M/I Homes(MHO) - 2025 Q1 - Quarterly Report

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$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$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]