Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes are not guaranteed by all of the Company's subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the Guarantors, as defined and listed in the indenture for the 2018 Senior Notes (the “Guarantor Subsidiaries”), collectively, and for all other subsidiaries and joint ventures of the Company (“the Non-Guarantor Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect wholly-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the 2018 Senior Notes, on a joint and several basis.

There are no significant restrictions on the parent company's ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of March 31, 2012, each of the Company's subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, the origination of mortgages for resale, title insurance or similar financial businesses relating to the homebuilding and home sales business and certain subsidiaries that are not wholly-owned by the Company or another subsidiary.

In the condensed financial tables presented below, the parent company presents all of its wholly-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Non-Guarantor Subsidiaries.



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended March 31, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated

Revenue	$	—		$	126,809		$	4,316	$	—		$	131,125
Costs and expenses:
Land and housing	—			107,330			—		—			107,330
Impairment of inventory and investment in Unconsolidated LLCs	—			95			—		—			95
General and administrative	—			10,479			1,978		—			12,457
Selling	—			11,010			1		—			11,011
Interest	—			4,238			368		—			4,606
Total costs and expenses	—			133,152			2,347		—			135,499

(Loss) income before income taxes	—			(6,343		)	1,969		—			(4,374		)

(Benefit) provision for income taxes	—			(1,880		)	692		—			(1,188		)

Equity in subsidiaries	(3,186		)	—			—		3,186			—

Net (loss) income	$	3,186		$	(4,463	)	$	1,277	$	(3,186	)	$	(3,186	)



	Three Months Ended March 31, 2011
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations		Consolidated

Revenue	$	—		$	107,370		$	3,200	$	—	$	110,570
Costs and expenses:
Land and housing	—			92,574			—		—		92,574
Impairment of inventory and investment in Unconsolidated LLCs	—			10,871			—		—		10,871
General and administrative	—			9,698			1,704		—		11,402
Selling	—			8,654			—		—		8,654
Interest	—			3,765			270		—		4,035
Total costs and expenses	—			125,562			1,974		—		127,536

(Loss) income before income taxes	—			(18,192		)	1,226		—		(16,966		)

(Benefit) provision for income taxes	—			(355		)	428		—		73
	-2070			0			0		2070
Equity in subsidiaries	(17,039		)	—			—		17,039		—

Net (loss) income	$	(17,039	)	$	(17,837	)	$	798	$	17,039	$	(17,039	)



CONDENSED CONSOLIDATING BALANCE SHEET

	March 31, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	51,878		$	15,100		$	—		$	66,978
Restricted cash	—		13,733			—			—			13,733
Mortgage loans held for sale	—		—			45,345			—			45,345
Inventory	—		490,058			—			—			490,058
Property and equipment - net	—		13,432			99			—			13,531
Investment in Unconsolidated LLCs	—		—			10,716			—			10,716
Investment in subsidiaries	377,523		—			—			(377,523		)	—
Intercompany	125,800		(115,691		)	(10,109		)	—			—
Other assets	6,810		9,554			1,008			—			17,372
TOTAL ASSETS	$	510,133	$	462,964		$	62,159		$	(377,523	)	$	657,733

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	40,744		$	324		$	—		$	41,068
Customer deposits	—		8,334			—			—			8,334
Other liabilities	—		38,245			4,295			—			42,540
Community development district obligations	—		5,610			—			—			5,610
Obligation for consolidated inventory not owned	—		2,587			—			—			2,587
Note payable bank - financial services operations	—		—			41,580			—			41,580
Note payable - other	—		5,881			—			—			5,881
Senior notes	239,118		—			—			—			239,118
TOTAL LIABILITIES	239,118		101,401			46,199			—			386,718

Shareholders' equity	271,015		361,563			15,960			(377,523		)	271,015

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	510,133	$	462,964		$	62,159		$	(377,523	)	$	657,733



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2011
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	43,539		$	16,254		$	—		$	59,793
Restricted cash	—		41,334			—			—			41,334
Mortgage loans held for sale	—		—			57,275			—			57,275
Inventory	—		466,772			—			—			466,772
Property and equipment - net	—		14,241			117			—			14,358
Investment in Unconsolidated LLCs	—		—			10,357			—			10,357
Investment in subsidiaries	381,709		—			—			(381,709		)	—
Intercompany	125,272		(115,058		)	(10,214		)	—			—
Other assets	5,385		8,455			756			—			14,596
TOTAL ASSETS	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	40,759		$	497		$	—		$	41,256
Customer deposits	—		4,181			—			—			4,181
Other liabilities	—		33,589			5,759			—			39,348
Community development district obligations	—		5,983			—			—			5,983
Obligation for consolidated inventory not owned	—		2,944			—			—			2,944
Note payable bank - financial services operations	—		—			52,606			—			52,606
Note payable - other	—		5,801			—			—			5,801
Senior notes	239,016		—			—			—			239,016
TOTAL LIABILITIES	239,016		93,257			58,862			—			391,135

Shareholders' equity	273,350		366,026			15,683			(381,709		)	273,350

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Three Months Ended March 31, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	—		$	(19,041	)	$	11,366		$	—	$	(7,675	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			27,740			—			—		27,740
Purchase of property and equipment	—			(47		)	—			—		(47		)
Investments in and advances to LLCs	—			—			(361		)	—		(361		)
Net cash provided by (used in) investing activities	—			27,693			(361		)	—		27,332

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(11,026		)	—		(11,026		)
Principal repayments of note payable - other and community development district bond obligations	—			80			—			—		80
Intercompany financing	(367		)	1,500			(1,133		)	—		—
Debt issue costs	—			(1,893		)	—			—		(1,893		)
Proceeds from exercise of stock options	367			—			—			—		367
Net cash used in financing activities	—			(313		)	(12,159		)	—		(12,472		)

Net increase (decrease) in cash and cash equivalents	—			8,339			(1,154		)	—		7,185
Cash and cash equivalents balance at beginning of period	—			43,539			16,254			—		59,793
Cash and cash equivalents balance at end of period	$	—		$	51,878		$	15,100		$	—	$	66,978



	Three Months Ended March 31, 2011
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	—		$	(9,289	)	$	11,916		$	—	$	2,627

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			1,569			—			—		1,569
Purchase of property and equipment	—			(332		)	—			—		(332		)
Return of investment from Unconsolidated LLCs	—			—			(243		)	—		(243		)
Net cash provided by (used in) investing activities	—			1,237			(243		)	—		994

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(6,173		)	—		(6,173		)
Principal repayments of note payable - other and community development district bond obligations	—			(80		)	—			—		(80		)
Intercompany financing	(1,785		)	(354		)	2,139			—		—
Proceeds from exercise of stock options	1,416			—			—			—		1,416
Excess tax deficiency from stock-based payment arrangements	369			—			—			—		369
Net cash used in financing activities	—			(434		)	(4,034		)	—		(4,468		)

Net (decrease) increase in cash and cash equivalents	—			(8,486		)	7,639			—		(847		)
Cash and cash equivalents balance at beginning of period	—			71,874			9,334			—		81,208
Cash and cash equivalents balance at end of period	$	—		$	63,388		$	16,973		$	—	$	80,361