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 January 31, 2013. |
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 January 31, 2013. |
• | Adjusted pre-tax income from operations of $7.0 million |
• | Net income of $5.0 million; diluted earnings per share of $0.23 |
• | New contracts and homes delivered increased 33% |
• | Adjusted gross margin improved 120 basis points to 19.6% |
• | Backlog units and value increased 43% and 56% |
• | Adjusted EBITDA of $18.2 million |
• | Cash balance of $154.2 million |
• | Net debt to net capital ratio of 39% |
• | Adjusted pre-tax income from operations of $13.5 million |
• | Net income of $13.3 million; diluted earnings per share of $0.67 |
• | New contracts and homes delivered increased 27% and 21% |
• | Adjusted gross margin improved 200 basis points to 19.5% |
• | Adjusted EBITDA of $56.0 million |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
New contracts | 673 | 505 | 3,020 | 2,381 | |||||||||||
Average community count | 130 | 121 | 125 | 116 | |||||||||||
Cancellation rate | 21 | % | 23 | % | 17 | % | 19 | % | |||||||
Backlog units | 965 | 676 | |||||||||||||
Backlog value | $ | 282,540 | $ | 180,655 | |||||||||||
Homes delivered | 887 | 667 | 2,765 | 2,278 | |||||||||||
Average home closing price | $ | 273 | $ | 257 | $ | 264 | $ | 242 | |||||||
Homebuilding revenue: | |||||||||||||||
Housing revenue | $ | 242,373 | $ | 171,687 | $ | 728,772 | $ | 550,848 | |||||||
Land revenue | 905 | — | 9,877 | 1,110 | |||||||||||
Total homebuilding revenue | $ | 243,278 | $ | 171,687 | $ | 738,649 | $ | 551,958 | |||||||
Financial services revenue | 7,633 | 5,099 | 23,256 | 14,466 | |||||||||||
Total revenue | $ | 250,911 | $ | 176,786 | $ | 761,905 | $ | 566,424 | |||||||
Cost of sales - operations | 201,647 | 144,244 | 613,540 | 467,130 | |||||||||||
Cost of sales - impairment | 1,626 | 3,980 | 3,502 | 21,993 | |||||||||||
Cost of sales - other | — | — | (3,000 | ) | — | ||||||||||
Gross margin | 47,638 | 28,562 | 147,863 | 77,301 | |||||||||||
General and administrative expense | 20,328 | 14,600 | 62,627 | 52,664 | |||||||||||
Selling expense | 17,923 | 12,913 | 56,406 | 43,534 | |||||||||||
Operating profit (loss) | 9,387 | 1,049 | 28,830 | (18,897 | ) | ||||||||||
Interest expense | 4,005 | 4,121 | 16,071 | 15,005 | |||||||||||
Income (loss) before income taxes | 5,382 | (3,072 | ) | 12,759 | (33,902 | ) | |||||||||
Expense (benefit) from income taxes | 367 | (96 | ) | (588 | ) | (25 | ) | ||||||||
Net income (loss) | $ | 5,015 | $ | (2,976 | ) | $ | 13,347 | $ | (33,877 | ) | |||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.23 | $ | (0.16 | ) | $ | 0.68 | $ | (1.81 | ) | |||||
Diluted | $ | 0.23 | $ | (0.16 | ) | $ | 0.67 | $ | (1.81 | ) | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 21,545 | 18,736 | 19,651 | 18,698 | |||||||||||
Diluted | 21,961 | 18,736 | 19,891 | 18,698 |
As of | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 154,178 | $ | 101,127 | |||
Mortgage loans held for sale | 71,121 | 57,275 | |||||
Inventory: | |||||||
Lots, land and land development | 257,397 | 242,372 | |||||
Land held for sale | 8,442 | — | |||||
Homes under construction | 221,432 | 181,483 | |||||
Other inventory | 69,546 | 42,917 | |||||
Total inventory | $ | 556,817 | $ | 466,772 | |||
Property and equipment - net | 10,439 | 14,358 | |||||
Investments in unconsolidated joint ventures | 11,732 | 10,357 | |||||
Other assets(2) | 27,013 | 14,596 | |||||
Total Assets | $ | 831,300 | $ | 664,485 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 227,670 | $ | 239,016 | |||
Convertible senior subordinated notes | 57,500 | — | |||||
Notes payable - other | 11,105 | 5,801 | |||||
Total Debt - Homebuilding Operations | $ | 296,275 | $ | 244,817 | |||
Note payable bank - financial services operations | 67,957 | 52,606 | |||||
Total Debt | $ | 364,232 | $ | 297,423 | |||
Accounts payable | 47,690 | 41,256 | |||||
Other liabilities | 83,950 | 52,456 | |||||
Total Liabilities | $ | 495,872 | $ | 391,135 | |||
Shareholders' Equity | 335,428 | 273,350 | |||||
Total Liabilities and Shareholders' Equity | $ | 831,300 | $ | 664,485 | |||
Book value per common share | $ | 10.86 | $ | 9.25 | |||
Net debt/net capital ratio(3) | 39 | % | 42 | % |
(1) | 2012 and 2011 amounts include $8.5 million and $41.3 million of restricted cash and cash held in escrow, respectively. |
(2) | 2012 and 2011 amounts include gross deferred tax assets of $135.7 million and $140.8 million, respectively, net of valuation allowances of $135.7 million and $140.8 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 | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Adjusted operating gross margin(1) | $ | 49,264 | $ | 32,542 | $ | 148,365 | $ | 99,294 | |||||||
Adjusted operating gross margin %(1) | 19.6 | % | 18.4 | % | 19.5 | % | 17.5 | % | |||||||
Adjusted pre-tax income (loss) from operations(1) | $ | 7,008 | $ | 1,442 | $ | 13,517 | $ | (10,935 | ) | ||||||
Adjusted EBITDA(1) | $ | 18,215 | $ | 10,702 | $ | 55,966 | $ | 23,344 | |||||||
Cash flow provided by (used in) operating activities | $ | (30,674 | ) | $ | (18,197 | ) | $ | (46,995 | ) | $ | (33,961 | ) | |||
Cash provided by (used in) investing activities | $ | (555 | ) | $ | 1,399 | $ | 25,322 | $ | (9,324 | ) | |||||
Cash provided by (used in) financing activities | $ | 16,962 | $ | 20,960 | $ | 107,378 | $ | 21,870 | |||||||
Land/lot purchases | $ | 52,214 | $ | 15,696 | $ | 138,735 | $ | 72,312 | |||||||
Land development spending | $ | 19,229 | $ | 11,460 | $ | 56,389 | $ | 44,942 | |||||||
Land/lot sale proceeds | $ | 905 | $ | — | $ | 9,877 | $ | 1,110 | |||||||
Financial services pre-tax income | $ | 3,503 | $ | 2,128 | $ | 11,015 | $ | 5,687 | |||||||
Deferred tax valuation (benefit) expense | $ | (1,355 | ) | $ | (1,293 | ) | $ | (5,076 | ) | $ | (12,950 | ) |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Impairment by Region: | 2012 | 2011 | 2012 | 2011 | |||||||||||
Midwest | $ | 1,626 | $ | 2,015 | $ | 3,502 | $ | 13,457 | |||||||
Southern | — | 149 | — | 6,703 | |||||||||||
Mid-Atlantic | — | 1,816 | — | 1,833 | |||||||||||
Total | $ | 1,626 | $ | 3,980 | $ | 3,502 | $ | 21,993 | |||||||
Abandonments by Region: | |||||||||||||||
Midwest | $ | — | $ | 298 | $ | 36 | $ | 441 | |||||||
Southern | — | 33 | 110 | 89 | |||||||||||
Mid-Atlantic | — | 203 | 110 | 444 | |||||||||||
Total | $ | — | $ | 534 | $ | 256 | $ | 974 |
(1) | See “Non-GAAP Financial Results / Reconciliations” table below. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Gross margin | $ | 47,638 | $ | 28,562 | $ | 147,863 | $ | 77,301 | |||||||
Add: Impairments | 1,626 | 3,980 | 3,502 | 21,993 | |||||||||||
Imported drywall | — | — | (3,000 | ) | — | ||||||||||
Adjusted operating gross margin | $ | 49,264 | $ | 32,542 | $ | 148,365 | $ | 99,294 | |||||||
Income (loss) before income taxes | $ | 5,382 | $ | (3,072 | ) | $ | 12,759 | $ | (33,902 | ) | |||||
Add: Impairments and abandonments | 1,626 | 4,514 | 3,758 | 22,967 | |||||||||||
Imported drywall | — | — | (3,000 | ) | — | ||||||||||
Adjusted pre-tax income (loss) from operations | $ | 7,008 | $ | 1,442 | $ | 13,517 | $ | (10,935 | ) | ||||||
Net income (loss) | $ | 5,015 | $ | (2,976 | ) | $ | 13,347 | $ | (33,877 | ) | |||||
Add: | |||||||||||||||
Income tax expense (benefit) | 367 | (96 | ) | (588 | ) | (25 | ) | ||||||||
Interest expense net of interest income | 3,655 | 3,752 | 14,607 | 13,889 | |||||||||||
Interest amortized to cost of sales | 4,236 | 3,277 | 13,366 | 10,949 | |||||||||||
Depreciation and amortization | 2,980 | 1,889 | 9,742 | 7,574 | |||||||||||
Non-cash charges | 1,962 | 4,856 | 5,492 | 24,834 | |||||||||||
Adjusted EBITDA | $ | 18,215 | $ | 10,702 | $ | 55,966 | $ | 23,344 |
NEW CONTRACTS | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||
Midwest | 231 | 196 | 18 | % | 1,144 | 1,042 | 10 | % | |||||||||
Southern | 259 | 156 | 66 | % | 966 | 607 | 59 | % | |||||||||
Mid-Atlantic | 183 | 153 | 20 | % | 910 | 732 | 24 | % | |||||||||
Total | 673 | 505 | 33 | % | 3,020 | 2,381 | 27 | % |
HOMES DELIVERED | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||
Midwest | 318 | 250 | 27 | % | 1,113 | 991 | 12 | % | |||||||||
Southern | 280 | 176 | 59 | % | 823 | 571 | 44 | % | |||||||||
Mid-Atlantic | 289 | 241 | 20 | % | 829 | 716 | 16 | % | |||||||||
Total | 887 | 667 | 33 | % | 2,765 | 2,278 | 21 | % |
BACKLOG | |||||||||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 418 | $ | 113 | $ | 270,000 | 387 | $ | 100 | $ | 259,000 | |||||||||||
Southern | 341 | $ | 96 | $ | 280,000 | 164 | $ | 40 | $ | 241,000 | |||||||||||
Mid-Atlantic | 206 | $ | 74 | $ | 360,000 | 125 | $ | 41 | $ | 328,000 | |||||||||||
Total | 965 | $ | 283 | $ | 293,000 | 676 | $ | 181 | $ | 267,000 |
LAND POSITION SUMMARY | ||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,384 | 1,629 | 5,013 | 3,903 | 795 | 4,698 | ||||||||
Southern | 2,160 | 2,827 | 4,987 | 1,460 | 964 | 2,424 | ||||||||
Mid-Atlantic | 1,874 | 2,329 | 4,203 | 1,794 | 1,437 | 3,231 | ||||||||
Total | 7,418 | 6,785 | 14,203 | 7,157 | 3,196 | 10,353 |
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