Supplemental Guarantor Information

The Company’s obligations under the 2021 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 2021 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 income and cash flow information for M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted 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) 2021 Senior Notes on a joint and several senior unsecured basis, (b) 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) 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 June 30, 2016, 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 Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indenture governing the 2021 Senior Notes.

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 Unrestricted Subsidiaries.



CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	Three Months Ended June 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated

Revenue	$	—	$	391,297	$	9,950		$	—		$	401,247
Costs and expenses:
Land and housing	—		319,708		—			—			319,708
General and administrative	—		22,085		4,745			—			26,830
Selling	—		25,533		—			—			25,533
Equity in income of unconsolidated joint ventures	—		—		(82		)	—			(82		)
Interest	—		3,798		510			—			4,308
Total costs and expenses	—		371,124		5,173			—			376,297

Income before income taxes	—		20,173		4,777			—			24,950

Provision for income taxes	—		7,442		1,592			—			9,034

Equity in subsidiaries	15,916		—		—			(15,916		)	—

Net income	15,916		12,731		3,185			(15,916		)	15,916

Preferred dividends	1,219		—		—			—			1,219

Net income to common shareholders	$	14,697	$	12,731	$	3,185		$	(15,916	)	$	14,697



	Three Months Ended June 30, 2015
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated

Revenue	$	—	$	313,921	$	8,935		$	—		$	322,856
Costs and expenses:
Land and housing	—		252,595		—			—			252,595
General and administrative	—		17,868		3,837			—			21,705
Selling	—		22,935		—			—			22,935
Equity in income of unconsolidated joint ventures	—		—		(14		)	—			(14		)
Interest	—		3,355		395			—			3,750
Total costs and expenses	—		296,753		4,218			—			300,971

Income before income taxes	—		17,168		4,717			—			21,885

Provision for income taxes	—		6,767		1,768			—			8,535

Equity in subsidiaries	13,350		—		—			(13,350		)	—

Net income	13,350		10,401		2,949			(13,350		)	13,350

Preferred dividends	1,219		—		—			—			1,219

Net income to common shareholders	$	12,131	$	10,401	$	2,949		$	(13,350	)	$	12,131



	Six Months Ended June 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated

Revenue	$	—	$	705,614	$	20,003		$	—		$	725,617
Costs and expenses:
Land and housing	—		579,880		—			—			579,880
General and administrative	—		40,387		8,702			—			49,089
Selling	—		47,799		—			—			47,799
Equity in income of unconsolidated joint ventures	—		—		(389		)	—			(389		)
Interest	—		8,679		894			—			9,573
Total costs and expenses	—		676,745		9,207			—			685,952

Income before income taxes	—		28,869		10,796			—			39,665

Provision for income taxes	—		10,886		3,674			—			14,560

Equity in subsidiaries	25,105		—		—			(25,105		)	—

Net income	25,105		17,983		7,122			(25,105		)	25,105

Preferred dividends	2,438		—		—			—			2,438

Net income to common shareholders	$	22,667	$	17,983	$	7,122		$	(25,105	)	$	22,667



	Six Months Ended June 30, 2015
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated

Revenue	$	—	$	568,983	$	17,032		$	—		$	586,015
Costs and expenses:
Land and housing	—		458,778		—			—			458,778
General and administrative	—		34,254		6,785			—			41,039
Selling	—		40,621		—			—			40,621
Equity in income of unconsolidated joint ventures	—		—		(212		)	—			(212		)
Interest	—		7,486		726			—			8,212
Total costs and expenses	—		541,139		7,299			—			548,438

Income before income taxes	—		27,844		9,733			—			37,577

Provision for income taxes	—		11,159		3,500			—			14,659

Equity in subsidiaries	22,918		—		—			(22,918		)	—

Net income	22,918		16,685		6,233			(22,918		)	22,918

Preferred dividends	2,438		—		—			—			2,438

Net income to common shareholders	$	20,480	$	16,685	$	6,233		$	(22,918	)	$	20,480



CONDENSED CONSOLIDATING BALANCE SHEET

	June 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	14,743	$	12,929	$	—		$	27,672
Restricted cash	—		2,328		—		—			2,328
Mortgage loans held for sale	—		—		100,379		—			100,379
Inventory	—		1,170,325		—		—			1,170,325
Property and equipment - net	—		21,550		604		—			22,154
Investment in unconsolidated joint ventures	—		10,384		17,776		—			28,160
Deferred income taxes, net of valuation allowances	—		46,949		74		—			47,023
Investment in subsidiaries	641,219		—		—		(641,219		)	—
Intercompany assets	414,134		—		—		(414,134		)	—
Other assets	2,159		41,150		11,804		—			55,113
TOTAL ASSETS	$	1,057,512	$	1,307,429	$	143,566	$	(1,055,353	)	$	1,453,154

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	105,342	$	327	$	—		$	105,669
Customer deposits	—		27,415		—		—			27,415
Intercompany liabilities	—		397,979		16,155		(414,134		)	—
Other liabilities	—		79,468		5,981		—			85,449
Community development district obligations	—		722		—		—			722
Obligation for consolidated inventory not owned	—		5,169		—		—			5,169
Notes payable bank - homebuilding operations	—		70,000		—		—			70,000
Notes payable bank - financial services operations	—		—		92,666		—			92,666
Notes payable - other	—		8,552		—		—			8,552
Convertible senior subordinated notes due 2017 - net	56,806		—		—		—			56,806
Convertible senior subordinated notes due 2018 - net	85,069		—		—		—			85,069
Senior notes due 2021 - net	295,125		—		—		—			295,125
TOTAL LIABILITIES	437,000		694,647		115,129		(414,134		)	832,642

SHAREHOLDERS’ EQUITY	620,512		612,782		28,437		(641,219		)	620,512

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,057,512	$	1,307,429	$	143,566	$	(1,055,353	)	$	1,453,154



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2015
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	—	$	18,156	$	(7,951	)	$	10,205
Restricted cash	—		2,896		—		—			2,896
Mortgage loans held for sale	—		—		127,001		—			127,001
Inventory	—		1,112,042		—		—			1,112,042
Property and equipment - net	—		12,222		675		—			12,897
Investment in unconsolidated joint ventures	—		17,425		19,542		—			36,967
Deferred income taxes, net of valuation allowances	—		67,255		149		—			67,404
Investment in subsidiaries	621,052		—		—		(621,052		)	—
Intercompany assets	408,847		—		—		(408,847		)	—
Other assets	2,626		32,335		11,181		—			46,142
TOTAL ASSETS	$	1,032,525	$	1,244,175	$	176,704	$	(1,037,850	)	$	1,415,554

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	94,554	$	275	$	(7,951	)	$	86,878
Customer deposits	—		19,567		—		—			19,567
Intercompany liabilities	—		387,439		21,408		(408,847		)	—
Other liabilities	—		88,550		5,120		—			93,670
Community development district obligations	—		1,018		—		—			1,018
Obligation for consolidated inventory not owned	—		6,007		—		—			6,007
Notes payable bank - homebuilding operations	—		43,800		—		—			43,800
Notes payable bank - financial services operations	—		—		123,648		—			123,648
Notes payable - other	—		8,441		—		—			8,441
Convertible senior subordinated notes due 2017 - net	56,518		—		—		—			56,518
Convertible senior subordinated notes due 2018 - net	84,714		—		—		—			84,714
Senior notes due 2021 - net	294,727		—		—		—			294,727
TOTAL LIABILITIES	435,959		649,376		150,451		(416,798		)	818,988

SHAREHOLDERS’ EQUITY	596,566		594,799		26,253		(621,052		)	596,566

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,032,525	$	1,244,175	$	176,704	$	(1,037,850	)	$	1,415,554



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2016
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated

OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	4,938		$	2,056		$	38,416		$	(4,938	)	$	40,472

INVESTING ACTIVITIES:
Restricted cash	—			1,035			—			—			1,035
Purchase of property and equipment	—			(10,996		)	(33		)	—			(11,029		)
Intercompany investing	(2,573		)	—			—			2,573			—
Investments in and advances to unconsolidated joint ventures	—			(3,525		)	(2,257		)	—			(5,782		)
Net cash (used in) provided by investing activities	(2,573		)	(13,486		)	(2,290		)	2,573			(15,776		)

FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			192,200			—			—			192,200
Principal repayments of bank borrowings - homebuilding operations	—			(166,000		)	—			—			(166,000		)
Net proceeds from bank borrowings - financial services operations	—			—			(30,982		)	—			(30,982		)
Principal proceeds from notes payable - other and CDD bond obligations	—			111			—			—			111
Proceeds from exercise of stock options	73			—			—			—			73
Intercompany financing	—			15			(5,393		)	5,378			—
Dividends paid	(2,438		)	—			(4,938		)	4,938			(2,438		)
Debt issue costs	—			(153		)	(40		)	—			(193		)
Net cash (used in) provided by financing activities	(2,365		)	26,173			(41,353		)	10,316			(7,229		)

Net increase (decrease) in cash and cash equivalents	—			14,743			(5,227		)	7,951			17,467
Cash and cash equivalents balance at beginning of period	—			—			18,156			(7,951		)	10,205
Cash and cash equivalents balance at end of period	$	—		$	14,743		$	12,929		$	—		$	27,672



	Six Months Ended June 30, 2015
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated

OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	2,000		$	(65,777	)	$	19,567		$	(2,000	)	$	(46,210	)

INVESTING ACTIVITIES:
Restricted cash	—			1,583			—			—			1,583
Purchase of property and equipment	—			(1,337		)	(64		)	—			(1,401		)
Intercompany Investing	98			—			—			(98		)	—
Investments in and advances to unconsolidated joint ventures	—			(2,555		)	(1,655		)	—			(4,210		)
Net cash provided by (used in) investing activities	98			(2,309		)	(1,719		)	(98		)	(4,028		)

FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			220,700			—			—			220,700
Principal repayments of bank borrowings - homebuilding operations	—			(145,100		)	—			—			(145,100		)
Net repayments of bank borrowings - financial services operations	—			—			(15,698		)	—			(15,698		)
Principal repayments of notes payable - other and CDD bond obligations	—			(1,288		)	—			—			(1,288		)
Proceeds from exercise of stock options	340			—			—			—			340
Intercompany financing	—			(888		)	790			98			—
Dividends paid	(2,438		)	—			(2,000		)	2,000			(2,438		)
Debt issue costs	—			—			(40		)	—			(40		)
Net cash (used in) provided by financing activities	(2,098		)	73,424			(16,948		)	2,098			56,476

Net increase in cash and cash equivalents	—			5,338			900			—			6,238
Cash and cash equivalents balance at beginning of period	—			3,872			11,663			—			15,535
Cash and cash equivalents balance at end of period	$	—		$	9,210		$	12,563		$	—		$	21,773