Meritage Homes Reports Results for the Third Quarter of 2014

Orders up 15%, backlog value grows 30% with 16% increase in average active communities

Home closing revenue grew 13% on higher home closings and average prices

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced third quarter results for the period ended September 30, 2014.

 
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
    Three Months Ended September 30,     Nine Months Ended September 30,
2014     2013     %Chg 2014     2013     %Chg
Homes closed (units) 1,522 1,418 7 % 3,999 3,791 5 %
Home closing revenue $ 545,524 $ 483,147 13 % $ 1,454,103 $ 1,249,897 16 %
Average sales price - closings $ 358 $ 341 5 % $ 364 $ 330 10 %
Home orders (units) 1,500 1,300 15 % 4,672 4,484 4 %
Home order value $ 573,643 $ 473,924 21 % $ 1,747,118 $ 1,567,719 11 %
Average sales price - orders $ 382 $ 365 5 % $ 374 $ 350 7 %
Ending backlog (units) 2,705 2,190 24 %
Ending backlog value $ 1,043,741 $ 805,580 30 %
Average sales price - backlog $ 386 $ 368 5 %
Net earnings $ 32,577 $ 38,191 (15 )% $ 93,033 $ 78,375 19 %
Diluted EPS $ 0.79 $ 0.99 (20 )% $ 2.27 $ 2.05 11 %
 

MANAGEMENT COMMENTS

“We were pleased to achieve year-over-year growth in closing volumes, orders and backlog, with even greater expansion in our home closing revenue, order value and backlog value as a result of higher average selling prices compared to last year,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Home closing revenue growth of 31% and 53% in our Central and East regions, respectively, more than offset the year-over-year declines in Arizona and California, where sales have slowed from 2013 and home prices are no longer outpacing the increased cost of land, reducing our gross margins in those states.

"The combined effects of revenue and margin declines in Arizona and California pulled our overall home closing gross margin and net earnings down in the third quarter of 2014 compared to last year's third quarter, when we reported the highest quarterly earnings per share we had generated in the last five years,” explained Mr. Hilton. “Our home closing margin was also reduced by the short-term effects of purchase accounting associated with home closings from our acquisition of Legendary Communities in August. However, our home closing gross margin of 21.6% for the first three quarters of 2014 was in line with 21.5% for the first three quarters of 2013.

“More importantly for the longer term, our divisions did an excellent job of getting new communities opened, exceeding our projected target of 190 communities within existing markets before adding those from Legendary, which brought our total actively selling communities to 225 as of September 30, 2014. We are enthusiastic about the opportunities for continued growth represented by those additional communities.

“As the U.S. housing market continues to improve overall, we are confident in our ability to leverage our strengths and the Meritage Homes brand to further develop our existing markets and penetrate additional markets where we see promising opportunities,” Mr. Hilton continued. “We remain committed to our plan to generate strong revenue and earnings growth in 2015 and beyond. We currently project fourth quarter home closing revenue of $700-725 million and diluted earnings per share of $1.00-1.05.”

THIRD QUARTER RESULTS

  • Home closing revenue increased 13% over the prior year, combining a 7% increase in home closings and a 5% increase in the average price of homes closed during the quarter. Respective increases of 31% and 53% in home closing revenue from the Central and East regions more than offset an 11% decline from the West region, which resulted from decreases of 15% and 19% in California and Arizona, respectively, partially offset by a 16% increase in Colorado.
  • Home closing gross profit of $111.2 million for the third quarter of 2014 was essentially flat compared to the prior year’s $110.4 million due to lower margins on higher home closing revenue. Home closing gross margin of 20.4% for the third quarter of 2014 decreased by 240 basis points (bps) from 22.8% in the third quarter of 2013. Gross margin was adversely impacted by higher lot costs, primarily in the West, where land prices have risen most significantly; softness in Arizona markets that led to price reductions; a $1.0 million impairment (20 bps) on two vintage communities in Tucson; and lower margins on Legendary Communities closings (40 bps), due to a stepped-up basis on homes that were completed or under construction at the time of acquisition, which management expects will dissipate as those homes acquired from Legendary are closed over the next couple of quarters.
  • Land closing gross profit declined by $3.3 million compared to the third quarter of 2013. The $0.5 million loss on land closings in the third quarter of 2014 resulted from the sale of the company's last remaining parcel of land in Nevada, where operations were discontinued in 2012.
  • Commissions and other sales costs increased to 7.4% of home closing revenue in 2014, compared to 6.9% in the same period of 2013, partially due to costs associated with the opening of 36 new communities during the quarter.
  • General and administrative expenses for the third quarter increased slightly to 5.2% of total closing revenue in 2014 compared to 5.0% in the third quarter of 2013, and included expenses associated with the acquisition of Legendary Communities and personnel hired to support new divisions.
  • Interest expense declined $3.0 million year over year to less than 0.1% of third quarter 2014 total closing revenue, compared to 0.7% of third quarter closing revenue in 2013, as a greater percentage of total interest incurred was capitalized to lots and homes under development.
  • Pre-tax margin was 8.4% in the third quarter of 2014 compared to 11.5% in 2013, primarily due to lower home closing gross margin in 2014.
  • The effective tax rate of 31% in the third quarter of 2014, compared to 33% in the third quarter of 2013, was due to additional energy tax credits captured in the third quarter of 2014 related to homes closed during 2012 and 2013.
  • Net earnings of $32.6 million or $0.79 per diluted share decreased by $5.6 million for the third quarter, from $38.2 million or $0.99 per diluted share in the third quarter of 2013, primarily due to lower home closing gross margin, lower land closing gross profit and higher selling, general and administrative costs.
  • Total order value grew 21% to $573.6 million in the third quarter of 2014 from $473.9 million in 2013, reflecting a 15% increase in homes ordered and a 5% increase in the average selling price. The order value increase came primarily from Colorado, Texas and the expanded East Region, including the newly acquired Legendary Communities, with Arizona being the only negative comparison to the prior year.
  • Ending community count at September 30, 2014 expanded to 225 active communities from 175 at the beginning of the third quarter, a year-over-year increase of 26% compared to 179 at September 30, 2013. Legendary accounted for 32 communities in addition to 193 within Meritage’s existing markets.
  • Orders per average active community during the quarter were consistent with the prior year at 7.5 in 2014 and 7.6 in 2013, led by Colorado, Florida and Tennessee selling at a faster pace than the company average.
  • Ending backlog value at September 30 was 30% higher in 2014 than 2013, with 24% more units in backlog and average prices up 5%.

YEAR TO DATE RESULTS

  • Net earnings of $93.0 million for the first three quarters of 2014 increased 19% compared to net earnings of $78.4 million for the first three quarters of 2013, which included a $3.8 million loss on early extinguishment of debt.
  • Home closings and closing revenue for the first nine months of the year increased 5% and 16%, respectively, for 2014 over 2013, with a 10% increase in average closing prices.
  • Year-to-date home closing gross margin of 21.6% for 2014 was in line with 2013's 21.5%.
  • Year-to-date land closing gross profit swung to a loss of $1.5 million on land sales in Nevada in 2014 from a profit of $4.4 million 2013.
  • Total commissions and other sales costs increased slightly as a percentage of home closing revenue, at 7.4% year to date in 2014 compared to 7.2% in 2013, while general and administrative expenses declined slightly to 5.1% of total closing revenue in the first nine months of 2014 compared to 5.2% in 2013.

BALANCE SHEET

  • The company ended the third quarter of 2014 with $94.0 million in cash and cash equivalents, investments and securities, compared to $363.8 million at December 31, 2013, reflecting the acquisition of Legendary Communities in August and additional investment in real estate inventory. The company also had $375.7 million available under its revolving credit facility at September 30, 2014, compared to $135.0 million at September 30, 2013.
  • Real estate assets increased to $1.86 billion at September 30, 2014, compared to $1.41 billion at December 31, 2013. The largest increases were in homes completed and under construction, and home sites either finished or under development, primarily from the acquisition of Legendary Communities.
  • Net debt-to-capital ratio at quarter-end was 43.4% compared to 39.1% at December 31, 2013 and 38.1% at September 30, 2013.
  • Total lot supply at the end of the quarter was approximately 29,500, including approximately 3,700 lots in South Carolina and Georgia from the Legendary Communities acquisition, compared to approximately 25,000 total lots a year earlier. Based on trailing twelve months closings, the September 30, 2014 balance represents a 5.4 years supply of lots.

CONFERENCE CALL

Management will host a conference call today to discuss the Company's results at 10:30 a.m. Eastern Time (7:30 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/10052495.

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.

A replay of the call will be available until November 15, 2014, beginning at 12:30 p.m. ET on October 29, 2014 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10052495. 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 September 30,     Nine Months Ended September 30,
  2014         2013     2014         2013  
Homebuilding:
Home closing revenue $ 545,524 $ 483,147 $ 1,454,103 $ 1,249,897
Land closing revenue   11,252     8,933     16,622     28,568  
Total closing revenue   556,776     492,080     1,470,725     1,278,465  
Cost of home closings (434,286 ) (372,772 ) (1,140,305 ) (981,557 )
Cost of land closings   (11,729 )   (6,126 )   (18,084 )   (24,139 )
Total cost of closings   (446,015 )   (378,898 )   (1,158,389 )   (1,005,696 )
Home closing gross profit 111,238 110,375 313,798 268,340
Land closing gross (loss)/profit   (477 )   2,807     (1,462 )   4,429  
Total closing gross profit   110,761     113,182     312,336     272,769  
Financial Services:
Revenue 2,749 1,684 7,099 3,960
Expense (1,238 ) (901 ) (3,444 ) (2,229 )
Earnings from financial services unconsolidated entities and other, net   2,783     3,511     7,281     9,784  
Financial services profit   4,294     4,294     10,936     11,515  
Commissions and other sales costs (40,211 ) (33,467 ) (107,250 ) (90,526 )
General and administrative expenses (29,218 ) (24,412 ) (75,460 ) (66,587 )
(Loss)/earnings from other unconsolidated entities, net (134 ) 46 (364 ) (229 )
Interest expense (460 ) (3,462 ) (4,569 ) (13,113 )
Other income, net 1,998 605 6,395 1,760
Loss on early extinguishment of debt               (3,796 )
Earnings before income taxes 47,030 56,786 142,024 111,793
Provision for income taxes   (14,453 )   (18,595 )   (48,991 )   (33,418 )
Net earnings $ 32,577   $ 38,191   $ 93,033   $ 78,375  
 
Earnings per share:
Basic
Earnings per share $ 0.83 $ 1.05 $ 2.39 $ 2.17
Weighted average shares outstanding 39,123 36,226 38,977 36,060
Diluted
Earnings per share $ 0.79 $ 0.99 $ 2.27 $ 2.05
Weighted average shares outstanding 41,656 38,865 41,564 38,771
 
 
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
    September 30, 2014     December 31, 2013
Assets:
Cash and cash equivalents $ 84,105 $ 274,136
Investments and securities 9,857 89,687
Other receivables 56,178 38,983
Real estate (1) 1,865,051 1,405,299
Real estate not owned 4,999 289
Deposits on real estate under option or contract 80,263 51,595
Investments in unconsolidated entities 9,900 11,638
Property and equipment, net 31,979 22,099
Deferred tax asset 65,538 70,404
Prepaids, other assets and goodwill   64,942   39,231
Total assets $ 2,272,812 $ 2,003,361
Liabilities:
Accounts payable $ 105,068 $ 68,018
Accrued liabilities 168,584 166,611
Home sale deposits 33,535 21,996
Liabilities related to real estate not owned 4,299 289
Senior, convertible senior notes and other borrowings   904,629   905,055
Total liabilities   1,216,115   1,161,969
Stockholders' Equity:
Preferred stock
Common stock 391 362
Additional paid-in capital 535,204 412,961
Retained earnings   521,102   428,069
Total stockholders’ equity   1,056,697   841,392
Total liabilities and stockholders’ equity $ 2,272,812 $ 2,003,361
(1) Real estate – Allocated costs:
Homes under contract under construction $ 440,033 $ 262,633
Unsold homes, completed and under construction 283,883 147,889
Model homes 100,027 81,541
Finished home sites and home sites under development   1,041,108   913,236
Total real estate $ 1,865,051 $ 1,405,299
 
 

Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):

 
    Three Months Ended September 30,     Nine Months Ended September 30,
  2014         2013     2014         2013  
Depreciation and amortization $ 2,972   $ 2,511   $ 8,154   $ 7,169  
 
Summary of Capitalized Interest:
Capitalized interest, beginning of period $ 44,355 $ 26,294 $ 32,992 $ 21,600
Interest incurred 14,695 12,508 43,333 37,876
Interest expensed (460 ) (3,462 ) (4,569 ) (13,113 )
Interest amortized to cost of home and land closings   (8,135 )   (6,342 )   (21,301 )   (17,365 )
Capitalized interest, end of period $ 50,455   $ 28,998   $ 50,455   $ 28,998  
 
September 30, 2014 December 31, 2013
Notes payable and other borrowings $ 904,629 $ 905,055
Stockholders' equity   1,056,697     841,392  
Total capital 1,961,326 1,746,447
Debt-to-capital 46.1 % 51.8 %
 
Notes payable and other borrowings $ 904,629 $ 905,055
Less: cash and cash equivalents and investments and securities   (93,962 )   (363,823 )
Net debt 810,667 541,232
Stockholders’ equity   1,056,697     841,392  
Total net capital $ 1,867,364 $ 1,382,624
Net debt-to-capital 43.4 % 39.1 %
 
 
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) (unaudited)
 
    Nine Months Ended September 30,
  2014         2013  
Cash flows from operating activities:
Net earnings $ 93,033 $ 78,375
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization 8,154 7,169
Stock-based compensation 9,035 7,040
Loss on early extinguishment of debt 3,796
Excess income tax benefit from stock-based awards (2,197 ) (1,733 )
Equity in earnings from unconsolidated entities (6,917 ) (9,555 )
Deferred tax asset valuation benefit (4,614 )
Distribution of earnings from unconsolidated entities 8,784 10,796
Other 8,361 3,071
Changes in assets and liabilities:
Increase in real estate (350,868 ) (221,668 )
Increase in deposits on real estate under option or contract (27,552 ) (20,425 )
Increase in receivables and prepaid expenses and other assets (19,502 ) (14,224 )
Increase in accounts payable and accrued liabilities 34,501 106,862
Increase in home sale deposits   9,015     15,584  
Net cash used in operating activities   (236,153 )   (39,526 )
Cash flows from investing activities:
Investments in unconsolidated entities (245 ) (107 )
Distributions of capital from unconsolidated entities 79
Purchases of property and equipment (16,367 ) (9,717 )
Proceeds from sales of property and equipment 173 39
Maturities of investments and securities 115,584 132,900
Payments to purchase investments and securities (35,697 ) (139,672 )
Cash paid for acquisitions (130,677 ) (18,379 )
Increase in restricted cash       (1,966 )
Net cash provided used in investing activities   (67,229 )   (36,823 )
Cash flows from financing activities:
Repayment of senior subordinated notes (102,822 )
Proceeds from issuance of senior notes 175,000
Proceeds from issuance of common stock, net 110,420
Debt issuance costs (1,403 )
Excess income tax benefit from stock-based awards 2,197 1,733
Non-controlling interest acquisition (257 )
Proceeds from stock option exercises   734     11,225  
Net cash provided by financing activities   113,351     83,476  
Net (decrease)/increase in cash and cash equivalents (190,031 ) 7,127
Beginning cash and cash equivalents   274,136     170,457  

Ending cash and cash equivalents (2)

$ 84,105   $ 177,584  

(2) Ending cash and cash equivalents excludes investments and securities totaling $9.9 million as of September 30, 2014 and excludes investments and securities and restricted cash of $133.8 million as of September 30, 2013.

 
 
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
    Three Months Ended
September 30, 2014     September 30, 2013
Homes     Value Homes     Value
Homes Closed:
Arizona 236 $ 77,793 301 $ 96,562
California 196 97,260 259 113,954
Colorado 114 49,792 104 43,033
Nevada   1   245
West Region 546   224,845 665   253,794
Texas 584   178,614 509   136,249
Central Region 584   178,614 509   136,249
Florida 164 61,713 176 66,464
Georgia 37 11,899
North Carolina 104 43,413 62 24,361
South Carolina 37 11,494
Tennessee 50     13,546   6     2,279
East Region 392   142,065 244   93,104
Total 1,522 $ 545,524 1,418 $ 483,147
Homes Ordered:
Arizona 198 $ 67,753 234 $ 80,748
California 157 87,610 165 84,741
Colorado 153 66,744 96 44,178
Nevada    
West Region 508   222,107 495   209,667
Texas 537   181,127 545   157,868
Central Region 537   181,127 545   157,868
Florida 207 86,145 177 74,312
Georgia 31 9,447
North Carolina 128 47,862 72 28,971
South Carolina 44 14,225
Tennessee 45     12,730   11     3,106
East Region 455   170,409 260   106,389
Total 1,500 $ 573,643 1,300 $ 473,924
 
 
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
    Nine Months Ended
September 30, 2014     September 30, 2013
Homes     Value Homes     Value
Homes Closed:
Arizona 699 $ 234,181 744 $ 233,447
California 546 272,254 784 329,414
Colorado 318 142,006 298 112,238
Nevada   38   8,900
West Region 1,563   648,441 1,864   683,999
Texas 1,511   456,375 1,312   343,924
Central Region 1,511   456,375 1,312   343,924
Florida 482 189,542 456 161,846
Georgia 37 11,899
North Carolina 248 102,119 153 57,849
South Carolina 37 11,494
Tennessee 121     34,233   6   2,279
East Region 925   349,287 615   221,974
Total 3,999 $ 1,454,103 3,791 $ 1,249,897
Homes Ordered:
Arizona 665 $ 220,772 886 $ 284,139
California 599 315,270 730 331,933
Colorado 417 185,993 358 154,251
Nevada   24   5,795
West Region 1,681   722,035 1,998   776,118
Texas 1,889   613,821 1,689   472,507
Central Region 1,889   613,821 1,689   472,507
Florida 560 218,651 568 228,527
Georgia 31 9,447
North Carolina 311 124,943 218 87,461
South Carolina 44 14,225
Tennessee 156     43,996   11   3,106
East Region 1,102   411,262 797   319,094
Total 4,672 $ 1,747,118 4,484 $ 1,567,719
 
Order Backlog:
Arizona 244 $ 83,830 391 $ 131,508
California 278 150,479 261 127,107
Colorado 301 136,371 202 92,102
Nevada    
West Region 823   370,680 854   350,717
Texas 1,170   403,101 877   260,900
Central Region 1,170   403,101 877   260,900
Florida 286 118,381 315 137,691
Georgia 65 21,322
North Carolina 196 77,138 114 46,953
South Carolina 90 31,915
Tennessee 75   21,204 30   9,319
East Region 712   269,960 459   193,963
Total 2,705 $ 1,043,741 2,190 $ 805,580
 
 
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
    Three Months Ended
September 30, 2014     September 30, 2013
Beg.   End Beg.   End
Active Communities:
Arizona 42 42 36 39
California 15 22 13 18
Colorado 13 16 12 12
Nevada        
West Region 70   80   61   69  
Texas 69   65   71   73  
Central Region 69   65   71   73  
Florida 18 26 20 19
Georgia 11
North Carolina 13 20 13 15
South Carolina 19
Tennessee 5   4     3  
East Region 36   80   33   37  
Total 175   225   165   179  
 
Nine Months Ended
September 30, 2014 September 30, 2013
Beg. End Beg. End
Active Communities:
Arizona 40 42 38 39
California 22 22 17 18
Colorado 14 16 12 12
Nevada     1    
West Region 76   80   68   69  
Texas 70   65   65   73  
Central Region 70   65   65   73  
Florida 20 26 18 19
Georgia 11
North Carolina 17 20 7 15
South Carolina 19
Tennessee 5   4     3  
East Region 42   80   25   37  
Total 188   225   158   179  
 

About Meritage Homes Corporation

Meritage Homes is the ninth-largest public homebuilder in the United States, based on homes closed in 2013. 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's East Bay, the Central Valley and Orange County, 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 80,000 homes in its 28-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 and 2014, for innovation and industry leadership in energy efficient homebuilding. Meritage was the first national homebuilder to be 100 percent ENERGY STAR qualified in every home it builds, and far exceeds ENERGY STAR standards today.

For more information, visit 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 expectations for continued recovery and growth in the U.S. housing market, Meritage’s growth opportunities within existing markets and potential new markets, the impacts of the Legendary acquisition on the Company’s future margins, plans for strong revenue and earnings growth in 2015 and beyond, and projected fourth quarter home closing revenue and diluted earnings per share.

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 our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates and home prices in our markets; weakness in the homebuilding market resulting from an unexpected setback in the current economic recovery; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slower order absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; 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; competition; the adverse impacts of cancellations resulting from relatively small deposits relating to our sales contracts; construction defect and home warranty claims; changes in tax laws; adverse legal rulings; our success in prevailing on contested tax positions; 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; 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 and our ability to take certain actions because of restrictions contained in the indentures for our senior notes and our ability to raise additional capital when and if needed; our credit ratings; successful integration of future acquisitions; 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; 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, 2013 and most recent 10-Q under the caption "Risk Factors," which can be found on our website.

Meritage Homes Corporation
Brent Anderson, 972-580-6360
VP Investor Relations
Brent.Anderson@meritagehomes.com

Source: Meritage Homes Corporation