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Jun 30, 2020

M/I Homes Q2 2020 Earnings Report

M/I Homes reported record-setting results driven by increased new contracts, backlog units, and home deliveries.

Key Takeaways

M/I Homes announced record second-quarter results, with new contracts increasing by 31%, backlog units up by 30%, and home deliveries rising by 19%. Revenue increased by 15% to $714 million, and net income increased by 80% to $54.5 million ($1.89 per diluted share).

New contracts increased 31% to 2,261 contracts, an all-time quarterly record.

Backlog units increased 30% to 3,691, an all-time quarterly record.

Revenue increased 15% to a second quarter record of $714 million.

Net income of $54.5 million ($1.89 per diluted share), an 80% increase compared to 2019.

Total Revenue
$714M
Previous year: $624M
+14.5%
EPS
$1.89
Previous year: $1.08
+75.0%
New Contracts
2.26K
Previous year: 1.73K
+30.6%
Backlog Units
3.69K
Previous year: 2.85K
+29.7%
Homes Delivered
1.84K
Previous year: 1.54K
+19.3%
Gross Profit
$156M
Previous year: $120M
+30.5%
Cash and Equivalents
$94M
Previous year: $20.4M
+361.1%
Free Cash Flow
$106M
Previous year: $32.1M
+228.6%
Total Assets
$2.33B
Previous year: $2.09B
+11.4%

M/I Homes

M/I Homes

M/I Homes Revenue by Segment

Forward Guidance

Economic conditions remain uncertain due to the on-going impact of COVID-19; accordingly, the company will continue to monitor conditions closely.

Positive Outlook

  • Company ended the quarter with shareholders’ equity of $1.1 billion.
  • Company has a cash balance of $94 million.
  • Company has no borrowings on our $500 million credit facility.
  • Company had a strong, record-setting quarter.
  • Company was able to maintain its construction schedule in most of its markets.

Challenges Ahead

  • Economic conditions remain uncertain due to the on-going impact of COVID-19.
  • New contracts declined substantially in late March and early April.
  • There was significant economic and social instability in our country and globally, precipitated by an unprecedented health crisis.
  • Cancellation rate was 14%.
  • The company will continue to monitor conditions closely.