M/I Homes Reports Fourth Quarter and Year-End Results

COLUMBUS, Ohio, Feb. 1, 2018 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for its fourth quarter and year ended December 31, 2017.

2017 Fourth-Quarter Results:

• New contracts increased 22% to a record 1,220 contracts
• Revenue increased 19% to a record $621.7 million
• Homes delivered increased 12% to 1,584 - the highest in ten years
• Pre-tax income increased to $34.1 million from $33.7 million in 2016; including $7.7 million and $4.0 million of impairment charges, respectively; excluding impairment charges, pre-tax income improved 11% to $41.8 million
• Net income of $15.9 million ($0.53 per diluted share), including a deferred tax asset re-measurement charge of $6.5 million ($0.21 per diluted share) as a result of the Tax Cuts and Jobs Act; 2016 net income was $20.6 million ($0.67 per diluted share)
• Diluted earnings per share increased 20% to $0.90 per share excluding the impact of the deferred tax asset re-measurement and the impact of the impairment charges in each year
• Backlog sales value increased 15% to $791 million, and  backlog units increased 12%

2017 Full-Year Results:

• Record revenue of $1.96 billion, an increase of 16%
• Record homes delivered of 5,089, a 14% increase
• Record new contracts of 5,299, an increase of  11%
• Pre-tax income of $120.3 million, a 31% increase compared to $91.8 million in 2016
• Pre-tax income in 2017 increased 19% to $136.5 million from $115.2 million in 2016, excluding stucco-related repair and impairment charges in each year
• Net income of  $72.1 million ($2.26 per diluted share) compared to $56.6 million ($1.84 per diluted share) in 2016
• Diluted earnings per share were $2.88 compared to $2.32 per share in 2016 - a 24% increase, excluding the impact of the deferred tax asset re-measurement and a $2.3 million equity adjustment related to the 2017 redemption of preferred shares in the third quarter of 2017, along with stucco-related repair and impairment charges in each year

For the fourth quarter of 2017, the Company reported net income of $15.9 million, or $0.53 per diluted share. This compares to net income of $20.6 million, or $0.67 per diluted share, in 2016. For the year ended December 31, 2017, the Company reported net income of $72.1 million, or $2.26 per diluted share, compared to net income of $56.6 million or $1.84 per diluted share in 2016.  2017's net income includes the impact of a deferred tax asset re-measurement ($6.5 million), after-tax stucco-related repair costs ($5.4 million) and after-tax impairment charges ($4.9 million). Exclusive of these charges and after-tax stucco-related repair and impairment charges in 2016, net income increased 25% to $89.0 million compared to $71.1 million in 2016.

New contracts for 2017's fourth quarter reached a fourth quarter record-high of 1,220, increasing 22% from 2016's fourth quarter of 999.  For 2017, new contracts also reached a record-high of 5,299, an 11% increase over 2016's new contracts of 4,755.  M/I Homes had 188 active communities at December 31, 2017 compared to 178 a year ago. The Company's cancellation rate was 13% in 2017's fourth quarter. Homes delivered of 1,584 in 2017's fourth quarter were 12% higher than 2016's 1,416 homes delivered.  Homes delivered for the twelve months ended December 31, 2017 increased 14% to a record-high 5,089 from 2016's deliveries of 4,482. Homes in backlog increased 12% at December 31, 2017 to 2,014 units, with a sales value of $791 million (a 15% increase over last year), and the average sales price in backlog increased 3% to a record-high of $393,000.  At December 31, 2016, the sales value of the 1,804 homes in backlog was $685 million, with an average sales price of $380,000.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We had strong 2017 results highlighted by all-time Company records for revenue, new contracts, and homes delivered.   These records led us to a 25% increase in our 2017 net income, excluding the non-operating items.  For the first time in our history, we exceeded 5,000 units in both homes delivered and new contracts while reaching nearly $2 billion in revenue.  Importantly, our revenue and earnings growth resulted from strong performances in many of our homebuilding divisions, combined with another record performance by our financial services business.  We also reached our highest year-end backlog level in more than 10 years, with a sales value of $791 million - a 15% increase over 2016."

Mr. Schottenstein continued, "We are excited about our business as we move into 2018.  We ended the year with $152 million of cash, no outstanding borrowings under our $475 million unsecured credit facility, shareholders' equity of $747 million and homebuilding debt to capital ratio of 46%.  We are well positioned for continued growth in 2018 with our strong year-end backlog and a significant number of planned new community openings."

The Company will broadcast live its earnings conference call today at 4:00 p.m. Eastern Time.  To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the "Investors" section of the site, and select "Listen to the Conference Call."  A replay of the call will continue to be available on our website through February 2019.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold over 105,600 homes.  The Company's homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and also currently uses the name Hans Hagen Homes in its Minneapolis/St. Paul, Minnesota market.  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as "expects," "anticipates," "targets," "envisions", "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements involve a number of risks and uncertainties.  Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defect, product liability and warranty claims and various governmental rules and regulations, as more fully discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission.  All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time.  We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.  However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.   However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

SOURCE M/I Homes, Inc.

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