M/I Homes posts record year
A booming housing market coupled with low interest rates helped M/I Homes report record results for 2019.
The Columbus, Ohio-based homebuilder posted record revenue, sales, contracts and income for the year, according to its earnings report released Wednesday.
Revenue for the year rose 9% to $2.5 billion based on delivering 6,296 homes, also up 9% from the previous year. Income rose to $127.6 million, or $4.48 per share, up from $107.7 million, or $3.70 a share in 2018.
Despite the numbers, M/I missed its fourth-quarter earnings estimates, sending the company's shares sharply downward this morning.
M/I Chief Executive Officer and President Robert Schottenstein described 2019 as a "a banner year" for the company.
"The strong performance of many of our homebuilding divisions along with another very good year from our financial services business contributed to our record results," he said in a news release.
M/I helped boost sales by holding the line on prices. The average M/I Home sold last year for $384,000, the same as in 2018.
Schottenstein expressed confidence moving into 2020. In the fourth quarter of 2019, M/I wrote 1,677 contracts for new homes, up 43% from the fourth quarter of 2018.
"Housing market conditions remain strong and, given the strength of our record backlog and our solid competitive position across each of our 15 markets, we are well positioned for a very good 2020," he said.
Based in Columbus, M/I Homes builds in North Carolina, Florida, Texas and in several Midwest states.