M/I Homes said this week that for the third quarter of 2010, the Company reported a net loss of $2.1 million, compared to a net loss of $21.1 million during the third quarter of 2009. During the quarter, the company delivered 515 homes, a decrease of 23 percent from a year earlier. New contracts also decreased 21 percent, to 489 from a year earlier.
Robert H. Schottenstein, Chief Executive Officer and President, commented, "Housing conditions continued to be challenging during our third quarter. We experienced sluggish demand for new homes linked to high unemployment rates and low levels of consumer confidence across our markets. From a macro standpoint, demand for new homes has been adversely affected by weak and uncertain general economic conditions along with the expiration of the federal homebuyer tax credit. Despite these conditions and our decline in volume, we were pleased that our third quarter operating gross margin of 18.1% reached its highest level in three years, and improved by more than 200 basis points from the second quarter's 16.0 %. Our selling, general and administrative expenses declined compared to the prior year quarter and our net loss improved to $2 million from a loss of $21 million a year ago."
M/I homes markets and sells under the trade names M/I Homes and Showcase Homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Chicago, Illinois; Indianapolis, Indiana; Tampa and Orlando, Florida; Charlotte and Raleigh, North Carolina; the Virginia and Maryland suburbs of Washington, D.C.; and Houston, Texas.