M/I Homes Inc., based in Columbus, Ohio, today reported a net loss of $21.7 million for the third quarter of 2007, which, if the payment of $2.5 million in preferred share dividends is included, rises to $24.2 million.
The loss includes pre-tax charges of $33.4 million, comprised of land-related impairment and abandonment charges of $26.5 million, joint venture write-offs of $6.1 million and $0.8 million in severance costs.
For the quarter, sales were down 2% from last year to 561; deliveries were off 15% to 787; and homes in backlog was down 42% to 1,468 with a sales value of $481 million based on an average sales price of $327,000. M/I Homes had 159 active communities at the end of the quarter, down from 170 at the same time last year.
"Market conditions continue to be challenging," said Robert H. Schottenstein, CEO and president. "We remain focused on initiatives that include reducing our land and expense levels, improving our balance sheet, as well as continued improvements in our customer service and quality processes. We expect to deliver approximately 3,000 homes this year and further reduce our debt levels by year end. "
For the first nine-months of the year, new contracts declined 11% to 2,191 from 2,472 in 2006; deliveries decreased 18% to 2,246.