M/I Homes Caps Off a Stellar Year with Record-Breaking Fourth Quarter Performance

Well, if you're looking for good news in the housing sector, M/I Homes certainly delivered a healthy dose of it. The company recently unveiled its financial results for both the fourth quarter and the full year of 2020, and honestly, they're quite impressive. It seems they didn't just meet expectations; they genuinely soared past them, showcasing a remarkable resilience and growth trajectory even amidst, you know, everything 2020 threw our way. It's truly fascinating to see a company not only navigate challenging times but come out on top with such vigor.

Let's dive right into the fourth quarter, shall we? M/I Homes reported a fantastic 22% surge in revenue, hitting a cool $1.0 billion, up from $820.6 million in the same period of 2019. But wait, there's more good news: net income wasn't just up a little; it jumped a whopping 38% to $87.0 million. This translates directly to the shareholders' pockets, with diluted earnings per share (EPS) climbing by an equally impressive 37% to $2.97. That's a significant boost, making a strong statement about their profitability and operational efficiency.

And it wasn't just about the money flowing in; they were also busy building and selling homes! The company delivered 2,658 homes in the fourth quarter, a solid 13% increase. New contracts, which give us a peek into future activity, also saw a robust 29% rise to 2,900. Perhaps most telling for what's ahead, their backlog – the number of homes sold but not yet delivered – absolutely exploded. Its value soared by a staggering 78% to $2.1 billion, representing 5,456 homes. Talk about having a strong pipeline for the coming year, right?

From a financial health perspective, the gross margin percentage expanded nicely, reaching 23.6% compared to 20.3% in the prior year's fourth quarter. This indicates improved profitability on each home sold, which is always a good sign. What's more, selling, general, and administrative expenses (SG&A) actually decreased as a percentage of revenue, dropping to 10.3% from 11.2%. This tells us they're managing their overhead effectively, a clear sign of a well-run operation.

Zooming out to the full year, the picture is just as bright, if not brighter. Total revenue for 2020 climbed 14% to a formidable $3.0 billion. Net income followed suit, growing by 32% to $228.6 million, pushing diluted EPS up 31% to $7.78. They delivered 8,197 homes throughout the year, a respectable 9% increase, and signed 9,076 new contracts, up 24% from 2019. The average sales price of homes delivered also saw a healthy bump to $369,000, from $352,000. It really paints a consistent picture of growth across the board.

Naturally, CEO Bob Schottenstein couldn't be more pleased with these results. He remarked on what an "exceptional quarter and year" it had been, especially highlighting the "remarkable recovery" after a somewhat challenging second quarter. It’s a testament, he suggested, to the incredible demand they've seen across all their divisions, bolstered by those ever-favorable interest rates. He also gave a heartfelt nod to the entire M/I Homes team, whose hard work, he believes, truly drove this outstanding performance. And, let's be honest, he's absolutely right – such results don't just happen by themselves.

So, what does all this mean for the future? Well, with that significantly expanded backlog, M/I Homes is certainly starting 2021 from a position of immense strength. The momentum from 2020, fueled by strong market conditions and efficient operations, looks set to carry forward. It’s clear they’ve built a robust foundation, ready to continue their growth story. Definitely a company to keep an eye on in the homebuilding space, wouldn't you agree?