SCOTTSDALE, Ariz., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2020.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | % Chg | 2020 | 2019 | % Chg | |||||||||||||||||
Homes closed (units) | 3,004 | 2,419 | 24 | % | 8,090 | 6,437 | 26 | % | ||||||||||||||
Home closing revenue | $ | 1,133,221 | $ | 939,185 | 21 | % | $ | 3,055,229 | $ | 2,500,888 | 22 | % | ||||||||||
Average sales price - closings | $ | 377 | $ | 388 | (3 | )% | $ | 378 | $ | 389 | (3 | )% | ||||||||||
Home orders (units) | 3,851 | 2,258 | 71 | % | 10,550 | 7,523 | 40 | % | ||||||||||||||
Home order value | $ | 1,488,480 | $ | 858,395 | 73 | % | $ | 3,958,870 | $ | 2,879,369 | 37 | % | ||||||||||
Average sales price - orders | $ | 387 | $ | 380 | 2 | % | $ | 375 | $ | 383 | (2 | )% | ||||||||||
Ending backlog (units) | 5,242 | 3,519 | 49 | % | ||||||||||||||||||
Ending backlog value | $ | 2,004,981 | $ | 1,397,033 | 44 | % | ||||||||||||||||
Average sales price - backlog | $ | 382 | $ | 397 | (4 | )% | ||||||||||||||||
Earnings before income taxes | $ | 135,506 | $ | 92,366 | 47 | % | $ | 338,201 | $ | 192,410 | 76 | % | ||||||||||
Net earnings | $ | 109,118 | $ | 69,809 | 56 | % | $ | 270,948 | $ | 146,049 | 86 | % | ||||||||||
Diluted EPS | $ | 2.84 | $ | 1.79 | 59 | % | $ | 7.04 | $ | 3.76 | 87 | % |
MANAGEMENT COMMENTS
"Our third quarter of 2020 results continued to outperform and reflect the current strength in the homebuilding market. Meritage had many remarkable achievements this past quarter: We delivered our highest quarterly sales orders, our strongest absorptions since 2005, record quarterly home closing revenue, and our best quarterly gross margin since 2014 - while also achieving our lowest net debt to capital in our company's history,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “These strong results are the combination of existing favorable market factors including historically-low mortgage interest rates and increased demand for healthier, safer homes, and Meritage's strategy of focusing on affordable entry-level and first move-up homes that allowed us to capitalize on that demand.
“Our sales orders of 3,851 homes this quarter were 71% more than the third quarter of 2019 and surpassed our previous quarterly record set in the second quarter of 2020. Over just the first nine months of this year, we sold a total of 10,550 homes - well over the full year 2019 sales volume. We also closed 24% more homes than we did in the same quarter of the prior year. Home closing revenue increased 21% year-over-year to $1.1 billion for the third quarter of 2020, which combined with a 21.5% home closing gross margin to drive a 56% increase in our net earnings compared to the third quarter of 2019."
He continued, "To meet the surge in demand we are experiencing, we are investing significantly for additional growth. We spent nearly $300 million on land acquisition and development and put a record near 9,000 new lots under control this quarter, bringing the total lot supply to nearly 48,000 lots, as we increase our market share in our existing geographies and push toward our 300 community count goal by early to mid 2022."
Mr. Hilton concluded, "Based on our performance through the first three quarters of 2020 and confidence in our ability to deliver our backlog, we are projecting 11,200-11,500 total home closings for approximately $4.2-4.4 billion total home closing revenue and home closing gross margin of 21.0-21.5% for the full year 2020. We expect that to translate into approximately $10.25-10.50 diluted earnings per share, a year-over-year increase of more than 60%."
THIRD 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 (11:00 a.m. Eastern Time) on Thursday, October 22. The call will be webcast live with an accompanying slideshow, both of which will be available on the "Investor Relations" page of the Company's web site at https://investors.meritagehomes.com. For those unable to participate via the webcast, telephone participants can dial in to 1-800-437-2398 US toll free on the day of the call. The international dial-in number is 1-929-477-0577.
A replay of the call will be available beginning at approximately 10:00 a.m. Arizona Time (1:00 p.m. Eastern Time) on October 22 and extending through November 5, 2020, on the website noted above or by dialing 1-800-437-2398 US toll free, 1-929-477-0577 for international and referencing conference number 1805364.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change $ | Change % | |||||||||||
Homebuilding: | ||||||||||||||
Home closing revenue | $ | 1,133,221 | $ | 939,185 | $ | 194,036 | 21 | % | ||||||
Land closing revenue | 4,870 | 1,695 | 3,175 | 187 | % | |||||||||
Total closing revenue | 1,138,091 | 940,880 | 197,211 | 21 | % | |||||||||
Cost of home closings | (889,654 | ) | (753,068 | ) | 136,586 | 18 | % | |||||||
Cost of land closings | (4,360 | ) | (1,721 | ) | 2,639 | 153 | % | |||||||
Total cost of closings | (894,014 | ) | (754,789 | ) | 139,225 | 18 | % | |||||||
Home closing gross profit | 243,567 | 186,117 | 57,450 | 31 | % | |||||||||
Land closing gross profit/(loss) | 510 | (26 | ) | 536 | N/M | |||||||||
Total closing gross profit | 244,077 | 186,091 | 57,986 | 31 | % | |||||||||
Financial Services: | ||||||||||||||
Revenue | 4,939 | 4,317 | 622 | 14 | % | |||||||||
Expense | (2,026 | ) | (1,725 | ) | 301 | 17 | % | |||||||
Earnings from financial services unconsolidated entities and other, net | 1,402 | 2,990 | (1,588 | ) | (53 | )% | ||||||||
Financial services profit | 4,315 | 5,582 | (1,267 | ) | (23 | )% | ||||||||
Commissions and other sales costs | (73,282 | ) | (63,450 | ) | 9,832 | 15 | % | |||||||
General and administrative expenses | (40,737 | ) | (37,191 | ) | 3,546 | 10 | % | |||||||
Interest expense | (55 | ) | (1,068 | ) | (1,013 | ) | (95 | )% | ||||||
Other income, net | 1,188 | 2,402 | (1,214 | ) | (51 | )% | ||||||||
Earnings before income taxes | 135,506 | 92,366 | 43,140 | 47 | % | |||||||||
Provision for income taxes | (26,388 | ) | (22,557 | ) | 3,831 | 17 | % | |||||||
Net earnings | $ | 109,118 | $ | 69,809 | $ | 39,309 | 56 | % | ||||||
Earnings per common share: | ||||||||||||||
Basic | Change $ or shares | Change % | ||||||||||||
Earnings per common share | $ | 2.90 | $ | 1.82 | $ | 1.08 | 59 | % | ||||||
Weighted average shares outstanding | 37,607 | 38,296 | (689 | ) | (2 | )% | ||||||||
Diluted | ||||||||||||||
Earnings per common share | $ | 2.84 | $ | 1.79 | $ | 1.05 | 59 | % | ||||||
Weighted average shares outstanding | 38,405 | 39,079 | (674 | ) | (2 | )% |
Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 3,055,229 | $ | 2,500,888 | $ | 554,341 | 22 | % | |||||||
Land closing revenue | 16,954 | 12,747 | 4,207 | 33 | % | ||||||||||
Total closing revenue | 3,072,183 | 2,513,635 | 558,548 | 22 | % | ||||||||||
Cost of home closings | (2,412,606 | ) | (2,039,191 | ) | 373,415 | 18 | % | ||||||||
Cost of land closings | (17,509 | ) | (14,149 | ) | 3,360 | 24 | % | ||||||||
Total cost of closings | (2,430,115 | ) | (2,053,340 | ) | 376,775 | 18 | % | ||||||||
Home closing gross profit | 642,623 | 461,697 | 180,926 | 39 | % | ||||||||||
Land closing gross loss | (555 | ) | (1,402 | ) | 847 | 60 | % | ||||||||
Total closing gross profit | 642,068 | 460,295 | 181,773 | 39 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 13,329 | 11,705 | 1,624 | 14 | % | ||||||||||
Expense | (5,519 | ) | (4,949 | ) | 570 | 12 | % | ||||||||
Earnings from financial services unconsolidated entities and other, net | 3,132 | 9,559 | (6,427 | ) | (67 | )% | |||||||||
Financial services profit | 10,942 | 16,315 | (5,373 | ) | (33 | )% | |||||||||
Commissions and other sales costs | (204,863 | ) | (176,130 | ) | 28,733 | 16 | % | ||||||||
General and administrative expenses | (111,083 | ) | (105,536 | ) | 5,547 | 5 | % | ||||||||
Interest expense | (2,176 | ) | (8,350 | ) | (6,174 | ) | (74 | )% | |||||||
Other income, net | 3,313 | 5,816 | (2,503 | ) | (43 | )% | |||||||||
Earnings before income taxes | 338,201 | 192,410 | 145,791 | 76 | % | ||||||||||
Provision for income taxes | (67,253 | ) | (46,361 | ) | 20,892 | 45 | % | ||||||||
Net earnings | $ | 270,948 | $ | 146,049 | $ | 124,899 | 86 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 7.17 | $ | 3.83 | $ | 3.34 | 87 | % | |||||||
Weighted average shares outstanding | 37,763 | 38,119 | (356 | ) | (1 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 7.04 | $ | 3.76 | $ | 3.28 | 87 | % | |||||||
Weighted average shares outstanding | 38,491 | 38,841 | (350 | ) | (1 | )% |
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, 2020 | December 31, 2019 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 609,979 | $ | 319,466 | ||||
Other receivables | 96,702 | 88,492 | ||||||
Real estate (1) | 2,741,016 | 2,744,361 | ||||||
Deposits on real estate under option or contract | 62,967 | 50,901 | ||||||
Investments in unconsolidated entities | 3,819 | 4,443 | ||||||
Property and equipment, net | 42,730 | 50,606 | ||||||
Deferred tax asset | 28,425 | 25,917 | ||||||
Prepaids, other assets and goodwill | 101,680 | 114,063 | ||||||
Total assets | $ | 3,687,318 | $ | 3,398,249 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 167,788 | $ | 155,024 | ||||
Accrued liabilities | 274,371 | 226,008 | ||||||
Home sale deposits | 25,509 | 24,246 | ||||||
Loans payable and other borrowings | 23,031 | 22,876 | ||||||
Senior notes, net | 996,770 | 996,105 | ||||||
Total liabilities | 1,487,469 | 1,424,259 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 377 | 382 | ||||||
Additional paid-in capital | 460,268 | 505,352 | ||||||
Retained earnings | 1,739,204 | 1,468,256 | ||||||
Total stockholders’ equity | 2,199,849 | 1,973,990 | ||||||
Total liabilities and stockholders’ equity | $ | 3,687,318 | $ | 3,398,249 | ||||
(1) Real estate – Allocated costs: | ||||||||
Homes under contract under construction | $ | 967,222 | $ | 564,762 | ||||
Unsold homes, completed and under construction | 395,151 | 686,948 | ||||||
Model homes | 86,933 | 121,340 | ||||||
Finished home sites and home sites under development | 1,291,710 | 1,371,311 | ||||||
Total real estate | $ | 2,741,016 | $ | 2,744,361 |
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Depreciation and amortization | $ | 7,945 | $ | 7,172 | $ | 22,496 | $ | 19,553 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 72,882 | $ | 88,307 | $ | 82,014 | $ | 88,454 | |||||||
Interest incurred | 16,103 | 21,319 | 50,188 | 64,227 | |||||||||||
Interest expensed | (55 | ) | (1,068 | ) | (2,176 | ) | (8,350 | ) | |||||||
Interest amortized to cost of home and land closings | (21,380 | ) | (20,363 | ) | (62,476 | ) | (56,136 | ) | |||||||
Capitalized interest, end of period | $ | 67,550 | $ | 88,195 | $ | 67,550 | $ | 88,195 | |||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||
Notes payable and other borrowings | $ | 1,019,801 | $ | 1,018,981 | |||||||||||
Stockholders' equity | 2,199,849 | 1,973,990 | |||||||||||||
Total capital | $ | 3,219,650 | $ | 2,992,971 | |||||||||||
Debt-to-capital | 31.7 | % | 34.0 | % | |||||||||||
Notes payable and other borrowings | $ | 1,019,801 | $ | 1,018,981 | |||||||||||
Less: cash and cash equivalents | (609,979 | ) | (319,466 | ) | |||||||||||
Net debt | $ | 409,822 | $ | 699,515 | |||||||||||
Stockholders’ equity | 2,199,849 | 1,973,990 | |||||||||||||
Total net capital | $ | 2,609,671 | $ | 2,673,505 | |||||||||||
Net debt-to-capital | 15.7 | % | 26.2 | % |
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 270,948 | $ | 146,049 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 22,496 | 19,553 | ||||||
Stock-based compensation | 15,724 | 15,719 | ||||||
Equity in earnings from unconsolidated entities | (2,821 | ) | (8,934 | ) | ||||
Distribution of earnings from unconsolidated entities | 2,449 | 11,261 | ||||||
Other | 1,881 | 3,902 | ||||||
Changes in assets and liabilities: | ||||||||
Decrease/(increase) in real estate | 9,080 | (110,295 | ) | |||||
(Increase)/decrease in deposits on real estate under option or contract | (12,910 | ) | 5,773 | |||||
Decrease/(increase) in other receivables, prepaids and other assets | 4,933 | (3,108 | ) | |||||
Increase in accounts payable and accrued liabilities | 60,039 | 84,632 | ||||||
Increase in home sale deposits | 1,263 | 2,808 | ||||||
Net cash provided by operating activities | 373,082 | 167,360 | ||||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (4 | ) | (1,112 | ) | ||||
Distributions of capital from unconsolidated entities | 1,000 | 7,250 | ||||||
Purchases of property and equipment | (14,771 | ) | (18,376 | ) | ||||
Proceeds from sales of property and equipment | 528 | 267 | ||||||
Maturities/sales of investments and securities | 632 | 675 | ||||||
Payments to purchase investments and securities | (632 | ) | (675 | ) | ||||
Net cash used in investing activities | (13,247 | ) | (11,971 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of loans payable and other borrowings | (8,509 | ) | (3,086 | ) | ||||
Repurchase of shares | (60,813 | ) | (8,957 | ) | ||||
Net cash used in financing activities | (69,322 | ) | (12,043 | ) | ||||
Net increase in cash and cash equivalents | 290,513 | 143,346 | ||||||
Beginning cash and cash equivalents | 319,466 | 311,466 | ||||||
Ending cash and cash equivalents | $ | 609,979 | $ | 454,812 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Three Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 429 | $ | 143,630 | 440 | $ | 144,920 | ||||||||
California | 332 | 202,460 | 200 | 135,555 | ||||||||||
Colorado | 183 | 88,199 | 169 | 85,674 | ||||||||||
West Region | 944 | 434,289 | 809 | 366,149 | ||||||||||
Texas | 1,059 | 349,907 | 810 | 278,744 | ||||||||||
Central Region | 1,059 | 349,907 | 810 | 278,744 | ||||||||||
Florida | 339 | 124,836 | 302 | 118,804 | ||||||||||
Georgia | 178 | 62,921 | 139 | 46,984 | ||||||||||
North Carolina | 295 | 98,322 | 206 | 77,696 | ||||||||||
South Carolina | 78 | 25,502 | 75 | 23,768 | ||||||||||
Tennessee | 111 | 37,444 | 78 | 27,040 | ||||||||||
East Region | 1,001 | 349,025 | 800 | 294,292 | ||||||||||
Total | 3,004 | $ | 1,133,221 | 2,419 | $ | 939,185 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 709 | $ | 240,151 | 482 | $ | 159,778 | ||||||||
California | 510 | 319,680 | 198 | 124,201 | ||||||||||
Colorado | 188 | 88,972 | 156 | 74,498 | ||||||||||
West Region | 1,407 | 648,803 | 836 | 358,477 | ||||||||||
Texas | 1,183 | 395,453 | 649 | 217,648 | ||||||||||
Central Region | 1,183 | 395,453 | 649 | 217,648 | ||||||||||
Florida | 491 | 179,607 | 293 | 111,471 | ||||||||||
Georgia | 172 | 62,541 | 138 | 47,527 | ||||||||||
North Carolina | 386 | 132,988 | 188 | 69,017 | ||||||||||
South Carolina | 90 | 28,140 | 55 | 17,520 | ||||||||||
Tennessee | 122 | 40,948 | 99 | 36,735 | ||||||||||
East Region | 1,261 | 444,224 | 773 | 282,270 | ||||||||||
Total | 3,851 | $ | 1,488,480 | 2,258 | $ | 858,395 |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 1,315 | $ | 437,233 | 1,126 | $ | 368,762 | ||||||||
California | 787 | 487,605 | 464 | 304,846 | ||||||||||
Colorado | 553 | 268,970 | 507 | 264,479 | ||||||||||
West Region | 2,655 | 1,193,808 | 2,097 | 938,087 | ||||||||||
Texas | 2,747 | 901,791 | 2,176 | 760,189 | ||||||||||
Central Region | 2,747 | 901,791 | 2,176 | 760,189 | ||||||||||
Florida | 942 | 357,233 | 809 | 321,364 | ||||||||||
Georgia | 459 | 163,617 | 380 | 132,440 | ||||||||||
North Carolina | 805 | 276,477 | 558 | 204,866 | ||||||||||
South Carolina | 229 | 73,113 | 202 | 66,513 | ||||||||||
Tennessee | 253 | 89,190 | 215 | 77,429 | ||||||||||
East Region | 2,688 | 959,630 | 2,164 | 802,612 | ||||||||||
Total | 8,090 | $ | 3,055,229 | 6,437 | $ | 2,500,888 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 2,016 | $ | 654,579 | 1,521 | $ | 493,391 | ||||||||
California | 1,250 | 769,251 | 572 | 368,194 | ||||||||||
Colorado | 540 | 258,268 | 580 | 290,060 | ||||||||||
West Region | 3,806 | 1,682,098 | 2,673 | 1,151,645 | ||||||||||
Texas | 3,457 | 1,130,943 | 2,346 | 799,293 | ||||||||||
Central Region | 3,457 | 1,130,943 | 2,346 | 799,293 | ||||||||||
Florida | 1,198 | 435,411 | 925 | 369,503 | ||||||||||
Georgia | 518 | 182,958 | 431 | 149,731 | ||||||||||
North Carolina | 999 | 340,626 | 658 | 241,573 | ||||||||||
South Carolina | 272 | 85,316 | 205 | 65,540 | ||||||||||
Tennessee | 300 | 101,518 | 285 | 102,084 | ||||||||||
East Region | 3,287 | 1,145,829 | 2,504 | 928,431 | ||||||||||
Total | 10,550 | $ | 3,958,870 | 7,523 | $ | 2,879,369 | ||||||||
Order Backlog: | ||||||||||||||
Arizona | 1,212 | $ | 404,044 | 738 | $ | 258,341 | ||||||||
California | 608 | 373,949 | 199 | 129,880 | ||||||||||
Colorado | 183 | 87,047 | 258 | 129,167 | ||||||||||
West Region | 2,003 | 865,040 | 1,195 | 517,388 | ||||||||||
Texas | 1,758 | 602,709 | 1,151 | 413,229 | ||||||||||
Central Region | 1,758 | 602,709 | 1,151 | 413,229 | ||||||||||
Florida | 627 | 242,419 | 488 | 213,427 | ||||||||||
Georgia | 192 | 69,204 | 174 | 63,730 | ||||||||||
North Carolina | 413 | 143,741 | 277 | 104,162 | ||||||||||
South Carolina | 114 | 36,723 | 92 | 31,474 | ||||||||||
Tennessee | 135 | 45,145 | 142 | 53,623 | ||||||||||
East Region | 1,481 | 537,232 | 1,173 | 466,416 | ||||||||||
Total | 5,242 | $ | 2,004,981 | 3,519 | $ | 1,397,033 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
Three Months Ended September 30, | ||||||||||||
2020 | 2019 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 35 | 36.5 | 37 | 38.5 | ||||||||
California | 20 | 24.0 | 24 | 22.0 | ||||||||
Colorado | 11 | 12.0 | 20 | 20.5 | ||||||||
West Region | 66 | 72.5 | 81 | 81.0 | ||||||||
Texas | 58 | 63.0 | 74 | 73.5 | ||||||||
Central Region | 58 | 63.0 | 74 | 73.5 | ||||||||
Florida | 34 | 35.0 | 36 | 36.0 | ||||||||
Georgia | 11 | 14.0 | 18 | 19.5 | ||||||||
North Carolina | 20 | 20.5 | 22 | 22.5 | ||||||||
South Carolina | 6 | 5.5 | 10 | 9.5 | ||||||||
Tennessee | 9 | 10.0 | 9 | 10.0 | ||||||||
East Region | 80 | 85.0 | 95 | 97.5 | ||||||||
Total | 204 | 220.5 | 250 | 252.0 |
Nine Months Ended September 30, | ||||||||||||
2020 | 2019 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 35 | 34.3 | 37 | 38.5 | ||||||||
California | 20 | 25.3 | 24 | 20.5 | ||||||||
Colorado | 11 | 13.8 | 20 | 20.0 | ||||||||
West Region | 66 | 73.4 | 81 | 79.0 | ||||||||
Texas | 58 | 70.3 | 74 | 84.5 | ||||||||
Central Region | 58 | 70.3 | 74 | 84.5 | ||||||||
Florida | 34 | 34.4 | 36 | 33.5 | ||||||||
Georgia | 11 | 15.3 | 18 | 20.0 | ||||||||
North Carolina | 20 | 21.6 | 22 | 23.5 | ||||||||
South Carolina | 6 | 6.8 | 10 | 11.0 | ||||||||
Tennessee | 9 | 10.3 | 9 | 9.5 | ||||||||
East Region | 80 | 88.4 | 95 | 97.5 | ||||||||
Total | 204 | 232.1 | 250 | 261.0 |
About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2019. 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 135,000 homes in its 35-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. Meritage is the industry leader in energy-efficient homebuilding and a seven-year recipient of the U.S. Environmental Protection Agency’s ENERGY STAR® Partner of the Year for Sustained Excellence Award 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 statements regarding health of the housing market and the potential adverse impacts of the COVID-19 pandemic, and projected full year 2020 home closings, home closing revenue, gross margins and diluted earnings per share.
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: disruptions to our business by COVID-19, fear of a similar event, and measures implemented by federal, state and local governments or health authorities to address it; the availability and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; the ability of our potential buyers to sell their existing homes; changes in interest rates and the availability and pricing of residential mortgages; our exposure to information technology failures and security breaches; legislation related to tariffs; 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 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 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; 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, 2019 and our Form 10-Q for the quarter ended June 30, 2020 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.
Contacts: | Emily Tadano, VP Investor Relations | |
(480) 515-8979 (office) | ||
investors@meritagehomes.com |