operating income               $3,808         $3,758
 
     Units:
     New contracts                                      1,376          1,106
     Homes delivered                                      777            743
     Backlog, end of period                             2,710          2,517
 
     Backlog:
     Aggregate sales value                           $625,000       $571,000
     Average sales price                                 $230           $227
 
                                                            March 31,
                                                       2001           2000
     Balance Sheet:
     Homebuilding inventory                          $482,316       $472,002
     Homebuilding debt                                212,675        242,903
     Shareholders' equity                             242,037        205,256
     Book value per share                             $ 32.10         $25.51
 
 SOURCE  M/I Schottenstein Homes, Inc.