1. M/I Homes is a builder of single-family homes.
Relative to the year-ago quarter, the companyâ¿¿s selling, general and administrative expenses improved during the second quarter of 2011 to generate an eighth straight quarter of positive adjusted EBITDA. Adjusted operating gross margin improved 70 bps, sequentially.
New contracts for 2011 second quarter were up 5% to 635 from 602 in the same quarter last year. During the quarter, M/I opened four new communities and expanded presence in Texas through the acquisition of San Antonio-based TriStone Homes.The company generated positive cash flows from its operations during the quarter with cash balance of $114 million and net debt to net capital ratio of 0.37. All analysts polled by Bloomberg rate the stock a buy, and the average analyst price target implies the stock could gain 148% over the next year. Shares currently trade with a P/E of 20, based on 2012 earnings estimates.