Today, M/I Homes, Inc. has released its 10-K report, causing a -3.8% movement in the company's shares, which are now trading at $119.96. M/I Homes, Inc. operates as a builder of single-family homes across several states and operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. The company designs, constructs, and sells single-family homes and attached townhomes, and also provides mortgage and title insurance services.
In the fiscal year ending December 31, 2023, M/I Homes, Inc. reported $732.8 million in cash, cash equivalents, and restricted cash, with $732.6 million of this amount comprised of unrestricted cash and cash equivalents. This represents a significant increase of $422.0 million in unrestricted cash and cash equivalents from December 31, 2022. The company used its cash for various purposes, including investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, short-term working capital, and debt service requirements.
During 2023, M/I Homes, Inc. delivered 8,112 homes, started 7,956 homes, ended the year with 4,375 homes under construction compared to 4,522 at the end of the previous year, and spent $343.5 million on land purchases and $512.1 million on land development. The company also had a total of 21,286 lots under contract, with an aggregate purchase price of approximately $1.1 billion, to be acquired from 2024 through 2030.
In terms of financial activities, the company generated $552.1 million of cash from operating activities, used $18.6 million of cash in investing activities, and used $112.2 million of cash in financing activities during 2023. Additionally, M/I Homes, Inc. repurchased $65.3 million of outstanding common shares under its 2021 Share Repurchase Program during 2023.
As of December 31, 2023, the company's ratio of homebuilding debt to capital was 22%, down from 25% at the end of the previous year. M/I Homes, Inc. believes that its cash flows from operating activities, along with its balance of unrestricted cash and borrowings available under its credit facilities, will be sufficient to fund its currently anticipated working capital needs, investment in land and land development, construction of homes, operating expenses, planned capital spending, and debt service requirements for at least the next twelve months.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,286 | $2,500 | $3,046 | $3,746 | $4,131 | $4,278 |
| Operating Margins | 7% | 7% | 10% | 14% | 15% | 15% |
| Net Margins | 5% | 5% | 8% | 11% | 12% | 11% |
| Net Income (M) | $108 | $128 | $240 | $397 | $491 | $490 |
| Net Interest Expense (M) | $20 | $21 | $10 | $2 | $2 | $2 |
| Depreciation & Amort. (M) | $11 | $12 | $13 | $13 | $13 | $13 |
| Diluted Shares (M) | 28 | 29 | 29 | 30 | 28 | 29 |
| Earnings Per Share | $3.7 | $4.48 | $8.23 | $13.28 | $17.24 | $17.2 |
| EPS Growth | n/a | 21.08% | 83.71% | 61.36% | 29.82% | -0.23% |
| Avg. Price | $27.88 | $32.7 | $37.61 | $59.45 | $47.06 | $120.26 |
| P/E Ratio | 7.32 | 7.14 | 4.49 | 4.36 | 2.67 | 6.8 |
| Free Cash Flow (M) | -$11 | $61 | $157 | -$42 | $175 | $685 |
| CAPEX (M) | $8 | $5 | $12 | $25 | $9 | $10 |
