M/I Homes Sells Land
For $82M, Exits Market
by Dow Jones Newswires
From The Wall Street Journal Online
January 01, 2008
M/I Homes Inc. (MHO) Monday said it has sold land located primarily in Florida to various buyers for $82 million and that it is exiting the West Palm Beach housing market.
The home builder said as a result of the lot sales, it will book pretax land impairment charges of about $80 million in the fourth quarter, and expects to see a $50 million cash tax refund in the second quarter of 2008.
M/I Homes said it is "likely" that further impairment charges will be recorded in the fourth quarter.
The company said the land sold represented 3,700 lots; at the end of the third quarter, it owned 16,767 lots.
"Today's announcement supports and advances our strategic objectives of strengthening our balance sheet, reducing our debt, reducing operating costs, and focusing on markets where we believe we have the best opportunity for acceptable and consistent returns," said Chief Executive Robert Schottenstein in a statement.
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