M/I Homes, Inc. (NYSE:MHO) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 25, 2018 • 04:00 pm ET
Good afternoon, ladies and gentlemen. My name is Leticia, and I will be your conference operator. At this time, I would like to welcome everyone to the M/I Homes first quarter conference call. (Operator Instructions).
I would now like to turn the call over to Phil Creek. Please go ahead, sir.
Thank you. And thank you for joining us today. On the call is Bob Schottenstein, our CEO and President; Tom Mason, EVP; Derek Klutch, President of our mortgage company; Ann Marie Hunker, VP, Corporate Controller; and Kevin Hake, SVP. 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 nonpublic 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. Also during this call, we disclose certain non-GAAP financial measures. A presentation of the most directly comparable financial measure calculated in accordance with GAAP and a reconciliation of the differences between the non-GAAP financial measure and the GAAP measure was included in our earnings release issued earlier today that is available on our website.
With that, I'll turn the call over to Bob.
Thanks, Phil. Good afternoon, everyone, and thank you for joining our call to review our first quarter results. We are pleased to report a strong start to the year. Our first quarter results set all-time first quarter records for revenues, homes delivered and the highest number of new contracts for any quarter in our 42-year history. Our first quarter new contracts increased 20% over last year, selling 1,739 homes, with strong sales across most of our markets. And our sales absorptions per community also improved in the first quarter to a selling pace of three contracts per month compared to 2.7 contracts per month last year.
This is an indication of continued market strength and demand for housing in addition to the successful execution of our product design strategies and our continued focus on premier locations. As a result of our strong sales, our backlog sales value increased 31% compared with the end of last year's first quarter to a first quarter record of $1.1 billion. And units and backlog were up 24% to 2,744 homes. We reported net income of $18.1 million for the first quarter of 2018, equating to $0.60 per diluted share, and this represents an increase of 9% in earnings per share over last year's first quarter.
Total revenues for the quarter increased 8% to a record $438 million while the average home closing price was flat compared with a year ago, coming in at around $373,000 a house. We closed 1,122 homes in the first quarter, which was also a first quarter record for our company, and this