EX-99.1 3 exhibit.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
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FOR IMMEDIATE RELEASE


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

M/I Homes Reports
Second Quarter and First Half Results

Columbus, Ohio (July 28, 2005) - M/I Homes, Inc. (NYSE:MHO) announced results for the second quarter and six months ended June 30, 2005.

The Company recorded net income of $17.6 million and diluted earnings per share of $1.21 in 2005’s second quarter compared to 2004’s second quarter record net income of $24.9 million and diluted earnings per share of $1.73. Net income and diluted earnings per share for the first half of 2005 were $34.4 million and $2.37, respectively, compared to $44.4 million and $3.08, respectively for the first half of 2004. These declines in net income and diluted earnings per share are consistent with management’s expectations, as noted in previous communications.

Backlog of homes at June 30, 2005 reached a record high sales value of $1.052 billion, with average sales price increasing 12% to a record high of $318,000 and backlog units increasing 6% to 3,310. Backlog of homes at June 30, 2004 sales value was $887 million with an average sales price of $283,000 and backlog units of 3,130. Homes delivered in 2005’s second quarter were 853 compared to 2004’s record second quarter of 1,097. For the six months ended June 30, 2005, homes delivered were 1,628, down from 2004’s record-setting 1,968. New contracts for 2005’s second quarter were 1,172, a 4% increase from 2004’s second quarter of 1,128. For the first six months, 2005’s new contracts were 2,250 compared to 2,440 in 2004. M/I had 127 active subdivisions at June 30, 2005 compared to 135 at June 30, 2004.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “Our first half results were as expected and reflect representations made earlier this year. We feel very good about our business and remain confident that second half results will be strong and that 2005 will be our tenth consecutive record year. Our record backlog of $1 billion gives us great visibility towards future results and our year to date gross and operating margins of 25% and 12%, respectively, are very solid. We expect new contracts, homes delivered and net income to reach record levels in the second half of 2005, based on our backlog and our community count increasing to 150 active communities by year end. Virtually all of our new communities will be in our Florida, North Carolina and Washington, D.C. markets, where demand remains very strong and profitability is high. Our goal is to deliver approximately 4,600 homes for the year.”

Mr. Schottenstein concluded, “Our financial position continues to be very strong with over $1.1 billion in total assets and shareholders’ equity exceeding $525 million. We enhanced our capital structure during the quarter by completing a $50 million add-on to our first quarter $150 million senior note offering. We also continue to improve and diversify our land position, having purchased over $150 million of land so far this year, with plans to purchase $380 million for the year. Additionally, our previously announced acquisition of Lake County, Florida homebuilder Shamrock Homes promises to be a strong strategic fit. We are very excited about our future, and anticipate 2005’s record diluted earnings per share to be in the range of $6.75 - $6.95, surpassing 2004’s $6.35. In addition, we believe 2006 will be our eleventh consecutive record year, with deliveries exceeding 5,000 homes.”

The Company will broadcast live its earnings conference call today at 4:00 p.m. EDT. To hear the call, log on to the M/I Homes’ website at mihomes.com, click on the “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 July 28, 2006.

M/I Homes, Inc. is one of the nation’s leading builders of single-family homes, having sold more than 64,000 homes. The Company’s homes are marketed and sold under the trade names M/I Homes, Showcase Homes and Shamrock Homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Tampa, Orlando and West Palm Beach, Florida; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

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,”“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 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 relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities and various governmental rules and regulations, as more fully discussed in the Risk Factors section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2004. All forward-looking statements made in this Press Release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this Press Release will increase with the passage of time. The Company undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.


M/I Homes, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts)


   
       Three Months Ended
  
          Six Months Ended
   
        June 30,
  
         June 30,
   
             2005
              2004
  
                2005
                 2004
             
Revenue
  
$265,999
$281,197
 
$507,398
$509,861
   
 
 
 
 
 
Net income
  
$ 17,645
$ 24,881
 
$ 34,391
$ 44,418
   
 
 
 
 
 
Earnings per share
  
 
 
 
 
 
Basic
  
$ 1.23
$ 1.76
 
$ 2.41
$ 3.15
Diluted
  
$ 1.21
$ 1.73
 
$ 2.37
$ 3.08
   
 
 
 
 
 
Weighted average shares outstanding
  
 
 
 
 
 
Basic
  
14,308
14,122
 
14,273
14,094
Diluted
  
14,531
14,394
 
14,520
14,414
             


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

   
Three Months Ended
  
Six Months Ended
   
June 30,
  
June 30,
   
                 2005
  
               2004
  
            2005
  
          2004
                 
Revenue
  
$265,999
  
$281,197
  
$507,398
  
$509,861
Gross margin
  
67,713
  
77,629
  
128,438
  
138,721
General and administrative expense
  
17,831
  
17,039
  
32,306
  
28,349
Selling expense
  
18,050
 
17,694
  
34,984
  
33,361
Operating income
  
31,832
  
42,896
  
61,148
  
77,011
Interest expense
  
2,907
 
1,769
  
4,770
  
3,592
Income before income taxes
  
28,925
  
41,127
  
56,378
  
73,419
Income taxes
  
11,280
 
16,246
  
21,987
  
29,001
Net income
  
$ 17,645
 
$ 24,881
 
$ 34,391
  
$ 44,418
   
 
  
 
        
Additional Information:
  
 
  
 
        
EBITDA
  
$33,297
  
$44,205
  
$64,718
  
$79,519
Interest incurred
  
$  6,186
  
$  3,944
  
$  9,636
  
$  7,166
                 
Financial services revenue
  
$  5,733
 
$11,141
 
$13,424
 
$ 18,641
Financial services pre-tax income
  
$  3,378
 
$  7,950
 
$  8,682
  
$ 13,462
                 
Units:
                
New contracts
  
1,172
  
1,128
  
2,250
  
2,440
Homes delivered
  
853
  
1,097
  
1,628
  
1,968

   
June 30,
    
   
     2005
  
     2004
    
Backlog:
            
Units
  
3,310
  
3,130
    
Aggregate sales value
  
$1,052,000
 
$887,000
   
Average sales price
  
$318
 
$ 283
   
             
   
June 30,
    
   
     2005
  
    2004
    
Balance Sheet:
            
Cash
  
$ 1,515
  
$ 1,497
    
Homebuilding inventory
  
985,480
  
785,847
    
Total assets
  
1,159,978
  
914,233
    
Homebuilding debt
  
438,541
  
274,432
    
Shareholders’ equity
  
526,297
  
440,037
    
Book value per share
  
36.77
  
31.16
    
Debt/Capital ratio
  
45%
  
38%