Meritage Homes Reports Increases in Sales, Gross Profit and Net Operating Results for the Third Quarter of 2009
THIRD QUARTER 2009 SELECTED RESULTS:
-- Increased net sales orders to 1,098 homes, reporting the
Company's first quarterly year-over-year increase and lowest
cancellation rate since the housing downturn began in 2006
-- Narrowed net loss to $0.56 per share from $4.69 loss per share
in 2008, with 76% lower impairments
-- Improved gross profit margin excluding impairments to 14.5% --
its highest level in eight quarters -- over 12.3% in the prior
quarter and 12.7% in the prior year
-- Managed overhead costs to reduce general and administrative
expenses by 31% from prior year
YEAR TO DATE 2009 SELECTED RESULTS:
-- Cut net loss position by nearly half due to cost controls and
lower impairments
-- Decreased inventory of unsold homes to 2.5 per community and
maintained 3.1 years supply of lots (based on ttm closings)
while replacing older lots with new lower-priced lots
-- Reduced net debt/capital ratio to 35% after retiring $24M debt
and increasing cash by $160M
SCOTTSDALE, Ariz., Oct. 26, 2009 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, today announced third quarter results for the period ended September 30, 2009.
Summary Operating Results (unaudited)
(Dollars in millions, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 %Chg 2009 2008 %Chg
----------------------------------------------------------------------
Homes closed (units) 1,015 1,423 -29% 2,837 4,139 -31%
Home closing revenue $ 232 $ 373 -38% $ 683 $1,118 -39%
----------------------------------------------------------------------
Sales orders (units) 1,098 1,013 8% 3,232 4,120 -22%
Sales order value $ 254 $ 254 0% $ 750 $1,061 -29%
----------------------------------------------------------------------
Ending backlog (units) 1,676 2,269 -26%
Ending backlog value $ 405 $ 613 -34%
----------------------------------------------------------------------
Net loss (including
write-offs) $ (18) $ (144) 88% $ (110) $ (213) 48%
Adjusted pre-tax loss*
(excluding write-offs) $ (4) $ (7) 32% $ (17) $ (12) -43%
Diluted EPS (including
write-offs) $(0.56) $(4.69) 88% $(3.52) $(7.37) 52%
----------------------------------------------------------------------
* Adjusted pre-tax loss excludes impairments: See non-GAAP
reconciliations of net loss to adjusted pre-tax loss on "Operating
Results" statement
----------------------------------------------------------------------
THIRD QUARTER OPERATING RESULTS
Meritage reported a net loss for the third quarter of 2009 of $18 million or $0.56 per share, compared to a net loss of $144 million or $4.69 per share in the third quarter of 2008. The improved results in 2009 benefited from lower pre-tax real estate-related impairment charges of $13 million in 2009, compared to $55 million of similar charges in 2008. Excluding these charges, the pre-tax losses from operations were $4 million in the third quarter of 2009 and $7 million in the third quarter of 2008. Additionally, the 2008 net loss included a $106 million charge for a deferred tax asset valuation allowance.
Third quarter home closing revenue declined 38% year over year, due to 29% fewer homes closed, coupled with a 13% lower average closing price of approximately $228,000 in the third quarter of 2009, compared to approximately $262,000 in the third quarter of 2008. The lower average closing price reflects general market declines, in addition to Meritage's new series of more affordable homes, designed to appeal to first time and first move-up home buyers. Sales of homes to entry level and first move-up buyers represented about two-thirds of the Company's third quarter 2009 sales.
The Company's gross profit margin excluding impairment charges reached its highest level in the last eight quarters, climbing to 14.5% from 12.3% in the prior quarter and 12.7% in the prior year's third quarter. Net of impairments, gross margins were 9.9% for the third quarter of 2009 and -1.7% for the third quarter of 2008.
"We've significantly improved our gross margins despite pricing pressures by designing efficient homes that offer our buyers tremendous value, reducing our construction costs, and building communities in highly desirable locations. We have driven down our average construction costs by 30-40% in many of our markets, allowing us to offer lower prices while also improving our profitability per home," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "Our newer communities, where we are building these homes on lower-cost lots, are achieving higher margins and selling at a faster pace than most of our older communities. As we close out those older communities and our new communities become a larger component of our total sales, we expect to return to more normal margins and profitability."
By continuing its focus on tight control of overhead costs, Meritage also reduced its general and administrative expenses by 31%, to $14 million in the third quarter of 2009, from $21 million in the previous year. Commissions and other sales costs were 46% lower in 2009 than 2008, greater than the 38% decline in home closing revenue, due to lower marketing and advertising costs from regionalizing these functions, and lower model operating costs from owning fewer models.
Meritage reported positive earnings before interest, taxes, depreciation and impairments (adjusted EBITDA -- see "Non-GAAP Financial Disclosures" statement) of $11 million, a 7% increase over the third quarter of 2008. The Company has reported positive adjusted EBITDA every quarter throughout the housing recession.
YEAR TO DATE OPERATING RESULTS
Meritage reported a net loss for the first nine months of 2009 of $110 million or $3.52 per share, compared to a net loss of $213 million or $7.37 per share in the first nine months of 2008. The 2009 net loss included $90 million year to date in pre-tax real estate-related impairment charges and a $3 million write-off of capitalized fees related to the reduction and ultimate termination of the Company's credit facility, partially offset by a $9 million gain on extinguishment of debt. The 2008 year to date loss included $154 million of pre-tax real estate-related impairment charges, a $10 million benefit from a legal settlement in the second quarter, and the deferred tax asset valuation allowance of $106 million.
Since the third quarter of 2008, the Company has fully reserved its deferred tax assets arising from its operating losses. The cumulative deferred tax assets totaled $169 million as of September 30, 2009, which are available to offset federal income tax liability on an estimated $480 million of future taxable income.
SALES
Net orders showed the first quarterly year-over-year increase in the past 15 quarters, since the beginning of the downturn in the housing market. Net orders of 1,098 homes in the third quarter were 8% higher than the prior year's sales of 1,013 homes. The increase was driven by gains of 53% in California, 40% in Colorado and 176% in Florida, which together made up 23% of third quarter 2009 sales. These strong increases in some of the Company's hardest hit markets were muted by minor decreases in the Company's largest markets, as Texas sales were 2% lower and Arizona was 4% lower than the previous year.
The third quarter cancellation rate of 20% was the lowest for Meritage in more than four years. By comparison, after the financial crisis in September of 2008, the third quarter 2008 cancellation rate was 40%.
With 22% fewer active communities at September 30, 2009, the average sales per community increased to 6.5 for the third quarter 2009 from 4.8 in the same period last year. Management expects the sales pace to improve as more new communities are opened, and as its markets stabilize and improve.
Meritage's backlog of orders was 26% lower at the end of the third quarter of 2009 compared to 2008, but has grown successively over each of the last four quarters.
BALANCE SHEET
Meritage has generated nearly $500 million cash flow from operations over the last eight quarters, and increased cash by $247 million over the last twelve months, ending with $366 million in cash, cash equivalents and restricted cash as of September 30, 2009. The increase in cash helped the Company reduce its net debt/capital ratio to 35%, from 46% one year earlier, after also retiring $24 million in debt in the first nine months of 2009. The Company has redeployed a portion of its cash to replenish its supply of lots and replace older communities as they close, by acquiring finished lots in desirable locations at deeply discounted prices, often less than the cost of developing those lots. Unrestricted cash declined by $38 million during the third quarter, primarily due to the use of cash for new lot positions and a $19 million restricted cash balance established to secure outstanding letters of credit previously supported by the credit facility, which was terminated during the quarter.
"We are reinvesting in our future by acquiring lower-priced lots in locations where we have identified the best opportunities to sell our homes with the least risk from foreclosures, increasing home inventories, falling prices or other adverse market conditions," said Mr. Hilton. "During the quarter, we contracted for 2,500 lots in 11 communities within five states. This lot count includes approximately 1,300 lots in Province, an award-winning active adult community outside Phoenix that we put under contract during the quarter and closed in October.
"We are actively pursuing finished lot positions in most of our markets, and expect to acquire additional communities through the balance of the year," Mr. Hilton continued.
At September 30, 2009, Meritage's total 13,221 lots represented about 3.1 years lot supply based on trailing twelve months closings. That included 8,359 owned lots, 63% of the total. By comparison, the Company's total lot supply was 20,738, or 3.3 years supply at September 30, 2008, with 44% or 9,095 of those lots owned.
Meritage held 407 unsold homes in inventory at September 30, 2009, an average of 2.5 specs per community, compared to 809 or 3.9 specs per community one year earlier. The Company has been starting more homes before obtaining a sales contract as part of its strategy to have homes available for sales to first time home buyers and renters, but sales have outpaced starts, resulting in a net reduction in spec inventory during the year.
The Company has also reduced its average time from sale to close by approximately eight weeks since the beginning of 2008. By shortening cycle times from sale to close, Meritage should be able to build and deliver more homes without increasing the inventory on its balance sheet, thereby improving its returns on assets and invested capital.
STOCK EXCHANGED FOR DEBT
In the first nine months of 2009, Meritage retired a total of $24 million of its 7.731% senior subordinated notes due 2017 in exchange for 783,000 shares of Meritage Homes common stock at an implied discount of 41% to the face value of the notes retired, saving approximately two million dollars of future interest cost per year. This resulted in a $9 million gain on the early extinguishment of debt, included as a component of other income.
TERMINATED CREDIT FACILITY
Meritage terminated its credit facility at the end of the third quarter of 2009, as the Company did not anticipate needing the $150 million facility before the agreement was due to expire in May of 2011. The Company entered into three new commitments for letters of credit with an aggregate capacity of approximately $53 million, securing approximately $19 million in outstanding letters of credit previously supported by the credit facility, and providing additional capacity for future needs. The termination of the facility resulted in a non-cash charge in the third quarter of 2009 of approximately $800,000 to write off capitalized origination fees, and is expected to save the Company approximately $2 million in fees over the remaining life of the facility.
SUMMARY
"We have made excellent progress toward achieving our plan to return to profitability in 2010, and believe we will be profitable for the entire year, anticipating no material impairments as our markets stabilize and improve," said Mr. Hilton. "We have reduced our direct costs and overhead cost structure, redesigned homes and repositioned communities, allowing us to offer quality Meritage homes at very affordable and competitive prices. Based on our projections for the fourth quarter, we expect to generate positive cash flow from operations for the full year 2009, after cash used for lot acquisitions during the year, but before including the tax refunds of $108 million collected early this year.
"Because we are not saddled with heavy debt or long land positions, as some homebuilders are, we are able to use our strong financial position and shorter lot supply to restock our balance sheet with new lower-cost lots that are generating better margins."
Mr. Hilton continued, "I believe our market research is a competitive advantage that helps us make good decisions quickly as we evaluate lot acquisitions, product offerings and pricing. The intelligence provided by our research gives us confidence that we're acquiring lots in the right locations at the right price, both minimizing our risk and maximizing our upside potential."
He concluded, "I believe this is one of those times in history that can be a game-changer for many industries, and an opportunity to define who the next leaders will be. Meritage is well positioned and our organization is poised to make the most of our opportunities. I'm excited about the prospects for our future."
Management will host a conference call to discuss these results on October 27, 2009 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific 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 12:30 p.m. ET, October 27, 2009 on the website noted above, or by dialing 877-660-6853, and referencing passcode 334226.
Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Operating results
Home closing revenue $ 231,816 $ 372,907 $ 683,208 $1,118,486
Land closing revenue -- 1,859 1,285 5,007
---------- ---------- ---------- ----------
Total closing revenue 231,816 374,766 684,493 1,123,493
Home closing gross
profit 23,183 6,786 1,449 31,135
Land closing gross loss (281) (13,050) (450) (19,616)
---------- ---------- ---------- ----------
Total closing gross
profit/(loss) $ 22,902 $ (6,264) $ 999 $ 11,519
Commissions and other
sales costs (18,382) (33,840) (55,625) (101,274)
General and
administrative
expenses(1) (14,269) (20,735) (41,913) (52,481)
Interest expense (8,853) (5,835) (28,515) (17,034)
Other income/(loss),
net(2) 963 5,092 17,252 (7,256)
---------- ---------- ---------- ----------
Loss before income
taxes (17,639) (61,582) (107,802) (166,526)
Provision for income
taxes (146) (82,431) (1,940) (46,260)
---------- ---------- ---------- ----------
Net loss $ (17,785) $ (144,013) $ (109,742) $ (212,786)
========== ========== ========== ==========
Loss per share
Basic and Diluted:
Loss per share $ (0.56) $ (4.69) $ (3.52) $ (7.37)
Weighted average
shares outstanding 31,718 30,690 31,197 28,872
Non-GAAP
Reconciliations:
Total closing gross
profit/(loss) $ 22,902 $ (6,264) $ 999 $ 11,519
Add: Real estate-
related impairments
Terminated lot
options and land
sales 3,505 19,342 66,219 44,939
Impaired projects 7,130 34,670 21,264 88,564
---------- ---------- ---------- ----------
Adjusted closing gross
profit $ 33,537 $ 47,748 $ 88,482 $ 145,022
========== ========== ========== ==========
Loss before income
taxes $ (17,639) $ (61,582) $ (107,802) $ (166,526)
Add: Real estate-
related and joint
venture (JV)
impairments
Terminated lot
options and land
sales 3,505 19,342 66,219 44,939
Impaired projects 7,130 34,670 21,264 88,564
JV impairments 2,611 1,070 2,830 20,759
---------- ---------- ---------- ----------
Adjusted loss before
income taxes $ (4,393) $ (6,500) $ (17,489) $ (12,264)
========== ========== ========== ==========
(1) General and administrative expenses for the nine months ended
September 30, 2008 reflect a $10.2 million benefit related to a
successful legal settlement.
(2) Other income is net of the Joint Venture (JV) impairments shown
in the "Non-GAAP reconciliations" section above. 2009 includes a
gain on early extinguishment of debt of $9 million in the nine
months ended September 30, 2009.
Meritage Homes Corporation and Subsidiaries
Non-GAAP Financial Disclosures
(In thousands)
(unaudited)
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
EBITDA reconciliation:(1)
Net loss $ (17,785) $(144,013) $(109,742) $(212,786)
Provision/(benefit) for
income taxes 146 82,431 1,940 46,260
Interest amortized to cost
of sales and interest
expense 12,891 13,068 44,440 40,836
Depreciation and
amortization 2,002 3,221 6,547 9,785
--------- --------- --------- ---------
EBITDA $ (2,746) $ (45,293) $ (56,815) $(115,905)
Add back:
Real estate-related
impairments 13,246 55,082 90,313 154,262
Fixed asset impairments -- -- -- --
Goodwill and intangible
asset impairments -- -- -- --
--------- --------- --------- ---------
Adjusted EBITDA $ 10,500 $ 9,789 $ 33,498 $ 38,357
========= ========= ========= =========
As of and for the
Twelve Months Ended
September 30,
2009 2008
---- ----
EBITDA reconciliation:(1)
Net loss $ (188,891) $ (341,625)
Provision/(benefit) for income taxes (28,351) (22,380)
Interest amortized to cost of sales and
interest expense 63,222 59,185
Depreciation and amortization 12,431 14,147
---------- ----------
EBITDA $ (141,589) $ (290,673)
Add back:
Real estate-related impairments 199,491 283,787
Fixed asset impairments -- 3,124
Goodwill and intangible asset impairments 1,133 57,538
---------- ----------
Adjusted EBITDA $ 59,035 $ 53,776
========== ==========
Interest coverage ratio:(2)
Adjusted EBITDA $ 59,035 $ 53,776
Interest incurred 48,109 52,648
Interest coverage ratio 1.2 1.0
Net debt-to-capital:(3)
Notes payable and other borrowings $ 604,968 $ 629,718
Less: cash, cash equivalents and restricted
cash (365,555) (119,027)
---------- ----------
Net debt 239,413 510,691
Stockholders' equity 440,559 604,891
---------- ----------
Capital $ 679,972 $1,115,582
Net debt-to-capital 35.2% 45.8%
(1) EBITDA and adjusted EBITDA are non-GAAP financial measures
representing net earnings /(loss) before interest amortized to cost
of sales and interest expense, income taxes, depreciation and
amortization, with write-offs and non-cash impairment charges also
excluded from adjusted EBITDA. A non-GAAP financial measure is a
numerical measure of a company's historical or future financial
performance, financial position or cash flows that excludes amounts,
or is subject to adjustments that have the effect of excluding
amounts, that are included in the most directly comparable measure
calculated and presented in accordance with GAAP in the statement of
operations, balance sheet, or statement of cash flows (or equivalent
statements) of the Company; or includes amounts, or is subject to
adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated and
presented. In this regard, GAAP refers to generally accepted
accounting principles in the United States. We have provided a
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measure. EBITDA is presented here
because it is used by management to analyze and compare Meritage with
other homebuilding companies on the basis of operating performance
and we believe it is a financial measure widely used by investors and
analysts in the homebuilding industry. EBITDA as presented may not be
comparable to similarly titled measures reported by other companies
because not all companies calculate EBITDA in an identical manner
and, therefore, it is not necessarily an accurate means of comparison
between companies. EBITDA is not intended to represent cash flows for
the period or funds available for management's discretionary use nor
has it been presented as an alternative to operating income or as an
indicator of operating performance and it should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP. Adjusted EBITDA is presented because it more
closely, although not exactly, resembles the comparable covenant
calculations under our senior and senior subordinated note
indentures.
(2) Interest coverage ratio is calculated as the trailing four
quarters' adjusted EBITDA divided by the trailing four quarters'
interest incurred.
(3) Net debt-to-capital is calculated as notes payable and other
borrowings less cash, cash equivalents and restricted cash, divided
by the sum of notes payable and other borrowings, less cash, cash
equivalents and restricted cash, plus stockholders' equity.
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
September 30, December 31,
2009 2008
------------- -------------
Assets:
Cash and cash equivalents $ 346,951 $ 205,923
Restricted Cash 18,604 --
Income tax receivable 2,125 111,508
Other receivables 27,063 31,046
Real estate(1) 718,438 859,305
Investments in unconsolidated entities 12,311 17,288
Option deposits 12,309 51,658
Other assets 45,838 49,521
------------- -------------
Total assets $ 1,183,639 $ 1,326,249
============= =============
Liabilities:
Senior notes $ 479,093 $ 478,968
Senior subordinated notes 125,875 150,000
Revolving credit facility -- --
Accounts payable, accrued liabilities,
home sale deposits and other
liabilities 138,112 170,075
------------- -------------
Total liabilities 743,080 799,043
Total stockholders' equity 440,559 527,206
------------- -------------
Total liabilities and equity $ 1,183,639 $ 1,326,249
============= =============
(1) Real estate - Allocated costs:
Homes under contract under
construction $ 191,699 $ 170,347
Unsold homes, completed and under
construction 67,917 158,378
Model homes 37,552 48,608
Finished home sites and home sites
under development 364,716 455,048
Land held for development or sale 56,554 26,924
------------- -------------
Total allocated costs $ 718,438 $ 859,305
============= =============
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Operating results
Net loss $ (17,785) $(144,013) $(109,742) $(212,786)
Real-estate related
impairments 10,635 54,012 87,483 133,503
Decrease in deferred taxes -- 10,519 -- 1,496
Deferred tax valuation
allowance -- 106,225 -- 106,225
Equity in (losses)/earnings
from JVs (including
impairments) and
distributions of JV
earnings, net 2,335 1,041 3,991 22,020
(Increase)/decrease in real
estate and deposits, net (15,353) 14,572 94,720 95,818
(Increase)/decrease in
income tax receivable (87) 2,391 107,573 80,543
Other operating activities (565) (40,351) (26,591) (120,667)
--------- --------- --------- ---------
Net cash (used in)/provided
by operating activities (20,820) 4,396 157,434 106,152
--------- --------- --------- ---------
Cash used in investing
activities (19,169) (644) (20,669) (16,479)
--------- --------- --------- ---------
Net repayments under Credit
Facility -- -- -- (82,000)
Proceeds from issuance of
common stock, net -- -- -- 82,775
Other financing activities 1,630 122 4,263 902
--------- --------- --------- ---------
Net cash provided by
financing activities 1,630 122 4,263 1,677
--------- --------- --------- ---------
Net (decrease)/increase in
cash (38,359) 3,874 141,028 91,350
Beginning cash and cash
equivalents 385,310 115,153 205,923 27,677
--------- --------- --------- ---------
Ending cash and cash
equivalents $ 346,951 $ 119,027 $ 346,951 $ 119,027
========= ========= ========= =========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
For the Three Months Ended
September 30,
2009 2008
------------------ ------------------
Homes Value Homes Value
----- ----- ----- -----
Homes Closed:
California 62 $ 20,319 131 $ 52,530
Nevada 33 6,635 71 19,057
-------- -------- -------- --------
West Region 95 26,954 202 71,587
Arizona 213 38,617 297 75,226
Texas 611 142,697 783 186,023
Colorado 36 10,932 37 13,342
-------- -------- -------- --------
Central Region 860 192,246 1,117 274,591
Florida 60 12,616 104 26,729
-------- -------- -------- --------
East Region 60 12,616 104 26,729
-------- -------- -------- --------
Total 1,015 $231,816 1,423 $372,907
======== ======== ======== ========
Homes Ordered:
California 130 $ 40,483 85 $ 32,768
Nevada 33 6,637 41 11,780
-------- -------- -------- --------
West Region 163 47,120 126 44,548
Arizona 212 40,490 220 49,314
Texas 597 134,948 609 145,463
Colorado 35 10,342 25 7,943
-------- -------- -------- --------
Central Region 844 185,780 854 202,720
Florida 91 21,447 33 7,113
-------- -------- -------- --------
East Region 91 21,447 33 7,113
-------- -------- -------- --------
Total 1,098 $254,347 1,013 $254,381
======== ======== ======== ========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
For the Nine months Ended September 30,
2009 2008
------------------- -------------------
Homes Value Homes Value
----- ----- ----- -----
Homes Closed:
California 218 $ 76,042 456 $ 187,357
Nevada 112 23,724 205 55,174
------- ---------- ------- ----------
West Region 330 99,766 661 242,531
Arizona 563 111,063 772 205,094
Texas 1,679 403,535 2,311 560,634
Colorado 105 33,002 101 35,323
------- ---------- ------- ----------
Central Region 2,347 547,600 3,184 801,051
Florida 160 35,842 294 74,904
------- ---------- ------- ----------
East Region 160 35,842 294 74,904
------- ---------- ------- ----------
Total 2,837 $ 683,208 4,139 $1,118,486
======= ========== ======= ==========
Homes Ordered:
California 287 $ 93,688 451 $ 177,913
Nevada 99 19,549 193 50,833
------- ---------- ------- ----------
West Region 386 113,237 644 228,746
Arizona 621 119,295 765 170,216
Texas 1,899 431,725 2,410 581,280
Colorado 107 32,910 102 35,493
------- ---------- ------- ----------
Central Region 2,627 583,930 3,277 786,989
Florida 219 52,796 199 45,659
------- ---------- ------- ----------
East Region 219 52,796 199 45,659
------- ---------- ------- ----------
Total 3,232 $ 749,963 4,120 $1,061,394
======= ========== ======= ==========
Order Backlog:
California 156 $ 51,556 159 $ 72,088
Nevada 12 2,278 52 14,319
------- ---------- ------- ----------
West Region 168 53,834 211 86,407
Arizona 248 50,443 383 85,680
Texas 1,107 258,345 1,571 404,997
Colorado 46 13,173 54 18,307
------- ---------- ------- ----------
Central Region 1,401 321,961 2,008 508,984
Florida 107 28,991 50 17,502
------- ---------- ------- ----------
East Region 107 28,991 50 17,502
------- ---------- ------- ----------
Total 1,676 $ 404,786 2,269 $ 612,893
======= ========== ======= ==========
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008
------------------ ------------------
Beg. End Beg. End
---- --- ---- ---
Active Communities:
California 12 9 17 15
Nevada 12 6 12 12
-------- -------- -------- --------
West Region 24 15 29 27
Arizona 31 28 31 30
Texas 108 102 136 132
Colorado 4 3 5 5
-------- -------- -------- --------
Central Region 143 133 172 167
Florida 11 14 12 13
-------- -------- -------- --------
East Region 11 14 12 13
-------- -------- -------- --------
Total 178 162 213 207
======== ======== ======== ========
Nine Months Ended Nine Months Ended
September 30, 2009 September 30, 2008
------------------ ------------------
Beg. End Beg. End
---- --- ---- ---
Active Communities:
California 12 9 27 15
Nevada 12 6 11 12
-------- -------- -------- --------
West Region 24 15 38 27
Arizona 31 28 36 30
Texas 109 102 127 132
Colorado 3 3 6 5
-------- -------- -------- --------
Central Region 143 133 169 167
Florida 11 14 13 13
-------- -------- -------- --------
East Region 11 14 13 13
-------- -------- -------- --------
Total 178 162 220 207
======== ======== ======== ========
About Meritage Homes Corporation
Meritage Homes Corporation is a leading designer and builder of single-family detached homes in the historically high-growth southern and western United States. We offer a variety of homes that are designed to appeal to a wide range of homebuyers, including first-time, move-up, luxury and active adult buyers, with base prices ranging from under $100,000 to a million dollars. As of September 30, 2009, we had 162 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 over 60,000 homes since the Company was founded, including more than 5,600 homes delivered in 2008. Meritage ranks as the 9th largest homebuilder in the U.S. based on homes closed.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include those regarding Meritage's expectations of generating positive cash flow from operations for the full year 2009; returning to profitability in 2010 and being profitable for the entire year; improving the pace of sales per community as new communities are opened, and as markets stabilize and improve; and continuing to acquire additional communities through the balance of 2009. 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 October 26, 2009