Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated 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 subsidiary guarantors of the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are the same.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the guarantors for the 2018 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated 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 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2018 Senior Notes, on a joint and several senior unsecured basis, (b) the 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) the 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured 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, 2013, 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, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Non-Guarantor Subsidiaries, subject to limitations on the aggregate amount invested in such Non-Guarantor Subsidiaries.

In the condensed financial tables presented below, the parent company presents all of its 100%-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, 2013
(In thousands)	M/I Homes, Inc.	Guarantor Subsidiaries		Non-Guarantor Subsidiaries	Eliminations		Consolidated

Revenue	—	182,317		8,410	—		190,727
Costs and expenses:
Land and housing	—	151,513		—	—		151,513
Impairment of inventory and investment in Unconsolidated LLCs	—	900		—	—		900
General and administrative	—	12,842		3,137	—		15,979
Selling	—	13,092		17	—		13,109
Interest	—	4,022		318	—		4,340
Total costs and expenses	—	182,369		3,472	—		185,841

Income before income taxes	—	(52	)	4,938	—		4,886

(Benefit) provision for income taxes	—	(1,415	)	1,714	—		299

Equity in subsidiaries	4,587	—		—	(4,587	)	—

Net income	4,587	1,363		3,224	(4,587	)	4,587

Excess of fair value over book value of preferred shares subject to redemption	2,190	—		—	—		2,190

Net income to common shareholders	2,397	1,363		3,224	(4,587	)	2,397



	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	)



CONDENSED CONSOLIDATING BALANCE SHEET

	March 31, 2013
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	245,149		$	17,908		$	—		$	263,057
Restricted cash	—		9,494			—			—			9,494
Mortgage loans held for sale	—		—			57,721			—			57,721
Inventory	—		561,584			16,056			—			577,640
Property and equipment - net	—		9,846			148			—			9,994
Investment in Unconsolidated LLCs	—		—			22,275			—			22,275
Investment in subsidiaries	393,542		—			—			(393,542		)	—
Intercompany	361,410		(337,294		)	(24,116		)	—			—
Other assets	11,921		11,918			4,632			—			28,471
TOTAL ASSETS	$	766,873	$	500,697		$	94,624		$	(393,542	)	$	968,652

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	56,710		$	361		$	—		$	57,071
Customer deposits	—		12,246			—			—			12,246
Other liabilities	—		41,922			5,838			—			47,760
Preferred shares subject to redemption	50,352		—			—			—			50,352
Community development district obligations	—		4,266			—			—			4,266
Obligation for consolidated inventory not owned	—		1,438			15,556			—			16,994
Notes payable bank - financial services operations	—		—			53,126			—			53,126
Notes payable - other	—		10,316			—			—			10,316
Convertible senior subordinated notes due 2017	57,500		—			—			—			57,500
Convertible senior subordinated notes due 2018	86,250		—			—			—			86,250
Senior notes	227,770		—			—			—			227,770
TOTAL LIABILITIES	421,872		126,898			74,881			—			623,651

Shareholders' equity	345,001		373,800			19,742			(393,542		)	345,001

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	766,873	$	500,698		$	94,623		$	(393,542	)	$	968,652



CONDENSED CONSOLIDATING BALANCE SHEET

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

ASSETS:
Cash and cash equivalents	$	—	$	126,334		$	19,164		$	—		$	145,498
Restricted cash	—		8,680			—			—			8,680
Mortgage loans held for sale	—		—			71,121			—			71,121
Inventory	—		540,761			16,056			—			556,817
Property and equipment - net	—		10,314			125			—			10,439
Investment in Unconsolidated LLCs	—		—			11,732			—			11,732
Investment in subsidiaries	391,555		—			—			(391,555		)	—
Intercompany	219,962		(205,389		)	(14,573		)	—			—
Other assets	9,081		12,375			5,557			—			27,013
TOTAL ASSETS	$	620,598	$	493,075		$	109,182		$	(391,555	)	$	831,300

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	46,882		$	808		$	—		$	47,690
Customer deposits	—		10,239			—			—			10,239
Other liabilities	—		44,230			5,742			—			49,972
Community development district obligations	—		4,634			—			—			4,634
Obligation for consolidated inventory not owned	—		3,549			15,556			—			19,105
Notes payable bank - financial services operations	—		—			67,957			—			67,957
Notes payable - other	—		11,105			—			—			11,105
Convertible senior subordinated notes due 2017	57,500		—			—			—			57,500
Senior notes	227,670		—			—			—			227,670
TOTAL LIABILITIES	285,170		120,639			90,063			—			495,872

Shareholders' equity	335,428		372,436			19,119			(391,555		)	335,428

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	620,598	$	493,075		$	109,182		$	(391,555	)	$	831,300



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Three Months Ended March 31, 2013
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	—		$	(9,997	)	$	18,555		$	—	$	8,558

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted Cash	—			(621		)	—			—		(621		)
Purchase of property and equipment	—			(192		)	(37		)	—		(229		)
Investments in and advances to Unconsolidated LLC's	—			—			(11,852		)	—		(11,852		)
Net cash used in investing activities	—			(813		)	(11,889		)	—		(12,702		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(14,831		)	—		(14,831		)
Principal repayments of note payable - other and community development district bond obligations	—			(789		)	—			—		(789		)
Proceeds from issuance of convertible senior subordinated notes	86,250			—			—			—		86,250
Proceeds from issuance of common shares	54,617			—			—			—		54,617
Intercompany financing	(140,867		)	133,958			6,909			—		—
Debt issue costs	—			(3,544		)	—			—		(3,544		)
Net cash provided by (used in) financing activities	—			129,625			(7,922		)	—		121,703

Net increase (decrease) in cash and cash equivalents	—			118,815			(1,256		)	—		117,559
Cash and cash equivalents balance at beginning of period	—			126,334			19,164			—		145,498
Cash and cash equivalents balance at end of period	$	—		$	245,149		$	17,908		$	—	$	263,057



	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 Unconsolidated LLC's	—			—			(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