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 Exhibit | |
99.1 | Press Release dated April 28, 2016. |
By: | /s/Ann Marie W. Hunker |
Ann Marie W. Hunker | |
Vice President, Corporate Controller | |
(Chief Accounting Officer) |
Exhibit No. | Description of Exhibit | |
99.1 | Press Release dated April 28, 2016. |
• | Net income of $9.2 million ($0.30 per diluted share) |
• | Pre-tax income increased 34% to $14.0 million, excluding impact of land sales gross profit |
• | New contracts increased 19% |
• | Homes delivered increased 22%; average closing price increased 9% |
• | Backlog sales value increased 27% to $730 million; backlog units increased 22% to 1,969 |
• | Opening of new division in Sarasota, Florida |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
New contracts | 1,314 | 1,108 | |||||
Average community count | 178 | 152 | |||||
Cancellation rate | 11 | % | 13 | % | |||
Backlog units | 1,969 | 1,613 | |||||
Backlog value | $ | 729,950 | $ | 576,753 | |||
Homes delivered | 876 | 717 | |||||
Average home closing price | $ | 353 | $ | 325 | |||
Homebuilding revenue: | |||||||
Housing revenue | $ | 309,247 | $ | 233,000 | |||
Land revenue | 5,070 | 22,061 | |||||
Total homebuilding revenue | $ | 314,317 | $ | 255,061 | |||
Financial services revenue | 10,053 | 8,098 | |||||
Total revenue | $ | 324,370 | $ | 263,159 | |||
Cost of sales - operations | 260,172 | 206,183 | |||||
Gross margin | $ | 64,198 | $ | 56,976 | |||
General and administrative expense | 22,259 | 19,334 | |||||
Selling expense | 22,266 | 17,686 | |||||
Operating income | $ | 19,673 | $ | 19,956 | |||
Equity in income of unconsolidated joint ventures | (307 | ) | (198 | ) | |||
Interest expense | 5,265 | 4,462 | |||||
Income before income taxes | $ | 14,715 | $ | 15,692 | |||
Provision for income taxes | 5,526 | 6,124 | |||||
Net income | $ | 9,189 | $ | 9,568 | |||
Preferred dividends | 1,219 | 1,219 | |||||
Net income to common shareholders | $ | 7,970 | $ | 8,349 | |||
Earnings per share: | |||||||
Basic | $ | 0.32 | $ | 0.34 | |||
Diluted | $ | 0.30 | $ | 0.31 | |||
Weighted average shares outstanding: | |||||||
Basic | 24,657 | 24,514 | |||||
Diluted | 30,032 | 29,975 |
As of | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Assets: | |||||||
Total cash and cash equivalents(1) | $ | 34,321 | $ | 36,098 | |||
Mortgage loans held for sale | 94,438 | 79,180 | |||||
Inventory: | |||||||
Lots, land and land development | 596,072 | 470,317 | |||||
Land held for sale | 13,801 | 4,374 | |||||
Homes under construction | 439,328 | 403,965 | |||||
Other inventory | 104,336 | 80,414 | |||||
Total Inventory | $ | 1,153,537 | $ | 959,070 | |||
Property and equipment - net | 22,740 | 11,081 | |||||
Investments in unconsolidated joint ventures | 25,693 | 29,449 | |||||
Deferred income taxes, net of valuation allowance | 55,860 | 88,748 | |||||
Other assets | 50,123 | 41,443 | |||||
Total Assets | $ | 1,436,712 | $ | 1,245,069 | |||
Liabilities: | |||||||
Debt - Homebuilding Operations: | |||||||
Senior notes | $ | 294,904 | $ | 226,354 | |||
Convertible senior subordinated notes due 2017 | 56,662 | 56,087 | |||||
Convertible senior subordinated notes due 2018 | 84,891 | 84,183 | |||||
Notes payable bank - homebuilding | 114,500 | 90,000 | |||||
Notes payable - other | 8,805 | 8,876 | |||||
Total Debt - Homebuilding Operations | $ | 559,762 | $ | 465,500 | |||
Notes payable bank - financial services operations | 87,186 | 71,723 | |||||
Total Debt | $ | 646,948 | $ | 537,223 | |||
Accounts payable | 81,594 | 69,452 | |||||
Other liabilities | 103,565 | 84,781 | |||||
Total Liabilities | $ | 832,107 | $ | 691,456 | |||
Shareholders' Equity | 604,605 | 553,613 | |||||
Total Liabilities and Shareholders' Equity | $ | 1,436,712 | $ | 1,245,069 | |||
Book value per common share | $ | 22.48 | $ | 20.54 | |||
Net debt/net capital ratio(2) | 51 | % | 48 | % |
(1) | 2016 and 2015 amounts include $2.6 million and $6.1 million of restricted cash and cash held in escrow, respectively. |
(2) | Net debt/net capital ratio is calculated as the principal amount outstanding of our total debt minus total cash and cash equivalents, divided by the sum of the principal amount outstanding of our total debt minus total cash and cash equivalents plus shareholders' equity. |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Adjusted EBITDA(1) | $ | 27,233 | $ | 26,769 | |||
Cash flow provided by (used in) operating activities | $ | 1,056 | $ | (29,276 | ) | ||
Cash used in investing activities | $ | (12,863 | ) | $ | (845 | ) | |
Cash provided by financing activities | $ | 33,357 | $ | 44,544 | |||
Land/lot purchases | $ | 51,973 | $ | 51,200 | |||
Land development spending | $ | 32,194 | $ | 37,681 | |||
Land sale revenue | $ | 5,070 | $ | 22,061 | |||
Land sale gross profit | $ | 729 | $ | 5,241 | |||
Financial services pre-tax income | $ | 5,891 | $ | 4,993 |
(1) | See "Non-GAAP Financial Results / Reconciliation" table below. |
Three Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
Net income | $ | 9,189 | $ | 9,568 | |||
Add: | |||||||
Provision for income taxes | 5,526 | 6,124 | |||||
Interest expense net of interest income | 4,835 | 4,103 | |||||
Interest amortized to cost of sales | 3,544 | 3,539 | |||||
Depreciation and amortization | 2,884 | 2,306 | |||||
Non-cash charges | 1,255 | 1,129 | |||||
Adjusted EBITDA | $ | 27,233 | $ | 26,769 |
NEW CONTRACTS | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2016 | 2015 | Change | |||||
Midwest | 495 | 420 | 18 | % | ||||
Southern | 492 | 414 | 19 | % | ||||
Mid-Atlantic | 327 | 274 | 19 | % | ||||
Total | 1,314 | 1,108 | 19 | % |
HOMES DELIVERED | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
% | ||||||||
Region | 2016 | 2015 | Change | |||||
Midwest | 322 | 248 | 30 | % | ||||
Southern | 350 | 275 | 27 | % | ||||
Mid-Atlantic | 204 | 194 | 5 | % | ||||
Total | 876 | 717 | 22 | % |
BACKLOG | |||||||||||||||||||||
March 31, 2016 | March 31, 2015 | ||||||||||||||||||||
Dollars | Average | Dollars | Average | ||||||||||||||||||
Region | Units | (millions) | Sales Price | Units | (millions) | Sales Price | |||||||||||||||
Midwest | 845 | $ | 330 | $ | 391,000 | 677 | $ | 242 | $ | 357,000 | |||||||||||
Southern | 702 | $ | 247 | $ | 352,000 | 589 | $ | 211 | $ | 358,000 | |||||||||||
Mid-Atlantic | 422 | $ | 153 | $ | 361,000 | 347 | $ | 124 | $ | 358,000 | |||||||||||
Total | 1,969 | $ | 730 | $ | 371,000 | 1,613 | $ | 577 | $ | 358,000 |
LAND POSITION SUMMARY | ||||||||||||||
March 31, 2016 | March 31, 2015 | |||||||||||||
Lots | Lots Under | Lots | Lots Under | |||||||||||
Region | Owned | Contract | Total | Owned | Contract | Total | ||||||||
Midwest | 3,488 | 5,003 | 8,491 | 3,386 | 2,272 | 5,658 | ||||||||
Southern | 4,630 | 5,132 | 9,762 | 4,917 | 3,845 | 8,762 | ||||||||
Mid-Atlantic | 2,750 | 1,259 | 4,009 | 2,633 | 2,397 | 5,030 | ||||||||
Total | 10,868 | 11,394 | 22,262 | 10,936 | 8,514 | 19,450 |
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