NYSE$MHO

M/I Homes Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

M/I Homes reported record-setting results driven by increased new contracts, backlog units, and home deliveries.

M/I Homes announced record second-quarter results, with new contracts increasing by 31%, backlog units up by 30%, and home deliveries rising by 19%. Revenue increased by 15% to $714 million, and net income increased by 80% to $54.5 million ($1.89 per diluted share).

  • New contracts increased 31% to 2,261 contracts, an all-time quarterly record.
  • Backlog units increased 30% to 3,691, an all-time quarterly record.
  • Revenue increased 15% to a second quarter record of $714 million.
  • Net income of $54.5 million ($1.89 per diluted share), an 80% increase compared to 2019.

Headline financials

Total Revenue

$714M

Previous: $624M+14.5%
EPS (adj)

$1.89

Previous: $1.08+75.0%
Total net new contracts

2.3K

Previous: 1.7K+30.6%
Total homes delivered

1.8K

Previous: 1.5K+19.3%
Total backlog units

3.7K

Previous: 2.8K+29.7%
Total backlog sales value

$1.46B

No prior period
Avg. sales price in backlog

$396K

Previous: $395K+0.3%
Capital Expenditures

-$1.98M

Previous: -$1.6M-23.6%
Free Cash Flow

$52.5M

Previous: $28.6M+83.4%
Net Income

$54.5M

Previous: $30.2M+80.2%
Operating Income

$74.2M

Previous: $46.2M+60.6%
Gross Profit

$156M

Previous: $623M-74.9%
Cash & Equivalents

$94M

Previous: $20.4M+361.1%
Total Assets

$2.33B

Previous: $2.09B+11.4%
Stock-Based Comp

$1.75M

Previous: $1.68M+4.2%

Revenue & EPS history

M/I Homes · Revenue · Quarterly

$714M

Q2 2020+14.5%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

M/I Homes · $714M total across 3 segments · Q2 2020

  • Housing revenue
    $695M
  • Financial services
    $19M+33.2%
  • Land revenue
    $446K

Forward guidance

Economic conditions remain uncertain due to the on-going impact of COVID-19; accordingly, the company will continue to monitor conditions closely.

Tailwinds

  • Company ended the quarter with shareholders’ equity of $1.1 billion.
  • Company has a cash balance of $94 million.
  • Company has no borrowings on our $500 million credit facility.
  • Company had a strong, record-setting quarter.
  • Company was able to maintain its construction schedule in most of its markets.

Headwinds

  • Economic conditions remain uncertain due to the on-going impact of COVID-19.
  • New contracts declined substantially in late March and early April.
  • There was significant economic and social instability in our country and globally, precipitated by an unprecedented health crisis.
  • Cancellation rate was 14%.
  • The company will continue to monitor conditions closely.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+4.4%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+14.8%

Q2 2019

Best reaction

-13.9%

Q4 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%+4.1%+0.7%
Q4 2025+2.8%+3.9%+10.5%
Q3 2025-5.9%-8.5%-6.9%
Q2 2025-1.3%-1.1%+6.5%
Q1 2025-3.6%-3.8%-2.7%
Q4 2024-5.0%-10.7%-13.4%
Q3 2024-1.2%+1.6%+7.5%
Q2 2024+0.1%-7.7%-5.1%
Q1 2024+0.7%+1.5%+4.5%
Q4 2023-4.6%-8.6%-2.9%
Q3 2023+5.1%+4.7%+35.8%
Q2 2023+3.7%+6.6%-3.7%
Q1 2023+2.7%+2.5%+9.0%
Q4 2022+5.7%+2.0%+0.5%
Q3 2022-1.5%-2.3%+3.8%
Q2 2022+3.2%+1.2%-1.1%
Q1 2022-0.3%+3.2%+4.7%
Q4 2021-1.3%-5.6%-2.5%
Q3 2021-6.3%-4.4%-5.5%
Q2 2021+10.5%+10.2%+12.2%
Q1 2021+13.0%+14.6%+14.3%
Q4 2020+0.6%+5.8%-0.5%
Q3 2020+1.2%+2.3%+8.9%
Q2 2020+10.0%+7.6%+12.0%
Q1 2020+9.3%+8.8%+43.7%
Q4 2019-2.0%-3.3%-16.8%
Q3 2019+13.1%+9.6%+7.6%
Q2 2019+14.8%+21.0%+24.7%
Q1 2019-1.7%-1.9%+0.3%
Q4 2018+9.6%+6.0%-0.1%
Q3 2018+4.0%+3.6%+9.0%
Q2 2018+0.1%-2.1%+0.2%
Q1 2018-1.5%-5.1%-11.0%
Q4 2017-1.5%-1.5%-7.8%
Q3 2017+7.5%+12.8%+23.1%
Q2 2017-3.2%-4.4%-9.6%
Q1 2017+9.6%+9.1%+13.3%
Q4 2016-5.0%-6.4%-2.5%
Q3 2016-3.4%-4.7%+5.1%
Q2 2016+11.1%+9.2%+11.9%
Q1 2016+0.0%
Q4 2015-0.6%
Q3 2015-6.4%
Q2 2015-3.6%
Q1 2015-0.6%
Q4 2014-1.7%
Q3 2014+1.2%
Q2 2014-6.1%
Q1 2014+3.5%
Q4 2013-2.8%
Q3 2013+8.0%
Q2 2013-5.8%
Q1 2013+7.7%
Q4 2012-13.9%
Q3 2012-4.3%
Q2 2012+4.9%
Q1 2011-2.9%
Q1 2012+11.0%
Q4 2009-1.7%
Q2 2011-1.7%
Q4 2011-1.7%
Q3 2011+2.8%
Q3 2010+2.8%
Q2 2010-3.5%
Q4 2010-3.5%
Q1 2010+6.8%

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