Meritage Homes Reports Results for the Fourth Quarter and Full Year 2014
Fourth quarter home closing revenue increases 29% with 27% increase in home closings
Net earnings for fourth quarter increase 7%, resulting in diluted EPS of $1.19
Total order value for fourth quarter up 18% over 2013 with 12% increase in orders
Year-end community count up 22% and backlog value up 23% over 2013
SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2014.
| Summary Operating Results (unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2014 | 2013 | %Chg | 2014 | 2013 | %Chg | |||||||||||||||
| Homes closed (units) | 1,863 | 1,468 | 27 | % | 5,862 | 5,259 | 11 | % | ||||||||||||
| Home closing revenue | $ | 688,288 | $ | 533,492 | 29 | % | $ | 2,142,391 | $ | 1,783,389 | 20 | % | ||||||||
| Average sales price - closings | $ | 369 | $ | 363 | 2 | % | $ | 365 | $ | 339 | 8 | % | ||||||||
| Home orders (units) | 1,272 | 1,131 | 12 | % | 5,944 | 5,615 | 6 | % | ||||||||||||
| Home order value | $ | 490,999 | $ | 414,584 | 18 | % | $ | 2,238,117 | $ | 1,982,303 | 13 | % | ||||||||
| Average sales price - orders | $ | 386 | $ | 367 | 5 | % | $ | 377 | $ | 353 | 7 | % | ||||||||
| Ending backlog (units) | 2,114 | 1,853 | 14 | % | ||||||||||||||||
| Ending backlog value | $ | 846,452 | $ | 686,672 | 23 | % | ||||||||||||||
| Average sales price - backlog | $ | 400 | $ | 371 | 8 | % | ||||||||||||||
| Net earnings | $ | 49,208 | $ | 46,089 | 7 | % | $ | 142,241 | $ | 124,464 | 14 | % | ||||||||
| Diluted EPS | $ | 1.19 | $ | 1.19 | — | % | $ | 3.46 | $ | 3.25 | 6 | % | ||||||||
MANAGEMENT COMMENTS
“We were pleased with our results for the fourth quarter and full year 2014,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “We achieved strong growth in closing volumes, orders and backlog for both the quarter and the year, driven by expansion of our East region and favorable market conditions in key markets like Texas and Colorado. With the combination of higher average prices on top of those volume gains, we generated even greater increases in our fourth quarter and full year home closing revenue, total order value and backlog value.
“Our net earnings increased by 7% in the fourth quarter over 2013, and were up 14% for the year,” said Mr. Hilton. “In addition to revenue growth, our net earnings reflected a lower tax rate for the quarter due to federal energy tax credits we earn for building highly energy efficient homes using advanced building standards. Over the last several years, those credits have significantly reduced our effective tax rates well below the statutory rates, translating to a real benefit for our shareholders in addition to the energy savings for our homeowners.
“Higher home closing revenue more than offset our expected margin decline, resulting in a 13% increase in home closing gross profit for the fourth quarter and 16% for the full year 2014. Because we are no longer benefiting from rapid home price inflation that exceeds our cost increases as it did through the middle of 2013, our gross margins have trended back to more normalized ratios from the unusually high levels in 2013 -- especially in California and Arizona. Purchase accounting adjustments on home closings from our August 2014 acquisition of Legendary Communities represent a temporary drag on our margins,” Mr. Hilton explained.
“We have maintained a strong balance sheet by carefully managing our debt and risks while investing where we perceive the best opportunities exist. We believe Meritage is strategically positioned in many of the highest quality markets in the country, which we selected based on their short- and long-term growth potential, population demographics and anticipated profitability through the business cycle. That strategy has enabled us to produce strong returns for our shareholders over the long term. We will continue to look for expansion and growth opportunities in new markets that meet these same criteria.”
He continued, “While there is uncertainty surrounding the potential effects of lower oil prices on the energy industry and some housing markets like Houston, other industries and markets should benefit from lower energy prices. We are confident in our market position and believe there will be opportunities as the U.S. economy continues to grow despite a decline in a single industry. Interest rates remain at historically low levels, employment numbers have improved and recent changes in the mortgage industry should open the door for hundreds of thousands of additional buyers who have previously been unable to obtain financing.
“With our year-end 2014 community count being over 20% higher than it was a year ago, we expect to grow our 2015 orders, closings and revenue, though we are being more cautious in our outlook,” said Mr. Hilton.
”We expect our 2015 home closing gross margin for the year to be consistent with our fourth quarter of 2014, beginning with a lower margin in the first quarter and improving as we progress through the year, following normal seasonal patterns. We expect positive year-over-year comparisons in the second half of 2015 and are confident that we will show meaningful earnings growth for the year,” concluded Mr. Hilton.
FOURTH QUARTER RESULTS
- Net earnings of $49.2 million ($1.19 per diluted share) for the fourth quarter of 2014, compared to prior year net earnings of $46.1 million ($1.19 per diluted share), primarily reflecting lower home closing margins on higher home closing revenues and a lower effective tax rate. Earnings per share also reflected a larger share count in 2014 compared to 2013.
- Home closing revenue increased 29% due to a 27% increase in home closings combined with a 2% increase in average price over the prior year period. The Central region (Texas) grew home closing revenue by 53% over 2013, followed by the East region’s 40% increase (Florida, the Carolinas and Tennessee), and an 8% increase in the West region (California, Colorado and Arizona).
- Fourth quarter orders increased 12% and the total value of homes ordered increased 18%, after a 5% increase in average sales prices, which reached $386,000 in the fourth quarter of 2014 compared to $367,000 in 2013. Texas’s fourth quarter order value was flat compared to the prior year despite an 8% decline in orders, as it was offset by a 9% increase in its average sales price. The decline in Texas orders was due to 13% fewer average actively selling communities compared to prior year, partially offset by an increase in average sales per community.
- Total active community count at year-end increased 22% in 2014 over 2013, primarily due to the acquisition of Legendary Communities, which operates at a structurally lower sales pace than Meritage’s other markets. As a result, average orders per community declined to 5.6 in the fourth quarter of 2014 from 6.2 in the fourth quarter of 2013, dampening the effect of the increase in community count on total order growth.
- Cancellation rates increased slightly to 17% in the fourth quarter of 2014, compared to 15% in the fourth quarter of 2013, but remained below historical rates for the Company.
- Home closing gross profit increased 13% over the prior year due to higher home closing revenue. Increased revenue was partially offset by a decline in home closing gross margins in the West and an approximate 48 bps negative impact due to purchase accounting adjustments on closings of Legendary Communities.
- Fourth quarter 2014 home closing margin was 20.3% compared to 23.2% in the fourth quarter of 2013.
- Commissions and other selling expenses increased by 40 basis points from the prior year to 7.2% of home closing revenue in the fourth quarter of 2014, compared to 6.8% of home closing revenue in the fourth quarter of 2013. Marketing and other sales overhead costs related to opening new communities and new divisions inflated the percentage of these costs relative to their closing revenues.
- General and administrative expenses for the fourth quarter of 2014 decreased by 40 basis points to 4.2% of total closing revenue in 2014, compared to 4.6% of total closing revenue in 2013.
- Interest expense decreased 70% to $0.6 million or 0.1% of total closing revenue in the fourth quarter of 2014, compared to $2.0 million or 0.4% of total closing revenue in the fourth quarter of 2013, as we capitalized nearly all interest incurred to assets under development.
- Earnings before income taxes increased modestly to $66.4 million from $65.9 million in the fourth quarter of 2014 compared to 2013, respectively. Pretax margin of 9.5% for the fourth quarter of 2014 was lower than 12.2% in 2013 due to lower gross margins in 2014.
FULL YEAR RESULTS
- Net income for the full year increased 14% to $142.2 million in 2014 compared to $124.5 million in 2013 as a result of higher revenues, partially offset by lower gross margins and a higher tax rate in 2014. The effective tax rate was 32% in 2014 and 30% in 2013. Pre-tax margins were similar at 9.6% in 2014 and 9.8% in 2013.
- Home closings and closing revenue increased 11% and 20%, respectively, for 2014 as compared to 2013, led by the East region’s expansion markets in Tennessee, Georgia and the Carolinas, which combined with Florida for a 50% increase in 2014 home closing revenue. Texas also generated a 39% increase in home closing revenue for the year over 2013, offsetting declines in the West.
- Full year home closing gross margin declined to 21.2% compared to 22.0% in 2013. Margin contraction from last year’s inflated levels in Arizona and California, combined with the negative impact of purchase accounting associated with the Legendary acquisition (26 bps), were not fully offset by improved margins in Texas and other markets, resulting in slightly lower home closing gross margin for the full year 2014 compared to 2013.
- Net orders for the year increased 6% in 2014 over 2013, and total order value increased 13% year over year, aided by a 7% increase in average sales prices.
- The total value of orders in backlog at year-end 2014 was 23% higher than the prior year’s ending backlog, reflecting a 14% increase in units in backlog coupled with an 8% increase in average price.
BALANCE SHEET
- Cash and cash equivalents plus securities at December 31, 2014, totaled $103.3 million, compared to $363.7 million at December 31, 2013, reflecting the $130.7 million purchase of Legendary Communities in August 2014, as well as investments to grow our other relatively new expansion markets in the East region. The company had nothing drawn on its $400 million revolving credit facility at December 31, 2014.
- Real estate assets increased by $472.4 million for the year, ending at $1.9 billion at December 31, 2014, compared to $1.4 billion at December 31, 2013. Approximately 47% of that increase was attributable to finished home sites (lots) and home sites under development, as Meritage acquired and developed lots for new communities in growing markets. We invested a total of approximately $705 million in land and development (excluding Legendary acquisition) during 2014.
- Meritage ended the year 2014 with approximately 30,300 total lots under control, compared to approximately 25,700 total lots at December 31, 2013. The acquisition of Legendary Communities in August of 2014 added approximately 4,800 lots in Georgia and the Carolinas, accounting for most of the increase in lots. Based on trailing twelve months’ closings, Meritage controlled a 5.2-year supply of lots at the end of 2014.
- Net debt-to-capital ratio at December 31, 2014 was 42.9%, compared to 39.8% at December 31, 2013, within the Company’s stated target range.
CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 10:00 a.m. Eastern Time (8:00 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/10058278.
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 or 1-855-669-9657 for Canada.
A replay of the call will be available until February 15, beginning at 12:00 p.m. ET on January 29, 2015 on the website noted above, or by dialing 877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10058278.
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 |
Twelve Months Ended |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Homebuilding: | ||||||||||||||||
| Home closing revenue | $ | 688,288 | $ | 533,492 | $ | 2,142,391 | $ | 1,783,389 | ||||||||
| Land closing revenue | 10,630 | 2,702 | 27,252 | 31,270 | ||||||||||||
| Total closing revenue | 698,918 | 536,194 | 2,169,643 | 1,814,659 | ||||||||||||
| Cost of home closings | (548,371 | ) | (409,918 | ) | (1,688,676 | ) | (1,391,475 | ) | ||||||||
| Cost of land closings | (10,266 | ) | (2,627 | ) | (28,350 | ) | (26,766 | ) | ||||||||
| Total cost of closings | (558,637 | ) | (412,545 | ) | (1,717,026 | ) | (1,418,241 | ) | ||||||||
| Home closing gross profit | 139,917 | 123,574 | 453,715 | 391,914 | ||||||||||||
| Land closing gross (loss)/profit | 364 | 75 | (1,098 | ) | 4,504 | |||||||||||
| Total closing gross profit | 140,281 | 123,649 | 452,617 | 396,418 | ||||||||||||
| Financial Services: | ||||||||||||||||
| Revenue | 3,022 | 2,077 | 10,121 | 6,037 | ||||||||||||
| Expense | (1,368 | ) | (1,037 | ) | (4,812 | ) | (3,266 | ) | ||||||||
| Earnings from financial services unconsolidated entities and other, net | 3,588 | 3,399 | 10,869 | 13,183 | ||||||||||||
| Financial services profit | 5,242 | 4,439 | 16,178 | 15,954 | ||||||||||||
| Commissions and other sales costs | (49,492 | ) | (36,190 | ) | (156,742 | ) | (126,716 | ) | ||||||||
| General and administrative expenses | (29,138 | ) | (24,923 | ) | (104,598 | ) | (91,510 | ) | ||||||||
| Loss from other unconsolidated entities, net | (83 | ) | (149 | ) | (447 | ) | (378 | ) | ||||||||
| Interest expense | (594 | ) | (1,979 | ) | (5,163 | ) | (15,092 | ) | ||||||||
| Other income, net | 177 | 1,032 | 6,572 | 2,792 | ||||||||||||
| Loss on early extinguishment of debt | — | — | — | (3,796 | ) | |||||||||||
| Earnings before income taxes | 66,393 | 65,879 | 208,417 | 177,672 | ||||||||||||
| Provision for income taxes | (17,185 | ) | (19,790 | ) | (66,176 | ) | (53,208 | ) | ||||||||
| Net earnings | $ | 49,208 | $ | 46,089 | $ | 142,241 | $ | 124,464 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Earnings per share | $ | 1.26 | $ | 1.27 | $ | 3.65 | $ | 3.45 | ||||||||
| Weighted average shares outstanding | 39,133 | 36,240 | 39,017 | 36,105 | ||||||||||||
| Diluted | ||||||||||||||||
| Earnings per share | $ | 1.19 | $ | 1.19 | $ | 3.46 | $ | 3.25 | ||||||||
| Weighted average shares outstanding | 41,696 | 38,905 | 41,614 | 38,801 | ||||||||||||
| Meritage Homes Corporation and Subsidiaries | ||||||
| Consolidated Balance Sheets | ||||||
| (In thousands) | ||||||
| (unaudited) | ||||||
| December 31, 2014 | December 31, 2013 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 103,333 | $ | 274,136 | ||
| Investments and securities | — | 89,529 | ||||
| Other receivables | 56,763 | 38,983 | ||||
| Real estate (1) | 1,877,682 | 1,405,299 | ||||
| Real estate not owned | 4,999 | 289 | ||||
| Deposits on real estate under option or contract | 94,989 | 51,595 | ||||
| Investments in unconsolidated entities | 10,780 | 11,638 | ||||
| Property and equipment, net | 32,403 | 22,099 | ||||
| Deferred tax asset | 64,137 | 70,404 | ||||
| Prepaids, other assets and goodwill | 71,052 | 39,389 | ||||
| Total assets | $ | 2,316,138 | $ | 2,003,361 | ||
| Liabilities: | ||||||
| Accounts payable | $ | 83,619 | $ | 68,018 | ||
| Accrued liabilities | 154,144 | 150,618 | ||||
| Home sale deposits | 29,379 | 21,996 | ||||
| Liabilities related to real estate not owned | 4,299 | 289 | ||||
| Loans payable and other borrowings | 30,722 | 15,993 | ||||
| Senior and convertible senior notes | 904,486 | 905,055 | ||||
| Total liabilities | 1,206,649 | 1,161,969 | ||||
| Stockholders' Equity: | ||||||
| Preferred stock | — | — | ||||
| Common stock | 391 | 362 | ||||
| Additional paid-in capital | 538,788 | 412,961 | ||||
| Retained earnings | 570,310 | 428,069 | ||||
| Total stockholders’ equity | 1,109,489 | 841,392 | ||||
| Total liabilities and stockholders’ equity | $ | 2,316,138 | $ | 2,003,361 | ||
| (1) Real estate – Allocated costs: | ||||||
| Homes under contract under construction | $ | 328,931 | $ | 262,633 | ||
| Unsold homes, completed and under construction | 302,288 | 147,889 | ||||
| Model homes | 109,614 | 81,541 | ||||
| Finished home sites and home sites under development | 1,136,849 | 913,236 | ||||
| Total real estate | $ | 1,877,682 | $ | 1,405,299 | ||
|
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited): |
||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Depreciation and amortization | $ | 3,460 | $ | 2,765 | $ | 11,614 | $ | 9,934 | ||||||||
| Summary of Capitalized Interest: | ||||||||||||||||
| Capitalized interest, beginning of period | $ | 50,455 | $ | 28,998 | $ | 32,992 | $ | 21,600 | ||||||||
| Interest incurred | 15,041 | 13,276 | 58,374 | 51,152 | ||||||||||||
| Interest expensed | (594 | ) | (1,979 | ) | (5,163 | ) | (15,092 | ) | ||||||||
| Interest amortized to cost of home and land closings | (10,842 | ) | (7,303 | ) | (32,143 | ) | (24,668 | ) | ||||||||
| Capitalized interest, end of period | $ | 54,060 | $ | 32,992 | $ | 54,060 | $ | 32,992 | ||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||||
| Notes payable and other borrowings | $ | 935,208 | $ | 921,048 | ||||||||||||
| Stockholders' equity | 1,109,489 | 841,392 | ||||||||||||||
| Total capital | 2,044,697 | 1,762,440 | ||||||||||||||
| Debt-to-capital | 45.7 | % | 52.3 | % | ||||||||||||
| Notes payable and other borrowings | $ | 935,208 | $ | 921,048 | ||||||||||||
| Less: cash and cash equivalents and investments and securities | (103,333 | ) | (363,665 | ) | ||||||||||||
| Net debt | 831,875 | 557,383 | ||||||||||||||
| Stockholders’ equity | 1,109,489 | 841,392 | ||||||||||||||
| Total net capital | $ | 1,941,364 | $ | 1,398,775 | ||||||||||||
| Net debt-to-capital | 42.9 | % | 39.8 | % | ||||||||||||
| Meritage Homes Corporation and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In thousands) (unaudited) | ||||||||
| Twelve Months Ended December 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 142,241 | $ | 124,464 | ||||
| Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 11,614 | 9,934 | ||||||
| Stock-based compensation | 12,211 | 9,483 | ||||||
| Loss on early extinguishment of debt | — | 3,796 | ||||||
| Excess income tax benefit from stock-based awards | (2,297 | ) | (1,891 | ) | ||||
| Equity in earnings from unconsolidated entities | (10,422 | ) | (12,805 | ) | ||||
| Deferred tax asset valuation benefit | — | (8,666 | ) | |||||
| Distribution of earnings from unconsolidated entities | 11,613 | 13,013 | ||||||
| Other | 10,149 | 17,742 | ||||||
| Changes in assets and liabilities: | ||||||||
| Increase in real estate | (338,594 | ) | (263,886 | ) | ||||
| Increase in deposits on real estate under option or contract | (42,278 | ) | (36,974 | ) | ||||
| Increase in receivables, prepaids and other assets | (25,032 | ) | (18,429 | ) | ||||
| Increase in accounts payable and accrued liabilities | 14,688 | 76,898 | ||||||
| Increase in home sale deposits | 4,859 | 9,397 | ||||||
| Net cash used in operating activities | (211,248 | ) | (77,924 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Investments in unconsolidated entities | (515 | ) | (107 | ) | ||||
| Distributions of capital from unconsolidated entities | 65 | 158 | ||||||
| Purchases of property and equipment | (20,788 | ) | (15,783 | ) | ||||
| Proceeds from sales of property and equipment | 262 | 56 | ||||||
| Maturities of investments and securities | 124,599 | 163,012 | ||||||
| Payments to purchase investments and securities | (35,813 | ) | (166,619 | ) | ||||
| Cash paid for acquisitions | (130,677 | ) | (18,624 | ) | ||||
| Decrease in restricted cash | — | 38,938 | ||||||
| Net cash (used in)/provided by investing activities | (62,867 | ) | 1,031 | |||||
| Cash flows from financing activities: | ||||||||
| Repayment of loans payable and other borrowings | (10,447 | ) | (8,352 | ) | ||||
| Repayment of senior subordinated notes | — | (102,822 | ) | |||||
| Proceeds from issuance of senior notes | — | 281,699 | ||||||
| Proceeds from issuance of common stock, net | 110,420 | — | ||||||
| Debt issuance costs | — | (3,188 | ) | |||||
| Excess income tax benefit from stock-based awards | 2,297 | 1,891 | ||||||
| Non-controlling interest acquisition | — | (257 | ) | |||||
| Proceeds from stock option exercises | 1,042 | 11,601 | ||||||
| Net cash provided by financing activities | 103,312 | 180,572 | ||||||
| Net (decrease)/increase in cash and cash equivalents | (170,803 | ) | 103,679 | |||||
| Beginning cash and cash equivalents | 274,136 | 170,457 | ||||||
| Ending cash and cash equivalents (2) | $ | 103,333 | $ | 274,136 | ||||
(2) Ending cash and cash equivalents excludes investments and securities of $89.5 million as of December 31, 2013.
| Meritage Homes Corporation and Subsidiaries | ||||||||||||||
| Operating Data | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||
| Homes | Value | Homes | Value | |||||||||||
| Homes Closed: | ||||||||||||||
| Arizona | 225 | $ | 73,101 | 297 | $ |
96,408 |
|
|||||||
| California | 239 | 122,851 | 205 | 98,472 | ||||||||||
| Colorado | 146 | 64,696 | 107 | 46,555 | ||||||||||
| Nevada | — | — | — | — | ||||||||||
| West Region | 610 | 260,648 | 609 | 241,435 | ||||||||||
| Texas | 713 | 227,342 | 522 | 148,853 | ||||||||||
| Central Region | 713 | 227,342 | 522 | 148,853 | ||||||||||
| Florida | 217 | 87,503 | 235 | 102,220 | ||||||||||
| Georgia | 53 | 17,734 | — | — | ||||||||||
| North Carolina | 138 | 55,870 | 86 | 35,361 | ||||||||||
| South Carolina | 75 | 24,747 | — | — | ||||||||||
| Tennessee | 57 | 14,444 | 16 | 5,623 | ||||||||||
| East Region | 540 | 200,298 | 337 | 143,204 | ||||||||||
| Total | 1,863 | $ | 688,288 | 1,468 | $ | 533,492 | ||||||||
| Homes Ordered: | ||||||||||||||
| Arizona | 173 | $ | 55,489 | 184 | $ | 62,139 | ||||||||
| California | 173 | 96,335 | 169 | 78,828 | ||||||||||
| Colorado | 113 | 49,958 | 107 | 46,837 | ||||||||||
| Nevada | — | — | — | — | ||||||||||
| West Region | 459 | 201,782 | 460 | 187,804 | ||||||||||
| Texas | 401 | 133,282 | 437 | 133,608 | ||||||||||
| Central Region | 401 | 133,282 | 437 | 133,608 | ||||||||||
| Florida | 168 | 71,692 | 128 | 53,801 | ||||||||||
| Georgia | 41 | 12,996 | — | — | ||||||||||
| North Carolina | 127 | 46,900 | 80 | 31,626 | ||||||||||
| South Carolina | 55 | 18,952 | — | — | ||||||||||
| Tennessee | 21 | 5,395 | 26 | 7,745 | ||||||||||
| East Region | 412 | 155,935 | 234 | 93,172 | ||||||||||
| Total | 1,272 | $ | 490,999 | 1,131 | $ | 414,584 | ||||||||
| Meritage Homes Corporation and Subsidiaries | ||||||||||||||
| Operating Data | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Twelve Months Ended | ||||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||||
| Homes | Value | Homes | Value | |||||||||||
| Homes Closed: | ||||||||||||||
| Arizona | 924 | $ | 307,282 | 1,041 |
$ |
329,855 |
|
|||||||
| California | 785 | 395,105 | 989 | 427,886 | ||||||||||
| Colorado | 464 | 206,702 | 405 | 158,793 | ||||||||||
| Nevada | — | — | 38 | 8,900 | ||||||||||
| West Region | 2,173 | 909,089 | 2,473 | 925,434 | ||||||||||
| Texas | 2,224 | 683,717 | 1,834 | 492,777 | ||||||||||
| Central Region | 2,224 | 683,717 | 1,834 | 492,777 | ||||||||||
| Florida | 699 | 277,045 | 691 | 264,066 | ||||||||||
| Georgia | 90 | 29,633 | — | — | ||||||||||
| North Carolina | 386 | 157,989 | 239 | 93,210 | ||||||||||
| South Carolina | 112 | 36,241 | — | — | ||||||||||
| Tennessee | 178 | 48,677 | 22 | 7,902 | ||||||||||
| East Region | 1,465 | 549,585 | 952 | 365,178 | ||||||||||
| Total | 5,862 | $ | 2,142,391 | 5,259 | $ | 1,783,389 | ||||||||
| Homes Ordered: | ||||||||||||||
| Arizona | 838 | $ | 276,261 | 1,070 | $ | 346,278 | ||||||||
| California | 772 | 411,605 | 899 | 410,761 | ||||||||||
| Colorado | 530 | 235,951 | 465 | 201,088 | ||||||||||
| Nevada | — | — | 24 | 5,795 | ||||||||||
| West Region | 2,140 | 923,817 | 2,458 | 963,922 | ||||||||||
| Texas | 2,290 | 747,103 | 2,126 | 606,115 | ||||||||||
| Central Region | 2,290 | 747,103 | 2,126 | 606,115 | ||||||||||
| Florida | 728 | 290,343 | 696 | 282,328 | ||||||||||
| Georgia | 72 | 22,443 | — | — | ||||||||||
| North Carolina | 438 | 171,843 | 298 | 119,087 | ||||||||||
| South Carolina | 99 | 33,177 | — | — | ||||||||||
| Tennessee | 177 | 49,391 | 37 | 10,851 | ||||||||||
| East Region | 1,514 | 567,197 | 1,031 | 412,266 | ||||||||||
| Total | 5,944 | $ | 2,238,117 | 5,615 | $ | 1,982,303 | ||||||||
| Order Backlog: | ||||||||||||||
| Arizona | 192 | $ | 66,218 | 278 | $ | 97,239 | ||||||||
| California | 212 | 123,963 | 225 | 107,463 | ||||||||||
| Colorado | 268 | 121,633 | 202 | 92,384 | ||||||||||
| Nevada | — | — | — | — | ||||||||||
| West Region | 672 | 311,814 | 705 | 297,086 | ||||||||||
| Texas | 858 | 309,041 | 792 | 245,655 | ||||||||||
| Central Region | 858 | 309,041 | 792 | 245,655 | ||||||||||
| Florida | 237 | 102,570 | 208 | 89,272 | ||||||||||
| Georgia | 53 | 16,584 | — | — | ||||||||||
| North Carolina | 185 | 68,168 | 108 | 43,218 | ||||||||||
| South Carolina | 70 | 26,120 | — | — | ||||||||||
| Tennessee | 39 | 12,155 | 40 | 11,441 | ||||||||||
| East Region | 584 | 225,597 | 356 | 143,931 | ||||||||||
| Total | 2,114 | $ | 846,452 | 1,853 | $ | 686,672 | ||||||||
| Meritage Homes Corporation and Subsidiaries | ||||||||||||
| Operating Data | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||
| Beg. | End | Beg. | End | |||||||||
| Active Communities: | ||||||||||||
| Arizona | 42 | 41 | 39 |
40 |
|
|||||||
| California | 22 | 24 | 18 | 22 | ||||||||
| Colorado | 16 | 17 | 12 | 14 | ||||||||
| Nevada | — | — | — | — | ||||||||
| West Region | 80 | 82 | 69 | 76 | ||||||||
| Texas | 65 | 59 | 73 | 70 | ||||||||
| Central Region | 65 | 59 | 73 | 70 | ||||||||
| Florida | 26 | 29 | 19 | 20 | ||||||||
| Georgia | 11 | 13 | — | — | ||||||||
| North Carolina | 20 | 21 | 15 | 17 | ||||||||
| South Carolina | 19 | 20 | — | — | ||||||||
| Tennessee | 4 | 5 | 3 | 5 | ||||||||
| East Region | 80 | 88 | 37 | 42 | ||||||||
| Total | 225 | 229 | 179 | 188 | ||||||||
| Twelve Months Ended | ||||||||||||
| December 31, 2014 | December 31, 2013 | |||||||||||
| Beg. | End | Beg. | End | |||||||||
| Active Communities: | ||||||||||||
| Arizona | 40 | 41 | 38 | 40 | ||||||||
| California | 22 | 24 | 17 | 22 | ||||||||
| Colorado | 14 | 17 | 12 | 14 | ||||||||
| Nevada | — | — | 1 | — | ||||||||
| West Region | 76 | 82 | 68 | 76 | ||||||||
| Texas | 70 | 59 | 65 | 70 | ||||||||
| Central Region | 70 | 59 | 65 | 70 | ||||||||
| Florida | 20 | 29 | 18 | 20 | ||||||||
| Georgia | — | 13 | — | — | ||||||||
| North Carolina | 17 | 21 | 7 | 17 | ||||||||
| South Carolina | — | 20 | — | — | ||||||||
| Tennessee | 5 | 5 | — | 5 | ||||||||
| East Region | 42 | 88 | 25 | 42 | ||||||||
| Total | 188 | 229 | 158 | 188 | ||||||||
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 85,000 homes in its 30-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 growth of the U.S. economy and housing market; our growth opportunities including 2015 orders, closings and revenue; trends in home closing gross margins in 2015; and the expectation for meaningful earnings growth in 2015.
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 due to lower oil prices or other factors; 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
Released January 29, 2015