Meritage Homes Reports Results for the Second Quarter of 2013
21% Growth in Orders, 55% Increase in Home Closing Revenue, 21.5% Home Closing Gross Margin and Diluted EPS of $0.74
SCOTTSDALE, AZ -- (Marketwired) -- 07/24/13 -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced second quarter results for the period ended June 30, 2013.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2013 2012 %Chg 2013 2012 %Chg
--------- --------- ----- ---------- --------- -----
Homes closed (units) 1,321 1,042 27% 2,373 1,801 32%
Home closing revenue $ 436,040 $ 281,340 55% $ 766,750 $ 485,362 58%
Average sales price -
closings $ 330 $ 270 22% $ 323 $ 269 20%
Home orders (units) 1,637 1,353 21% 3,184 2,497 28%
Home order value $ 573,392 $ 385,829 49% $1,093,795 $ 694,158 58%
Average sales price -
orders $ 350 $ 285 23% $ 344 $ 278 24%
Ending backlog
(units) 2,283 1,611 42%
Ending backlog value $ 806,311 $ 457,650 76%
Average sales price -
backlog $ 353 $ 284 24%
Net earnings $ 28,143 $ 8,005 252% $ 40,184 $ 3,251 1,136%
Diluted EPS $ 0.74 $ 0.24 208% $ 1.06 $ 0.10 960%
MANAGEMENT COMMENTS
"The second quarter of 2013 was another quarter of strong growth, with continued significant improvements across our operating metrics," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "This was our ninth consecutive quarter of positive year-over-year growth in orders and our seventh consecutive quarter of growth in closing revenue year over year.
"More importantly, our earnings continued to grow at a much higher rate than our revenue. Our gross margin on home closings increased to 21.5%, and our additional operating leverage drove year-over-year net earnings growth of 252% on a 55% increase in home closing revenue.
"Despite the recent rise in interest rates and home prices, affordability remains excellent and demand for new homes continues to be strong in our markets, as evidenced by our pace of orders increasing over last quarter's pace and well above the second quarter of 2012," Mr. Hilton explained.
"In a competitive land market, I am also pleased with our ability to acquire new lot positions for additional growth. We increased our total lot supply by more than 1,500 lots during the quarter, putting more than 3,500 new lots under control, which was the second highest number of lots we have acquired over the last six quarters. We continue to seek new opportunities to expand our footprint while also allocating capital to grow within our existing markets."
STRONG GROWTH
- Total order value in the second quarter increased 49% year over year due to a 23% increase in average price and a 21% increase in total orders. Total order value and backlog grew in every state except Nevada, where the company has now ceased operations. The average sales price of approximately $350,000 on orders was the highest for Meritage in more than eight years, reflecting the combination of a greater portion of orders in higher-priced communities in addition to home price appreciation.
- Ending backlog value increased 76% over the second quarter of 2012, combining a 24% increase in average sales price with 42% growth in units. Colorado, the Carolinas and Florida led with growth in backlog value of 164%, 127% and 99%, respectively, over the prior year. Meritage's expansion into Charlotte early last year accounted for some of the growth in the Carolinas.
- Orders per average community increased to 9.8 for the second quarter of 2013 from 9.0 in the second quarter of 2012 and 9.5 in the first quarter of 2013.
- Meritage ended the quarter with 165 active communities, up from 151 at June 30, 2012.
- Order cancellation rate fell to 11% in the second quarter of 2013, compared to 13% in the prior year.
OPERATING LEVERAGE
- Net earnings for the second quarter increased 252% year over year to $28.1 million or $0.74 per diluted share in 2013, compared to $8.0 million or $0.24 per diluted share in 2012, primarily due to higher home closing revenue and gross margins, coupled with overhead expense leverage.
- Home closing revenue increased 55% year over year due to a 22% increase in average price on top of a 27% increase in total homes closed in the second quarter. Every state grew over the prior year in closings, revenue and average prices.
- Home closing gross margin increased to 21.5% in the second quarter of 2013, a year-over-year improvement of 300 bps compared to 18.5% in the second quarter of 2012, and a sequential improvement of 200 bps compared to 19.5% in the first quarter of 2013. The significant margin growth reflects both home price appreciation and the effects of improved management of direct costs.
- Commissions and other sales costs in the second quarter improved 100 bps due to operating leverage, decreasing as a percentage of home closing revenue to 7.2% in 2013 from 8.2% in 2012.
- General and administrative expenses also improved 90 bps due to operating leverage, declining to 5.0% of second quarter revenue in 2013, from 5.9% in 2012. The majority of the $5.9 million increase over last year was the result of additional hiring and compensation expense.
- Interest expense improved 120 bps, declining to 1.0% of second quarter revenue in 2013 compared to 2.2% in 2012, as more interest was capitalized to additional land under development and homes under construction.
- Second quarter pre-tax margin increased 750 bps to 8.5% in 2013 from 1.0% in 2012, or $38.5 million in 2013 pre-tax income compared to $2.8 million in 2012.
YEAR-TO-DATE RESULTS
- Net earnings of $40.2 million for the first half of 2013 included a $3.8 million loss on early extinguishment of debt and a tax provision of $14.8 million, compared to net earnings of $3.3 million for the first half of 2012, which included a $5.8 million loss on early extinguishment of debt and a $5.0 million tax benefit.
- Home closings and closing revenue for the first half of the year increased 32% and 58%, respectively, for 2013 over 2012, reflecting the combination of a greater portion of sales in higher-priced communities in addition to home price appreciation.
- Year-to-date home closing gross margin improved by 270 basis points to 20.6% for 2013, compared to 17.9% for 2012, as a result of home price appreciation and improved management of direct costs.
- Total selling, general and administrative expenses decreased 250 basis points as a percentage of revenue to 12.6% in the first half of 2013 compared to 15.1% in 2012, reflecting operating leverage.
- Net orders for the first half of the year increased 28% in 2013 over 2012, and combined with a 24% increase in average sales prices, resulting in total order value increasing 58% year over year.
BALANCE SHEET STRENGTH
- Meritage replenished its land pipeline by spending approximately $156 million on land acquisition and development in the second quarter of 2013, and added approximately 3,500 new lots under contract during the quarter.
- Total lot supply at the end of the quarter was approximately 22,600, compared to approximately 17,600 a year earlier. Based on trailing twelve months closings, the June 30, 2013 balance represents a 4.7 year supply of lots.
- The company ended the second quarter of 2013 with $353 million in cash and cash equivalents, restricted cash and securities, an increase of $148 million over the June 30, 2012 total of $205 million. Net debt to total capital ratio decreased to 37.2% at June 30, 2013, from 44.1% at June 30, 2012 and 38.1% at December 31, 2012, despite a $75.4 million increase in debt this year.
SUMMARY
"Most housing metrics have been moving in a positive direction over the last year, albeit from historically depressed levels. As the U.S. economy improves and creates jobs, demand for new homes should remain strong, especially in light of the shortage of used homes listed for sale," said Mr. Hilton. "Nearly every major housing market is experiencing price appreciation, which is good for both existing homeowners and homebuilders, and is helping to drive our revenue growth well in excess of our growth in orders and closings. Buyers may conclude that they missed the absolute bottom of the market in terms of prices and interest rates, but they also recognize that both are still a bargain in terms of the amount of house you can buy at a given income level.
"Assuming continued growth in the market due to those factors, and based on our better than expected second quarter performance and subsequently revised projections, we are projecting home closing revenue of approximately $1.7-1.8 billion for 2013, resulting in projected earnings per diluted share in the range of $2.65-$2.85 for the year."
CONFERENCE CALL
Management will host a conference call today to discuss the Company's second quarter results at 10:30 a.m. Eastern time (7:30 a.m. Pacific Time). The call will be webcast with an accompanying slideshow available on the "Investor Relations" page of the Company's web site at http://investors.meritagehomes.com. Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN.
Conference Call Pre-registration link: http://services.choruscall.com/DiamondPassRegistration/register?confirmationNumber=10030804&linkSecurityString=259fe32118.
Telephone participants who are unable to pre-register may dial in to 888-317-6016 on the day of the call.
A replay of the call will be available for fifteen days, beginning at 12:30 p.m. ET on July 24, 2013 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10030804. For more information, visit meritagehomes.com.
Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
--------- --------- --------- ---------
Homebuilding:
Home closing revenue $ 436,040 $ 281,340 $ 766,750 $ 485,362
Land closing revenue 13,910 755 19,635 1,083
--------- --------- --------- ---------
Total closing revenue 449,950 282,095 786,385 486,445
--------- --------- --------- ---------
Cost of home closings (342,435) (229,394) (608,785) (398,303)
Cost of land closings (12,463) (1,135) (18,013) (1,340)
--------- --------- --------- ---------
Total cost of closings (354,898) (230,529) (626,798) (399,643)
--------- --------- --------- ---------
Home closing gross profit 93,605 51,946 157,965 87,059
Land closing gross
profit/(loss) 1,447 (380) 1,622 (257)
--------- --------- --------- ---------
Total closing gross profit 95,052 51,566 159,587 86,802
--------- --------- --------- ---------
Financial Services:
Revenue 1,434 - 2,276 -
Expense (755) (142) (1,328) (167)
Earnings from financial
services unconsolidated
entities and other, net 3,486 2,319 6,273 3,925
--------- --------- --------- ---------
Financial services profit 4,165 2,177 7,221 3,758
--------- --------- --------- ---------
Commissions and other sales
costs (31,180) (23,118) (57,059) (42,095)
General and administrative
expenses (22,451) (16,516) (42,175) (31,237)
Loss from other unconsolidated
entities, net (120) (91) (275) (274)
Interest expense (4,523) (6,338) (9,651) (13,709)
Other income, net 685 934 1,155 795
Loss on early extinguishment of
debt (3,096) (5,772) (3,796) (5,772)
--------- --------- --------- ---------
Earnings/(loss) before income
taxes 38,532 2,842 55,007 (1,732)
(Provision for)/benefit from
income taxes (10,389) 5,163 (14,823) 4,983
--------- --------- --------- ---------
Net earnings $ 28,143 $ 8,005 $ 40,184 $ 3,251
========= ========= ========= =========
Earnings per share:
Basic
Earnings per share $ 0.78 $ 0.24 $ 1.12 $ 0.10
Weighted average shares
outstanding 36,151 32,755 35,976 32,694
Diluted
Earnings per share $ 0.74 $ 0.24 $ 1.06 $ 0.10
Weighted average shares
outstanding 38,758 33,104 38,662 33,086
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
June 30, December 31,
2013 2012
------------ ------------
Assets:
Cash and cash equivalents $ 218,019 $ 170,457
Investments and securities 91,988 86,074
Restricted cash 43,265 38,938
Other receivables 30,246 20,290
Real estate (1) 1,227,229 1,113,187
Deposits on real estate under option or contract 21,712 14,351
Investments in unconsolidated entities 10,698 12,085
Property and equipment, net 17,013 15,718
Deferred tax asset 77,279 77,974
Prepaid expenses and other assets 30,028 26,488
------------ ------------
Total assets $ 1,767,477 $ 1,575,562
============ ============
Liabilities:
Accounts payable $ 68,662 $ 49,801
Accrued liabilities 124,353 96,377
Home sale deposits 25,566 12,377
Senior, senior subordinated, convertible senior
notes and other borrowings 798,215 722,797
------------ ------------
Total liabilities 1,016,796 881,352
------------ ------------
Stockholders' Equity:
Preferred stock, par value $0.01. - -
Common stock, par value $0.01. 362 356
Additional paid-in capital 406,530 390,249
Retained earnings 343,789 303,605
------------ ------------
Total stockholders' equity 750,681 694,210
------------ ------------
Total liabilities and stockholders' equity $ 1,767,477 $ 1,575,562
============ ============
(1) Real estate -Allocated costs:
Homes under contract under construction $ 304,159 $ 192,948
Unsold homes, completed and under construction 96,076 107,466
Model homes 70,596 62,411
Finished home sites and home sites under
development 644,315 634,106
Land held for development 57,650 56,118
Land held for sale 15,104 21,650
Communities in mothball status 39,329 38,488
------------ ------------
Total real estate $ 1,227,229 $ 1,113,187
============ ============
Supplemental Information and Non-GAAP Financial Disclosures (In thousands -
unaudited):
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
---------- ---------- --------- ---------
Depreciation and amortization $ 2,500 $ 1,921 $ 4,658 $ 3,614
========== ========== ========= =========
Summary of Capitalized
Interest:
Capitalized interest,
beginning of period $ 24,198 $ 15,908 $ 21,600 $ 14,810
Interest incurred 12,642 11,318 25,368 22,165
Interest expensed (4,523) (6,338) (9,651) (13,709)
Interest amortized to cost of
home, land closings and
impairments (6,023) (3,052) (11,023) (5,430)
---------- ---------- --------- ---------
Capitalized interest, end of
period $ 26,294 $ 17,836 $ 26,294 $ 17,836
========== ========== ========= =========
June 30, December 31,
2013 2012
---------- ----------
Notes payable and other
borrowings $ 798,215 $ 722,797
Less: cash and cash
equivalents, restricted
cash, and investments and
securities (353,272) (295,469)
---------- ----------
Net debt 444,943 427,328
Stockholders' equity 750,681 694,210
---------- ----------
Total capital $1,195,624 $1,121,538
========== ==========
Net debt-to-capital 37.2% 38.1%
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) (unaudited)
Six Months Ended
June 30,
2013 2012
--------- ---------
Cash flows from operating activities:
Net earnings $ 40,184 $ 3,251
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization 4,658 3,614
Stock-based compensation 3,941 3,273
Loss on early extinguishment of debt 3,796 5,772
Excess income tax benefit from stock-based awards (1,687) -
Equity in earnings from unconsolidated entities (5,998) (3,651)
Deferred tax asset valuation benefit (3,057) (7,705)
Distribution of earnings from unconsolidated
entities 7,236 2,995
Other 4,022 1,202
Changes in assets and liabilities:
Increase in real estate (113,992) (140,662)
(Increase)/decrease in deposits on real estate
under option or contract (7,361) 424
(Increase)/decrease in receivables and prepaid
expenses and other assets (13,167) 1,758
Increase in accounts payable and accrued
liabilities 48,715 20,934
Increase in home sale deposits 13,189 3,888
--------- ---------
Net cash used in operating activities (19,521) (104,907)
--------- ---------
Cash flows from investing activities:
Investments in unconsolidated entities (116) (405)
Distributions of capital from unconsolidated
entities 74 -
Purchases of property and equipment (5,787) (4,383)
Proceeds of sales from property and equipment 32 364
Maturities of investments and securities 71,024 120,201
Payments to purchase investments and securities (76,938) (76,502)
Increase in restricted cash (4,327) (6,962)
--------- ---------
Net cash (used in)/provided by investing
activities (16,038) 32,313
--------- ---------
Cash flows from financing activities:
Repayments of senior and senior subordinated notes (102,822) (315,080)
Proceeds from issuance of senior notes 175,000 300,000
Debt issuance costs (1,403) (5,334)
Excess income tax benefit from stock-based awards 1,687 -
Non-controlling interest acquisition (257) -
Proceeds from stock option exercises 10,916 1,222
--------- ---------
Net cash (used in)/provided by financing
activities 83,121 (19,192)
--------- ---------
Net increase/(decrease) in cash and cash equivalents 47,562 (91,786)
Beginning cash and cash equivalents 170,457 173,612
--------- ---------
Ending cash and cash equivalents (2) $ 218,019 $ 81,826
========= =========
(2) Ending cash and cash equivalents as of June 30, 2013 and December 31,
2012 excludes investments and securities and restricted cash totaling $135
million and $125 million, respectively.
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Three Months Ended
June 30, 2013 June 30, 2012
------------------- ------------------
Homes Value Homes Value
-------- ---------- -------- ---------
Homes Closed:
Arizona 251 $ 79,736 208 $ 54,772
California 297 124,818 148 50,521
Colorado 100 37,001 80 26,877
Nevada 21 5,086 11 2,093
-------- ---------- -------- ---------
West Region 669 246,641 447 134,263
-------- ---------- -------- ---------
Texas 449 116,970 439 101,744
-------- ---------- -------- ---------
Central Region 449 116,970 439 101,744
-------- ---------- -------- ---------
Carolinas 51 19,273 26 9,507
Florida 152 53,156 130 35,826
-------- ---------- -------- ---------
East Region 203 72,429 156 45,333
-------- ---------- -------- ---------
Total 1,321 $ 436,040 1,042 $ 281,340
======== ========== ======== =========
Homes Ordered:
Arizona 334 $ 105,683 260 $ 70,331
California 251 113,561 279 100,432
Colorado 121 53,278 87 28,774
Nevada 1 289 31 5,615
-------- ---------- -------- ---------
West Region 707 272,811 657 205,152
-------- ---------- -------- ---------
Texas 641 183,509 482 117,028
-------- ---------- -------- ---------
Central Region 641 183,509 482 117,028
-------- ---------- -------- ---------
Carolinas 77 31,604 40 14,053
Florida 212 85,468 174 49,596
-------- ---------- -------- ---------
East Region 289 117,072 214 63,649
-------- ---------- -------- ---------
Total 1,637 $ 573,392 1,353 $ 385,829
======== ========== ======== =========
Six Months Ended
June 30, 2013 June 30, 2012
------------------- ------------------
Homes Value Homes Value
-------- ---------- -------- ---------
Homes Closed:
Arizona 443 $ 136,885 350 $ 93,671
California 525 215,460 245 83,827
Colorado 194 69,205 144 48,177
Nevada 37 8,655 17 3,289
-------- ---------- -------- ---------
West Region 1,199 430,205 756 228,964
-------- ---------- -------- ---------
Texas 803 207,675 756 173,395
-------- ---------- -------- ---------
Central Region 803 207,675 756 173,395
-------- ---------- -------- ---------
Carolinas 91 33,488 44 16,054
Florida 280 95,382 245 66,949
-------- ---------- -------- ---------
East Region 371 128,870 289 83,003
-------- ---------- -------- ---------
Total 2,373 $ 766,750 1,801 $ 485,362
======== ========== ======== =========
Homes Ordered:
Arizona 652 $ 203,391 509 $ 129,943
California 565 247,192 466 163,079
Colorado 262 110,073 178 59,087
Nevada 24 5,795 39 7,071
-------- ---------- -------- ---------
West Region 1,503 566,451 1,192 359,180
-------- ---------- -------- ---------
Texas 1,144 314,639 945 225,891
-------- ---------- -------- ---------
Central Region 1,144 314,639 945 225,891
-------- ---------- -------- ---------
Carolinas 146 58,490 73 26,132
Florida 391 154,215 287 82,955
-------- ---------- -------- ---------
East Region 537 212,705 360 109,087
-------- ---------- -------- ---------
Total 3,184 $1,093,795 2,497 $ 694,158
======== ========== ======== =========
Order Backlog:
Arizona 458 $ 147,322 317 $ 81,504
California 355 156,320 303 106,900
Colorado 210 90,957 104 34,403
Nevada 1 245 27 4,858
-------- ---------- -------- ---------
West Region 1,024 394,844 751 227,665
-------- ---------- -------- ---------
Texas 841 239,281 585 145,990
-------- ---------- -------- ---------
Central Region 841 239,281 585 145,990
-------- ---------- -------- ---------
Carolinas 104 42,343 53 18,694
Florida 314 129,843 222 65,301
-------- ---------- -------- ---------
East Region 418 172,186 275 83,995
-------- ---------- -------- ---------
Total 2,283 $ 806,311 1,611 $ 457,650
======== ========== ======== =========
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended
-------------------------------
June 30, 2013 June 30, 2012
--------------- ---------------
Beg. End Beg. End
------- ------- ------- -------
Active Communities:
Arizona 40 36 32 32
California 15 13 21 20
Colorado 11 12 8 8
Nevada - - 2 2
------- ------- ------- -------
West Region 66 61 63 62
------- ------- ------- -------
Texas 69 71 67 68
------- ------- ------- -------
Central Region 69 71 67 68
------- ------- ------- -------
Carolinas 11 13 4 5
Florida 22 20 16 16
------- ------- ------- -------
East Region 33 33 20 21
------- ------- ------- -------
Total 168 165 150 151
======= ======= ======= =======
Six Months Ended
-------------------------------
June 30, 2013 June 30, 2012
--------------- ---------------
Beg. End Beg. End
------- ------- ------- -------
Active Communities:
Arizona 38 36 37 32
California 17 13 20 20
Colorado 12 12 10 8
Nevada 1 - 2 2
------- ------- ------- -------
West Region 68 61 69 62
Texas 65 71 67 68
------- ------- ------- -------
Central Region 65 71 67 68
Carolinas 7 13 3 5
Florida 18 20 18 16
------- ------- ------- -------
East Region 25 33 21 21
------- ------- ------- -------
Total 158 165 157 151
======= ======= ======= =======
About Meritage Homes Corporation
Meritage Homes is the ninth-largest public homebuilder in the United States, based on 4,238 homes closed in 2012. Meritage builds and sells single-family homes for first-time, move-up, luxury and active adult buyers across the Western, Southern and Southeastern United States. As of June 30, 2013, the company had 165 actively selling communities in markets including Sacramento, San Francisco's East Bay, the Central Valley and Southern California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale and Tucson, Arizona; Nevada; Denver, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina.
Meritage has designed and built more than 75,000 homes in its 27-year history, and has a reputation for its distinctive style, quality construction, and positive customer experience. Meritage is the industry leader in energy efficient homebuilding and in 2013, Meritage received the U.S. Environmental Protection Agency's ENERGY STAR Partner of the Year for Sustained Excellence Award, for its innovation and industry leadership in energy efficient homebuilding. Meritage was the first national homebuilder to be 100 percent ENERGY STAR® qualified in every home it builds, and far exceeds ENERGY STAR standards today.
For more information, visit meritagehomes.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's plans to expand the Company's footprint and allocate capital to existing markets, and management's projected home closing revenue and earnings per diluted share for 2013.
Such statements are based upon the current beliefs and expectations of Company management, and current market conditions, which are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations.
Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. The risks and uncertainties include but are not limited to the following: weakness in the homebuilding market resulting from an unexpected setback in the current economic recovery; the availability of finished lots and undeveloped land; interest rates and changes in the availability and pricing of residential mortgages; the availability and cost of materials and labor; adverse changes in tax laws that benefit our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates and home prices in our markets; inflation in the cost of materials used to construct homes; the adverse effect of slower order absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; our potential exposure to natural disasters; competition; the adverse impacts of cancellations resulting from small deposits relating to our sales contracts; construction defect and home warranty claims; our success in prevailing on contested tax positions; our ability to preserve our deferred tax assets and use them within the statutory time limits; delays and risks associated with land development; our ability to obtain performance bonds in connection with our development work; the liquidity of our joint ventures and the ability of our joint venture partners to meet their obligations to us and the joint venture; the loss of key personnel; changes in or our failure to comply with laws and regulations; our lack of geographic diversification; fluctuations in quarterly operating results; our financial leverage and level of indebtedness; our ability to take certain actions because of restrictions contained in the indentures for our senior and senior subordinated notes and our ability to raise additional capital when and if needed; our credit ratings; successful integration of future acquisitions; government regulations and legislative or other initiatives that seek to restrain growth or new housing construction or similar measures; acts of war; the replication of our "Green" technologies by our competitors; our exposure to information technology failures and security breaches; and other factors identified in documents filed by the company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2012 under the caption "Risk Factors," which can be found on our website.
Contacts: Brent Anderson VP Investor Relations (972) 580-6360 (office) Brent.Anderson@meritagehomes.com
Source: Meritage Homes Corp.
Released July 24, 2013