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 January 29, 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 January 29, 2014. |
• | Pre-tax income of $15.3 million, up 184% from 2012’s fourth quarter |
• | New contracts increased 18% |
• | Homes delivered increased 26% |
• | Backlog sales value increased 44% |
• | Cash balance of $142.6 million at year-end |
• | Net debt to net capital ratio of 39% |
• | Pre-tax income of $41.3 million, an increase of 224% from 2012 |
• | Net income of $151.4 million, including a $112.8 million deferred tax |
• | Diluted earnings per share of $5.24 ($1.32 per share excluding the |
• | New contracts increased 25% |
• | Homes delivered increased 26% |
• | Control 19,831 lots, an increase of 40% from December 31, 2012 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
New contracts | 793 | 673 | 3,787 | 3,020 | |||||||||||
Average community count | 152 | 130 | 142 | 125 | |||||||||||
Cancellation rate | 19 | % | 21 | % | 16 | % | 17 | % | |||||||
Backlog units | 1,280 | 965 | |||||||||||||
Backlog value | $ | 408,017 | $ | 282,540 | |||||||||||
Homes delivered | 1,120 | 887 | 3,472 | 2,765 | |||||||||||
Average home closing price | $ | 292 | $ | 273 | $ | 286 | $ | 264 | |||||||
Homebuilding revenue: | |||||||||||||||
Housing revenue | $ | 326,702 | $ | 242,373 | $ | 992,078 | $ | 728,772 | |||||||
Land revenue | 3,409 | 905 | 16,165 | 9,877 | |||||||||||
Total homebuilding revenue | $ | 330,111 | $ | 243,278 | $ | 1,008,243 | $ | 738,649 | |||||||
Financial services revenue | 6,196 | 7,633 | 28,539 | 23,256 | |||||||||||
Total revenue | $ | 336,307 | $ | 250,911 | $ | 1,036,782 | $ | 761,905 | |||||||
Cost of sales - operations | 267,709 | 201,647 | 824,508 | 613,540 | |||||||||||
Cost of sales - impairment | 1,568 | 1,626 | 5,805 | 3,502 | |||||||||||
Cost of sales - other | — | — | — | (3,000 | ) | ||||||||||
Gross margin | 67,030 | 47,638 | 206,469 | 147,863 | |||||||||||
General and administrative expense | 27,105 | 20,328 | 79,494 | 62,627 | |||||||||||
Selling expense | 20,899 | 17,923 | 68,282 | 56,406 | |||||||||||
Operating income | 19,026 | 9,387 | 58,693 | 28,830 | |||||||||||
Income from unconsolidated joint ventures | (28 | ) | — | (306 | ) | — | |||||||||
Interest expense | 3,752 | 4,005 | 15,938 | 16,071 | |||||||||||
Loss on early extinguishment of debt | — | — | 1,726 | — | |||||||||||
Income before income taxes | 15,302 | 5,382 | 41,335 | 12,759 | |||||||||||
(Benefit) provision for income taxes | 1,041 | 367 | (110,088 | ) | (588 | ) | |||||||||
Net income | $ | 14,261 | $ | 5,015 | $ | 151,423 | $ | 13,347 | |||||||
Excess of fair value over book value of | |||||||||||||||
preferred shares redeemed | — | — | 2,190 | — | |||||||||||
Preferred dividends | 1,218 | — | 3,656 | — | |||||||||||
Net income to commons shareholders | $ | 13,043 | $ | 5,015 | $ | 145,577 | $ | 13,347 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.54 | $ | 0.23 | $ | 6.11 | $ | 0.68 | |||||||
Diluted | $ | 0.48 | $ | 0.23 | $ | 5.24 | $ | 0.67 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 24,358 | 21,545 | 23,822 | 19,651 | |||||||||||
Diluted | 29,783 | 21,961 | 28,763 | 19,891 |
As of | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 142,627 | $ | 154,178 | |||
Mortgage loans held for sale | 81,810 | 71,121 | |||||
Inventory: | |||||||
Lots, land and land development | 323,673 | 257,397 | |||||
Land held for sale | 8,059 | 8,442 | |||||
Homes under construction | 305,499 | 221,432 | |||||
Other inventory | 53,703 | 69,546 | |||||
Total Inventory | $ | 690,934 | $ | 556,817 | |||
Property and equipment - net | 10,536 | 10,439 | |||||
Investments in unconsolidated joint ventures | 35,266 | 11,732 | |||||
Deferred income taxes, net of valuation allowance(2) | 110,911 | — | |||||
Other assets | 38,092 | 27,013 | |||||
Total Assets | $ | 1,110,176 | $ | 831,300 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 228,070 | $ | 227,670 | |||
Convertible senior subordinated notes due 2017 | 57,500 | 57,500 | |||||
Convertible senior subordinated notes due 2018 | 86,250 | — | |||||
Notes payable - other | 7,790 | 11,105 | |||||
Total Debt - Homebuilding Operations | $ | 379,610 | $ | 296,275 | |||
Note payable bank - financial services operations | 80,029 | 67,957 | |||||
Total Debt | $ | 459,639 | $ | 364,232 | |||
Accounts payable | 70,226 | 47,690 | |||||
Other liabilities | 87,508 | 83,950 | |||||
Total Liabilities | $ | 617,373 | $ | 495,872 | |||
Shareholders' Equity | 492,803 | 335,428 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,110,176 | $ | 831,300 | |||
Book value per common share | $ | 18.18 | $ | 10.86 | |||
Net debt/net capital ratio(3) | 39 | % | 39 | % |
(1) | 2013 and 2012 amounts include $13.9 million and $8.7 million of restricted cash and cash held in escrow, respectively. |
(2) | 2013 and 2012 amounts include gross deferred tax assets of $120.2 million and $135.7 million, respectively, net of valuation allowances of $9.3 million and $135.7 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 | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Adjusted EBITDA(1) | $ | 26,537 | $ | 18,215 | $ | 89,204 | $ | 55,966 | |||||||
Cash used in operating activities | $ | (33,538 | ) | $ | (30,674 | ) | $ | (73,974 | ) | $ | (46,995 | ) | |||
Cash provided by (used in) investing activities | $ | (2,652 | ) | $ | (555 | ) | $ | (35,554 | ) | $ | 25,322 | ||||
Cash provided by financing activities | $ | 22,440 | $ | 16,962 | $ | 92,755 | $ | 107,378 | |||||||
Land/lot purchases | $ | 60,138 | $ | 58,083 | $ | 216,841 | $ | 138,735 | |||||||
Land development spending | $ | 39,306 | $ | 19,229 | $ | 106,762 | $ | 56,389 | |||||||
Financial services pre-tax income | $ | 1,980 | $ | 3,503 | $ | 14,416 | $ | 11,015 | |||||||
Deferred tax expense | $ | 6,357 | $ | 1,355 | $ | 15,547 | $ | 5,076 | |||||||
Deferred tax asset valuation benefit | $ | (5,622 | ) | $ | (1,355 | ) | $ | (126,458 | ) | $ | (5,076 | ) |
(1) | See “Non-GAAP Financial Results / Reconciliations” table below. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Impairment by Region: | 2013 | 2012 | 2013 | 2012 | |||||||||||
Midwest | $ | 1,568 | $ | 1,626 | $ | 5,805 | $ | 3,502 | |||||||
Southern | — | — | — | — | |||||||||||
Mid-Atlantic | — | — | — | — | |||||||||||
Total | $ | 1,568 | $ | 1,626 | $ | 5,805 | $ | 3,502 | |||||||
Abandonments by Region: | |||||||||||||||
Midwest | $ | — | $ | — | $ | — | $ | 36 | |||||||
Southern | — | — | — | 110 | |||||||||||
Mid-Atlantic | — | — | — | 110 | |||||||||||
Total | $ | — | $ | — | $ | — | $ | 256 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 14,261 | $ | 5,015 | $ | 151,423 | $ | 13,347 | |||||||
Add: | |||||||||||||||
(Benefit) provision for income taxes | 1,041 | 367 | (110,088 | ) | (588 | ) | |||||||||
Interest expense, net of interest income | 3,299 | 3,655 | 14,508 | 14,607 | |||||||||||
Interest amortized to cost of sales | 3,880 | 4,236 | 15,175 | 13,366 | |||||||||||
Depreciation and amortization | 1,979 | 2,980 | 8,311 | 9,742 | |||||||||||
Non-cash charges | 2,077 | 1,962 | 9,875 | 5,492 | |||||||||||
Adjusted EBITDA | $ | 26,537 | $ | 18,215 | $ | 89,204 | $ | 55,966 |
NEW CONTRACTS | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||
Midwest | 302 | 231 | 31 | % | 1,364 | 1,144 | 19 | % | |||||||||
Southern | 247 | 259 | (5 | )% | 1,290 | 966 | 34 | % | |||||||||
Mid-Atlantic | 244 | 183 | 33 | % | 1,133 | 910 | 25 | % | |||||||||
Total | 793 | 673 | 18 | % | 3,787 | 3,020 | 25 | % |
HOMES DELIVERED | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
% | % | ||||||||||||||||
Region | 2013 | 2012 | Change | 2013 | 2012 | Change | |||||||||||
Midwest | 400 | 318 | 26 | % | 1,237 | 1,113 | 11 | % | |||||||||
Southern | 388 | 280 | 39 | % | 1,182 | 823 | 44 | % | |||||||||
Mid-Atlantic | 332 | 289 | 15 | % | 1,053 | 829 | 27 | % | |||||||||
Total | 1,120 | 887 | 26 | % | 3,472 | 2,765 | 26 | % |
BACKLOG | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 545 | $ | 170 | $ | 311,000 | 418 | $ | 113 | $ | 270,000 | |||||||||||
Southern | 449 | $ | 138 | $ | 307,000 | 341 | $ | 96 | $ | 280,000 | |||||||||||
Mid-Atlantic | 286 | $ | 100 | $ | 351,000 | 206 | $ | 74 | $ | 360,000 | |||||||||||
Total | 1,280 | $ | 408 | $ | 319,000 | 965 | $ | 283 | $ | 293,000 |
LAND POSITION SUMMARY | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,731 | 2,366 | 6,097 | 3,384 | 1,629 | 5,013 | ||||||||
Southern | 4,337 | 4,601 | 8,938 | 2,160 | 2,827 | 4,987 | ||||||||
Mid-Atlantic | 2,031 | 2,765 | 4,796 | 1,874 | 2,329 | 4,203 | ||||||||
Total | 10,099 | 9,732 | 19,831 | 7,418 | 6,785 | 14,203 |
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