M/I Homes Inc., Columbus, Ohio (NYSE:MHO) on Thursday reported a net loss for the second quarter of $9.1 million (-$0.49 per share) compared to a net loss of $4.8 million (-$0.26 per share) during the second quarter of 2010. The results included $5.5 million of asset impairments, compared to $6.5 million in last year's quarter.
Analysts were expecting a loss of 21 cents per share, not including impairments.
Home building revenue fell 30% to $137.4 million as closings dropped 25.3% to 590. The average closing price declined 7.3% to $227,000.
New orders rose 5% to 635 as the company's community count rose to 115 from109 a year earlier and 111 at the close of the previous quarter. The cancellation rate was 20% in the second quarter, up from 16% in 2010's second quarter.
Homes in backlog at quarter's end were up 11% to 833 with a value of $214 million, up 7% from the year-ago quarter. The average sales price of homes in backlog fell to $257,000 from $267,000 at the end of last year's quarter.
M/I's land position rose to 10,287 lots, 7,287 owned and 3,000 optioned, from 9,561, 7,672 osned and 1,889 optioned, at the close of last year's quarter.
Adjusted gross margin improved to 17% from 16% in last year's quarter.SG&A fell 15.2% to $23.5 million.
The company ended the quarter with a cash balance of $113.8 million, including $45 million of unrestricted cash, and no borrowings on its $140 million revolving credit facility. Long-term debt increased 19% to $244.6 million. During the quarter, M/I closed on the acquisition of TriStone Homes in San Antonio, Texas. The debt-to-capital ratio at quarter's end was 37%.
"Housing conditions continued to be challenging during the second quarter,"said Robert H. Schottenstein, CEO and president. "While our new contracts improved over last year's second quarter, the spring selling season was not nearly as robust as many had expected. General economic uncertainty and caution by consumers, as well as tougher lending standards, are keeping many would-be homebuyers on the sidelines."
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