Completed previously authorized $100 million share repurchase program
SCOTTSDALE, Ariz., Jan. 30, 2019 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2018.
Summary Operating Results (unaudited) | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||
2018 | 2017 | % Chg | 2018 | 2017 | % Chg | ||||||||||||||||
Homes closed (units) | 2,505 | 2,253 | 11 | % | 8,531 | 7,709 | 11 | % | |||||||||||||
Home closing revenue | $ | 996,063 | $ | 923,370 | 8 | % | $ | 3,474,712 | $ | 3,186,775 | 9 | % | |||||||||
Average sales price - closings | $ | 398 | $ | 410 | (3 | )% | $ | 407 | $ | 413 | (1 | )% | |||||||||
Home orders (units) | 1,653 | 1,795 | (8 | )% | 8,089 | 7,957 | 2 | % | |||||||||||||
Home order value | $ | 644,210 | $ | 760,340 | (15 | )% | $ | 3,240,091 | $ | 3,296,788 | (2 | )% | |||||||||
Average sales price - orders | $ | 390 | $ | 424 | (8 | )% | $ | 401 | $ | 414 | (3 | )% | |||||||||
Ending backlog (units) | 2,433 | 2,875 | (15 | )% | |||||||||||||||||
Ending backlog value | $ | 1,015,918 | $ | 1,245,771 | (18 | )% | |||||||||||||||
Average sales price - backlog | $ | 418 | $ | 433 | (4 | )% | |||||||||||||||
Earnings before income taxes | $ | 91,776 | $ | 84,090 | 9 | % | $ | 283,254 | $ | 247,519 | 14 | % | |||||||||
Net earnings | $ | 75,485 | $ | 35,553 | 112 | % | $ | 227,332 | $ | 143,255 | 59 | % | |||||||||
Diluted EPS | $ | 1.91 | $ | 0.87 | 120 | % | $ | 5.58 | $ | 3.41 | 64 | % | |||||||||
MANAGEMENT COMMENTS
“2018 was a year of growth and transition for Meritage as well as the broader housing market. Our home closings grew 11% for the year and we increased diluted earnings per share by 64% over 2017, with a 60 bps improvement in our home closing gross margin. The strong demand early in the year waned in the later months of 2018 as rising interest rates and home prices caused buyers to delay their home purchasing decisions,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “This was most evident in higher-priced communities, while the demand for affordable entry-level homes continued to outpace the move-up market.
“We made additional progress in aligning our strategy of streamlining and driving efficiency to ultimately better serve our customers, especially the growing number of first-time buyers. Our LiVE.NOW.® communities are targeted at this large and under-served demographic of homebuyers,” explained Mr. Hilton. “The construction and operating efficiencies we’re achieving are allowing us to offer more affordable homes while also generating greater profitability. Our increased home closing gross margin was a primary driver of the 59% growth in net earnings for the year and exceeded our initial expectation for 2018.
He added, "We also strengthened our balance sheet, reducing our net debt-to-capital ratio by almost 500 bps, while returning capital to our investors through the repurchase of $100 million of our outstanding shares.
“As a result of the pause in home buying activity during the latter part of 2018, our orders for the fourth quarter were down 8% from the strong fourth quarter of 2017. Despite the order declines in the second half of the year, our full year orders were up 2% over 2017. Orders for more affordable entry-level homes expanded approximately 25% to 41% of our full year orders for 2018, up from approximately one-third of orders a year ago," he continued. “Markets like California, Denver and Dallas, which had experienced the strongest orders pace and home price appreciation over the last few years, were among those most impacted by reduced affordability and changing buyer preferences, as reflected in our fourth quarter year-over-year order trends, and we are in the process of ramping up our entry-level communities in those markets.
"As we continue the transition to more entry-level communities for the Millennial generation, as well as Baby Boomers looking to move down into a new home, we believe we’re well positioned to address what is expected to be the strongest part of the market for the next decade," concluded Mr. Hilton. “While the near-term outlook is less clear, we’re confident in the longer-term opportunities, considering the underlying drivers for housing demand remain strong. Economic and job growth, household formations, higher incomes and strong consumer confidence, combined with relatively low inventories of homes for sale and the prospect of interest rates stabilizing, should continue to drive demand. We expect to share our projections for the full year 2019 next quarter after we assess market conditions with the benefit of the spring selling season.”
FOURTH QUARTER RESULTS
YEAR TO DATE RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call to discuss the results at 8:00 a.m. Arizona Time (10:00 a.m. Eastern Time) on Thursday, January 31. The call will be webcast with an accompanying slideshow available on the "Investor Relations" page of the Company's web site at http://investors.meritagehomes.com. Telephone participants can avoid delays by pre-registering for the call using the following link to receive a special dial-in number and PIN.
Conference Call registration link: http://dpregister.com/10127573
Telephone participants who are unable to pre-register may dial in to 1-866-226-4948 on the day of the call. International dial-in number is 1-412-902-4125 or 1-855-669-9657 for Canada.
A replay of the call will be available beginning at approximately 12:00 p.m. ET on January 31 and extending through February 14, 2019, on the website noted above or by dialing 1-877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10127573.
Meritage Homes Corporation and Subsidiaries | ||||||||||||||||
Consolidated Income Statements | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Homebuilding: | ||||||||||||||||
Home closing revenue | $ | 996,063 | $ | 923,370 | $ | 3,474,712 | $ | 3,186,775 | ||||||||
Land closing revenue | 12,716 | 23,055 | 38,707 | 39,997 | ||||||||||||
Total closing revenue | 1,008,779 | 946,425 | 3,513,419 | 3,226,772 | ||||||||||||
Cost of home closings | (806,550 | ) | (755,067 | ) | (2,842,762 | ) | (2,624,636 | ) | ||||||||
Cost of land closings | (13,541 | ) | (20,133 | ) | (41,504 | ) | (35,637 | ) | ||||||||
Total cost of closings | (820,091 | ) | (775,200 | ) | (2,884,266 | ) | (2,660,273 | ) | ||||||||
Home closing gross profit | 189,513 | 168,303 | 631,950 | 562,139 | ||||||||||||
Land closing (loss)/gross profit | (825 | ) | 2,922 | (2,797 | ) | 4,360 | ||||||||||
Total closing gross profit | 188,688 | 171,225 | 629,153 | 566,499 | ||||||||||||
Financial Services: | ||||||||||||||||
Revenue | 4,412 | 4,061 | 15,162 | 14,203 | ||||||||||||
Expense | (1,618 | ) | (1,552 | ) | (6,454 | ) | (6,006 | ) | ||||||||
Earnings from financial services unconsolidated entities and other, net | 5,058 | 4,185 | 15,336 | 13,858 | ||||||||||||
Financial services profit | 7,852 | 6,694 | 24,044 | 22,055 | ||||||||||||
Commissions and other sales costs | (68,040 | ) | (62,781 | ) | (241,897 | ) | (221,647 | ) | ||||||||
General and administrative expenses | (37,474 | ) | (33,192 | ) | (138,478 | ) | (124,041 | ) | ||||||||
(Loss)/earnings from other unconsolidated entities, net | (91 | ) | 1,249 | 601 | 2,101 | |||||||||||
Interest expense | (552 | ) | (292 | ) | (785 | ) | (3,853 | ) | ||||||||
Other income, net | 1,393 | 1,187 | 10,616 | 6,405 | ||||||||||||
Earnings before income taxes | 91,776 | 84,090 | 283,254 | 247,519 | ||||||||||||
Provision for income taxes | (16,291 | ) | (48,537 | ) | (55,922 | ) | (104,264 | ) | ||||||||
Net earnings | $ | 75,485 | $ | 35,553 | $ | 227,332 | $ | 143,255 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | ||||||||||||||||
Earnings per share | $ | 1.93 | $ | 0.88 | $ | 5.67 | $ | 3.56 | ||||||||
Weighted average shares outstanding | 39,026 | 40,328 | 40,107 | 40,287 | ||||||||||||
Diluted | ||||||||||||||||
Earnings per share | $ | 1.91 | $ | 0.87 | $ | 5.58 | $ | 3.41 | ||||||||
Weighted average shares outstanding | 39,575 | 41,073 | 40,728 | 42,228 | ||||||||||||
Meritage Homes Corporation and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
(In thousands) | |||||||
(unaudited) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 311,466 | $ | 170,746 | |||
Other receivables | 77,285 | 79,317 | |||||
Real estate (1) | 2,742,621 | 2,731,380 | |||||
Real estate not owned | — | 38,864 | |||||
Deposits on real estate under option or contract | 51,410 | 59,945 | |||||
Investments in unconsolidated entities | 17,480 | 17,068 | |||||
Property and equipment, net | 54,596 | 33,631 | |||||
Deferred tax asset | 26,465 | 35,162 | |||||
Prepaids, other assets and goodwill | 84,156 | 85,145 | |||||
Total assets | $ | 3,365,479 | $ | 3,251,258 | |||
Liabilities: | |||||||
Accounts payable | $ | 128,169 | $ | 140,516 | |||
Accrued liabilities | 177,862 | 181,076 | |||||
Home sale deposits | 28,636 | 34,059 | |||||
Liabilities related to real estate not owned | — | 34,978 | |||||
Loans payable and other borrowings | 14,773 | 17,354 | |||||
Senior notes | 1,295,284 | 1,266,450 | |||||
Total liabilities | 1,644,724 | 1,674,433 | |||||
Stockholders' Equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 381 | 403 | |||||
Additional paid-in capital | 501,781 | 584,578 | |||||
Retained earnings | 1,218,593 | 991,844 | |||||
Total stockholders’ equity | 1,720,755 | 1,576,825 | |||||
Total liabilities and stockholders’ equity | $ | 3,365,479 | $ | 3,251,258 | |||
(1) Real estate – Allocated costs: | |||||||
Homes under contract under construction | $ | 480,143 | $ | 566,474 | |||
Unsold homes, completed and under construction | 644,717 | 516,577 | |||||
Model homes | 146,327 | 142,026 | |||||
Finished home sites and home sites under development | 1,471,434 | 1,506,303 | |||||
Total real estate | $ | 2,742,621 | $ | 2,731,380 | |||
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited): | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Depreciation and amortization | $ | 7,508 | $ | 4,633 | $ | 26,966 | $ | 16,704 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 88,064 | $ | 76,773 | $ | 78,564 | $ | 68,196 | |||||||
Interest incurred | 21,490 | 20,846 | 85,278 | 79,045 | |||||||||||
Interest expensed | (552 | ) | (292 | ) | (785 | ) | (3,853 | ) | |||||||
Interest amortized to cost of home and land closings | (20,548 | ) | (18,763 | ) | (74,603 | ) | (64,824 | ) | |||||||
Capitalized interest, end of period | $ | 88,454 | $ | 78,564 | $ | 88,454 | $ | 78,564 | |||||||
December 31, 2018 | December 31, 2017 | ||||||||||||||
Notes payable and other borrowings | $ | 1,310,057 | $ | 1,283,804 | |||||||||||
Stockholders' equity | 1,720,755 | 1,576,825 | |||||||||||||
Total capital | 3,030,812 | 2,860,629 | |||||||||||||
Debt-to-capital | 43.2 | % | 44.9 | % | |||||||||||
Notes payable and other borrowings | $ | 1,310,057 | $ | 1,283,804 | |||||||||||
Less: cash and cash equivalents | (311,466 | ) | (170,746 | ) | |||||||||||
Net debt | 998,591 | 1,113,058 | |||||||||||||
Stockholders’ equity | 1,720,755 | 1,576,825 | |||||||||||||
Total net capital | $ | 2,719,346 | $ | 2,689,883 | |||||||||||
Net debt-to-capital | 36.7 | % | 41.4 | % | |||||||||||
Meritage Homes Corporation and Subsidiaries | |||||||
Consolidated Statements of Cash Flows | |||||||
(In thousands) (unaudited) | |||||||
Twelve Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 227,332 | $ | 143,255 | |||
Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities: | |||||||
Depreciation and amortization | 26,966 | 16,704 | |||||
Stock-based compensation | 17,170 | 12,056 | |||||
Equity in earnings from unconsolidated entities | (16,333 | ) | (15,959 | ) | |||
Deferred tax asset revaluation | (2,741 | ) | 19,687 | ||||
Distribution of earnings from unconsolidated entities | 16,142 | 15,337 | |||||
Other | 15,847 | 5,849 | |||||
Changes in assets and liabilities: | |||||||
Increase in real estate | (19,426 | ) | (301,477 | ) | |||
Decrease in deposits on real estate under option or contract | 12,444 | 21,355 | |||||
Decrease/(increase) in receivables, prepaids and other assets | 3,042 | (17,775 | ) | ||||
(Decrease)/increase in accounts payable and accrued liabilities | (12,820 | ) | 8,125 | ||||
(Decrease)/increase in home sale deposits | (5,423 | ) | 5,711 | ||||
Net cash provided by/(used in) operating activities | 262,200 | (87,132 | ) | ||||
Cash flows from investing activities: | |||||||
Investments in unconsolidated entities | $ | (808 | ) | $ | (670 | ) | |
Distributions of capital from unconsolidated entities | 597 | 1,338 | |||||
Purchases of property and equipment | (33,415 | ) | (18,096 | ) | |||
Proceeds from sales of property and equipment | 99 | 356 | |||||
Maturities/sales of investments and securities | 1,181 | 1,402 | |||||
Payments to purchase investments and securities | (1,181 | ) | (1,402 | ) | |||
Net cash used in investing activities | (33,527 | ) | (17,072 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of Credit Facility, net | $ | — | $ | (15,000 | ) | ||
Repayment of loans payable and other borrowings | (15,755 | ) | (10,970 | ) | |||
Repayment of senior notes and senior convertible notes | (175,000 | ) | (126,691 | ) | |||
Proceeds from issuance of senior notes | 206,000 | 300,000 | |||||
Payment of debt issuance costs | (3,198 | ) | (4,091 | ) | |||
Repurchase of shares | (100,000 | ) | — | ||||
Net cash (used in)/provided by financing activities | (87,953 | ) | 143,248 | ||||
Net increase in cash and cash equivalents | 140,720 | 39,044 | |||||
Beginning cash and cash equivalents | 170,746 | 131,702 | |||||
Ending cash and cash equivalents | $ | 311,466 | $ | 170,746 | |||
Meritage Homes Corporation and Subsidiaries | |||||||||||||
Operating Data | |||||||||||||
(Dollars in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||
Homes | Value | Homes | Value | ||||||||||
Homes Closed: | |||||||||||||
Arizona | 453 | $ | 141,622 | 396 | $ | 132,596 | |||||||
California | 206 | 144,179 | 261 | 153,921 | |||||||||
Colorado | 212 | 111,461 | 154 | 89,941 | |||||||||
West Region | 871 | 397,262 | 811 | 376,458 | |||||||||
Texas | 836 | 298,824 | 741 | 267,139 | |||||||||
Central Region | 836 | 298,824 | 741 | 267,139 | |||||||||
Florida | 317 | 126,136 | 296 | 127,880 | |||||||||
Georgia | 152 | 54,732 | 89 | 29,830 | |||||||||
North Carolina | 166 | 63,078 | 163 | 68,432 | |||||||||
South Carolina | 98 | 32,011 | 90 | 29,857 | |||||||||
Tennessee | 65 | 24,020 | 63 | 23,774 | |||||||||
East Region | 798 | 299,977 | 701 | 279,773 | |||||||||
Total | 2,505 | $ | 996,063 | 2,253 | $ | 923,370 | |||||||
Homes Ordered: | |||||||||||||
Arizona | 300 | $ | 98,290 | 269 | $ | 93,143 | |||||||
California | 109 | 72,227 | 248 | 169,593 | |||||||||
Colorado | 116 | 60,398 | 129 | 69,550 | |||||||||
West Region | 525 | 230,915 | 646 | 332,286 | |||||||||
Texas | 591 | 209,787 | 582 | 211,413 | |||||||||
Central Region | 591 | 209,787 | 582 | 211,413 | |||||||||
Florida | 190 | 79,632 | 216 | 90,611 | |||||||||
Georgia | 94 | 32,413 | 102 | 33,407 | |||||||||
North Carolina | 149 | 55,929 | 143 | 54,672 | |||||||||
South Carolina | 66 | 20,652 | 66 | 22,911 | |||||||||
Tennessee | 38 | 14,882 | 40 | 15,040 | |||||||||
East Region | 537 | 203,508 | 567 | 216,641 | |||||||||
Total | 1,653 | $ | 644,210 | 1,795 | $ | 760,340 | |||||||
Meritage Homes Corporation and Subsidiaries | |||||||||||||
Operating Data | |||||||||||||
(Dollars in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Twelve Months Ended | |||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||
Homes | Value | Homes | Value | ||||||||||
Homes Closed: | |||||||||||||
Arizona | 1,505 | $ | 485,867 | 1,535 | $ | 515,410 | |||||||
California | 849 | 588,975 | 963 | 581,016 | |||||||||
Colorado | 628 | 342,984 | 571 | 323,318 | |||||||||
West Region | 2,982 | 1,417,826 | 3,069 | 1,419,744 | |||||||||
Texas | 2,840 | 1,006,221 | 2,493 | 904,286 | |||||||||
Central Region | 2,840 | 1,006,221 | 2,493 | 904,286 | |||||||||
Florida | 1,078 | 455,292 | 814 | 353,554 | |||||||||
Georgia | 468 | 161,969 | 312 | 104,690 | |||||||||
North Carolina | 654 | 254,207 | 533 | 233,028 | |||||||||
South Carolina | 309 | 104,622 | 307 | 104,942 | |||||||||
Tennessee | 200 | 74,575 | 181 | 66,531 | |||||||||
East Region | 2,709 | 1,050,665 | 2,147 | 862,745 | |||||||||
Total | 8,531 | $ | 3,474,712 | 7,709 | $ | 3,186,775 | |||||||
Homes Ordered: | |||||||||||||
Arizona | 1,522 | $ | 499,353 | 1,417 | $ | 473,602 | |||||||
California | 622 | 432,134 | 1,050 | 650,287 | |||||||||
Colorado | 614 | 331,389 | 497 | 284,082 | |||||||||
West Region | 2,758 | 1,262,876 | 2,964 | 1,407,971 | |||||||||
Texas | 2,801 | 995,473 | 2,582 | 931,069 | |||||||||
Central Region | 2,801 | 995,473 | 2,582 | 931,069 | |||||||||
Florida | 1,004 | 422,925 | 1,007 | 433,365 | |||||||||
Georgia | 440 | 157,706 | 372 | 121,713 | |||||||||
North Carolina | 588 | 224,552 | 583 | 242,355 | |||||||||
South Carolina | 299 | 101,426 | 290 | 99,738 | |||||||||
Tennessee | 199 | 75,133 | 159 | 60,577 | |||||||||
East Region | 2,530 | 981,742 | 2,411 | 957,748 | |||||||||
Total | 8,089 | $ | 3,240,091 | 7,957 | $ | 3,296,788 | |||||||
Order Backlog: | |||||||||||||
Arizona | 343 | $ | 133,567 | 326 | $ | 119,535 | |||||||
California | 91 | 66,391 | 318 | 222,909 | |||||||||
Colorado | 185 | 103,470 | 199 | 114,848 | |||||||||
West Region | 619 | 303,428 | 843 | 457,292 | |||||||||
Texas | 981 | 372,826 | 1,020 | 381,517 | |||||||||
Central Region | 981 | 372,826 | 1,020 | 381,517 | |||||||||
Florida | 372 | 164,728 | 446 | 196,265 | |||||||||
Georgia | 123 | 46,344 | 151 | 50,386 | |||||||||
North Carolina | 177 | 67,316 | 243 | 96,579 | |||||||||
South Carolina | 89 | 32,333 | 99 | 35,432 | |||||||||
Tennessee | 72 | 28,943 | 73 | 28,300 | |||||||||
East Region | 833 | 339,664 | 1,012 | 406,962 | |||||||||
Total | 2,433 | $ | 1,015,918 | 2,875 | $ | 1,245,771 | |||||||
Meritage Homes Corporation and Subsidiaries | |||||||||||
Operating Data | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||
Ending | Average | Ending | Average | ||||||||
Active Communities: | |||||||||||
Arizona | 40 | 42.0 | 38 | 39.0 | |||||||
California | 17 | 15.5 | 20 | 22.0 | |||||||
Colorado | 20 | 20.0 | 11 | 10.0 | |||||||
West Region | 77 | 77.5 | 69 | 71.0 | |||||||
Texas | 95 | 93.5 | 92 | 92.5 | |||||||
Central Region | 95 | 93.5 | 92 | 92.5 | |||||||
Florida | 31 | 30.5 | 28 | 28.5 | |||||||
Georgia | 22 | 22.0 | 19 | 18.0 | |||||||
North Carolina | 25 | 22.5 | 17 | 17.5 | |||||||
South Carolina | 12 | 12.0 | 13 | 13.5 | |||||||
Tennessee | 10 | 10.0 | 6 | 6.0 | |||||||
East Region | 100 | 97.0 | 83 | 83.5 | |||||||
Total | 272 | 268.0 | 244 | 247.0 | |||||||
Twelve Months Ended | |||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||
Ending | Average | Ending | Average | ||||||||
Active Communities: | |||||||||||
Arizona | 40 | 39.0 | 38 | 40.0 | |||||||
California | 17 | 18.5 | 20 | 24.0 | |||||||
Colorado | 20 | 15.5 | 11 | 10.5 | |||||||
West Region | 77 | 73.0 | 69 | 74.5 | |||||||
Texas | 95 | 93.5 | 92 | 86.0 | |||||||
Central Region | 95 | 93.5 | 92 | 86.0 | |||||||
Florida | 31 | 29.5 | 28 | 27.5 | |||||||
Georgia | 22 | 20.5 | 19 | 18.0 | |||||||
North Carolina | 25 | 21.0 | 17 | 17.0 | |||||||
South Carolina | 12 | 12.5 | 13 | 14.0 | |||||||
Tennessee | 10 | 8.0 | 6 | 6.5 | |||||||
East Region | 100 | 91.5 | 83 | 83.0 | |||||||
Total | 272 | 258.0 | 244 | 243.5 | |||||||
ABOUT MERITAGE HOMES CORPORATION
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2017. Meritage builds and sells single-family homes for entry-level, move-up, and active adult buyers in markets including California, Texas, Arizona, Colorado, Florida, North Carolina, South Carolina, Tennessee and Georgia.
The Company has designed and built over 120,000 homes in its 33-year history, and has a reputation for its distinctive style, quality construction, and positive customer experience. Meritage is the industry leader in energy-efficient homebuilding and has received the U.S. Environmental Protection Agency's ENERGY STAR® Partner of the Year for Sustained Excellence Award every year since 2013 for innovation and industry leadership in energy efficient homebuilding.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's expectations regarding the entry-level market and macroeconomic housing demand drivers.
Such statements are based on the current beliefs and expectations of Company management, and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations, except as required by law. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: the availability and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; changes in interest rates and the availability and pricing of residential mortgages; changes in tax laws that adversely impact us or our homebuyers; inflation in the cost of materials used to develop communities and construct homes; the success of strategic initiatives; the ability of our potential buyers to sell their existing homes; cancellation rates; the adverse effect of slow absorption rates; slowing in the growth of entry-level home buyers; competition; impairments of our real estate inventory; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest or option deposits; our potential exposure to and impacts from natural disasters or severe weather conditions; home warranty and construction defect claims; failures in health and safety performance; our success in prevailing on contested tax positions; our ability to obtain performance and surety bonds in connection with our development work; the loss of key personnel; failure to comply with laws and regulations; our limited geographic diversification; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our compliance with government regulations, the effect of legislative and other governmental actions, orders, policies or initiatives that impact housing, labor availability, construction, mortgage availability, our access to capital, the cost of capital or the economy in general, or other initiatives that seek to restrain growth of new housing construction or similar measures; legislation relating to energy and climate change; the replication of our energy-efficient technologies by our competitors; our exposure to information technology failures and security breaches; negative publicity that affects our reputation; legislation related to tariffs and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2017 and Form 10-Q for the third quarter ended September 30, 2018 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.
Contacts: | Brent Anderson, VP Investor Relations |
(972) 580-6360 (office) | |
investors@meritagehomes.com |