M/i Homes : M/I Homes Reports First Quarter Results
04/30/2008| 08:31am US/Eastern
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COLUMBUS, Ohio, April 30 /PRNewswire-FirstCall/ -- M/I Homes, Inc.
(NYSE: MHO) announced results for the first quarter ended March 31, 2008.
The Company recorded a net loss for the quarter ended March 31, 2008 of
$22.2 million, or $1.58 per common share, which included pre-tax charges
totaling $22.3 million, or $0.98 per share, for impairments and write-offs
recorded in connection with its land inventory. The Company recorded net
income of $2.2 million, or $0.16 per diluted share in the first quarter of
2007, which included $2.2 million or $0.10 per diluted share of similar
pre-tax charges.
New contracts and homes delivered for the first quarter of 2008 were 554
and 450, respectively, compared to new contracts of 931 and homes delivered of
686 for the first quarter of 2007. Backlog of homes at March 31, 2008 had a
sales value of $243 million, with an average sales price of $297,000 and
backlog units of 816. Backlog of homes at March 31, 2007 had a sales value of
543 million, with an average sales price of $323,000 and backlog units were
1,678. M/I Homes had 148 active communities at March 31, 2008 compared to 161
at March 31, 2007.
Robert H. Schottenstein, Chief Executive Officer and President, commented,
"Our first quarter results reflect the difficult and challenging conditions
facing the homebuilding industry. While margins and earnings remain under
pressure, we continue to make progress in a number of important areas.
Specifically, we reduced our owned lot count by 10% during the quarter -- on
top of the 30% lot reduction in 2007. Additionally, we generated $99 million
of cash during the quarter resulting in a further reduction of our
homebuilding bank borrowings from $115 million at December 31, 2007 to $42
million at March 31, 2008. Our debt to capital ratio at quarter's end stands
at 31% and represents one of the lowest debt levels in our industry. And, we
remain on target to reduce the borrowings on our credit facility to zero by
year end."
Mr. Schottenstein continued, "Looking ahead, we will remain focused on a
predominantly defensive operating strategy aimed at further reducing
inventories and expense levels as well as continuing to improve and strengthen
our balance sheet. This strategy has served us well as we work through the
current cycle and position M/I for the eventual improvement in selling
conditions."
The Company will broadcast live its earnings conference call today at 4:00
p.m. Eastern Time. To hear the call, 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." The call, along with any applicable reconciliation
of non-GAAP financial measures, will continue to be available on our website
through April 2009.
M/I Homes, Inc. is one of the nation's leading builders of single-family
homes, having delivered over 71,000 homes. The Company's homes are marketed
and sold under the trade names M/I Homes and Showcase Homes. The Company has
homebuilding operations in Columbus and Cincinnati, Ohio; Chicago, Illinois;
Indianapolis, Indiana; Tampa and Orlando, Florida; Charlotte and Raleigh,
North Carolina; South 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 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, 2007. 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.
M/I Homes, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended
March 31,
2008 2007
Revenue: $156,085 $216,569
Net income:
(Loss) income from continuing operations $(20,150) $ 2,071
Income from discontinued operations 380 158
Net (loss) income (19,770) 2,229
Preferred share dividends 2,437 -
Net (loss) income to common shareholders $(22,207) $ 2,229
(Loss) earnings per share to common
shareholders:
Basic:
Continuing operations $ (1.61) $ 0.15
Discontinued operations 0.03 0.01
Total $ (1.58) $ 0.16
Diluted:
Continuing operations $ (1.61) $ 0.15
Discontinued operations 0.03 0.01
Total $ (1.58) $ 0.16
Weighted average shares outstanding:
Basic 14,007 13,943
Diluted 14,007 14,120
M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
2008 2007
Revenue $156,085 $216,569
Gross margin 3,410 45,243
General and administrative expense 17,558 20,741
Selling expense 13,726 17,131
Operating (loss) income (27,874) 7,371
Other income (5,555) -
Interest expense 4,439 4,028
(Loss) income from continuing
operations before income taxes (26,758) 3,343
(Benefit) provision for income taxes (6,608) 1,272
(Loss) income from continuing
operations, net of income taxes (20,150) 2,071
Income from discontinued operations,
net of income taxes 380 158
Net (loss) income (19,770) 2,229
Preferred share dividends 2,437 -
Net (loss) income to common shareholders $(22,207) $ 2,229
Revenue:
Housing revenue $130,936 $206,068
Land revenue 12,774 4,365
Other 6,965 784
Total homebuilding revenue 150,675 211,217
Financial services revenue 5,410 5,352
Total revenue $156,085 $216,569
Land, Lot Investment in Unconsolidated
Subsidiaries
Impairment by Region:
Midwest $ 2,519 $ (240)
Florida 18,494 307
Mid-Atlantic 94 1,078
Continuing operations 21,107 1,145
Discontinued operations - -
Consolidated Total $ 21,107 $ 1,145
Abandonments by Region:
Midwest $ 24 $ 22
Florida 131 1,003
Mid-Atlantic 1,049 30
Continuing operations 1,204 1,055
Discontinued operations - -
Consolidated Total $ 1,204 $ 1,055
M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
2008 2007
EBITDA (1) $ 6,530 $ 16,040
Interest incurred - net of fee
amortization $ 5,511 $ 9,702
Interest amortized to cost of sales $ 2,573 $ 3,396
Depreciation and amortization $ 2,780 $ 1,925
Non-cash charges $ 23,137 $ 3,176
Cash provided by operating activities $ 98,752 $ 53,196
Cash provided by (used in) investing
activities $ 7,734 $ (2,234)
Cash used in financing activities $(106,377) $ (58,243)
Financial services pre-tax income $ 3,337 $ 2,650
(1) Earnings before interest, taxes, depreciation and amortization
("EBITDA") is defined, in accordance with our credit facility, as net
income, plus interest expense (including interest amortized to land
and housing costs), income taxes, depreciation, amortization and
non-cash charges, minus interest income.
Units:
New contracts:
Continuing operations 554 931
Discontinued operations - 11
Consolidated total 554 942
Homes delivered:
Continuing operations 450 686
Discontinued operations 24 18
Consolidated total 474 704
March 31,
2008 2007
Backlog:
Units 816 1,678
Aggregate sales value (thousands) $ 243,000 $ 543,000
Average sales price $ 297 $ 323
March 31,
2008 2007
Balance Sheet and Operating Data:
Unrestricted cash/cash held in escrow $ 13,222 $ 21,255
Homebuilding inventory:
Lots, land and land development costs $ 464,541 $ 687,159
Land held for sale 3,559 23,724
Homes under construction 248,103 329,055
Land purchase deposit 3,041 4,447
Other 28,606 32,559
Total homebuilding inventory $ 747,850 $1,076,944
Total assets $ 961,893 $1,395,643
Homebuilding debt $ 247,616 $ 485,605
Shareholders' equity $ 559,582 $ 717,661
Book value per common share $ 32.79 $ 43.99
Homebuilding net debt/capital ratio 29 % 39 %
M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
Land Position Summary
March 31, 2008 March 31, 2007
Lots Lots
Lots Under Lots Under
Owned Contract Total Owned Contract Total
Midwest Region 6,195 527 6,722 7,125 515 7,640
Florida Region 4,183 261 4,444 8,132 785 8,917
Mid-Atlantic
Region 1,950 881 2,831 2,722 1,141 3,863
Continuing
operations 12,328 1,669 13,997 17,979 2,441 20,420
Discontinued
operations - - - 571 - 571
Total 12,328 1,669 13,997 18,550 2,441 20,991
SOURCE M/I Homes, Inc.
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