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Mar 31, 2022

M/I Homes Q1 2022 Earnings Report

M/I Homes reported record revenue and pre-tax income for Q1 2022, driven by higher average sales prices and improved gross margins, despite challenges from labor and supply chain issues.

Key Takeaways

M/I Homes announced strong first quarter results with record revenue of $860.8 million, a 4% increase year-over-year. Pre-tax income increased by 11% to $122.3 million, and net income rose by 8% to $91.8 million ($3.16 per diluted share). The company's backlog also reached record levels, with backlog units increasing by 1% to 5,526 and backlog sales value increasing by 17% to $2.8 billion.

Revenue increased 4% to a record $860.8 million.

Pre-tax income increased 11% to a record $122.3 million.

Net income increased 8% to a record $91.8 million, or $3.16 per diluted share.

Backlog sales value increased 17% to a record $2.8 billion.

Total Revenue
$861M
Previous year: $829M
+3.9%
EPS
$3.16
Previous year: $2.85
+10.9%
New Contracts
2.51K
Previous year: 3.11K
-19.1%
Backlog Units
5.53K
Previous year: 5.48K
+0.9%
Homes Delivered
1.82K
Previous year: 2.02K
-9.7%
Gross Profit
$213M
Previous year: $202M
+5.4%
Cash and Equivalents
$219M
Previous year: $293M
-25.4%
Free Cash Flow
$68.1M
Previous year: $75M
-9.2%
Total Assets
$3.31B
Previous year: $2.71B
+22.0%

M/I Homes

M/I Homes

M/I Homes Revenue by Segment

Forward Guidance

M/I Homes anticipates another year of strong results in 2022, supported by a record backlog, strong backlog margins, and a record number of new community openings planned for the year.

Positive Outlook

  • Record backlog provides a solid foundation for future revenue.
  • Strong backlog margins are expected to contribute to profitability.
  • A record number of new community openings are planned for the year, expanding the company's footprint.
  • Demand for new homes remains strong despite increasing interest rates.
  • Shareholders equity of $1.7 billion.

Challenges Ahead

  • Unprecedented labor challenges are impacting deliveries.
  • Supply chain issues are creating delays and increasing costs.
  • Community count declined by 6%.
  • Rising interest rates could potentially dampen demand in the future.
  • The cancellation rate was 7%.