SCOTTSDALE, Ariz., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2019.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | % Chg | 2019 | 2018 | % Chg | |||||||||||||||||
Homes closed (units) | 2,419 | 2,162 | 12 | % | 6,437 | 6,026 | 7 | % | ||||||||||||||
Home closing revenue | $ | 939,185 | $ | 877,734 | 7 | % | $ | 2,500,888 | $ | 2,478,649 | 1 | % | ||||||||||
Average sales price - closings | $ | 388 | $ | 406 | (4 | )% | $ | 389 | $ | 411 | (6 | )% | ||||||||||
Home orders (units) | 2,258 | 1,828 | 24 | % | 7,523 | 6,436 | 17 | % | ||||||||||||||
Home order value | $ | 858,395 | $ | 715,089 | 20 | % | $ | 2,879,369 | $ | 2,595,881 | 11 | % | ||||||||||
Average sales price - orders | $ | 380 | $ | 391 | (3 | )% | $ | 383 | $ | 403 | (5 | )% | ||||||||||
Ending backlog (units) | 3,519 | 3,285 | 7 | % | ||||||||||||||||||
Ending backlog value | $ | 1,397,033 | $ | 1,367,006 | 2 | % | ||||||||||||||||
Average sales price - backlog | $ | 397 | $ | 416 | (5 | )% | ||||||||||||||||
Earnings before income taxes | $ | 92,366 | $ | 71,409 | 29 | % | $ | 192,410 | $ | 191,478 | — | % | ||||||||||
Net earnings | $ | 69,809 | $ | 54,135 | 29 | % | $ | 146,049 | $ | 151,847 | (4 | )% | ||||||||||
Diluted EPS | $ | 1.79 | $ | 1.33 | 35 | % | $ | 3.76 | $ | 3.69 | 2 | % |
MANAGEMENT COMMENTS
“Our results for the third quarter demonstrated continued strong demand for our homes, as well as the impact of operating efficiencies that are enabling us to improve our margins while selling homes at affordable prices," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our total orders for new homes increased 24% year-over-year in the third quarter, as a result of higher absorptions on slightly lower community count.
“We’re clearly in the sweet spot of the market with our LiVE.NOW.® homes for value-conscious buyers,” he explained. “Those homes are selling at a significantly higher pace than move-up homes and made up 54% of our third quarter orders, compared to 43% a year ago.
“In addition to our success with LiVE.NOW. in the entry-level market, our first move-up business is also doing well. We have nearly completed the roll-out of our new Studio M design centers, which have been very well received by our move-up buyers," he continued. “The new studios are benefiting both our margins and overhead leverage by providing additional revenue at a reduced cost due to streamlining and simplifying our operations. The combination of revenue growth and improved operating margin drove a 29% increase in our net earnings for the third quarter.”
Mr. Hilton concluded, “We are confident in our strategy and execution, and are encouraged by healthy employment levels in the U.S., growing household incomes and low interest rates, which are allowing more people to own their own homes. Based on our results in the first three quarters of 2019, we are projecting 8,900-9,100 total home closings for the year, generating approximately $3.5 billion of total home closing revenue with home closing gross margin in the mid to high-18's percent range for the year, which should translate to approximately $5.50-5.70 in diluted earnings per share.”
THIRD QUARTER RESULTS
YEAR TO DATE RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call to discuss the results at 7:30 a.m. Arizona Time (10:30 a.m. Eastern Time) on Wednesday, October 23. 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/10134822.
Telephone participants who are unable to pre-register may dial into 1-866-226-4948 US toll free on the day of the call. International dial-in number is 1-412-902-4125 or 1-855-669-9657 toll free for Canada.
A replay of the call will be available beginning at approximately 12:00 p.m. ET on October 23 and extending through November 6, 2019, on the website noted above or by dialing 1-877-344-7529 US toll free, 1-412-317-0088 for international or 1-855-669-9658 toll free for Canada, and referencing conference number 10134822.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30, | |||||||||||||||
2019 | 2018 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 939,185 | $ | 877,734 | $ | 61,451 | 7 | % | |||||||
Land closing revenue | 1,695 | 6,847 | (5,152 | ) | (75 | )% | |||||||||
Total closing revenue | 940,880 | 884,581 | 56,299 | 6 | % | ||||||||||
Cost of home closings | (753,068 | ) | (719,142 | ) | 33,926 | 5 | % | ||||||||
Cost of land closings | (1,721 | ) | (6,922 | ) | (5,201 | ) | (75 | )% | |||||||
Total cost of closings | (754,789 | ) | (726,064 | ) | 28,725 | 4 | % | ||||||||
Home closing gross profit | 186,117 | 158,592 | 27,525 | 17 | % | ||||||||||
Land closing gross loss | (26 | ) | (75 | ) | 49 | 65 | % | ||||||||
Total closing gross profit | 186,091 | 158,517 | 27,574 | 17 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 4,317 | 3,832 | 485 | 13 | % | ||||||||||
Expense | (1,725 | ) | (1,659 | ) | 66 | 4 | % | ||||||||
Earnings from financial services unconsolidated entities and other, net | 2,990 | 4,148 | (1,158 | ) | (28 | )% | |||||||||
Financial services profit | 5,582 | 6,321 | (739 | ) | (12 | )% | |||||||||
Commissions and other sales costs | (63,450 | ) | (60,282 | ) | 3,168 | 5 | % | ||||||||
General and administrative expenses | (37,191 | ) | (35,906 | ) | 1,285 | 4 | % | ||||||||
Interest expense | (1,068 | ) | (53 | ) | 1,015 | n/m | |||||||||
Other income, net | 2,402 | 2,812 | (410 | ) | (15 | )% | |||||||||
Earnings before income taxes | 92,366 | 71,409 | 20,957 | 29 | % | ||||||||||
Provision for income taxes | (22,557 | ) | (17,274 | ) | 5,283 | 31 | % | ||||||||
Net earnings | $ | 69,809 | $ | 54,135 | $ | 15,674 | 29 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 1.82 | $ | 1.34 | $ | 0.48 | 36 | % | |||||||
Weighted average shares outstanding | 38,296 | 40,283 | (1,987 | ) | (5 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 1.79 | $ | 1.33 | $ | 0.46 | 35 | % | |||||||
Weighted average shares outstanding | 39,079 | 40,855 | (1,776 | ) | (4 | )% |
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 2,500,888 | $ | 2,478,649 | $ | 22,239 | 1 | % | |||||||
Land closing revenue | 12,747 | 25,991 | (13,244 | ) | (51 | )% | |||||||||
Total closing revenue | 2,513,635 | 2,504,640 | 8,995 | — | % | ||||||||||
Cost of home closings | (2,039,191 | ) | (2,036,212 | ) | 2,979 | — | % | ||||||||
Cost of land closings | (14,149 | ) | (27,963 | ) | (13,814 | ) | (49 | )% | |||||||
Total cost of closings | (2,053,340 | ) | (2,064,175 | ) | (10,835 | ) | (1 | )% | |||||||
Home closing gross profit | 461,697 | 442,437 | 19,260 | 4 | % | ||||||||||
Land closing gross loss | (1,402 | ) | (1,972 | ) | 570 | 29 | % | ||||||||
Total closing gross profit | 460,295 | 440,465 | 19,830 | 5 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 11,705 | 10,750 | 955 | 9 | % | ||||||||||
Expense | (4,949 | ) | (4,836 | ) | 113 | 2 | % | ||||||||
Earnings from financial services unconsolidated entities and other, net | 9,559 | 10,278 | (719 | ) | (7 | )% | |||||||||
Financial services profit | 16,315 | 16,192 | 123 | 1 | % | ||||||||||
Commissions and other sales costs | (176,130 | ) | (173,857 | ) | 2,273 | 1 | % | ||||||||
General and administrative expenses | (105,536 | ) | (101,004 | ) | 4,532 | 4 | % | ||||||||
Interest expense | (8,350 | ) | (233 | ) | 8,117 | n/m | |||||||||
Other income, net | 5,816 | 9,915 | (4,099 | ) | (41 | )% | |||||||||
Earnings before income taxes | 192,410 | 191,478 | 932 | — | % | ||||||||||
Provision for income taxes | (46,361 | ) | (39,631 | ) | 6,730 | 17 | % | ||||||||
Net earnings | $ | 146,049 | $ | 151,847 | $ | (5,798 | ) | (4 | )% | ||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 3.83 | $ | 3.75 | $ | 0.08 | 2 | % | |||||||
Weighted average shares outstanding | 38,119 | 40,472 | (2,353 | ) | (6 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 3.76 | $ | 3.69 | $ | 0.07 | 2 | % | |||||||
Weighted average shares outstanding | 38,841 | 41,100 | (2,259 | ) | (5 | )% |
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, 2019 | December 31, 2018 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 454,812 | $ | 311,466 | ||||
Other receivables | 85,962 | 77,285 | ||||||
Real estate (1) | 2,853,933 | 2,742,621 | ||||||
Deposits on real estate under option or contract | 45,643 | 51,410 | ||||||
Investments in unconsolidated entities | 7,908 | 17,480 | ||||||
Property and equipment, net | 53,111 | 54,596 | ||||||
Deferred tax asset | 25,656 | 26,465 | ||||||
Prepaids, other assets and goodwill | 108,010 | 84,156 | ||||||
Total assets | $ | 3,635,035 | $ | 3,365,479 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 180,069 | $ | 128,169 | ||||
Accrued liabilities | 240,102 | 177,862 | ||||||
Home sale deposits | 31,444 | 28,636 | ||||||
Loans payable and other borrowings | 13,992 | 14,773 | ||||||
Senior notes, net | 1,295,862 | 1,295,284 | ||||||
Total liabilities | 1,761,469 | 1,644,724 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 383 | 381 | ||||||
Additional paid-in capital | 508,541 | 501,781 | ||||||
Retained earnings | 1,364,642 | 1,218,593 | ||||||
Total stockholders’ equity | 1,873,566 | 1,720,755 | ||||||
Total liabilities and stockholders’ equity | $ | 3,635,035 | $ | 3,365,479 | ||||
(1) Real estate – Allocated costs: | ||||||||
Homes under contract under construction | $ | 712,288 | $ | 480,143 | ||||
Unsold homes, completed and under construction | 661,393 | 644,717 | ||||||
Model homes | 126,925 | 146,327 | ||||||
Finished home sites and home sites under development | 1,353,327 | 1,471,434 | ||||||
Total real estate | $ | 2,853,933 | $ | 2,742,621 |
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Depreciation and amortization | $ | 7,172 | $ | 6,850 | $ | 19,553 | $ | 19,458 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 88,307 | $ | 84,443 | $ | 88,454 | $ | 78,564 | |||||||
Interest incurred | 21,319 | 21,545 | 64,227 | 63,788 | |||||||||||
Interest expensed | (1,068 | ) | (53 | ) | (8,350 | ) | (233 | ) | |||||||
Interest amortized to cost of home and land closings | (20,363 | ) | (17,871 | ) | (56,136 | ) | (54,055 | ) | |||||||
Capitalized interest, end of period | $ | 88,195 | $ | 88,064 | $ | 88,195 | $ | 88,064 | |||||||
September 30, 2019 | December 31, 2018 | ||||||||||||||
Notes payable and other borrowings | $ | 1,309,854 | $ | 1,310,057 | |||||||||||
Stockholders' equity | 1,873,566 | 1,720,755 | |||||||||||||
Total capital | $ | 3,183,420 | $ | 3,030,812 | |||||||||||
Debt-to-capital | 41.1 | % | 43.2 | % | |||||||||||
Notes payable and other borrowings | $ | 1,309,854 | $ | 1,310,057 | |||||||||||
Less: cash and cash equivalents | (454,812 | ) | (311,466 | ) | |||||||||||
Net debt | $ | 855,042 | $ | 998,591 | |||||||||||
Stockholders’ equity | 1,873,566 | 1,720,755 | |||||||||||||
Total net capital | $ | 2,728,608 | $ | 2,719,346 | |||||||||||
Net debt-to-capital | 31.3 | % | 36.7 | % |
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 146,049 | $ | 151,847 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 19,553 | 19,458 | ||||||
Stock-based compensation | 15,719 | 13,737 | ||||||
Equity in earnings from unconsolidated entities | (8,934 | ) | (11,160 | ) | ||||
Distribution of earnings from unconsolidated entities | 11,261 | 11,898 | ||||||
Other | 3,902 | 2,197 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) in real estate | (110,295 | ) | (161,816 | ) | ||||
Decrease in deposits on real estate under option or contract | 5,773 | 10,080 | ||||||
(Increase)/decrease in other receivables, prepaids and other assets | (3,108 | ) | 1,686 | |||||
Increase in accounts payable and accrued liabilities | 84,632 | 35,625 | ||||||
Increase in home sale deposits | 2,808 | 100 | ||||||
Net cash provided by operating activities | 167,360 | 73,652 | ||||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (1,112 | ) | (551 | ) | ||||
Distributions of capital from unconsolidated entities | 7,250 | 597 | ||||||
Purchases of property and equipment | (18,376 | ) | (23,754 | ) | ||||
Proceeds from sales of property and equipment | 267 | 107 | ||||||
Maturities/sales of investments and securities | 675 | 1,065 | ||||||
Payments to purchase investments and securities | (675 | ) | (1,065 | ) | ||||
Net cash used in investing activities | (11,971 | ) | (23,601 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of loans payable and other borrowings | (3,086 | ) | (13,484 | ) | ||||
Repayment of senior notes | — | (175,000 | ) | |||||
Proceeds from issuance of senior notes | — | 206,000 | ||||||
Payment of debt issuance costs | — | (3,198 | ) | |||||
Repurchase of shares | (8,957 | ) | (29,353 | ) | ||||
Net cash used in financing activities | (12,043 | ) | (15,035 | ) | ||||
Net increase in cash and cash equivalents | 143,346 | 35,016 | ||||||
Beginning cash and cash equivalents | 311,466 | 170,746 | ||||||
Ending cash and cash equivalents | $ | 454,812 | $ | 205,762 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Three Months Ended September 30, | ||||||||||||||
2019 | 2018 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 440 | $ | 144,920 | 411 | $ | 134,977 | ||||||||
California | 200 | 135,555 | 206 | 143,386 | ||||||||||
Colorado | 169 | 85,674 | 160 | 87,716 | ||||||||||
West Region | 809 | 366,149 | 777 | 366,079 | ||||||||||
Texas | 810 | 278,744 | 721 | 256,308 | ||||||||||
Central Region | 810 | 278,744 | 721 | 256,308 | ||||||||||
Florida | 302 | 118,804 | 249 | 105,902 | ||||||||||
Georgia | 139 | 46,984 | 139 | 47,429 | ||||||||||
North Carolina | 206 | 77,696 | 165 | 63,381 | ||||||||||
South Carolina | 75 | 23,768 | 69 | 23,605 | ||||||||||
Tennessee | 78 | 27,040 | 42 | 15,030 | ||||||||||
East Region | 800 | 294,292 | 664 | 255,347 | ||||||||||
Total | 2,419 | $ | 939,185 | 2,162 | $ | 877,734 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 482 | $ | 159,778 | 347 | $ | 112,185 | ||||||||
California | 198 | 124,201 | 104 | 67,810 | ||||||||||
Colorado | 156 | 74,498 | 157 | 84,078 | ||||||||||
West Region | 836 | 358,477 | 608 | 264,073 | ||||||||||
Texas | 649 | 217,648 | 635 | 228,627 | ||||||||||
Central Region | 649 | 217,648 | 635 | 228,627 | ||||||||||
Florida | 293 | 111,471 | 231 | 94,089 | ||||||||||
Georgia | 138 | 47,527 | 89 | 32,459 | ||||||||||
North Carolina | 188 | 69,017 | 139 | 52,434 | ||||||||||
South Carolina | 55 | 17,520 | 65 | 21,448 | ||||||||||
Tennessee | 99 | 36,735 | 61 | 21,959 | ||||||||||
East Region | 773 | 282,270 | 585 | 222,389 | ||||||||||
Total | 2,258 | $ | 858,395 | 1,828 | $ | 715,089 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 1,126 | $ | 368,762 | 1,052 | $ | 344,245 | ||||||||
California | 464 | 304,846 | 643 | 444,796 | ||||||||||
Colorado | 507 | 264,479 | 416 | 231,523 | ||||||||||
West Region | 2,097 | 938,087 | 2,111 | 1,020,564 | ||||||||||
Texas | 2,176 | 760,189 | 2,004 | 707,397 | ||||||||||
Central Region | 2,176 | 760,189 | 2,004 | 707,397 | ||||||||||
Florida | 809 | 321,364 | 761 | 329,156 | ||||||||||
Georgia | 380 | 132,440 | 316 | 107,237 | ||||||||||
North Carolina | 558 | 204,866 | 488 | 191,129 | ||||||||||
South Carolina | 202 | 66,513 | 211 | 72,611 | ||||||||||
Tennessee | 215 | 77,429 | 135 | 50,555 | ||||||||||
East Region | 2,164 | 802,612 | 1,911 | 750,688 | ||||||||||
Total | 6,437 | $ | 2,500,888 | 6,026 | $ | 2,478,649 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 1,521 | $ | 493,391 | 1,222 | $ | 401,063 | ||||||||
California | 572 | 368,194 | 513 | 359,907 | ||||||||||
Colorado | 580 | 290,060 | 498 | 270,991 | ||||||||||
West Region | 2,673 | 1,151,645 | 2,233 | 1,031,961 | ||||||||||
Texas | 2,346 | 799,293 | 2,210 | 785,686 | ||||||||||
Central Region | 2,346 | 799,293 | 2,210 | 785,686 | ||||||||||
Florida | 925 | 369,503 | 814 | 343,293 | ||||||||||
Georgia | 431 | 149,731 | 346 | 125,293 | ||||||||||
North Carolina | 658 | 241,573 | 439 | 168,623 | ||||||||||
South Carolina | 205 | 65,540 | 233 | 80,774 | ||||||||||
Tennessee | 285 | 102,084 | 161 | 60,251 | ||||||||||
East Region | 2,504 | 928,431 | 1,993 | 778,234 | ||||||||||
Total | 7,523 | $ | 2,879,369 | 6,436 | $ | 2,595,881 | ||||||||
Order Backlog: | ||||||||||||||
Arizona | 738 | $ | 258,341 | 496 | $ | 176,843 | ||||||||
California | 199 | 129,880 | 188 | 138,274 | ||||||||||
Colorado | 258 | 129,167 | 281 | 154,451 | ||||||||||
West Region | 1,195 | 517,388 | 965 | 469,568 | ||||||||||
Texas | 1,151 | 413,229 | 1,226 | 461,628 | ||||||||||
Central Region | 1,151 | 413,229 | 1,226 | 461,628 | ||||||||||
Florida | 488 | 213,427 | 499 | 211,063 | ||||||||||
Georgia | 174 | 63,730 | 181 | 68,605 | ||||||||||
North Carolina | 277 | 104,162 | 194 | 74,405 | ||||||||||
South Carolina | 92 | 31,474 | 121 | 43,678 | ||||||||||
Tennessee | 142 | 53,623 | 99 | 38,059 | ||||||||||
East Region | 1,173 | 466,416 | 1,094 | 435,810 | ||||||||||
Total | 3,519 | $ | 1,397,033 | 3,285 | $ | 1,367,006 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
Three Months Ended September 30, | ||||||||||||
2019 | 2018 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 37 | 38.5 | 44 | 42.0 | ||||||||
California | 24 | 22.0 | 14 | 14.5 | ||||||||
Colorado | 20 | 20.5 | 20 | 19.5 | ||||||||
West Region | 81 | 81.0 | 78 | 76.0 | ||||||||
Texas | 74 | 73.5 | 92 | 91.0 | ||||||||
Central Region | 74 | 73.5 | 92 | 91.0 | ||||||||
Florida | 36 | 36.0 | 30 | 30.0 | ||||||||
Georgia | 18 | 19.5 | 22 | 21.0 | ||||||||
North Carolina | 22 | 22.5 | 20 | 20.0 | ||||||||
South Carolina | 10 | 9.5 | 12 | 11.5 | ||||||||
Tennessee | 9 | 10.0 | 10 | 9.0 | ||||||||
East Region | 95 | 97.5 | 94 | 91.5 | ||||||||
Total | 250 | 252.0 | 264 | 258.5 |
Nine Months Ended September 30, | ||||||||||||
2019 | 2018 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 37 | 38.5 | 44 | 41.0 | ||||||||
California | 24 | 20.5 | 14 | 17.0 | ||||||||
Colorado | 20 | 20.0 | 20 | 15.5 | ||||||||
West Region | 81 | 79.0 | 78 | 73.5 | ||||||||
Texas | 74 | 84.5 | 92 | 92.0 | ||||||||
Central Region | 74 | 84.5 | 92 | 92.0 | ||||||||
Florida | 36 | 33.5 | 30 | 29.0 | ||||||||
Georgia | 18 | 20.0 | 22 | 20.5 | ||||||||
North Carolina | 22 | 23.5 | 20 | 18.5 | ||||||||
South Carolina | 10 | 11.0 | 12 | 12.5 | ||||||||
Tennessee | 9 | 9.5 | 10 | 8.0 | ||||||||
East Region | 95 | 97.5 | 94 | 88.5 | ||||||||
Total | 250 | 261.0 | 264 | 254.0 |
About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2018. Meritage offers a variety of homes that are designed with a focus on first-time and first move-up buyers in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
The Company has designed and built over 120,000 homes in its 34-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 projected home closings, home closing revenue, home closing gross margin and diluted earnings per share for the full year 2019.
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: changes in interest rates and the availability and pricing of residential mortgages; legislation related to tariffs; the availability and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; the success of strategic initiatives; the ability of our potential buyers to sell their existing homes; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; changes in tax laws that adversely impact us or our homebuyers; 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 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, 2018 and our Form 10-Q for the quarter ended June 30, 2019 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 |