Meritage Homes Reports Fourth Quarter and Full Year 2010 Results

Achieved Profitability Goal for the Year, With Earnings of $0.22 Per Share for 2010

FOURTH QUARTER 2010 SELECTED RESULTS:

 
  Reported net loss of $0.9M or $0.03 per diluted share including net tax benefit of $5M, compared to net income of $43M or $1.35 per diluted share in 2009, including a $90M net tax benefit
 
  Reduced adjusted pre-tax loss to $0.3M from $8M in the prior year
 
  Improved home closing gross margin before impairments by 320 basis points over 2009
 
  Increased net sales orders by 15% over the prior year; with sequential growth over the third quarter of 2010

FULL YEAR 2010 SELECTED RESULTS:

 
  Generated net income of $7M or $0.22 per diluted share, compared to a net loss of $66M or ($2.12) per diluted share in 2009
 
  Reduced net debt-to-capital ratio to 28% from 31% in the prior year
 
  Completed the year with $413M cash and short-term investments, and no short-term debt
 
  Issued $200M of 7.15% senior notes due in 2020 and retired $195M of notes due in 2014 and 2015

SCOTTSDALE, Ariz., Feb. 2, 2011 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2010.

Summary Operating Results (unaudited)
                                                                                                                                        (Dollars in thousands, except per share amounts)
                                                                                                               Three Months Ended 
    December 31,   Full year Ended 
    December 31,
                                                                                                                        2010         2009      %Chg         2010          2009     %Chg
                                                                                            Homes closed (units)          837        1,202      -30%        3,700         4,039      -8%
                                                                                            Home closing revenue     $214,616     $279,589      -23%     $940,406      $962,797      -2%
                                                                                            Sales orders (units)          713          621       15%        3,383         3,853     -12%
                                                                                               Sales order value     $174,021     $162,338        7%     $854,687      $912,301      -6%
                                                                                          Ending backlog (units)                                           778         1,095     -29%
                                                                                            Ending backlog value                                      $201,816      $287,535     -30%
                                                                        Net (loss)/income– incl. impairments        $(895)      $43,286     -102%       $7,150     $(66,456)     111%
     Adjusted pre-tax (loss)/income --
    excl. impairments and (loss)/gain
    on early extinguishment of debt       $(311)     $(8,262)       96%      $12,684     $(35,141)     136%
                                                                             Diluted EPS (including impairments)      $(0.03)        $1.35     -102%        $0.22       $(2.12)     110%
       * Adjusted pre-tax (loss)/income excludes impairments: See non-GAAP reconciliations of net (loss)/profit to 
    adjusted pre-tax (loss)/income on "Operating Results" statement.

FOURTH QUARTER OPERATING RESULTS

Meritage reported a net loss of $0.9 million or $0.03 per diluted share in the fourth quarter of 2010, compared to net income of $43 million or $1.35 per diluted share in the fourth quarter of 2009. The loss in 2010 included $5 million of impairments offset by a $5 million net tax benefit, while 2009 net income included $39 million of impairments, more than offset by a $90 million net tax benefit. Excluding those items, Meritage reduced its pre-tax loss to $311,000 from $8 million in the prior year.

"We achieved our number one goal for 2010, which was to be profitable for the year," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "Despite lower closing revenue in 2010, we returned to profitability primarily by improving our margins and holding down our overhead expenses."

Fourth quarter home closing revenue declined 23% year over year, with 30% fewer homes closed in 2010 than in 2009, partially offset by a 10% higher average closing price. Average prices increased to approximately $256,000 in the fourth quarter of 2010, from approximately $233,000 in the fourth quarter of 2009, reflecting a greater percentage of closings in move-up communities and in California, Colorado and Florida, higher-priced areas within Meritage's markets.

Meritage generated home closing gross profit of $34 million in the fourth quarter 2010 compared to $17 million in 2009, and home closing gross margins of 15.8% and 6.2%, respectively. Excluding the effects of impairments on gross margins, home closing gross margin climbed to 18.1% in the fourth quarter of 2010 from 14.9% in the fourth quarter of 2009. 

"We showed a 320 basis point improvement year over year in our home closing gross margin before impairments, as our newer communities continued to produce much higher margins on average than our older communities," said Mr. Hilton. "Market conditions continued to be challenging following the expiration of the home buyer tax credit in the second quarter of 2010, which put pressure on home prices and margins."

General and administrative expenses were 28% lower than the same quarter of 2009, largely due to certain expenses – particularly accruals for lease abandonments and discretionary awards – in 2009 that did not recur in the fourth quarter of 2010. Excluding those items, G&A was flat compared to 2009.

FULL YEAR OPERATING RESULTS

Meritage reported net income for the full year of 2010 of $7 million or $0.22 per diluted share, compared to a $66 million net loss in 2009 or ($2.12) per diluted share. Net income in 2010 was reduced by $7 million in pre-tax real estate-related impairment charges and a $3 million loss on extinguishment of debt, partially offset by a $5 million net tax benefit. By comparison, the net loss in 2009 included $129 million of impairments, partially offset by a $9 million gain on extinguishment of debt and a net tax benefit of $88 million. Excluding these items, Meritage produced pre-tax income of $13 million in 2010, compared to a pre-tax loss of $35 million in 2009.

SALES

Fourth quarter 2010 net orders for 713 homes were 15% greater than the 621 sales recorded in the prior year, despite 4% fewer average active communities year over year. Sales per community increased 21% in the fourth quarter, to 4.7 sales per community from 3.9 in 2009. The largest sales increases were in Texas, with 20% year-over-year growth, and Colorado, with 73% growth.

"We closed a record high 93% of beginning backlog during the fourth quarter, as half of our closings were homes not under contract at the beginning of the quarter," explained Mr. Hilton. "We ended the year with 29% fewer orders in backlog than we had a year ago, which will make it more challenging to be profitable in the first quarter of 2011. Even so, we expect to be more profitable in 2011 than we were in 2010."

BALANCE SHEET

Meritage generated $33 million positive cash flow from operations for the full year 2010, after using $236 million of cash to purchase approximately 5,800 lots during the year. The Company ended the year with $413 million in cash and cash equivalents, restricted cash and short-term investments, an increase of $21 million over the year-end 2009 total. Meritage's net debt to total capital ratio improved to 28% at December 31, 2010, from 31% at December 31, 2009.

Meritage put approximately 7,000 lots under contract in 2010, including 63 new communities. At December 31, 2010, Meritage controlled 15,224 lots representing approximately 4.1 years supply based on trailing twelve months closings, compared to a total of 12,906 lots or 3.2 years lot supply at December 31, 2009. Approximately 85% of total lots were owned at year-end 2010, compared to 77% in 2009, and 56% of year-end 2010 lots were purchased in the last two years.

SUMMARY

"In a year when market conditions remained very challenging for the homebuilding industry, it was gratifying to return to profitability in 2010, which we believe was the direct result of successfully executing our strategies," said Mr. Hilton. "We've dramatically reduced our lot and construction costs over the last few years, carefully controlled our overhead costs, repositioned our communities to address each of our markets opportunistically, redesigned our homes to be more efficient and appealing, and emerged as the leader in profitable, energy efficient home building."

"Meritage has received several awards for our leadership in advanced green building, including in 2010 the Alliance Home Quality and Performance Leadership award, and the Pubby Award for Community of the Year." Mr. Hilton continued, "Most recently, Meritage received the 2011 Energy Value Housing Award from the National Association of Homebuilders for our Lyon's Gate Community located in Gilbert, Arizona, and was also awarded the 2011 People's Choice Award, recognizing Meritage Homes for voluntarily incorporating energy efficiency in the design, construction & marketing of our homes.

"I believe Meritage is in the best shape it's ever been – stronger, leaner, faster and more nimble than ever before – and we're poised to take advantage of opportunities to grow and increase our profitability as the market recovers. I am confident in our strategies and our organization, and optimistic about our prospects for the coming year."

CONFERENCE CALL

Management will host a conference call to discuss these results on February 3, 2011 at 10:00 a.m. Eastern Time (8:00 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 12:00 p.m. ET, through March 2, 2011 on the website noted above, or by dialing 877-660-6853, and referencing account 356 and passcode 364919.

Meritage Homes Corporation and Subsidiaries
                                                                                                       Operating Results
                                                                                                             (Unaudited)
                                                                                   (In thousands, except per share data)
                                                                                                                   
                                                                       Three Months Ended              Full year Ended
                                                                               December 31,                December 31,
                                                                         2010          2009         2010           2009
                                              Operating results                                                    
                                             Home closing revenue     $214,616      $279,589     $940,406       $962,797
                                             Land closing revenue           28         6,231        1,250          7,516
                                           Total closing revenue      214,644       285,820      941,656        970,313
                                        Home closing gross profit       34,001        17,244      167,456         18,693
                                 Land closing gross (loss)/profit         (18)      (14,192)          240       (14,642)
                                      Total closing gross profit       33,983         3,052      167,696          4,051
                                Commissions and other sales costs     (18,346)      (23,058)     (76,798)       (78,683)
                            General and administrative expenses      (12,684)      (17,528)     (59,784)       (59,461)
                                                 Interest expense      (8,449)       (8,016)     (33,722)       (36,531)
                            (Loss)/gain on extinguishment of debt           --            --      (3,454)          9,390
                                         Other income/(loss), net           77       (1,447)        8,546          6,435
                                (Loss)/income before income taxes      (5,419)      (46,997)        2,484      (154,799)
                                         Benefit for income taxes        4,524        90,283        4,666         88,343
                                                Net (loss)/income       $(895)       $43,286       $7,150      $(66,456)
                                        Earnings/(loss) per share                                                   
                                                                                                                   
                                                           Basic:                                                   
                                        (Loss)/earnings per share      $(0.03)         $1.36        $0.22        $(2.12)
                              Weighted average shares outstanding       32,127        31,805       32,060         31,350
                                                                                                                   
                                                         Diluted:                                                   
                                        (Loss)/earnings per share      $(0.03)         $1.35        $0.22        ($2.12)
                              Weighted average shares outstanding       32,127        32,037       32,322         31,350
                                        Non-GAAP Reconciliations:                                                   
                                       Total closing gross profit      $33,983        $3,052     $167,696         $4,051
                             Add Real estate-related impairments:                                                   
                          Terminated lot options and land sales         1,047        19,460        1,047         85,679
                                                Impaired projects        3,878        19,273        5,404         40,537
                                  Adjusted closing gross profit       $38,908       $41,785     $174,147       $130,267
                                (Loss)/income before income taxes     $(5,419)     $(46,997)       $2,484     $(154,799)
     Add: Real estate-related and joint venture (JV) impairments:                                                   
                            Terminated lot options and land sales        1,047        19,460        1,047         85,679
                                                Impaired projects        3,878        19,273        5,404         40,537
                                        Joint venture impairments          183             2          295          2,832
                      Loss/(gain) on early extinguishment of debt           --            --        3,454        (9,390)
                       Adjusted (loss)/income before income taxes       $(311)      $(8,262)      $12,684      $(35,141)
 
                                                                                                                                        
                                                                                              Meritage Homes Corporation and Subsidiaries
                                                                                                    Condensed Consolidated Balance Sheets
                                                                                                                           (In thousands)
                                                                                                                              (unaudited)
                                                                                                                                      
                                                                                                 December 31, 2010     December 30, 2009
                                                                                      Assets:                                          
                                                                    Cash and cash equivalents              $103,953              $249,331
                                                                   Investments and securities               299,345               125,699
                                                                              Restricted cash                 9,344                16,348
                                                                        Income tax receivable                    --                92,509
                                                                            Other receivables                20,835                22,934
                                                                              Real estate (1)               738,928               675,037
                                                       Investments in unconsolidated entities                10,987                11,882
                                             Deposits on real estate under option or contract                10,359                 8,636
                                                                                 Other assets                31,187                40,291
                                                                                Total assets            $1,224,938            $1,242,667
                                                                                                                                      
                                                                                 Liabilities:                                          
     Accounts payable, accrued liabilities,
    home sale deposits and other 
    liabilities              $119,163              $152,233
                                                                                 Senior notes               479,905               479,134
                                                                    Senior subordinated notes               125,875               125,875
                                                                           Total liabilities               724,943               757,242
                                                                                Total equity               499,995               485,425
                                                                Total liabilities and equity            $1,224,938            $1,242,667
                                                                                                                                      
                                                         (1) Real estate – Allocated costs:                                          
                                                     Homes under contract under construction               $96,844              $114,769
                                               Unsold homes, completed and under construction                86,869                73,442
                                                                                  Model homes                36,966                37,601
                                           Finished homesites and homesites under development               454,718               407,592
                                                            Land held for development or sale                63,531                41,633
                                                                       Total allocated costs              $738,928              $675,037
 
                                                                                        Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):
                                                                                              Three Months Ended December 
    31,As of and for the Full Year Ended
    December 31,
                                                                                                           2010             2009                    2010                    2009
                                  Interest amortized to cost of sales 
    and interest expense           10,805           13,355                  45,733                  57,795
                                                                  Depreciation and amortization            1,835            2,296                   7,974                   8,843
                                                                                                                                                                            
                                                                           Net debt-to-capital:                                                                              
                                                             Notes payable and other borrowings                                                $605,780                $605,009
     Less: cash and cash equivalents,
    restricted cash, and 
    investments and securities                                               (412,642)               (391,378)
                                                                                       Net debt                                                 193,138                 213,631
                                                                           Stockholders' equity                                                 499,995                 485,425
                                                                                        Capital                                                $693,133                $699,056
                                                                            Net debt-to-capital                                                   27.9%                   30.6%
 
                                                                                                                                                                                                                   
                                                                                                                                                                         Meritage Homes Corporation and Subsidiaries
                                                                                                                                                                      Condensed Consolidated Statement of Cash Flows
                                                                                                                                                                                                     (In thousands)
                                                                                                                                                                                                         (unaudited)
                                                                                                                                                                                                               
                                                                                                                                              Three Months Ended                                   Full year Ended
                                                                                                                                                    December 31,                                       December 31,
                                                                                                                                    2010                    2009                     2010                      2009
                                                                                                                                                                                                               
                                                                                                Net (loss)/income               $ (895)                  $43,286                   $7,150                $ (66,456)
                                                                  Loss/(gain) on early
    extinguishment of debt                      --                      --                    3,454                   (9,390)
                                                                                  Real-estate related impairments                   4,925                  38,733                    6,451                   126,216
               Equity in earnings from JVs 
    (including impairments) and
    distributions of JV earnings, net                     616                     282                    2,020                     4,273
                                                        Decrease/(increase) in real 
    estate and deposits, net                   1,957                  13,908                 (69,964)                   108,628
                                                                                       Other operating activities                (12,215)                (69,569)                   83,440                    20,803
                                                       Net cash (used in)/provided by 
    operating activities                  (5,612)                  26,640                   32,551                   184,074
                                                                                                                                                                                                               
                                                         Net payments to purchase 
    investments and securities               (183,923)               (125,699)                (424,639)                 (125,699)
                                                             (Payments)/distribution to fund 
    restricted cash                   (396)                   2,256                    7,004                (16,348 
                                                                                       Other financing activities                 148,268                 (1,307)                  243,120                   (3,372)
                                                                           Cash used in investing 
    activities                (36,051)               (124,750)                (174,515)                 (145,419)
                                                                                                                                                                                                               
                                                                         Proceeds from issuance of new
    debt                       --                      --               195,134 34                        --
                                                                                               Debt issuance cost                      --                      --                  (3,067)                        --
                                                                                       Repayments of senior notes                      --                      --                (197,543)                        --
                                                                                                                                                                                                               
                                                                         Proceeds from stock option
    exercises                     292                     490                    2,062                     4,753
                                                         Net cash provided by/(used in) 
    financing activities                     292                     490                  (3,414)                     4,753
                                                                                                                                                                                                               
                                                                              Net (decrease)/increase in
    cash                (41,371)                (97,620)                (145,378)                    43,408
                                                                          Beginning cash and cash
    equivalents                 145,324                 346,951                  249,331                   205,923
                                                                         Ending cash and cash
    equivalents (1)                $103,953                $249,331                 $103,953                  $249,331
                                                                                                                                                                                                               
                                                                                                                                                                                                               
(1)  Ending cash and cash equivalents balances at December 31 exclude investments and securities of $299 million
    and restricted cash of $9 million in 2010, and $126 million and $16 million, respectively, in 2009.
 
                                                                  
                        Meritage Homes Corporation and Subsidiaries
                                                     Operating Data
                                             (Dollars in thousands)
                                                       (unaudited)
                                                              
                           For the Three Months Ended December 31,
                                       2010                   2009
                         Homes        Value     Homes        Value
                                                              
      Homes Closed:                                           
         California         94      $32,696       130      $40,155
             Nevada         16        3,378        18        3,325
          West Region       110       36,074       148       43,480
                                                              
            Arizona        152       36,970       218       45,044
              Texas        450      105,205       726      163,344
           Colorado         52       16,099        40       11,223
       Central Region       654      158,274       984      219,611
                                                              
            Florida         73       20,268        70       16,498
          East Region        73       20,268        70       16,498
                                                              
              Total        837     $214,616     1,202     $279,589
                                                              
     Homes Ordered:                                           
         California         61      $20,011        63      $22,921
             Nevada         20        4,053        20        3,718
          West Region        81       24,064        83       26,639
                                                              
            Arizona        118       29,244       117       26,711
              Texas        401       87,258       334       86,563
           Colorado         57       17,425        33        9,506
       Central Region       576      133,927       484      122,780
                                                              
            Florida         56       16,030        54       12,919
          East Region        56       16,030        54       12,919
              Total        713     $174,021       621     $162,338
 
                                                                    
                          Meritage Homes Corporation and Subsidiaries
                                                       Operating Data
                                               (Dollars in thousands)
                                                         (unaudited)
                                                                
                                For the Full year Ended December 31,
                                         2010                   2009
                           Homes        Value     Homes        Value
                                                                
       Homes Closed:                                           
           California        417     $147,194       348     $116,197
               Nevada         81       16,006       130       27,049
            West Region       498      163,200       478      143,246
                                                                
              Arizona        700      156,117       781      156,107
                Texas      2,028      487,797     2,405      566,879
             Colorado        162       48,820       145       44,225
         Central Region     2,890      692,734     3,331      767,211
                                                                
              Florida        312       84,472       230       52,340
            East Region       312       84,472       230       52,340
                                                                
                Total      3,700     $940,406     4,039     $962,797
                                                                
      Homes Ordered:                                           
           California        373     $128,167       350     $116,609
               Nevada         79       15,704       119       23,267
            West Region       452      143,871       469      139,876
                                                                
              Arizona        678      155,987       738      146,006
                Texas      1,776      417,840     2,233      518,288
             Colorado        175       54,328       140       42,416
         Central Region     2,629      628,155     3,111      706,710
                                                                
              Florida        302       82,661       273       65,715
            East Region       302       82,661       273       65,715
                Total      3,383     $854,687     3,853     $912,301
                                                                
      Order Backlog:                                           
           California         45      $15,295        89      $34,322
               Nevada         12        2,369        14        2,671
            West Region        57       17,664       103       36,993
                                                                
              Arizona        125       31,980       147       32,110
                Texas        463      111,607       715      181,564
             Colorado         52       16,964        39       11,456
         Central Region       640      160,551       901      225,130
                                                                
              Florida         81       23,601        91       25,412
            East Region        81       23,601        91       25,412
                                                                
                Total        778     $201,816     1,095     $287,535
 
                                                           
                 Meritage Homes Corporation and Subsidiaries
                                            Operating Data 
                                                 (unaudited)
                                                       
                         Three Months EndedThree Months Ended
                         December 31, 2010December 31, 2009
                              Beg.     End     Beg.     End
     Active Communities:                               
                California       13      14        9       7
                    Nevada        5       4        6       6
               West Region       18      18       15      13
                                                       
                 Arizona        32      32       28      26
                   Texas        82      82      102      98
                Colorado         8       9        3       6
            Central Region      122     123      133     130
                                                       
                 Florida        10      10       14      10
               East Region       10      10       14      10
                                                       
                   Total       150     151      162     153
                                                       
                           Full year Ended  Full year Ended
                         December 31, 2010December 31, 2009
                              Beg.     End     Beg.     End
     Active Communities:                               
                California        7      14       12       7
                    Nevada        6       4       12       6
               West Region       13      18       24      13
                                                       
                 Arizona        26      32       31      26
                   Texas        98      82      109      98
                Colorado         6       9        3       6
            Central Region      130     123      143     130
                                                       
                 Florida        10      10       11      10
               East Region       10      10       11      10
                                                       
                   Total       153     151      178     153

About Meritage Homes Corporation

Meritage Homes Corporation is 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, 2010, the Company had 151 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.

In 2010, Meritage celebrated its 25th Anniversary, launched a new Simply Smart Series™ of homes and a 99-day guaranteed completion program in certain communities, and is the only large national homebuilder to be 100% ENERGY STAR® qualified in every home started since January 1, 2010. Meritage has designed and built nearly 70,000 homes in its 25-year history, and has a reputation for its distinctive style, quality construction and positive customer experience. To find a Meritage community near you, go to www.meritagehomes.com.

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 our outlook that it will be more challenging to be profitable in the first quarter of 2011, that we expect to be more profitable in 2011 than we were in 2010, and that we are poised to take advantage of opportunities to grow and increase our profitability as the market recovers. Such statements are based upon preliminary financial and operating data which are subject to finalization by management and review by our independent registered public accountants, as well as 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, including: weakness in the homebuilding market resulting from the current economic downturn; interest rates and changes in the availability and pricing of residential mortgages; 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; the adverse effect of slower sales absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; the liquidity of our joint ventures and the ability of our joint venture partners to meet their obligations to us and the joint venture; competition; the success of our strategies in the current homebuilding market and economic environment; construction defect and home warranty claims; our success in prevailing on contested tax positions; the impact of deferred tax valuation allowances and our ability to preserve our operating loss carryforwards; fluctuations in housing demand, and the cost and availability of real estate and other matters that are outside of our control; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; our failure to comply with laws and regulations; the availability and cost of materials and labor; our lack of geographic diversification; inflation in the cost of materials used to construct homes; fluctuations in quarterly operating results; the Company's financial leverage and level of indebtedness; our ability to take certain actions because of restrictions contained in the indentures for the Company's senior and senior subordinated notes and our ability to raise additional capital when and if needed; our credit ratings; the impact of future capital raising transactions we may engage in; successful integration of future acquisitions; government regulations and legislative or other initiatives that seek to restrain growth or new housing construction or similar measures; consumer confidence, which can be impacted by economic and other factors such as terrorism, war, or threats thereof and our potential exposure to natural disasters; 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, 2009 under the caption "Risk Factors," and updated in our most recent Quarterly Report on Form 10-Q, all of which can be found on our website. As a result of these and other factors, the Company's stock and note prices may fluctuate dramatically.

CONTACT:  Investor Relations:
          Brent Anderson
          Vice President-Investor Relation
          (972)580-6360

Image: Meritage Homes Corporation Logo

Source: Meritage Homes Corporation