M/I Homes Reports Second Quarter Results

COLUMBUS, Ohio, July 25, 2013 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the second quarter and six months ended June 30, 2013.

2013 Second Quarter Highlights:

• Net income of $7.3 million
• New contracts increased 31%
• Homes delivered increased 26%
• Backlog units and value increased 43% and 53%, respectively
• Cash balance of $178.7 million
• Net debt to net capital ratio of 42%

For the second quarter of 2013, the Company reported net income of $7.3 million, which includes $1.2 million of asset impairments. This compares to net income of $3.2 million for the second quarter of 2012, which included $0.7 million of asset impairments.  For the six months ended June 30, 2013, the Company had net income of $11.9 million, compared to net income of $18,000, in the same period a year ago. 

New contracts for 2013's second quarter were 1,078, up 31% from 2012's second quarter of 826.  For the first six months of 2013, new contracts increased 34% from 1,590 in 2012 to 2,125 in 2013. M/I Homes had 140 active communities at June 30, 2013 compared to 124 at June 30, 2012.  The Company's cancellation rate was 14% in the second quarter of 2013 compared to 16% in 2012's second quarter.  Homes delivered in 2013's second quarter were 788 compared to 625 in 2012's second quarter - up 26%.  Homes delivered for the six months ended June 30, 2013 increased 25% to 1,415 compared to 2012's deliveries of 1,132.  Backlog of homes at June 30, 2013 had a sales value of $491 million (a 53% increase over last year's second quarter), with an average sales price of $293,000 and backlog units of 1,675.  At June 30, 2012 backlog sales value was $320 million, with an average sales price of $274,000 and backlog units of 1,168.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased with our improving results - our homes delivered during the quarter increased 26% and our new contracts were up 31%.  We were also pleased with the increase in our community count (up 13%) and average sales price (up 7%), resulting in our highest quarter-end backlog units and sales value in over 5 years.  And, our recent expansion into Texas continues to positively impact our results, as new contracts in Texas almost doubled when compared to last year's second quarter and first half.  In addition, our gross margin and selling, general and administrative expense leverage for the first half of 2013 both improved over 100 basis points from last year's first half."

Mr. Schottenstein continued, "Our financial condition remains strong, with shareholder's equity at $355 million, net debt to net capital at 42%, and no outstanding borrowings under our credit facility.  Furthermore, we enhanced our capital structure, as announced last week, entering into a new $200 million three-year unsecured credit facility.  And, as just announced, we are very excited to be entering the Dallas/Fort Worth market - this will further complement our Texas operations in Austin, Houston and San Antonio.  Moving forward, we will stay focused on improving our profitability, growing our market share in our existing markets, expanding our community count and investing in attractive land opportunities."

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 2014.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 84,500 homes.  The Company's homes are marketed and sold under the trade names M/I Homes, Showcase Homes, and Triumph Homes.  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Chicago, Illinois; Indianapolis, Indiana; Tampa and Orlando, Florida; Austin, Dallas, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

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, including, without limitation, 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, 2012, 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 adjusted EBITDA, a non-GAAP financial measure.  For this measure, we have provided reconciliation 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 / Reconciliation" table below.

SOURCE M/I Homes, Inc.