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 25, 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 April 25, 2013. |
• | Net income of $4.6 million |
• | Diluted earnings per share of $0.11 |
• | New contracts increased 37% |
• | Homes delivered increased 24% |
• | Backlog units and value increased 48% and 60%, respectively |
• | Cash balance of $273 million |
• | Net debt to net capital ratio of 38% |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
New contracts | 1,047 | 764 | |||||
Average community count | 133 | 122 | |||||
Cancellation rate | 15 | % | 14 | % | |||
Backlog units | 1,385 | 933 | |||||
Backlog value | $ | 401,186 | $ | 251,379 | |||
Homes delivered | 627 | 507 | |||||
Average home closing price | $ | 284 | $ | 249 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ | 177,790 | $ | 126,078 | |||
Land revenue | 4,527 | 731 | |||||
Total homebuilding revenue | $ | 182,317 | $ | 126,809 | |||
Financial services revenue | 8,410 | 4,316 | |||||
Total revenue | $ | 190,727 | $ | 131,125 | |||
Cost of sales - operations | 151,513 | 107,330 | |||||
Cost of sales - impairment | 900 | 95 | |||||
Gross margin | 38,314 | 23,700 | |||||
General and administrative expense | 15,979 | 12,457 | |||||
Selling expense | 13,109 | 11,011 | |||||
Operating income | 9,226 | 232 | |||||
Interest expense | 4,340 | 4,606 | |||||
Income (loss) before income taxes | 4,886 | (4,374 | ) | ||||
Expense (benefit) from income taxes | 299 | (1,188 | ) | ||||
Net income (loss) | $ | 4,587 | $ | (3,186 | ) | ||
Excess of fair value over book value of preferred stock subject to redemption | $ | 2,190 | $ | — | |||
Net income (loss) to common shareholders | $ | 2,397 | $ | (3,186 | ) | ||
Earnings (loss) per share: | |||||||
Basic | $ | 0.11 | $ | (0.17 | ) | ||
Diluted | $ | 0.11 | $ | (0.17 | ) | ||
Weighted average shares outstanding: | |||||||
Basic | 22,273 | 18,772 | |||||
Diluted | 22,688 | 18,772 |
As of | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 272,551 | $ | 80,711 | |||
Mortgage loans held for sale | 57,721 | 45,345 | |||||
Inventory: | |||||||
Lots, land and land development | 255,934 | 254,609 | |||||
Land held for sale | 8,591 | 3,243 | |||||
Homes under construction | 245,074 | 185,242 | |||||
Other inventory | 68,041 | 46,964 | |||||
Total inventory | $ | 577,640 | $ | 490,058 | |||
Property and equipment - net | 9,994 | 13,531 | |||||
Investments in unconsolidated joint ventures | 22,275 | 10,716 | |||||
Other assets(2) | 28,471 | 17,372 | |||||
Total Assets | $ | 968,652 | $ | 657,733 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 227,770 | $ | 239,118 | |||
Convertible senior subordinated notes due 2017 | 57,500 | — | |||||
Convertible senior subordinated notes due 2018 | 86,250 | — | |||||
Preferred stock - subject to redemption | 50,352 | — | |||||
Notes payable - other | 10,316 | 5,881 | |||||
Total Debt - Homebuilding Operations | $ | 432,188 | $ | 244,999 | |||
Note payable bank - financial services operations | 53,126 | 41,580 | |||||
Total Debt | $ | 485,314 | $ | 286,579 | |||
Accounts payable | 57,071 | 41,068 | |||||
Other liabilities | 81,266 | 59,071 | |||||
Total Liabilities | $ | 623,651 | $ | 386,718 | |||
Shareholders' Equity | 345,001 | 271,015 | |||||
Total Liabilities and Shareholders' Equity | $ | 968,652 | $ | 657,733 | |||
Book value per common share | $ | 12.20 | $ | 9.10 | |||
Net debt/net capital ratio(3) | 38 | % | 43 | % |
(1) | 2013 and 2012 amounts include $9.5 million and $13.7 million of restricted cash and cash held in escrow, respectively. |
(2) | 2013 and 2012 amounts include gross deferred tax assets of $134.0 million and $142.0 million, respectively, net of valuation allowances of $134.0 million and $142.0 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, | |||||||
2013 | 2012 | ||||||
Adjusted EBITDA(1) | $ | 15,963 | $ | 4,929 | |||
Cash flow provided by (used in) operating activities | $ | 8,558 | $ | (7,675 | ) | ||
Cash (used in) provided by investing activities | $ | (12,702 | ) | $ | 27,332 | ||
Cash provided by (used in) financing activities | $ | 121,703 | $ | (12,472 | ) | ||
Land/lot purchases | $ | 44,381 | $ | 30,452 | |||
Land development spending | $ | 15,728 | $ | 9,312 | |||
Land/lot sale proceeds | $ | 4,527 | $ | 731 | |||
Financial services pre-tax income | $ | 5,136 | $ | 2,068 | |||
Deferred tax valuation (benefit) expense | $ | (1,788 | ) | $ | 1,140 |
(1) | See "Non-GAAP Financial Results / Reconciliation" table below. |
Three Months Ended | |||||||
March 31, | |||||||
Impairment by Region: | 2013 | 2012 | |||||
Midwest | $ | 900 | $ | 95 | |||
Southern | — | — | |||||
Mid-Atlantic | — | — | |||||
Total | $ | 900 | $ | 95 | |||
Abandonments by Region: | |||||||
Midwest | $ | — | $ | 2 | |||
Southern | — | 7 | |||||
Mid-Atlantic | — | 22 | |||||
Total | $ | — | $ | 31 |
Three Months Ended | |||||||
March 31, | |||||||
2013 | 2012 | ||||||
Net income (loss) | $ | 4,587 | $ | (3,186 | ) | ||
Add: | |||||||
Income tax expense (benefit) | 299 | (1,188 | ) | ||||
Interest expense net of interest income | 4,055 | 4,237 | |||||
Interest amortized to cost of sales | 3,465 | 2,564 | |||||
Depreciation and amortization | 2,138 | 1,942 | |||||
Non-cash charges | 1,419 | 560 | |||||
Adjusted EBITDA | $ | 15,963 | $ | 4,929 |
NEW CONTRACTS | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2013 | 2012 | Change | |||||
Midwest | 349 | 340 | 3 | % | ||||
Southern | 378 | 214 | 77 | % | ||||
Mid-Atlantic | 320 | 210 | 52 | % | ||||
Total | 1,047 | 764 | 37 | % |
HOMES DELIVERED | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2013 | 2012 | Change | |||||
Midwest | 232 | 233 | — | % | ||||
Southern | 191 | 133 | 44 | % | ||||
Mid-Atlantic | 204 | 141 | 45 | % | ||||
Total | 627 | 507 | 24 | % |
BACKLOG | |||||||||||||||||||||
March 31, 2013 | March 31, 2012 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 535 | $ | 144 | $ | 270,000 | 494 | $ | 127 | $ | 257,000 | |||||||||||
Southern | 528 | $ | 148 | $ | 280,000 | 245 | $ | 59 | $ | 242,000 | |||||||||||
Mid-Atlantic | 322 | $ | 109 | $ | 339,000 | 194 | $ | 65 | $ | 336,000 | |||||||||||
Total | 1,385 | $ | 401 | $ | 290,000 | 933 | $ | 251 | $ | 269,000 |
LAND POSITION SUMMARY | ||||||||||||||
March 31, 2013 | March 31, 2012 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,078 | 2,989 | 6,067 | 3,490 | 1,071 | 4,561 | ||||||||
Southern | 2,693 | 3,800 | 6,493 | 1,402 | 995 | 2,397 | ||||||||
Mid-Atlantic | 1,685 | 2,124 | 3,809 | 2,031 | 1,395 | 3,426 | ||||||||
Total | 7,456 | 8,913 | 16,369 | 6,923 | 3,461 | 10,384 |
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