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 24, 2014. |
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 24, 2014. |
• | Pre-tax income of $12.5 million - a 156% increase over 2013’s first quarter |
• | Net income of $12.6 million, including a $5.3 million benefit from the reversal |
• | Diluted earnings per share of $0.41 ($0.23 per share excluding the impact |
• | Homes delivered increased 18%; New contracts declined 6% |
• | Backlog sales value and units increased 24% and 10%, respectively |
• | Cash balance of $101 million |
• | Net debt to net capital ratio of 39% |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
New contracts | 982 | 1,047 | |||||
Average community count | 158 | 133 | |||||
Cancellation rate | 16 | % | 15 | % | |||
Backlog units | 1,525 | 1,385 | |||||
Backlog value | $ | 496,428 | $ | 401,186 | |||
Homes delivered | 737 | 627 | |||||
Average home closing price | $ | 299 | $ | 284 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ | 220,710 | $ | 177,790 | |||
Land revenue | 6,266 | 4,527 | |||||
Total homebuilding revenue | $ | 226,976 | $ | 182,317 | |||
Financial services revenue | 7,865 | 8,410 | |||||
Total revenue | $ | 234,841 | $ | 190,727 | |||
Cost of sales - operations | 183,964 | 151,513 | |||||
Cost of sales - impairment | — | 900 | |||||
Gross margin | 50,877 | 38,314 | |||||
General and administrative expense | 18,315 | 15,979 | |||||
Selling expense | 15,969 | 13,109 | |||||
Operating income | 16,593 | 9,226 | |||||
Income from unconsolidated joint ventures | (62 | ) | — | ||||
Interest expense | 4,170 | 4,340 | |||||
Income before income taxes | 12,485 | 4,886 | |||||
(Benefit) provision for income taxes | (147 | ) | 299 | ||||
Net income | $ | 12,632 | $ | 4,587 | |||
Excess of fair value over book value of preferred shares redeemed | $ | — | $ | 2,190 | |||
Preferred dividends | $ | 1,219 | $ | — | |||
Net income to common shareholders | $ | 11,413 | $ | 2,397 | |||
Earnings per share: | |||||||
Basic | $ | 0.47 | $ | 0.11 | |||
Diluted | $ | 0.41 | $ | 0.11 | |||
Weighted average shares outstanding: | |||||||
Basic | 24,417 | 22,273 | |||||
Diluted | 29,870 | 22,688 |
As of | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 100,911 | $ | 272,551 | |||
Mortgage loans held for sale | 55,750 | 57,721 | |||||
Inventory: | |||||||
Lots, land and land development | 337,137 | 255,934 | |||||
Land held for sale | 3,623 | 8,591 | |||||
Homes under construction | 325,439 | 245,074 | |||||
Other inventory | 57,428 | 68,041 | |||||
Total inventory | $ | 723,627 | $ | 577,640 | |||
Property and equipment - net | 10,506 | 9,994 | |||||
Investments in unconsolidated joint ventures | 44,847 | 22,275 | |||||
Deferred income taxes, net of valuation allowance(2) | 111,214 | — | |||||
Other assets | 38,048 | 28,471 | |||||
Total Assets | $ | 1,084,903 | $ | 968,652 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 228,169 | $ | 227,770 | |||
Convertible senior subordinated notes due 2017 | 57,500 | 57,500 | |||||
Convertible senior subordinated notes due 2018 | 86,250 | 86,250 | |||||
Preferred stock - subject to redemption | — | 50,352 | |||||
Notes payable - other | 7,757 | 10,316 | |||||
Total Debt - Homebuilding Operations | $ | 379,676 | $ | 432,188 | |||
Note payable bank - financial services operations | 51,532 | 53,126 | |||||
Total Debt | $ | 431,208 | $ | 485,314 | |||
Accounts payable | 71,376 | 57,071 | |||||
Other liabilities | 75,728 | 81,266 | |||||
Total Liabilities | $ | 578,312 | $ | 623,651 | |||
Shareholders' Equity | 506,591 | 345,001 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,084,903 | $ | 968,652 | |||
Book value per common share | $ | 18.66 | $ | 12.20 | |||
Net debt/net capital ratio(3) | 39 | % | 38 | % |
(1) | 2014 and 2013 amounts include $11.6 million and $9.5 million of restricted cash and cash held in escrow, respectively. |
(2) | 2014 and 2013 amounts include gross deferred tax assets of $115.2 million and $134.0 million, respectively, net of valuation allowances of $4.0 million and $134.0 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, | |||||||
2014 | 2013 | ||||||
Adjusted EBITDA(1) | $ | 22,176 | $ | 16,026 | |||
Cash flow (used in) provided by operating activities | $ | (2,103 | ) | $ | 8,558 | ||
Cash used in investing activities | $ | (8,879 | ) | $ | (12,702 | ) | |
Cash (used in) provided by financing activities | $ | (28,383 | ) | $ | 121,703 | ||
Land/lot purchases | $ | 53,003 | $ | 44,381 | |||
Land development spending | $ | 17,530 | $ | 15,728 | |||
Land gross margin | $ | 1,321 | $ | 991 | |||
Financial services pre-tax income | $ | 4,711 | $ | 5,137 | |||
Deferred tax expense | $ | 5,024 | $ | 1,788 | |||
Deferred tax asset valuation benefit | $ | (5,327 | ) | $ | (1,788 | ) |
(1) | See "Non-GAAP Financial Results / Reconciliation" table below. |
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Net income | $ | 12,632 | $ | 4,587 | |||
Add: | |||||||
(Benefit) provision for income taxes | (147 | ) | 299 | ||||
Interest expense net of interest income | 3,777 | 4,055 | |||||
Interest amortized to cost of sales | 3,108 | 3,528 | |||||
Depreciation and amortization | 1,912 | 2,138 | |||||
Non-cash charges | 894 | 1,419 | |||||
Adjusted EBITDA | $ | 22,176 | $ | 16,026 |
NEW CONTRACTS | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2014 | 2013 | Change | |||||
Midwest | 374 | 349 | 7 | % | ||||
Southern | 336 | 378 | (11 | )% | ||||
Mid-Atlantic | 272 | 320 | (15 | )% | ||||
Total | 982 | 1,047 | (6 | )% |
HOMES DELIVERED | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2014 | 2013 | Change | |||||
Midwest | 259 | 232 | 12 | % | ||||
Southern | 275 | 191 | 44 | % | ||||
Mid-Atlantic | 203 | 204 | — | % | ||||
Total | 737 | 627 | 18 | % |
BACKLOG | |||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 660 | $ | 209 | $ | 317,000 | 535 | $ | 144 | $ | 270,000 | |||||||||||
Southern | 510 | $ | 169 | $ | 331,000 | 528 | $ | 148 | $ | 280,000 | |||||||||||
Mid-Atlantic | 355 | $ | 118 | $ | 334,000 | 322 | $ | 109 | $ | 339,000 | |||||||||||
Total | 1,525 | $ | 496 | $ | 326,000 | 1,385 | $ | 401 | $ | 290,000 |
LAND POSITION SUMMARY | ||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,532 | 2,609 | 6,141 | 3,078 | 2,989 | 6,067 | ||||||||
Southern | 4,823 | 4,306 | 9,129 | 2,693 | 3,800 | 6,493 | ||||||||
Mid-Atlantic | 2,287 | 3,408 | 5,695 | 1,685 | 2,124 | 3,809 | ||||||||
Total | 10,642 | 10,323 | 20,965 | 7,456 | 8,913 | 16,369 |
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