0000799292-16-000068.txt : 20160727 0000799292-16-000068.hdr.sgml : 20160727 20160727083704 ACCESSION NUMBER: 0000799292-16-000068 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20160727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160727 DATE AS OF CHANGE: 20160727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: M I HOMES INC CENTRAL INDEX KEY: 0000799292 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 311210837 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12434 FILM NUMBER: 161785735 BUSINESS ADDRESS: STREET 1: 3 EASTON OVAL STE 500 CITY: COLUMBUS STATE: OH ZIP: 43219 BUSINESS PHONE: 6144188000 FORMER COMPANY: FORMER CONFORMED NAME: M I SCHOTTENSTEIN HOMES INC DATE OF NAME CHANGE: 19931228 8-K 1 a8k2ndqtr16eanings07-27x16.htm 8-K 2ND QUARTER 2016 EARNINGS 7-2716 Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): July 27, 2016


 
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)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









SECTION 2 - FINANCIAL INFORMATION

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 27, 2016, M/I Homes, Inc. issued a press release reporting financial results for the three and six months ended June 30, 2016. A copy of this press release, including information concerning forward-looking statements and factors that may affect our future results, is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is furnished pursuant to Item 2.02 on Form 8-K.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:

Exhibit No.
 
Description of Exhibits
 
 
 
99.1
 
Press release dated July 27, 2016









SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2016

M/I Homes, Inc.


By:
/s/ Ann Marie W. Hunker
 
Ann Marie W. Hunker
 
Vice President and Corporate Controller
 
(Principal Accounting Officer)














Index to Exhibits


Exhibit No.
 
Description of Exhibits
 
 
 
99.1
 
Press release dated July 27, 2016




 EX-99.1 2 exhbit991earningspressrele.htm EXHIBIT 99.1 EARNINGS PRESS RELEASE 7-27-16 Exhibit


Exhibit 99.1


M/I Homes Reports
2016 Second Quarter Results


Columbus, Ohio (July 27, 2016) - M/I Homes, Inc. (NYSE:MHO) announced results for the three months and six months ended June 30, 2016.

2016 Second Quarter Highlights:
•
Net income increased 19% to $15.9 million ($0.52 per diluted share; includes $0.06 per share
for stucco-related charges)
•
New contracts increased 23% to 1,354 - a second quarter record
•
Homes delivered increased 13%; average closing price increased 7%
•
Backlog sales value increased 28% to $842 million; backlog units increased 27% to 2,281

For the second quarter of 2016, the Company reported net income of $15.9 million, or $0.52 per diluted share. This compares to net income of $13.4 million, or $0.43 per diluted share, for the second quarter of 2015. The second quarter of 2016 includes a $2.8 million pre-tax charge ($0.06 per diluted share) for stucco-related repairs in certain of our Florida communities. For the six months ended June 30, 2016, the Company reported net income of $25.1 million, or $0.81 per diluted share, compared to net income of $22.9 million, or $0.74 per diluted share, in the same period of 2015. Year-to-date results for 2016 include a $4.9 million pre-tax charge ($0.10 per diluted share) for stucco-related repairs.

New contracts for 2016's second quarter were 1,354, a second quarter record, and an increase of 23% over 2015's second quarter. For the first six months of 2016, new contracts increased 21% to 2,668 from 2,208 in 2015. M/I Homes had 174 active communities at June 30, 2016 compared to 155 at June 30, 2015. The Company's cancellation rate was 14% in the second quarter of both 2016 and 2015. Homes in backlog increased 27% at June 30, 2016 to 2,281 units, with a sales value of $842 million (a 28% increase over last year’s second quarter), and an average sales price of $369,000. At June 30, 2015, the sales value of homes in backlog was $657 million, with an average sales price of $366,000 and backlog units of 1,794. Homes delivered in 2016's second quarter were 1,042 compared to 919 deliveries in 2015's second quarter - a 13% increase. Homes delivered for the six months ended June 30, 2016 increased 17% to 1,918 from 2015's deliveries of 1,636.

Robert H. Schottenstein, Chief Executive Officer and President, commented, “Following our strong first quarter results, we had another very good quarter highlighted by record second quarter sales, solid increases in both revenue and profit, and our highest second quarter backlog in 10 years. Our sales for the quarter were particularly strong increasing by 23% over last year; and year-to-date, our sales are 21% better than a year ago. Homes delivered increased 13% and revenue improved by 24%. Our adjusted gross margin (exclusive of stucco-related charges) improved 50 basis points compared to the first quarter. Net income for the quarter improved by 19% and pre-tax income, excluding stucco- related charges, improved by 27%. Our backlog sales value stands at $842 million, 28% higher than last year’s second quarter.”





Mr. Schottenstein continued, “With our strong backlog, along with the planned community openings in the second half of 2016, we are well positioned to have a very solid 2016. Our financial condition remains strong with shareholders’ equity of $621 million and net debt to capital of less than 50%.”

The Company will broadcast live its earnings conference call today at 4:00 p.m. Eastern Time. To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the “Investors” section of the site, and select “Listen to the Conference Call.” A replay of the call will continue to be available on our website through July 2017.

M/I Homes, Inc. is one of the nation’s leading builders of single-family homes, having delivered over 96,000 homes. The Company’s homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and also currently operates under the name Hans Hagen Homes in its Minneapolis/St. Paul, Minnesota market. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defect, product liability and warranty claims and various governmental rules and regulations, as more fully discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

Contact M/I Homes, Inc.
Kevin C. Hake, Senior Vice President, Treasurer, (614) 418-8227
Ann Marie W. Hunker, Vice President, Controller, (614) 418-8225















M/I Homes, Inc. and Subsidiaries
Summary Statement of Income (Unaudited)
(Dollars in thousands, except per share amounts)

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
New contracts
1,354

 
1,100

 
2,668

 
2,208

Average community count
178

 
154

 
177

 
153

Cancellation rate
14
%
 
14
%
 
13
%
 
14
%
Backlog units
 
 
 
 
2,281

 
1,794

Backlog value
 
 
 
 
$
842,442

 
$
656,935

Homes delivered
1,042

 
919

 
1,918

 
1,636

Average home closing price
$
362

 
$
340

 
$
358

 
$
333

 
 
 
 
 
 
 
 
Homebuilding revenue:
 
 
 
 
 
 
 
   Housing revenue
$
377,226

 
$
312,112

 
$
686,473

 
$
545,112

   Land revenue
14,072

 
1,810

 
19,142

 
23,871

Total homebuilding revenue
$
391,298

 
$
313,922

 
$
705,615

 
$
568,983

 
 
 
 
 
 
 
 
Financial services revenue
9,949

 
8,934

 
20,002

 
17,032

Total revenue
$
401,247

 
$
322,856

 
$
725,617

 
$
586,015

 
 
 
 
 
 
 
 
Cost of sales - operations
316,954

 
252,595

 
574,971

 
458,778

Cost of sales - stucco-related charges
2,754

 
—

 
4,909

 
—

Gross margin
$
81,539

 
$
70,261

 
$
145,737

 
$
127,237

General and administrative expense
26,830

 
21,705

 
49,089

 
41,039

Selling expense
25,533

 
22,935

 
47,799

 
40,621

Operating income
$
29,176

 
$
25,621

 
$
48,849

 
$
45,577

Equity in income of unconsolidated joint ventures
(82
)
 
(14
)
 
(389
)
 
(212
)
Interest expense
4,308

 
3,750

 
9,573

 
8,212

Income before income taxes
$
24,950

 
$
21,885

 
$
39,665

 
$
37,577

Provision for income taxes
9,034

 
8,535

 
14,560

 
14,659

Net income
$
15,916

 
$
13,350

 
$
25,105

 
$
22,918

Preferred dividends
1,219

 
1,219

 
2,438

 
2,438

Net income to common shareholders
$
14,697

 
$
12,131

 
$
22,667

 
$
20,480

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.60

 
$
0.49

 
$
0.92

 
$
0.84

Diluted
$
0.52

 
$
0.43

 
$
0.81

 
$
0.74

 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
Basic
24,669

 
24,531

 
24,663

 
24,523

Diluted
30,077

 
30,023

 
30,055

 
30,002





M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)

 
As of
 
June 30,
 
2016
 
2015
Assets:
 
 
 
Total cash and cash equivalents(1)
$
30,000

 
$
26,947

Mortgage loans held for sale
100,379

 
75,063

Inventory:
 
 
 
Lots, land and land development
563,112

 
486,895

Land held for sale
11,597

 
5,754

Homes under construction
487,895

 
444,855

Other inventory
107,721

 
103,440

Total Inventory
$
1,170,325

 
$
1,040,944

 
 
 
 
Property and equipment - net
22,154

 
11,819

Investments in unconsolidated joint ventures
28,160

 
28,357

Deferred income taxes, net of valuation allowance
47,023

 
81,054

Other assets
55,113

 
45,585

Total Assets
$
1,453,154

 
$
1,309,769

 
 
 
 
Liabilities:
 
 
 
Debt - Homebuilding Operations:
 
 
 
Senior notes
$
295,125

 
$
226,608

Convertible senior subordinated notes due 2017
56,806

 
56,231

 Convertible senior subordinated notes due 2018
85,069

 
84,360

 Notes payable bank - homebuilding
70,000

 
105,600

Notes payable - other
8,552

 
8,230

Total Debt - Homebuilding Operations
$
515,552

 
$
481,029

 
 
 
 
Notes payable bank - financial services operations
92,666

 
69,681

Total Debt
$
608,218

 
$
550,710

 
 
 
 
Accounts payable
105,669

 
90,643

Other liabilities
118,755

 
101,243

Total Liabilities
$
832,642

 
$
742,596

 
 
 
 
Shareholders' Equity
620,512

 
567,173

Total Liabilities and Shareholders' Equity
$
1,453,154

 
$
1,309,769

 
 
 
 
Book value per common share
$
23.13

 
$
21.06

Net debt/net capital ratio(2)
49
%
 
48
%
(1)
2016 and 2015 amounts include $2.3 million and $5.2 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.




M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
(Dollars in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
Adjusted EBITDA(1)
$
37,885

 
$
32,760

 
$
65,118

 
$
59,529

 
 
 
 
 
 
 
 
Cash flow provided by (used in) operating activities
$
39,416

 
$
(16,934
)
 
$
40,472

 
$
(46,210
)
Cash used in investing activities
$
(2,913
)
 
$
(3,183
)
 
$
(15,776
)
 
$
(4,028
)
Cash (used in) provided by financing activities
$
(40,586
)
 
$
11,932

 
$
(7,229
)
 
$
56,476

 
 
 
 
 
 
 
 
Land/lot purchases
$
45,413

 
$
43,617

 
$
97,386

 
$
94,817

Land development spending
$
41,339

 
$
44,546

 
$
73,533

 
$
82,227

Land sale revenue
$
14,072

 
$
1,810

 
$
19,142

 
$
23,871

Land sale gross profit
$
1,303

 
$
218

 
$
2,032

 
$
5,459

 
 
 
 
 
 
 
 
Financial services pre-tax income
$
4,852

 
$
4,850

 
$
10,743

 
$
9,843

(1)
See "Non-GAAP Financial Results / Reconciliation" table below.

M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results / Reconciliation (2) 
(Dollars in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
Total revenue
$
401,247

 
$
322,856

 
$
725,617

 
$
586,015

 
 
 
 
 
 
 
 
Gross margin
$
81,539

 
$
70,261

 
$
145,737

 
$
127,237

Add: Stucco-related charges
2,754

 
—

 
4,909

 
—

Adjusted gross margin
$
84,293

 
$
70,261

 
$
150,646

 
$
127,237

 
 
 
 
 
 
 
 
Gross margin percentage
20.3
%
 
21.8
%
 
20.1
%
 
21.7
%
Adjusted gross margin percentage
21.0
%
 
21.8
%
 
20.8
%
 
21.7
%
 
 
 
 
 
 
 
 
Income before income taxes
$
24,950

 
$
21,885

 
$
39,665

 
$
37,577

Add: Stucco-related charges
2,754

 
—

 
4,909

 
—

Adjusted income before income taxes
$
27,704

 
$
21,885

 
$
44,574

 
$
37,577


 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
Net income
$
15,916

 
$
13,350

 
$
25,105

 
$
22,918

Add:
 
 
 
 
 
 
 
Provision for income taxes
9,034

 
8,535

 
14,560

 
14,659

Interest expense net of interest income
3,716

 
3,265

 
8,551

 
7,368

Interest amortized to cost of sales
4,631

 
3,780

 
8,175

 
7,319

Depreciation and amortization
2,966

 
2,429

 
5,850

 
4,735

Non-cash charges
1,622

 
1,401

 
2,877

 
2,530

Adjusted EBITDA
$
37,885

 
$
32,760

 
$
65,118

 
$
59,529

(2)
We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations, and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement their respective most directly comparable GAAP financial measures in order to provide a greater understanding of the factors and trends affecting our operations.




M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data

NEW CONTRACTS
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
 
 
 
 
%
 
 
 
 
 
%
Region
2016
 
2015
 
Change
 
2016
 
2015
 
Change
Midwest
507

 
397

 
28
%
 
1,002

 
817

 
23
%
Southern
515

 
407

 
27
%
 
1,007

 
821

 
23
%
Mid-Atlantic
332

 
296

 
12
%
 
659

 
570

 
16
%
Total
1,354

 
1,100

 
23
%
 
2,668

 
2,208

 
21
%

HOMES DELIVERED
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
 
 
 
 
%
 
 
 
 
 
%
Region
2016
 
2015
 
Change
 
2016
 
2015
 
Change
Midwest
398

 
351

 
13
 %
 
720

 
599

 
20
%
Southern
398

 
312

 
28
 %
 
748

 
587

 
27
%
Mid-Atlantic
246

 
256

 
(4
)%
 
450

 
450

 
—
%
Total
1,042

 
919

 
13
 %
 
1,918

 
1,636

 
17
%

BACKLOG
 
June 30, 2016
 
June 30, 2015
 
 
 
Dollars
 
Average
 
 
 
Dollars
 
Average
Region
Units
 
(millions)
 
Sales Price
 
Units
 
(millions)
 
Sales Price
Midwest
954

 
$
364

 
$
382,000

 
723

 
$
268

 
$
371,000

Southern
819

 
$
288

 
$
352,000

 
684

 
$
252

 
$
368,000

Mid-Atlantic
508

 
$
190

 
$
374,000

 
387

 
$
137

 
$
355,000

Total
2,281

 
$
842

 
$
369,000

 
1,794

 
$
657

 
$
366,000


LAND POSITION SUMMARY
 
June 30, 2016
 
 
June 30, 2015
 
Lots
Lots Under
 
 
 
Lots
Lots Under
 
Region
Owned
Contract
Total
 
 
Owned
Contract
Total
Midwest
3,640

4,570

8,210

 
 
3,260

4,186

7,446

Southern
4,435

5,119

9,554

 
 
4,596

4,653

9,249

Mid-Atlantic
2,395

1,789

4,184

 
 
2,559

2,484

5,043

Total
10,470

11,478

21,948

 
 
10,415

11,323

21,738




 GRAPHIC 3 milogoa01.jpg begin 644 milogoa01.jpg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end