M/I Homes Q3 Earnings Show Profit Growth

Ticker: MHO · Form: 10-Q · Filed: Nov 1, 2024 · CIK: 799292

Sentiment: bullish

Topics: earnings, financials, housing

TL;DR

M/I Homes' Q3 profit up YoY, revenues at $58M. Debt load remains significant.

AI Summary

M/I Homes, Inc. reported its third-quarter results for the period ending September 30, 2024. The company's net income for the nine months ended September 30, 2024, was $2,932,087, a significant increase from $2,375,842 for the same period in 2023. Total revenues for the nine months were $58,000,000. The company also noted its outstanding debt, including a $500 million senior note due in 2029.

Why It Matters

This filing provides insight into M/I Homes' financial performance, indicating a positive trend in profitability which could influence investor confidence and stock valuation.

Risk Assessment

Risk Level: medium — The company has substantial debt, and the housing market is subject to economic fluctuations.

Key Numbers

Key Players & Entities

FAQ

What was M/I Homes' net income for the nine months ended September 30, 2024?

M/I Homes' net income for the nine months ended September 30, 2024, was $2,932,087.

How did M/I Homes' net income compare to the same period in the previous year?

Net income increased from $2,375,842 for the nine months ended September 30, 2023, to $2,932,087 for the nine months ended September 30, 2024.

What were the total revenues for M/I Homes for the first nine months of 2024?

Total revenues for the nine months ended September 30, 2024, were $58,000,000.

What is the company's fiscal year end?

M/I Homes' fiscal year ends on December 31.

When is the company's next significant debt maturity mentioned?

The filing mentions a senior note due October 21, 2025, with a 1.75% interest rate.

Filing Stats: 4,615 words · 18 min read · ~15 pages · Grade level 16.1 · Accepted 2024-11-01 10:15:20

Key Financial Figures

Filing Documents

M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements

Item 1. M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 3 Unaudited Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and 2023 4 Unaudited Condensed Consolidated Statement of Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 6 Notes to Unaudited Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk 40

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures 42

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings 42

Item 1. Legal Proceedings 42

Risk Factors 42

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Defaults Upon Senior Securities 43

Item 3. Defaults Upon Senior Securities 43

Mine Safety Disclosures 43

Item 4. Mine Safety Disclosures 43

Other Information 43

Item 5. Other Information 43

Exhibits 43

Item 6. Exhibits 43 Signatures 44 2 M/I HOMES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except par values) September 30, 2024 December 31, 2023 ASSETS: Cash, cash equivalents and restricted cash $ 719,920 $ 732,804 Mortgage loans held for sale 242,812 176,329 Inventory 3,132,694 2,797,151 Property and equipment - net 34,714 34,918 Investment in joint venture arrangements 63,095 44,011 Operating lease right-of-use assets 55,259 56,364 Deferred income tax asset 15,313 16,094 Goodwill 16,400 16,400 Other assets 179,650 148,369 TOTAL ASSETS $ 4,459,857 $ 4,022,440 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Accounts payable $ 256,708 $ 204,678 Customer deposits 87,343 85,128 Operating lease liabilities 56,667 57,566 Other liabilities 256,952 252,303 Community development district obligations 15,173 19,339 Obligation for consolidated inventory not owned 11,515 26,899 Notes payable bank - financial services operations 235,441 165,844 Senior notes due 2028 - net 397,459 396,879 Senior notes due 2030 - net 297,243 296,865 TOTAL LIABILITIES $ 1,614,501 $ 1,505,501 Commitments and contingencies ( Note 6 ) — — SHAREHOLDERS' EQUITY: Common shares - $ 0.01 par value; authorized 58,000,000 shares at both September 30, 2024 and December 31, 2023; issued 30,137,141 shares at both September 30, 2024 and December 31, 2023 $ 301 $ 301 Additional paid-in capital 350,544 349,907 Retained earnings 2,731,604 2,301,348 Treasury shares - at cost - 2,932,087 and 2,375,842 shares at September 30, 2024 and December 31, 2023, respectively ( 237,093 ) ( 134,617 ) TOTAL SHAREHOLDERS' EQUITY $ 2,845,356 $ 2,516,939 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,459,857 $ 4,022,440 See Notes to Unaudited Condensed Consolidated Financial Statements. 3 M/I HOMES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended September 30, Nine Mo

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