Financial Data and Key Metrics Changes - Pre-tax income for the year was $607 million, with a pre-tax return of 15% and a return on equity of 20.2% [2] - Gross margins for the year remained steady at 25.3%, while the fourth quarter gross margin was 25.1%, up 250 basis points year-over-year [7][12] - Revenue decreased by 20% in the fourth quarter to $973 million, with an average closing price of $471,000, a 4% decrease from the previous year [7][8] - Earnings per diluted share decreased to $366 from $465 in the fourth quarter of the previous year, and decreased 6% for the year to $1,621 from $1,724 [14] Business Line Data and Key Metrics Changes - Smart Series sales comprised 53% of total company sales in the fourth quarter, up from 52% a year ago [3] - New contracts increased by 61% in the fourth quarter, with a sales pace of 2.5 homes per community compared to 1.8 in the previous year [5][41] - Homes delivered decreased by 3% for the year, totaling 8,112 homes [42] Market Data and Key Metrics Changes - New contracts in the Southern region increased by 44% in the fourth quarter, while the Northern region saw an increase of 89% [47] - Deliveries in the Southern region decreased by 17% year-over-year, while the Northern region saw a decrease of 13% [47] Company Strategy and Development Direction - The company aims to grow its community count by approximately 10% in 2024, with over half of new store openings expected in the first half of the year [62] - The focus remains on maintaining margins around 25% while increasing the mix of attached products to enhance density and profitability [70][74] - The company is optimistic about the housing market and expects to deliver strong results in 2024 [48][70] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has stabilized, with moderating inflation on land development costs and a positive outlook for demand [59][65] - The company is optimistic about maintaining margins and believes that the current demand and traffic levels will support this [28][63] - Management highlighted improvements in cycle times, which have approached pre-COVID levels, contributing positively to margins [67][68] Other Important Information - The company ended the year with a cash balance of $733 million and no borrowings under its unsecured revolving credit facility [9] - The total home building inventory at year-end was $2.8 billion, flat compared to the previous year [9] Q&A Session Summary Question: What are the expectations for margins and pricing power in 2024? - Management indicated that while pricing power may be limited, they are optimistic about maintaining margins around 25% due to strong demand and improved operational efficiencies [63][64] Question: Can you provide insights on community count and store openings? - The company expects to increase its community count by about 10% in 2024, with many new stores opening in the first half of the year [62] Question: How is the company addressing competitive pressures and incentives? - Management noted that incentives are market-specific and that they have seen a slight decline in the need for incentives due to improved demand and lower mortgage rates [65][66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________________ Commission File Number 1-12434 M/I HOMES, INC. (Exact name of registrant as specified in it charter) (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company reported record revenue of $1 billion for the third quarter, a 3% increase year-over-year [27] - Pre-tax income improved by 7% to a record $178 million, with gross margins increasing to 27%, which is 10 basis points better than last year and 140 basis points better than the second quarter [27][28] - Earnings per diluted share increased to a record $4.82 from $4.67 last year, up 3% [9] - The company ended the quarter with a cash balance of $736 million and no borrowings under its $650 million line-of-credit, resulting in a debt-to-capital ratio of 22% [15][134] Business Line Data and Key Metrics Changes - New contracts increased by 50% year-over-year, with a significant contribution from the Smart Series, which comprises roughly 55% of total company sales [5][14] - The mortgage and title operations achieved pre-tax income of $9.9 million, a 25% increase from $7.9 million in the previous year [19] - The average mortgage amount rose to $394,000 in Q3 2023, compared to $385,000 last year, with loans originated increasing by 16% [10] Market Data and Key Metrics Changes - New contracts in the northern region increased by 90%, while the southern region saw a 29% increase [6] - Deliveries in the southern region increased by 15% year-over-year, while deliveries in the northern region decreased by 13% [6] - The average closing price for the quarter was $481,000, a 1% decrease from last year's record average closing price of $487,000 [132] Company Strategy and Development Direction - The company plans to open a number of new communities, increasing community count by approximately 15% from last year, with 22 new communities opened during the quarter [16][17] - The focus remains on designing more affordable products, particularly the Smart Series, to cater to first-time buyers, which now make up 55% of sales [5][151] - The company aims to maintain a low leverage level while growing the business and gaining market share [71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the homebuilding industry despite challenges such as rising interest rates and macroeconomic factors [4][23] - There is a recognition of a potential slowdown in demand due to increased mortgage rates, which are now around 8% [28][90] - The company remains committed to using below-market mortgage rates to incentivize sales where necessary [100][114] Other Important Information - The company spent $106 million on land purchases and $151 million on land development during the quarter, totaling $257 million [120] - The average loan-to-value ratio for first mortgages remained at 82%, with a solid borrower profile [118] Q&A Session Summary Question: Can you walk us through the sequential improvement to gross margin? - Management attributed the increase to a mix of more affordable products and the flattening of hard costs [36] Question: What drove the significant increase in new contracts in September? - The increase was partly due to a low comparison from the previous year, with September showing strong activity aided by new community openings [90] Question: How is the company managing pricing in the current environment? - Management indicated that pricing power is limited due to market conditions, and they are focusing on affordability [80][124] Question: What percentage of communities were able to raise or hold prices this quarter? - Management suggested that around 60% to 65% of communities could maintain or raise prices, depending on market conditions [53] Question: How is the company addressing the rising interest rates? - The company is using below-market interest rates to incentivize sales and is monitoring market conditions closely [100][114]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20M%2FI%20Homes%2C%20Inc.%20and%20Subsidiaries%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended June 30, 2023, show a slight decrease in quarterly revenue and net income compared to the prior year, but an increase in revenue for the six-month period, with a strengthened balance sheet and improved cash flow from operations [Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets increased to **$3.86 billion** from **$3.71 billion** at year-end 2022, primarily driven by a more than doubling of cash and cash equivalents to **$668.3 million**, while total liabilities decreased to **$1.56 billion**, contributing to a rise in total shareholders' equity to **$2.30 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 (unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents and restricted cash | $668,287 | $311,542 | | Inventory | $2,687,014 | $2,828,602 | | **Total Assets** | **$3,861,749** | **$3,714,923** | | **Liabilities & Equity** | | | | Total Liabilities | $1,563,290 | $1,644,198 | | Total Shareholders' Equity | $2,298,459 | $2,070,725 | | **Total Liabilities and Shareholders' Equity** | **$3,861,749** | **$3,714,923** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) For the second quarter of 2023, revenue was **$1.01 billion**, a slight decrease from **$1.04 billion** in Q2 2022, with net income for the quarter at **$118.0 million** (**$4.12 per diluted share**), down from **$136.8 million** (**$4.79 per diluted share**) year-over-year, while for the six-month period, revenue increased to **$2.01 billion** from **$1.90 billion**, and net income slightly decreased to **$221.1 million** from **$228.7 million** Consolidated Income Statement Summary (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,014,013 | $1,040,654 | $2,014,543 | $1,901,465 | | Net Income | $118,001 | $136,838 | $221,067 | $228,677 | | Diluted EPS | $4.12 | $4.79 | $7.77 | $7.93 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, the company generated **$417.7 million** in net cash from operating activities, a substantial increase from **$78.5 million** in the same period of 2022, primarily driven by a significant positive change in inventory, while net cash used in financing activities decreased to **$58.1 million** from **$114.7 million** year-over-year Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $417,689 | $78,540 | | Net cash used in investing activities | ($2,802) | ($11,463) | | Net cash used in financing activities | ($58,142) | ($114,690) | | **Net increase (decrease) in cash** | **$356,745** | **($47,613)** | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further breakdown of financial statement items, including inventory composition, fair value measurements for financial instruments, debt structure and covenants, segment performance, and the share repurchase program, with no significant changes to accounting policies reported Inventory Breakdown (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Single-family lots, land and land development costs | $1,296,486 | $1,294,779 | | Homes under construction | $1,207,759 | $1,366,804 | | **Total inventory** | **$2,687,014** | **$2,828,602** | Debt Structure (in thousands) | Debt Instrument | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Notes payable bank - financial services | $186,396 | $245,741 | | Senior notes due 2028 - net | $396,492 | $396,105 | | Senior notes due 2030 - net | $296,613 | $296,361 | - The company repurchased **0.2 million** common shares for **$15.2 million** in Q2 2023, with **$77.9 million** remaining available for repurchases under the 2021 Share Repurchase Program as of June 30, 2023[99](index=99&type=chunk) [Management's Discussion and Analysis (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a strong second quarter with better-than-expected revenues and deliveries, driven by improved homebuyer demand despite higher interest rates, with new contracts increasing **21%** year-over-year, and while gross margins declined from the prior year due to higher costs, they improved sequentially from Q1 2023, maintaining a strong balance sheet and liquidity, and planning to grow community count by approximately **15%** by year-end 2023, despite acknowledging macroeconomic uncertainty - Key results for Q2 2023 versus Q2 2022 include a **21%** increase in new contracts to **2,197**, a **3%** increase in average sales price of delivered homes to a record **$493,000**, and a **7%** decrease in homes delivered to **1,990**[117](index=117&type=chunk) - The company's strategic objectives for the remainder of 2023 include managing land spend, improving build cycle times, opening new communities, managing overhead, maintaining a strong balance sheet, and emphasizing customer service and quality[135](index=135&type=chunk) - The company ended Q2 2023 with approximately **41,300** lots under control, representing about a **5-year supply**, and **195** active communities, up from **168** a year prior[132](index=132&type=chunk)[133](index=133&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q2 2023, total revenue decreased **3%** to **$1.01 billion**, and income before taxes fell **15%** to **$155.4 million** compared to Q2 2022, driven by lower homebuilding revenue in the Northern region and a **230 basis point** drop in housing gross margin to **23.7%** company-wide due to higher construction costs and incentives, while SG&A expenses increased as a percentage of revenue to **10.6%**, with the Southern region showing revenue growth and the Financial Services segment's income improving Q2 2023 vs Q2 2022 Performance Summary (in millions) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,014.0 | $1,040.7 | -3% | | Income Before Taxes | $155.4 | $182.2 | -15% | | Net Income | $118.0 | $136.8 | -14% | | Housing Gross Margin % | 23.7% | 26.0% | -230 bps | - The total cancellation rate for new contracts improved to **10.4%** in Q2 2023 from **11.2%** in Q2 2022[145](index=145&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position strengthened significantly, with unrestricted cash increasing by **$356.8 million** during the first half of 2023 to reach **$667.4 million**, driven by strong operating cash flow of **$417.7 million**, with no borrowings under its **$650 million** homebuilding credit facility and **$568.8 million** available, and the homebuilding debt-to-capital ratio improved to **23%** from **25%** at year-end 2022 - Cash, cash equivalents, and restricted cash increased to **$668.3 million** at June 30, 2023, up from **$311.5 million** at December 31, 2022[173](index=173&type=chunk) Key Liquidity Metrics | Metric | June 30, 2023 | | :--- | :--- | | Cash from Operations (YTD) | $417.7 million | | Available Homebuilding Credit Facility | $568.8 million | | Homebuilding Debt to Capital Ratio | 23% | - During the first half of 2023, the company invested **$141.7 million** in land acquisitions and **$201.3 million** in land development[131](index=131&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk stems from interest rate fluctuations, which affect its variable-rate debt and mortgage origination operations, with the financial services segment using derivative instruments, such as Interest Rate Lock Commitments (IRLCs) and Forward Sales of Mortgage-Backed Securities (FMBSs), to hedge against the risk of interest rate changes between a loan rate lock and its sale - The company is exposed to interest rate risk through its variable-rate revolving credit facilities, which permitted total borrowings up to **$940 million** as of June 30, 2023[219](index=219&type=chunk) Hedging Instrument Notional Amounts (in thousands) | Instrument | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Uncommitted IRLCs | $222,123 | $262,529 | | FMBSs related to uncommitted IRLCs | $212,000 | $341,088 | | FMBSs related to mortgage loans held for sale | $175,000 | $232,518 | [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation by management, including the CEO and CFO, the company concluded that its disclosure controls and procedures were effective as of June 30, 2023, with no material changes made to the internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[227](index=227&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[228](index=228&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings incidental to its business, and management believes the ultimate resolution will not have a material effect on the company's financial position, with a reserve of **$1.1 million** for legal expenses recorded as of June 30, 2023 - The company's legal proceedings are discussed in Note 6 to the Consolidated Financial Statements[229](index=229&type=chunk) - As of June 30, 2023, the company had reserved **$1.1 million** for legal expenses[70](index=70&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to the risk factors from the 2022 Form 10-K were reported[230](index=230&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2023, the company repurchased **210,000** of its common shares for a total of approximately **$15.2 million** under its publicly announced share repurchase program, with approximately **$77.9 million** remaining available for future repurchases as of June 30, 2023 Common Share Purchases in Q2 2023 | Period | Total Shares Purchased | Average Price Paid per Share | Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | April 2023 | — | $— | $93.1 million | | May 2023 | 120,000 | $70.60 | $84.7 million | | June 2023 | 90,000 | $74.84 | $77.9 million | | **Q2 Total** | **210,000** | **$72.42** | **$77.9 million** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________________ Commission File Number 1-12434 M/I HOMES, INC. (Exact name of registrant as specified in it charter) (State or other jurisdiction of i ...

M/I Homes, Inc. (MHO) Q1 2023 Earnings Conference Call April 26, 2023 4:00 PM ET Company Participants Phil Creek - EVP and CFO Bob Schottenstein - CEO and President Derek Klutch - President, Mortgage Company Conference Call Participants Jesse Lederman - Zelman and Associates Jay McCanless - Wedbush Securities Operator Good afternoon. Thank you for attending today's M/I Homes First Quarter Earnings Conference Call. [Operator Instructions] I would now like to pass the conference over to Phil Creek with M/I Ho ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 1-12434 M/I HOMES, INC. (Exact name of registrant as specified in it charter) Ohio 31-1210837 (State or other jurisdiction of incorpo ...

Start Time: 16:00 January 1, 0000 4:40 PM ET M/I Homes, Inc. (MHO) Q4 2022 Earnings Conference Call February 01, 2023, 16:00 PM ET Company Participants Bob Schottenstein - Chairman, President and CEO Phil Creek - EVP and CFO Derek Klutch - President, Mortgage Company Conference Call Participants Jesse Lederman - Zelman & Associates Jay McCanless - Wedbush Operator Good afternoon, ladies and gentlemen. Thank you for joining today's M/I Homes' Fourth Quarter and Year Ending Earnings Conference Call. My name i ...

[Financial Information](index=4&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) This section presents the company's financial performance and position for the three and nine months ended September 30, 2022 [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20M%2FI%20Homes%2C%20Inc.%20and%20Subsidiaries%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, highlighting significant increases in Q3 2022 net income and EPS, driven by revenue growth and substantial inventory asset rise [Consolidated Financial Statements](index=4&type=section&id=Financial%20Statements) Total assets grew to **$3.59 billion** driven by inventory, with Q3 2022 net income at **$131.6 million** and diluted EPS at **$4.67** - Total assets grew to **$3.59 billion** as of September 30, 2022, from **$3.24 billion** at December 31, 2021. This was primarily driven by an increase in inventory from **$2.45 billion** to **$3.02 billion**. Total shareholders' equity increased to **$1.94 billion** from **$1.62 billion**[11](index=11&type=chunk) Consolidated Statement of Income Highlights (in thousands, except per share) | Metric | Q3 2022 | Q3 2021 | 9M 2022 | 9M 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,012,928 | $904,319 | $2,914,393 | $2,694,135 | | **Net Income** | $131,590 | $91,012 | $360,267 | $283,485 | | **Diluted EPS** | $4.67 | $3.03 | $12.59 | $9.46 | - For the nine months ended September 30, 2022, net cash used in operating activities was **$14.1 million**, an improvement from the **$34.3 million** used in the same period in 2021. The cash usage was primarily due to a **$533.0 million** increase in inventory[16](index=16&type=chunk) [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes reveal inventory growth to **$3.02 billion**, no impairments, increased share repurchase program, and an **$8.4 million** tax benefit from the Inflation Reduction Act - Total inventory increased to **$3.02 billion** at September 30, 2022, from **$2.45 billion** at year-end 2021. Homes under construction grew significantly to **$1.62 billion** from **$1.19 billion**[22](index=22&type=chunk) - The company did not record any impairment charges on its inventory or investments in unconsolidated joint ventures during the three and nine months ended September 30, 2022 and 2021[50](index=50&type=chunk)[51](index=51&type=chunk) - The Board of Directors increased the 2021 Share Repurchase Program by an additional **$100 million**, bringing the total authorization to **$200 million**. In Q3 2022, the company repurchased **0.3 million** shares for **$15.1 million**[106](index=106&type=chunk)[108](index=108&type=chunk) - The enactment of the Inflation Reduction Act (IRA) in August 2022 resulted in the company recognizing an **$8.4 million** year-to-date tax benefit during Q3 2022 related to the extension of energy-efficient homes credits[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses record Q3 2022 results despite market weakening, with revenue and net income up, but new contracts declined and cancellations rose [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2022 saw record revenue of **$1.01 billion** and net income of **$131.6 million**, despite a **31%** drop in new contracts and a **17.0%** cancellation rate - Despite a weakening housing market, the company achieved record third-quarter revenue (**$1.01 billion**), income before income taxes (**$166.6 million**), and net income (**$131.6 million**)[127](index=127&type=chunk)[129](index=129&type=chunk) Key Operating Metrics Comparison (Q3 2022 vs Q3 2021) | Metric | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Homes Delivered | 2,026 | 2,045 | -1% | | New Contracts, net | 1,349 | 1,964 | -31% | | Cancellation Rate | 17.0% | 7.8% | +9.2 p.p. | | Avg. Sales Price Delivered | $487k | $430k | +13% | | Backlog (units) | 4,536 | 5,407 | -16% | - Housing gross margin percentage improved by **270 basis points** to **25.4%** in Q3 2022 from **22.7%** in Q3 2021, primarily as a result of increased average sales prices[132](index=132&type=chunk) - Selling, general and administrative (SG&A) expense as a percentage of revenue improved to a third-quarter record of **10.3%** in Q3 2022 from **10.7%** in Q3 2021[134](index=134&type=chunk) [Outlook](index=29&type=section&id=Outlook) Management anticipates a challenging 2022-2023 due to macroeconomic headwinds, focusing on land spend management, community expansion, and maintaining a strong balance sheet - The company acknowledges that the housing market decline worsened in Q3 2022 due to steep increases in mortgage rates, high inflation, and recession concerns[135](index=135&type=chunk) - Strategic objectives for the remainder of 2022 and into 2023 include: managing land spend, opening new communities, maintaining strong liquidity, and expanding affordable Smart Series homes[138](index=138&type=chunk) - The company ended Q3 2022 with approximately **46,100 lots** under control, a **7%** increase YoY, representing a **5.5-year supply**. It expects to grow its community count by approximately **10%** by the end of 2022[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of September 30, 2022, the company held **$67.8 million** in cash, with **$453.4 million** available liquidity and an improved homebuilding debt to capital ratio of **26%** - As of September 30, 2022, the company had **$67.8 million** of cash, cash equivalents and restricted cash[181](index=181&type=chunk) Available Liquidity Sources (as of Sep 30, 2022, in thousands) | Facility | Expiration Date | Outstanding Balance | Available Amount | | :--- | :--- | :--- | :--- | | Notes payable – homebuilding (Credit Facility) | July 18, 2025 | $0 | $453,371 | | Notes payable – financial services | Various | $189,371 | $2,334 | - The ratio of homebuilding debt to capital improved to **26%** at September 30, 2022, from **30%** at December 31, 2021[194](index=194&type=chunk) - During the nine months ended September 30, 2022, the company repurchased **1.2 million** common shares for **$55.3 million** under its share repurchase program[192](index=192&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuations, hedged by derivative instruments like FMBSs against **$477.1 million** in uncommitted IRLCs - The company's primary market risk results from fluctuations in interest rates, which impact borrowings under its variable-rate credit facilities and its mortgage loan origination services[229](index=229&type=chunk) - To mitigate interest rate risk, the financial services segment uses derivative instruments, including forward sales of mortgage-backed securities (FMBSs) and whole loan delivery commitments, to hedge its interest rate lock commitments (IRLCs) and mortgage loans held for sale[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) Hedging Position (in thousands) | Instrument | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Uncommitted IRLCs | $477,065 | $228,831 | | FMBSs related to uncommitted IRLCs | $476,000 | $223,000 | [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting - Based on an evaluation by management, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[237](index=237&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended September 30, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[238](index=238&type=chunk) [Other Information](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional disclosures on legal proceedings, risk factors, equity sales, and other required information [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal proceedings, including **$2.1 million** stucco-related and **$0.6 million** other legal expense reserves, are provided in Note 6 - The company is involved in legal proceedings incidental to its business. Details are provided in Note 6 to the financial statements[239](index=239&type=chunk)[75](index=75&type=chunk) - The company has received claims related to stucco installation in its Tampa and Orlando, Florida markets. As of September 30, 2022, the remaining reserve for these potential repairs was **$2.1 million**[70](index=70&type=chunk)[71](index=71&type=chunk) - As of September 30, 2022, the company had reserved **$0.6 million** for other legal expenses, a decrease from **$1.2 million** at year-end 2021[75](index=75&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Highlights material changes to risk factors, focusing on adverse effects of rising mortgage rates and inflation, potentially compressing profit margins - A significant increase in mortgage interest rates or a reduction in the availability of mortgage financing could adversely affect the business. Mortgage rates increased significantly during the first nine months of 2022[241](index=241&type=chunk)[243](index=243&type=chunk) - The company may not be able to offset the impact of inflation on its costs for land, materials, and labor through home price increases, which could reduce profit margins[245](index=245&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 2022 share repurchase activity, with **340,000** shares bought for **$15.1 million**, leaving **$93.1 million** available under the program Share Repurchases in Q3 2022 | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2022 | 10,000 | $46.24 | | August 2022 | 230,000 | $45.72 | | September 2022 | 100,000 | $41.20 | | **Total Q3 2022** | **340,000** | **$44.41** | - The Board of Directors increased the 2021 Share Repurchase Program by an additional **$100 million**, bringing the total authorization to **$200 million**[246](index=246&type=chunk) [Other Required Disclosures](index=47&type=section&id=Other%20Required%20Disclosures) Reports no defaults on senior securities, no mine safety disclosures, and no other material information, with a list of filed exhibits provided - The company reported no defaults on senior securities (Item 3), no mine safety disclosures (Item 4), and no other material information (Item 5) for the period[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk) - A list of exhibits filed with the report is provided under Item 6, including amendments to agreements, a list of subsidiary guarantors, officer certifications, and XBRL data files[254](index=254&type=chunk)

M/I Homes, Inc. (MHO) Q3 2022 Earnings Conference Call October 26, 2022 4:00 PM ET Company Participants Phil Creek ??? Chief Financial Officer Bob Schottenstein ??? President and Chief Executive Officer Derek Klutch ??? President-Mortgage Company Conference Call Participants Jesse Lederman ??? Zelman & Associates Operator Hello, and welcome to today???s M/I Homes Incorporated Third Quarter Earnings Conference Call. My name is Bailey and I???ll be your moderator for today???s call. All lines will be muted du ...