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 February 4, 2016. |
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 February 4, 2016. |
• | Pre-tax income increased 55% to $30.7 million, excluding a $7.8 million charge related to |
• | Net income increased to $13.3 million ($0.43 per diluted share; $0.59 per diluted share excluding |
• | Revenue increased 27% to $468.9 million; homes delivered increased 13% |
• | Average home closing price increased 12% to $360,000 |
• | New contracts increased 16%; year-end community count increased 17% |
• | Backlog sales value increased 34% to $569 million; backlog units up 25% |
• | Pre-tax income increased 36% to $94.8 million, excluding a $7.8 million charge related to |
• | Net income increased 25% to $51.8 million, from 2014’s $41.4 million excluding a $9.3 million |
• | Diluted earnings per share of $1.68 ($1.84 excluding the charge on debt extinguishment) |
• | Revenue increased 17%; homes delivered increased 4% |
• | New contracts increased 12% |
• | Net debt to net capital ratio of 50% |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
New contracts | 897 | 773 | 4,093 | 3,663 | |||||||||||
Average community count | 171 | 149 | 159 | 151 | |||||||||||
Cancellation rate | 18 | % | 19 | % | 15 | % | 16 | % | |||||||
Backlog units | 1,531 | 1,222 | |||||||||||||
Backlog sales value | $ | 569,424 | $ | 425,187 | |||||||||||
Homes delivered | 1,253 | 1,105 | 3,883 | 3,721 | |||||||||||
Average home closing price | $ | 360 | $ | 322 | $ | 346 | $ | 313 | |||||||
Homebuilding revenue: | |||||||||||||||
Housing revenue | $ | 450,461 | $ | 355,363 | $ | 1,342,135 | $ | 1,164,804 | |||||||
Land revenue | 8,795 | 4,394 | 40,285 | 20,254 | |||||||||||
Total homebuilding revenue | $ | 459,256 | $ | 359,757 | $ | 1,382,420 | $ | 1,185,058 | |||||||
Financial services revenue | 9,667 | 8,207 | 35,975 | 30,122 | |||||||||||
Total revenue | $ | 468,923 | $ | 367,964 | $ | 1,418,395 | $ | 1,215,180 | |||||||
Cost of sales - operations | 370,469 | 292,174 | 1,114,663 | 958,991 | |||||||||||
Cost of sales - impairment | 3,638 | 2,031 | 3,638 | 3,457 | |||||||||||
Gross margin | 94,816 | 73,759 | 300,094 | 252,732 | |||||||||||
General and administrative expense | 28,518 | 27,510 | 93,208 | 88,830 | |||||||||||
Selling expense | 30,201 | 22,973 | 95,092 | 81,148 | |||||||||||
Operating income | 36,097 | 23,276 | 111,794 | 82,754 | |||||||||||
Equity in income from unconsolidated joint ventures | (250 | ) | (285 | ) | (498 | ) | (347 | ) | |||||||
Interest expense | 5,651 | 3,816 | 17,521 | 13,365 | |||||||||||
Loss on early extinguishment of debt | 7,842 | — | 7,842 | — | |||||||||||
Income before income taxes | 22,854 | 19,745 | 86,929 | 69,736 | |||||||||||
Provision for income taxes | 9,579 | 8,759 | 35,166 | 18,947 | |||||||||||
Net income | $ | 13,275 | $ | 10,986 | $ | 51,763 | $ | 50,789 | |||||||
Preferred dividends | 1,219 | 1,219 | 4,875 | 4,875 | |||||||||||
Net income to common shareholders | $ | 12,056 | $ | 9,767 | $ | 46,888 | $ | 45,914 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.40 | $ | 1.91 | $ | 1.88 | |||||||
Diluted | $ | 0.43 | $ | 0.36 | $ | 1.68 | $ | 1.65 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 24,649 | 24,489 | 24,575 | 24,463 | |||||||||||
Diluted | 30,107 | 29,944 | 30,047 | 29,912 |
As of | |||||||
December 31, | |||||||
2015 | 2014 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 13,101 | $ | 22,486 | |||
Mortgage loans held for sale | 127,001 | 92,794 | |||||
Inventory: | |||||||
Lots, land and land development | 584,542 | 463,198 | |||||
Land held for sale | 12,630 | 10,647 | |||||
Homes under construction | 420,206 | 371,119 | |||||
Other inventory | 94,664 | 73,625 | |||||
Total Inventory | $ | 1,112,042 | $ | 918,589 | |||
Property and equipment - net | 12,897 | 11,490 | |||||
Investments in unconsolidated joint ventures | 36,967 | 27,769 | |||||
Deferred income taxes | 67,404 | 94,412 | |||||
Other assets | 46,142 | 37,699 | |||||
Total Assets | $ | 1,415,554 | $ | 1,205,239 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes - net | $ | 294,727 | $ | 226,099 | |||
Convertible senior subordinated notes due 2017 - net | 56,518 | 55,943 | |||||
Convertible senior subordinated notes due 2018 - net | 84,714 | 84,006 | |||||
Notes payable - homebuilding | 43,800 | 30,000 | |||||
Notes payable - other | 8,441 | 9,518 | |||||
Total Debt - Homebuilding Operations | $ | 488,200 | $ | 405,566 | |||
Notes payable bank - financial services operations | 123,648 | 85,379 | |||||
Total Debt | $ | 611,848 | $ | 490,945 | |||
Accounts payable | 86,878 | 75,338 | |||||
Other liabilities | 120,262 | 94,661 | |||||
Total Liabilities | $ | 818,988 | $ | 660,944 | |||
Shareholders' Equity | 596,566 | 544,295 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,415,554 | $ | 1,205,239 | |||
Book value per common share | $ | 22.17 | $ | 20.16 | |||
Net debt/net capital ratio(2) | 50 | % | 47 | % |
(1) | 2015 and 2014 amounts include $2.9 million and $7.0 million of restricted cash and cash held in escrow, respectively. |
(2) | 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, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Adjusted EBITDA(1) | $ | 43,595 | $ | 33,480 | $ | 140,818 | $ | 113,574 | |||||||
Cash provided by (used in) operating activities | $ | 13,037 | $ | (25,964 | ) | $ | (82,159 | ) | $ | (132,675 | ) | ||||
Cash used in investing activities | $ | (31,583 | ) | $ | (1,082 | ) | $ | (37,631 | ) | $ | (12,581 | ) | |||
Cash provided by financing activities | $ | 3,696 | $ | 25,413 | $ | 114,460 | $ | 32,066 | |||||||
Land/lot purchases | $ | 55,251 | $ | 54,068 | $ | 232,707 | $ | 237,739 | |||||||
Land development spending | $ | 59,655 | $ | 51,056 | $ | 205,069 | $ | 144,269 | |||||||
Land gross margin | $ | 297 | $ | 834 | $ | 6,661 | $ | 3,619 | |||||||
Financial services pre-tax income | $ | 5,129 | $ | 2,992 | $ | 19,416 | $ | 14,177 |
(1) | See “Non-GAAP Financial Results / Reconciliations” table below. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 13,275 | $ | 10,986 | $ | 51,763 | $ | 50,789 | |||||||
Add: | |||||||||||||||
Provision for income taxes | 9,579 | 8,759 | 35,166 | 18,947 | |||||||||||
Interest expense, net of interest income | 5,036 | 3,321 | 15,532 | 11,652 | |||||||||||
Interest amortized to cost of sales | 5,329 | 5,211 | 16,966 | 16,443 | |||||||||||
Depreciation and amortization | 2,705 | 2,234 | 9,918 | 8,296 | |||||||||||
Non-cash charges | 7,671 | 2,969 | 11,473 | 7,447 | |||||||||||
Adjusted EBITDA | $ | 43,595 | $ | 33,480 | $ | 140,818 | $ | 113,574 |
NEW CONTRACTS | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||
Midwest | 327 | 243 | 35 | % | 1,485 | 1,336 | 11 | % | |||||||||
Southern | 337 | 307 | 10 | % | 1,557 | 1,333 | 17 | % | |||||||||
Mid-Atlantic | 233 | 223 | 4 | % | 1,051 | 994 | 6 | % | |||||||||
Total | 897 | 773 | 16 | % | 4,093 | 3,663 | 12 | % |
HOMES DELIVERED | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||
Midwest | 455 | 445 | 2 | % | 1,417 | 1,376 | 3 | % | |||||||||
Southern | 483 | 383 | 26 | % | 1,447 | 1,332 | 9 | % | |||||||||
Mid-Atlantic | 315 | 277 | 14 | % | 1,019 | 1,013 | 1 | % | |||||||||
Total | 1,253 | 1,105 | 13 | % | 3,883 | 3,721 | 4 | % |
BACKLOG | |||||||||||||||||||||
December 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 672 | $ | 262 | $ | 390,000 | 505 | $ | 177 | $ | 351,000 | |||||||||||
Southern | 560 | $ | 200 | $ | 357,000 | 450 | $ | 153 | $ | 341,000 | |||||||||||
Mid-Atlantic | 299 | $ | 108 | $ | 360,000 | 267 | $ | 95 | $ | 354,000 | |||||||||||
Total | 1,531 | $ | 569 | $ | 372,000 | 1,222 | $ | 425 | $ | 348,000 |
LAND POSITION SUMMARY | ||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,921 | 4,220 | 8,141 | 3,551 | 2,156 | 5,707 | ||||||||
Southern | 4,664 | 4,972 | 9,636 | 5,016 | 4,900 | 9,916 | ||||||||
Mid-Atlantic | 2,814 | 1,831 | 4,645 | 2,794 | 2,308 | 5,102 | ||||||||
Total | 11,399 | 11,023 | 22,422 | 11,361 | 9,364 | 20,725 |
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