mho-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________________

Commission File Number 1-12434

M/I HOMES, INC.

(Exact name of registrant as specified in it charter)

Ohio

31-1210837

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4131 Worth Avenue, Suite 500, Columbus, Ohio 43219

(Address of principal executive offices) (Zip Code)

(614) 418-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $.01	MHO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. q

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

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☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common shares, par value $.01 per common share: 27,751,658 shares outstanding as of April 24, 2024.


M/I HOMES, INC.
FORM 10-Q

TABLE OF CONTENTS

PART 1.	FINANCIAL INFORMATION

	Item 1.	M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements

		Unaudited Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023	3

		Unaudited Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023	4

		Unaudited Condensed Consolidated Statement of Shareholders’ Equity for the Three Months Ended March 31, 2024 and 2023	5

		Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023	6

		Notes to Unaudited Condensed Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40

	Item 4.	Controls and Procedures	42

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	42

	Item 1A.	Risk Factors	42

	Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	42

	Item 3.	Defaults Upon Senior Securities	43

	Item 4.	Mine Safety Disclosures	43

	Item 5.	Other Information	43

	Item 6.	Exhibits	43

Signatures			44

M/I HOMES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(Dollars in thousands, except par values)	March 31, 2024		December 31, 2023


ASSETS:
Cash, cash equivalents and restricted cash	$	870,162	$	732,804
Mortgage loans held for sale	235,047		176,329
Inventory	2,774,165		2,797,151
Property and equipment - net	33,145		34,918
Investment in joint venture arrangements	59,146		44,011
Operating lease right-of-use assets	57,890		56,364
Deferred income tax asset	15,313		16,094
Goodwill	16,400		16,400

Other assets	150,683		148,369
TOTAL ASSETS	$	4,211,951	$	4,022,440

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	224,972	$	204,678
Customer deposits	92,516		85,128
Operating lease liabilities	59,163		57,566
Other liabilities	246,399		252,303

Community development district obligations	17,124		19,339
Obligation for consolidated inventory not owned	14,608		26,899

Notes payable bank - financial services operations	224,321		165,844





Senior notes due 2028 - net	397,072		396,879
Senior notes due 2030 - net	296,991		296,865
TOTAL LIABILITIES	$	1,573,166	$	1,505,501

Commitments and contingencies (Note 6)	—		—

SHAREHOLDERS’ EQUITY:

Common shares - $0.01 par value; authorized 58,000,000 shares at both March 31, 2024 and December 31, 2023; issued 30,137,141 shares at both March 31, 2024 and December 31, 2023	$	301	$	301
Additional paid-in capital	348,039		349,907
Retained earnings	2,439,409		2,301,348
Treasury shares - at cost - 2,385,483 and 2,375,842 shares at March 31, 2024 and December 31, 2023, respectively	(148,964)		(134,617)
TOTAL SHAREHOLDERS’ EQUITY	$	2,638,785	$	2,516,939
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,211,951	$	4,022,440

See Notes to Unaudited Condensed Consolidated Financial Statements.

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended March 31,
(In thousands, except per common share amounts)	2024		2023

Revenue	$	1,046,703	$	1,000,530
Costs and expenses:
Land and housing	$	763,360	$	765,904

General and administrative	56,084		50,960
Selling	53,940		49,080

Other income	—		(7)
Interest income, net of interest expense	(6,920)		(1,389)


Total costs and expenses	$	866,464	$	864,548

Income before income taxes	180,239		135,982

Provision for income taxes	42,178		32,916

Net income	$	138,061	$	103,066


Earnings per common 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

See Notes to Unaudited Condensed Consolidated Financial Statements.

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

Three Months Ended March 31, 2024




	Common Shares
	Shares Outstanding			Additional Paid-in Capital		Retained Earnings		Treasury Shares		Total Shareholders’ Equity
(Dollars in thousands)		Amount
Balance at December 31, 2023	27,761,299	$	301	$	349,907	$	2,301,348	$	(134,617)	$	2,516,939
Net income	—	—		—		138,061		—		138,061


Stock options exercised	135,300	—		(2,299)		—		7,794		5,495
Stock-based compensation expense	—	—		3,539		—		—		3,539
Repurchase of common shares	(200,000)	—		—		—		(25,278)		(25,278)
Deferral of executive and director compensation	—	—		29		—		—		29
Executive and director deferred compensation distributions	55,059	—		(3,137)		—		3,137		—
Balance at March 31, 2024	27,751,658	$	301	$	348,039	$	2,439,409	$	(148,964)	$	2,638,785

Three Months Ended March 31, 2023




	Common Shares
	Shares Outstanding			Additional Paid-in Capital		Retained Earnings		Treasury Shares		Total Shareholders’ Equity
(Dollars in thousands)		Amount
Balance at December 31, 2022	27,440,083	$	301	$	352,639	$	1,835,983	$	(118,198)	$	2,070,725
Net income	—	—		—		103,066		—		103,066

Stock options exercised	218,066	—		(3,118)		—		9,557		6,439
Stock-based compensation expense	—	—		2,023		—		—		2,023

Deferral of executive and director compensation	—	—		962		—		—		962
Executive and director deferred compensation distributions	57,467	—		(2,518)		—		2,518		—
Balance at March 31, 2023	27,715,616	$	301	$	349,988	$	1,939,049	$	(106,123)	$	2,183,215

See Notes to Unaudited Condensed Consolidated Financial Statements.

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended March 31,
(Dollars in thousands)	2024		2023
OPERATING ACTIVITIES:
Net income	$	138,061	$	103,066
Adjustments to reconcile net income to net cash (used in) provided by operating activities:


Equity in income from joint venture arrangements	—		(7)

Mortgage loan originations	(600,946)		(494,461)
Proceeds from the sale of mortgage loans	539,379		514,346
Fair value adjustment of mortgage loans held for sale	2,849		(3,975)

Capitalization of originated mortgage servicing rights	(1,127)		(1,390)
Amortization of mortgage servicing rights	355		523
Depreciation	3,304		3,214
Amortization of debt issue costs	808		660
Gain on sale of mortgage servicing rights	(2,613)		—

Stock-based compensation expense	3,539		2,023


Change in assets and liabilities:

Inventory	15,775		175,316
Other assets	(3,808)		(4,564)
Accounts payable	20,294		(20,171)
Customer deposits	7,388		4,682
Accrued compensation	(40,047)		(38,969)
Other liabilities	32,561		11,206
Net cash provided by operating activities	115,772