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Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2018
Supplemental Guarantor Information [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Supplemental Guarantor Information
The Company’s obligations under the 2025 Senior Notes and the 2021 Senior 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 2025 Senior Notes and the 2021 Senior 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 (1) 2025 Senior Notes on a joint and several senior unsecured basis and (2) 2021 Senior Notes on a joint and several senior 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, 2018, 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 2025 Senior Notes 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.
UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
546,222

$
11,876

$
—

$
558,098

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

449,336

—

—

449,336

General and administrative
 
—

28,570

6,096

—

34,666

Selling
 
—

35,591

—

—

35,591

Equity in loss from joint venture arrangements
 
—

—

86

—

86

Interest
 
—

4,193

695

—

4,888

Total costs and expenses
 
—

517,690

6,877

—

524,567

 
 
 
 
 
 
 
Income before income taxes
 
—

28,532

4,999

—

33,531

 
 
 
 
 
 
 
Provision for income taxes
 
—

4,552

1,068

—

5,620

 
 
 
 
 
 
 
Equity in subsidiaries
 
27,911

—

—

(27,911
)
—

 
 
 
 
 
 
 
Net income
 
$
27,911

$
23,980

$
3,931

$
(27,911
)
$
27,911

 
 
Three Months Ended June 30, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
444,998

$
11,868

$
—

$
456,866

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

367,598

—

—

367,598

General and administrative
 
—

24,915

5,197

—

30,112

Selling
 
—

30,247

—

—

30,247

Equity in income from joint venture arrangements
 
—

—

(110
)
—

(110
)
Interest
 
—

3,169

665

—

3,834

Total costs and expenses
 
—

425,929

5,752

—

431,681

 
 
 
 
 
 
 
Income before income taxes
 
—

19,069

6,116

—

25,185

 
 
 
 
 
 
 
Provision for income taxes
 
—

6,246

1,950

—

8,196

 
 
 
 
 
 
 
Equity in subsidiaries
 
16,989

—

—

(16,989
)
—

 
 
 
 
 
 
 
Net income
 
16,989

12,823

4,166

(16,989
)
16,989

 
 
 
 
 
 
 
Preferred dividends
 
1,219

—

—

—

1,219

 
 
 
 
 
 
 
Net income available to common shareholders
 
$
15,770

$
12,823

$
4,166

$
(16,989
)
$
15,770


 
 
Six Months Ended June 30, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
969,053

$
26,902

$
—

$
995,955

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

798,038

—

—

798,038

General and administrative
 
—

50,741

11,876

—

62,617

Selling
 
—

65,654

—

—

65,654

Acquisition and integration costs
 
—

1,700

—

—

1,700

Equity in income from joint venture arrangements
 
—

—

(224
)
—

(224
)
Interest
 
—

9,301

1,465

—

10,766

Total costs and expenses
 
—

925,434

13,117

—

938,551

 
 
 
 
 
 
 
Income before income taxes
 
—

43,619

13,785

—

57,404

 
 
 
 
 
 
 
Provision for income taxes
 
—

8,458

2,972

—

11,430

 
 
 
 
 
 
 
Equity in subsidiaries
 
45,974

—

—

(45,974
)
—

 
 
 
 
 
 
 
Net income
 
$
45,974

$
35,161

$
10,813

$
(45,974
)
$
45,974


 
 
Six Months Ended June 30, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
837,671

$
26,175

$
—

$
863,846

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

687,879

—

—

687,879

General and administrative
 
—

47,375

10,497

—

57,872

Selling
 
—

57,530

—

—

57,530

Equity in income from joint venture arrangements
 
—

—

(127
)
—

(127
)
Interest
 
—

7,839

1,333

—

9,172

Total costs and expenses
 
—

800,623

11,703

—

812,326

 
 
 
 
 
 
 
Income before income taxes
 
—

37,048

14,472

—

51,520

 
 
 
 
 
 
 
Provision for income taxes
 
—

12,735

4,913

—

17,648

 
 
 
 
 
 
 
Equity in subsidiaries
 
33,872

—

—

(33,872
)
—

 
 
 
 
 
 
 
Net income
 
33,872

24,313

9,559

(33,872
)
33,872

 
 
 
 
 
 
 
Preferred dividends
 
2,438

—

—

—

2,438

 
 
 
 
 
 
 
Net income available to common shareholders
 
$
31,434

$
24,313

$
9,559

$
(33,872
)
$
31,434



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
June 30, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$
—

$
50,673

$
17,144

$
—

$
67,817

Mortgage loans held for sale
 
—

—

108,000

—

108,000

Inventory
 
—

1,652,468

—

—

1,652,468

Property and equipment - net
 
—

27,879

1,006

—

28,885

Investment in joint venture arrangements
 
—

11,541

2,212

—

13,753

Deferred income tax asset
 
—

17,528

—

—

17,528

Investment in subsidiaries
 
762,731

—

—

(762,731
)
—

Intercompany assets
 
594,094

—

—

(594,094
)
—

Goodwill
 
—

16,400

—

—

16,400

Other assets
 
2,784

53,935

8,970

—

65,689

TOTAL ASSETS
 
$
1,359,609

$
1,830,424

$
137,332

$
(1,356,825
)
$
1,970,540

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
140,663

$
828

$
—

$
141,491

Customer deposits
 
—

41,510

—

—

41,510

Intercompany liabilities
 
—

590,943

3,151

(594,094
)
—

Other liabilities
 
—

111,585

5,437

—

117,022

Community development district obligations
 
—

11,789

—

—

11,789

Obligation for consolidated inventory not owned
 
—

14,794

—

—

14,794

Notes payable bank - homebuilding operations
 
—

181,800

—

—

181,800

Notes payable bank - financial services operations
 
—

—

93,163

—

93,163

Notes payable - other
 
—

9,362

—

—

9,362

Senior notes due 2021 - net
 
297,332

—

—

—

297,332

Senior notes due 2025 - net
 
246,311

—

—

—

246,311

TOTAL LIABILITIES
 
543,643

1,102,446

102,579

(594,094
)
1,154,574

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
815,966

727,978

34,753

(762,731
)
815,966

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,359,609

$
1,830,424

$
137,332

$
(1,356,825
)
$
1,970,540



CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$
—

$
131,522

$
20,181

$
—

$
151,703

Mortgage loans held for sale
 
—

—

171,580

—

171,580

Inventory
 
—

1,414,574

—

—

1,414,574

Property and equipment - net
 
—

25,815

1,001

—

26,816

Investment in joint venture arrangements
 
—

13,930

6,595

—

20,525

Deferred income tax asset
 
—

18,438

—

—

18,438

Investment in subsidiaries
 
722,508

—

—

(722,508
)
—

Intercompany assets
 
650,599

—

—

(650,599
)
—

Other assets
 
3,154

48,430

9,551

—

61,135

TOTAL ASSETS
 
$
1,376,261

$
1,652,709

$
208,908

$
(1,373,107
)
$
1,864,771

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
116,773

$
460

$
—

$
117,233

Customer deposits
 
—

26,378

—

—

26,378

Intercompany liabilities
 
—

645,048

5,551

(650,599
)
—

Other liabilities
 
—

126,522

5,012

—

131,534

Community development district obligations
 
—

13,049

—

—

13,049

Obligation for consolidated inventory not owned
 
—

21,545

—

—

21,545

Notes payable bank - financial services operations
 
—

—

168,195

—

168,195

Notes payable - other
 
—

10,576

—

—

10,576

Convertible senior subordinated notes due 2018 - net
 
86,132

—

—

—

86,132

Senior notes due 2021 - net
 
296,780

—

—

—

296,780

Senior notes due 2025 - net
 
246,051

—

—

—

246,051

TOTAL LIABILITIES
 
628,963

959,891

179,218

(650,599
)
1,117,473

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
747,298

692,818

29,690

(722,508
)
747,298

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,376,261

$
1,652,709

$
208,908

$
(1,373,107
)
$
1,864,771




UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
5,750

$
(95,387
)
$
75,686

$
(5,750
)
$
(19,701
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Purchase of property and equipment
—

(4,449
)
(166
)
—

(4,615
)
Acquisition
—

(100,960
)
—

—

(100,960
)
Intercompany investing
(6,176
)
—

—

6,176

—

Investments in and advances to joint venture arrangements
—

(3,485
)
(836
)
—

(4,321
)
Return of capital from unconsolidated joint ventures
—

—

676

—

676

Net proceeds from the sale of mortgage servicing rights
—

—

5,111

—

5,111

Net cash (used in) provided by investing activities
(6,176
)
(108,894
)
4,785

6,176

(104,109
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Repayment of convertible senior subordinated notes due 2018
—

(65,941
)
—

—

(65,941
)
Proceeds from bank borrowings - homebuilding operations
—

353,900

—

—

353,900

Principal repayments of bank borrowings - homebuilding operations
—

(172,100
)
—

—

(172,100
)
Net repayments of bank borrowings - financial services operations
—

—

(75,032
)
—

(75,032
)
Principal repayment of notes payable - other and CDD bond obligations
—

(1,214
)
—

—

(1,214
)
Proceeds from exercise of stock options
426

—

—

—

426

Intercompany financing
—

8,862

(2,686
)
(6,176
)
—

Dividends paid
—

—

(5,750
)
5,750

—

Debt issue costs
—

(75
)
(40
)
—

(115
)
Net cash provided by (used in) financing activities
426

123,432

(83,508
)
(426
)
39,924

 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
—

(80,849
)
(3,037
)
—

(83,886
)
Cash, cash equivalents and restricted cash balance at beginning of period
—

131,522

20,181

—

151,703

Cash, cash equivalents and restricted cash balance at end of period
$
—

$
50,673

$
17,144

$
—

$
67,817


 
Six Months Ended June 30, 2017
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
5,500

$
(120,894
)
$
81,574

$
(5,500
)
$
(39,320
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Purchase of property and equipment
—

(1,785
)
(87
)
—

(1,872
)
Intercompany Investing
(7,854
)
—

—

7,854

—

Investments in and advances to joint venture arrangements
—

(2,128
)
(3,679
)
—

(5,807
)
Return of capital from unconsolidated joint ventures
—

—

1,078

—

1,078

Net proceeds from the sale of mortgage servicing rights
—

—

7,558

—

7,558

Net cash (used in) provided by investing activities
(7,854
)
(3,913
)
4,870

7,854

957

 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
—

289,400

—

—

289,400

Principal repayments of bank borrowings - homebuilding operations
—

(191,700
)
—

—

(191,700
)
Net repayments of bank borrowings - financial services operations
—

—

(63,377
)
—

(63,377
)
Proceeds from notes payable - other and CDD bond obligations
—

(2,752
)
—

—

(2,752
)
Intercompany financing
—

15,027

(7,173
)
(7,854
)
—

Dividends paid
(2,438
)
—

(5,500
)
5,500

(2,438
)
Debt issue costs
—

—

(63
)
—

(63
)
Proceeds from exercise of stock options
4,792

—

—

—

4,792

Net cash provided by (used in) financing activities
2,354

109,975

(76,113
)
(2,354
)
33,862

 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents and restricted cash
—

(14,832
)
10,331

—

(4,501
)
Cash, cash equivalents and restricted cash balance at beginning of period
—

20,927

13,514

—

34,441

Cash, cash equivalents and restricted cash balance at end of period
$
—

$
6,095

$
23,845

$
—

$
29,940