Meritage Homes Reports Results for the Third Quarter of 2013

Diluted EPS of $0.99 on 44% Increase in Home Closing Revenue

SCOTTSDALE, AZ -- (Marketwired) -- 10/23/13 -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced its third quarter results for the period ended September 30, 2013.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30 Nine Months Ended September 30
2013 2012 %Chg 2013 2012 %Chg
Homes closed (units) 1,418 1,197 18 % 3,791 2,998 26 %
Home closing revenue $ 483,147 $ 334,880 44 % $ 1,249,897 $ 820,242 52 %
Average sales price - closings $ 341 $ 280 22 % $ 330 $ 274 20 %
Home orders (units) 1,300 1,204 8 % 4,484 3,701 21 %
Home order value $ 473,924 $ 366,752 29 % $ 1,567,719 $ 1,060,910 48 %
Average sales price - orders $ 365 $ 305 20 % $ 350 $ 287 22 %
Ending backlog (units) 2,190 1,618 35 %
Ending backlog value $ 805,580 $ 489,522 65 %
Average sales price - backlog $ 368 $ 303 22 %
Net earnings $ 38,191 $ 6,784 463 % $ 78,375 $ 10,035 681 %
Diluted EPS $ 0.99 $ 0.19 421 % $ 2.05 $ 0.30 583 %

MANAGEMENT COMMENTS

"We are pleased with the strong operating results we achieved again this quarter, including our highest level of home closings and closing revenue in the last five years, and our highest gross margin in more than seven years, with a 44% increase in home closing revenue and a 420 basis point improvement in home closing gross margin," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "We are focused on delivering earnings growth by leveraging our operating structure in addition to growing our top line. This was our seventh consecutive quarter in which we increased net earnings year-over-year.

"The pace of sales per community slowed somewhat in the third quarter, reflecting the effects of home price inflation over the past year and the increase in interest rates we experienced just before and during the seasonally slower summer months, resulting in an 8% year-over-year increase in orders," explained Mr. Hilton. "Since the underlying demand drivers remain solidly positive amidst a shortage of homes on the market, we are confident that the housing market can continue to grow for the foreseeable future, though maybe not at the same rate we enjoyed last year and earlier this year.

"We strategically expanded into another new market this quarter with our acquisition of Phillips Builders in the Nashville market, which we plan to grow significantly over the next several years. We acquired 500 lots with that acquisition and also contracted for an additional 3,700 new lots during the quarter to add new communities and support sales growth," continued Mr. Hilton. "Evidencing our confidence in the long-term demand for housing, we are continuing to evaluate additional opportunities to enter new markets while we expand within our existing markets."

STRONG EARNINGS GROWTH

  • Net earnings increased $31.4 million or 463% over 2012 to $38.2 million ($0.99 per diluted share) in the third quarter of 2013, as compared to net earnings of $6.8 million ($0.19 per diluted share) in the third quarter of 2012. The increase in 2013 earnings was primarily due to higher home closing revenue and gross margins, coupled with overhead expense leverage. Prior year results also included an $8.7 million charge related to litigation surrounding a Nevada joint venture. The 2013 results included a tax provision of $18.6 million, compared to $0.2 million in the prior year.
  • Home closing revenue increased 44% due to the combination of an 18% increase in home closings and a 22% increase in average sales price over the prior year period. All regions grew home closings, revenue and average prices over the prior year. This was the eighth consecutive quarter of year-over-year growth in home closing revenue, and the highest level of home closings by Meritage since the fourth quarter of 2008.
  • Home closing gross margin increased to 22.8% in the third quarter of 2013, a year-over-year improvement of 420 basis points compared to 18.6% in the third quarter of 2012, and a sequential improvement of 130 basis points compared to a 21.5% home closing gross margin in the second quarter of 2013. It is the highest gross margin Meritage has produced since the second quarter of 2006. The significant margin growth reflects both home price appreciation and effective management of construction costs.
  • Commissions and other sales costs in the third quarter improved 80 basis points on higher closing volumes, decreasing to 6.9% of home closing revenue in 2013 from 7.7% in 2012.
  • General and administrative expenses declined to 5.0% of total third quarter closing revenue in 2013, from 5.6% in 2012, due to operating leverage. The majority of the $5.2 million increase over last year was the result of additional hiring and compensation expense.
  • Interest expense decreased to $3.5 million or 0.7% of closing revenue in the third quarter of 2013, compared to $5.0 million or 1.5% of closing revenue in the third quarter of 2012, as a greater portion of interest incurred was capitalized.
  • Pre-tax earnings margin increased 950 basis points to 11.5% in the third quarter of 2013, compared to 2.0% in the prior year.

CONTINUED ORDER GROWTH

  • Total order value grew 29% over the third quarter of 2012 due to the combination of an 8% increase in orders and a 20% increase in the average selling price of homes ordered. Total order value and backlog grew in each of Meritage's active markets except California, where the pace of orders moderated as prices were increased. The average sales price on orders of approximately $365,000 was the highest for Meritage in more than eight years, reflecting the combination of a greater portion of orders in higher-priced communities and states, in addition to home price appreciation.
  • Meritage added 14 net new communities during the third quarter of 2013, including three from the Nashville acquisition, and ended the quarter with 179 total active communities, a 17% increase year over year from 153 at September 30, 2012.
  • Average orders per active community during the third quarter was 7.6 in 2013 compared to 7.9 in 2012. The average reflects an increase of 21% in Texas over the third quarter of 2012, while California, Florida and Colorado sold the most homes per average community, at 10.6, 9.1 and 8.0, respectively.
  • Order cancellation rates remained historically low at 14% for the third quarter of 2013 compared to 13% in the third quarter of 2012.
  • Ending backlog value increased 65% over the third quarter of 2012, combining a 22% increase in average price with 35% growth of orders in backlog. The Carolinas and Colorado grew backlog value by 177% and 158%, respectively, while Florida and Texas each grew backlog value by 76% over the prior year.

YEAR TO DATE RESULTS

  • Net earnings of $78.4 million for the first nine months of 2013 included a $3.8 million loss on early extinguishment of debt and a tax provision of $33.4 million, compared to net earnings of $10.0 million for the first nine months of 2012, which included a $5.8 million loss on early extinguishment of debt and a $4.8 million tax benefit, in addition to the $8.7 million charge related to the Nevada joint venture litigation.
  • Home closings and closing revenue for the first nine months of the year increased 26% and 52%, respectively, for 2013 over 2012, reflecting a 20% increase in the average sales price of closings.
  • Year-to-date home closing gross margin improved by 330 basis points to 21.5% for 2013, compared to 18.2% for 2012.
  • Total year-to-date selling, general and administrative expenses decreased 200 basis points to 12.3% of total closing revenue in 2013 compared to 14.3% in 2012, reflecting increased operating leverage.
  • Year-to-date net orders through September 30 increased 21% in 2013 over 2012, and in combination with a 22% increase in average sales price, drove a 48% increase in total order value year over year.

BALANCE SHEET STRENGTH

  • Cash and cash equivalents, restricted cash and securities at September 30, 2013 increased to a total of $311.3 million, compared to $295.5 million at December 31, 2012.
  • Meritage spent approximately $166.7 million on land acquisition and development in the third quarter of 2013, and contracted for approximately 3,700 new lots in addition to 500 lots added with the Phillips Builders acquisition.
  • Total lot supply at September 30, 2013 was approximately 25,000 lots, equating to approximately 5.0 years supply based on trailing twelve months' closings, compared to approximately 17,800 lots at September 30, 2012, the equivalent of 4.6 years supply. Approximately 71% of the September 30, 2013 lot supply was owned.
  • Of the 29% of lots controlled under option and purchase contracts as of September 30, 2013, approximately 1,350 lots were secured through land bank arrangements in 2013. The total finished lot purchase price of these lots owned by land bankers is approximately $127 million. Meritage has the option to purchase these lots over time, which reduces the Company's initial cash outlays for these lot positions.
  • Total real estate assets increased to $1.3 billion at September 30, 2013, compared to $1.0 billion a year ago and $1.1 billion at the beginning of 2013.
  • Stockholders' equity increased by 14% or $98.1 million year-to-date in 2013, ending at $792.3 million as of September 30, 2013, compared to $694.2 million at December 31, 2012.
  • Net debt-to-capital ratio remained at 38.1% as of September 30, 2013, consistent with December 31, 2012, and the Company had no borrowings against its $135 million revolving credit facility.

SUMMARY
"The recovery in the housing market that began last year drove strong sales growth and price appreciation through the middle of this year, until buyers reacted to successive price increases and higher interest rates by pausing their purchasing decisions, thereby moderating the demand for new homes," explained Steve Hilton. "In some ways, the slower pace of sales seen in the third quarter is healthy for the market, allowing subcontractors and suppliers to catch up before the next spring selling season, and taking some upward pressure off costs.

"Meritage is well positioned with highly desirable locations and distinctive, energy-efficient homes in many of the best housing markets in the country, which have produced some of the best sales and earnings strength during the recovery to date," he continued. "We now control all of the lots we need to satisfy our projected closings through 2014 and approximately 85% of our projected 2015 closings. Our growth strategy and operating leverage should enable us to continue to drive earnings growth throughout this next housing cycle.

"Based on our reported results year to date and assuming continued strength in our markets, we have revised our models and are projecting home closing revenue of approximately $1.8 billion for 2013, with projected earnings per diluted share in the range of $2.95-$3.05 for the year."

CONFERENCE CALL
Management will host a conference call today to discuss the Company's third quarter results at 10:30 a.m. Eastern Time (7:30 a.m. Pacific 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/10034963.

Telephone participants who are unable to pre-register may dial in to 888-317-6016 on the day of the call. International dial-in number is 1-412-317-6016.

A replay of the call will be available for fifteen days, beginning at 12:30 p.m. ET on October 23, 2013 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10030804. For more information, visit meritagehomes.com.

Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
Three Months Ended September 30 Nine Months Ended September 30
2013 2012 2013 2012
Homebuilding:
Home closing revenue $ 483,147 $ 334,880 $ 1,249,897 $ 820,242
Land closing revenue 8,933 7,763 28,568 8,846
Total closing revenue 492,080 342,643 1,278,465 829,088
Cost of home closings (372,772 ) (272,726 ) (981,557 ) (671,029 )
Cost of land closings (6,126 ) (7,493 ) (24,139 ) (8,833 )
Total cost of closings (378,898 ) (280,219 ) (1,005,696 ) (679,862 )
Home closing gross profit 110,375 62,154 268,340 149,213
Land closing gross profit 2,807 270 4,429 13
Total closing gross profit 113,182 62,424 272,769 149,226
Financial Services:
Revenue 1,684 253 3,960 253
Expense (901 ) (317 ) (2,229 ) (484 )
Earnings from financial services unconsolidated entities and other, net 3,511 3,049 9,784 6,974
Financial services profit 4,294 2,985 11,515 6,743
Commissions and other sales costs (33,467 ) (25,855 ) (90,526 ) (67,950 )
General and administrative expenses (24,412 ) (19,209 ) (66,587 ) (50,446 )
Earnings/(loss) from other unconsolidated entities, net 46 (74 ) (229 ) (348 )
Interest expense (3,462 ) (5,009 ) (13,113 ) (18,718 )
Other income/(expense), net 605 (8,276 ) 1,760 (7,481 )
Loss on early extinguishment of debt - - (3,796 ) (5,772 )
Earnings before income taxes 56,786 6,986 111,793 5,254
(Provision for)/benefit from income taxes (18,595 ) (202 ) (33,418 ) 4,781
Net earnings $ 38,191 $ 6,784 $ 78,375 $ 10,035
Earnings per share:
Basic
Earnings per share $ 1.05 $ 0.19 $ 2.17 $ 0.30
Weighted average shares outstanding 36,226 35,216 36,060 33,541
Diluted
Earnings per share $ 0.99 $ 0.19 $ 2.05 $ 0.30
Weighted average shares outstanding 38,865 35,761 38,771 34,010
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
September 30, 2013 December 31, 2012
Assets:
Cash and cash equivalents $ 177,584 $ 170,457
Investments and securities 92,846 86,074
Restricted cash 40,904 38,938
Other receivables 35,711 20,290
Real estate (1) 1,345,214 1,113,187
Real estate not owned 481 -
Deposits on real estate under option or contract 34,911 14,351
Investments in unconsolidated entities 10,662 12,085
Property and equipment, net 18,690 15,718
Deferred tax asset 80,390 77,974
Prepaid expenses and other assets 36,693 26,488
Total assets $ 1,874,086 $ 1,575,562
Liabilities:
Accounts payable $ 76,647 $ 49,801
Accrued liabilities 178,247 96,377
Home sale deposits 28,183 12,377
Liabilities related to real estate not owned 346 -
Senior, senior subordinated, convertible senior notes and other borrowings 798,337 722,797
Total liabilities 1,081,760 881,352
Stockholders' Equity:
Preferred stock, par value $0.01 - -
Common stock, par value $0.01 362 356
Additional paid-in capital 409,984 390,249
Retained earnings 381,980 303,605
Total stockholders' equity 792,326 694,210
Total liabilities and stockholders' equity $ 1,874,086 $ 1,575,562
(1)Real estate -Allocated costs:
Homes under contract under construction $ 316,508 $ 192,948
Unsold homes, completed and under construction 123,602 107,466
Model homes 78,017 62,411
Finished home sites and home sites under development 721,492 634,106
Land held for development 53,053 56,118
Land held for sale 19,630 21,650
Communities in mothball status 32,912 38,488
Total real estate $ 1,345,214 $ 1,113,187
Supplemental Information and Non-GAAP Financial Disclosures (In thousands - unaudited):
Three Months Ended September 30 Nine Months Ended September 30
2013 2012 2013 2012
Depreciation and amortization $ 2,511 $ 2,299 $ 7,169 $ 5,913
Summary of Capitalized Interest:
Capitalized interest, beginning of period $ 26,294 $ 17,836 $ 21,600 $ 14,810
Interest incurred 12,508 11,654 37,876 33,819
Interest expensed (3,462 ) (5,009 ) (13,113 ) (18,718 )
Interest amortized to cost of home, land closings and impairments (6,342 ) (4,296 ) (17,365 ) (9,726 )
Capitalized interest, end of period $ 28,998 $ 20,185 $ 28,998 $ 20,185
September 30, 2013 December 31, 2012
Notes payable and other borrowings $ 798,337 $ 722,797
Less: cash and cash equivalents, restricted cash, and investments and securities (311,334 ) (295,469 )
Net debt 487,003 427,328
Stockholders' equity 792,326 694,210
Total capital $ 1,279,329 $ 1,121,538
Net debt-to-capital 38.1 % 38.1 %
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) (unaudited)
Nine Months Ended September 30
2013 2012
Cash flows from operating activities:
Net earnings $ 78,375 $ 10,035
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization 7,169 5,913
Stock-based compensation 7,040 6,095
Loss on early extinguishment of debt 3,796 5,772
Excess income tax benefit from stock-based awards (1,733 ) -
Equity in earnings from unconsolidated entities (9,555 ) (6,626 )
Deferred tax asset valuation benefit (4,614 ) (7,709 )
Distribution of earnings from unconsolidated entities 10,796 6,118
Other 3,071 1,976
Changes in assets and liabilities:
Increase in real estate (221,668 ) (190,509 )
(Increase)/decrease in deposits on real estate under option or contract (20,425 ) 2,192
Increase in receivables and prepaid expenses and other assets (14,224 ) (1,882 )
Increase in accounts payable and accrued liabilities 106,862 31,204
Increase in home sale deposits 15,584 5,169
Net cash used in operating activities (39,526 ) (132,252 )
Cash flows from investing activities:
Purchases of property and equipment (9,717 ) (7,139 )
Maturities of investments and securities 132,900 190,701
Payments to purchase investments and securities (139,672 ) (109,798 )
Other (20,334 ) (3,020 )
Net cash (used in)/provided by investing activities (36,823 ) 70,744
Cash flows from financing activities:
Repayments of senior and senior subordinated notes (102,822 ) (315,080 )
Proceeds from issuance of senior notes 175,000 426,500
Proceeds from sale of common stock, net - 87,125
Other 11,298 (5,600 )
Net cash provided by financing activities 83,476 192,945
Net increase in cash and cash equivalents 7,127 131,437
Beginning cash and cash equivalents 170,457 173,612
Ending cash and cash equivalents (2) $ 177,584 $ 305,049

(2) Ending cash and cash equivalents as of September 30, 2013 and September 30, 2012 excludes investments and securities and restricted cash totaling $134 million and $82 million, respectively.

Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Three Months Ended
September 30, 2013 September 30, 2012
Homes Value Homes Value
Homes Closed:
Arizona 301 $ 96,562 243 $ 59,519
California 259 113,954 244 88,748
Colorado 104 43,033 83 27,639
Nevada 1 245 22 4,113
West Region 665 253,794 592 180,019
Texas 509 136,249 434 104,041
Central Region 509 136,249 434 104,041
Carolinas 62 24,361 40 14,459
Florida 176 66,464 131 36,361
Tennessee 6 2,279 - -
East Region 244 93,104 171 50,820
Total 1,418 $ 483,147 1,197 $ 334,880
Homes Ordered:
Arizona 234 $ 80,748 229 $ 70,315
California 165 84,741 248 94,974
Colorado 96 44,178 88 28,925
Nevada - - 22 4,384
West Region 495 209,667 587 198,598
Texas 545 157,868 425 106,116
Central Region 545 157,868 425 106,116
Carolinas 72 28,971 36 12,709
Florida 177 74,312 156 49,329
Tennessee 11 3,106 - -
East Region 260 106,389 192 62,038
Total 1,300 $ 473,924 1,204 $ 366,752
Nine Months Ended
September 30, 2013 September 30, 2012
Homes Value Homes Value
Homes Closed:
Arizona 744 $ 233,447 593 $ 153,190
California 784 329,414 489 172,575
Colorado 298 112,238 227 75,816
Nevada 38 8,900 39 7,402
West Region 1,864 683,999 1,348 408,983
Texas 1,312 343,924 1,190 277,436
Central Region 1,312 343,924 1,190 277,436
Carolinas 153 57,849 84 30,513
Florida 456 161,846 376 103,310
Tennessee 6 2,279 - -
East Region 615 221,974 460 133,823
Total 3,791 $ 1,249,897 2,998 $ 820,242
Homes Ordered:
Arizona 886 $ 284,139 738 $ 200,258
California 730 331,933 714 258,053
Colorado 358 154,251 266 88,012
Nevada 24 5,795 61 11,455
West Region 1,998 776,118 1,779 557,778
Texas 1,689 472,507 1,370 332,007
Central Region 1,689 472,507 1,370 332,007
Carolinas 218 87,461 109 38,841
Florida 568 228,527 443 132,284
Tennessee 11 3,106 - -
East Region 797 319,094 552 171,125
Total 4,484 $ 1,567,719 3,701 $ 1,060,910
Order Backlog:
Arizona 391 $ 131,508 303 $ 92,300
California 261 127,107 307 113,126
Colorado 202 92,102 109 35,689
Nevada - - 27 5,129
West Region 854 350,717 746 246,244
Texas 877 260,900 576 148,065
Central Region 877 260,900 576 148,065
Carolinas 114 46,953 49 16,944
Florida 315 137,691 247 78,269
Tennessee 30 9,319 - -
East Region 459 193,963 296 95,213
Total 2,190 $ 805,580 1,618 $ 489,522
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended
September 30, 2013 September 30, 2012
Beg. End Beg. End
Active Communities:
Arizona 36 39 32 34
California 13 18 20 19
Colorado 12 12 8 8
Nevada - - 2 2
West Region 61 69 62 63
Texas 71 73 68 68
Central Region 71 73 68 68
Carolinas 13 15 5 7
Florida 20 19 16 15
Tennessee - 3 - -
East Region 33 37 21 22
Total 165 179 151 153
Nine Months Ended
September 30, 2013 September 30, 2012
Beg. End Beg. End
Active Communities:
Arizona 38 39 37 34
California 17 18 20 19
Colorado 12 12 10 8
Nevada 1 - 2 2
West Region 68 69 69 63
Texas 65 73 67 68
Central Region 65 73 67 68
Carolinas 7 15 3 7
Florida 18 19 18 15
Tennessee - 3 - -
East Region 25 37 21 22
Total 158 179 157 153

About Meritage Homes Corporation
Meritage Homes is the ninth-largest public homebuilder in the United States, based on 4,238 homes closed in 2012. 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. As of September 30, 2013, the company had 179 actively selling communities in markets including Sacramento, San Francisco's East Bay, the Central Valley and Southern California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale and Tucson, Arizona; Denver, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina and Nashville, Tennessee.

Meritage has designed and built more than 75,000 homes in its 27-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 in 2013, Meritage received the U.S. Environmental Protection Agency's ENERGY STAR Partner of the Year for Sustained Excellence Award, for its innovation and industry leadership in energy efficient homebuilding. Meritage was the first national homebuilder to be 100 percent ENERGY STARĀ® qualified in every home it builds, and far exceeds ENERGY STAR standards today.

For more information, visit meritagehomes.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's expectations for continued growth of the housing market, plans to enter new markets and expand in its existing markets, and management's projected home closings, home closing revenue and earnings per diluted share for 2013.

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. The risks and uncertainties include but are not limited to the following: weakness in the homebuilding market resulting from an unexpected setback in the current economic recovery; the availability of finished lots and undeveloped land; interest rates and changes in the availability and pricing of residential mortgages; the availability and cost of materials and labor; adverse changes in tax laws that benefit our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates and home prices in our markets; inflation in the cost of materials used to construct homes; the adverse effect of slower order absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; our potential exposure to natural disasters; competition; the adverse impacts of cancellations resulting from small deposits relating to our sales contracts; construction defect and home warranty claims; our success in prevailing on contested tax positions; our ability to preserve our deferred tax assets and use them within the statutory time limits; delays and risks associated with land development; our ability to obtain performance bonds in connection with our development work; the liquidity of our joint ventures and the ability of our joint venture partners to meet their obligations to us and the joint venture; the loss of key personnel; changes in or our failure to comply with laws and regulations; our lack of 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 and senior subordinated notes and our ability to raise additional capital when and if needed; our credit ratings; successful integration of future acquisitions; government regulations and legislative or other initiatives that seek to restrain growth or new housing construction or similar measures; 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, 2012 under the caption "Risk Factors," which can be found on our website.

Contacts:
Brent Anderson
VP Investor Relations
(972) 580-6360 (office)
Brent.Anderson@meritagehomes.com

Source: Meritage Homes Corp.