2024 First Quarter Highlights:
- New contracts increased 17% to 2,547
- Homes delivered increased 8% to 2,158, a first quarter record
- Revenue increased 5% to
$1.05 billion , a first quarter record - Pre-tax income increased 33% to
$180.2 million , 17.2% of revenue and a first quarter record - Net income increased 34% to a first quarter record
$138.1 million ($4.78 per diluted share) - Shareholders' equity reached a record of
$2.6 billion , a 21% increase from a year ago, with book - value per share of
$95 -
Backlog sales value increased to
$1.8 billion , up 4% - Return on equity of 21%
The Company reported record first quarter pre-tax income of
Homes delivered in 2024's first quarter increased 8% to 2,158 homes, a first quarter record for the Company. This compares to 2,007 homes delivered in 2023's first quarter. New contracts for the first quarter of 2024 increased 17% to 2,547 compared to 2,171 in 2023. Homes in backlog at
The Company will broadcast live its earnings conference call today at
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 defects, 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
Summary Statement of Income (unaudited) (Dollars and shares in thousands, except per share amounts) |
|||
|
|||
|
Three Months Ended |
||
|
|
||
|
2024 |
|
2023 |
New contracts |
2,547 |
|
2,171 |
Average community count |
216 |
|
198 |
Cancellation rate |
8 % |
|
13 % |
Backlog units |
3,391 |
|
3,301 |
Backlog sales value |
$ 1,789,340 |
|
$ 1,724,550 |
Homes delivered |
2,158 |
|
2,007 |
Average home closing price |
$ 471 |
|
$ 486 |
|
|
|
|
Homebuilding revenue: |
|
|
|
Housing revenue |
$ 1,016,513 |
|
$ 974,946 |
Land revenue |
3,228 |
|
303 |
Total homebuilding revenue |
$ 1,019,741 |
|
$ 975,249 |
|
|
|
|
Financial services revenue |
26,962 |
|
25,281 |
Total revenue |
$ 1,046,703 |
|
$ 1,000,530 |
|
|
|
|
Cost of sales - operations |
763,360 |
|
765,904 |
Gross margin |
$ 283,343 |
|
$ 234,626 |
General and administrative expense |
56,084 |
|
50,960 |
Selling expense |
53,940 |
|
49,080 |
Operating income |
$ 173,319 |
|
$ 134,586 |
Other income |
— |
|
(7) |
Interest income, net of interest expense |
(6,920) |
|
(1,389) |
Income before income taxes |
$ 180,239 |
|
$ 135,982 |
Provision for income taxes |
42,178 |
|
32,916 |
Net income |
$ 138,061 |
|
$ 103,066 |
|
|
|
|
Earnings per share: |
|
|
|
Basic |
$ 4.92 |
|
$ 3.73 |
Diluted |
$ 4.78 |
|
$ 3.64 |
|
|
|
|
Weighted average shares outstanding: |
|
|
|
Basic |
28,052 |
|
27,602 |
Diluted |
28,888 |
|
28,305 |
Summary Balance Sheet and Other Information (unaudited) (Dollars in thousands, except per share amounts) |
|||
|
|||
|
As of |
||
|
|
||
|
2024 |
|
2023 |
Assets: |
|
|
|
Total cash, cash equivalents and restricted cash (1) |
$ 870,162 |
|
$ 542,564 |
Mortgage loans held for sale |
235,047 |
|
226,629 |
Inventory: |
|
|
|
Lots, land and land development |
1,448,459 |
|
1,279,673 |
Land held for sale |
136 |
|
17,959 |
Homes under construction |
1,169,791 |
|
1,190,519 |
Other inventory |
155,779 |
|
169,258 |
Total Inventory |
$ 2,774,165 |
|
$ 2,657,409 |
|
|
|
|
Property and equipment - net |
33,145 |
|
37,419 |
Investments in joint venture arrangements |
59,146 |
|
49,031 |
Operating lease right-of-use assets |
57,890 |
|
59,787 |
|
16,400 |
|
16,400 |
Deferred income tax asset |
15,313 |
|
18,019 |
Other assets |
150,683 |
|
155,112 |
Total Assets |
$ 4,211,951 |
|
$ 3,762,370 |
|
|
|
|
Liabilities: |
|
|
|
Debt - Homebuilding Operations: |
|
|
|
Senior notes due 2028 - net |
$ 397,072 |
|
$ 396,298 |
Senior notes due 2030 - net |
296,991 |
|
296,487 |
Total Debt - Homebuilding Operations |
$ 694,063 |
|
$ 692,785 |
|
|
|
|
Notes payable bank - financial services operations |
224,321 |
|
223,618 |
Total Debt |
$ 918,384 |
|
$ 916,403 |
|
|
|
|
Accounts payable |
224,972 |
|
208,426 |
Operating lease liabilities |
59,163 |
|
60,763 |
Other liabilities |
370,647 |
|
393,563 |
Total Liabilities |
$ 1,573,166 |
|
$ 1,579,155 |
|
|
|
|
Shareholders' Equity |
2,638,785 |
|
2,183,215 |
Total Liabilities and Shareholders' Equity |
$ 4,211,951 |
|
$ 3,762,370 |
|
|
|
|
Book value per common share |
$ 95.09 |
|
$ 78.77 |
Homebuilding debt to capital ratio (2) |
21 % |
|
24 % |
|
|
(1) |
Includes |
(2) |
The ratio of homebuilding debt to capital is calculated as the carrying value of our homebuilding debt outstanding divided by the sum of the carrying value of our homebuilding debt outstanding plus shareholders' equity. |
Selected Supplemental Financial and Operating Data (unaudited) (Dollars in thousands) |
|||
|
|||
|
Three Months Ended |
||
|
|
||
|
2024 |
|
2023 |
Cash provided by operating activities |
$ 115,772 |
|
$ 251,499 |
Cash used in investing activities |
$ (17,108) |
|
$ (4,793) |
Cash provided by (used in) financing activities |
$ 38,694 |
|
$ (15,684) |
|
|
|
|
Land/lot purchases |
$ 107,660 |
|
$ 45,646 |
Land development spending |
$ 119,367 |
|
$ 92,419 |
Land sale revenue |
$ 3,228 |
|
$ 303 |
Land sale gross profit (loss) |
$ 1,313 |
|
$ (3) |
|
|
|
|
Financial services pre-tax income |
$ 12,312 |
|
$ 12,641 |
Non-GAAP Financial Results (1) (Dollars in thousands) |
|||
|
|||
|
Three Months Ended |
||
|
|
||
|
2024 |
|
2023 |
Net income |
$ 138,061 |
|
$ 103,066 |
Add: |
|
|
|
Provision for income taxes |
42,178 |
|
32,916 |
Interest income - net |
(9,767) |
|
(3,673) |
Interest amortized to cost of sales |
8,302 |
|
8,040 |
Depreciation and amortization |
4,467 |
|
4,397 |
Non-cash charges |
3,539 |
|
2,073 |
Adjusted EBITDA |
$ 186,780 |
|
$ 146,819 |
|
|
(1) |
We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations. |
Selected Supplemental Financial and Operating Data |
||||||
|
||||||
|
NEW CONTRACTS |
|||||
|
|
Three Months Ended |
||||
|
|
|
||||
|
|
|
|
|
|
% |
Region |
|
2024 |
|
2023 |
|
Change |
Northern |
|
1,162 |
|
828 |
|
40 % |
Southern |
|
1,385 |
|
1,343 |
|
3 % |
Total |
|
2,547 |
|
2,171 |
|
17 % |
|
||||||
|
||||||
|
HOMES DELIVERED |
|||||
|
|
Three Months Ended |
||||
|
|
|
||||
|
|
|
|
|
|
% |
Region |
|
2024 |
|
2023 |
|
Change |
Northern |
|
843 |
|
797 |
|
6 % |
Southern |
|
1,315 |
|
1,210 |
|
9 % |
Total |
|
2,158 |
|
2,007 |
|
8 % |
|
BACKLOG |
|||||||||||
|
|
|
|
|
||||||||
|
|
|
Dollars |
|
Average |
|
|
|
|
Dollars |
|
Average |
Region |
Units |
|
(millions) |
|
Sales Price |
|
|
Units |
|
(millions) |
|
Sales Price |
Northern |
1,567 |
|
$ 822 |
|
$ 525,000 |
|
|
1,087 |
|
$ 560 |
|
$ 515,000 |
Southern |
1,824 |
|
$ 967 |
|
$ 530,000 |
|
|
2,214 |
|
$ 1,165 |
|
$ 526,000 |
Total |
3,391 |
|
$ 1,789 |
|
$ 528,000 |
|
|
3,301 |
|
$ 1,725 |
|
$ 522,000 |
|
LAND POSITION SUMMARY |
|||||||
|
|
|
|
|
||||
|
Lots |
Lots Under |
|
|
|
Lots |
Lots Under |
|
Region |
Owned |
Contract |
Total |
|
|
Owned |
Contract |
Total |
Northern |
7,005 |
9,279 |
16,284 |
|
|
7,712 |
7,214 |
14,926 |
Southern |
16,821 |
14,352 |
31,173 |
|
|
16,054 |
9,761 |
25,815 |
Total |
23,826 |
23,631 |
47,457 |
|
|
23,766 |
16,975 |
40,741 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/mi-homes-reports-2024-first-quarter-results-302125063.html
SOURCE