Meritage Homes Reports Fourth Quarter and Full Year 2009 Results
Fourth Quarter Sales and Net Income Increase Over Prior Year
FOURTH QUARTER 2009 SELECTED RESULTS:
-- Reported net income of $43M or $1.35 per diluted share, including $39M
of pre-tax real estate-related impairments and a net tax benefit of
$90M, compared to net loss of $79M or ($2.58) per diluted share in 2008,
which included $110M of impairments and a $30M net tax benefit
-- Expecting a $93M tax refund in early 2010 due to carry back of net
operating losses
-- Increased net sales orders to 621 homes, 24% over 2008, with
approximately 50% higher sales per community
FULL YEAR 2009 SELECTED RESULTS:
-- Reported net loss of $66M or ($2.12) per diluted share, including $129M
of pre-tax real estate-related impairments and a net tax benefit of
$88M, compared to net loss of $292M or ($9.95) per diluted share in
2008, which included $265M of impairment charges and a $16M net tax
expense
-- Increased cash by $185M during the year, ended with $391M cash and
short-term investments, and no short-term debt
-- Reduced net debt/capital ratio to 31% after retiring $24M debt which
resulted in a $9M gain
-- Contracted for more than 4,000 new lower-priced lots with a total
purchase price of approximately $150M
SCOTTSDALE, Ariz., Jan. 26, 2010 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2009.
Summary Operating Results (unaudited)
(Dollars in millions, except per share amounts)
---------------------------------------------------------------------------------------
Three Months Ended Full year Ended December
December 31, 31,
2009 2008 %Chg 2009 2008 %Chg
------------------------------------ -------- ------- ---- -------- ------- -----
Homes closed (units) 1,202 1,488 -19% 4,039 5,627 -28%
Home closing revenue $280 $387 -28% $963 $1,505 -36%
------------------------------------ -------- ------- ---- -------- ------- -----
Sales orders (units) 621 500 24% 3,853 4,620 -17%
Sales order value $162 $112 45% $912 $1,173 -22%
------------------------------------ -------- ------- ---- -------- ------- -----
Ending backlog (units) 1,095 1,281 -15%
Ending backlog value $288 $338 -15%
------------------------------------ -------- ------- ---- -------- ------- -----
Net profit/(loss) (including
write-offs) $43 $(79) 155% $(66) $(292) 77%
Adjusted pre-tax (loss)/profit*
(excluding write-offs) $(8) $1 n/m $(26) $(11) -126%
Diluted EPS (including write-offs) $1.35 $(2.58) 153% $(2.12) $(9.95) 79%
------------------------------------ -------- ------- ---- -------- ------- -----
* Adjusted pre-tax (loss)/profit excludes impairments: See non-GAAP reconciliations of
net profit/(loss) to adjusted pre-tax profit/(loss) on "Operating Results" statement.
---------------------------------------------------------------------------------------
FOURTH QUARTER OPERATING RESULTS
Meritage reported a net profit for the fourth quarter of 2009 of $43 million or $1.35 per diluted share, including $39 million of pre-tax real estate-related impairments and a net tax benefit of $90 million. The net tax benefit recorded in the fourth quarter of 2009 was the result of tax legislation enacted in November 2009 that allowed net operating losses to be carried back up to five years to offset prior years' taxable income. As a result of carrying back 2009 losses to offset taxes paid previously, Meritage expects to collect a $93 million tax refund in early 2010. The Company reported a net loss of $79 million or ($2.58) per diluted share in the fourth quarter of 2008, which included $110 million of pre-tax charges due to real estate-related and other impairments and a $30 million net tax benefit.
"We sold several non-strategic properties near the end of 2009 that were not needed to execute our current business plan, with the added benefit of harvesting substantial tax benefits from previous impairments incurred on those properties," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "Assuming a stable to improving homebuilding environment in 2010, we believe that our risk of any further significant impairments is minimal."
Fourth quarter home closing revenue declined 28% year over year, as the Company had 14% fewer active communities in 2009 and 19% fewer homes closed, coupled with a 10% lower average closing price of approximately $233,000 in the fourth quarter of 2009, compared to approximately $260,000 in the fourth quarter of 2008. The lower average closing price reflects a higher percentage of closings from homes in lower-priced communities such as Meritage's new Simply Smart(TM) series of more affordable homes, as well as general price declines from the previous year.
Meritage generated total closing gross profit on homes and land of $3 million in the fourth quarter 2009 compared to a $48 million loss on closings in 2008. Home closing gross profit was reduced by $25 million due to impairments. It was also reduced by a $3 million charge to increase the accrual for estimated warranty expenses related to remediation of allegedly defective Chinese drywall in Ft. Myers, Florida, bringing the total reserve to $6 million, which management believes should fully reserve for the affected homes. Excluding impairments, gross margins on home closings climbed to 14.9% in the fourth quarter 2009, or 16.0% before the Chinese drywall charge, compared to 14.3% in the prior year's fourth quarter. In addition, impairments on land sold or held for sale totaled $14 million in the fourth quarter 2009 as compared to $23 million in 2008, substantially all of which related to land sales.
"Our gross margins continued to improve due to our success in reducing construction costs, combined with lower incentives and greater closing volume in our newer communities, where we are building more cost-efficient homes on lower-cost lots," said Mr. Hilton. "We are excited about our new series of Simply Smart(TM) homes, which we announced last week, designed especially for renters and first time or first move-up buyers. As we close out older communities and ramp up sales in our new communities built on the lower-cost lots we've acquired, we expect to return to more normal margins and profitability."
Fourth quarter 2009 general and administrative expenses of $21 million include $9 million related to legal accruals for ongoing litigation, discretionary performance awards and lease abandonments, which make comparability to prior quarters difficult. Including these items, total G&A increased to 7.4% of total revenue in 2009 compared to 3.9% in 2008. Excluding these items, general and administrative expenses were 4.2% of fourth quarter 2009 total revenue. Commissions and other sales costs decreased 35% year over year and declined as a percentage of total revenue to 8.1% from 8.9% in 2008. The reduction was due to savings in marketing and advertising costs after centralization of these functions, and lower model operating costs resulting from smaller model complexes.
FULL YEAR OPERATING RESULTS
Meritage reported a net loss for the full year of 2009 of $66 million or ($2.12) per share. In addition to the special charges noted for the fourth quarter, the net loss included $129 million in pre-tax real estate-related impairment charges, $3 million write-off of capitalized fees related to the reduction and ultimate termination of the Company's credit facility, a $9 million gain on extinguishment of debt, and a net tax benefit of $88 million. By comparison, the 2008 net loss of $292 million or ($9.95) per diluted share included $265 million of pre-tax impairment charges, $10 million benefit from a successful legal settlement, and a $16 million net tax expense which includes a $106 million deferred tax asset valuation allowance.
SALES
Fourth quarter 2009 net orders increased by 24% year-over-year to 621 sales, compared to 500 in 2008, primarily due to gains of 50% in Texas and 19% in California. In addition to continued low mortgage rates and historically high affordability, the gains reflect an improvement in Meritage's fourth quarter company-wide order cancellation rate to 30% in 2009 from 56% in 2008. Sales were lower than the third quarter due to normal seasonality and the last-minute extension of a federal home buyer tax credit originally scheduled to terminate on November 30, which is widely thought to have reduced the sense of urgency for buyers to purchase a home in the latter portion of the quarter.
"With November's extension and expansion of the home buyer tax credit for contracts signed before April 30, 2010, we are optimistic that this incentive will benefit our 2010 spring selling season by encouraging more people to buy a new home before the extended tax credit expires," said Mr. Hilton.
With 14% fewer active communities at December 31, 2009, the average sales per community increased by approximately 50% to 3.9 in the fourth quarter of 2009 from 2.6 in the same period last year. Management expects the Company's sales pace to continue to increase as more new communities are opened to replace those communities closing out, and as its markets continue to stabilize and begin to improve.
Meritage's backlog of orders was 15% lower in number and value at the end of the fourth quarter of 2009 compared to 2008, due to accelerated closings driven by the original November 30 expiration of the home buyers' tax credit, as well as the Company's success in reducing cycle times, which has caused backlog to close more quickly.
BALANCE SHEET
Meritage generated $184 million positive cash flow from operations for the full year 2009, after using $182 million of cash to purchase approximately 4,700 lots during the year. The Company ended the year with $391 million in cash and cash equivalents, restricted cash and short-term investments, an increase of $185 million over the year-end 2008 total. After retiring $24 million of debt in exchange for equity during 2009, the Company's net debt to total capital ratio was 31% at December 31, 2009, compared to 45% at December 31, 2008. Meritage also terminated its unused credit facility in 2009.
"We continued to acquire new communities where we believe we can earn near-normal margins and generate attractive returns with the least risk from foreclosures, rising inventories or falling prices," said Mr. Hilton. "We contracted for more than 1,000 additional lots in the fourth quarter, bringing our total lots put under contract during 2009 to more than 4,000, for a total purchase price of approximately $150 million. Based on our market research, we believe we have acquired lots at very attractive prices that should help us return to profitability in 2010."
At December 31, 2009, Meritage's total 12,906 lots under control represented about 3.2 years lot supply based on trailing twelve months closings, with approximately 77% of total lots owned. By comparison, the Company controlled 15,802 lots at December 31, 2008, with 55% of total lots owned.
In addition to the $93 million tax refund which we're expecting to receive in early 2010, Meritage has total cumulative deferred tax assets of $93 million ($68 million federal and $25 million state) or $2.91 per share as of December 31, 2009, which have been fully reserved and therefore not shown on the balance sheet, but are available to offset future income taxes.
SUMMARY
"We undertook a number of strategic initiatives last year to enhance virtually every area of the company, and I'm very pleased with our progress," said Mr. Hilton. "Based on what we've already accomplished and our on-going plans, I believe we have not only positioned the Company for a return to profitability in 2010, but have also permanently improved our competitiveness. We have significantly reduced our construction costs and overhead, and expect to realize further gains through a managed process of continuous improvement in our operations. We have built a robust market research function that we believe gives us a strategic advantage in underwriting lot acquisitions and pricing our homes, through a better understanding of the competitive landscape for both resale and new homes, as well as home buyer trends in our markets. We have introduced our Simply Smart series of new home designs targeting the first time and first move-up market, competing successfully with both new and existing homes, and offering Meritage quality at very affordable prices. We have expanded our green building initiative to become the first public homebuilder to meet Energy Star qualifications in every home we start in 2010. And most recently, we have rolled out our 99-day guaranteed delivery program in selected communities, offering "Your home. Your way. In 99 days -- guaranteed," allowing home buyers to enjoy all the benefits of purchasing a new built-to-order home over a used one, without the long construction period previously associated with building a new home."
"I have never been more confident in our people and our abilities than I am today, and I believe our future is bright," said Mr. Hilton. "While we face a number of uncertainties, including the sustainability of an economic recovery, high unemployment, the risk of inflation, and potential fiscal and public policy actions by our government, we have also seen many signs of stabilization and even improvement in certain of our markets that make me optimistic. I believe the potential for positive outcomes significantly outweighs the negatives at this point, and I eagerly anticipate the further successes we plan to achieve in 2010."
CONFERENCE CALL
Management will host a conference call to discuss these results on January 27, 2010 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time.) The call will be webcast by Business-to-Investor, Inc. (B2i), with an accompanying slideshow on the "Investor Relations" page of the Company's web site at http://investors.meritagehomes.com. For telephone participants, the dial-in number is 877-485-3104 with a passcode of "Meritage". Participants are encouraged to dial in five minutes before the call begins. A replay of the call will be available after 11:30 p.m. ET, through February 28, 2010 on the website noted above, or by dialing 877-660-6853, and referencing passcode 341594.
Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
Three Months Ended Full year Ended
December 31, December 31,
2009 2008 2009 2008
--------- ---------------- ---------------- ----------------
Operating results
Home closing revenue $279,589 $386,631 $962,797 $1,505,117
Land closing revenue 6,231 12,944 7,516 17,951
--------- ---------------- ---------------- ----------------
Total closing revenue 285,820 399,575 970,313 1,523,068
Home closing gross
profit/(loss) 17,244 (25,855) 18,693 5,280
Land closing gross loss (14,192) (22,579) (14,642) (42,195)
--------- ---------------- ---------------- ----------------
Total closing gross
profit/(loss) 3,052 (48,434) 4,051 (36,915)
Commissions and other sales
costs (23,058) (35,586) (78,683) (136,860)
General and administrative
expenses (21,235) (15,750) (63,148) (68,231)
Goodwill and intangible asset
impairments -- (1,133) -- (1,133)
Interest expense (8,016) (6,619) (36,531) (23,653)
Other income/(loss), net 2,260 (1,918) 19,512 (9,174)
--------- ---------------- ---------------- ----------------
Loss before income taxes (46,997) (109,440) (154,799) (275,966)
Benefit/(provision) for income
taxes 90,283 30,291 88,343 (15,969)
--------- ---------------- ---------------- ----------------
Net profit/(loss) $43,286 $(79,149) $(66,456) $(291,935)
========= ================ ================ ================
Earnings/(loss) per share
Basic:
Earnings/(loss) per share $1.36 $(2.58) $(2.12) $(9.95)
Weighted average shares
outstanding 31,805 30,695 31,350 29,330
Diluted:
Earnings/(loss) per share $1.35 $(2.58) $(2.12) $(9.95)
Weighted average shares
outstanding 32,037 30,695 31,350 29,330
Non-GAAP Reconciliations:
Total home closing gross
profit/(loss) $17,244 $(25,855) $18,693 $5,280
Add Real estate-related
impairments:
Terminated lot options 5,274 48,888 70,953 74,134
Impaired projects 19,273 32,257 40,537 120,821
--------- ---------------- ---------------- ----------------
Adjusted home closing gross
profit (1) $41,791 $55,290 $130,183 $200,235
========= ================ ================ ================
Loss before income taxes $(46,997) $(109,440) $(154,799) $(275,966)
Add Real estate-related, joint
venture (JV) and other
impairments:
Terminated lot options 5,274 48,888 70,953 74,134
Impaired projects 19,273 32,257 40,537 120,821
Goodwill and intangible
asset impairments -- 1,133 -- 1,133
Land sales impairments 14,186 22,791 14,726 42,484
Joint venture impairments 2 5,242 2,832 26,001
--------- ---------------- ---------------- ----------------
Adjusted (loss)/profit before
income taxes $(8,262) $871 $(25,751) $(11,393)
========= ================ ================ ================
(1) Included in the three months and full year 2009 adjusted closing gross profits are $3,018 (108
bps) and $6,018 (63 bps), respectively, of charges related to Chinese drywall remediation costs.
There were no such charges in 2008.
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
December December
31, 2009 31, 2008
---------- ----------
Assets:
Cash and cash equivalents $249,331 $205,923
Investments and securities 125,699 --
Restricted cash 16,348 --
Income tax receivable 92,509 111,508
Other receivables 22,934 31,046
Real estate (1) 675,037 859,305
Investments in unconsolidated
entities 11,882 17,288
Option deposits 8,636 51,658
Other assets 40,291 49,521
---------- ----------
Total assets $1,242,667 $1,326,249
========== ==========
Liabilities:
Accounts payable, accrued
liabilities, home buyer
deposits and other
liabilities $152,233 $170,075
Senior notes 479,134 478,968
Senior subordinated notes 125,875 150,000
---------- ----------
Total liabilities 757,242 799,043
Total stockholders' equity 485,425 527,206
---------- ----------
Total liabilities and equity $1,242,667 $1,326,249
========== ==========
(1) Real estate - Allocated
costs:
Homes under contract under
construction $114,769 $170,347
Finished homesites and
homesites under development 407,592 455,048
Unsold homes, completed and
under construction 73,442 158,378
Model homes 37,601 48,608
Land held for development or
sale 41,633 26,924
---------- ----------
Total allocated costs $675,037 $859,305
========== ==========
Supplemental Information and Non-GAAP Financial Disclosures (In thousands
-- unaudited):
Three Months As of and for the
Ended December Full year Ended
31, December 31,
2009 2008 2009 2008
-------- ------ --------- ---------
Interest amortized to cost of
sales 5,339 12,163 21,264 41,625
Interest expensed 8,016 6,619 36,531 17,993
Depreciation and amortization 2,296 5,884 8,843 15,669
Net debt-to-capital:
Notes payable and other
borrowings $605,009 $628,968
Less: cash and cash equivalents,
restricted cash, and investments
and securities (391,378) (205,923)
--------- ---------
Net debt 213,631 423,045
Stockholders' equity 485,425 527,206
--------- ---------
Capital $699,056 $950,251
Net debt-to-capital 30.6% 44.5%
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
Three Months Ended Full year Ended
December 31, December 31,
2009 2008 2009 2008
--------- ---------- ---------- -----------
Net profit/(loss) $43,286 $ (79,149) $ (66,456) $ (291,935)
Real-estate related impairments 38,733 110,311 126,216 237,439
Goodwill and intangible asset
impairments -- -- -- 1,133
Decrease in deferred taxes -- 18,998 -- 20,494
Deferred tax valuation allowance -- 12,338 -- 118,563
Equity in earnings from JVs (including
impairments) and
distributions of JV earnings, net 282 5,067 4,273 27,087
Decrease in real estate and deposits,
net 13,908 115,586 108,628 211,404
Other operating activities (69,569) (84,232) 11,413 (124,356)
--------- ---------- ---------- -----------
Net cash provided by operating
activities 26,640 98,919 184,074 199,829
--------- ---------- ---------- -----------
Payments to purchase investments and
securities (125,699) -- (125,699) --
Payments to fund restricted cash 2,256 -- (16,348 --
Other financing activities (1,307) (6,784) (3,372) (23,263)
--------- ---------- ---------- -----------
Cash used in investing activities (124,750) (6,784) (145,419) (23,263)
--------- ---------- ---------- -----------
Net repayments under Credit Facility -- -- -- (82,000)
Proceeds from issuance of common stock,
net -- (3) -- 82,772
Other financing activities 490 122 4,753 908
--------- ---------- ---------- -----------
Net cash provided by financing
activities 490 119 4,753 1,680
--------- ---------- ---------- -----------
Net (decrease)/increase in cash (97,620) 92,254 43,408 178,246
Beginning cash and cash equivalents 346,951 115,153 205,923 27,677
--------- ---------- ---------- -----------
Ending cash and cash equivalents(1) $249,331 $207,407 $249,331 $205,923
========= ========== ========== ===========
(1) Ending cash and cash equivalents excludes Investments and securities and Restricted
cash totaling $142 million.
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
For the Three Months Ended December
31,
2009 2008
------------------ ---------------
Homes Value Homes Value
-------- -------- ----- --------
Homes Closed:
California 130 $40,155 125 $54,435
Nevada 18 3,325 42 10,560
-------- -------- ----- --------
West Region 148 43,480 167 64,995
Arizona 218 45,044 312 66,552
Texas 726 163,344 906 223,201
Colorado 40 11,223 44 14,890
-------- -------- ----- --------
Central Region 984 219,611 1,262 304,643
Florida 70 16,498 59 16,993
-------- -------- ----- --------
East Region 70 16,498 59 16,993
-------- -------- ----- --------
Total 1,202 $279,589 1,488 $386,631
======== ======== ===== ========
Homes Ordered:
California 63 $22,921 53 $16,257
Nevada 20 3,718 15 2,694
-------- -------- ----- --------
West Region 83 26,639 68 18,951
Arizona 117 26,711 119 23,083
Texas 334 86,563 222 48,359
Colorado 33 9,506 34 9,848
-------- -------- ----- --------
Central Region 484 122,780 375 81,290
Florida 54 12,919 57 11,528
-------- -------- ----- --------
East Region 54 12,919 57 11,528
Total 621 $162,338 500 $111,769
======== ======== ===== ========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
For the Full year Ended December 31,
2009 2008
------------------ -----------------
Homes Value Homes Value
-------- -------- ----- ----------
Homes Closed:
California 348 $116,197 581 $241,792
Nevada 130 27,049 247 65,734
-------- -------- ----- ----------
West Region 478 143,246 828 307,526
Arizona 781 156,107 1,084 271,646
Texas 2,405 566,879 3,217 783,835
Colorado 145 44,225 145 50,213
-------- -------- ----- ----------
Central Region 3,331 767,211 4,446 1,105,694
Florida 230 52,340 353 91,897
-------- -------- ----- ----------
East Region 230 52,340 353 91,897
-------- -------- ----- ----------
Total 4,039 $962,797 5,627 $1,505,117
======== ======== ===== ==========
Homes Ordered:
California 350 $116,609 504 $194,170
Nevada 119 23,267 208 53,527
-------- -------- ----- ----------
West Region 469 139,876 712 247,697
Arizona 738 146,006 884 193,299
Texas 2,233 518,288 2,632 629,639
Colorado 140 42,416 136 45,341
-------- -------- ----- ----------
Central Region 3,111 706,710 3,652 868,279
Florida 273 65,715 256 57,187
-------- -------- ----- ----------
East Region 273 65,715 256 57,187
-------- -------- ----- ----------
Total 3,853 $912,301 4,620 $1,173,163
======== ======== ===== ==========
Order Backlog:
California 89 $34,322 87 $33,910
Nevada 14 2,671 25 6,453
-------- -------- ----- ----------
West Region 103 36,993 112 40,363
Arizona 147 32,110 190 42,211
Texas 715 181,564 887 230,155
Colorado 39 11,456 44 13,265
-------- -------- ----- ----------
Central Region 901 225,130 1,121 285,631
Florida 91 25,412 48 12,037
-------- -------- ----- ----------
East Region 91 25,412 48 12,037
-------- -------- ----- ----------
Total 1,095 $287,535 1,281 $338,031
======== ======== ===== ==========
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Three Months
Ended Ended
December 31, December 31,
2009 2008
------------- -------------
Beg. End Beg. End
-------- --- -------- ---
Active
Communities:
California 9 7 15 12
Nevada 6 6 12 12
-------- --- -------- ---
West Region 15 13 27 24
Arizona 28 26 30 31
Texas 102 98 132 109
Colorado 3 6 5 3
-------- --- -------- ---
Central Region 133 130 167 143
Florida 14 10 13 11
-------- --- -------- ---
East Region 14 10 13 11
-------- --- -------- ---
Total 162 153 207 178
======== === ======== ===
Full year Full year
Ended Ended
December 31, December 31,
2009 2008
------------- -------------
Beg. End Beg. End
-------- --- -------- ---
Active
Communities:
California 12 7 27 12
Nevada 12 6 11 12
-------- --- -------- ---
West Region 24 13 38 24
Arizona 31 26 36 31
Texas 109 98 127 109
Colorado 3 6 6 3
-------- --- -------- ---
Central Region 143 130 169 143
Florida 11 10 13 11
-------- --- -------- ---
East Region 11 10 13 11
-------- --- -------- ---
Total 178 153 220 178
======== === ======== ===
About Meritage Homes Corporation
The year 2010 marks the 25th Anniversary of Meritage Homes Corporation, the 9th largest homebuilder in the U.S. based on homes closed. Meritage offers a variety of homes across the Southern and Western states designed to appeal to a wide range of home buyers, including first-time, move-up, luxury and active adult buyers, with base prices starting from under $100,000. As of December 31, 2009, the Company had 153 actively selling communities in 12 metropolitan areas including Houston, Dallas/Ft. Worth, Austin, San Antonio, Phoenix/Scottsdale, Tucson, Las Vegas, Denver, Orlando, and the East Bay/Central Valley and Inland Empire of California. Meritage Homes and its predecessor companies have delivered more than 65,000 homes since the Company was founded in 1985.
Meritage Homes is listed on the NYSE under the symbol MTH.
For more information about the Company, visit http://investors.meritagehomes.com
Click here to join our email alert list: http://www.b2i.us/irpass.asp?BzID=1474&to=ea&s=0
The Meritage Homes Corporation logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=2624
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include: Meritage's expectations of returning to profitability in 2010; that the pace of sales per community and margins will improve as new communities are opened, and as markets stabilize and improve; expected tax refunds in 2010; risk of future impairments; the anticipated impact on 2010 sales of the home buyer tax credit program; perceptions about the value of land acquisitions in 2009; statements about Meritage's future competitive position and the benefits anticipated from the Company's continuous improvement process and market research function; and intentions to acquire additional communities through the balance of 2010. 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 as set forth in our Form 10-K for the year ended December 31, 2008 under the caption "Risk Factors," and updated in our subsequent Quarterly Reports on Form 10-Q. As a result of these and other factors, actual results may differ from those set forth in the forward-looking statements and the Company's stock and note prices may fluctuate dramatically. 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.
CONTACT: Meritage Homes Corporation
Investor Relations:
Brent Anderson, Vice President-Investor Relations
(972) 580-6360
Corporate Communications:
Jane Hays, Vice President-Corporate Communications
(972) 580-6353
Released January 26, 2010