M/I Homes reported a record first quarter pre-tax income of $180.2 million and record first quarter net income of $138.1 million, or $4.78 per diluted share. This compares to pre-tax income of $136.0 million and net income of $103.1 million, or $3.64 per diluted share, in first quarter 2023.

Homes delivered in the first quarter increased 8% to 2,158 homes, another first quarter record for M/I, compared to 2,007 homes delivered in 2023’s first quarter. New contracts for the first quarter of 2024 increased 17% to 2,547, compared to 2,171 in 2023.

“We had an exceptional first quarter setting first quarter records in homes delivered, revenue, and income. In addition, we were very pleased with our new contracts increasing by 17%, as well as producing strong margins and returns,” says Robert H. Schottenstein, CEO and president. “Our homes delivered increased 8% to a record 2,158, revenue increased 5% to a record $1.05 billion and our gross margins improved by 360 basis points to 27%. This resulted in pre-tax income increasing by 33% to a first quarter record of $180.2 million, 17.2% of revenue, and a 21% return on equity.”

At March 31, 2024, homes in backlog had a total sales value of $1.8 billion, a 4% increase from a year ago. Backlog units at March 31, 2024 increased 3% to 3,391 homes, with an average sales price of $528,000.

“During the quarter, we opened 21 new communities while closing 15. We currently estimate that our average 2024 community count will be about 10% higher than 2023,” Phillip Creek, CFO and executive vice president, said on the earnings call.

M/I Homes had 219 communities at March 31, 2024 compared to 200 communities at March 31, 2023. The company’s cancellation rate was 8% in the first quarter of 2024 compared to 13% in the first quarter of 2023.

Schottenstein adds, “Our financial condition is excellent. We ended the quarter with record shareholders’ equity of $2.6 billion, book value of $95 per share, cash of $870 million, zero borrowings on our $650 million credit facility, and a home building debt to capital ratio of 21%, and net-debt-to-capital ratio of negative 7%. Given our performance in the first quarter of 2024, our diverse product offerings and well-located communities, we are positioned to have a strong 2024.”