SCOTTSDALE, AZ--(Marketwired - January 28, 2016) - Meritage Homes Corporation (
Summary Operating Results (unaudited) | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2015 | 2014 | %Chg | 2015 | 2014 | %Chg | |||||||||||||
Homes closed (units) | 1,919 | 1,863 | 3 | % | 6,522 | 5,862 | 11 | % | ||||||||||
Home closing revenue | $ | 761,372 | $ | 688,288 | 11 | % | $ | 2,531,556 | $ | 2,142,391 | 18 | % | ||||||
Average sales price - closings | $ | 397 | $ | 369 | 8 | % | $ | 388 | $ | 365 | 6 | % | ||||||
Home orders (units) | 1,568 | 1,272 | 23 | % | 7,100 | 5,944 | 19 | % | ||||||||||
Home order value | $ | 634,181 | $ | 490,999 | 29 | % | $ | 2,822,785 | $ | 2,238,117 | 26 | % | ||||||
Average sales price - orders | $ | 404 | $ | 386 | 5 | % | $ | 398 | $ | 377 | 6 | % | ||||||
Ending backlog (units) | 2,692 | 2,114 | 27 | % | ||||||||||||||
Ending backlog value | $ | 1,137,681 | $ | 846,452 | 34 | % | ||||||||||||
Average sales price - backlog | $ | 423 | $ | 400 | 6 | % | ||||||||||||
Net earnings | $ | 52,897 | $ | 49,208 | 7 | % | $ | 128,738 | $ | 142,241 | (9 | )% | ||||||
Diluted EPS | $ | 1.26 | $ | 1.19 | 6 | % | $ | 3.09 | $ | 3.46 | (11 | )% | ||||||
MANAGEMENT COMMENTS
"We finished the full year with double-digit growth over 2014 in closings, orders and backlog, with particularly strong performance in our east and west regions," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "Our full year orders benefitted from significant growth in the fourth quarter -- including a 16% increase in Texas -- reflecting a higher absorption pace within most of our markets, in addition to more actively selling communities.
"We achieved a 15% increase over 2014 in our pretax earnings for the fourth quarter," continued Mr. Hilton. "Our home closing revenue increased 11% as we closed more homes at higher average prices, which in turn provided greater overhead leverage and more than offset a lower gross margin on home closings. We also achieved a 100 basis point improvement in our percentage of selling, general and administrative expenses from cost controls, in addition to higher closing revenue."
Mr. Hilton added, "With continued healthy market conditions as we've been experiencing in most of our divisions, we are confident in our prospects for 2016, especially considering that we entered the year with a backlog valued at over $1.1 billion -- 34% higher than it was a year ago.
"We currently anticipate closing between 7,000 and 7,500 homes in 2016 and growing our community count 5-10% by the end of the year," concluded Mr. Hilton. "Furthermore, considering longer-term growth prospects for our industry, we believe our goal of delivering 10,000 homes in 2018 is achievable."
FOURTH QUARTER RESULTS
FULL YEAR RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 1:00 p.m. Eastern Time (11:00 a.m. Arizona Time). 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 may avoid any 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/10078808.
Telephone participants who are unable to pre-register may dial in to 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 until February 15, beginning at 2:00 p.m. ET on January 29, 2016 on the website noted above, or by dialing 877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10078808.
For more information, visit www.meritagehomes.com.
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, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Homebuilding: | ||||||||||||||||||
Home closing revenue | $ | 761,372 | $ | 688,288 | $ | 2,531,556 | $ | 2,142,391 | ||||||||||
Land closing revenue | 20,241 | 10,630 | 36,526 | 27,252 | ||||||||||||||
Total closing revenue | 781,613 | 698,918 | 2,568,082 | 2,169,643 | ||||||||||||||
Cost of home closings | (614,794 | ) | (548,371 | ) | (2,049,637 | ) | (1,688,676 | ) | ||||||||||
Cost of land closings | (14,744 | ) | (10,266 | ) | (29,736 | ) | (28,350 | ) | ||||||||||
Total cost of closings | (629,538 | ) | (558,637 | ) | (2,079,373 | ) | (1,717,026 | ) | ||||||||||
Home closing gross profit | 146,578 | 139,917 | 481,919 | 453,715 | ||||||||||||||
Land closing gross profit/(loss) | 5,497 | 364 | 6,790 | (1,098 | ) | |||||||||||||
Total closing gross profit | 152,075 | 140,281 | 488,709 | 452,617 | ||||||||||||||
Financial Services: | ||||||||||||||||||
Revenue | 3,101 | 3,022 | 11,377 | 10,121 | ||||||||||||||
Expense | (1,289 | ) | (1,368 | ) | (5,203 | ) | (4,812 | ) | ||||||||||
Earnings from financial services unconsolidated entities and other, net | 3,942 | 3,588 | 13,097 | 10,869 | ||||||||||||||
Financial services profit | 5,754 | 5,242 | 19,271 | 16,178 | ||||||||||||||
Commissions and other sales costs | (53,542 | ) | (49,492 | ) | (188,418 | ) | (156,742 | ) | ||||||||||
General and administrative expenses | (26,775 | ) | (29,138 | ) | (112,849 | ) | (104,598 | ) | ||||||||||
Income/(loss) from other unconsolidated entities, net | 77 | (83 | ) | (338 | ) | (447 | ) | |||||||||||
Interest expense | (4,003 | ) | (594 | ) | (15,965 | ) | (5,163 | ) | ||||||||||
Other income/(loss), net | 2,499 | 177 | (946 | ) | 6,572 | |||||||||||||
Earnings before income taxes | 76,085 | 66,393 | 189,464 | 208,417 | ||||||||||||||
Provision for income taxes | (23,188 | ) | (17,185 | ) | (60,726 | ) | (66,176 | ) | ||||||||||
Net earnings | $ | 52,897 | $ | 49,208 | $ | 128,738 | $ | 142,241 | ||||||||||
Earnings per share: | ||||||||||||||||||
Basic | ||||||||||||||||||
Earnings per share | $ | 1.33 | $ | 1.26 | $ | 3.25 | $ | 3.65 | ||||||||||
Weighted average shares outstanding | 39,667 | 39,133 | 39,593 | 39,017 | ||||||||||||||
Diluted | ||||||||||||||||||
Earnings per share | $ | 1.26 | $ | 1.19 | $ | 3.09 | $ | 3.46 | ||||||||||
Weighted average shares outstanding | 42,214 | 41,696 | 42,164 | 41,614 | ||||||||||||||
Meritage Homes Corporation and Subsidiaries | |||||||||
Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
(unaudited) | |||||||||
December 31, 2015 | December 31, 2014 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 262,208 | $ | 103,333 | |||||
Other receivables | 57,296 | 56,763 | |||||||
Real estate (1) | 2,098,302 | 1,877,682 | |||||||
Real estate not owned | - | 4,999 | |||||||
Deposits on real estate under option or contract | 87,839 | 94,989 | |||||||
Investments in unconsolidated entities | 11,370 | 10,780 | |||||||
Property and equipment, net | 33,970 | 32,403 | |||||||
Deferred tax asset | 59,147 | 64,137 | |||||||
Prepaids, other assets and goodwill | 80,390 | 71,052 | |||||||
Total assets | $ | 2,690,522 | $ | 2,316,138 | |||||
Liabilities: | |||||||||
Accounts payable | $ | 106,440 | $ | 83,619 | |||||
Accrued liabilities | 161,163 | 154,144 | |||||||
Home sale deposits | 36,197 | 29,379 | |||||||
Liabilities related to real estate not owned | - | 4,299 | |||||||
Loans payable and other borrowings | 23,867 | 30,722 | |||||||
Senior and convertible senior notes | 1,103,918 | 904,486 | |||||||
Total liabilities | 1,431,585 | 1,206,649 | |||||||
Stockholders' Equity: | |||||||||
Preferred stock | - | - | |||||||
Common stock | 397 | 391 | |||||||
Additional paid-in capital | 559,492 | 538,788 | |||||||
Retained earnings | 699,048 | 570,310 | |||||||
Total stockholders' equity | 1,258,937 | 1,109,489 | |||||||
Total liabilities and stockholders' equity | $ | 2,690,522 | $ | 2,316,138 | |||||
(1) Real estate - Allocated costs: | |||||||||
Homes under contract under construction | $ | 456,138 | $ | 328,931 | |||||
Unsold homes, completed and under construction | 307,425 | 302,288 | |||||||
Model homes | 138,546 | 109,614 | |||||||
Finished home sites and home sites under development | 1,196,193 | 1,136,849 | |||||||
Total real estate | $ | 2,098,302 | $ | 1,877,682 | |||||
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands - unaudited): | |||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Depreciation and amortization | $ | 3,947 | $ | 3,460 | $ | 14,241 | $ | 11,614 | |||||||||
Summary of Capitalized Interest: | |||||||||||||||||
Capitalized interest, beginning of period | $ | 61,396 | $ | 50,455 | $ | 54,060 | $ | 32,992 | |||||||||
Interest incurred | 17,877 | 15,041 | 67,542 | 58,374 | |||||||||||||
Interest expensed | (4,003 | ) | (594 | ) | (15,965 | ) | (5,163 | ) | |||||||||
Interest amortized to cost of home and land closings | (14,068 | ) | (10,842 | ) | (44,435 | ) | (32,143 | ) | |||||||||
Capitalized interest, end of period | $ | 61,202 | $ | 54,060 | $ | 61,202 | $ | 54,060 | |||||||||
December 31, 2015 | December 31, 2014 | ||||||||||||||||
Notes payable and other borrowings | $ | 1,127,785 | $ | 935,208 | |||||||||||||
Stockholders' equity | 1,258,937 | 1,109,489 | |||||||||||||||
Total capital | 2,386,722 | 2,044,697 | |||||||||||||||
Debt-to-capital | 47.3 | % | 45.7 | % | |||||||||||||
Notes payable and other borrowings | $ | 1,127,785 | $ | 935,208 | |||||||||||||
Less: cash and cash equivalents | (262,208 | ) | (103,333 | ) | |||||||||||||
Net debt | 865,577 | 831,875 | |||||||||||||||
Stockholders' equity | 1,258,937 | 1,109,489 | |||||||||||||||
Total net capital | $ | 2,124,514 | $ | 1,941,364 | |||||||||||||
Net debt-to-capital | 40.7 | % | 42.9 | % | |||||||||||||
Meritage Homes Corporation and Subsidiaries | |||||||||
Consolidated Statements of Cash Flows | |||||||||
(In thousands) (unaudited) | |||||||||
Twelve Months Ended December 31, | |||||||||
2015 | 2014 | ||||||||
Cash flows from operating activities: | |||||||||
Net earnings | $ | 128,738 | $ | 142,241 | |||||
Adjustments to reconcile net earnings to net cash used in operating activities: | |||||||||
Depreciation and amortization | 14,241 | 11,614 | |||||||
Stock-based compensation | 15,781 | 12,211 | |||||||
Excess income tax benefit from stock-based awards | (2,043 | ) | (2,297 | ) | |||||
Equity in earnings from unconsolidated entities | (12,759 | ) | (10,422 | ) | |||||
Distribution of earnings from unconsolidated entities | 12,650 | 11,613 | |||||||
Other | 11,530 | 10,149 | |||||||
Changes in assets and liabilities: | |||||||||
Increase in real estate | (209,407 | ) | (338,594 | ) | |||||
Decrease/(Increase) in deposits on real estate under option or contract | 6,316 | (42,278 | ) | ||||||
Increase in receivables, prepaids and other assets | (7,083 | ) | (25,032 | ) | |||||
Increase in accounts payable and accrued liabilities | 31,883 | 14,688 | |||||||
Increase in home sale deposits | 6,818 | 4,859 | |||||||
Net cash used in operating activities | (3,335 | ) | (211,248 | ) | |||||
Cash flows from investing activities: | |||||||||
Investments in unconsolidated entities | (481 | ) | (515 | ) | |||||
Distributions of capital from unconsolidated entities | - | 65 | |||||||
Purchases of property and equipment | (16,092 | ) | (20,788 | ) | |||||
Proceeds from sales of property and equipment | 86 | 262 | |||||||
Maturities/sales of investments and securities | 1,555 | 124,599 | |||||||
Payments to purchase investments and securities | (1,555 | ) | (35,813 | ) | |||||
Cash paid for acquisitions | - | (130,677 | ) | ||||||
Net cash used in by investing activities | (16,487 | ) | (62,867 | ) | |||||
Cash flows from financing activities: | |||||||||
Repayment of loans payable and other borrowings | (23,226 | ) | (10,447 | ) | |||||
Proceeds from issuance of senior notes | 200,000 | - | |||||||
Proceeds from issuance of common stock, net | - | 110,420 | |||||||
Debt issuance costs | (3,006 | ) | - | ||||||
Excess income tax benefit from stock-based awards | 2,043 | 2,297 | |||||||
Proceeds from stock option exercises | 2,886 | 1,042 | |||||||
Net cash provided by financing activities | 178,697 | 103,312 | |||||||
Net increase/(decrease) in cash and cash equivalents | 158,875 | (170,803 | ) | ||||||
Beginning cash and cash equivalents | 103,333 | 274,136 | |||||||
Ending cash and cash equivalents | $ | 262,208 | $ | 103,333 | |||||
Meritage Homes Corporation and Subsidiaries | ||||||||||
Operating Data | ||||||||||
(Dollars in thousands) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
December 31, 2015 | December 31, 2014 | |||||||||
Homes | Value | Homes | Value | |||||||
Homes Closed: | ||||||||||
Arizona | 291 | $ | 98,004 | 225 | $ | 73,101 | ||||
California | 323 | 175,601 | 239 | 122,851 | ||||||
Colorado | 131 | 57,211 | 146 | 64,696 | ||||||
West Region | 745 | 330,816 | 610 | 260,648 | ||||||
Texas | 559 | 194,879 | 713 | 227,342 | ||||||
Central Region | 559 | 194,879 | 713 | 227,342 | ||||||
Florida | 254 | 106,520 | 217 | 87,503 | ||||||
Georgia | 72 | 23,735 | 53 | 17,734 | ||||||
North Carolina | 162 | 66,921 | 138 | 55,870 | ||||||
South Carolina | 83 | 24,217 | 75 | 24,747 | ||||||
Tennessee | 44 | 14,284 | 57 | 14,444 | ||||||
East Region | 615 | 235,677 | 540 | 200,298 | ||||||
Total | 1,919 | $ | 761,372 | 1,863 | $ | 688,288 | ||||
Homes Ordered: | ||||||||||
Arizona | 253 | $ | 86,887 | 173 | $ | 55,489 | ||||
California | 215 | 118,370 | 173 | 96,335 | ||||||
Colorado | 105 | 51,033 | 113 | 49,958 | ||||||
West Region | 573 | 256,290 | 459 | 201,782 | ||||||
Texas | 465 | 171,938 | 401 | 133,282 | ||||||
Central Region | 465 | 171,938 | 401 | 133,282 | ||||||
Florida | 200 | 80,929 | 168 | 71,692 | ||||||
Georgia | 73 | 25,704 | 41 | 12,996 | ||||||
North Carolina | 159 | 67,492 | 127 | 46,900 | ||||||
South Carolina | 65 | 20,071 | 55 | 18,952 | ||||||
Tennessee | 33 | 11,757 | 21 | 5,395 | ||||||
East Region | 530 | 205,953 | 412 | 155,935 | ||||||
Total | 1,568 | $ | 634,181 | 1,272 | $ | 490,999 | ||||
Meritage Homes Corporation and Subsidiaries | ||||||||||
Operating Data | ||||||||||
(Dollars in thousands) | ||||||||||
(unaudited) | ||||||||||
Twelve Months Ended | ||||||||||
December 31, 2015 | December 31, 2014 | |||||||||
Homes | Value | Homes | Value | |||||||
Homes Closed: | ||||||||||
Arizona | 1,008 | $ | 325,371 | 924 | $ | 307,282 | ||||
California | 888 | 478,174 | 785 | 395,105 | ||||||
Colorado | 495 | 224,125 | 464 | 206,702 | ||||||
West Region | 2,391 | 1,027,670 | 2,173 | 909,089 | ||||||
Texas | 2,025 | 705,318 | 2,224 | 683,717 | ||||||
Central Region | 2,025 | 705,318 | 2,224 | 683,717 | ||||||
Florida | 843 | 361,127 | 699 | 277,045 | ||||||
Georgia | 228 | 72,913 | 90 | 29,633 | ||||||
North Carolina | 551 | 215,642 | 386 | 157,989 | ||||||
South Carolina | 330 | 101,847 | 112 | 36,241 | ||||||
Tennessee | 154 | 47,039 | 178 | 48,677 | ||||||
East Region | 2,106 | 798,568 | 1,465 | 549,585 | ||||||
Total | 6,522 | $ | 2,531,556 | 5,862 | $ | 2,142,391 | ||||
Homes Ordered: | ||||||||||
Arizona | 1,133 | $ | 377,059 | 838 | $ | 276,261 | ||||
California | 965 | 538,357 | 772 | 411,605 | ||||||
Colorado | 559 | 264,643 | 530 | 235,951 | ||||||
West Region | 2,657 | 1,180,059 | 2,140 | 923,817 | ||||||
Texas | 2,109 | 746,471 | 2,290 | 747,103 | ||||||
Central Region | 2,109 | 746,471 | 2,290 | 747,103 | ||||||
Florida | 893 | 376,563 | 728 | 290,343 | ||||||
Georgia | 270 | 89,755 | 72 | 22,443 | ||||||
North Carolina | 626 | 258,952 | 438 | 171,843 | ||||||
South Carolina | 348 | 105,838 | 99 | 33,177 | ||||||
Tennessee | 197 | 65,147 | 177 | 49,391 | ||||||
East Region | 2,334 | 896,255 | 1,514 | 567,197 | ||||||
Total | 7,100 | $ | 2,822,785 | 5,944 | $ | 2,238,117 | ||||
Order Backlog: | ||||||||||
Arizona | 317 | $ | 117,906 | 192 | $ | 66,218 | ||||
California | 289 | 184,146 | 212 | 123,963 | ||||||
Colorado | 332 | 162,151 | 268 | 121,633 | ||||||
West Region | 938 | 464,203 | 672 | 311,814 | ||||||
Texas | 942 | 350,194 | 858 | 309,041 | ||||||
Central Region | 942 | 350,194 | 858 | 309,041 | ||||||
Florida | 287 | 118,006 | 237 | 102,570 | ||||||
Georgia | 95 | 33,426 | 53 | 16,584 | ||||||
North Carolina | 260 | 111,478 | 185 | 68,168 | ||||||
South Carolina | 88 | 30,111 | 70 | 26,120 | ||||||
Tennessee | 82 | 30,263 | 39 | 12,155 | ||||||
East Region | 812 | 323,284 | 584 | 225,597 | ||||||
Total | 2,692 | $ | 1,137,681 | 2,114 | $ | 846,452 | ||||
Meritage Homes Corporation and Subsidiaries | ||||||||
Operating Data | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 41 | 41.0 | 41 | 41.5 | ||||
California | 24 | 25.0 | 24 | 23.0 | ||||
Colorado | 16 | 15.5 | 17 | 16.5 | ||||
West Region | 81 | 81.5 | 82 | 81.0 | ||||
Texas | 72 | 71.0 | 59 | 62.0 | ||||
Central Region | 72 | 71.0 | 59 | 62.0 | ||||
Florida | 31 | 31.0 | 29 | 27.5 | ||||
Georgia | 17 | 17.0 | 13 | 12.0 | ||||
North Carolina | 26 | 25.5 | 21 | 20.5 | ||||
South Carolina | 18 | 17.5 | 20 | 19.5 | ||||
Tennessee | 9 | 8.5 | 5 | 4.5 | ||||
East Region | 101 | 99.5 | 88 | 84.0 | ||||
Total | 254 | 252.0 | 229 | 227.0 | ||||
Twelve Months Ended | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 41 | 41.0 | 41 | 40.5 | ||||
California | 24 | 24.0 | 24 | 23.0 | ||||
Colorado | 16 | 16.5 | 17 | 15.5 | ||||
West Region | 81 | 81.5 | 82 | 79.0 | ||||
Texas | 72 | 65.5 | 59 | 64.5 | ||||
Central Region | 72 | 65.5 | 59 | 64.5 | ||||
Florida | 31 | 30.0 | 29 | 24.5 | ||||
Georgia | 17 | 15.0 | 13 | 6.5 | ||||
North Carolina | 26 | 23.5 | 21 | 19.0 | ||||
South Carolina | 18 | 19.0 | 20 | 10.0 | ||||
Tennessee | 9 | 7.0 | 5 | 5.0 | ||||
East Region | 101 | 94.5 | 88 | 65.0 | ||||
Total | 254 | 241.5 | 229 | 208.5 | ||||
About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2014. Meritage builds and sells single-family homes for first-time, move-up, luxury and active adult buyers across the Western, Southern and Southeastern United States. Meritage builds in markets including Sacramento, San Francisco Bay area, southern coastal and Inland Empire markets in California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale, Green Valley and Tucson, Arizona; Denver and Fort Collins, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina; Greenville-Spartanburg and York County, South Carolina; Nashville, Tennessee and Atlanta, Georgia.
Meritage has designed and built more than 90,000 homes in its 30-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 in 2013, 2014 and 2015, for innovation and industry leadership in energy efficient homebuilding.
For more information, visit investors.meritagehomes.com.
This press release and the accompanying comments during our analyst call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's belief about its prospects for 2016 and beyond, including that the Company will achieve better results in the east region, expectations with respect to community count and closings for 2016, as well as its goal for 2018 deliveries (closings).
Such statements are based upon the current beliefs and expectations of Company management, and current market conditions, which are subject to significant risks and uncertainties. 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. 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 of finished lots and undeveloped land; interest rates and changes in the availability and pricing of residential mortgages; fluctuations in the availability and cost of labor; changes in tax laws that adversely impact us or our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates; fluctuations in home prices in our markets; weakness in the homebuilding market resulting from a setback in the current economic recovery due to lower energy prices or other factors; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slower order absorption rates; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of option deposits; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our potential exposure to natural disasters or severe weather conditions; competition; construction defect and home warranty claims; adverse legal rulings; our success in prevailing on contested tax positions; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; changes in, or our failure to comply with, laws and regulations; limitations of our geographic diversification; fluctuations in quarterly operating results; our financial leverage and level of indebtedness; our ability to take certain actions because of restrictions contained in the indentures for our senior notes; our ability to raise additional capital when and if needed; our credit ratings; our compliance with government regulations and the effect of legislative or other initiatives that seek to restrain growth of new housing construction or similar measures; expiration or non-renewal of current or anticipated tax credits available to us; acts of war; the replication of our "Green" technologies by our competitors; our exposure to information technology failures and security breaches; 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, 2014 and subsequent quarterly reports on Forms 10-Q under the caption "Risk Factors," which can be found on our website.
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Contact Information:
Brent Anderson
VP Investor Relations
(972) 580-6360 (office)
investors@meritagehomes.com