M/I Homes, Inc. (MHO) Q3 2023 Earnings Conference Call October 25, 2023 10:30 AM ET

Company Participants

Phillip Creek - EVP and CFO

Robert Schottenstein - CEO and President

Derek Klutch - President, Mortgage Company

Conference Call Participants

Jesse Lederman - Zelman & Associates

Carl Reichardt - BTIG

Alex Barron - Housing Research Center

Operator

Good morning, ladies and gentlemen, and welcome to the M/I Homes, Inc. Third Quarter Earnings Conference Call. At this time, all lines are in listen-only mode. Following a presentation we will conduct a question-and-answer session. [Operator Instructions]. This call is being recorded on Wednesday, October 25th, 2023.

I'd now like to turn the conference over to Phil Creek. Please go ahead.

Phillip Creek

Thanks. Thanks for joining us. Joining me on the call today is Bob Schottenstein, our CEO and President; and Derek Klutch, President of our Mortgage Company. First, to address Regulation Fair Disclosure, we encourage you to ask any questions regarding issues that you consider material during this call because we are prohibited from discussing significant non-public items with you directly.

And as to forward-looking statements, I want to remind everyone that the cautionary language about forward-looking statements contained in today's press release also applies to any comments made during this call. Also be advised that the company undertakes no obligation to update any forward-looking statements made during this call.

I'll now turn the call over to Bob.

Robert Schottenstein

Thanks, Phil. Good morning, and thank you for joining our call to review M/I Homes third quarter results. We had an outstanding quarter, one of the best in company history, highlighted by record revenue, record income, a 50% increase in new contracts, and very strong margins and returns.

In addition, we ended the quarter with record shareholders equity and a balance sheet that's as strong as at any time in our 47-year history. Our third quarter results build upon the very strong results we previously reported in the first and second quarters of this year.

We are particularly pleased to report these results, notwithstanding an unprecedented rapid rise in interest rates, continued concerns from all kinds of macroeconomic factors, as well as heightened conflict in the Middle East and across the globe.

We increased our revenues during the quarter by 3% to a record $1 billion, deliveries during the quarter also increased by 3%. Pre-tax income improved by 7% to a record $178 million. Gross margins for the quarter improved to 27%. That's 10 basis points better than last year and 140 basis points better than our second quarter.