EX-99.1 3 exhibit991.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
 
 
 

FOR IMMEDIATE RELEASE

Contact:        Phillip G. Creek
Senior Vice President, Chief Financial Officer
M/I Homes, Inc.
(614) 418-8011
M/I Homes Reports Record Results

Columbus, Ohio (February 5, 2004) - M/I Homes, Inc. (NYSE:MHO) announced record results for the fourth quarter and year ended December 31, 2003. This represents the Company’s eighth consecutive year of record results.

For the fourth quarter, net income was the highest for any quarter in the Company’s 27-year history. Net income was $25.0 million, up 57%, and diluted earnings per share were $1.69, up 64%, over 2002’s $15.9 million and $1.03. For 2003, net income was $81.7 million and diluted earnings per share were $5.51. Net income increased 23% from 2002’s $66.6 million and diluted earnings per share increased 28% from 2002’s $4.30.

As previously reported, the Company achieved an all-time quarterly record in homes delivered, delivering 1,339 homes in the fourth quarter – a 13% increase over 2002. Homes delivered for the twelve months ended December 31, 2003, increased slightly to 4,148 from 4,140 in 2002. All-time record new contracts of 4,485 were 9% higher than 2002’s new contracts of 4,130 for the same period. New contracts for the fourth quarter decreased 4% to 874, with active subdivisions declining to 135 versus 140 a year ago.

The Company’s units, sales value and average sales price in backlog of homes also surpassed previous year-end records, reaching 2,658 units with a value of $704 million and an average sales price of $265,000. This compares to units of 2,321 with a value of $567 million and an average sales price of $244,000 at December 31, 2002.

Robert H. Schottenstein, Chief Executive Officer and President, commented, " We are very pleased to announce our eighth consecutive year of record results. In particular, our fourth quarter represented the strongest quarter in M/I’s history - reaching new records in revenue, net income, diluted earnings per share, and homes delivered. The quarter results were indicative of our annual results where numerous records were achieved. In 2003, we also strengthened our balance sheet with year-end shareholders’ equity exceeding $400 million and book value per share exceeding $28. We also significantly enhanced our land position as planned – purchasing $220 million of land."
 
Schottenstein continued, "Our record results were led by our gross and operating margins, with gross margins of 25.5% and operating margins of 13.5% for the year. With our record year-end backlog of $704 million, the strength of our land position and balance sheet, and our continued focus on customer service and profitability, we believe that 2004 will be our ninth consecutive record income year, producing diluted earnings per share between $5.95 and $6.10. We are also happy to report that January, 2004 new contracts were a record, rising 23% over January, 2003 levels."

The Company will broadcast live its 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, along with any applicable reconciliation of non-GAAP financial measures, will continue to be available on our website through February 5, 2005.

M/I Homes, Inc. is one of the nation’s leading builders of single-family homes, having sold over 56,000 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 Homes, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts)


 
  
Three Months Ended
Twelve Months Ended
 
  
December 31,
December 31,
 
  
2003
2002
2003
2002
   
 
    
 
    
 
    
 
    
 
  
Revenue
 
$
350,911
 
$
297,515
 
$
1,069,563
 
$
1,033,025
 
 
    
   
   
   
 
Net income
 
$
24,950
 
$
15,894
 
$
81,730
 
$
66,612
 
 
    
   
   
   
 
Earnings per share
   
   
   
   
 
Basic
 
$
1.74
 
$
1.05
 
$
5.66
 
$
4.41
 
Diluted
 
$
1.69
 
$
1.03
 
$
5.51
 
$
4.30
 
 
    
   
   
   
 
Weighted average shares outstanding
   
   
   
   
 
Basic
   
14,372
   
15,075
   
14,428
   
15,104
 
Diluted
   
14,771
   
15,411
   
14,825
   
15,505
 
 
    
 
    
 
    
 
    
 
  

 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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

 
  
Three Months Ended
Twelve Months Ended
 
  
December 31,
December 31,
 
  
2003
2002
2003
2002
   
Revenue
 
$
350,911
 
$
297,515
 
$
1,069,563
 
$
1,033,025
 
Gross margin
   
85,209
   
68,480
   
272,837
   
249,273
 
General and administrative expense
   
18,264
   
18,590
   
59,622
   
61,484
 
Selling expense
   
21,867
   
18,914
   
68,479
   
64,779
 
   
 
 
 
 
Operating income
   
45,078
   
30,976
   
144,736
   
123,010
 
Interest expense
   
3,591
   
3,578
   
9,637
   
13,810
 
   
 
 
 
 
Income before income taxes
   
41,487
   
27,398
   
135,099
   
109,200
 
Income taxes
   
16,537
   
11,504
   
53,369
   
42,588
 
   
 
 
 
 
Net income
 
$
24,950
 
$
15,894
 
$
81,730
 
$
66,612
 
   
 
 
 
 
 
    
   
   
 
    
 
Additional Information :
   
   
   
 
    
 
Financial services revenue
 
$
7,640
 
$
5,712
 
$
28,737
 
$
23,812
 
Financial services pre-tax income
 
$
4,843
 
$
3,138
 
$
20,093
 
$
15,590
 
 
    
 
    
   
 
    
 
Units :
   
 
    
   
 
    
 
New contracts
   
874
   
907
   
4,485
   
4,130
 
Homes delivered
   
1,339
   
1,187
   
4,148
   
4,140
 

 
  
December 31,
 
  
2003
2002
Backlog :
 
 
 
Units
   
2,658
   
2,321
 
Aggregate sales value
 
$
704,000
 
$
567,000
 
Average sales price
 
$
265
 
$
244
 
 
    
 
    
 
  
December 31,   
 
    
2003
   
2002
 
Balance Sheet :
   
 
    
 
  
Homebuilding inventory
 
$
598,884
 
$
451,217
 
Homebuilding debt
   
155,614
   
62,658
 
Shareholders’ equity
   
402,409
   
339,729
 
Book value per share
 
$
28.28
 
$
22.97