M/I Homes today (July 31) reported a net loss of $42.6 million (-$30.5 per share) for the second quarter of 2007, compared to net income of $18.3 million ( $1.29 per diluted share) during the same period last year.

The loss included pre-tax charges of $72.1 million for land impairment, joint venture and acquisition write-offs. For the first half of the year, M/I has posted a loss of $40.4 million ($-2.89 per share).

Revenue was off 24.4% to $235.6 million for the second quarter and off 19.4% to $460.1 million for the first half of 2007.

Deliveries of new homes fell 24% to 755 for the quarter and 20% to 1,459 for the half. New contracts were down 10% to 688 for the second quarter; down 14% to 1,630 for the half. M/I had 161 active communities at June 30, 2007 compared to 165 at June 30, 2006.

M/I said it had 1,694 homes, worth $554 million, in backlog at the end of June, compared to 2,889 woth $1.025 billion last June.

"We continue to face challenging conditions in most of our markets," said Robert H. Schottenstein, M/I CEO. "Increasing inventory of new and existing homes, credit tightening and weakening consumer sentiment have led to further price competition and margin compression."

Schottenstein pointed out that M/I managed to produce gross margins of 22% and net income of approximately $7 million in the first half, minus impairments, and also reduced its owned-lot count by 9%.