COLUMBUS, Ohio, April 28, 2016 /PRNewswire/ -- M/I Homes, Inc. (NYSE:MHO) announced results for the three months ended March 31, 2016.

2016 First Quarter Highlights:


    --  Net income of $9.2 million ($0.30 per diluted share)

    --  Pre-tax income increased 34% to $14.0 million, excluding impact of land
        sales gross profit which was $700,000 in 2016 vs. $5.2 million in 2015
    --  New contracts increased 19%
    --  Homes delivered increased 22%; average closing price increased 9%
    --  Backlog sales value increased 27% to $730 million; backlog units
        increased 22% to 1,969
    --  Opening of new division in Sarasota, Florida

For the first quarter of 2016, the Company reported net income of $9.2 million, or $0.30 per diluted share. This compares to net income of $9.6 million, or $0.31 per diluted share, for the first quarter of 2015. The first quarter of 2016 includes a $2.2 million pre-tax charge for stucco-related repairs in certain of our Florida communities and $700,000 of gross profit on land sales. 2015's first quarter results included $5.2 million of gross profit on land sales.

New contracts for the first quarter were 1,314, a 19% increase from the 1,108 recorded in 2015's first quarter. Homes delivered in the first quarter reached a first quarter record 876, an increase of 22% over the 717 reported for the same period of 2015. Homes in backlog at March 31, 2016 had a total sales value of $730 million, a 27% increase over a year ago, with backlog units of 1,969 and an average sales price of $371,000. At March 31, 2015, backlog sales value was $577 million, with backlog units of 1,613, and an average sales price of $358,000. M/I Homes had 181 active communities at March 31, 2016 compared to 153 at March 31, 2015. The Company's cancellation rate was 11% in the first quarter of 2016 compared to 13% in 2015's first quarter.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased with our first quarter results as we are off to a strong start to 2016. We delivered a first quarter record 876 homes, 22% more than last year. New contracts increased 19% and our backlog sales value increased 27% to $730 million, with 356 more homes in backlog than a year ago. And, our pre-tax income, excluding land sales gross profit, increased by 34% due to increased closings, increased average sales price, and a 40 basis point improvement in our overhead expense ratio. We ended the quarter with our strongest first quarter backlog in ten years."

Mr. Schottenstein continued, "We are also very excited to announce our plans to open in Sarasota, Florida, our 15(th) housing division. We are confident that we can grow this new division and establish a meaningful presence. Given the strength of our backlog, our strong sales performance and planned new community openings, we are well positioned to have a very solid 2016."

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 April 2017.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 95,000 homes. The Company's homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and also currently operates under the name Hans Hagen Homes in its Minneapolis/St. Paul, Minnesota market. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa and Orlando, Florida; Austin, Dallas/Fort Worth, 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 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 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 December 31, 2015, 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 Subsidiaries

                                 Summary Statement of Income (Unaudited)

                            (Dollars in thousands, except per share amounts)




                                                  Three Months Ended

                                                       March 31,

                                            2016                      2015
                                            ----

    New
     contracts                             1,314                               1,108

    Average
     community
     count                                   178                                 152

     Cancellation
     rate                                    11%                                13%

    Backlog
     units                                 1,969                               1,613

    Backlog
     value                                          $729,950                         $576,753

    Homes
     delivered                               876                                 717

    Average
     home
     closing
     price                                              $353                             $325
    --------                                            ----                             ----


    Homebuilding revenue:

       Housing
        revenue                                     $309,247                         $233,000

       Land
        revenue                            5,070                              22,061
       --------                            -----                              ------

    Total
     homebuilding
     revenue                                        $314,317                         $255,061


    Financial
     services
     revenue                              10,053                               8,098
    ---------                             ------                               -----

    Total
     revenue                                        $324,370                         $263,159
    --------                                        --------                         --------


    Cost of
     sales -
     operations                          260,172                             206,183
    -----------                          -------                             -------

    Gross
     margin                                          $64,198                          $56,976

    General
     and
     administrative
     expense                              22,259                              19,334

    Selling
     expense                              22,266                              17,686
    --------                              ------                              ------

    Operating
     income                                          $19,673                          $19,956

    Equity in
     income of
     unconsolidated
     joint
     ventures                              (307)                              (198)

    Interest
     expense                               5,265                               4,462

    Income
     before
     income
     taxes                                           $14,715                          $15,692

    Provision
     for
     income
     taxes                                 5,526                               6,124
    ---------                              -----                               -----

    Net income                                        $9,189                           $9,568

    Preferred
     dividends                             1,219                               1,219
    ----------                             -----                               -----

    Net income
     to common
     shareholders                                     $7,970                           $8,349
    -------------                                     ------                           ------


    Earnings per share:

    Basic                                              $0.32                            $0.34

    Diluted                                            $0.30                            $0.31
    -------                                            -----                            -----


    Weighted average shares
     outstanding:

    Basic                                 24,657                              24,514

    Diluted                               30,032                              29,975
    -------                               ------                              ------





                                         M/I Homes, Inc. and Subsidiaries

                             Summary Balance Sheet and Other Information (unaudited)

                                 (Dollars in thousands, except per share amounts)




                                                             As of

                                                           March 31,

                                                2016                        2015
                                                ----                        ----

    Assets:

    Total cash and cash
     equivalents(1)                                       $34,321                                           $36,098

    Mortgage loans held
     for sale                                 94,438                                79,180

    Inventory:

    Lots, land and land
     development                             596,072                               470,317

    Land held for sale                        13,801                                 4,374

    Homes under
     construction                            439,328                               403,965

    Other inventory                          104,336                                80,414
    ---------------                          -------                                ------

    Total Inventory                                    $1,153,537                                          $959,070
    ---------------                                    ----------                                          --------


    Property and
     equipment -net                           22,740                                11,081

    Investments in
     unconsolidated
     joint ventures                           25,693                                29,449

    Deferred income
     taxes, net of
     valuation allowance                      55,860                                88,748

    Other assets                              50,123                                41,443
    ------------                              ------                                ------

    Total Assets                                       $1,436,712                                        $1,245,069
    ============                                       ==========                                        ==========


    Liabilities:

    Debt - Homebuilding Operations:

    Senior notes                                         $294,904                                          $226,354

    Convertible senior
     subordinated notes
     due 2017                                 56,662                                56,087

     Convertible senior
      subordinated notes
      due 2018                                84,891                                84,183

     Notes payable bank -
      homebuilding                           114,500                                90,000

    Notes payable -
     other                                     8,805                                 8,876
    ---------------                            -----                                 -----

    Total Debt -
     Homebuilding
     Operations                                          $559,762                                          $465,500


    Notes payable bank -
     financial services
     operations                               87,186                                71,723
    --------------------                      ------                                ------

    Total Debt                                           $646,948                                          $537,223


    Accounts payable                          81,594                                69,452

    Other liabilities                        103,565                                84,781
    -----------------                        -------                                ------

    Total Liabilities                                    $832,107                                          $691,456
    -----------------                                    --------                                          --------


    Shareholders' Equity                     604,605                               553,613
    --------------------                     -------                               -------

    Total Liabilities
     and Shareholders'
     Equity                                            $1,436,712                                        $1,245,069
    ==================                                 ==========                                        ==========


    Book value per
     common share                                          $22.48                                            $20.54

    Net debt/net
     capital ratio(2)                            51%                                  48%
    -----------------                            ---                                   ---


    (1)     2016 and 2015 amounts include $2.6 million and $6.1 million of restricted cash and cash held in escrow,
     respectively.

    (2)     Net debt/net capital ratio is calculated as the principal amount outstanding of our total debt minus total cash
     and cash equivalents, divided by the sum of the principal amount outstanding of our total debt minus total cash and cash
     equivalents plus shareholders' equity.





                                      M/I Homes, Inc. and Subsidiaries

                             Selected Supplemental Financial and Operating Data

                                           (Dollars in thousands)




                                            Three Months Ended

                                                 March 31,

                                            2016                     2015
                                            ----                     ----

    Adjusted
     EBITDA(1)                                       $27,233                      $26,769


    Cash flow
     provided by
     (used in)
     operating
     activities                                       $1,056                    $(29,276)

    Cash used in
     investing
     activities                                    $(12,863)                      $(845)

    Cash provided
     by financing
     activities                                      $33,357                      $44,544


    Land/lot
     purchases                                       $51,973                      $51,200

    Land
     development
     spending                                        $32,194                      $37,681

    Land sale
     revenue                                          $5,070                      $22,061

    Land sale
     gross profit                                       $729                       $5,241


    Financial
     services pre-
     tax income                                       $5,891                       $4,993
    --------------                                    ------                       ------


    (1)   See "Non-GAAP Financial Results / Reconciliation" table below.





                             M/I Homes, Inc. and Subsidiaries

                       Non-GAAP Financial Results / Reconciliation

                                  (Dollars in thousands)




                                      Three Months Ended

                                           March 31,

                                       2016                  2015
                                       ----                  ----

    Net income                                  $9,189                    $9,568

    Add:

    Provision for
     income taxes                     5,526                        6,124

    Interest expense
     net of interest
     income                           4,835                        4,103

    Interest amortized
     to cost of sales                 3,544                        3,539

    Depreciation and
     amortization                     2,884                        2,306

    Non-cash charges                  1,255                        1,129
    ----------------                  -----                        -----

    Adjusted EBITDA                            $27,233                   $26,769
    ===============                            =======                   =======




                          M/I Homes, Inc. and Subsidiaries

                 Selected Supplemental Financial and Operating Data


                                    NEW CONTRACTS
                                    -------------

                                  Three Months Ended

                                       March 31,
                                       ---------

                                                                    %

    Region                    2016                 2015              Change
    ------                    ----                 ----              ------

    Midwest                    495                            420           18%

    Southern                   492                            414           19%

    Mid-Atlantic               327                            274           19%
    ------------               ---                            ---           ---

    Total                    1,314                          1,108           19%
    =====                    =====                          =====           ===


                      HOMES DELIVERED
                      ---------------

                       Three Months Ended

                            March 31,
                            ---------

                                                %

    Region       2016                 2015     Change
    ------       ----                 ----     ------

    Midwest       322                      248        30%

    Southern      350                      275        27%

    Mid-Atlantic  204                      194         5%
    ------------  ---                      ---        ---

    Total         876                      717        22%
    =====         ===                      ===        ===


                                                  BACKLOG
                                                  -------

                     March 31, 2016               March 31, 2015
                     --------------               --------------

                            Dollars     Average                          Dollars    Average

    Region    Units       (millions)  Sales Price Units                (millions) Sales Price
    ------    -----       ---------   ----------- -----                ---------  -----------

    Midwest      845                 $330                     $391,000              677       $242 $357,000

    Southern     702                 $247                     $352,000              589       $211 $358,000

    Mid-
     Atlantic    422                 $153                     $361,000              347       $124 $358,000
    ---------    ---                 ----                     --------              ---       ---- --------

    Total      1,969                 $730                     $371,000            1,613       $577 $358,000
    =====      =====                 ====                     ========            =====       ==== ========


                                            LAND POSITION SUMMARY
                                            ---------------------

                      March 31, 2016                                          March 31, 2015
                      --------------                                          --------------

              Lots   Lots Under                                  Lots Lots Under

    Region    Owned   Contract      Total                       Owned  Contract      Total
    ------    -----   --------      -----                       -----  --------      -----

    Midwest    3,488                  5,003              8,491                                3,386 2,272  5,658

    Southern   4,630                  5,132              9,762                                4,917 3,845  8,762

    Mid-
     Atlantic  2,750                  1,259              4,009                                2,633 2,397  5,030
    ---------  -----                  -----              -----                                ----- -----  -----

    Total     10,868                 11,394             22,262                               10,936 8,514 19,450
    =====     ======                 ======             ======                               ====== ===== ======

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SOURCE M/I Homes, Inc.