QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________________ |
Ohio | 31-1210837 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Trading Symbol(s) | Name of each exchange on which registered | |||||||
MHO | New York Stock Exchange |
Yes | No | ☐ |
Yes | No | ☐ |
Large accelerated filer | ☒ | Accelerated filer | ||||||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||||||||
Emerging growth company | ☐ | |||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. q |
Yes | ☐ | No |
M/I HOMES, INC. | |||||||||||
FORM 10-Q | |||||||||||
TABLE OF CONTENTS | |||||||||||
PART 1. | FINANCIAL INFORMATION | ||||||||||
Item 1. | M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements | ||||||||||
Unaudited Condensed Consolidated Balance Sheets at | |||||||||||
Unaudited Condensed Consolidated Statements of Income for the Three and | |||||||||||
Unaudited Condensed Consolidated Statement of Shareholders’ Equity for the | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows for the | |||||||||||
Notes to Unaudited Condensed Consolidated Financial Statements | |||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | ||||||||||
Item 4. | Controls and Procedures | ||||||||||
PART II. | OTHER INFORMATION | ||||||||||
Item 1. | Legal Proceedings | ||||||||||
Item 1A. | Risk Factors | ||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||||
Item 3. | Defaults Upon Senior Securities | ||||||||||
Item 4. | Mine Safety Disclosures | ||||||||||
Item 5. | Other Information | ||||||||||
Item 6. | Exhibits | ||||||||||
Signatures | |||||||||||
(Dollars in thousands, except par values) | June 30, 2022 | December 31, 2021 | ||||||||||||
(unaudited) | ||||||||||||||
ASSETS: | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 188,755 | $ | 236,368 | ||||||||||
Mortgage loans held for sale | 194,450 | 275,655 | ||||||||||||
Inventory | 2,816,265 | 2,452,434 | ||||||||||||
Property and equipment - net | 36,150 | 37,648 | ||||||||||||
Investment in joint venture arrangements | 55,625 | 57,121 | ||||||||||||
Operating lease right-of-use assets | 52,328 | 50,950 | ||||||||||||
Deferred income tax asset | 10,251 | 10,251 | ||||||||||||
Goodwill | 16,400 | 16,400 | ||||||||||||
Other assets | 123,100 | 103,026 | ||||||||||||
TOTAL ASSETS | $ | 3,493,324 | $ | 3,239,853 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
LIABILITIES: | ||||||||||||||
Accounts payable | $ | 329,384 | $ | 244,505 | ||||||||||
Customer deposits | 135,781 | 107,864 | ||||||||||||
Operating lease liabilities | 53,058 | 51,497 | ||||||||||||
Other liabilities | 227,233 | 226,969 | ||||||||||||
Community development district obligations | 33,217 | 20,089 | ||||||||||||
Obligation for consolidated inventory not owned | 8,954 | 2,768 | ||||||||||||
Notes payable bank - financial services operations | 194,602 | 266,160 | ||||||||||||
Notes payable - other | 1,001 | 4,549 | ||||||||||||
Senior notes due 2028 - net | 395,718 | 395,331 | ||||||||||||
Senior notes due 2030 - net | 296,109 | 295,937 | ||||||||||||
TOTAL LIABILITIES | $ | 1,675,057 | $ | 1,615,669 | ||||||||||
— | — | |||||||||||||
SHAREHOLDERS’ EQUITY: | ||||||||||||||
Common shares - $0.01 par value; authorized 58,000,000 shares at both June 30, 2022 and December 31, 2021; issued 30,137,141 shares at both June 30, 2022 and December 31, 2021 | $ | 301 | $ | 301 | ||||||||||
Additional paid-in capital | 347,923 | 347,452 | ||||||||||||
Retained earnings | 1,573,998 | 1,345,321 | ||||||||||||
Treasury shares - at cost - 2,376,558 and 1,637,511 shares at June 30, 2022 and December 31, 2021, respectively | (103,955) | (68,890) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | 1,818,267 | $ | 1,624,184 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,493,324 | $ | 3,239,853 |
(Dollars in thousands, except par values) | September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | ||||||||
ASSETS: | ||||||||
Cash, cash equivalents and restricted cash | $ | 103,636 | $ | 34,441 | ||||
Mortgage loans held for sale | 91,987 | 154,020 | ||||||
Inventory | 1,455,809 | 1,215,934 | ||||||
Property and equipment - net | 25,320 | 22,299 | ||||||
Investment in unconsolidated joint ventures | 22,981 | 28,016 | ||||||
Deferred income taxes | 29,569 | 30,875 | ||||||
Other assets | 55,393 | 62,926 | ||||||
TOTAL ASSETS | $ | 1,784,695 | $ | 1,548,511 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
LIABILITIES: | ||||||||
Accounts payable | $ | 120,598 | $ | 103,212 | ||||
Customer deposits | 30,583 | 22,156 | ||||||
Other liabilities | 108,870 | 123,162 | ||||||
Preferred shares subject to redemption | 50,420 | — | ||||||
Community development district obligations | 5,298 | 476 | ||||||
Obligation for consolidated inventory not owned | 22,203 | 7,528 | ||||||
Notes payable bank - homebuilding operations | — | 40,300 | ||||||
Notes payable bank - financial services operations | 91,275 | 152,895 | ||||||
Notes payable - other | 4,057 | 6,415 | ||||||
Convertible senior subordinated notes due 2017 - net | — | 57,093 | ||||||
Convertible senior subordinated notes due 2018 - net | 85,955 | 85,423 | ||||||
Senior notes due 2021 - net | 296,505 | 295,677 | ||||||
Senior notes due 2025 - net | 245,958 | — | ||||||
TOTAL LIABILITIES | $ | 1,061,722 | $ | 894,337 | ||||
Commitments and contingencies (Note 6) | — | — | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 shares issued at both September 30, 2017 and December 31, 2016; 2,000 shares outstanding as of December 31, 2016 (excluding the 2,000 shares subject to redemption at September 30, 2017) | $ | — | $ | 48,163 | ||||
Common shares - $.01 par value; authorized 58,000,000 shares at both September 30, 2017 and December 31, 2016; issued 29,508,626 and 27,092,723 shares at September 30, 2017 and December 31, 2016, respectively | 295 | 271 | ||||||
Additional paid-in capital | 304,715 | 246,549 | ||||||
Retained earnings | 457,447 | 407,161 | ||||||
Treasury shares - at cost - 1,987,994 and 2,415,290 shares at September 30, 2017 and December 31, 2016, respectively | (39,484 | ) | (47,970 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | $ | 722,973 | $ | 654,174 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,784,695 | $ | 1,548,511 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue | $ | 1,040,654 | $ | 961,040 | $ | 1,901,465 | $ | 1,789,816 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Land and housing | 756,367 | 719,672 | 1,404,069 | 1,346,257 | |||||||||||||||||||
General and administrative | 55,216 | 49,078 | 103,999 | 94,283 | |||||||||||||||||||
Selling | 46,206 | 50,576 | 87,627 | 96,265 | |||||||||||||||||||
Other income | (1) | (35) | (17) | (195) | |||||||||||||||||||
Interest expense | 693 | 452 | 1,364 | 1,628 | |||||||||||||||||||
Total costs and expenses | $ | 858,481 | $ | 819,743 | $ | 1,597,042 | $ | 1,538,238 | |||||||||||||||
Income before income taxes | 182,173 | 141,297 | 304,423 | 251,578 | |||||||||||||||||||
Provision for income taxes | 45,335 | 33,690 | 75,746 | 59,105 | |||||||||||||||||||
Net income | $ | 136,838 | $ | 107,607 | $ | 228,677 | $ | 192,473 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 4.88 | $ | 3.68 | $ | 8.10 | $ | 6.60 | |||||||||||||||
Diluted | $ | 4.79 | $ | 3.58 | $ | 7.93 | $ | 6.43 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 28,041 | 29,271 | 28,231 | 29,144 | |||||||||||||||||||
Diluted | 28,590 | 30,093 | 28,826 | 29,935 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 476,423 | $ | 442,464 | $ | 1,340,269 | $ | 1,168,081 | |||||||
Costs and expenses: | |||||||||||||||
Land and housing | 374,673 | 363,635 | 1,062,552 | 943,515 | |||||||||||
General and administrative | 31,337 | 29,160 | 89,209 | 78,249 | |||||||||||
Selling | 31,136 | 27,663 | 88,666 | 75,462 | |||||||||||
Equity in income of unconsolidated joint ventures | (71 | ) | (24 | ) | (198 | ) | (413 | ) | |||||||
Interest | 4,675 | 3,587 | 13,847 | 13,160 | |||||||||||
Total costs and expenses | 441,750 | 424,021 | 1,254,076 | 1,109,973 | |||||||||||
Income before income taxes | 34,673 | 18,443 | 86,193 | 58,108 | |||||||||||
Provision for income taxes | 12,346 | 7,501 | 29,994 | 22,061 | |||||||||||
Net income | 22,327 | 10,942 | 56,199 | 36,047 | |||||||||||
Preferred dividends | 1,218 | 1,218 | 3,656 | 3,656 | |||||||||||
Excess of fair value over book value of preferred shares subject to redemption | 2,257 | — | 2,257 | — | |||||||||||
Net income to common shareholders | $ | 18,852 | $ | 9,724 | $ | 50,286 | $ | 32,391 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.74 | $ | 0.39 | $ | 2.00 | $ | 1.31 | |||||||
Diluted | $ | 0.64 | $ | 0.35 | $ | 1.73 | $ | 1.17 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 25,581 | 24,669 | 25,106 | 24,665 | |||||||||||
Diluted | 30,675 | 30,139 | 30,539 | 30,093 |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Common Shares | |||||||||||||||||||||||||||||||||||
Shares Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 28,288,783 | $ | 301 | $ | 346,291 | $ | 1,437,160 | $ | (80,063) | $ | 1,703,689 | ||||||||||||||||||||||||
Net income | — | — | — | 136,838 | — | 136,838 | |||||||||||||||||||||||||||||
Repurchases of common shares | (550,000) | — | — | — | (24,842) | (24,842) | |||||||||||||||||||||||||||||
Stock options exercised | 21,800 | — | (386) | — | 950 | 564 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 2,018 | — | — | 2,018 | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 27,760,583 | $ | 301 | $ | 347,923 | $ | 1,573,998 | $ | (103,955) | $ | 1,818,267 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||
Preferred Shares | Common Shares | ||||||||||||||||||||||||||||
Shares Outstanding | Shares Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Total Shareholders’ Equity | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Amount | |||||||||||||||||||||||||||
Balance at December 31, 2016 | 2,000 | $ | 48,163 | 24,677,433 | $ | 271 | $ | 246,549 | $ | 407,161 | $ | (47,970 | ) | $ | 654,174 | ||||||||||||||
Net income | — | — | — | — | — | 56,199 | — | 56,199 | |||||||||||||||||||||
Fair value over carrying value of preferred shares subject to redemption | — | 2,257 | — | — | — | (2,257 | ) | — | — | ||||||||||||||||||||
Dividends declared to preferred shareholders | — | — | — | — | — | (3,656 | ) | — | (3,656 | ) | |||||||||||||||||||
Common share issuance for conversion of convertible notes | — | — | 2,415,903 | 24 | 57,476 | — | — | 57,500 | |||||||||||||||||||||
Reclassification of preferred shares subject to redemption | (2,000 | ) | (50,420 | ) | — | — | — | — | (50,420 | ) | |||||||||||||||||||
Stock options exercised | — | — | 342,661 | — | (2,014 | ) | — | 6,805 | 4,791 | ||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 4,034 | — | — | 4,034 | |||||||||||||||||||||
Deferral of executive and director compensation | — | — | — | — | 351 | — | — | 351 | |||||||||||||||||||||
Executive and director deferred compensation distributions | — | — | 84,635 | — | (1,681 | ) | — | 1,681 | — | ||||||||||||||||||||
Balance at September 30, 2017 | — | $ | — | 27,520,632 | $ | 295 | $ | 304,715 | $ | 457,447 | $ | (39,484 | ) | $ | 722,973 |
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Common Shares | |||||||||||||||||||||||||||||||||||
Shares Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 28,499,630 | $ | 301 | $ | 347,452 | $ | 1,345,321 | $ | (68,890) | $ | 1,624,184 | ||||||||||||||||||||||||
Net income | — | — | — | 228,677 | — | 228,677 | |||||||||||||||||||||||||||||
Stock options exercised | 30,400 | — | (550) | — | 1,320 | 770 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 3,849 | — | — | 3,849 | |||||||||||||||||||||||||||||
Repurchase of common shares | (860,000) | — | — | — | (40,235) | (40,235) | |||||||||||||||||||||||||||||
Deferral of executive and director compensation | — | — | 1,022 | — | — | 1,022 | |||||||||||||||||||||||||||||
Executive and director deferred compensation distributions | 90,553 | — | (3,850) | — | 3,850 | — | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 27,760,583 | $ | 301 | $ | 347,923 | $ | 1,573,998 | $ | (103,955) | $ | 1,818,267 |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Common Shares | |||||||||||||||||||||||||||||||||||
Shares Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 29,185,630 | $ | 301 | $ | 340,696 | $ | 1,033,319 | $ | (20,894) | $ | 1,353,422 | ||||||||||||||||||||||||
Net income | — | — | — | 107,607 | — | 107,607 | |||||||||||||||||||||||||||||
Stock options exercised | 132,500 | — | 464 | — | 2,910 | 3,374 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 2,141 | — | — | 2,141 | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | 29,318,130 | $ | 301 | $ | 343,301 | $ | 1,140,926 | $ | (17,984) | $ | 1,466,544 | ||||||||||||||||||||||||
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Common Shares | |||||||||||||||||||||||||||||||||||
Shares Outstanding | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 28,813,849 | $ | 301 | $ | 339,001 | $ | 948,453 | $ | (29,057) | $ | 1,258,698 | ||||||||||||||||||||||||
Net income | — | — | — | 192,473 | — | 192,473 | |||||||||||||||||||||||||||||
Stock options exercised | 428,100 | — | 1,230 | — | 9,400 | 10,630 | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 4,405 | — | — | 4,405 | |||||||||||||||||||||||||||||
Deferral of executive and director compensation | — | — | 338 | — | — | 338 | |||||||||||||||||||||||||||||
Executive and director deferred compensation distributions | 76,181 | — | (1,673) | — | 1,673 | — | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | 29,318,130 | $ | 301 | $ | 343,301 | $ | 1,140,926 | $ | (17,984) | $ | 1,466,544 |
Six Months Ended June 30, | |||||||||||
(Dollars in thousands) | 2022 | 2021 | |||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 228,677 | $ | 192,473 | |||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Equity in income from joint venture arrangements | (17) | (195) | |||||||||
Mortgage loan originations | (996,040) | (1,088,033) | |||||||||
Proceeds from the sale of mortgage loans | 1,074,370 | 1,149,308 | |||||||||
Fair value adjustment of mortgage loans held for sale | 2,875 | 258 | |||||||||
Fair value adjustment of mortgage servicing rights | — | (162) | |||||||||
Capitalization of originated mortgage servicing rights | (5,810) | (9,784) | |||||||||
Amortization of mortgage servicing rights | 654 | 583 | |||||||||
Depreciation | 6,531 | 6,357 | |||||||||
Amortization of debt issue costs | 1,289 | 1,294 | |||||||||
Loss on sale of mortgage servicing rights | 418 | 177 | |||||||||
Stock-based compensation expense | 3,849 | 4,405 | |||||||||
Change in assets and liabilities: | |||||||||||
Inventory | (336,470) | (133,286) | |||||||||
Other assets | (11,079) | (3,277) | |||||||||
Accounts payable | 84,879 | 36,241 | |||||||||
Customer deposits | 27,917 | 37,104 | |||||||||
Accrued compensation | (13,397) | (11,882) | |||||||||
Other liabilities | 9,894 | (7,780) | |||||||||
Net cash provided by operating activities | 78,540 | 173,801 | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchase of property and equipment | (2,693) | (1,036) | |||||||||
Return of capital from joint venture arrangements | 2,046 | 1,050 | |||||||||
Investment in joint venture arrangements | (10,916) | (17,101) | |||||||||
Proceeds from sale of mortgage servicing rights | 100 | 4,324 | |||||||||
Net cash used in investing activities | (11,463) | (12,763) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from bank borrowings - homebuilding operations | 47,100 | — | |||||||||
Repayment of bank borrowings - homebuilding operations | (47,100) | — | |||||||||
Net repayments of bank borrowings - financial services operations | (71,558) | (58,515) | |||||||||
(Principal repayments of) proceeds from notes payable - other and community development district bond obligations | (3,547) | 54 | |||||||||
Repurchase of common shares | (40,235) | — | |||||||||
Debt issue costs | (120) | (2,211) | |||||||||
Proceeds from exercise of stock options | 770 | 10,630 | |||||||||
Net cash used in financing activities | (114,690) | (50,042) | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (47,613) | 110,996 | |||||||||
Cash, cash equivalents and restricted cash balance at beginning of period | 236,368 | 260,810 | |||||||||
Cash, cash equivalents and restricted cash balance at end of period | $ | 188,755 | $ | 371,806 | |||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the year for: | |||||||||||
Interest — net of amount capitalized | $ | (16) | $ | 420 | |||||||
Income taxes | $ | 71,702 | $ | 60,523 | |||||||
NON-CASH TRANSACTIONS DURING THE PERIOD: | |||||||||||
Community development district infrastructure | $ | 13,128 | $ | 8,611 | |||||||
Consolidated inventory not owned | $ | 6,186 | $ | 2,567 | |||||||
Distribution of single-family lots from joint venture arrangements | $ | 10,383 | $ | 18,086 | |||||||
Nine Months Ended September 30, | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 56,199 | $ | 36,047 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Equity in income of joint venture arrangements | (198 | ) | (413 | ) | |||
Mortgage loan originations | (732,587 | ) | (654,905 | ) | |||
Proceeds from the sale of mortgage loans | 798,946 | 687,420 | |||||
Fair value adjustment of mortgage loans held for sale | (4,326 | ) | (1,059 | ) | |||
Capitalization of originated mortgage servicing rights | (3,873 | ) | (4,350 | ) | |||
Amortization of mortgage servicing rights | 789 | 1,262 | |||||
Depreciation | 7,078 | 6,328 | |||||
Amortization of debt discount and debt issue costs | 2,632 | 2,552 | |||||
Stock-based compensation expense | 4,034 | 3,483 | |||||
Deferred income tax expense | 1,306 | 20,911 | |||||
Change in assets and liabilities: | |||||||
Inventory | (212,660 | ) | (96,510 | ) | |||
Other assets | 4,763 | (16,364 | ) | ||||
Accounts payable | 17,386 | 23,301 | |||||
Customer deposits | 8,427 | 6,872 | |||||
Accrued compensation | (9,341 | ) | (6,073 | ) | |||
Other liabilities | (4,600 | ) | 18,000 | ||||
Net cash (used in) provided by operating activities | (66,025 | ) | 26,502 | ||||
INVESTING ACTIVITIES: | |||||||
Purchase of property and equipment | (6,017 | ) | (11,619 | ) | |||
Return of capital from unconsolidated joint ventures | 1,833 | — | |||||
Investment in unconsolidated joint ventures | (8,439 | ) | (10,060 | ) | |||
Net proceeds from sale of mortgage servicing rights | 7,558 | — | |||||
Net cash used in investing activities | (5,065 | ) | (21,679 | ) | |||
FINANCING ACTIVITIES: | |||||||
Net proceeds from issuance of senior notes | 250,000 | — | |||||
Proceeds from bank borrowings - homebuilding operations | 366,500 | 276,800 | |||||
Repayment of bank borrowings - homebuilding operations | (406,800 | ) | (235,600 | ) | |||
Net repayment of bank borrowings - financial services operations | (61,620 | ) | (32,165 | ) | |||
(Principal repayment of) proceeds from notes payable - other and community development district bond obligations | (2,358 | ) | 125 | ||||
Dividends paid on preferred shares | (3,656 | ) | (3,656 | ) | |||
Debt issue costs | (6,572 | ) | (193 | ) | |||
Proceeds from exercise of stock options | 4,791 | 73 | |||||
Net cash provided by financing activities | 140,285 | 5,384 | |||||
Net increase in cash, cash equivalents and restricted cash | 69,195 | 10,207 | |||||
Cash, cash equivalents and restricted cash balance at beginning of period | 34,441 | 13,101 | |||||
Cash, cash equivalents and restricted cash balance at end of period | $ | 103,636 | $ | 23,308 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid during the year for: | |||||||
Interest — net of amount capitalized | $ | 15,386 | $ | 8,919 | |||
Income taxes | $ | 27,702 | $ | 2,073 | |||
NON-CASH TRANSACTIONS DURING THE PERIOD: | |||||||
Community development district infrastructure | $ | 4,822 | $ | (467 | ) | ||
Consolidated inventory not owned | $ | 14,675 | $ | (145 | ) | ||
Distribution of single-family lots from joint venture arrangements | $ | 11,839 | $ | 20,912 | |||
Common stock issued for conversion of convertible notes | $ | 57,500 | $ | — | |||
Reclassification of preferred shares subject to redemption | $ | 50,420 | $ | — | |||
(In thousands) | June 30, 2022 | December 31, 2021 | |||||||||
Single-family lots, land and land development costs | $ | 1,136,380 | $ | 1,125,738 | |||||||
Land held for sale | 10,524 | 4,312 | |||||||||
Homes under construction | 1,514,965 | 1,187,341 | |||||||||
Model homes and furnishings - at cost (less accumulated depreciation: June 30, 2022 - $11,977; December 31, 2021 - $12,023) | 56,050 | 59,268 | |||||||||
Community development district infrastructure | 33,217 | 20,089 | |||||||||
Land purchase deposits | 56,175 | 52,918 | |||||||||
Consolidated inventory not owned | 8,954 | 2,768 | |||||||||
Total inventory | $ | 2,816,265 | $ | 2,452,434 |
(In thousands) | September 30, 2017 | December 31, 2016 | |||||
Single-family lots, land and land development costs | $ | 663,170 | $ | 602,528 | |||
Land held for sale | 12,330 | 12,155 | |||||
Homes under construction | 645,816 | 494,664 | |||||
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2017 - $12,929; December 31, 2016 - $11,835) | 75,618 | 68,727 | |||||
Community development district infrastructure | 5,298 | 476 | |||||
Land purchase deposits | 31,374 | 29,856 | |||||
Consolidated inventory not owned | 22,203 | 7,528 | |||||
Total inventory | $ | 1,455,809 | $ | 1,215,934 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Capitalized interest, beginning of period | $ | 25,807 | $ | 22,119 | $ | 24,343 | $ | 21,329 | |||||||||||||||
Interest capitalized to inventory | 8,778 | 9,623 | 17,569 | 18,618 | |||||||||||||||||||
Capitalized interest charged to land and housing costs and expenses | (7,536) | (9,438) | (14,863) | (17,643) | |||||||||||||||||||
Capitalized interest, end of period | $ | 27,049 | $ | 22,304 | $ | 27,049 | $ | 22,304 | |||||||||||||||
Interest incurred | $ | 9,471 | $ | 10,075 | $ | 18,933 | $ | 20,246 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Capitalized interest, beginning of period | $ | 16,465 | $ | 16,818 | $ | 16,012 | $ | 16,740 | |||||||
Interest capitalized to inventory | 6,178 | 5,139 | 15,240 | 13,392 | |||||||||||
Capitalized interest charged to land and housing costs and expenses | (4,988 | ) | (4,963 | ) | (13,597 | ) | (13,138 | ) | |||||||
Capitalized interest, end of period | $ | 17,655 | $ | 16,994 | $ | 17,655 | $ | 16,994 | |||||||
Interest incurred | $ | 10,853 | $ | 8,726 | $ | 29,087 | $ | 26,552 |
Description of Financial Instrument (in thousands) | June 30, 2022 | December 31, 2021 | |||||||||
Whole loan contracts and related committed IRLCs | $ | 7,082 | $ | 782 | |||||||
Uncommitted IRLCs | 562,101 | 228,831 | |||||||||
FMBSs related to uncommitted IRLCs | 570,000 | 223,000 | |||||||||
Whole loan contracts and related mortgage loans held for sale | 12,875 | 3,785 | |||||||||
FMBSs related to mortgage loans held for sale | 188,000 | 251,000 | |||||||||
Mortgage loans held for sale covered by FMBSs | 184,620 | 263,088 |
Description of Financial Instrument (in thousands) | September 30, 2017 | December 31, 2016 | |||||
Best efforts contracts and related committed IRLCs | $ | 2,571 | $ | 6,607 | |||
Uncommitted IRLCs | 105,104 | 66,875 | |||||
FMBSs related to uncommitted IRLCs | 105,000 | 66,000 | |||||
Best efforts contracts and related mortgage loans held for sale | 10,423 | 125,348 | |||||
FMBSs related to mortgage loans held for sale | 81,000 | 33,000 | |||||
Mortgage loans held for sale covered by FMBSs | 81,244 | 32,870 |
Description of Financial Instrument (in thousands) | Fair Value Measurements September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Mortgage loans held for sale | $ | 91,987 | $ | — | $ | 91,987 | $ | — | ||||||||
Forward sales of mortgage-backed securities | 471 | — | 471 | — | ||||||||||||
Interest rate lock commitments | 366 | — | 366 | — | ||||||||||||
Best-efforts contracts | (60 | ) | — | (60 | ) | — | ||||||||||
Total | $ | 92,764 | $ | — | $ | 92,764 | $ | — |
Description of Financial Instrument (in thousands) | Fair Value Measurements December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Mortgage loans held for sale | $ | 154,020 | $ | — | $ | 154,020 | $ | — | ||||||||
Forward sales of mortgage-backed securities | 230 | — | 230 | — | ||||||||||||
Interest rate lock commitments | 250 | — | 250 | — | ||||||||||||
Best-efforts contracts | (90 | ) | — | (90 | ) | — | ||||||||||
Total | $ | 154,410 | $ | — | $ | 154,410 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
Description (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Mortgage loans held for sale | $ | 3,081 | $ | 6,682 | $ | (2,875) | $ | (258) | |||||||||||||||
Forward sales of mortgage-backed securities | (16,312) | (8,329) | (2,753) | 1,017 | |||||||||||||||||||
Interest rate lock commitments | 4,536 | 3,128 | (2,693) | 510 | |||||||||||||||||||
Whole loan contracts | (13) | (60) | 112 | 353 | |||||||||||||||||||
Total (loss) gain recognized | $ | (8,708) | $ | 1,421 | $ | (8,209) | $ | 1,622 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Description (in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Mortgage loans held for sale | $ | (64 | ) | $ | (1,127 | ) | $ | 4,326 | $ | 1,059 | |||||
Forward sales of mortgage-backed securities | (128 | ) | 1,443 | 241 | (245 | ) | |||||||||
Interest rate lock commitments | 22 | (531 | ) | 116 | 388 | ||||||||||
Best-efforts contracts | (41 | ) | 15 | 30 | 31 | ||||||||||
Total (loss) gain recognized | $ | (211 | ) | $ | (200 | ) | $ | 4,713 | $ | 1,233 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
June 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||
Description of Derivatives | Balance Sheet Location | Fair Value (in thousands) | Balance Sheet Location | Fair Value (in thousands) | ||||||||||||||||||||||
Forward sales of mortgage-backed securities | Other assets | $ | 1,725 | Other liabilities | $ | — | ||||||||||||||||||||
Interest rate lock commitments | Other assets | — | Other liabilities | 3,061 | ||||||||||||||||||||||
Whole loan contracts | Other assets | — | Other liabilities | 68 | ||||||||||||||||||||||
Total fair value measurements | $ | 1,725 | $ | 3,129 |
Asset Derivatives | Liability Derivatives | |||||||||||
September 30, 2017 | September 30, 2017 | |||||||||||
Description of Derivatives | Balance Sheet Location | Fair Value (in thousands) | Balance Sheet Location | Fair Value (in thousands) | ||||||||
Forward sales of mortgage-backed securities | Other assets | $ | 471 | Other liabilities | $ | — | ||||||
Interest rate lock commitments | Other assets | 366 | Other liabilities | — | ||||||||
Best-efforts contracts | Other assets | — | Other liabilities | 60 | ||||||||
Total fair value measurements | $ | 837 | $ | 60 |
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2016 | December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||
Description of Derivatives | Balance Sheet Location | Fair Value (in thousands) | Balance Sheet Location | Fair Value (in thousands) | Description of Derivatives | Balance Sheet Location | Fair Value (in thousands) | Balance Sheet Location | Fair Value (in thousands) | |||||||||||||||||||||||||||||
Forward sales of mortgage-backed securities | Other assets | $ | 230 | Other liabilities | $ | — | Forward sales of mortgage-backed securities | Other assets | $ | 4,477 | Other liabilities | $ | — | |||||||||||||||||||||||||
Interest rate lock commitments | Other assets | 250 | Other liabilities | — | Interest rate lock commitments | Other assets | — | Other liabilities | 487 | |||||||||||||||||||||||||||||
Best-efforts contracts | Other assets | — | Other liabilities | 90 | ||||||||||||||||||||||||||||||||||
Whole loan contracts | Whole loan contracts | Other assets | — | Other liabilities | 62 | |||||||||||||||||||||||||||||||||
Total fair value measurements | $ | 480 | $ | 90 | Total fair value measurements | $ | 4,477 | $ | 549 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(In thousands) | Fair Value Hierarchy | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | Level 1 | $ | 188,755 | $ | 188,755 | $ | 236,368 | $ | 236,368 | |||||||||||||||||
Mortgage loans held for sale | Level 2 | 194,450 | 194,450 | 275,655 | 275,655 | |||||||||||||||||||||
Forward sales of mortgage-backed securities | Level 2 | 1,725 | 1,725 | 4,477 | 4,477 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Notes payable - homebuilding operations | Level 2 | — | — | — | — | |||||||||||||||||||||
Notes payable - financial services operations | Level 2 | 194,602 | 194,602 | 266,160 | 266,160 | |||||||||||||||||||||
Notes payable - other | Level 2 | 1,001 | 973 | 4,549 | 5,015 | |||||||||||||||||||||
Senior notes due 2028 (a) | Level 2 | 400,000 | 340,500 | 400,000 | 414,000 | |||||||||||||||||||||
Senior notes due 2030 (a) | Level 2 | 300,000 | 223,875 | 300,000 | 294,375 | |||||||||||||||||||||
Interest rate lock commitments | Level 2 | 3,061 | 3,061 | 487 | 487 | |||||||||||||||||||||
Whole loan contracts for committed IRLCs and mortgage loans held for sale | Level 2 | 68 | 68 | 62 | 62 | |||||||||||||||||||||
September 30, 2017 | December 31, 2016 | |||||||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 103,636 | $ | 103,636 | $ | 34,441 | $ | 34,441 | ||||||||
Mortgage loans held for sale | 91,987 | 91,987 | 154,020 | 154,020 | ||||||||||||
Split dollar life insurance policies | 212 | 212 | 214 | 214 | ||||||||||||
Notes receivable | — | — | 763 | 687 | ||||||||||||
Commitments to extend real estate loans | 366 | 366 | 250 | 250 | ||||||||||||
Forward sales of mortgage-backed securities | 471 | 471 | 230 | 230 | ||||||||||||
Liabilities: | ||||||||||||||||
Notes payable - homebuilding operations | — | — | 40,300 | 40,300 | ||||||||||||
Notes payable - financial services operations | 91,275 | 91,275 | 152,895 | 152,895 | ||||||||||||
Notes payable - other | 4,057 | 3,867 | 6,415 | 5,999 | ||||||||||||
Convertible senior subordinated notes due 2017 (a) | — | — | 57,500 | 65,957 | ||||||||||||
Convertible senior subordinated notes due 2018 (a) | 86,250 | 86,897 | 86,250 | 88,105 | ||||||||||||
Senior notes due 2021 (a) | 300,000 | 313,125 | 300,000 | 314,250 | ||||||||||||
Senior notes due 2025 (a) | 250,000 | 255,000 | — | — | ||||||||||||
Best-efforts contracts for committed IRLCs and mortgage loans held for sale | 60 | 60 | 90 | 90 | ||||||||||||
Off-Balance Sheet Financial Instruments: | ||||||||||||||||
Letters of credit | — | 757 | — | 702 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Warranty reserves, beginning of period | $ | 29,472 | $ | 29,426 | $ | 29,728 | $ | 29,012 | ||||||||||||||||||
Warranty expense on homes delivered during the period | 5,546 | 5,586 | 10,106 | 10,412 | ||||||||||||||||||||||
Changes in estimates for pre-existing warranties | 907 | 248 | 1,178 | 611 | ||||||||||||||||||||||
Settlements made during the period | (5,955) | (5,380) | (11,042) | (10,155) | ||||||||||||||||||||||
Warranty reserves, end of period | $ | 29,970 | $ | 29,880 | $ | 29,970 | $ | 29,880 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Warranty reserves, beginning of period | $ | 30,303 | $ | 15,815 | $ | 27,732 | $ | 14,281 | |||||||
Warranty expense on homes delivered during the period | 2,882 | 2,755 | 8,094 | 7,276 | |||||||||||
Changes in estimates for pre-existing warranties | 92 | 526 | 1,154 | 563 | |||||||||||
Charges related to stucco-related claims (a) | — | 14,500 | 8,500 | 19,409 | |||||||||||
Settlements made during the period | (6,209 | ) | (5,658 | ) | (18,412 | ) | (13,591 | ) | |||||||
Warranty reserves, end of period | $ | 27,068 | $ | 27,938 | $ | 27,068 | $ | 27,938 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
NUMERATOR | |||||||||||||||||||||||
Net income | $ | 136,838 | $ | 107,607 | $ | 228,677 | $ | 192,473 | |||||||||||||||
DENOMINATOR | |||||||||||||||||||||||
Basic weighted average shares outstanding | 28,041 | 29,271 | 28,231 | 29,144 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock option awards | 246 | 512 | 287 | 487 | |||||||||||||||||||
Deferred compensation awards | 303 | 310 | 308 | 304 | |||||||||||||||||||
Diluted weighted average shares outstanding | 28,590 | 30,093 | 28,826 | 29,935 | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 4.88 | $ | 3.68 | $ | 8.10 | $ | 6.60 | |||||||||||||||
Diluted | $ | 4.79 | $ | 3.58 | $ | 7.93 | $ | 6.43 | |||||||||||||||
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share | 908 | 6 | 784 | 3 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(In thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
NUMERATOR | ||||||||||||||||
Net income | $ | 22,327 | $ | 10,942 | $ | 56,199 | $ | 36,047 | ||||||||
Preferred stock dividends | (1,218 | ) | (1,218 | ) | (3,656 | ) | (3,656 | ) | ||||||||
Excess of fair value over book value of preferred shares subject to redemption | (2,257 | ) | — | (2,257 | ) | — | ||||||||||
Net income to common shareholders | 18,852 | 9,724 | 50,286 | 32,391 | ||||||||||||
Interest on 3.25% convertible senior subordinated notes due 2017 | 324 | 378 | 1,106 | 1,152 | ||||||||||||
Interest on 3.00% convertible senior subordinated notes due 2018 | 530 | 510 | 1,586 | 1,554 | ||||||||||||
Diluted income available to common shareholders | $ | 19,706 | $ | 10,612 | $ | 52,978 | $ | 35,097 | ||||||||
DENOMINATOR | ||||||||||||||||
Basic weighted average shares outstanding | 25,581 | 24,669 | 25,106 | 24,665 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock option awards | 248 | 231 | 302 | 200 | ||||||||||||
Deferred compensation awards | 237 | 154 | 207 | 143 | ||||||||||||
3.25% convertible senior subordinated notes due 2017 | 1,940 | 2,416 | 2,255 | 2,416 | ||||||||||||
3.00% convertible senior subordinated notes due 2018 | 2,669 | 2,669 | 2,669 | 2,669 | ||||||||||||
Diluted weighted average shares outstanding - adjusted for assumed conversions | 30,675 | 30,139 | 30,539 | 30,093 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.74 | $ | 0.39 | $ | 2.00 | $ | 1.31 | ||||||||
Diluted | $ | 0.64 | $ | 0.35 | $ | 1.73 | $ | 1.17 | ||||||||
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share | — | 896 | 31 | 1,288 |
Northern | Southern | |||||||
Chicago, Illinois | Orlando, Florida | |||||||
Cincinnati, Ohio | Sarasota, Florida | |||||||
Columbus, Ohio | Tampa, Florida | |||||||
Indianapolis, Indiana | Austin, Texas | |||||||
Minneapolis/St. Paul, Minnesota | Dallas/Fort Worth, Texas | |||||||
Detroit, Michigan | Houston, Texas | |||||||
San Antonio, Texas | ||||||||
Charlotte, North Carolina | ||||||||
Raleigh, North Carolina | ||||||||
Nashville, Tennessee | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 472,814 | $ | 417,787 | $ | 826,600 | $ | 750,785 | |||||||||||||||||||||
Southern homebuilding | 548,466 | 514,618 | 1,031,380 | 980,747 | |||||||||||||||||||||||||
Financial services (a) | 19,374 | 28,635 | 43,485 | 58,284 | |||||||||||||||||||||||||
Total revenue | $ | 1,040,654 | $ | 961,040 | $ | 1,901,465 | $ | 1,789,816 | |||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 74,078 | $ | 61,982 | $ | 114,294 | $ | 100,966 | |||||||||||||||||||||
Southern homebuilding | 120,024 | 79,064 | 204,317 | 145,279 | |||||||||||||||||||||||||
Financial services (a) | 9,608 | 18,925 | 23,541 | 39,561 | |||||||||||||||||||||||||
Less: Corporate selling, general and administrative expense | (20,845) | (18,257) | (36,382) | (32,795) | |||||||||||||||||||||||||
Total operating income | $ | 182,865 | $ | 141,714 | $ | 305,770 | $ | 253,011 | |||||||||||||||||||||
Interest expense (income): | |||||||||||||||||||||||||||||
Northern homebuilding | $ | — | $ | — | $ | — | $ | 76 | |||||||||||||||||||||
Southern homebuilding | — | — | (2) | 157 | |||||||||||||||||||||||||
Financial services (a) | 941 | 949 | 1,819 | 1,892 | |||||||||||||||||||||||||
Corporate | (248) | (497) | (453) | (497) | |||||||||||||||||||||||||
Total interest expense | $ | 693 | $ | 452 | $ | 1,364 | $ | 1,628 | |||||||||||||||||||||
Other income | $ | (1) | $ | (35) | $ | (17) | $ | (195) | |||||||||||||||||||||
Income before income taxes | $ | 182,173 | $ | 141,297 | $ | 304,423 | $ | 251,578 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue: | |||||||||||||||
Midwest homebuilding | $ | 180,488 | $ | 166,928 | $ | 495,379 | $ | 438,016 | |||||||
Southern homebuilding | 176,502 | 143,315 | 504,647 | 414,974 | |||||||||||
Mid-Atlantic homebuilding | 107,670 | 121,659 | 302,305 | 284,527 | |||||||||||
Financial services (a) | 11,763 | 10,562 | 37,938 | 30,564 | |||||||||||
Total revenue | $ | 476,423 | $ | 442,464 | $ | 1,340,269 | $ | 1,168,081 | |||||||
Operating income: | |||||||||||||||
Midwest homebuilding | $ | 20,887 | $ | 20,628 | $ | 53,730 | $ | 48,943 | |||||||
Southern homebuilding (b) | 13,082 | (5,249 | ) | 26,503 | 8,380 | ||||||||||
Mid-Atlantic homebuilding | 9,969 | 11,359 | 26,810 | 22,827 | |||||||||||
Financial services (a) | 5,887 | 5,944 | 21,977 | 17,581 | |||||||||||
Less: Corporate selling, general and administrative expense | (10,548 | ) | (10,676 | ) | (29,178 | ) | (26,876 | ) | |||||||
Total operating income (b) | $ | 39,277 | $ | 22,006 | $ | 99,842 | $ | 70,855 | |||||||
Interest expense: | |||||||||||||||
Midwest homebuilding | $ | 1,319 | $ | 647 | $ | 3,559 | $ | 2,539 | |||||||
Southern homebuilding | 2,143 | 1,788 | 6,311 | 6,118 | |||||||||||
Mid-Atlantic homebuilding | 557 | 601 | 1,988 | 3,058 | |||||||||||
Financial services (a) | 656 | 551 | 1,989 | 1,445 | |||||||||||
Total interest expense | $ | 4,675 | $ | 3,587 | $ | 13,847 | $ | 13,160 | |||||||
Equity in income of joint venture arrangements | (71 | ) | (24 | ) | (198 | ) | (413 | ) | |||||||
Income before income taxes | $ | 34,673 | $ | 18,443 | $ | 86,193 | $ | 58,108 |
June 30, 2022 | |||||||||||||||||||||||
(In thousands) | Northern | Southern | Corporate, Financial Services and Unallocated | Total | |||||||||||||||||||
Deposits on real estate under option or contract | $ | 7,002 | $ | 49,173 | $ | — | $ | 56,175 | |||||||||||||||
Inventory (a) | 1,086,685 | 1,673,405 | — | 2,760,090 | |||||||||||||||||||
Investments in joint venture arrangements | — | 55,625 | — | 55,625 | |||||||||||||||||||
Other assets | 43,562 | 85,585 | (b) | 492,287 | 621,434 | ||||||||||||||||||
Total assets | $ | 1,137,249 | $ | 1,863,788 | $ | 492,287 | $ | 3,493,324 |
September 30, 2017 | |||||||||||||||||||
(In thousands) | Midwest | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total | ||||||||||||||
Deposits on real estate under option or contract | $ | 5,078 | $ | 20,094 | $ | 6,202 | $ | — | $ | 31,374 | |||||||||
Inventory (a) | 514,949 | 623,815 | 285,671 | — | 1,424,435 | ||||||||||||||
Investments in joint venture arrangements | 3,798 | 10,493 | 8,690 | — | 22,981 | ||||||||||||||
Other assets | 13,106 | 24,624 | (b) | 11,600 | 256,575 | 305,905 | |||||||||||||
Total assets | $ | 536,931 | $ | 679,026 | $ | 312,163 | $ | 256,575 | $ | 1,784,695 |
December 31, 2021 | |||||||||||||||||||||||
(In thousands) | Northern | Southern | Corporate, Financial Services and Unallocated | Total | |||||||||||||||||||
Deposits on real estate under option or contract | $ | 4,123 | $ | 48,795 | $ | — | $ | 52,918 | |||||||||||||||
Inventory (a) | 987,258 | 1,412,258 | — | 2,399,516 | |||||||||||||||||||
Investments in joint venture arrangements | — | 57,121 | — | 57,121 | |||||||||||||||||||
Other assets | 37,527 | 63,844 | (b) | 628,927 | 730,298 | ||||||||||||||||||
Total assets | $ | 1,028,908 | $ | 1,582,018 | $ | 628,927 | $ | 3,239,853 |
December 31, 2016 | |||||||||||||||||||
(In thousands) | Midwest | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total | ||||||||||||||
Deposits on real estate under option or contract | $ | 3,989 | $ | 22,607 | $ | 3,260 | $ | — | $ | 29,856 | |||||||||
Inventory (a) | 399,814 | 484,038 | 302,226 | — | 1,186,078 | ||||||||||||||
Investments in joint venture arrangements | 10,155 | 10,630 | 7,231 | — | 28,016 | ||||||||||||||
Other assets | 25,747 | 35,622 | (b) | 13,912 | 229,280 | 304,561 | |||||||||||||
Total assets | $ | 439,705 | $ | 552,897 | $ | 326,629 | $ | 229,280 | $ | 1,548,511 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Housing | $ | 1,017,906 | $ | 927,506 | $ | 1,851,069 | $ | 1,725,785 | ||||||||||||||||||
Land sales | 3,374 | 4,899 | 6,911 | 5,747 | ||||||||||||||||||||||
Financial services (a) | 19,374 | 28,635 | 43,485 | 58,284 | ||||||||||||||||||||||
Total revenue | $ | 1,040,654 | $ | 961,040 | $ | 1,901,465 | $ | 1,789,816 | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||
(In thousands) | M/I Homes, Inc. | Guarantor Subsidiaries | Unrestricted Subsidiaries | Eliminations | Consolidated | |||||||||||
Revenue | $ | — | $ | 464,660 | $ | 11,763 | $ | — | $ | 476,423 | ||||||
Costs and expenses: | ||||||||||||||||
Land and housing | — | 374,673 | — | — | 374,673 | |||||||||||
General and administrative | — | 25,263 | 6,074 | — | 31,337 | |||||||||||
Selling | — | 31,136 | — | — | 31,136 | |||||||||||
Equity in income of joint venture arrangements | — | — | (71 | ) | — | (71 | ) | |||||||||
Interest | — | 4,019 | 656 | — | 4,675 | |||||||||||
Total costs and expenses | — | 435,091 | 6,659 | — | 441,750 | |||||||||||
Income before income taxes | — | 29,569 | 5,104 | — | 34,673 | |||||||||||
Provision for income taxes | — | 10,672 | 1,674 | — | 12,346 | |||||||||||
Equity in subsidiaries | 22,327 | — | — | (22,327 | ) | — | ||||||||||
Net income | 22,327 | 18,897 | 3,430 | (22,327 | ) | 22,327 | ||||||||||
Preferred dividends | 1,218 | — | — | — | 1,218 | |||||||||||
Excess of fair value over book value of preferred shares subject to redemption | 2,257 | — | — | — | 2,257 | |||||||||||
Net income to common shareholders | $ | 18,852 | $ | 18,897 | $ | 3,430 | $ | (22,327 | ) | $ | 18,852 |
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 joint venture arrangements | — | — | (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 |
UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||
(In thousands) | M/I Homes, Inc. | Guarantor Subsidiaries | Unrestricted Subsidiaries | Eliminations | Consolidated | |||||||||||
Revenue | $ | — | $ | 1,302,331 | $ | 37,938 | $ | — | $ | 1,340,269 | ||||||
Costs and expenses: | ||||||||||||||||
Land and housing | — | 1,062,552 | — | — | 1,062,552 | |||||||||||
General and administrative | — | 72,638 | 16,571 | — | 89,209 | |||||||||||
Selling | — | 88,666 | — | — | 88,666 | |||||||||||
Equity in income of joint venture arrangements | — | — | (198 | ) | — | (198 | ) | |||||||||
Interest | — | 11,858 | 1,989 | — | 13,847 | |||||||||||
Total costs and expenses | — | 1,235,714 | 18,362 | — | 1,254,076 | |||||||||||
Income before income taxes | — | 66,617 | 19,576 | — | 86,193 | |||||||||||
Provision for income taxes | — | 23,407 | 6,587 | — | 29,994 | |||||||||||
Equity in subsidiaries | 56,199 | — | — | (56,199 | ) | — | ||||||||||
Net income | 56,199 | 43,210 | 12,989 | (56,199 | ) | 56,199 | ||||||||||
Preferred dividends | 3,656 | — | — | — | 3,656 | |||||||||||
Excess of fair value over book value of preferred shares subject to redemption | 2,257 | — | — | — | 2,257 | |||||||||||
Net income to common shareholders | $ | 50,286 | $ | 43,210 | $ | 12,989 | $ | (56,199 | ) | $ | 50,286 |
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 joint venture arrangements | — | — | (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 |
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
September 30, 2017 | ||||||||||||||||
(In thousands) | M/I Homes, Inc. | Guarantor Subsidiaries | Unrestricted Subsidiaries | Eliminations | Consolidated | |||||||||||
ASSETS: | ||||||||||||||||
Cash, cash equivalents and restricted cash | $ | — | $ | 82,504 | $ | 21,132 | $ | — | $ | 103,636 | ||||||
Mortgage loans held for sale | — | — | 91,987 | — | 91,987 | |||||||||||
Inventory | — | 1,455,809 | — | — | 1,455,809 | |||||||||||
Property and equipment - net | — | 24,325 | 995 | — | 25,320 | |||||||||||
Investment in joint venture arrangements | — | 15,764 | 7,217 | — | 22,981 | |||||||||||
Deferred income taxes, net of valuation allowances | — | 29,461 | 108 | — | 29,569 | |||||||||||
Investment in subsidiaries | 710,176 | — | — | (710,176 | ) | — | ||||||||||
Intercompany assets | 688,260 | — | — | (688,260 | ) | — | ||||||||||
Other assets | 3,375 | 42,473 | 9,545 | — | 55,393 | |||||||||||
TOTAL ASSETS | $ | 1,401,811 | $ | 1,650,336 | $ | 130,984 | $ | (1,398,436 | ) | $ | 1,784,695 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES: | ||||||||||||||||
Accounts payable | $ | — | $ | 120,049 | $ | 549 | $ | — | $ | 120,598 | ||||||
Customer deposits | — | 30,583 | — | — | 30,583 | |||||||||||
Intercompany liabilities | — | 683,308 | 4,952 | (688,260 | ) | — | ||||||||||
Other liabilities | — | 104,279 | 4,591 | — | 108,870 | |||||||||||
Preferred shares subject to redemption | 50,420 | — | — | — | 50,420 | |||||||||||
Community development district obligations | — | 5,298 | — | — | 5,298 | |||||||||||
Obligation for consolidated inventory not owned | — | 22,203 | — | — | 22,203 | |||||||||||
Notes payable bank - financial services operations | — | — | 91,275 | — | 91,275 | |||||||||||
Notes payable - other | — | 4,057 | — | — | 4,057 | |||||||||||
Convertible senior subordinated notes due 2018 - net | 85,955 | — | — | — | 85,955 | |||||||||||
Senior notes due 2021 - net | 296,505 | — | — | — | 296,505 | |||||||||||
Senior notes due 2025 - net | 245,958 | — | — | — | 245,958 | |||||||||||
TOTAL LIABILITIES | 678,838 | 969,777 | 101,367 | (688,260 | ) | 1,061,722 | ||||||||||
SHAREHOLDERS’ EQUITY | 722,973 | 680,559 | 29,617 | (710,176 | ) | 722,973 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,401,811 | $ | 1,650,336 | $ | 130,984 | $ | (1,398,436 | ) | $ | 1,784,695 |
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
(In thousands) | M/I Homes, Inc. | Guarantor Subsidiaries | Unrestricted Subsidiaries | Eliminations | Consolidated | |||||||||||
ASSETS: | ||||||||||||||||
Cash, cash equivalents and restricted cash | $ | — | $ | 20,927 | $ | 13,514 | $ | — | $ | 34,441 | ||||||
Mortgage loans held for sale | — | — | 154,020 | — | 154,020 | |||||||||||
Inventory | — | 1,215,934 | — | — | 1,215,934 | |||||||||||
Property and equipment - net | — | 21,242 | 1,057 | — | 22,299 | |||||||||||
Investment in joint venture arrangements | — | 12,537 | 15,479 | — | 28,016 | |||||||||||
Deferred income taxes, net of valuation allowances | — | 30,767 | 108 | — | 30,875 | |||||||||||
Investment in subsidiaries | 666,008 | — | — | (666,008 | ) | — | ||||||||||
Intercompany assets | 424,669 | — | — | (424,669 | ) | — | ||||||||||
Other assets | 1,690 | 43,809 | 17,427 | — | 62,926 | |||||||||||
TOTAL ASSETS | $ | 1,092,367 | $ | 1,345,216 | $ | 201,605 | $ | (1,090,677 | ) | $ | 1,548,511 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES: | ||||||||||||||||
Accounts payable | $ | — | $ | 102,663 | $ | 549 | $ | — | $ | 103,212 | ||||||
Customer deposits | — | 22,156 | — | — | 22,156 | |||||||||||
Intercompany liabilities | — | 411,196 | 13,473 | (424,669 | ) | — | ||||||||||
Other liabilities | — | 117,133 | 6,029 | — | 123,162 | |||||||||||
Community development district obligations | — | 476 | — | — | 476 | |||||||||||
Obligation for consolidated inventory not owned | — | 7,528 | — | — | 7,528 | |||||||||||
Notes payable bank - homebuilding operations | — | 40,300 | — | — | 40,300 | |||||||||||
Notes payable bank - financial services operations | — | — | 152,895 | — | 152,895 | |||||||||||
Notes payable - other | — | 6,415 | — | — | 6,415 | |||||||||||
Convertible senior subordinated notes due 2017 - net | 57,093 | — | — | — | 57,093 | |||||||||||
Convertible senior subordinated notes due 2018 - net | 85,423 | — | — | — | 85,423 | |||||||||||
Senior notes due 2021 - net | 295,677 | — | — | — | 295,677 | |||||||||||
TOTAL LIABILITIES | 438,193 | 707,867 | 172,946 | (424,669 | ) | 894,337 | ||||||||||
SHAREHOLDERS’ EQUITY | 654,174 | 637,349 | 28,659 | (666,008 | ) | 654,174 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,092,367 | $ | 1,345,216 | $ | 201,605 | $ | (1,090,677 | ) | $ | 1,548,511 |
UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||
(In thousands) | M/I Homes, Inc. | Guarantor Subsidiaries | Unrestricted Subsidiaries | Eliminations | Consolidated | ||||||||||
OPERATING ACTIVITIES: | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 12,031 | $ | (152,148 | ) | $ | 86,123 | $ | (12,031 | ) | $ | (66,025 | ) | ||
INVESTING ACTIVITIES: | |||||||||||||||
Purchase of property and equipment | — | (5,848 | ) | (169 | ) | — | (6,017 | ) | |||||||
Intercompany investing | (13,166 | ) | — | — | 13,166 | — | |||||||||
Investments in and advances to joint venture arrangements | — | (3,401 | ) | (5,038 | ) | — | (8,439 | ) | |||||||
Return of capital from unconsolidated joint ventures | — | — | 1,833 | — | 1,833 | ||||||||||
Net proceeds from the sale of mortgage servicing rights | — | — | 7,558 | — | 7,558 | ||||||||||
Net cash (used in) provided by investing activities | (13,166 | ) | (9,249 | ) | 4,184 | 13,166 | (5,065 | ) | |||||||
FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from issuance of senior notes | — | 250,000 | — | — | 250,000 | ||||||||||
Proceeds from bank borrowings - homebuilding operations | — | 366,500 | — | — | 366,500 | ||||||||||
Principal repayments of bank borrowings - homebuilding operations | — | (406,800 | ) | — | — | (406,800 | ) | ||||||||
Net repayments of bank borrowings - financial services operations | — | — | (61,620 | ) | — | (61,620 | ) | ||||||||
(Principal repayment of) proceeds from notes payable - other and CDD bond obligations | — | (2,358 | ) | — | — | (2,358 | ) | ||||||||
Proceeds from exercise of stock options | 4,791 | — | — | — | 4,791 | ||||||||||
Intercompany financing | — | 22,141 | (8,975 | ) | (13,166 | ) | — | ||||||||
Dividends paid | (3,656 | ) | — | (12,031 | ) | 12,031 | (3,656 | ) | |||||||
Debt issue costs | — | (6,509 | ) | (63 | ) | — | (6,572 | ) | |||||||
Net cash provided by (used in) financing activities | 1,135 | 222,974 | (82,689 | ) | (1,135 | ) | 140,285 | ||||||||
Net increase in cash, cash equivalents and restricted cash | — | 61,577 | 7,618 | — | 69,195 | ||||||||||
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 | $ | — | $ | 82,504 | $ | 21,132 | $ | — | $ | 103,636 |
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 (1) | $ | 7,138 | $ | (18,210 | ) | $ | 44,712 | $ | (7,138 | ) | $ | 26,502 | |||
INVESTING ACTIVITIES: | |||||||||||||||
Purchase of property and equipment | — | (11,565 | ) | (54 | ) | — | (11,619 | ) | |||||||
Intercompany Investing | (3,555 | ) | — | — | 3,555 | — | |||||||||
Investments in and advances to joint venture arrangements | — | (5,504 | ) | (4,556 | ) | — | (10,060 | ) | |||||||
Net cash (used in) provided by investing activities (1) | (3,555 | ) | (17,069 | ) | (4,610 | ) | 3,555 | (21,679 | ) | ||||||
FINANCING ACTIVITIES: | |||||||||||||||
Proceeds from bank borrowings - homebuilding operations | — | 276,800 | — | — | 276,800 | ||||||||||
Principal repayments of bank borrowings - homebuilding operations | — | (235,600 | ) | — | — | (235,600 | ) | ||||||||
Net repayments of bank borrowings - financial services operations | — | — | (32,165 | ) | — | (32,165 | ) | ||||||||
Principal proceeds from notes payable - other and CDD bond obligations | — | 125 | — | — | 125 | ||||||||||
Intercompany financing | — | (630 | ) | (3,766 | ) | 4,396 | — | ||||||||
Dividends paid | (3,656 | ) | — | (7,138 | ) | 7,138 | (3,656 | ) | |||||||
Debt issue costs | — | (153 | ) | (40 | ) | — | (193 | ) | |||||||
Proceeds from exercise of stock options | 73 | — | — | — | 73 | ||||||||||
Net cash (used in) provided by financing activities | (3,583 | ) | 40,542 | (43,109 | ) | 11,534 | 5,384 | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | — | 5,263 | (3,007 | ) | 7,951 | 10,207 | |||||||||
Cash, cash equivalents and restricted cash balance at beginning of period | — | 2,896 | 18,156 | (7,951 | ) | 13,101 | |||||||||
Cash, cash equivalents and restricted cash balance at end of period | $ | — | $ | 8,159 | $ | 15,149 | $ | — | $ | 23,308 |
Northern | Southern | |||||||
Chicago, Illinois | Orlando, Florida | |||||||
Cincinnati, Ohio | Sarasota, Florida | |||||||
Columbus, Ohio | Tampa, Florida | |||||||
Indianapolis, Indiana | Austin, Texas | |||||||
Minneapolis/St. Paul, Minnesota | Dallas/Fort Worth, Texas | |||||||
Detroit, Michigan | Houston, Texas | |||||||
San Antonio, Texas | ||||||||
Charlotte, North Carolina | ||||||||
Raleigh, North Carolina | ||||||||
Nashville, Tennessee | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 472,814 | $ | 417,787 | $ | 826,600 | $ | 750,785 | |||||||||||||||||||||
Southern homebuilding | 548,466 | 514,618 | 1,031,380 | 980,747 | |||||||||||||||||||||||||
Financial services (a) | 19,374 | 28,635 | 43,485 | 58,284 | |||||||||||||||||||||||||
Total revenue | $ | 1,040,654 | $ | 961,040 | $ | 1,901,465 | $ | 1,789,816 | |||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 104,292 | $ | 91,902 | $ | 171,400 | $ | 158,465 | |||||||||||||||||||||
Southern homebuilding | 160,621 | 120,831 | 282,511 | 226,810 | |||||||||||||||||||||||||
Financial services (a) | 19,374 | 28,635 | 43,485 | 58,284 | |||||||||||||||||||||||||
Total gross margin | $ | 284,287 | $ | 241,368 | $ | 497,396 | $ | 443,559 | |||||||||||||||||||||
Selling, general and administrative expense: | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 30,214 | $ | 29,920 | $ | 57,106 | $ | 57,499 | |||||||||||||||||||||
Southern homebuilding | 40,597 | 41,767 | 78,194 | 81,531 | |||||||||||||||||||||||||
Financial services (a) | 9,766 | 9,710 | 19,944 | 18,723 | |||||||||||||||||||||||||
Corporate | 20,845 | 18,257 | 36,382 | 32,795 | |||||||||||||||||||||||||
Total selling, general and administrative expense | $ | 101,422 | $ | 99,654 | $ | 191,626 | $ | 190,548 | |||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
Northern homebuilding | $ | 74,078 | $ | 61,982 | $ | 114,294 | $ | 100,966 | |||||||||||||||||||||
Southern homebuilding | 120,024 | 79,064 | 204,317 | 145,279 | |||||||||||||||||||||||||
Financial services (a) | 9,608 | 18,925 | 23,541 | 39,561 | |||||||||||||||||||||||||
Less: Corporate selling, general and administrative expense | (20,845) | (18,257) | (36,382) | (32,795) | |||||||||||||||||||||||||
Total operating income | $ | 182,865 | $ | 141,714 | $ | 305,770 | $ | 253,011 | |||||||||||||||||||||
Interest expense (income): | |||||||||||||||||||||||||||||
Northern homebuilding | $ | — | $ | — | $ | — | $ | 76 | |||||||||||||||||||||
Southern homebuilding | — | — | (2) | 157 | |||||||||||||||||||||||||
Financial services (a) | 941 | 949 | 1,819 | 1,892 | |||||||||||||||||||||||||
Corporate | (248) | (497) | (453) | (497) | |||||||||||||||||||||||||
Total interest expense | $ | 693 | $ | 452 | $ | 1,364 | $ | 1,628 | |||||||||||||||||||||
Other income | $ | (1) | $ | (35) | $ | (17) | $ | (195) | |||||||||||||||||||||
Income before income taxes | $ | 182,173 | $ | 141,297 | $ | 304,423 | $ | 251,578 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue: | |||||||||||||||
Midwest homebuilding | $ | 180,488 | $ | 166,928 | $ | 495,379 | $ | 438,016 | |||||||
Southern homebuilding | 176,502 | 143,315 | 504,647 | 414,974 | |||||||||||
Mid-Atlantic homebuilding | 107,670 | 121,659 | 302,305 | 284,527 | |||||||||||
Financial services (a) | 11,763 | 10,562 | 37,938 | 30,564 | |||||||||||
Total revenue | $ | 476,423 | $ | 442,464 | $ | 1,340,269 | $ | 1,168,081 | |||||||
Gross margin: | |||||||||||||||
Midwest homebuilding | $ | 37,264 | $ | 35,437 | $ | 100,284 | $ | 88,104 | |||||||
Southern homebuilding (b) | 33,159 | 11,525 | 84,638 | 55,489 | |||||||||||
Mid-Atlantic homebuilding | 19,564 | 21,305 | 54,857 | 50,409 | |||||||||||
Financial services (a) | 11,763 | 10,562 | 37,938 | 30,564 | |||||||||||
Total gross margin (b) | $ | 101,750 | $ | 78,829 | $ | 277,717 | $ | 224,566 | |||||||
Selling, general and administrative expense: | |||||||||||||||
Midwest homebuilding | $ | 16,377 | $ | 14,809 | $ | 46,554 | $ | 39,161 | |||||||
Southern homebuilding | 20,077 | 16,774 | 58,135 | 47,109 | |||||||||||
Mid-Atlantic homebuilding | 9,595 | 9,946 | 28,047 | 27,582 | |||||||||||
Financial services (a) | 5,876 | 4,618 | 15,961 | 12,983 | |||||||||||
Corporate | 10,548 | 10,676 | 29,178 | 26,876 | |||||||||||
Total selling, general and administrative expense | $ | 62,473 | $ | 56,823 | $ | 177,875 | $ | 153,711 | |||||||
Operating income: | |||||||||||||||
Midwest homebuilding | $ | 20,887 | $ | 20,628 | $ | 53,730 | $ | 48,943 | |||||||
Southern homebuilding (b) | 13,082 | (5,249 | ) | 26,503 | 8,380 | ||||||||||
Mid-Atlantic homebuilding | 9,969 | 11,359 | 26,810 | 22,827 | |||||||||||
Financial services (a) | 5,887 | 5,944 | 21,977 | 17,581 | |||||||||||
Less: Corporate selling, general and administrative expense | (10,548 | ) | (10,676 | ) | (29,178 | ) | (26,876 | ) | |||||||
Total operating income (b) | $ | 39,277 | $ | 22,006 | $ | 99,842 | $ | 70,855 | |||||||
Interest expense: | |||||||||||||||
Midwest homebuilding | $ | 1,319 | $ | 647 | $ | 3,559 | $ | 2,539 | |||||||
Southern homebuilding | 2,143 | 1,788 | 6,311 | 6,118 | |||||||||||
Mid-Atlantic homebuilding | 557 | 601 | 1,988 | 3,058 | |||||||||||
Financial services (a) | 656 | 551 | 1,989 | 1,445 | |||||||||||
Total interest expense | $ | 4,675 | $ | 3,587 | $ | 13,847 | $ | 13,160 | |||||||
Equity in income of joint venture arrangements | (71 | ) | (24 | ) | (198 | ) | (413 | ) | |||||||
Income before income taxes | $ | 34,673 | $ | 18,443 | $ | 86,193 | $ | 58,108 |
At June 30, 2022 | |||||||||||||||||||||||
(In thousands) | Northern | Southern | Corporate, Financial Services and Unallocated | Total | |||||||||||||||||||
Deposits on real estate under option or contract | $ | 7,002 | $ | 49,173 | $ | — | $ | 56,175 | |||||||||||||||
Inventory (a) | 1,086,685 | 1,673,405 | — | 2,760,090 | |||||||||||||||||||
Investments in joint venture arrangements | — | 55,625 | — | 55,625 | |||||||||||||||||||
Other assets | 43,562 | 85,585 | (b) | 492,287 | 621,434 | ||||||||||||||||||
Total assets | $ | 1,137,249 | $ | 1,863,788 | $ | 492,287 | $ | 3,493,324 |
At December 31, 2021 | |||||||||||||||||||||||
(In thousands) | Northern | Southern | Corporate, Financial Services and Unallocated | Total | |||||||||||||||||||
Deposits on real estate under option or contract | $ | 4,123 | $ | 48,795 | $ | — | $ | 52,918 | |||||||||||||||
Inventory (a) | 987,258 | 1,412,258 | — | 2,399,516 | |||||||||||||||||||
Investments in joint venture arrangements | — | 57,121 | — | 57,121 | |||||||||||||||||||
Other assets | 37,527 | 63,844 | (b) | 628,927 | 730,298 | ||||||||||||||||||
Total assets | $ | 1,028,908 | $ | 1,582,018 | $ | 628,927 | $ | 3,239,853 |
At September 30, 2017 | |||||||||||||||||||
(In thousands) | Midwest | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total | ||||||||||||||
Deposits on real estate under option or contract | $ | 5,078 | $ | 20,094 | $ | 6,202 | $ | — | $ | 31,374 | |||||||||
Inventory (a) | 514,949 | 623,815 | 285,671 | — | 1,424,435 | ||||||||||||||
Investments in joint venture arrangements | 3,798 | 10,493 | 8,690 | — | 22,981 | ||||||||||||||
Other assets | 13,106 | 24,624 | (b) | 11,600 | 256,575 | 305,905 | |||||||||||||
Total assets | $ | 536,931 | $ | 679,026 | $ | 312,163 | $ | 256,575 | $ | 1,784,695 |
At December 31, 2016 | |||||||||||||||||||
(In thousands) | Midwest | Southern | Mid-Atlantic | Corporate, Financial Services and Unallocated | Total | ||||||||||||||
Deposits on real estate under option or contract | $ | 3,989 | $ | 22,607 | $ | 3,260 | $ | — | $ | 29,856 | |||||||||
Inventory (a) | 399,814 | 484,038 | 302,226 | — | 1,186,078 | ||||||||||||||
Investments in joint venture arrangements | 10,155 | 10,630 | 7,231 | — | 28,016 | ||||||||||||||
Other assets | 25,747 | 35,622 | (b) | 13,912 | 229,280 | 304,561 | |||||||||||||
Total assets | $ | 439,705 | $ | 552,897 | $ | 326,629 | $ | 229,280 | $ | 1,548,511 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Northern Region | |||||||||||||||||||||||||||||
Homes delivered | 1,000 | 961 | 1,760 | 1,762 | |||||||||||||||||||||||||
New contracts, net | 722 | 884 | 1,912 | 2,190 | |||||||||||||||||||||||||
Backlog at end of period | 2,042 | 2,243 | 2,042 | 2,243 | |||||||||||||||||||||||||
Average sales price of homes delivered | $ | 471 | $ | 433 | $ | 469 | $ | 425 | |||||||||||||||||||||
Average sales price of homes in backlog | $ | 507 | $ | 468 | $ | 507 | $ | 468 | |||||||||||||||||||||
Aggregate sales value of homes in backlog | $ | 1,036,239 | $ | 1,049,811 | $ | 1,036,239 | $ | 1,049,811 | |||||||||||||||||||||
Housing revenue | $ | 470,880 | $ | 416,247 | $ | 824,666 | $ | 749,055 | |||||||||||||||||||||
Land sale revenue | $ | 1,934 | $ | 1,540 | $ | 1,934 | $ | 1,730 | |||||||||||||||||||||
Operating income homes (a) | $ | 73,921 | $ | 61,706 | $ | 114,137 | $ | 100,634 | |||||||||||||||||||||
Operating income land | $ | 157 | $ | 276 | $ | 157 | $ | 332 | |||||||||||||||||||||
Number of average active communities | 91 | 83 | 91 | 85 | |||||||||||||||||||||||||
Number of active communities, end of period | 89 | 79 | 89 | 79 | |||||||||||||||||||||||||
Southern Region | |||||||||||||||||||||||||||||
Homes delivered | 1,133 | 1,297 | 2,196 | 2,515 | |||||||||||||||||||||||||
New contracts, net | 1,098 | 1,383 | 2,422 | 3,186 | |||||||||||||||||||||||||
Backlog at end of period | 3,171 | 3,245 | 3,171 | 3,245 | |||||||||||||||||||||||||
Average sales price of homes delivered | $ | 483 | $ | 394 | $ | 467 | $ | 388 | |||||||||||||||||||||
Average sales price of homes in backlog | $ | 527 | $ | 444 | $ | 527 | $ | 444 | |||||||||||||||||||||
Aggregate sales value of homes in backlog | $ | 1,670,347 | $ | 1,440,115 | $ | 1,670,347 | $ | 1,440,115 | |||||||||||||||||||||
Housing revenue | $ | 547,026 | $ | 511,259 | $ | 1,026,403 | $ | 976,730 | |||||||||||||||||||||
Land sale revenue | $ | 1,440 | $ | 3,359 | $ | 4,977 | $ | 4,017 | |||||||||||||||||||||
Operating income homes (a) | $ | 119,590 | $ | 78,414 | $ | 202,916 | $ | 144,435 | |||||||||||||||||||||
Operating income land | $ | 434 | $ | 650 | $ | 1,401 | $ | 844 | |||||||||||||||||||||
Number of average active communities | 81 | 98 | 82 | 103 | |||||||||||||||||||||||||
Number of active communities, end of period | 79 | 96 | 79 | 96 | |||||||||||||||||||||||||
Total Homebuilding Regions | |||||||||||||||||||||||||||||
Homes delivered | 2,133 | 2,258 | 3,956 | 4,277 | |||||||||||||||||||||||||
New contracts, net | 1,820 | 2,267 | 4,334 | 5,376 | |||||||||||||||||||||||||
Backlog at end of period | 5,213 | 5,488 | 5,213 | 5,488 | |||||||||||||||||||||||||
Average sales price of homes delivered | $ | 477 | $ | 411 | $ | 468 | $ | 404 | |||||||||||||||||||||
Average sales price of homes in backlog | $ | 519 | $ | 454 | $ | 519 | $ | 454 | |||||||||||||||||||||
Aggregate sales value of homes in backlog | $ | 2,706,586 | $ | 2,489,926 | $ | 2,706,586 | $ | 2,489,926 | |||||||||||||||||||||
Housing revenue | $ | 1,017,906 | $ | 927,506 | $ | 1,851,069 | $ | 1,725,785 | |||||||||||||||||||||
Land sale revenue | $ | 3,374 | $ | 4,899 | $ | 6,911 | $ | 5,747 | |||||||||||||||||||||
Operating income homes (a) | $ | 193,511 | $ | 140,120 | $ | 317,053 | $ | 245,069 | |||||||||||||||||||||
Operating income land | $ | 591 | $ | 926 | $ | 1,558 | $ | 1,176 | |||||||||||||||||||||
Number of average active communities | 172 | 181 | 173 | 188 | |||||||||||||||||||||||||
Number of active communities, end of period | 168 | 175 | 168 | 175 | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||||
Number of loans originated | 1,343 | 1,704 | 2,614 | 3,279 | |||||||||||||||||||
Value of loans originated | $ | 516,259 | $ | 572,156 | $ | 996,040 | $ | 1,088,033 | |||||||||||||||
Revenue | $ | 19,374 | $ | 28,635 | $ | 43,485 | $ | 58,284 | |||||||||||||||
Less: Selling, general and administrative expenses | 9,766 | 9,710 | 19,944 | 18,723 | |||||||||||||||||||
Less: Interest expense | 941 | 949 | 1,819 | 1,892 | |||||||||||||||||||
Income before income taxes | $ | 8,667 | $ | 17,976 | $ | 21,722 | $ | 37,669 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Midwest Region | |||||||||||||||
Homes delivered | 461 | 443 | 1,277 | 1,163 | |||||||||||
New contracts, net | 458 | 407 | 1,545 | 1,409 | |||||||||||
Backlog at end of period | 1,025 | 918 | 1,025 | 918 | |||||||||||
Average sales price of homes delivered | $ | 389 | $ | 374 | $ | 386 | $ | 375 | |||||||
Average sales price of homes in backlog | $ | 406 | $ | 388 | $ | 406 | $ | 388 | |||||||
Aggregate sales value of homes in backlog | $ | 416,029 | $ | 355,797 | $ | 416,029 | $ | 355,797 | |||||||
Housing revenue | $ | 179,363 | $ | 165,894 | $ | 493,464 | $ | 435,717 | |||||||
Land sale revenue | $ | 1,125 | $ | 1,034 | $ | 1,915 | $ | 2,299 | |||||||
Operating income homes (a) | $ | 20,771 | $ | 19,936 | $ | 53,327 | $ | 47,938 | |||||||
Operating income land | $ | 116 | $ | 692 | $ | 403 | $ | 1,005 | |||||||
Number of average active communities | 64 | 62 | 63 | 67 | |||||||||||
Number of active communities, end of period | 62 | 60 | 62 | 60 | |||||||||||
Southern Region | |||||||||||||||
Homes delivered | 520 | 410 | 1,459 | 1,158 | |||||||||||
New contracts, net | 583 | 437 | 1,798 | 1,444 | |||||||||||
Backlog at end of period | 1,013 | 846 | 1,013 | 846 | |||||||||||
Average sales price of homes delivered | $ | 338 | $ | 345 | $ | 343 | $ | 344 | |||||||
Average sales price of homes in backlog | $ | 355 | $ | 350 | $ | 355 | $ | 350 | |||||||
Aggregate sales value of homes in backlog | $ | 359,833 | $ | 296,145 | $ | 359,833 | $ | 296,145 | |||||||
Housing revenue | $ | 175,644 | $ | 141,382 | $ | 500,504 | $ | 398,249 | |||||||
Land sale revenue | $ | 858 | $ | 1,933 | $ | 4,143 | $ | 16,725 | |||||||
Operating income homes (a) (b) | $ | 12,924 | $ | (5,650 | ) | $ | 26,234 | $ | 6,458 | ||||||
Operating income land | $ | 158 | $ | 401 | $ | 269 | $ | 1,922 | |||||||
Number of average active communities | 86 | 72 | 84 | 70 | |||||||||||
Number of active communities, end of period | 85 | 74 | 85 | 74 | |||||||||||
Mid-Atlantic Region | |||||||||||||||
Homes delivered | 275 | 295 | 769 | 745 | |||||||||||
New contracts, net | 184 | 244 | 736 | 903 | |||||||||||
Backlog at end of period | 340 | 457 | 340 | 457 | |||||||||||
Average sales price of homes delivered | $ | 379 | $ | 380 | $ | 385 | $ | 365 | |||||||
Average sales price of homes in backlog | $ | 399 | $ | 371 | $ | 399 | $ | 371 | |||||||
Aggregate sales value of homes in backlog | $ | 135,795 | $ | 169,552 | $ | 135,795 | $ | 169,552 | |||||||
Housing revenue | $ | 104,335 | $ | 111,952 | $ | 295,925 | $ | 271,735 | |||||||
Land sale revenue | $ | 3,335 | $ | 9,707 | $ | 6,380 | $ | 12,792 | |||||||
Operating income homes (a) | $ | 9,877 | $ | 11,388 | $ | 26,598 | $ | 22,658 | |||||||
Operating income land | $ | 92 | $ | (29 | ) | $ | 212 | $ | 169 | ||||||
Number of average active communities | 33 | 40 | 35 | 39 | |||||||||||
Number of active communities, end of period | 32 | 40 | 32 | 40 | |||||||||||
Total Homebuilding Regions | |||||||||||||||
Homes delivered | 1,256 | 1,148 | 3,505 | 3,066 | |||||||||||
New contracts, net | 1,225 | 1,088 | 4,079 | 3,756 | |||||||||||
Backlog at end of period | 2,378 | 2,221 | 2,378 | 2,221 | |||||||||||
Average sales price of homes delivered | $ | 366 | $ | 365 | $ | 368 | $ | 361 | |||||||
Average sales price of homes in backlog | $ | 383 | $ | 370 | $ | 383 | $ | 370 | |||||||
Aggregate sales value of homes in backlog | $ | 911,657 | $ | 821,494 | $ | 911,657 | $ | 821,494 | |||||||
Housing revenue | $ | 459,342 | $ | 419,228 | $ | 1,289,893 | $ | 1,105,701 | |||||||
Land sale revenue | $ | 5,318 | $ | 12,674 | $ | 12,438 | $ | 31,816 | |||||||
Operating income homes (a) (b) | $ | 43,572 | $ | 25,674 | $ | 106,159 | $ | 77,054 | |||||||
Operating income land | $ | 366 | $ | 1,064 | $ | 884 | $ | 3,096 | |||||||
Number of average active communities | 183 | 174 | 182 | 176 | |||||||||||
Number of active communities, end of period | 179 | 174 | 179 | 174 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Financial Services | |||||||||||||||
Number of loans originated | 902 | 848 | 2,467 | 2,213 | |||||||||||
Value of loans originated | $ | 263,755 | $ | 250,306 | $ | 732,587 | $ | 654,905 | |||||||
Revenue | $ | 11,763 | $ | 10,562 | $ | 37,938 | $ | 30,564 | |||||||
Less: Selling, general and administrative expense | 5,876 | 4,618 | 15,961 | 12,983 | |||||||||||
Interest expense | 656 | 551 | 1,989 | 1,445 | |||||||||||
Income before income taxes | $ | 5,231 | $ | 5,393 | $ | 19,988 | $ | 16,136 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Northern | 11.6 | % | 6.1 | % | 8.6 | % | 6.2 | % | |||||||||||||||
Southern | 10.9 | % | 7.6 | % | 9.2 | % | 7.7 | % | |||||||||||||||
Total cancellation rate | 11.2 | % | 7.0 | % | 8.9 | % | 7.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Midwest | 14.1 | % | 14.5 | % | 12.3 | % | 12.3 | % | |||
Southern | 16.7 | % | 16.9 | % | 16.7 | % | 16.1 | % | |||
Mid-Atlantic | 12.4 | % | 13.2 | % | 11.1 | % | 10.1 | % | |||
Total cancellation rate | 15.1 | % | 15.2 | % | 14.1 | % | 13.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Housing revenue | $ | 459,342 | $ | 419,228 | $ | 1,289,893 | $ | 1,105,701 | |||||||
Housing cost of sales | 369,721 | 352,025 | 1,050,998 | 914,795 | |||||||||||
Housing gross margin | 89,621 | 67,203 | 238,895 | 190,906 | |||||||||||
Add: Stucco-related charges (a) | — | 14,500 | 8,500 | 19,409 | |||||||||||
Adjusted housing gross margin | $ | 89,621 | $ | 81,703 | $ | 247,395 | $ | 210,315 | |||||||
Housing gross margin percentage | 19.5 | % | 16.0 | % | 18.5 | % | 17.3 | % | |||||||
Adjusted housing gross margin percentage | 19.5 | % | 19.5 | % | 19.2 | % | 19.0 | % | |||||||
Income before income taxes | $ | 34,673 | $ | 18,443 | $ | 86,193 | $ | 58,108 | |||||||
Add: Stucco-related charges (a) | — | 14,500 | 8,500 | 19,409 | |||||||||||
Adjusted income before income taxes | $ | 34,673 | $ | 32,943 | $ | 94,693 | $ | 77,517 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Midwest region: | |||||||||||||||
Housing revenue | $ | 179,363 | $ | 165,894 | $ | 493,464 | $ | 435,717 | |||||||
Housing cost of sales | 142,215 | 131,149 | 393,583 | 348,618 | |||||||||||
Housing gross margin | 37,148 | 34,745 | 99,881 | 87,099 | |||||||||||
Add: Purchase accounting adjustments (a) | — | — | — | 1,081 | |||||||||||
Adjusted housing gross margin | $ | 37,148 | $ | 34,745 | $ | 99,881 | $ | 88,180 | |||||||
Housing gross margin percentage | 20.7 | % | 20.9 | % | 20.2 | % | 20.0 | % | |||||||
Adjusted housing gross margin percentage | 20.7 | % | 20.9 | % | 20.2 | % | 20.2 | % | |||||||
Southern region: | |||||||||||||||
Housing revenue | $ | 175,644 | $ | 141,382 | $ | 500,504 | $ | 398,249 | |||||||
Housing cost of sales | 142,643 | 130,258 | 416,135 | 344,682 | |||||||||||
Housing gross margin | 33,001 | 11,124 | 84,369 | 53,567 | |||||||||||
Add: Stucco-related charges (b) | — | 14,500 | 8,500 | 19,409 | |||||||||||
Adjusted housing gross margin | $ | 33,001 | $ | 25,624 | $ | 92,869 | $ | 72,976 | |||||||
Housing gross margin percentage | 18.8 | % | 7.9 | % | 16.9 | % | 13.5 | % | |||||||
Adjusted housing gross margin percentage | 18.8 | % | 18.1 | % | 18.6 | % | 18.3 | % |
(In thousands) | Expiration Date | Outstanding Balance | Available Amount | ||||||||
Notes payable – homebuilding (a) | (a) | $ | — | $ | 444,287 | ||||||
Notes payable – financial services (b) | (b) | $ | 194,602 | $ | 2,001 |
(In thousands) | Expiration Date | Outstanding Balance | Available Amount | ||||
Notes payable – homebuilding (a) | 7/18/2021 | $ | — | $ | 434,188 | ||
Notes payable – financial services (b) | (b) | $ | 91,275 | $ | 769 |
Financial Covenant | Covenant Requirement | Actual | ||||||||||||
(Dollars in millions) | ||||||||||||||
Consolidated Tangible Net Worth | ≥ | $ | 1,193.4 | $ | 1,727.0 | |||||||||
Leverage Ratio | ≤ | 0.60 | 0.25 | |||||||||||
Interest Coverage Ratio | ≥ | 1.5 to 1.0 | 19.0 to 1.0 | |||||||||||
Investments in Unrestricted Subsidiaries and Joint Ventures | ≤ | $ | 518.1 | $ | 5.9 | |||||||||
Unsold Housing Units and Model Homes | ≤ | 2,911 | 980 |
Financial Covenant | Covenant Requirement | Actual | ||||||
(Dollars in millions) | ||||||||
Consolidated Tangible Net Worth | ≥ | $ | 481.1 | $ | 677.2 | |||
Leverage Ratio | ≤ | 0.60 | 0.46 | |||||
Interest Coverage Ratio | ≥ | 1.5 to 1.0 | 5.3 to 1.0 | |||||
Investments in Unrestricted Subsidiaries and Joint Ventures | ≤ | $ | 203.2 | $ | 7.6 | |||
Unsold Housing Units and Model Homes | ≤ | 1,727 | 1,071 |
Financial Covenant | Covenant Requirement | Actual | ||||||||||||
(Dollars in millions) | ||||||||||||||
Leverage Ratio | ≤ | 12.0 to 1.0 | 5.3 to 1.0 | |||||||||||
Liquidity | ≥ | $ | 10.0 | $ | 47.3 | |||||||||
Adjusted Net Income | > | $ | 0.0 | $ | 24.0 | |||||||||
Tangible Net Worth | ≥ | $ | 20.0 | $ | 41.5 |
Financial Covenant | Covenant Requirement | Actual | ||||||
(Dollars in millions) | ||||||||
Leverage Ratio | ≤ | 10.0 to 1.0 | 4.6 to 1.0 | |||||
Liquidity | ≥ | $ | 6.25 | $ | 19.0 | |||
Adjusted Net Income | > | $ | 0.0 | $ | 12.4 | |||
Tangible Net Worth | ≥ | $ | 12.5 | $ | 21.8 |
(In thousands) | As of June 30, 2022 | As of December 31, 2021 | ||||||
Assets: | ||||||||
Cash | $ | 134,436 | $ | 203,381 | ||||
Investment in joint venture arrangements | $ | 50,121 | $ | 50,648 | ||||
Amounts due from Non-Guarantor Subsidiaries | $ | 11,997 | $ | 6,455 | ||||
Total assets | $ | 3,208,903 | $ | 2,897,385 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Total liabilities | $ | 1,447,599 | $ | 1,320,337 | ||||
Shareholders’ equity | $ | 1,761,304 | $ | 1,577,048 |
Six Months Ended | |||||
(In thousands) | June 30, 2022 | ||||
Revenues | $ | 1,857,980 | |||
Land and housing costs | $ | 1,404,069 | |||
Selling, general and administrative expense | $ | 171,066 | |||
Income before income taxes | $ | 283,300 | |||
Net income | $ | 211,875 |
Payments due by period | ||||||||||||
October 1, 2017 through | January 1, 2020 through | |||||||||||
Total | December 31, 2019 | December 31, 2021 | Thereafter | |||||||||
Notes payable bank – homebuilding operations (a) | $ | — | $ | — | $ | — | $ | — | ||||
Notes payable bank – financial services (b) | 91,399 | 91,399 | — | — | ||||||||
Senior notes (including interest) | 730,766 | 68,547 | 355,969 | 306,250 | ||||||||
Convertible senior subordinated notes (including interest) | 87,544 | 87,544 | — | — | ||||||||
Total | $ | 909,709 | $ | 247,490 | $ | 355,969 | $ | 306,250 |
June 30, | December 31, | ||||||||||
Description of Financial Instrument (in thousands) | 2022 | 2021 | |||||||||
Whole loan contracts and related committed IRLCs | $ | 7,082 | $ | 782 | |||||||
Uncommitted IRLCs | 562,101 | 228,831 | |||||||||
FMBSs related to uncommitted IRLCs | 570,000 | 223,000 | |||||||||
Whole loan contracts and related mortgage loans held for sale | 12,875 | 3,785 | |||||||||
FMBSs related to mortgage loans held for sale | 188,000 | 251,000 | |||||||||
Mortgage loans held for sale covered by FMBSs | 184,620 | 263,088 |
September 30, | December 31, | ||||||
Description of Financial Instrument (in thousands) | 2017 | 2016 | |||||
Best-effort contracts and related committed IRLCs | $ | 2,571 | $ | 6,607 | |||
Uncommitted IRLCs | 105,104 | 66,875 | |||||
FMBSs related to uncommitted IRLCs | 105,000 | 66,000 | |||||
Best-effort contracts and related mortgage loans held for sale | 10,423 | 125,348 | |||||
FMBSs related to mortgage loans held for sale | 81,000 | 33,000 | |||||
Mortgage loans held for sale covered by FMBSs | 81,244 | 32,870 |
June 30, | December 31, | ||||||||||
Description of Financial Instrument (in thousands) | 2022 | 2021 | |||||||||
Mortgage loans held for sale | $ | 194,450 | $ | 275,655 | |||||||
Forward sales of mortgage-backed securities | 1,725 | 4,477 | |||||||||
Interest rate lock commitments | (3,061) | (487) | |||||||||
Whole loan contracts | (68) | (62) | |||||||||
Total | $ | 193,046 | $ | 279,583 |
September 30, | December 31, | ||||||
Description of Financial Instrument (in thousands) | 2017 | 2016 | |||||
Mortgage loans held for sale | $ | 91,987 | $ | 154,020 | |||
Forward sales of mortgage-backed securities | 471 | 230 | |||||
Interest rate lock commitments | 366 | 250 | |||||
Best-efforts contracts | (60 | ) | (90 | ) | |||
Total | $ | 92,764 | $ | 154,410 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
Description (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Mortgage loans held for sale | $ | 3,081 | $ | 6,682 | $ | (2,875) | $ | (258) | |||||||||||||||
Forward sales of mortgage-backed securities | (16,312) | (8,329) | (2,753) | 1,017 | |||||||||||||||||||
Interest rate lock commitments | 4,536 | 3,128 | (2,693) | 510 | |||||||||||||||||||
Whole loan contracts | (13) | (60) | 112 | 353 | |||||||||||||||||||
Total (loss) gain recognized | $ | (8,708) | $ | 1,421 | $ | (8,209) | $ | 1,622 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Description (in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Mortgage loans held for sale | $ | (64 | ) | $ | (1,127 | ) | $ | 4,326 | $ | 1,059 | |||||
Forward sales of mortgage-backed securities | (128 | ) | 1,443 | 241 | (245 | ) | |||||||||
Interest rate lock commitments | 22 | (531 | ) | 116 | 388 | ||||||||||
Best-efforts contracts | (41 | ) | 15 | 30 | 31 | ||||||||||
Total (loss) gain recognized | $ | (211 | ) | $ | (200 | ) | $ | 4,713 | $ | 1,233 |
Expected Cash Flows by Period | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | 6/30/2022 | |||||||||||||||||||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | 199,603 | — | — | — | — | — | $ | 199,603 | $ | 194,450 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.66 | % | — | — | — | — | — | 4.66 | % | ||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt — fixed rate | — | — | — | — | — | $ | 700,000 | $ | 700,000 | $ | 564,375 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | — | — | — | — | — | 4.52 | % | 4.52 | % | ||||||||||||||||||||||||||||||||||||||||||||
Short-term debt — variable rate | $ | 194,602 | — | — | — | — | — | $ | 194,602 | $ | 194,602 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 3.51 | % | — | — | — | — | — | 3.51 | % |
Expected Cash Flows by Period | Fair Value | ||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | 9/30/2017 | |||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Mortgage loans held for sale: | |||||||||||||||||||||||||||||||
Fixed rate | $ | 91,615 | — | — | — | — | — | $ | 91,615 | $ | 89,827 | ||||||||||||||||||||
Weighted average interest rate | 3.92 | % | — | — | — | — | — | 3.92 | % | ||||||||||||||||||||||
Variable rate | $ | 2,187 | — | — | — | — | — | $ | 2,187 | $ | 2,160 | ||||||||||||||||||||
Weighted average interest rate | 3.26 | % | — | — | — | — | — | 3.26 | % | ||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||
Long-term debt — fixed rate | $ | 162 | $ | 86,778 | $ | 292 | $ | 292 | $ | 300,188 | $ | 250,000 | $ | 637,712 | $ | 656,324 | |||||||||||||||
Weighted average interest rate | 3.83 | % | 3.01 | % | 3.37 | % | 3.37 | % | 6.74 | % | 5.63 | % | 5.80 | % | |||||||||||||||||
Short-term debt — variable rate | $ | 91,275 | — | — | — | — | — | $ | 91,275 | $ | 91,275 | ||||||||||||||||||||
Weighted average interest rate | 3.61 | % | — | — | — | — | — | 3.61 | % |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(1) | |||||||||||||||||||
April 1, 2022 - April 30, 2022 | 20,000 | $ | 44.64 | 20,000 | $ | 132,193,648 | |||||||||||||||||
May 1, 2022 - May 31, 2022 | 420,000 | $ | 45.43 | 420,000 | $ | 113,115,168 | |||||||||||||||||
June 1, 2022 - June 30, 2022 | 110,000 | $ | 44.28 | 110,000 | $ | 108,244,293 | |||||||||||||||||
Quarter ended June 30, 2022 | 550,000 | $ | 45.17 | 550,000 | $ | 108,244,293 |
Exhibit Number | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document. (Furnished herewith.) | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. (Furnished herewith.) | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. (Furnished herewith.) | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. (Furnished herewith.) | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. (Furnished herewith.) | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. (Furnished herewith.) | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). |
M/I Homes, Inc. | |||||||||||||||||
(Registrant) | |||||||||||||||||
Date: | July 29, 2022 | ||||||||||||||||
By: | |||||||||||||||||
/s/ Robert H. Schottenstein | |||||||||||||||||
Robert H. Schottenstein | |||||||||||||||||
Chairman, Chief Executive Officer and President | |||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||
Date: | By: | /s/ Ann Marie W. Hunker | |||||||||||||||
Ann Marie W. Hunker | |||||||||||||||||
Vice President, Chief Accounting Officer and Controller | |||||||||||||||||