M/I Homes, Inc. (NYSE:MHO) has reported its first quarter results for 2024, with several key metrics showing significant growth compared to the same period in 2023.
New contracts saw a substantial increase of 17%, rising to 2,547 from 2,171 in the first quarter of 2023. This surge in new contracts contributed to a record 8% increase in homes delivered, reaching 2,158 in the first quarter of 2024.
The company also achieved a noteworthy milestone in revenue, which rose by 5% to $1.05 billion, marking a first quarter record. Pre-tax income followed suit, increasing by 33% to $180.2 million, representing 17.2% of revenue and also setting a first quarter record.
Net income for the first quarter of 2024 reached a new high, rising by 34% to $138.1 million, equivalent to $4.78 per diluted share. This compares to net income of $103.1 million, or $3.64 per diluted share, reported for the first quarter of 2023.
Shareholders’ equity also reached a record level of $2.6 billion, marking a substantial 21% increase from a year ago. The company's backlog sales value increased to $1.8 billion, up 4% from the previous year, with backlog units increasing by 3% to 3,391 homes.
The company's Chief Executive Officer and President, Robert H. Schottenstein, expressed satisfaction with the first quarter's performance, highlighting the achievement of setting first quarter records in homes delivered, revenue, and income. He also noted the strong margins and returns, with gross margins improving by 360 basis points to 27%.
The company's financial condition was described as excellent, with a strong cash position of $870 million and zero borrowings on its $650 million credit facility. The homebuilding debt to capital ratio was reported at 21%, and the net-debt-to-capital ratio at negative 7%.
The press release also mentioned that the company had 219 communities at the end of March 2024, compared to 200 communities in the same period of 2023. Additionally, the company's cancellation rate for the first quarter of 2024 was reported at 8%, down from 13% in the first quarter of 2023.
M/I Homes, Inc. is a prominent homebuilder with operations in several U.S. states, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee.
The company's first quarter earnings conference call is scheduled to be broadcast live today at 10:30 a.m. Eastern Time.
Today the company's shares have moved 4.2% to a price of $124.44. For the full picture, make sure to review M/I Homes's 8-K report.
