M/I Homes (MHO) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached $4.03B; net income was $465.4M, or $16.21 per diluted share, as new contracts rose 20% to 7,977 homes.

• Record shareholders’ equity of $2.52B, $733M in cash, no borrowings under the $650M credit facility and a 22% homebuilding debt-to-capital ratio supported a strong year-end balance sheet.

Financial highlights

• Q4 revenue was $972.6M, down from $1.22B YoY; net income was $105.3M, or $3.66 per diluted share, versus $130.4M, or $4.65, in Q4 2022.

• FY23 revenue was $4.03B, down 2%; pretax income was $607.3M, down 4%; net income was $465.4M versus $490.7M in FY22.

• FY23 gross margin was 25.3% of revenue; operating income was $587.2M versus $637.5M in FY22.

• Adjusted EBITDA was $648.2M in FY23 versus $705.4M in FY22.

Outlook and guidance

• Management cited favorable demographic trends and housing undersupply as industry tailwinds, and said balance-sheet strength, diverse products and well-located communities positioned operations to deliver strong results.