M/I Homes Reports Fourth Quarter and Year-End Results

M/I Homes, Inc. (NYSE:MHO) announced results for its fourth quarter and year ended December31, 2024.

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2024Fourth 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, up 24%

— Pre-tax income of $171 million, up 24%

— Net income increased 27% to $133.5 million ($4.71 per diluted share) compared to $105 million ($3.66 per diluted share) in 2023

— Repurchased $50 million of stock

2024Full 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 per diluted share)

— Shareholders' equity reached an all-time record of $2.9 billion, a 17% increase from a year ago, with book value per share of $109

— Repurchased $176 million of stock

— Return on equity of 21%

— Homebuilding debt to capital ratio of 19% compared to 22% at December 31, 2023

For the fourth quarter of 2024, the Company reported net income of $133.5million, or $4.71 per diluted share, compared to net income of $105.3million, or $3.66 per diluted share, for the fourth quarter of 2023. For the year ended December31, 2024, the Company reported net income of $563.7million, or $19.71 per diluted share, compared to net income of $465.4million, or $16.21 per diluted share in 2023.

Homes delivered in 2024's fourth quarter reached an all-time quarterly record of 2,402, a 19% increase compared to 2,019 deliveries in 2023's fourth quarter. Homes delivered for the twelve months ended December31, 2024 increased 12% to a record 9,055 from 2023's deliveries of 8,112. New contracts for 2024's fourth quarter increased 11% to 1,759 from 1,588 new contracts in 2023's fourth quarter. For 2024, new contracts were 8,584, an 8% increase from 2023's 7,977 new contracts. Homes in backlog decreased 16% at December31, 2024 to 2,531 units, with a sales value of $1.4 billion, an 11% decrease from last year, while the average sales price in backlog increased 5% to an all-time record $553,000. At December31, 2023, the sales value of the 3,002 homes in backlog was $1.6 billion, with an average sales price of $525,000. M/I Homes had 220 active communities at December31, 2024 compared to 213 a year ago. The Company's cancellation rate was 14% in 2024's fourth quarter compared to 13% for the prior year's fourth quarter.

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 12% to 9,055 generating revenue of $4.5 billion – a 12% increase over 2023. Our gross margins were 26.6% compared to 25.3% and pre-tax income was $734 million, a 21% increase over last year. Our pre-tax margin reached 16% and we produced a strong return on equity of 21%.”

Mr. Schottenstein continued, “We are in excellent financial condition. We ended the year with record shareholders' equity of $2.9 billion, cash of $822 million, zero borrowings under our $650 million credit facility, a homebuilding debt to capital ratio of 19% and a net debt to capital ratio of negative 5%. Our year-end book value was a record $109 per share. As we begin 2025, we believe our industry will continue to benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing.”

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 Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota, Fort Myers/Naples and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina and Nashville, Tennessee.

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 December31, 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 SubsidiariesSummary 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 2023New contracts 1,759 1,588 8,584 7,977Average community count 219 209 216 202Cancellation rate 14% 13% 10% 11%Backlog units 2,531 3,002 2,531 3,002Backlog sales value $ 1,399,683 $ 1,575,643 $ 1,399,683 $ 1,575,643Homes delivered 2,402 2,019 9,055 8,112Average home closing price $ 490 $ 471 $ 483 $ 483Homebuilding revenue:Housing revenue $ 1,175,883 $ 950,872 $ 4,375,829 $ 3,914,372Land revenue 882 2,025 12,635 25,301Total homebuilding revenue $ 1,176,765 $ 952,897 $ 4,388,464 $ 3,939,673Financial services revenue 28,512 19,691 116,206 93,829Total revenue $ 1,205,277 $ 972,588 $ 4,504,670 $ 4,033,502Cost of sales – operations 908,452 728,202 3,305,781 3,014,573Gross margin $ 296,825 $ 244,386 $ 1,198,889 $ 1,018,929General and administrative expense 70,059 60,284 258,422 222,765Selling expense 62,775 54,256 234,373 208,942Operating income $ 163,991 $ 129,846 $ 706,094 $ 587,222Other 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 $ 607,277Provision for income taxes 37,088 32,692 169,883 141,912Net income $ 133,469 $ 105,282 $ 563,725 $ 465,365Earnings per share:Basic $ 4.85 $ 3.79 $ 20.29 $ 16.76Diluted $ 4.71 $ 3.66 $ 19.71 $ 16.21Weighted average shares outstanding:Basic 27,538 27,769 27,777 27,769Diluted 28,308 28,756 28,600 28,716M/I Homes, Inc. and SubsidiariesSummary Balance Sheet and Other Information (unaudited)(Dollars in thousands, except per share amounts) As of December 31, 2024 2023Assets:Total cash, cash equivalents and restricted cash $ 821,570 $ 732,804Mortgage loans held for sale 283,540 176,329Inventory:Lots, land and land development 1,630,190 1,446,576Land held for sale 7,699 6,932Homes under construction 1,271,626 1,177,101Other inventory 182,347 166,542Total Inventory $ 3,091,862 $ 2,797,151Property and equipment – net 34,513 34,918Operating lease right-of-use assets 53,895 56,364Goodwill 16,400 16,400Investments in joint venture arrangements 65,334 44,011Deferred income tax asset 13,451 16,094Other assets 169,231 148,369Total Assets $ 4,549,796 $ 4,022,440Liabilities:Debt – Homebuilding Operations:Senior notes due 2028 – net 397,653 396,879Senior notes due 2030 – net 297,369 296,865Total Debt – Homebuilding Operations $ 695,022 $ 693,744Notes payable bank – financial services operations 286,159 165,844Total Debt $ 981,181 $ 859,588Accounts payable 198,579 204,678Operating lease liabilities 55,365 57,566Other liabilities 374,994 383,669Total Liabilities $ 1,610,119 $ 1,505,501Shareholders' Equity 2,939,677 2,516,939Total Liabilities and Shareholders' Equity $ 4,549,796 $ 4,022,440Book value per common share $ 108.62 $ 90.66Homebuilding 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 SubsidiariesSelected Supplemental Financial and Operating Data(Dollars in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023Cash provided by operating activities $ 104,395 $ 54,901 $ 179,736 $ 552,131Cash 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 $ 343,504Land development spending $ 201,301 $ 159,550 $ 645,960 $ 512,105Land sale revenue $ 882 $ 2,025 $ 12,635 $ 25,301Land sale gross profit $ 391 $ 356 $ 3,709 $ 3,360Financial services pre-tax income $ 10,034 $ 4,676 $ 49,682 $ 38,354M/I Homes, Inc. and SubsidiariesNon-GAAP Financial Results (1)(Dollars in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023Net income $ 133,469 $ 105,282 $ 563,725 $ 465,365Add:Provision for income taxes 37,088 32,692 169,883 141,912Interest income – net (10,177) (10,908) (40,719) (30,030)Interest amortized to cost of sales 8,181 7,724 32,053 33,326Depreciation and amortization 4,810 4,479 18,700 17,369Non-cash charges 9,709 13,241 23,808 20,247Adjusted 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 SubsidiariesSelected Supplemental Financial and Operating Data NEW CONTRACTS Three Months Ended Twelve Months Ended December 31, December 31, % %Region 2024 2023 Change 2024 2023 ChangeNorthern 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 ChangeNorthern 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 AverageRegion Units (millions) Sales Price Units (millions) Sales PriceNorthern 1,136 $ 637 $ 561,000 1,248 $ 663 $ 531,000Southern 1,395 $ 763 $ 547,000 1,754 $ 912 $ 520,000Total 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 UnderRegion Owned Contract Total Owned Contract TotalNorthern 6,546 11,076 17,622 6,852 8,935 15,787Southern 17,290 17,244 34,534 17,522 12,351 29,873Total 23,836 28,320 52,156 24,374 21,286 45,660

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SOURCE M/I Homes, Inc.

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