EX-99.1 3 exhibitrelease.htm EXHBIT 99.1 EARNINGS RELEASE Exhbit 99.1 Earnings Release
Exhibit 99.1
 
 

 
FOR IMMEDIATE RELEASE

Contact:   Phillip G. Creek
                Senior Vice President, Chief Financial Officer
                M/I Schottenstein Homes, Inc.
                (614) 418-8011
                www.mihomes.com


M/I Schottenstein Homes Reports
Record Third Quarter and Nine Month Results

Columbus, Ohio (October 28, 2003) - M/I Schottenstein Homes, Inc. (NYSE:MHO) announced record financial results for the third quarter and nine months ended September 30, 2003.

Net income of $19.4 million and diluted earnings per share of $1.31 for the three months ended September 30, 2003, both third quarter records for the Company, are 8% and 14% higher, respectively, than net income of $17.9 million and diluted earnings per share of $1.15 reported in the same period of 2002. Net income for the nine months ended September 30, 2003 was a record-setting $56.8 million, or $3.83 per diluted share, representing a 12% and 17% increase over 2002’s net income and diluted earnings per share of $50.7 million and $3.27, respectively.

As previously reported, the Company achieved third quarter high new contracts of 1,127 in 2003, which is a 6% increase over the 1,059 reported in the same quarter of 2002. All-time record new contracts of 3,611 for the nine months ended September 30, 2003 were 12% higher than 2002’s new contracts of 3,223 for the same period. Homes delivered in the third quarter were 1,048 compared to 2002’s third quarter of 1,067. Homes delivered for the nine months ended September 30, 2003 were 2,809 - a decrease of 5% from 2002’s record performance of 2,953.

At September 30, 2003, the Company’s backlog and its related sales value of 3,123 units and $789 million, respectively, are the highest ever attained in the Company’s 27-year history, surpassing September 30, 2002 units of 2,601 with a sales value of $626 million by 20% and 26%, respectively. The average sales price of homes in backlog at September 30, 2003, also a record for the Company, rose to $253,000, a 5% increase over 2002’s average sales price of $241,000.

Robert H. Schottenstein, President, commented, " We are very pleased to announce the strongest third quarter and nine month operating results in the Company’s history - reaching new records in net income, diluted earnings per share, new contracts and backlog of homes. Our financial position has never been stronger with shareholders’ equity approaching $400 million and book value per share of nearly $27. We also enhanced our land position, having purchased $180 million of land thus far in 2003. Our continued record results, with gross margins of 26% and operating margins of nearly 14% for the first nine months, demonstrate M/I’s focus on profitability. With record earnings for the first nine months and the highest backlog in Company history, we believe that 2003 will be another record income year for M/I Homes. We believe that our diluted earnings per share for 2003 should reach a record level range from $5.15 – $5.30, an increase to our previous guidance of $5.05 to $5.20. In 2002, our previous record income year, we earned $4.30 per diluted share."

The Company will broadcast live its third quarter earnings conference call today at 4:00 p.m. EST. To hear the call, log on to the M/I Homes’ website at www.mihomes.com , click on "Investor Relations" section of the site, and select "Listen to the Conference Call." The call will continue to be available on our website through October 28, 2004.

M/I Schottenstein Homes, Inc. is one of the nation’s leading builders of single-family homes, having sold over 55,000 homes. The Company’s homes are marketed and sold under the trade names M/I Homes and Showcase Homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Tampa, Orlando and Palm Beach County, Florida; Charlotte and Raleigh, North Carolina; Virginia and Maryland.

Certain statements in this Press Release are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, changes in general economic conditions, fluctuations in interest rates, availability and cost of land in desirable areas, increases in raw materials and labor costs, levels of competition, the impact of war on the economy, and other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002.
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
M/I Schottenstein Homes, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts)


 
  
Three Months Ended
Nine Months Ended
 
  
September 30,
September 30,
 
  
2003
2002
2003
2002
 
  
(unaudited)
(unaudited)
 
  
 
 
 
 
Revenue
 
 
$268,390
 
 
$261,509
 
 
$718,652
 
 
$735,510
 
 
    
   
   
   
 
Net income
 
 
   $  19,381
 
 
$  17,901
 
 
$  56,780
 
 
$  50,718
 
 
    
   
   
   
 
Earnings per share
   
   
   
   
 
Basic
 
 
$      1.34
 
 
$      1.18
 
 
$      3.93
 
 
$      3.36
 
Diluted
 
 
$      1.31
 
 
$      1.15
 
 
$      3.83
 
 
$      3.27
 
 
    
   
   
   
 
Weighted average shares outstanding:
   
   
   
   
 
Basic
   
14,435
   
15,168
   
14,447
   
15,114
 
Diluted
   
14,848
   
15,530
   
14,841
   
15,519
 
 
    
 
    
 
    
 
    
 
  

 
     
 
M/I Schottenstein Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
(Dollars in thousands, except per share amounts)

 
  
Three Months Ended
Nine Months Ended
 
  
September 30,
September 30,
 
  
2003
2002
2003
2002
 
  
(unaudited)
(unaudited)
 
  
 
 
 
 
Revenue
 
 
$268,390
 
 
$261,509
 
 
$718,652
 
 
$735,510
 
Gross margin
   
67,310
   
64,392
   
187,628
   
180,793
 
General and administrative expense
   
15,717
   
16,746
   
41,358
   
42,894
 
Selling expense
   
17,285
   
15,972
   
46,612
   
45,865
 
   
 
 
 
 
Operating income
   
34,308
   
31,674
   
99,658
   
92,034
 
Interest expense
   
2,008
   
2,802
   
6,046
   
10,232
 
   
 
 
 
 
Income before income taxes
   
32,300
   
28,872
   
93,612
   
81,802
 
Income taxes
   
12,919
   
10,971
   
36,832
   
31,084
 
   
 
 
 
 
Net income
 
 
$   19,381
 
 
$   17,901
 
 
$   56,780
 
 
$   50,718
 
   
 
 
 
 
 
    
   
   
 
    
 
Additional Information:
   
   
   
 
    
 
Land and lot sales
 
 
$     3,660
 
 
$     6,249
 
 
$    21,628
 
 
$   20,647
 
Land and lot margin
   
162
   
858
   
4,393
   
3,069
 
Financial services revenue
   
8,129
   
5,770
   
21,097
   
18,100
 
Financial services pre-tax income
 
$     6,087
 
 
$     3,714
 
 
$    15,250
 
 
$   12,452
 
 
    
 
    
   
 
    
 
Units:
   
 
    
   
 
    
 
New contracts
   
1,127
   
1,059
   
3,611
   
3,223
 
Homes delivered
   
1,048
   
1,067
   
2,809
   
2,953
 

 
  
September 30,     
 
 
  
     2003
2002  
 
 
  
(unaudited)
 
Backlog:
 
 
 
 
Units
 
3,123
 
2,601         
   
 
  
Aggregate sales value
 
$789,000
 
$626,000         
   
 
  
Average sales price
 
$       253
 
$       241         
  
 
  
 
  
 
  
 
  
 
  
 
September 30,            
December 31,  
 
 
  
          2003
 
  2002
 
2002  
 
 
(unaudited)              
 
  
Balance Sheet:
 
 
  
 
  
 
  
Homebuilding inventory
 
$616,795
 
$490,448        
  
$451,217            
      
Homebuilding debt
 
166,659
 
107,699        
     
62,658            
  
Shareholders’ equity
 
385,921
 
332,124        
    
339,729            
  
Book value per share
 
$    26.71
 
$     21.89        
  
$     22.97