M I HOMES INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2004

or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12434

M/I HOMES, INC .

(Exact name of registrant as specified in its charter)

Ohio				31-1210837

(State or Other Jurisdiction				(I.R.S. Employer
of Incorporation or Organization)				Identification No.)

3 Easton Oval, Suite 500, Columbus, Ohio	43219

(Address of Principal Executive Offices)	(Zip Code)

(614) 418-8000

(Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES	X	NO

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES	X	NO

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common stock, par value $.01 per share: 14,122,723 shares

outstanding as of April 30, 2004

M/I HOMES, INC.
FORM 10-Q

TABLE OF CONTENTS

				PAGE
PART I.	FINANCIAL INFORMATION			NUMBER

	Item 1.	M/I Homes, Inc. and Subsidiaries Consolidated Financial Statements

		Condensed Consolidated Balance Sheets March 31, 2004 (Unaudited) and December 31, 2003		3

		Unaudited Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2004 and 2003		4

		Unaudited Condensed Consolidated Statement of Shareholders’ Equity for the Three Months Ended March 31, 2004		5

		Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2004 and 2003		6

		Notes to Unaudited Condensed Consolidated Financial Statements		7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		13

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk		25

	Item 4.	Controls and Procedures		26

PART II.	OTHER INFORMATION

	Item 1.		Legal Proceedings	27

	Item 2.		Changes in Securities and Use of Proceeds	27

	Item 3.		Defaults Upon Senior Securities	27

	Item 4.		Submission of Matters to a Vote of Security Holders	27

	Item 5.		Other Information	28

	Item 6.		Exhibits and Reports on Form 8-K	28

Signatures				29

Exhibit Index				30


	2

M/I HOMES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,
	2004			2003
(Dollars in thousands, except par values)	(Unaudited)

ASSETS:

Cash	$	5,777		$	3,209
Cash held in escrow		8,369			9,575
Mortgage loans held for sale		47,702			65,929
Inventories:
Single-family lots, land and land development costs		427,460			365,979
Houses under construction		249,611			211,842
Model homes and furnishings - at cost (less accumulated depreciation: March 31, 2004 - $137;
December 31, 2003 - $121)		405			2,345
Land purchase deposits		4,641			11,460
Building, office furnishings, transportation and construction equipment – at cost (less accumulated
depreciation: March 31, 2004 - $8,289; December 31, 2003 – $7,608)		33,829			34,225
Investment in unconsolidated joint ventures and limited liability companies		14,835			13,952
Other assets		24,176			28,356

TOTAL ASSETS	$	816,805		$	746,872

LIABILITIES AND SHAREHOLDERS’ EQUITY:

LIABILITIES:
Accounts payable	$	76,203		$	55,131
Accrued compensation		7,891			26,504
Customer deposits		23,951			21,308
Other liabilities		54,742			61,906
Notes payable banks – homebuilding operations		132,000			95,000
Note payable bank - financial services operations		18,300			24,000
Mortgage notes payable		38,268			10,614
Senior subordinated notes		50,000			50,000

TOTAL LIABILITIES		401,355			344,463

Commitments and Contingencies		-			-

SHAREHOLDERS’ EQUITY:
Preferred stock - $.01 par value; authorized 2,000,000 shares; none outstanding		-			-
Common stock - $.01 par value; authorized 38,000,000 shares; issued 17,626,123 shares		176			176
Additional paid-in capital		68,200			67,026
Retained earnings		406,431			387,250
Treasury stock - at cost - 3,504,673 and 3,394,188 shares, respectively
held in treasury at March 31, 2004 and December 31, 2003		(59,357	)		(52,043	)

TOTAL SHAREHOLDERS’ EQUITY		415,450			402,409

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	816,805		$	746,872

See Notes to Unaudited Condensed Consolidated Financial Statements.


	3

M/I HOMES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,
	2004		2003
(In thousands, except per share amounts)	(Unaudited)

Revenue	$	228,664	$	208,712

Costs and expenses:
Land and housing (includes interest expense of $966 for 2004 and 2003)		167,572		153,311
General and administrative		11,310		11,498
Selling		15,667		13,318
Interest		1,823		1,284

Total costs and expenses		196,372		179,411

Income before income taxes		32,292		29,301

Provision for income taxes		12,755		11,427

Net income	$	19,537	$	17,874

Earnings per common share:
Basic	$	1.39	$	1.23
Diluted	$	1.35	$	1.20

Weighted average shares outstanding:
Basic		14,065		14,558
Diluted		14,435		14,901

Dividends per common share	$	.025	$	.025

See Notes to Unaudited Condensed Consolidated Financial Statements.


	4

M/I HOMES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

Three Months Ended March 31, 2004

(Unaudited)

Common Stock

Additional

Total

Paid-In

Retained

Treasury

Shareholders'

(Dollars in thousands, except per share amounts)

Outstanding

Amount

Capital

Earnings

Stock

Equity

Balance at December 31, 2003

14,231,935

176

67,026

387,250

(52,043

)

402,409

Net income