CURRENT REPORT |
PURSUANT TO SECTION 13 OR 15(D) |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
M/I HOMES, INC. | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Ohio | 1-12434 | 31-1210837 | ||||
(State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||||
of Incorporation) | File Number) | Identification No.) |
(614) 418-8000 |
(Telephone Number) |
N/A |
(Former name or former address, if changed since last report) |
Exhibit No. | Description of Documents | |
99.1 | Press release dated April 26, 2012. |
By: | /s/ Ann Marie W. Hunker |
Ann Marie W. Hunker | |
Vice President and Corporate Controller | |
(Principal Accounting Officer) |
Exhibit No. | Description of Documents | |
99.1 | Press release dated April 26, 2012. |
• | New contracts increased 17% |
• | Homes delivered increased 15% |
• | Backlog units increased 25% and backlog sales value increased 33% |
• | Net loss of $3.2 million, compared to a net loss of $17.0 million a year ago |
• | Adjusted EBITDA of $4.9 million |
• | Cash balance of $81 million, including $67 million of unrestricted cash |
• | Net debt to net capital ratio of 43% |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
New contracts | 764 | 654 | |||||
Average community count | 122 | 111 | |||||
Cancellation rate | 14 | % | 16 | % | |||
Backlog units | 933 | 747 | |||||
Backlog value | $ | 251,379 | $ | 188,403 | |||
Homes delivered | 507 | 439 | |||||
Average home closing price | $ | 249 | $ | 243 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ | 126,078 | $ | 106,520 | |||
Land revenue | 731 | 850 | |||||
Total homebuilding revenue | $ | 126,809 | $ | 107,370 | |||
Financial services revenue | 4,316 | 3,200 | |||||
Total revenue | $ | 131,125 | $ | 110,570 | |||
Cost of sales - operations | 107,330 | 92,574 | |||||
Cost of sales - impairment | 95 | 10,871 | |||||
Gross margin | 23,700 | 7,125 | |||||
General and administrative expense | 12,457 | 11,402 | |||||
Selling expense | 11,011 | 8,654 | |||||
Operating profit (loss) | 232 | (12,931 | ) | ||||
Interest expense | 4,606 | 4,035 | |||||
Loss before income taxes | (4,374 | ) | (16,966 | ) | |||
(Benefit) expense from income taxes | (1,188 | ) | 73 | ||||
Net loss | (3,186 | ) | (17,039 | ) | |||
Net loss per share | $ | (0.17 | ) | $ | (0.92 | ) | |
Weighted average shares outstanding: | |||||||
Basic | 18,772 | 18,615 | |||||
Diluted | 18,772 | 18,615 |
As of | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 80,711 | $ | 127,029 | |||
Mortgage loans held for sale | 45,345 | 33,182 | |||||
Inventory: | |||||||
Lots, land and land development | 254,609 | 258,038 | |||||
Land held for sale | 3,243 | — | |||||
Homes under construction | 185,242 | 150,286 | |||||
Other inventory | 46,964 | 35,154 | |||||
Total inventory | $ | 490,058 | $ | 443,478 | |||
Property and equipment - net | 13,531 | 15,952 | |||||
Investments in unconsolidated joint ventures | 10,716 | 10,822 | |||||
Income tax receivable | 592 | 1,162 | |||||
Other assets(2) | 16,780 | 14,117 | |||||
Total Assets | $ | 657,733 | $ | 645,742 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 239,118 | $ | 238,711 | |||
Notes payable - other | 5,881 | 5,773 | |||||
Total Debt - Homebuilding Operations | $ | 244,999 | $ | 244,484 | |||
Note payable bank - financial services operations | 41,580 | 26,024 | |||||
Total Debt | $ | 286,579 | $ | 270,508 | |||
Accounts payable | 41,068 | 32,242 | |||||
Other liabilities | 59,071 | 54,210 | |||||
Total Liabilities | $ | 386,718 | $ | 356,960 | |||
Shareholders' Equity | 271,015 | 288,782 | |||||
Total Liabilities and Shareholders' Equity | $ | 657,733 | $ | 645,742 | |||
Book value per common share | $ | 9.10 | $ | 10.09 | |||
Net debt/net capital ratio(3) | 43 | % | 33 | % |
(1) | 2012 and 2011 amounts include $13.7 million and $46.7 million of restricted cash and cash held in escrow, respectively. |
(2) | 2012 and 2011 amounts include gross deferred tax assets of $142.0 million and $134.4 million, respectively, net of valuation allowances of $142.0 million and $134.4 million, respectively. |
(3) | Net debt/net capital ratio is calculated as total debt minus total cash and cash equivalents, divided by the sum of total debt minus total cash and cash equivalents plus shareholders' equity. |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Adjusted operating gross margin(1) | $ | 23,795 | $ | 17,996 | |||
Adjusted operating gross margin %(1) | 18.1 | % | 16.3 | % | |||
Adjusted pre-tax loss from operations(1) | $ | (4,248 | ) | $ | (5,837 | ) | |
Adjusted EBITDA(1) | $ | 4,929 | $ | 2,692 | |||
Cash flow (used in) provided by operating activities | $ | (7,675 | ) | $ | 2,627 | ||
Cash provided by investing activities | $ | 27,332 | $ | 994 | |||
Cash used in financing activities | $ | (12,472 | ) | $ | (4,468 | ) | |
Land/lot purchases | $ | 30,452 | $ | 19,277 | |||
Land development spending | $ | 9,312 | $ | 7,565 | |||
Land/lot sale proceeds | $ | 731 | $ | 850 | |||
Financial services pre-tax income | $ | 2,068 | $ | 1,352 | |||
Deferred tax asset valuation allowance | $ | 1,140 | $ | 6,558 |
Three Months Ended | |||||||
March 31, | |||||||
Impairment by Region: | 2012 | 2011 | |||||
Midwest | $ | 95 | $ | 5,012 | |||
Southern | — | 5,859 | |||||
Mid-Atlantic | — | — | |||||
Total | $ | 95 | $ | 10,871 | |||
Abandonments by Region: | |||||||
Midwest | $ | 2 | $ | 21 | |||
Southern | 7 | 8 | |||||
Mid-Atlantic | 22 | 229 | |||||
Total | $ | 31 | $ | 258 |
(1) | See “Non-GAAP Financial Results / Reconciliations” table below. |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Gross margin | $ | 23,700 | $ | 7,125 | |||
Add: Impairments | 95 | 10,871 | |||||
Adjusted operating gross margin | $ | 23,795 | $ | 17,996 | |||
Loss before income taxes | $ | (4,374 | ) | $ | (16,966 | ) | |
Add: Impairments and abandonments | 126 | 11,129 | |||||
Adjusted pre-tax loss from operations | $ | (4,248 | ) | $ | (5,837 | ) | |
Net loss | $ | (3,186 | ) | $ | (17,039 | ) | |
Add: | |||||||
Income taxes | (1,188 | ) | 73 | ||||
Interest expense net of interest income | 4,237 | 3,807 | |||||
Interest amortized to cost of sales | 2,564 | 2,338 | |||||
Depreciation and amortization | 1,942 | 1,901 | |||||
Non-cash charges | 560 | 11,612 | |||||
Adjusted EBITDA | $ | 4,929 | $ | 2,692 |
NEW CONTRACTS | HOMES DELIVERED | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||
Midwest | 340 | 287 | 18 | % | 233 | 214 | 9 | % | |||||||||
Southern | 214 | 159 | 35 | % | 133 | 79 | 68 | % | |||||||||
Mid-Atlantic | 210 | 208 | 1 | % | 141 | 146 | (3 | )% | |||||||||
Total | 764 | 654 | 17 | % | 507 | 439 | 15 | % |
BACKLOG | |||||||||||||||||||||
March 31, 2012 | March 31, 2011 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 494 | $ | 127 | $ | 257,000 | 409 | $ | 97 | $ | 238,000 | |||||||||||
Southern | 245 | $ | 59 | $ | 242,000 | 167 | $ | 40 | $ | 240,000 | |||||||||||
Mid-Atlantic | 194 | $ | 65 | $ | 336,000 | 171 | $ | 51 | $ | 298,000 | |||||||||||
Total | 933 | $ | 251 | $ | 269,000 | 747 | $ | 188 | $ | 252,000 |
LAND POSITION SUMMARY | ||||||||||||||
March 31, 2012 | March 31, 2011 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,490 | 1,071 | 4,561 | 4,222 | 1,138 | 5,360 | ||||||||
Southern | 1,402 | 995 | 2,397 | 1,453 | 291 | 1,744 | ||||||||
Mid-Atlantic | 2,031 | 1,395 | 3,426 | 1,959 | 1,024 | 2,983 | ||||||||
Total | 6,923 | 3,461 | 10,384 | 7,634 | 2,453 | 10,087 |
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