Document:

MHO-2011.12-31-Exh 99.1

Exhibit 99.1

M/I Homes Reports 
Fourth Quarter and Year-End Results 

Columbus, Ohio (February 2, 2012) - M/I Homes, Inc. (NYSE:MHO) announced results for its fourth quarter and year ended December 31, 2011.

2011 Fourth Quarter Results:
		
	•
	Adjusted pre-tax income from operations of $1.4 million

		
	•
	New contracts increased 10%

		
	•
	Homes delivered increased 3%

		
	•
	Adjusted operating gross margin percentage of 18.4% vs. 16.1%  in 2010's fourth quarter

		
	•
	Backlog units and value increased 27% and 34%, respectively

		
	•
	Net loss of $3.0 million, after $4.5 million of asset impairments

		
	•
	Adjusted EBITDA of $10.7 million

		
	•
	Cash balance of $101.1 million, including $51.0 million of unrestricted cash

		
	•
	Net debt to net capital ratio of 42%

 
For the 2011 fourth quarter, the Company reported a net loss of $3.0 million, or $0.16 per share.  The loss consists primarily of $1.4 million of adjusted pre-tax income from operations, offset by $4.5 million of asset impairments.  In 2010's fourth quarter, the Company reported a net loss of $11.1 million, or $0.60 per share, consisting primarily of a $2.4 million adjusted pre-tax loss from operations and an $8.4 million loss on the early retirement of senior notes due in 2012.  The Company reported a net loss of $33.9 million for the year ended December 31, 2011, or $1.81 per share, compared to a net loss of $26.3 million, or $1.42 per share for 2010.  The current year loss consists primarily of a $10.9 million adjusted pre-tax loss from operations and $23.0 million of asset impairments.  For the year ended December 31, 2010, the Company had a $7.7 million adjusted pre-tax loss from operations; $13.2 million of asset impairments; and an $8.4 million loss on the early retirement of debt.  
 
New contracts increased 10% in 2011's fourth quarter to 505 compared to 460 in 2010's same period.  For the year, new contracts increased 3% from 2,316 in 2010 to 2,381 for the twelve months ended December 31, 2011. M/I Homes had 122 active communities at December 31, 2011 compared to 110 a year-ago.  The Company's cancellation rate was 23% in the fourth quarter of 2011, compared to 25% in 2010's fourth quarter and for the year it was 19%.  

Homes delivered in 2011's fourth quarter were 667 compared to 650 in 2010's fourth quarter.  Homes delivered for the twelve months ended December 31, 2011 decreased 6% to 2,278 compared to 2010's deliveries of 2,434.  The sales value of homes in backlog at December 31, 2011 was $181 million, with backlog units of 676 and an average sales price of $267,000.  The backlog of homes at December 31, 2010 had a sales value of $135 million, with backlog units of 532 and an average sales price of $254,000. 
 
Robert H. Schottenstein, Chief Executive Officer and President, commented, “We are very pleased to report positive adjusted pre-tax income from operations of $1.4 million for the fourth quarter.  This represents a significant improvement 

from the operating loss in last year's fourth quarter and continues a trend of quarter-by-quarter improvement in our operating results for the year.  The improvement in our performance is due to a number of factors including controlling costs, improved operating efficiencies and better gross margins. Specifically, with respect to margins, our adjusted gross margin for the fourth quarter was 18.4% and improved sequentially in each quarter during the year.  This improvement, which is 230 basis points better than last year's fourth quarter, is largely due to a strategic shift in our mix of  communities towards newer, better performing locations.  We opened 46 new communities during 2011 and increased our community count by 11% during the year, with our Southern and Mid-Atlantic region community count increasing by 47% and 17%, respectively.  For the quarter, nearly 70% of our deliveries came from new communities (i.e., those opened for sale since January, 2009). We are also pleased to report a 10% increase in new contracts for the quarter and that we ended the year with units in backlog 27% higher than a year ago, representing our highest year-end backlog unit level since 2007. In addition, we posted our tenth consecutive quarter of positive EBITDA.” 
 
Mr. Schottenstein continued, “Our financial condition remains strong.  We ended the year with $101 million in cash, a 42% net debt to capital ratio, and no outstanding borrowings under our $140 million credit facility. And, we are pleased to report that earlier this week, we finalized an extension of our credit facility, extending its maturity by 18 months to December 2014.” 
 
Mr. Schottenstein concluded, "As we begin 2012, housing forecasts are increasingly more positive with many suggesting that market conditions have finally bottomed. Clearly, there appears to be a greater sense of optimism. We remain relentlessly focused on returning to profitability and will continue to manage accordingly."

The Company will broadcast live its earnings conference call today at 4:00 p.m. Eastern Time. To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the “Investors” section of the site, and select “Listen to the Conference Call.”  A replay of the call will continue to be available on our website through February 2013.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having delivered over 80,000 homes.  The Company's homes are marketed and sold under the trade names M/I Homes, Showcase Homes and TriStone Homes.  The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Chicago, Illinois; Indianapolis, Indiana; Tampa and Orlando, Florida; Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities and various governmental rules and regulations, as more fully discussed in the Risk Factors section in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.
 
In this press release, we use the following non-GAAP financial measures:  adjusted operating gross margin, adjusted operating gross margin percentage, adjusted pre-tax income (loss) from operations, and adjusted EBITDA. For these measures, we have provided reconciliations to the most comparable GAAP measures along with an explanation of the usefulness of the non-GAAP measures. Please see the “Non-GAAP Financial Results / Reconciliations” table below.
 
Contact M/I Homes, Inc.
Phillip G. Creek, Executive Vice President, Chief Financial Officer, (614) 418-8011

Ann Marie W. Hunker, Vice President, Controller, (614) 418-8225
Kevin C. Hake, Senior Vice President, Treasurer (614) 418-8227

M/I Homes, Inc. and Subsidiaries
Summary Operating Results (Unaudited)
(Dollars in thousands, except per share amounts)

	
																
	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	 
	2011
	 
	2010
	 
	2011
	 
	2010

	New contracts
	505
	

	 
	460
	

	 
	2,381
	

	 
	2,316
	

	Average community count
	121
	

	 
	109
	

	 
	116
	

	 
	108
	

	Cancellation rate
	23
	%
	 
	25
	%
	 
	19
	%
	 
	20
	%

	Backlog units
	 
	 
	 
	 
	676
	

	 
	532
	

	Backlog value
	 
	 
	 
	 
	$
	180,655
	

	 
	$
	135,246
	

	 
	 
	 
	 
	 
	 
	 
	 

	Homes delivered
	667
	

	 
	650
	

	 
	2,278
	

	 
	2,434
	

	Average home closing price
	$
	257
	

	 
	$
	246
	

	 
	$
	242
	

	 
	$
	247
	

	 
	 
	 
	 
	 
	 
	 
	 

	Homebuilding revenue:
	 
	 
	 
	 
	 
	 
	 

	   Housing revenue
	$
	171,687
	

	 
	$
	160,216
	

	 
	$
	550,848
	

	 
	$
	600,732
	

	   Land revenue
	—
	

	 
	1,322
	

	 
	1,110
	

	 
	1,408
	

	Total homebuilding revenue
	$
	171,687
	

	 
	$
	161,538
	

	 
	$
	551,958
	

	 
	$
	602,140
	

	 
	 
	 
	 
	 
	 
	 
	 

	   Financial services revenue
	5,099
	

	 
	3,437
	

	 
	14,466
	

	 
	14,237
	

	 
	 
	 
	 
	 
	 
	 
	 

	Total revenue
	$
	176,786
	

	 
	$
	164,975
	

	 
	$
	566,424
	

	 
	$
	616,377
	

	 
	 
	 
	 
	 
	 
	 
	 

	Cost of sales - operations
	144,244
	

	 
	138,378
	

	 
	467,130
	

	 
	513,218
	

	Cost of sales - impairment / other
	3,980
	

	 
	1,332
	

	 
	21,993
	

	 
	10,728
	

	Gross margin
	28,562
	

	 
	25,265
	

	 
	77,301
	

	 
	92,431
	

	General and administrative expense
	14,600
	

	 
	14,357
	

	 
	52,664
	

	 
	53,958
	

	Selling expense
	12,913
	

	 
	11,602
	

	 
	43,534
	

	 
	48,084
	

	Operating profit (loss)
	1,049
	

	 
	(694
	)
	 
	(18,897
	)
	 
	(9,611
	)

	Loss on extinguishment of debt
	—
	

	 
	8,378
	

	 
	—
	

	 
	8,378
	

	Interest expense
	4,121
	

	 
	3,243
	

	 
	15,005
	

	 
	9,415
	

	Loss before income taxes
	(3,072
	)
	 
	(12,315
	)
	 
	(33,902
	)
	 
	(27,404
	)

	Benefit for income taxes
	(96
	)
	 
	(1,258
	)
	 
	(25
	)
	 
	(1,135
	)

	Net loss
	(2,976
	)
	 
	(11,057
	)
	 
	(33,877
	)
	 
	(26,269
	)

	Net loss per share
	$
	(0.16
	)
	 
	$
	(0.60
	)
	 
	$
	(1.81
	)
	 
	$
	(1.42
	)

	 
	 
	 
	 
	 
	 
	 
	 

	Weighted average shares outstanding:
	 
	 
	 
	 
	 
	 
	 

	Basic
	18,736
	

	 
	18,523
	

	 
	18,698
	

	 
	18,523
	

	Diluted
	18,736
	

	 
	18,523
	

	 
	18,698
	

	 
	18,523
	

M/I Homes, Inc. and Subsidiaries
Summary Balance Sheet and Other Information (unaudited)
(Dollars in thousands, except per share amounts)

	
								
	 
	As of

	 
	December 31,

	 
	2011
	 
	2010

	Assets:
	 
	 
	 

	Total cash and cash equivalents(1)
	$
	101,127
	

	 
	$
	123,131
	

	Mortgage loans held for sale
	57,275
	

	 
	43,312
	

	Inventory:
	 
	 
	 

	Lots, land and land development
	242,372
	

	 
	262,960
	

	Homes under construction
	181,483
	

	 
	151,524
	

	Other inventory
	42,917
	

	 
	36,452
	

	Total inventory
	$
	466,772
	

	 
	$
	450,936
	

	 
	 
	 
	 

	Property and equipment - net
	14,358
	

	 
	16,554
	

	Investments in unconsolidated joint ventures
	10,357
	

	 
	10,589
	

	Income tax receivable
	592
	

	 
	994
	

	Other assets(2)
	14,004
	

	 
	16,378
	

	Total Assets
	$
	664,485
	

	 
	$
	661,894
	

	 
	 
	 
	 

	Liabilities:
	 
	 
	 

	Debt - Homebuilding Operations:
	 
	 
	 

	Senior notes
	$
	239,016
	

	 
	$
	238,610
	

	Notes payable - other
	5,801
	

	 
	5,853
	

	Total Debt - Homebuilding Operations
	$
	244,817
	

	 
	$
	244,463
	

	 
	 
	 
	 

	Note payable bank - financial services operations
	52,606
	

	 
	32,197
	

	Total Debt
	$
	297,423
	

	 
	$
	276,660
	

	 
	 
	 
	 

	Accounts payable
	41,256
	

	 
	29,030
	

	Other liabilities
	52,456
	

	 
	52,713
	

	Total Liabilities
	$
	391,135
	

	 
	$
	358,403
	

	 
	 
	 
	 

	Shareholders' Equity
	273,350
	

	 
	303,491
	

	Total Liabilities and Shareholders' Equity
	$
	664,485
	

	 
	$
	661,894
	

	 
	 
	 
	 

	Book value per common share
	$
	9.25
	

	 
	$
	10.99
	

	Net debt/net capital ratio(3)
	42
	%
	 
	34
	%

		
	(1)
	2011 and 2010 amounts include $50.1 million and $41.9 million of restricted cash and cash held in escrow, respectively.

		
	(2)
	2011 and 2010 amounts include gross deferred tax assets of $140.8 million and $127.9 million, respectively, net of valuation allowances of $140.8 million and $127.9 million, respectively.

		
	(3)
	Net debt/net capital ratio is calculated as total debt minus total cash and cash equivalents, divided by the sum of total debt minus total cash and cash equivalents plus shareholders' equity.

M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data
(Dollars in thousands)

	
																
	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	 
	2011
	 
	2010
	 
	2011
	 
	2010

	 
	 
	 
	 
	 
	 
	 
	 

	Adjusted operating gross margin(1)
	$
	32,542
	

	 
	$
	26,597
	

	 
	$
	99,294
	

	 
	$
	103,159
	

	Adjusted operating gross margin %
	18.4
	%
	 
	16.1
	%
	 
	17.5
	%
	 
	16.7
	%

	 
	 
	 
	 
	 
	 
	 
	 

	Adjusted pre-tax income (loss) from operations(1)
	$
	1,442
	

	 
	$
	(2,382
	)
	 
	$
	(10,935
	)
	 
	$
	(7,678
	)

	 
	 
	 
	 
	 
	 
	 
	 

	Adjusted EBITDA(1)
	$
	10,702
	

	 
	$
	6,588
	

	 
	$
	23,344
	

	 
	$
	26,551
	

	 
	 
	 
	 
	 
	 
	 
	 

	Cash flow (used in) provided by operating activities
	$
	(18,197
	)
	 
	$
	5,685
	

	 
	$
	(42,763
	)
	 
	$
	(37,302
	)

	Cash provided by (used in) investing activities
	$
	1,399
	

	 
	$
	(3,810
	)
	 
	$
	(9,324
	)
	 
	$
	(22,361
	)

	Cash provided by (used in) financing activities
	$
	20,960
	

	 
	$
	35,439
	

	 
	$
	21,870
	

	 
	$
	30,941
	

	 
	 
	 
	 
	 
	 
	 
	 

	Land/lot purchases
	$
	15,696
	

	 
	$
	16,730
	

	 
	$
	72,312
	

	 
	$
	110,746
	

	Land development spending
	$
	11,460
	

	 
	$
	12,579
	

	 
	$
	44,942
	

	 
	$
	42,228
	

	Land/lot sale proceeds
	$
	—
	

	 
	$
	1,322
	

	 
	$
	1,110
	

	 
	$
	1,408
	

	 
	 
	 
	 
	 
	 
	 
	 

	Financial services pre-tax income
	$
	2,128
	

	 
	$
	1,065
	

	 
	$
	5,687
	

	 
	$
	5,564
	

	 
	 
	 
	 
	 
	 
	 
	 

	Deferred tax asset valuation allowance
	$
	(1,293
	)
	 
	$
	5,113
	

	 
	$
	(12,950
	)
	 
	$
	10,797
	

Impairment and Abandonments by Region
(Dollars in thousands)

	
																
	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	Impairment by Region:
	2011
	 
	2010
	 
	2011
	 
	2010

	Midwest
	$
	2,015
	

	 
	$
	552
	

	 
	$
	13,457
	

	 
	$
	3,665
	

	Southern
	149
	

	 
	657
	

	 
	6,703
	

	 
	4,374
	

	Mid-Atlantic
	1,816
	

	 
	123
	

	 
	1,833
	

	 
	4,499
	

	Total
	$
	3,980
	

	 
	$
	1,332
	

	 
	$
	21,993
	

	 
	$
	12,538
	

	 
	 
	 
	 
	 
	 
	 
	 

	Abandonments by Region:
	 
	 
	 
	 
	 
	 
	 

	Midwest
	$
	298
	

	 
	$
	104
	

	 
	$
	441
	

	 
	$
	198
	

	Southern
	33
	

	 
	65
	

	 
	89
	

	 
	160
	

	Mid-Atlantic
	203
	

	 
	54
	

	 
	444
	

	 
	262
	

	Total
	$
	534
	

	 
	$
	223
	

	 
	$
	974
	

	 
	$
	620
	

		
	(1)
	See “Non-GAAP Financial Results / Reconciliations” table below.

M/I Homes, Inc. and Subsidiaries
Non-GAAP Financial Results / Reconciliations
(Dollars in thousands)

	
																
	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	 
	2011
	 
	2010
	 
	2011
	 
	2010

	Gross margin
	$
	28,562
	

	 
	$
	25,265
	

	 
	$
	77,301
	

	 
	$
	92,431
	

	Add: Impairments
	3,980
	

	 
	1,332
	

	 
	21,993
	

	 
	12,538
	

	       Imported drywall charges
	—
	

	 
	—
	

	 
	—
	

	 
	(1,810
	)

	Adjusted operating gross margin
	$
	32,542
	

	 
	$
	26,597
	

	 
	$
	99,294
	

	 
	$
	103,159
	

	 
	 
	 
	 
	 
	 
	 
	 

	Loss before income taxes
	$
	(3,072
	)
	 
	$
	(12,315
	)
	 
	$
	(33,902
	)
	 
	$
	(27,404
	)

	Add: Impairments and abandonments
	4,514
	

	 
	1,555
	

	 
	22,967
	

	 
	13,158
	

	      Imported drywall charges
	—
	

	 
	—
	

	 
	—
	

	 
	(1,810
	)

	      Other loss
	—
	

	 
	8,378
	

	 
	—
	

	 
	8,378
	

	Adjusted pre-tax income (loss) from operations
	$
	1,442
	

	 
	$
	(2,382
	)
	 
	$
	(10,935
	)
	 
	$
	(7,678
	)

	 
	 
	 
	 
	 
	 
	 
	 

	Net loss
	$
	(2,976
	)
	 
	$
	(11,057
	)
	 
	$
	(33,877
	)
	 
	$
	(26,269
	)

	Add (subtract):
	 
	 
	 
	 
	 
	 
	 

	Income taxes
	(96
	)
	 
	(1,258
	)
	 
	(25
	)
	 
	(1,135
	)

	Interest expense net of interest income
	3,752
	

	 
	2,941
	

	 
	13,889
	

	 
	8,202
	

	Interest amortized to cost of sales
	3,277
	

	 
	3,435
	

	 
	10,949
	

	 
	13,339
	

	Depreciation and amortization
	1,889
	

	 
	1,962
	

	 
	7,574
	

	 
	8,067
	

	 Other loss
	—
	

	 
	8,378
	

	 
	—
	

	 
	8,378
	

	Non-cash charges
	4,856
	

	 
	2,187
	

	 
	24,834
	

	 
	15,969
	

	Adjusted EBITDA
	$
	10,702
	

	 
	$
	6,588
	

	 
	$
	23,344
	

	 
	$
	26,551
	

Adjusted operating gross margin, adjusted operating gross margin percentage, adjusted pre-tax (loss) income from operations and adjusted EBITDA are non-GAAP financial measures. Management finds these measures to be useful in evaluating the Company's performance because they disclose the financial results generated from homes the Company actually delivered during the period, as the asset impairments and certain other write-offs relate, in part, to inventory that was not delivered during the period. They also assist the Company's management in making strategic decisions regarding the Company's future operations. The Company believes investors will also find these measures to be important and useful because they disclose financial  measures that can be compared to a prior period without regard to the variability of asset impairments and certain other write-offs and unusual charges. In addition, to the extent that the Company's competitors provide similar information, disclosure of these measures helps readers of the Company's financial statements compare the Company's financial results to the results of its competitors with regard to the homes they deliver in the same period. Because these measures are not calculated in accordance with GAAP, they may not be completely comparable to similarly titled measures of the Company's competitors due to potential differences in methods of calculation and charges being excluded.  Due to the significance of the GAAP components excluded, such measures should not be considered in isolation or as an alternative to operating performance measures prescribed by GAAP.  Adjusted EBITDA is also presented in accordance with the terms of our revolving credit facility. 

M/I Homes, Inc. and Subsidiaries
Selected Supplemental Financial and Operating Data

	
																		
	 
	NEW CONTRACTS

	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	 
	 
	 
	 
	 
	%
	 
	 
	 
	 
	 
	%

	Region
	2011
	 
	2010
	 
	Change
	 
	2011
	 
	2010
	 
	Change

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Midwest
	196
	

	 
	221
	

	 
	(11
	)%
	 
	1,042
	

	 
	1,215
	

	 
	(14
	)%

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Southern
	156
	

	 
	96
	

	 
	63
	 %
	 
	607
	

	 
	461
	

	 
	32
	 %

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mid-Atlantic
	153
	

	 
	143
	

	 
	7
	 %
	 
	732
	

	 
	640
	

	 
	14
	 %

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Total
	505
	

	 
	460
	

	 
	10
	 %
	 
	2,381
	

	 
	2,316
	

	 
	3
	 %

	
																		
	 
	HOMES DELIVERED

	 
	Three Months Ended
	 
	Twelve Months Ended

	 
	December 31,
	 
	December 31,

	 
	 
	 
	 
	 
	%
	 
	 
	 
	 
	 
	%

	Region
	2011
	 
	2010
	 
	Change
	 
	2011
	 
	2010
	 
	Change

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Midwest
	250
	

	 
	329
	

	 
	(24
	)%
	 
	991
	

	 
	1,296
	

	 
	(24
	)%

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Southern
	176
	

	 
	106
	

	 
	66
	 %
	 
	571
	

	 
	429
	

	 
	33
	 %

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mid-Atlantic
	241
	

	 
	215
	

	 
	12
	 %
	 
	716
	

	 
	709
	

	 
	1
	 %

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Total
	667
	

	 
	650
	

	 
	3
	 %
	 
	2,278
	

	 
	2,434
	

	 
	(6
	)%

	
																						
	 
	BACKLOG

	 
	December 31, 2011
	 
	December 31, 2010

	 
	 
	 
	Dollars
	 
	Average
	 
	 
	 
	Dollars
	 
	Average

	Region
	Units
	 
	(millions)
	 
	Sales Price
	 
	Units
	 
	(millions)
	 
	Sales Price

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Midwest
	387
	

	 
	$
	100
	

	 
	$
	259,000
	

	 
	336
	

	 
	$
	83
	

	 
	$
	247,000
	

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Southern
	164
	

	 
	$
	40
	

	 
	$
	241,000
	

	 
	87
	

	 
	$
	19
	

	 
	$
	218,000
	

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mid-Atlantic
	125
	

	 
	$
	41
	

	 
	$
	328,000
	

	 
	109
	

	 
	$
	33
	

	 
	$
	304,000
	

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Total
	676
	

	 
	$
	181
	

	 
	$
	267,000
	

	 
	532
	

	 
	$
	135
	

	 
	$
	254,000
	

	
															
	 
	LAND POSITION SUMMARY

	 
	December 31, 2011
	 
	 
	December 31, 2010

	 
	Lots
	Lots Under
	 
	 
	 
	Lots
	Lots Under
	 

	Region
	Owned
	Contract
	Total
	 
	 
	Owned
	Contract
	Total

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Midwest
	3,903
	

	795
	

	4,698
	

	 
	 
	4,184
	

	1,318
	

	5,502
	

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Southern
	1,460
	

	964
	

	2,424
	

	 
	 
	1,384
	

	209
	

	1,593
	

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Mid-Atlantic
	1,794
	

	1,437
	

	3,231
	

	 
	 
	2,043
	

	1,032
	

	3,075
	

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Total
	7,157
	

	3,196
	

	10,353
	

	 
	 
	7,611
	

	2,559
	

	10,17010.1 - 01

	
			
	Exhibit No.
	 
	Description

	 
	 
	 

	10.1
	 
	First Amendment to the Credit and Security Agreement, dated as of January 30, 2012, among Shiloh Industries, Inc., the other lenders party thereto, The Privatebank and Trust Company as co-lead arranger, sole book runner and administrative agent, PNC Capital Markets, LLC as co-lead arranger and PNC Bank, National Association as syndication agent.

FIRST AMENDMENT AGREEMENT
This FIRST AMENDMENT AGREEMENT (this “Amendment”) is made as of the 31st day of January, 2012 among:
(a)    SHILOH INDUSTRIES, INC., a Delaware corporation (“Borrower”);

(b)    the Lenders, as defined in the Credit Agreement, as hereinafter defined; 

(c)    THE PRIVATEBANK AND TRUST COMPANY, as the co-lead arranger, sole book runner and administrative agent for the Lenders under the Credit Agreement (Agent”);

(d)    PNC CAPITAL MARKETS, LLC, as co-lead arranger; and

(e)    PNC BANK, NATIONAL ASSOCIATION, as syndication agent.

WHEREAS, Borrower, Agent and the Lenders are parties to that certain Credit and Security Agreement, dated as of April 19, 2011, that provides, among other things, for loans and letters of credit aggregating Eighty Million Dollars ($80,000,000), all upon certain terms and conditions (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”);

WHEREAS, Borrower, Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof and add certain provisions thereto; 

WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as of the date of this Amendment;

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower, Agent and the Lenders agree as follows:

1.    Amendment to Definitions in the Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended to delete the definition of “Fixed Charge Coverage Ratio” therefrom and to insert in place thereof the following:

“Fixed Charge Coverage Ratio” means, as determined for the most recently completed four fiscal quarters of Borrower, on a Consolidated basis, the ratio of (a) (i) Consolidated EBITDA, minus (ii) the sum of (A) Consolidated Unfunded Capital Expenditures, and (B) Capital Distributions (other than the 2012 Special Dividend); to (b) Consolidated Fixed Charges.

2.    Additions to Definitions in the Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended to add the following new definitions thereto:

“2012 Special Dividend” means the one-time cash dividend by Borrower to its shareholders, made on or before February 29, 2012, in an aggregate amount not to exceed Eight Million Five Hundred Thousand Dollars ($8,500,000). 

“JCI” means Johnson Controls, Inc., a Wisconsin corporation. 

“JCI Supplier Financing Program” means the JCI supplier financing program, whereby a Company may sell all or a portion of its Accounts owing from JCI (or a subsidiary or affiliate of JCI) to a third party financial institution on terms comparable to other vendors of JCI participating in such supplier financing program.

“Nissan” means Nissan North America, Inc., a California corporation. 

“Nissan Supplier Financing Program” means the Nissan supplier financing program, whereby a Company may sell all or a portion of its Account owing from Nissan (or a subsidiary or affiliate of Nissan) to a third party financial institution on terms comparable to other vendors of Nissan participating in such supplier financing program.

3.    Addition to Financial Statements and Information Covenant Provisions.  Section 5.3 of the Credit Agreement is hereby amended to add the following new subsections (h) and (i) thereto:

(h)    Supplier Financing Agreements.  Borrower shall deliver to Agent and the Lenders, within three Business Days of entering into any supplier financing agreement pursuant to Section 5.12(g) or (h) hereof, a copy of all agreements entered into by Borrower in connection therewith.

(i)    Accounts Sold Pursuant to Supplier Purchase Agreements.  Borrower shall deliver to Agent, as frequently as Agent or any Lender may request, a report detailing all Account sales made pursuant to Section 5.12(g) and (h) hereof, including a listing of all such previous Account sales and the payment status of each such Account sale, to be in form and substance reasonably satisfactory to Agent.  

4.    Additions to Merger and Sale of Assets Covenant Provisions.  Section 5.12 of the Credit Agreement is hereby amended to add the following new subsections (g) and (h) at the end thereof:

(g)    a Company may sell Accounts of such Company (i) owed by JCI (or any subsidiary or affiliate of JCI) pursuant to the JCI Supplier Financing Program, or (ii) owed by Nissan (or any subsidiary or affiliate of Nissan) pursuant to the Nissan Supplier Financing Program, so long as, in the case of both (i) and (ii) above, there is no credit recourse to such Company with respect to such Accounts after such sale; and

(h)    in addition to the transfers of assets permitted pursuant to Section 5.12(g) hereof, if requested by a customer of a Company, such Company shall be permitted to participate in such customer's supplier financing program whereby such Company may sell all or a portion of its Accounts from such customer to a third party financial institution on terms comparable to other vendors of such customer participating in such supplier financing program, so long as (i) there shall be no credit recourse to such Company with respect to such Accounts after such sale, and (ii) the aggregate amount of sales of Accounts pursuant to this Section 5.12(h), for all Companies pursuant to all such supplier 

financing programs, does not exceed the aggregate amount of Twelve Million Dollars ($12,000,000) per fiscal year of Borrower.

5.    Closing Deliveries.  Concurrently with the execution of this Amendment, Borrower shall:

(a)    pay an amendment fee to Agent, for the pro-rata benefit of the Lenders, in an amount equal to five (5.00) basis points multiplied by the Revolving Amount;

(b)    cause each Guarantor of Payment to execute the attached Guarantor Acknowledgment and Agreement; and

(c)    pay all legal fees and expenses of Agent in connection with this Amendment and any other Loan Documents.  

6.    Authorization to Execute Lien Priority Agreements.  Agent is hereby authorized by the Lenders to execute and deliver one or more lien priority agreements on behalf of the Lenders in connection with a Company's participation in a customer's supplier financing program permitted pursuant to Section 5.12(g) or (h) of the Credit Agreement.

7.    Representations and Warranties.  Borrower hereby represents and warrants  to Agent and the Lenders that (a) Borrower has the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to execute and deliver the same and bind Borrower with respect to the provisions hereof; (c) the execution and delivery hereof by Borrower and the performance and observance by Borrower of the provisions hereof do not violate or conflict with the Organizational Documents of Borrower or any law applicable to Borrower or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against Borrower; (d) no Default or Event of Default exists, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties contained in the Loan Documents is true and correct in all material respects as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty expressly states that it relates to an earlier date (in which case such representation or warranty is true and correct in all material respects as of such earlier date); (f) Borrower is not aware of any claim or offset against, or defense or counterclaim to, Borrower's obligations or liabilities under the Credit Agreement or any other Related Writing; and (g) this Amendment constitutes a valid and binding obligation of Borrower in every respect, enforceable in accordance with its terms.

8.    Waiver and Release.  Borrower, by signing below, hereby waives and releases Agent, and each of the Lenders, and their respective directors, officers, employees, attorneys, affiliates and subsidiaries, from any and all claims, offsets, defenses and counterclaims of which Borrower is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 

9.     References to Credit Agreement and Ratification.  Each reference to the Credit Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  Except as otherwise specifically provided herein, all terms and provisions of the Credit Agreement are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document.

10.    Counterparts.  This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile or other electronic signature, each of which, when 

so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

11.    Headings.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

12.    Severability.  Any provision of this Amendment that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

13.    Governing Law.  The rights and obligations of all parties hereto shall be governed by the laws of the State of Ohio, without regard to principles of conflicts of laws.

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11643887.8

JURY TRIAL WAIVER.  BORROWER, AGENT AND THE LENDERS, TO THE EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE ABILITY OF AGENT OR THE LENDERS TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG BORROWER, AGENT AND THE LENDERS.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first set forth above.

	
			
	 
	SHILOH INDUSTRIES, INC.

                    
  
  

	 
	By:
	/s/ Thomas M. Dugan

	 
	 
	Thomas M. Dugan

	 
	 
	Vice President of Finance and Treasurer

	 
	 
	 

	 
	THE PRIVATEBANK AND TRUST
   COMPANY, as Agent and as a Lender

     

	 
	 
	 

	 
	By:
	/s/ Robert M. Walker

	 
	 
	Robert M. Walker

	 
	 
	Managing Director

	
			
	 
	PNC BANK, NATIONAL ASSOCIATION,
   as Syndication Agent and as a Lender

	 
	By:
	/s/ George C. Reider

	 
	 
	George C. Reider

	 
	 
	Vice President

	
			
	 
	THE HUNTINGTON NATIONAL BANK

	 
	By:
	/s/ Brian H. Gallagher

	 
	 
	Brian H. Gallagher

	 
	 
	Vice President

	
			
	 
	RBS CITIZENS, NATIONAL ASSOCIATION

	 
	By:
	/s/ Patrick F. Dunphy

	 
	 
	Patrick F. Dunphy

	 
	 
	Senior Vice President

	
			
	 
	FIRSTMERIT BANK, N.A.

	 
	By:
	/s/ Robert G. Morlan

	 
	 
	Robert G. Morlan

	 
	 
	Vice President

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

The undersigned consent and agree to and acknowledge the terms of the foregoing First Amendment Agreement dated as of January 31, 2012.  The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned are hereby ratified and shall remain in full force and effect and be unaffected hereby.

The undersigned hereby waive and release Agent and the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of any kind or nature, absolute and contingent, of which the undersigned are aware or should be aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY THE ABILITY OF AGENT AND LENDERS TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG BORROWER, AGENT, LENDERS AND THE UNDERSIGNED.

	
				
	 
	SHILOH CORPORATION
GREENFIELD DIE & MANUFACTURING 
  

	 
	JEFFERSON BLANKING INC.

                                                               
Thomas M. Dugan
Vice President of Finance

	 
	   CORP.

	By:
	/s/ Thomas M. Dugan

	 
	SHILOH AUTOMOTIVE, INC.
	 
	Thomas M. Dugan

	 
	SHILOH INDUSTRIES, INC. DICKSON
	 
	Vice President of Finance

	 
	   MANUFACTURING DIVISION

	 
	 

	 
	LIVERPOOL COIL PROCESSING,
	By:
	/s/ Michael Randall

	 
	   INCORPORATED
	 
	Michael Randall

	 
	MEDINA BLANKING, INC.
	 
	Assistant Secretary

	 
	THE SECTIONAL DIE COMPANY
SECTIONAL STAMPING, INC.

	 
	 

	 
	 
	 
	 

	By:
	/s/ Thomas M. Dugan
	 
	 

	 
	Thomas M. Dugan
	 
	 

	 
	Vice President of Finance

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