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 July 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 July 25, 2013. |
• | Net income of $7.3 million |
• | New contracts increased 31% |
• | Homes delivered increased 26% |
• | Backlog units and value increased 43% and 53%, respectively |
• | Cash balance of $178.7 million |
• | Net debt to net capital ratio of 42% |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
New contracts | 1,078 | 826 | 2,125 | 1,590 | |||||||||||
Average community count | 138 | 123 | 135 | 123 | |||||||||||
Cancellation rate | 14 | % | 16 | % | 15 | % | 15 | % | |||||||
Backlog units | 1,675 | 1,168 | |||||||||||||
Backlog value | $ | 490,769 | $ | 320,388 | |||||||||||
Homes delivered | 788 | 625 | 1,415 | 1,132 | |||||||||||
Average home closing price | $ | 281 | $ | 259 | $ | 282 | $ | 254 | |||||||
Homebuilding revenue: | |||||||||||||||
Housing revenue | $ | 221,700 | $ | 161,915 | $ | 399,490 | $ | 287,993 | |||||||
Land revenue | 5,601 | 4,155 | 10,128 | 4,886 | |||||||||||
Total homebuilding revenue | $ | 227,301 | $ | 166,070 | $ | 409,618 | $ | 292,879 | |||||||
Financial services revenue | 7,252 | 4,924 | 15,662 | 9,240 | |||||||||||
Total revenue | $ | 234,553 | $ | 170,994 | $ | 425,280 | $ | 302,119 | |||||||
Cost of sales - operations | 187,136 | 137,111 | 338,649 | 244,441 | |||||||||||
Cost of sales - impairment | 1,201 | 472 | 2,101 | 567 | |||||||||||
Gross margin | 46,216 | 33,411 | 84,530 | 57,111 | |||||||||||
General and administrative expense | 18,149 | 13,826 | 34,128 | 26,283 | |||||||||||
Selling expense | 16,275 | 12,825 | 29,384 | 23,836 | |||||||||||
Operating income | 11,792 | 6,760 | 21,018 | 6,992 | |||||||||||
Interest expense | 4,397 | 3,461 | 8,737 | 8,067 | |||||||||||
Income (loss) before income taxes | 7,395 | 3,299 | 12,281 | (1,075 | ) | ||||||||||
Expense (benefit) from income taxes | 131 | 95 | 430 | (1,093 | ) | ||||||||||
Net income | $ | 7,264 | $ | 3,204 | $ | 11,851 | $ | 18 | |||||||
Excess of fair value over book value of preferred shares redeemed | $ | — | $ | — | $ | 2,190 | $ | — | |||||||
Preferred dividends | 1,219 | — | $ | 1,219 | — | ||||||||||
Net income to common shareholders | $ | 6,045 | $ | 3,204 | $ | 8,442 | $ | 18 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.25 | $ | 0.17 | $ | 0.36 | $ | — | |||||||
Diluted | $ | 0.25 | $ | 0.17 | $ | 0.36 | $ | — | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 24,271 | 18,833 | 23,278 | 18,803 | |||||||||||
Diluted | 24,646 | 19,031 | 23,671 | 18,998 |
As of | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 178,730 | $ | 56,890 | |||
Mortgage loans held for sale | 51,491 | 49,779 | |||||
Inventory: | |||||||
Lots, land and land development | 261,985 | 242,377 | |||||
Land held for sale | 6,389 | 9,889 | |||||
Homes under construction | 294,234 | 218,140 | |||||
Other inventory | 52,391 | 51,550 | |||||
Total inventory | $ | 614,999 | $ | 521,956 | |||
Property and equipment - net | 10,267 | 12,902 | |||||
Investments in unconsolidated joint ventures | 28,648 | 10,904 | |||||
Other assets(2) | 34,131 | 18,329 | |||||
Total Assets | $ | 918,266 | $ | 670,760 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 227,870 | $ | 227,470 | |||
Convertible senior subordinated notes due 2017 | 57,500 | — | |||||
Convertible senior subordinated notes due 2018 | 86,250 | — | |||||
Notes payable - other | 9,429 | 10,766 | |||||
Total Debt - Homebuilding Operations | $ | 381,049 | $ | 238,236 | |||
Note payable bank - financial services operations | 50,442 | 46,343 | |||||
Total Debt | $ | 431,491 | $ | 284,579 | |||
Accounts payable | 61,888 | 51,307 | |||||
Other liabilities | 70,353 | 59,728 | |||||
Total Liabilities | $ | 563,732 | $ | 395,614 | |||
Shareholders' Equity | 354,534 | 275,146 | |||||
Total Liabilities and Shareholders' Equity | $ | 918,266 | $ | 670,760 | |||
Book value per common share | $ | 12.50 | $ | 9.29 | |||
Net debt/net capital ratio(3) | 42 | % | 45 | % |
(1) | 2013 and 2012 amounts include $12.5 million and $12.6 million of restricted cash and cash held in escrow, respectively. |
(2) | 2013 and 2012 amounts include gross deferred tax assets of $131.3 million and $140.7 million, respectively, net of valuation allowances of $131.3 million and $140.7 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 | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Adjusted EBITDA(1) | $ | 19,379 | $ | 12,569 | $ | 35,405 | $ | 17,498 | |||||||
Cash flow used in operating activities | $ | (33,736 | ) | $ | (15,854 | ) | $ | (25,178 | ) | $ | (23,529 | ) | |||
Cash (used in) provided by investing activities | $ | (10,505 | ) | $ | (4,098 | ) | $ | (23,207 | ) | $ | 23,234 | ||||
Cash provided by (used in) financing activities | $ | (52,564 | ) | $ | (2,729 | ) | $ | 69,139 | $ | (15,201 | ) | ||||
Land/lot purchases | $ | 55,810 | $ | 26,726 | $ | 100,219 | $ | 57,178 | |||||||
Land development spending | $ | 20,620 | $ | 10,244 | $ | 36,348 | $ | 19,556 | |||||||
Land/lot sale proceeds | $ | 5,601 | $ | 4,155 | $ | 10,128 | $ | 4,886 | |||||||
Financial services pre-tax income | $ | 3,835 | $ | 1,899 | $ | 8,971 | $ | 3,967 | |||||||
Deferred tax valuation benefit | $ | (2,674 | ) | $ | (1,283 | ) | $ | (4,462 | ) | $ | (143 | ) |
(1) | See "Non-GAAP Financial Result / Reconciliation" table below. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Impairment by Region: | 2013 | 2012 | 2013 | 2012 | |||||||||||
Midwest | $ | 1,201 | $ | 472 | $ | 2,101 | $ | 567 | |||||||
Southern | — | — | — | — | |||||||||||
Mid-Atlantic | — | — | — | — | |||||||||||
Total | $ | 1,201 | $ | 472 | $ | 2,101 | $ | 567 | |||||||
Abandonments by Region: | |||||||||||||||
Midwest | $ | — | $ | 34 | $ | — | $ | 36 | |||||||
Southern | — | 103 | — | 110 | |||||||||||
Mid-Atlantic | — | 88 | — | 110 | |||||||||||
Total | $ | — | $ | 225 | $ | — | $ | 256 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 7,264 | $ | 3,204 | $ | 11,851 | $ | 18 | |||||||
Add: | |||||||||||||||
Income tax expense (benefit) | 131 | 95 | 430 | (1,093 | ) | ||||||||||
Interest expense net of interest income | 4,112 | 3,106 | 8,167 | 7,343 | |||||||||||
Interest amortized to cost of sales | 3,693 | 2,892 | 7,221 | 5,456 | |||||||||||
Depreciation and amortization | 2,181 | 2,045 | 4,319 | 3,987 | |||||||||||
Non-cash charges | 1,998 | 1,227 | 3,417 | 1,787 | |||||||||||
Adjusted EBITDA | $ | 19,379 | $ | 12,569 | $ | 35,405 | $ | 17,498 |
NEW CONTRACTS | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||
Midwest | 395 | 299 | 32 | % | 744 | 639 | 16 | % | |||||||||
Southern | 376 | 269 | 40 | % | 754 | 483 | 56 | % | |||||||||
Mid-Atlantic | 307 | 258 | 19 | % | 627 | 468 | 34 | % | |||||||||
Total | 1,078 | 826 | 31 | % | 2,125 | 1,590 | 34 | % |
HOMES DELIVERED | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||
Midwest | 298 | 255 | 17 | % | 530 | 488 | 9 | % | |||||||||
Southern | 249 | 187 | 33 | % | 440 | 320 | 38 | % | |||||||||
Mid-Atlantic | 241 | 183 | 32 | % | 445 | 324 | 37 | % | |||||||||
Total | 788 | 625 | 26 | % | 1,415 | 1,132 | 25 | % |
BACKLOG | |||||||||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 632 | $ | 178 | $ | 282,000 | 538 | $ | 142 | $ | 263,000 | |||||||||||
Southern | 655 | $ | 180 | $ | 275,000 | 361 | $ | 87 | $ | 242,000 | |||||||||||
Mid-Atlantic | 388 | $ | 132 | $ | 340,000 | 269 | $ | 91 | $ | 340,000 | |||||||||||
Total | 1,675 | $ | 491 | $ | 293,000 | 1,168 | $ | 320 | $ | 274,000 |
LAND POSITION SUMMARY | ||||||||||||||
June 30, 2013 | June 30, 2012 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,403 | 2,550 | 5,953 | 3,258 | 1,367 | 4,625 | ||||||||
Southern | 3,648 | 3,372 | 7,020 | 1,374 | 1,524 | 2,898 | ||||||||
Mid-Atlantic | 1,625 | 2,565 | 4,190 | 1,860 | 1,211 | 3,071 | ||||||||
Total | 8,676 | 8,487 | 17,163 | 6,492 | 4,102 | 10,594 |
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