In the latest market close, M/I Homes (MHO) reached $109.46, with a +0.75% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.83%.The homebuilder's stock has dropped by 0.27% in the past month, falling short of the Construction sector's gain of 3.1% and the S&P 500's gain of 5.17%.The investment community will be paying close attention to the ...

Financial Data and Key Metrics Changes - The meeting reported that as of the record date, there were 26,772,622 common shares outstanding, with $27,933,000.87 shares present in person or by proxy, indicating a quorum for the meeting [26][27][35] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed in the provided content Market Data and Key Metrics Changes - No specific market data or key metrics were discussed in the provided content Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong governance with the election of directors and the approval of executive compensation, which reflects a commitment to transparency and accountability [18][36] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the content Other Important Information - The company has ratified the appointment of Deloitte and Touche as its accounting firm for 2025, which is a standard practice to ensure financial oversight [36] Q&A Session All Questions and Answers Question: Election of Directors - The motion for the election of Nancy J. Kramer, Yvette McGee Brown, and Robert H. Schottenstein to the board of directors was moved and seconded, and they were subsequently elected [11][30][35] Question: Executive Compensation - The motion to approve the compensation of the company's named executive officers on an advisory basis was moved and seconded, and it was approved by the shareholders [13][31][36] Question: Appointment of Accounting Firm - The motion to ratify the appointment of Deloitte and Touche as the company's accounting firm for 2025 was moved and seconded, and it was approved by the shareholders [15][33][36]

Financial Performance - Revenue decreased 7% to $976.1 million, with homebuilding revenue at $944.6 million[130] - Net income decreased 19% to $111.2 million, or $3.98 per diluted share[129] - Operating income decreased to $140.9 million in Q1 2025 from $173.3 million in Q1 2024, reflecting a decline of 18.7%[141] - Total revenue for the three months ended March 31, 2025, was $976.1 million, a decrease of 6.7% from $1,046.7 million in the same period of 2024[141] - Income before income taxes decreased 19% to $146.1 million[129] - Cash generated from operating activities was $64.9 million in Q1 2025, down from $115.8 million in Q1 2024, primarily due to a $107.3 million increase in inventory purchases[171] Home Sales and Deliveries - New contracts declined 10% to 2,292 from 2,547 in the first quarter of 2025[126] - Number of homes delivered decreased 8% to 1,976 homes[126] - Homes delivered in the Northern region decreased from 843 in Q1 2024 to 826 in Q1 2025, while the Southern region saw a drop from 1,315 to 1,150[145] - The aggregate sales value of homes in backlog decreased to $1.56 billion in Q1 2025 from $1.79 billion in Q1 2024, a decline of 12.8%[145] - New contracts in the Southern region decreased from 1,385 in Q1 2024 to 1,227 in Q1 2025, a decline of approximately 11.4% due to weakened market demand[157] Pricing and Margins - Average sales price increased 1% from $471,000 to $476,000[126] - The average sales price of homes delivered in the Northern region increased by 2.3% to $494,000 in Q1 2025 from $483,000 in Q1 2024[145] - Gross margin percentage decreased by 300 basis points from 27.4% in Q1 2024 to 24.4% in Q1 2025, attributed to the mix of homes delivered and incentives offered[155] Community Development - Company opened 27 new communities and closed 21, ending with 226 active communities[139] - Company plans to increase average community count by about 5% by the end of 2025[139] - The company opened 16 new communities in the Northern region during Q1 2025, compared to 7 in Q1 2024, indicating a strategic expansion[153] Financial Services - Financial services revenue increased to $31.5 million in Q1 2025, up from $27.0 million in Q1 2024, marking a growth of 16.5%[146] - Revenue from mortgage and title operations increased by 17% to a record $31.5 million in Q1 2025, up from $27.0 million in Q1 2024, despite a 2% decrease in loan originations[158] - Operating income in the financial services segment increased by $3.6 million in Q1 2025 compared to Q1 2024, driven by higher revenue[159] Assets and Liabilities - Total assets increased to $4.59 billion as of March 31, 2025, compared to $4.55 billion at December 31, 2024[142] - As of March 31, 2025, the Company had a total assets amounting to $4.27 billion, with total liabilities of $1.32 billion and shareholders' equity of $2.95 billion[198] - The Company maintained a Consolidated Tangible Net Worth of $2.93 billion, exceeding the required minimum of $1.85 billion[184] Shareholder Actions - The company repurchased $50.1 million of outstanding common shares under the 2025 Share Repurchase Program during Q1 2025[175] Market Conditions - Mortgage interest rates have remained around 7% since the end of 2023, impacting homebuyer qualifications and affordability[207] - The annual inflation rate in the United States was 2.4% in March 2025, down from 3.5% in March 2024, which may stabilize costs for the company[206] Borrowing and Credit Facilities - The company has a borrowing capacity of up to $950 million under its revolving credit facilities as of March 31, 2025[208] - The Company has a Credit Facility with an aggregate commitment amount of $650 million, which can be increased to $800 million[181] - The MIF Mortgage Repurchase Facility has a maximum borrowing availability of $300 million and expires on October 21, 2025[185] - The Company expects to extend the MIF Mortgage Repurchase Facility before its expiration date, although no assurance can be provided[187]

Core Insights - M/I Homes, Inc. (MHO) reported a disappointing Q1 performance, with declines in both revenue and net income, indicating a loss in profitability and efficiency [1] Financial Performance - The company experienced declines in top and bottom lines during Q1, reflecting challenges in maintaining profitability [1] Investment Perspective - The analysis suggests a long-term investment horizon of 5-10 years, emphasizing a portfolio strategy that includes a mix of growth, value, and dividend-paying stocks, with a focus on value [1]

Financial Data and Key Metrics Changes - In the first quarter, new contracts decreased by 10% compared to last year, with a cancellation rate of 10% [10][18] - Revenues decreased by 7% to $976 million, while homes delivered decreased by 8% to 1,976 homes [11][21] - Gross margins were reported at 25.9%, down 120 basis points year-over-year but up 130 basis points from the previous quarter [10][21] - Pre-tax income decreased by 19% to $146 million, with a pre-tax income margin of 15% and a return on equity of 19% [12][23] - Earnings per diluted share decreased to $3.98 from $4.78 last year [24] Business Line Data and Key Metrics Changes - The mortgage and title operations achieved pre-tax income of $16.1 million, an increase of 31% from the previous year, with revenue increasing by 17% to a record $31.5 million [25] - The average mortgage amount increased to $406,000, while loans originated decreased by 2% to 1,530 [26] Market Data and Key Metrics Changes - New contracts in the Northern region decreased by 8%, while the Southern region saw a decrease of 11% compared to last year's first quarter [12] - Deliveries in the Southern region decreased by 13%, while the Northern region saw a decrease of 2% [13] Company Strategy and Development Direction - The company plans to continue offering mortgage rate buydown incentives to drive sales, indicating that gross margins may face pressure throughout the year [16] - The company remains optimistic about long-term growth in the homebuilding industry due to an undersupply of homes and increasing household formations [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, with factors such as inflation, interest rate fluctuations, and consumer confidence impacting demand [9][10] - Despite the challenges, management expressed confidence in the company's strong balance sheet and land position, indicating readiness for future growth [15][94] Other Important Information - The company ended the quarter with a record $3 billion in equity and a debt-to-capital ratio of 19% [15] - The company has repurchased 13% of its outstanding shares since 2022, with $200 million remaining under the current board authorization [31] Q&A Session Summary Question: Insights on buyer demand shifts by geography and price point - Management noted no significant changes in demand across price points, with Smart Series communities performing well [38] - Tampa market showed some recovery, while Indianapolis and Chicago remained strong [41][42] Question: Spec strategy and margin differentials - Management indicated that spec sales account for 50% to 65% of sales, with slightly lower margins on spec products [52][53] Question: Order pace and units under construction - Management is cautious about starts and is managing construction on a subdivision basis, with a focus on maintaining good margins [64][66] Question: Impact of lot cost inflation and supply chain - Currently, there has been no significant impact from lot cost inflation, and costs are stable compared to last year [85][88] Question: Share repurchase strategy - Management is consistent with a $50 million repurchase strategy and is open to adjusting based on market conditions [99][100] Question: Gross margin backlog and pricing power - Management expects continued pressure on margins and noted that true pricing power is limited in the current environment [107][127]

M/I Homes (MHO) Q1 2025 Earnings Call April 23, 2025 10:30 AM ET Company Participants Phillip Creek - Executive VP, CFO & DirectorRobert Schottenstein - Chairman, President & CEODerek Klutch - President & CEO of M/I FinancialAlan Ratner - Managing DirectorBuck Horne - Managing Director - Equity ResearchJay McCanless - SVP - Equity Research Conference Call Participants Kenneth Zener - Senior Analyst Operator Good morning, ladies and gentlemen, and welcome to the MI Homes First Quarter Earnings Conference Cal ...

Core Insights - M/I Homes reported a revenue of $976.09 million for the quarter ended March 2025, reflecting a year-over-year decline of 6.8% and an EPS of $3.98, down from $4.78 a year ago, with a revenue surprise of -12.92% compared to the Zacks Consensus Estimate of $1.12 billion and an EPS surprise of -4.33% against the consensus estimate of $4.16 [1] Financial Performance - Homes in backlog totaled 2,847, slightly below the average estimate of 2,910 from two analysts [4] - The number of active communities was 223, compared to the average estimate of 224 [4] - New contracts totaled 2,292, which was lower than the average estimate of 2,599 [4] - The average sales price of homes in backlog was $548 thousand, slightly above the average estimate of $547.03 thousand [4] - The average home closing price was $476 thousand, below the average estimate of $489.71 thousand [4] - The aggregate sales value of homes in backlog was $1.56 billion, compared to the estimated $1.59 billion [4] - Homes delivered totaled 1,976, which was lower than the average estimate of 2,221 [4] - Financial services revenue was $31.52 million, slightly above the average estimate of $31.40 million, representing a year-over-year increase of 16.9% [4] - Homebuilding revenue was $940.03 million, below the average estimate of $1.09 billion, reflecting a year-over-year decline of 7.5% [4] Market Performance - Shares of M/I Homes have returned -7.4% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - The Company reported pre-tax income of $146.1 million, a 19% decrease from $180.2 million in Q1 2024, and net income of $111.2 million ($3.98 per diluted share), down from $138.1 million ($4.78 per diluted share) in the same period last year [4][8]. - The Company achieved a gross margin of 25.9% and a pre-tax profit margin of 15% [6][8]. - Shareholders' equity reached a record $3 billion, a 14% increase from the previous year, with a book value of $112 per share [7][8]. - Financial services pre-tax income increased to $16.1 million from $12.3 million in Q1 2024 [19][20]. - The Company repurchased $50 million of common stock during the quarter [8]. Sales and Deliveries - Homes delivered decreased by 8% to 1,976 homes compared to 2,158 homes in Q1 2024, while new contracts fell by 10% to 2,292 from 2,547 [5][8]. - Total new contracts decreased by 10% from 2,547 in Q1 2024 to 2,292 in Q1 2025 [23]. - Homes delivered fell by 8% from 2,158 in Q1 2024 to 1,976 in Q1 2025 [23]. - The cancellation rate increased to 10% in Q1 2025 from 8% in Q1 2024 [5][8]. Backlog and Sales Value - The backlog sales value at March 31, 2025, was $1.56 billion, a 13% decrease from $1.79 billion a year ago, with backlog units down 16% to 2,847 homes [5][8]. - The backlog increased to 2,847 units valued at $1,559 million, with an average sales price of $548,000, compared to 3,391 units valued at $1,789 million and an average sales price of $528,000 in Q1 2024 [23]. Regional Performance - Northern region's new contracts decreased by 8% from 1,162 in Q1 2024 to 1,065 in Q1 2025 [23]. - Southern region's homes delivered dropped by 13% from 1,315 in Q1 2024 to 1,150 in Q1 2025 [23]. - Northern region's average sales price for backlog increased from $525,000 in Q1 2024 to $556,000 in Q1 2025 [23]. - Southern region's average sales price for backlog increased from $530,000 in Q1 2024 to $540,000 in Q1 2025 [23]. Land Position - Total land position increased from 47,457 lots in Q1 2024 to 51,097 lots in Q1 2025 [23]. - Total lots owned increased from 23,826 in Q1 2024 to 25,210 in Q1 2025 [23]. - Total lots under contract rose from 23,631 in Q1 2024 to 25,887 in Q1 2025 [23]. Community Growth - M/I Homes plans to grow its community count by an average of 5% this year, with 226 active communities as of March 31, 2025 [7][8].

Core Insights - The company reported a decrease in pre-tax income and net income for the first quarter of 2025 compared to the same period in 2024, with pre-tax income at $146.1 million and net income at $111.2 million, translating to $3.98 per diluted share [2][4][8]. Financial Performance - Homes delivered decreased by 8% to 1,976 homes from 2,158 homes in the first quarter of 2024 [3][8]. - Revenue fell by 7% to $976 million [8]. - The gross margin was reported at 25.9%, with a pre-tax profit margin of 15% and a return on equity of 19% [4][8]. - The cancellation rate increased to 10% in the first quarter of 2025 from 8% in the same quarter of 2024 [3][8]. Contracts and Backlog - New contracts totaled 2,292, down 10% from 2,547 in the first quarter of 2024 [3][8]. - The backlog at March 31, 2025, had a total sales value of $1.56 billion, a 13% decrease from the previous year, with backlog units down 16% to 2,847 homes [3][8]. Balance Sheet and Cash Position - The company achieved a record net worth of $3 billion, a 14% increase from a year ago, with a book value of $112 per share [5][8]. - The company ended the quarter with $776 million in cash and no borrowings under its $650 million unsecured borrowing line [5][8]. - Homebuilding debt-to-capital ratio stood at 19%, with a net debt-to-capital ratio of negative 3% [5][8]. Operational Highlights - The company operated 226 communities as of March 31, 2025, compared to 219 communities a year earlier, and plans to grow community count by an average of 5% this year [5][8]. - The average sales price of homes in backlog was $548,000, up from $528,000 a year ago [3][8].

Core Viewpoint - Analysts forecast a quarterly earnings per share (EPS) of $4.16 for M/I Homes, indicating a year-over-year decline of 13%, while revenues are expected to reach $1.12 billion, reflecting a 7.1% increase compared to the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts predict 'Revenue - Financial services revenue' to be $31.40 million, a year-over-year increase of 16.5% [4] - The forecast for 'Revenue - Homebuilding revenue - Housing revenue' is $1.09 billion, indicating a 7% year-over-year change [4] - The 'Average home closing price' is expected to reach $489.71 thousand, up from $471 thousand in the same quarter last year [4] Homes Delivered and Contracts - The estimated 'Homes delivered - Total' is 2,221, compared to 2,158 in the same quarter last year [5] - Analysts expect 'New contracts - Total' to be 2,599, an increase from 2,547 year-over-year [5] Backlog and Active Communities - The 'Average sales price of homes in backlog - Total Homebuilding Regions' is projected at $547.03 thousand, up from $528 thousand in the same quarter last year [6] - The consensus for 'Number of active communities (Average community count)' is 224, compared to 216 in the previous year [6] Aggregate Sales and Backlog - The consensus estimate for 'Aggregate sales value of homes in backlog - Total Homebuilding Regions' is $1.59 billion, down from $1.79 billion in the same quarter last year [7] - Analysts suggest 'Homes in backlog' will likely reach 2,910, compared to 3,391 year-over-year [7] Stock Performance - Over the past month, M/I Homes shares have declined by 11.1%, while the Zacks S&P 500 composite has decreased by 6.3% [7]