M/I Homes, Inc. (MHO) Bundle
A Brief History of M/I Homes, Inc.
M/I Homes, Inc. has experienced significant growth and expansion in the homebuilding industry since its inception. As of 2024, the company has reported robust financial performance driven by increased demand and strategic operational improvements.
Financial Performance in 2024
During the third quarter of 2024, M/I Homes achieved record total revenue of $1.14 billion, with $1.11 billion coming from homes delivered, $1.6 million from land sales, and $30 million from financial services operations. This reflects a 10% increase in revenue from homes delivered compared to the same period in 2023, primarily due to an 8% increase in the number of homes delivered (175 units) and a 2% rise in the average sales price of homes delivered.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $1.14 billion | $1.03 billion | 10% |
| Homes Delivered | 2,271 | 2,096 | 8% |
| Average Sales Price | $489,000 | $481,000 | 2% |
| Net Income | $145.4 million | $139 million | 5% |
For the nine months ended September 30, 2024, the company reported total revenue of $3.30 billion, with $3.20 billion from homes delivered. The net income for this period was $430.3 million, or $14.99 per diluted share, representing a 19% increase year-over-year.
Operational Highlights
M/I Homes delivered 6,653 homes in the first nine months of 2024, a 9% increase from the previous year. The company saw a 7% increase in new contracts, which reached 6,825 contracts in 2024 compared to 6,389 in 2023.
| Region | Homes Delivered | New Contracts | Backlog |
|---|---|---|---|
| Northern Region | 2,809 | 3,054 | 1,493 |
| Southern Region | 3,844 | 3,771 | 1,681 |
| Total | 6,653 | 6,825 | 3,174 |
Financial Services Growth
The financial services segment also saw significant growth, with revenues increasing by 27% to an all-time quarterly record of $30 million in Q3 2024. This was due to a 15% increase in loan originations, rising from 1,469 in Q3 2023 to 1,695 in Q3 2024.
Liquidity and Capital Resources
As of September 30, 2024, M/I Homes reported $719.9 million in cash, cash equivalents, and restricted cash. The company had no borrowings outstanding under its $650 million credit facility, providing $564.8 million available for future projects. Additionally, M/I Homes had outstanding notes payable totaling $935.4 million, with $235.4 million due within 12 months.
Market Conditions and Future Outlook
The overall economic environment, characterized by declining inflation rates and recent interest rate cuts, is expected to enhance housing affordability. The annual inflation rate in the U.S. was reported at 2.4% in September 2024, down from 3.4% in December 2023. Mortgage interest rates, which hovered around 6.1% as of September 30, 2024, are anticipated to support increased demand in the housing market.
M/I Homes continues to monitor market conditions and adjust its strategies to optimize its performance and capitalize on growth opportunities in the homebuilding sector.
A Who Owns M/I Homes, Inc. (MHO)
Shareholder Structure
As of 2024, M/I Homes, Inc. (MHO) has a diversified shareholder structure, comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of M/I Homes, Inc. as of the latest available data:
| Shareholder | Percentage Ownership | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 12.5% | Institutional Investor |
| The Vanguard Group, Inc. | 10.7% | Institutional Investor |
| FMR LLC (Fidelity) | 8.3% | Institutional Investor |
| Dimensional Fund Advisors LP | 6.9% | Institutional Investor |
| State Street Corporation | 5.8% | Institutional Investor |
| Other Institutional Investors | 35.0% | Various |
| Individual Shareholders | 20.8% | Individual Investors |
Recent Stock Performance
M/I Homes, Inc. has demonstrated strong financial performance in 2024. The stock price has shown significant appreciation, reflecting investor confidence. The following figures outline the stock performance metrics:
- Stock Price (as of September 30, 2024): $105.00
- Market Capitalization: Approximately $2.85 billion
- 52-Week Range: $75.00 - $110.00
- Dividend Yield: 1.2%
Financial Highlights
For the three months ending September 30, 2024, M/I Homes reported the following financial results:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $1.14 billion |
| Net Income | $145.4 million |
| Income Before Income Taxes | $188.7 million |
| Earnings Per Share (Diluted) | $5.10 |
| Shareholders' Equity | $2.85 billion |
| Book Value Per Share | $105.00 |
| Gross Margin | 27.1% |
Ownership Trends
Analysis of ownership trends reveals a growing interest from institutional investors, which reflects confidence in M/I Homes' business model and market strategy. The increase in institutional ownership from 2023 to 2024 indicates positive sentiment in the housing market.
Conclusion on Shareholder Dynamics
The shareholder dynamics of M/I Homes, Inc. highlight a well-balanced composition of institutional and individual investors, with significant institutional backing. This structure supports the company's strategic initiatives and operational growth in the competitive homebuilding sector.
M/I Homes, Inc. (MHO) Mission Statement
M/I Homes, Inc. (MHO) aims to deliver exceptional customer service and high-quality homes while maintaining a commitment to sustainability and community development. The company focuses on creating a positive home-buying experience through innovative design, superior craftsmanship, and a dedication to enhancing the lives of its customers.
Financial Performance Overview
As of September 30, 2024, M/I Homes reported significant financial results showcasing its operational effectiveness and market position.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $1.14 billion | $1.05 billion | $3.30 billion | $3.06 billion |
| Homes Delivered | 2,271 | 2,096 | 6,653 | 6,093 |
| Net Income | $145.4 million | $139.0 million | $430.3 million | $360.1 million |
| Earnings per Share (Diluted) | $5.10 | $4.82 | $14.99 | $12.58 |
| Gross Margin | 27.1% | 26.9% | 27.3% | 25.3% |
| New Contracts | 2,023 | 2,021 | 6,825 | 6,389 |
Market Position and Community Development
M/I Homes continues to expand its footprint by actively developing new communities. In the first nine months of 2024, the company opened 57 new communities and closed 53, resulting in a net increase in active communities.
| Region | Homes Delivered (YTD 2024) | Average Sales Price | Active Communities (End of Period) |
|---|---|---|---|
| Northern Region | 2,809 | $487,000 | 88 |
| Southern Region | 3,844 | $476,000 | 129 |
| Total | 6,653 | $481,000 | 217 |
Customer Financing and Services
M/I Financial plays a crucial role in the company's operations, with a significant portion of homes delivered financed through its services. Approximately 89% of homes delivered in Q3 2024 were financed through M/I Financial, reflecting a strong capture rate in the mortgage market.
| Financial Services Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Loans Originated | 1,695 | 1,469 |
| Revenue | $30.0 million | $23.6 million |
| Operating Income | $8.5 million | $6.2 million |
Strategic Objectives for 2024
M/I Homes is committed to strategic objectives that focus on sustainable growth, operational efficiency, and enhancing customer satisfaction:
- Managing land spend and inventory levels
- Opening new communities
- Maintaining a strong balance sheet
- Enhancing customer service and product quality
- Continuously evaluating market conditions for adaptive strategies
With a robust financial foundation and a clear mission statement, M/I Homes is well-positioned to navigate the evolving housing market while fulfilling its commitment to quality and customer satisfaction.
How M/I Homes, Inc. (MHO) Works
Company Overview
M/I Homes, Inc. operates as a builder of single-family homes in the United States, focusing on various markets primarily in the Northern and Southern regions. The company engages in the acquisition and development of land, construction of homes, and providing financial services through its subsidiary, M/I Financial. As of September 30, 2024, M/I Homes had approximately 52,200 lots under control, representing a six-year supply based on the past twelve months of homes delivered.
Financial Performance
For the third quarter of 2024, M/I Homes reported record total revenue of $1.14 billion, comprised of:
- Homes delivered: $1.11 billion
- Land sales: $1.6 million
- Financial services operations: $30 million
This represents a 10% increase in revenue from homes delivered compared to the same period in 2023, driven primarily by an 8% increase in the number of homes delivered (175 units) and a 2% increase in average sales price per home delivered ($8,000).
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $1.14 billion | $1.05 billion | $3.30 billion | $3.06 billion |
| Homes Delivered | 1,015 units | 741 units | 2,809 units | 2,321 units |
| Net Income | $145.4 million | $139 million | $430.3 million | $360.1 million |
| Earnings Per Share | $5.10 | $4.82 | $14.99 | $12.58 |
Operational Insights
M/I Homes' absorption pace of sales per community for the third quarter of 2024 was 3.2 per month, a slight decrease from 3.4 per month in the previous year. The company opened 57 new communities and closed 53 during the nine months ended September 30, 2024, resulting in 217 active communities at the end of the quarter.
Financial Services Segment
The financial services segment of M/I Homes generated $30 million in revenue during the third quarter of 2024, reflecting a 27% increase from $23.6 million in Q3 2023. This growth was supported by a 15% increase in the number of loans originated, rising from 1,469 in Q3 2023 to 1,695 in Q3 2024, and an increase in the average loan amount from $394,000 to $403,000.
Debt and Liquidity
As of September 30, 2024, M/I Homes had no outstanding borrowings under its $650 million credit facility and $85.2 million of letters of credit outstanding, leaving $564.8 million available. The company recorded cash and cash equivalents of $719.9 million, down from $732.6 million at the end of 2023. M/I Homes managed its liquidity by maintaining a strong balance sheet and controlling spending on land acquisitions and development.
Segmented Revenue Analysis
The following table outlines the revenue and operating income for M/I Homes' Northern and Southern regions for the third quarter of 2024:
| Region | Revenue (Q3 2024) | Operating Income (Q3 2024) | Homes Delivered (Q3 2024) |
|---|---|---|---|
| Northern | $498.5 million | $75.4 million | 1,015 units |
| Southern | $614.4 million | $114.1 million | 1,256 units |
Backlog and Contracts
At the end of Q3 2024, M/I Homes had a backlog of 1,493 homes, an increase from 1,397 homes in Q3 2023. The average sales price of homes in backlog rose to $538,000, up from $521,000 in the prior year. New contracts remained stable at 2,023 for Q3 2024, matching the previous year's figures.
Shareholder Equity
As of September 30, 2024, M/I Homes reported shareholders' equity of $2.85 billion, with a book value per common share of $105. The company has been actively repurchasing shares, having repurchased $125.8 million worth of common shares during the nine months ended September 30, 2024.
How M/I Homes, Inc. (MHO) Makes Money
Revenue Sources
M/I Homes generates revenue primarily through three main segments: home sales, land sales, and financial services. As of the third quarter of 2024, the breakdown of revenue is as follows:
| Revenue Source | Q3 2024 Revenue (in millions) | Year-to-Date Revenue (in millions) |
|---|---|---|
| Homes Delivered | $1,110 | $3,200 |
| Land Sales | $1.6 | $11.8 |
| Financial Services | $30.0 | $87.7 |
| Total Revenue | $1,141.6 | $3,300 |
Homes Delivered
In Q3 2024, M/I Homes delivered a total of 2,271 homes, marking an 8% increase compared to the same quarter in the previous year. The number of homes delivered year-to-date reached 6,653, a 9% increase from the same period in 2023. The average sales price of homes delivered was $489,000, reflecting a slight increase of $8,000 per home delivered compared to the previous year.
Financial Services Segment
M/I Homes' financial services segment reported significant growth, with revenues increasing 27% year-over-year to $30.0 million in Q3 2024. This growth was attributed to higher margins on loans sold and a 15% increase in the number of loans originated, totaling 1,695 loans in Q3 2024 compared to 1,469 in Q3 2023. The average loan amount also rose to $403,000 from $394,000 during the same period.
| Financial Services Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Loans Originated | 1,695 | 1,469 |
| Value of Loans Originated (in millions) | $683.1 | $578.2 |
| Revenue (in millions) | $30.0 | $23.6 |
Land Sales
Land sales contributed $1.6 million in Q3 2024, a decrease from $14.4 million in the same quarter of 2023. The decline in land sales was due to fewer land transactions during the current year compared to the previous year.
Operating Income and Profitability
M/I Homes achieved a record operating income of $188.7 million in Q3 2024, a 6% increase from $178.0 million in Q3 2023. For the first nine months of 2024, income before income taxes reached $563.1 million, compared to $469.3 million in the same period of 2023, reflecting a year-to-date record. The net income for Q3 2024 was $145.4 million, or $5.10 per diluted share, compared to $139.0 million, or $4.82 per diluted share, in Q3 2023.
| Income Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Income Before Income Taxes (in millions) | $188.7 | $178.0 |
| Net Income (in millions) | $145.4 | $139.0 |
| Earnings Per Diluted Share | $5.10 | $4.82 |
Backlog and New Contracts
As of September 30, 2024, M/I Homes had a backlog of 3,174 homes, down from 3,433 homes at the same time in 2023. New contracts for the nine months ended September 30, 2024, were 6,825, a 7% increase from 6,389 during the same period in 2023.
Geographical Performance
The performance across M/I Homes’ regions in Q3 2024 was as follows:
| Region | Homes Delivered | New Contracts | Average Sales Price (in thousands) |
|---|---|---|---|
| Northern Region | 1,015 | 890 | $490 |
| Southern Region | 1,256 | 1,133 | $489 |
Cost Structure
For the nine months ended September 30, 2024, M/I Homes recorded selling, general and administrative expenses of $100.2 million, up from $86.2 million in the same period in 2023. The increase was primarily due to higher variable selling expenses and compensation-related costs.
Liquidity and Capital Resources
As of September 30, 2024, M/I Homes had $719.9 million in cash and cash equivalents, a decrease from December 31, 2023. The company used proceeds from home deliveries, mortgage loan sales, and borrowings to fund its operations and investments.
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Resources:
- M/I Homes, Inc. (MHO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of M/I Homes, Inc. (MHO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View M/I Homes, Inc. (MHO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.