On October 25, 2023, M/I Homes Inc (MHO, Financial) announced its financial results for the third quarter of 2023. The company reported a significant increase in new contracts and home deliveries, contributing to record third quarter revenue and net income.
Financial Highlights
M/I Homes Inc (MHO, Financial) reported a 50% increase in new contracts to 2,021 contracts in Q3 2023. The company delivered 2,096 homes, marking a 3% increase from the 2,026 homes delivered in Q3 2022. The company's revenue for the third quarter reached a record $1.0 billion, up 3% from the same period in 2022. Pre-tax income increased by 7% to $178.0 million, setting a new third quarter record. The company also reported an all-time quarterly record net income of $139.0 million, up 6% from Q3 2022.
Commentary from the CEO
“We had a very strong third quarter, highlighted by record revenue, record income, a 50% increase in new contracts and very strong returns. We increased revenue by 3% to a record $1.0 billion, increased pre-tax income by 7% to a record $178.0 million, generated 27% gross margins and 17% pre-tax income margins. These results produced a solid 23% return on equity.” - Robert H. Schottenstein, Chief Executive Officer and President of M/I Homes Inc (MHO, Financial)
Financial Position
The company's financial condition remains strong, ending the quarter with record shareholders’ equity of $2.4 billion, an increase of 25% from a year ago. The company also reported a book value of $87 per share, cash of $736 million, zero borrowings on its $650 million credit facility, and a homebuilding debt to capital ratio of 22%.
Outlook
Given the company's strong performance through the first three quarters of 2023, coupled with the strength of its balance sheet, low debt levels, diverse product offerings, and well-located communities, M/I Homes Inc (MHO, Financial) is well-positioned for a strong 2023.
