M/I Homes, Inc. (NYSE:MHO) has reported its second-quarter results for 2024, revealing several significant achievements. The company's homes delivered increased by 12% to 2,224, while revenue saw a notable 9% increase, reaching $1.1 billion, marking a second-quarter record.
The pre-tax income surged by 25%, reaching $194.1 million, which represents 17.5% of the revenue, also setting an all-time quarterly record. Additionally, net income increased by 24% to an all-time quarterly record of $146.7 million ($5.12 per diluted share).
The company's shareholders' equity reached a record $2.7 billion, marking a 19% increase from a year ago, with book value per share of $100. New contracts increased by 3% to 2,255, and backlog sales value increased to $1.82 billion, up 3%. M/I Homes also repurchased $50 million of common stock and achieved a return on equity of 21%.
In comparison to the second quarter of 2023, the company reported a significant improvement, with pre-tax income increasing from $155.4 million to $194.1 million, and net income rising from $118.0 million to $146.7 million. For the six months ended June 30, 2024, pre-tax income increased to a record $374.4 million, and net income increased to a record $284.8 million, compared to $291.3 million and $221.1 million for the same period of 2023, respectively.
The number of homes delivered in the second quarter of 2024 increased by 12% to 2,224 homes, compared to 1,990 homes delivered in the second quarter of 2023. New contracts for the second quarter of 2024 increased by 3% to 2,255 compared to 2,197 in 2023.
The total sales value of homes in backlog at June 30, 2024, increased by 3% to $1.82 billion, with backlog units at June 30, 2024, decreasing by 2% to 3,422 homes. The company had 211 communities at June 30, 2024, compared to 195 communities at June 30, 2023, and reported a cancellation rate of 10% in both the second quarter of 2024 and the second quarter of 2023.
Robert H. Schottenstein, Chief Executive Officer and President, expressed satisfaction with the strong second quarter, highlighting all-time quarterly records in income, gross margins, and pre-tax margins. He specifically noted the 9% increase in revenue, 28% gross margins, and a 25% increase in pre-tax income to an all-time record of $194.1 million, resulting in a solid 21% return on equity.
Schottenstein also emphasized the company's robust financial condition, including ending the quarter with record shareholders' equity of $2.7 billion, an increase of 19% from a year ago, and a book value of $100 per share.
The company will be conducting a live earnings conference call, providing further insights into its performance. M/I Homes, Inc. is a prominent homebuilder of single-family homes with operations in various locations across the United States.
Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $166.67. For the full picture, make sure to review M/I Homes's 8-K report.
