M/I Homes, Inc. (NYSE: MHO) announced results for the three months ended March 31, 2016.
2016 First Quarter Highlights:
- Net income of $9.2 million ($0.30 per diluted share).
- Pre-tax income increased 34% to $14.0 million, excluding impact of land sales gross profit which was $700,000 in 2016 vs. $5.2 million in 2015.
- New contracts increased 19%.
- Homes delivered increased 22%; average closing price increased 9%.
- Backlog sales value increased 27% to $730 million; backlog units increased 22% to 1,969.
- Opening of new division in Sarasota, Florida.
For the first quarter of 2016, the Company reported net income of $9.2 million, or $0.30 per diluted share. This compares to net income of $9.6 million, or $0.31 per diluted share, for the first quarter of 2015. The first quarter of 2016 includes a $2.2 million pre-tax charge for stucco-related repairs in certain of our Florida communities and $700,000 of gross profit on land sales. 2015's first quarter results included $5.2 million of gross profit on land sales.
New contracts for the first quarter were 1,314, a 19% increase from the 1,108 recorded in 2015's first quarter. Homes delivered in the first quarter reached a first quarter record 876, an increase of 22% over the 717 reported for the same period of 2015. Homes in backlog at March 31, 2016 had a total sales value of $730 million, a 27% increase over a year ago, with backlog units of 1,969 and an average sales price of $371,000. At March 31, 2015, backlog sales value was $577 million, with backlog units of 1,613, and an average sales price of $358,000. M/I Homes had 181 active communities at March 31, 2016 compared to 153 at March 31, 2015. The Company's cancellation rate was 11% in the first quarter of 2016 compared to 13% in 2015's first quarter.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "We are pleased with our first quarter results as we are off to a strong start to 2016. We delivered a first quarter record 876 homes, 22% more than last year. New contracts increased 19% and our backlog sales value increased 27% to $730 million, with 356 more homes in backlog than a year ago. And, our pre-tax income, excluding land sales gross profit, increased by 34% due to increased closings, increased average sales price, and a 40 basis point improvement in our overhead expense ratio. We ended the quarter with our strongest first quarter backlog in ten years."
Mr. Schottenstein continued, "We are also very excited to announce our plans to open in Sarasota, Florida, our 15th housing division. We are confident that we can grow this new division and establish a meaningful presence. Given the strength of our backlog, our strong sales performance and planned new community openings, we are well positioned to have a very solid 2016."
The Company will broadcast live its earnings conference call today at 4:00 p.m. Eastern Time. To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the "Investors" section of the site, and select "Listen to the Conference Call." A replay of the call will continue to be available on our website through April 2017.
M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 95,000 homes. The Company's homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and also currently operates under the name Hans Hagen Homes in its Minneapolis/St. Paul, Minnesota market. The Company has home building operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.