XML 25 R22.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Supplemental Guarantor Information
12 Months Ended
Dec. 31, 2019
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. See Note 11 for a description of our 2028 Senior Notes issued on January 22, 2020 which have the same Guarantor Subsidiaries as our 2025 Senior Notes.
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 December 31, 2019, 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.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
Year Ended December 31, 2019
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
2,444,967

$
55,323

$
—

$
2,500,290

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

2,005,861

—

—

2,005,861

Impairment of inventory and investment in joint venture arrangements
 
—

5,002

—

—

5,002

General and administrative
 
—

119,153

28,801

—

147,954

Selling
 
—

154,384

—

—

154,384

Equity in income from joint venture arrangements
 
—

—

(311
)
—

(311
)
Interest
 
—

17,724

3,651

—

21,375

Total costs and expenses
 
—

2,302,124

32,141

—

2,334,265

 
 
 
 
 
 
 
Income before income taxes
 
—

142,843

23,182

—

166,025

 
 
 
 
 
 
 
Provision for income taxes
 
—

33,919

4,519

—

38,438

 
 
 
 
 
 
 
Equity in subsidiaries
 
127,587

—

—

(127,587
)
—

 
 
 
 
 
 
 
Net income
 
$
127,587

$
108,924

$
18,663

$
(127,587
)
$
127,587

CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
Year Ended December 31, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
2,234,086

$
52,196

$
—

$
2,286,282

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

1,836,704

—

—

1,836,704

Impairment of inventory and investment in joint venture arrangements
 
—

5,809

—

—

5,809

  Acquisition related expenses
 
—

1,700

—

—

1,700

General and administrative
 
—

112,225

25,554

—

137,779

Selling
 
—

142,829

—

—

142,829

Equity in income from joint venture arrangements
 
—

—

(312
)
—

(312
)
Interest
 
—

17,215

3,269

—

20,484

Total costs and expenses
 
—

2,116,482

28,511

—

2,144,993

 
 
 
 
 
 
 
Income before income taxes
 
—

117,604

23,685

—

141,289

 
 
 
 
 
 
 
Provision for income taxes
 
—

28,545

5,081

—

33,626

 
 
 
 
 
 
 
Equity in subsidiaries
 
107,663

—

—

(107,663
)
—

 
 
 
 
 
 
 
Net income
 
$
107,663

$
89,059

$
18,604

$
(107,663
)
$
107,663


 
 
Year Ended December 31, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
1,912,278

$
49,693

$
—

$
1,961,971

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

1,561,022

—

—

1,561,022

Impairment of inventory and investment in joint venture arrangements
 
—

7,681

—

—

7,681

General and administrative
 
—

103,094

23,188

—

126,282

Selling
 
—

128,327

—

—

128,327

Equity in income from joint venture arrangements
 
—

—

(539
)
—

(539
)
Interest
 
—

16,117

2,757

—

18,874

Total costs and expenses
 
—

1,816,241

25,406

—

1,841,647

 
 
 
 
 
 
 
Income before income taxes
 
—

96,037

24,287

—

120,324

 
 
 
 
 
 
 
Provision for income taxes
 
—

40,570

7,673

—

48,243

 
 
 
 
 
 
 
Equity in subsidiaries
 
72,081

—

—

(72,081
)
—

 
 
 
 
 
 
 
Net income
 
$
72,081

$
55,467

$
16,614

$
(72,081
)
$
72,081

 
 
 
 
 
 
 
Preferred dividends
 
3,656

—

—

—

3,656

Excess of fair value over book value of preferred shares redeemed
 
2,257

—

—

—

2,257

 
 
 
 
 
 
 
Net income available to common shareholders
 
$
66,168

$
55,467

$
16,614

$
(72,081
)
$
66,168




CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2019
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$
—

$
219

$
11,589

$
(5,725
)
$
6,083

Mortgage loans held for sale
 
—

—

155,244

—

155,244

Inventory
 
—

1,769,507

—

—

1,769,507

Property and equipment - net
 
—

21,372

746

—

22,118

Investment in joint venture arrangements
 
—

35,391

2,494

—

37,885

Operating lease right-of-use assets
 
—

15,689

2,726

—

18,415

Investment in subsidiaries
 
928,942

—

—

(928,942
)
—

Deferred income taxes, net of valuation allowances
 
—

9,631

—

—

9,631

Intercompany assets
 
619,204

—

—

(619,204
)
—

Goodwill
 
—

16,400

—

—

16,400

Other assets
 
1,411

56,134

12,766

—

70,311

TOTAL ASSETS
 
$
1,549,557

$
1,924,343

$
185,565

$
(1,553,871
)
$
2,105,594

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
130,136

$
615

$
(5,725
)
$
125,026

Customer deposits
 
—

34,462

—

—

34,462

Intercompany liabilities
 
—

618,946

258

(619,204
)
—

Operating lease liabilities
 
—

15,691

2,724

—

18,415

Other liabilities
 
—

141,015

6,922

—

147,937

Community development district obligations
 
—

13,531

—

—

13,531

Obligation for consolidated inventory not owned
 
—

7,934

—

—

7,934

Notes payable bank - homebuilding operations
 
—

66,000

—

—

66,000

Notes payable bank - financial services operations
 
—

—

136,904

—

136,904

Notes payable - other
 
—

5,828

—

—

5,828

Senior notes due 2021 - net
 
298,988

—

—

—

298,988

Senior notes due 2025 - net
 
247,092

—

—

—

247,092

TOTAL LIABILITIES
 
546,080

1,033,543

147,423

(624,929
)
1,102,117

 
 
 
 
 
 
 
Shareholders’ equity
 
1,003,477

890,800

38,142

(928,942
)
1,003,477

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,549,557

$
1,924,343

$
185,565

$
(1,553,871
)
$
2,105,594


CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$
—

$
5,554

$
15,975

$
—

$
21,529

Mortgage loans held for sale
 
—

—

169,651

—

169,651

Inventory
 
—

1,674,460

—

—

1,674,460

Property and equipment - net
 
—

28,485

910

—

29,395

Investment in joint venture arrangements
 
—

33,297

2,573

—

35,870

Investment in subsidiaries
 
817,986

—

—

(817,986
)
—

Deferred income tax asset
 
—

13,482

—

—

13,482

Intercompany assets
 
579,447

—

—

(579,447
)
—

Goodwill
 
—

16,400

—

—

16,400

Other assets
 
2,325

47,738

10,731

—

60,794

TOTAL ASSETS
 
$
1,399,758

$
1,819,416

$
199,840

$
(1,397,433
)
$
2,021,581

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
131,089

$
422

$
—

$
131,511

Customer deposits
 
—

32,055

—

—

32,055

Intercompany liabilities
 
—

578,498

949

(579,447
)
—

Other liabilities
 
—

140,860

9,191

—

150,051

Community development district obligations
 
—

12,392

—

—

12,392

Obligation for consolidated inventory not owned
 
—

19,308

—

—

19,308

Notes payable bank - homebuilding operations
 
—

117,400

—

—

117,400

Notes payable bank - financial services operations
 
—

—

153,168

—

153,168

Notes payable - other
 
—

5,938

—

—

5,938

Senior notes due 2021 - net
 
297,884

—

—

—

297,884

Senior notes due 2025 - net
 
246,571

—

—

—

246,571

TOTAL LIABILITIES
 
544,455

1,037,540

163,730

(579,447
)
1,166,278

 
 
 
 
 
 
 
Shareholders’ equity
 
855,303

781,876

36,110

(817,986
)
855,303

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,399,758

$
1,819,416

$
199,840

$
(1,397,433
)
$
2,021,581



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2019
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
16,630

$
36,830

$
28,801

$
(16,630
)
$
65,631

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 
—

(4,264
)
(262
)
—

(4,526
)
Intercompany investing
 
(31,124
)
—

—

31,124

—

Investments in and advances to joint venture arrangements
 
—

(30,036
)
(152
)
—

(30,188
)
Proceeds from the sale of property
 
—

6,308

—

—

6,308

Return of capital from joint venture arrangements
 
—

—

812

—

812

Net cash (used in) provided by investing activities
 
(31,124
)
(27,992
)
398

31,124

(27,594
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
 
—

696,500

—

—

696,500

Repayment of bank borrowings - homebuilding operations
 
—

(747,900
)
—

—

(747,900
)
Net repayment of bank borrowings - financial services operations
 
—

—

(16,264
)
—

(16,264
)
Principal repayments of notes payable - other and CDD bond obligations
 
—

(110
)
—

—

(110
)
Dividends paid
 
—

—

(16,630
)
16,630

—

Repurchase of common shares
 
(5,150
)
—

—

—

(5,150
)
Intercompany financing
 
—

37,337

(488
)
(36,849
)
—

Debt issue costs
 
—

—

(203
)
—

(203
)
Proceeds from exercise of stock options
 
19,644

—

—

—

19,644

Net cash provided by (used in) financing activities
 
14,494

(14,173
)
(33,585
)
(20,219
)
(53,483
)
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
 
—

(5,335
)
(4,386
)
(5,725
)
(15,446
)
Cash, cash equivalents and restricted cash balance at beginning of period
 
—

5,554

15,975

—

21,529

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

$
219

$
11,589

$
(5,725
)
$
6,083

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities 
 
$
12,185

$
(25,882
)
$
23,290

$
(12,185
)
$
(2,592
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 
—

(7,896
)
(245
)
—

(8,141
)
Acquisition
 
—

(100,960
)
—

—

(100,960
)
Intercompany investing
 
12,986

—

—

(12,986
)
—

Investments in and advances to joint venture arrangements
 
—

(30,588
)
(1,279
)
—

(31,867
)
Return of capital from joint venture arrangements
 
—

—

676

—

676

Proceeds from the sale of mortgage servicing rights
 




6,335



6,335

Net cash provided by (used in) investing activities
 
12,986

(139,444
)
5,487

(12,986
)
(133,957
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repayment of convertible senior subordinated notes
 
—

(65,941
)
—

—

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

666,600

—

—

666,600

Repayment of bank borrowings - homebuilding operations
 
—

(549,200
)
—

—

(549,200
)
Net proceeds from bank borrowings - financial services operations
 
—

—

(15,027
)
—

(15,027
)
Principal repayments of notes payable - other and CDD bond obligations
 
—

(4,638
)
—

—

(4,638
)
Dividends paid
 
—

—

(12,185
)
12,185

—

Repurchase of common shares
 
(25,709
)
—

—

—

(25,709
)
Intercompany financing
 
—

(7,388
)
(5,598
)
12,986

—

Debt issue costs
 
—

(75
)
(173
)
—

(248
)
Proceeds from exercise of stock options
 
538

—

—

—

538

Net cash (used in) provided by financing activities
 
(25,171
)
39,358

(32,983
)
25,171

6,375

 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
 
—

(125,968
)
(4,206
)
—

(130,174
)
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
 
$
—

$
5,554

$
15,975

$
—

$
21,529



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
15,581

$
(63,922
)
$
10,738

$
(15,581
)
$
(53,184
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 
—

(8,535
)
(264
)
—

(8,799
)
Investments in and advances to joint venture arrangements
 
—

(6,117
)
(5,971
)
—

(12,088
)
Return of capital from joint venture arrangements
 
—

—

3,518

—

3,518

Intercompany investing
 
27,270

—

—

(27,270
)
—

Proceeds from the sale of mortgage servicing rights
 
—

—

8,212

—

8,212

Net cash provided by (used in) investing activities
 
27,270

(14,652
)
5,495

(27,270
)
(9,157
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Proceeds from issuance of senior notes
 
—

250,000

—

—

250,000

Redemption of preferred shares
 
(50,420
)
—

—

—

(50,420
)
Proceeds from bank borrowings - homebuilding operations
 
—

398,300

—

—

398,300

Repayment of bank borrowings - homebuilding operations
 
—

(438,600
)
—

—

(438,600
)
Net proceeds from bank borrowings - financial services operations
 
—

—

15,300

—

15,300

Principal repayments of note payable - other and CDD bond obligations
 
—

4,161

—

—

4,161

Dividends paid
 
(3,656
)
—

(15,581
)
15,581

(3,656
)
Intercompany financing
 
—

(18,143
)
(9,127
)
27,270

—

Debt issue costs
 
—

(6,549
)
(158
)
—

(6,707
)
Proceeds from exercise of stock options
 
11,225

—

—

—

11,225

Net cash (used in) provided by financing activities
 
(42,851
)
189,169

(9,566
)
42,851

179,603

 
 
 
 
 
 
 
Net increase in cash, cash equivalents and restricted cash
 
—

110,595

6,667

—

117,262

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
 
$
—

$
131,522

$
20,181

$
—

$
151,703