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Sep 30, 2022

M/I Homes Q3 2022 Earnings Report

M/I Homes reported record revenue, income, and earnings per share for the third quarter of 2022.

Key Takeaways

M/I Homes announced record financial results for the third quarter of 2022. Revenue increased by 12% to $1.0 billion, pre-tax income increased by 43% to $167 million, and net income increased by 45% to $132 million ($4.67 per diluted share).

Revenue increased 12% to $1.0 billion, a third quarter record.

Pre-tax income increased 43% to $167 million, a third quarter record.

Net income increased 45% to $132 million ($4.67 per diluted share).

Backlog sales value decreased 5% to $2.4 billion, with average sales price in backlog at an all-time record $533,000.

Total Revenue
$1.01B
Previous year: $904M
+12.0%
EPS
$4.67
Previous year: $3.27
+42.8%
New Contracts
1.35K
Previous year: 1.96K
-31.3%
Backlog Units
4.54K
Previous year: 5.41K
-16.1%
Homes Delivered
2.03K
Previous year: 2.05K
-0.9%
Gross Profit
$272M
Previous year: $222M
+22.6%
Cash and Equivalents
$67.8M
Previous year: $221M
-69.4%
Free Cash Flow
-$93.9M
Previous year: -$210M
-55.2%
Total Assets
$3.59B
Previous year: $3.05B
+17.8%

M/I Homes

M/I Homes

M/I Homes Revenue by Segment

Forward Guidance

There is much uncertainty concerning the general economy, and it is unclear when demand for new homes will improve. However, M/I Homes believes, over the long term, that housing markets will benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing. The company is well positioned to manage through these changing and uncertain times given the strength of their balance sheet, low debt levels, diverse product offerings and well-located communities.

Positive Outlook

  • Strong balance sheet
  • Low debt levels
  • Diverse product offerings
  • Well-located communities
  • Favorable demographic trends

Challenges Ahead

  • Uncertainty concerning the general economy
  • Decline in homebuyer demand
  • Impact of higher mortgage interest rates
  • Delayed closings due to Hurricane Ian
  • Unclear when demand for new homes will improve