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

Revenue	$	—	$	431,903	$	10,561		$	—		$	442,464
Costs and expenses:
Land and housing	—		363,635		—			—			363,635
General and administrative	—		24,340		4,820			—			29,160
Selling	—		27,663		—			—			27,663
Equity in income of unconsolidated joint ventures	—		—		(24		)	—			(24		)
Interest	—		3,036		551			—			3,587
Total costs and expenses	—		418,674		5,347			—			424,021

Income before income taxes	—		13,229		5,214			—			18,443

Provision for income taxes	—		5,601		1,900			—			7,501

Equity in subsidiaries	10,942		—		—			(10,942		)	—

Net income	10,942		7,628		3,314			(10,942		)	10,942

Preferred dividends	1,218		—		—			—			1,218

Net income to common shareholders	$	9,724	$	7,628	$	3,314		$	(10,942	)	$	9,724



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

Revenue	$	—	$	354,181	$	9,276		$	—		$	363,457
Costs and expenses:
Land and housing	—		285,416		—			—			285,416
General and administrative	—		19,080		4,571			—			23,651
Selling	—		24,270		—			—			24,270
Equity in income of unconsolidated joint ventures	—		—		(36		)	—			(36		)
Interest	—		3,246		412			—			3,658
Total costs and expenses	—		332,012		4,947			—			336,959

Income before income taxes	—		22,169		4,329			—			26,498

Provision for income taxes	—		9,531		1,397			—			10,928

Equity in subsidiaries	15,570		—		—			(15,570		)	—

Net income	15,570		12,638		2,932			(15,570		)	15,570

Preferred dividends	1,218		—		—			—			1,218

Net income to common shareholders	$	14,352	$	12,638	$	2,932		$	(15,570	)	$	14,352



CONDENSED CONSOLIDATING STATEMENTS OF INCOME

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

Revenue	$	—	$	1,137,517	$	30,564		$	—		$	1,168,081
Costs and expenses:
Land and housing	—		943,515		—			—			943,515
General and administrative	—		64,727		13,522			—			78,249
Selling	—		75,462		—			—			75,462
Equity in income of unconsolidated joint ventures	—		—		(413		)	—			(413		)
Interest	—		11,715		1,445			—			13,160
Total costs and expenses	—		1,095,419		14,554			—			1,109,973

Income before income taxes	—		42,098		16,010			—			58,108

Provision for income taxes	—		16,487		5,574			—			22,061

Equity in subsidiaries	36,047		—		—			(36,047		)	—

Net income	36,047		25,611		10,436			(36,047		)	36,047

Preferred dividends	3,656		—		—			—			3,656

Net income to common shareholders	$	32,391	$	25,611	$	10,436		$	(36,047	)	$	32,391



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

Revenue	$	—	$	923,164	$	26,308		$	—		$	949,472
Costs and expenses:
Land and housing	—		744,194		—			—			744,194
General and administrative	—		53,334		11,356			—			64,690
Selling	—		64,891		—			—			64,891
Equity in income of unconsolidated joint ventures	—		—		(248		)	—			(248		)
Interest	—		10,732		1,138			—			11,870
Total costs and expenses	—		873,151		12,246			—			885,397

Income before income taxes	—		50,013		14,062			—			64,075

Provision for income taxes	—		20,690		4,897			—			25,587

Equity in subsidiaries	38,488		—		—			(38,488		)	—

Net income	38,488		29,323		9,165			(38,488		)	38,488

Preferred dividends	3,656		—		—			—			3,656

Net income to common shareholders	$	34,832	$	29,323	$	9,165		$	(38,488	)	$	34,832



CONDENSED CONSOLIDATING BALANCE SHEET

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

ASSETS:
Cash and cash equivalents	$	—	$	7,161	$	15,149	$	—		$	22,310
Restricted cash	—		998		—		—			998
Mortgage loans held for sale	—		—		95,545		—			95,545
Inventory	—		1,225,153		—		—			1,225,153
Property and equipment - net	—		21,221		571		—			21,792
Investment in unconsolidated joint ventures	—		6,017		20,511		—			26,528
Deferred income taxes, net of valuation allowances	—		39,944		—		—			39,944
Investment in subsidiaries	649,961		—		—		(649,961		)	—
Intercompany assets	417,303		—		—		(417,303		)	—
Other assets	1,924		50,391		12,652		—			64,967
TOTAL ASSETS	$	1,069,188	$	1,350,885	$	144,428	$	(1,067,264	)	$	1,497,237

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	109,808	$	371	$	—		$	110,179
Customer deposits	—		26,439		—		—			26,439
Intercompany liabilities	—		399,251		18,052		(417,303		)	—
Other liabilities	—		94,998		4,971		—			99,969
Community development district obligations	—		551		—		—			551
Obligation for consolidated inventory not owned	—		5,862		—		—			5,862
Notes payable bank - homebuilding operations	—		85,000		—		—			85,000
Notes payable bank - financial services operations	—		—		91,483		—			91,483
Notes payable - other	—		8,566		—		—			8,566
Convertible senior subordinated notes due 2017 - net	56,949		—		—		—			56,949
Convertible senior subordinated notes due 2018 - net	85,246		—		—		—			85,246
Senior notes due 2021 - net	295,401		—		—		—			295,401
TOTAL LIABILITIES	437,596		730,475		114,877		(417,303		)	865,645

SHAREHOLDERS’ EQUITY	631,592		620,410		29,551		(649,961		)	631,592

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,069,188	$	1,350,885	$	144,428	$	(1,067,264	)	$	1,497,237



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

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

OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	7,138		$	(18,192	)	$	44,712		$	(7,138	)	$	26,520

INVESTING ACTIVITIES:
Restricted cash	—			1,880			—			—			1,880
Purchase of property and equipment	—			(11,565		)	(54		)	—			(11,619		)
Intercompany investing	(3,555		)	—			—			3,555			—
Investments in and advances to unconsolidated joint ventures	—			(5,504		)	(4,556		)	—			(10,060		)
Net cash (used in) provided by investing activities	(3,555		)	(15,189		)	(4,610		)	3,555			(19,799		)

FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			276,800			—			—			276,800
Principal repayments of bank borrowings - homebuilding operations	—			(235,600		)	—			—			(235,600		)
Net proceeds from bank borrowings - financial services operations	—			—			(32,165		)	—			(32,165		)
Principal proceeds from notes payable - other and CDD bond obligations	—			125			—			—			125
Proceeds from exercise of stock options	73			—			—			—			73
Intercompany financing	—			(630		)	(3,766		)	4,396			—
Dividends paid	(3,656		)	—			(7,138		)	7,138			(3,656		)
Debt issue costs	—			(153		)	(40		)	—			(193		)
Net cash (used in) provided by financing activities	(3,583		)	40,542			(43,109		)	11,534			5,384

Net increase (decrease) in cash and cash equivalents	—			7,161			(3,007		)	7,951			12,105
Cash and cash equivalents balance at beginning of period	—			—			18,156			(7,951		)	10,205
Cash and cash equivalents balance at end of period	$	—		$	7,161		$	15,149		$	—		$	22,310



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

OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	2,428		$	(114,357	)	$	19,161		$	(2,428	)	$	(95,196	)

INVESTING ACTIVITIES:
Restricted cash	—			3,615			—			—			3,615
Purchase of property and equipment	—			(1,939		)	(64		)	—			(2,003		)
Intercompany Investing	193			—			—			(193		)	—
Investments in and advances to unconsolidated joint ventures	—			(2,728		)	(7,997		)	—			(10,725		)
Net proceeds from the sale of mortgage servicing rights	—			—			3,065			—			3,065
Net cash provided by (used in) investing activities	193			(1,052		)	(4,996		)	(193		)	(6,048		)

FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			329,400			—			—			329,400
Principal repayments of bank borrowings - homebuilding operations	—			(203,300		)	—			—			(203,300		)
Net repayments of bank borrowings - financial services operations	—			—			(12,140		)	—			(12,140		)
Principal repayments of notes payable - other and CDD bond obligations	—			(155		)	—			—			(155		)
Proceeds from exercise of stock options	1,035			—			—			—			1,035
Intercompany financing	—			(6,158		)	5,965			193			—
Dividends paid	(3,656		)	—			(2,428		)	2,428			(3,656		)
Debt issue costs	—			(380		)	(40		)	—			(420		)
Net cash (used in) provided by financing activities	(2,621		)	119,407			(8,643		)	2,621			110,764

Net increase in cash and cash equivalents	—			3,998			5,522			—			9,520
Cash and cash equivalents balance at beginning of period	—			3,872			11,663			—			15,535
Cash and cash equivalents balance at end of period	$	—		$	7,870		$	17,185		$	—		$	25,055