Exhibit 99.1

 
 
 
 
 
FOR IMMEDIATE RELEASE
 
 
 
 
Contacts:
Brent Anderson, VP Investor Relations
 
 
 
 
(972) 580-6360 (office)
 
 
 
 
Brent.Anderson@meritagehomes.com
Meritage Homes Reports Strong Order Growth of 46% and Revenue Growth of 48%
for the Fourth Quarter 2012

SCOTTSDALE, Ariz., January 31, 2013 (GLOBE NEWSWIRE) – Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2012.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2012
 
2011
 
%Chg
 
2012
 
2011
 
%Chg
Homes closed (units)
 
1,240

 
894

 
39
%
 
4,238

 
3,268

 
30
%
Home closing revenue
 
$
364,118

 
$
245,730

 
48
%
 
$
1,184,360

 
$
860,884

 
38
%
Average sales price - closings
 
$
294

 
$
275

 
7
%
 
$
279

 
$
263

 
6
%
Home orders (units)
 
1,094

 
749

 
46
%
 
4,795

 
3,405

 
41
%
Home order value
 
$
353,862

 
$
206,061

 
72
%
 
$
1,414,772

 
$
907,922

 
56
%
Average sales price - orders
 
$
323

 
$
275

 
18
%
 
$
295

 
$
267

 
11
%
Ending backlog (units)
 
 
 
 
 
 
 
1,472

 
915

 
61
%
Ending backlog value
 
 
 
 
 
 
 
$
479,266

 
$
248,854

 
93
%
Average sales price - backlog
 
 
 
 
 
 
 
$
326

 
$
272

 
20
%
Net income/(loss)
 
$
95,128

 
$
(11,774
)
 
n/m

 
$
105,163

 
$
(21,106
)
 
n/m

Diluted EPS
 
$
2.49

 
$
(0.36
)
 
n/m

 
$
3.00

 
$
(0.65
)
 
n/m

Management comments
“We finished 2012 with another quarter of strong growth in orders, as year-over-year sales remained brisk through the end of the year, lessening the typical seasonal slowdown we would expect for the fourth quarter,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “We increased sales by ensuring that we had well-located land for new communities in high-demand areas, designing and introducing exciting new plans into most of our markets, and successfully demonstrating the benefits of our industry-leading energy efficient homes, which enabled us to capitalize on the general resurgence in new home demand throughout the year.
“Our strong order growth throughout 2012 drove Meritage's total orders for the year to their highest point since 2007, and translated into the highest annual pre-tax income we've generated since 2006,” said Mr. Hilton. “Net income of $95 million for the fourth quarter of 2012 was driven by increased home closings and revenue,

1


greater leverage of overhead expenses, lower interest expense and a $71.5 million net tax benefit. We earned $0.63 per diluted share for the quarter even before taking into account the net tax benefit from the reversal of most of our valuation allowance against our deferred tax assets. We expect to use the deferred tax asset to offset future income taxes.”
Mr. Hilton continued, “While 2012 was the second year of growth in U.S. new home sales since they bottomed in 2010, and the highest number of new homes were started since 2007, the absolute level of starts is still far below the historical average, indicating abundant opportunity for continued growth.
“Based on our expectations for additional growth, we invested approximately $480 million in land and development during the year, including the purchase of approximately 9,000 lots. We ended the year with about 20,800 total lots under control, up from about 16,700 lots at the end of 2011. Additionally, we have significantly higher backlog, total assets and stockholders' equity than we had at the end of 2011, with sufficient liquidity to grow as the housing market continues to recover.”
Fourth quarter 2012 operating results compared to 2011
•
Net income increased $106.9 million over 2011 to $95.1 million ($2.49 per diluted share) in the fourth quarter of 2012, compared to an $11.8 million loss ($0.36 per diluted share) in the prior year. 2012 results included $0.4 million of impairments and a net tax benefit of $71.5 million due to the reversal of most of the remaining deferred tax asset valuation allowance. Prior year results included $13.0 million of real estate-related impairments, primarily due to the wind down of operations in Las Vegas, and a $0.8 million loss from the sale of Meritage's only two golf courses.
•
Home closing revenue increased 48% due to a 39% increase in home closings and a 7% increase in average price over the prior year period. California, Texas and Florida accounted for the largest portion of the increase in total closing revenue. California more than doubled its fourth quarter closing revenue with a 117% increase over 2011.
•
Home orders increased 46%, and when combined with an 18% increase in average selling price that was primarily mix-driven, resulted in a 72% increase in total order value over the fourth quarter of 2011. The fourth quarter of 2012 was Meritage's seventh consecutive quarter of year-over-year growth in home orders, and the total of 1,094 homes ordered was higher than any fourth quarter since 2006. Average sales price for the fourth quarter increased to $323,000 from $275,000 in 2011.
•
Orders per average community during the fourth quarter increased 43% over the prior year to 7.0 from 4.9 in 2011, and reached their highest fourth quarter level since 2005. California achieved the highest orders per community for the quarter at 13.9; Colorado averaged 9.8; and Florida, 8.2.
•
Cancellation rate decreased to 13% in the fourth quarter of 2012, compared to 19% in the fourth quarter of 2011, reflecting a high quality backlog and greater confidence among buyers, supported by increasing prices and expectations of further home value appreciation.
•
Ending backlog of orders was up 61% over the prior year, and the total value of orders in backlog was up 93%, aided by a 20% increase in the average sales price per home.
•
Home closing gross profit increased 74% over the prior year, and home closing gross margin increased to 18.9% in the fourth quarter of 2012 compared to 16.0% in the fourth quarter of 2011. Margins increased primarily due to lower impairments and sales price increases, although sales price increases were largely offset by increases in various cost components. Excluding impairments from cost of sales, adjusted gross

2


margins in the fourth quarter were 19.0% in 2012 and 18.8% in 2011, and slightly higher sequentially than 18.7% in the third quarter of 2012.
•
Commissions and selling expenses decreased by 120 basis points from the prior year, to 7.4% of home closing revenue in the fourth quarter of 2012, compared to 8.6% of home closing revenue in the fourth quarter of 2011, as higher closing revenue resulted in greater leverage of the fixed components within selling costs.
•
General and administrative expenses for the fourth quarter of 2012 decreased by 230 basis points to 4.9% of total revenue in 2012, compared to 7.2% of total revenue in 2011.
•
Interest expense decreased to $5.5 million or 1.5% of revenue in the fourth quarter of 2012, compared to $7.4 million or 3.0% of revenue in the fourth quarter of 2011. A greater portion of interest incurred was capitalized to assets under development, and interest expense leverage improved with increased revenue.

Full year 2012 operating results compared to 2011
•
Net income of $105.2 million for the full year of 2012 included a $5.8 million loss on early extinguishment of debt and $2.0 million of impairments, in addition to an $8.7 million charge related to litigation accruals and a $76.3 million net tax benefit primarily due to the reversal of most of the deferred tax asset valuation allowance. By comparison, the $21.1 million loss for the full year of 2011 included $16.2 million of asset impairments, primarily due to $9.2 million of charges related to the wind down of the company's operations in Las Vegas, and a tax provision of $0.7 million.
•
Home closings and closing revenue increased 30% and 38%, respectively, for 2012 as compared to 2011.
•
2012 home closing gross margins improved by 130 basis points to 18.4%, primarily due to lower impairment charges, compared to 17.1% for 2011. Adjusted home closing gross margins excluding impairments were 18.5% in 2012 and 18.2% in 2011.
•
Net orders for the year increased 41% in 2012 over 2011, and combined with an 11% increase in average sales prices, resulted in total order value increasing 56% year over year.
Balance sheet
•
Cash and cash equivalents, restricted cash and securities at December 31, 2012, totaled $295.5 million, compared to $333.2 million at December 31, 2011, as Meritage invested in additional inventory , as well as land and development, to support future growth in orders.
•
During the fourth quarter of 2012, management determined that most of the deferred tax asset previously reserved was more likely than not to be used within the statutory time limits, and that $79.9 million of the company's deferred tax valuation allowance should accordingly be reversed. $8.4 million of the $79.9 million was used for federal and state taxes in the fourth quarter of 2012, resulting in a net tax benefit of $71.5 million for the quarter. At year-end, deferred tax assets totaled $78.0 million net of $8.7 million of valuation allowances.
•
Real estate assets increased by $297.8 million for the year 2012, ending at $1.1 billion at December 31, 2012, compared to $815.4 million at December 31, 2011, funded by cash on hand and approximately $209 million of additional capital raised during the year.

3


•
Meritage ended the quarter with approximately 20,800 total lots under control, of which 84% were owned, compared to approximately 16,700 at December 31, 2011, a net increase of approximately 4,100 lots during the year.
•
Net debt-to-capital ratio at December 31, 2012 was 38.1%, compared to 35.8% at December 31, 2011.

Conference call
Management will host a conference call today to discuss the Company's results at 10:30 a.m. Eastern Time (7:30 a.m. Pacific 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 877-317-6789 and the conference number is 10023382. Participants are encouraged to dial in five minutes before the call begins. A replay of the call will be available for fifteen days, beginning at 12:00 p.m. ET on January 31, 2013 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10023382. For more information, visit meritagehomes.com.





4



Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2012
 
2011
 
2012
 
2011
Operating results
 
 
 
 
 
 
 
 
Home closing revenue
 
$
364,118

 
$
245,730

 
$
1,184,360

 
$
860,884

Land closing revenue
 
468

 
260

 
9,314

 
360

Total closing revenue
 
364,586

 
245,990

 
1,193,674

 
861,244

Home closing gross profit
 
68,763

 
39,411

 
217,976

 
147,448

Land closing gross profit/(loss)
 
210

 
(6,222
)
 
223

 
(6,340
)
Total closing gross profit
 
68,973

 
33,189

 
218,199

 
141,108

Commissions and other sales costs
 
(26,883
)
 
(21,036
)
 
(94,833
)
 
(74,912
)
General and administrative expenses
 
(17,739
)
 
(17,602
)
 
(68,185
)
 
(64,184
)
Interest expense
 
(5,526
)
 
(7,363
)
 
(24,244
)
 
(30,399
)
Loss on extinguishment of debt
 
—

 
—

 
(5,772
)
 
—

Other income, net (1)
 
4,775

 
1,208

 
3,689

 
8,011

Income/(loss) before income taxes
 
23,600

 
(11,604
)
 
28,854

 
(20,376
)
Benefit from/(provision for) income taxes
 
71,528

 
(170
)
 
76,309

 
(730
)
Net income/(loss)
 
$
95,128

 
$
(11,774
)
 
$
105,163

 
$
(21,106
)
Income/(loss) per share
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
Income/(loss) per share
 
$
2.67

 
$
(0.36
)
 
$
3.09

 
$
(0.65
)
Weighted average shares outstanding
 
35,595

 
32,452

 
34,057

 
32,382

Diluted:
 
 
 
 
 
 
 
 
Income/(loss) per share
 
$
2.49

 
$
(0.36
)
 
$
3.00

 
$
(0.65
)
Weighted average shares outstanding
 
38,308

 
32,452

 
35,172

 
32,382

Non-GAAP Reconciliations:
 
 
 
 
 
 
 
 
Home closing gross profit
 
$
68,763

 
$
39,411

 
$
217,976

 
$
147,448

Add: Real estate-related impairments
 
436

 
6,696

 
1,340

 
8,870

Adjusted home closing gross profit
 
$
69,199

 
$
46,107

 
$
219,316

 
$
156,318

Income/(loss) before income taxes
 
$
23,600

 
$
(11,604
)
 
$
28,854

 
$
(20,376
)
Add Real estate-related impairments:
 
 
 
 
 
 
 
 
Terminated lot options and land sales
 
—

 
8,994

 
1,015

 
9,221

Impaired projects
 
436

 
4,029

 
994

 
6,103

Fixed asset impairment
 
—

 
848

 
—

 
848

Increase in litigation reserve (1)
 
—

 
—

 
8,720

 
—

Loss on early extinguishment of debt
 
—

 
—

 
5,772

 
—

Adjusted income/(loss) before income taxes
 
$
24,036

 
$
2,267

 
$
45,355

 
$
(4,204
)

(1) Other income, net for the full year 2012 includes an $8.7 million charge to increase litigation reserves.








5



Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
December 31, 2012
 
December 31, 2011
Assets:
 
 
 
 
Cash and cash equivalents
 
$
170,457

 
$
173,612

Investments and securities
 
86,074

 
147,429

Restricted cash
 
38,938

 
12,146

Other receivables
 
20,290

 
14,932

Real estate (2)
 
1,113,187

 
815,425

Deposits on real estate under option or contract
 
14,351

 
15,208

Investments in unconsolidated entities
 
12,085

 
11,088

Deferred tax assets, net
 
77,974

 
—

Other assets
 
42,206

 
31,538

Total assets
 
$
1,575,562

 
$
1,221,378

Liabilities and Equity:
 
 
 
 
Accounts payable, accrued liabilities, home sale deposits and other liabilities
 
$
158,555

 
$
126,057

Senior notes
 
496,472

 
480,534

Convertible senior notes
 
126,500

 
—

Senior subordinated notes
 
99,825

 
125,875

Total liabilities
 
881,352

 
732,466

Total stockholders’ equity
 
694,210

 
488,912

Total liabilities and equity
 
$
1,575,562

 
$
1,221,378

(2) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
192,948

 
$
101,445

Unsold homes, completed and under construction
 
107,466

 
97,246

Model homes
 
62,411

 
49,892

Finished home sites and home sites under development
 
634,106

 
441,242

Land held for development
 
56,118

 
55,143

Land held for sale
 
21,650

 
29,908

Communities in mothball status
 
38,488

 
40,549

Total allocated costs
 
$
1,113,187

 
$
815,425

















6


Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2012
 
2011
 
2012
 
2011
Depreciation and amortization
 
$
2,283

 
$
1,911

 
$
8,196

 
$
7,178

 
 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
 
Capitalized interest, beginning of period
 
$
20,185

 
$
14,115

 
$
14,810

 
$
11,679

Interest incurred
 
12,316

 
10,848

 
46,135

 
43,393

Interest expensed
 
(5,526
)
 
(7,363
)
 
(24,244
)
 
(30,399
)
Interest amortized to cost of home, land closings and impairments
 
(5,375
)
 
(2,790
)
 
(15,101
)
 
(9,863
)
Capitalized interest, end of period
 
$
21,600

 
$
14,810

 
$
21,600

 
$
14,810

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
2011
Notes payable and other borrowings
 
 
 
 
 
$
722,797

 
$
606,409

Less: cash and cash equivalents, restricted cash, and investments and securities
 
 
 
 
 
(295,469
)
 
(333,187
)
Net debt
 
 
 
 
 
427,328

 
273,222

Stockholders’ equity
 
 
 
 
 
694,210

 
488,912

Total capital
 
 
 
 
 
$
1,121,538

 
$
762,134

Net debt-to-capital
 
 
 
 
 
38.1
%
 
35.8
%
 

7





Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2012
 
2011
 
2012
 
2011
Operating results
 
 
 
 
 
 
 
 
Net income/(loss)
 
$
95,128

 
$
(11,774
)
 
$
105,163

 
$
(21,106
)
Loss on early extinguishment of debt
 
—

 
—

 
5,772

 
—

Real-estate related impairments
 
436

 
13,023

 
2,009

 
15,324

Deferred tax valuation benefit
 
(70,265
)
 
—

 
(77,974
)
 
—

Equity in earnings from JVs and distributions of JV earnings—net
 
(77
)
 
(30
)
 
(585
)
 
648

Increase in real estate and deposits, net
 
(110,044
)
 
(31,851
)
 
(298,361
)
 
(95,697
)
Other operating activities
 
(3,413
)
 
7,709

 
43,489

 
26,695

Net cash used in operating activities
 
(88,235
)
 
(22,923
)
 
(220,487
)
 
(74,136
)
Net cash (used in)/provided by investing activities
 
(46,900
)
 
38,649

 
23,844

 
141,182

Proceeds from issuance of new debt
 
—

 
—

 
426,500

 
—

Debt issuance costs
 
188

 
—

 
(9,312
)
 
—

Repayments of senior notes
 
—

 
—

 
(315,080
)
 
—

Net proceeds from issuance of common stock
 
—

 
—

 
87,113

 
—

Proceeds from stock option exercises and other
 
355

 
782

 
4,267

 
2,613

Net cash provided by financing activities
 
543

 
782

 
193,488

 
2,613

Net (decrease)/increase in cash
 
(134,592
)
 
16,508

 
(3,155
)
 
69,659

Beginning cash and cash equivalents
 
305,049

 
157,104

 
173,612

 
103,953

Ending cash and cash equivalents (3)
 
$
170,457

 
$
173,612

 
$
170,457

 
$
173,612

 
(3) Ending cash and cash equivalents as of December 31, 2012 and December 31, 2011 excludes investments and securities and restricted cash totaling $125 million and $160 million, respectively.




8


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
Three Months Ended
 
 
December 31, 2012
 
December 31, 2011
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
232

 
$
67,910

 
176

 
$
50,028

California
 
243

 
91,813

 
127

 
42,389

Colorado
 
65

 
20,991

 
83

 
27,338

Nevada
 
22

 
4,042

 
10

 
2,233

West Region
 
562

 
184,756

 
396

 
121,988

Texas
 
465

 
113,206

 
391

 
92,742

Central Region
 
465

 
113,206

 
391

 
92,742

Carolinas
 
33

 
11,375

 
—

 
—

Florida
 
180

 
54,781

 
107

 
31,000

East Region
 
213

 
66,156

 
107

 
31,000

Total
 
1,240

 
$
364,118

 
894

 
$
245,730

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
178

 
$
56,426

 
128

 
$
34,918

California
 
251

 
103,275

 
99

 
33,813

Colorado
 
98

 
35,391

 
55

 
18,279

Nevada
 
9

 
2,018

 
1

 
228

West Region
 
536

 
197,110

 
283

 
87,238

Texas
 
389

 
97,458

 
341

 
80,279

Central Region
 
389

 
97,458

 
341

 
80,279

Carolinas
 
33

 
11,772

 
24

 
8,616

Florida
 
136

 
47,522

 
101

 
29,928

East Region
 
169

 
59,294

 
125

 
38,544

Total
 
1,094

 
$
353,862

 
749

 
$
206,061



















9


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
Twelve Months Ended
 
 
December 31, 2012
 
December 31, 2011
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
825

 
$
221,100

 
594

 
$
150,258

California
 
732

 
264,388

 
355

 
120,319

Colorado
 
292

 
96,807

 
258

 
83,095

Nevada
 
61

 
11,444

 
59

 
12,593

West Region
 
1,910

 
593,739

 
1,266

 
366,265

Texas
 
1,655

 
390,642

 
1,660

 
395,278

Central Region
 
1,655

 
390,642

 
1,660

 
395,278

Carolinas
 
117

 
41,888

 
—

 
—

Florida
 
556

 
158,091

 
342

 
99,341

East Region
 
673

 
199,979

 
342

 
99,341

Total
 
4,238

 
$
1,184,360

 
3,268

 
$
860,884

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
916

 
$
256,684

 
627

 
$
163,510

California
 
965

 
361,328

 
392

 
132,672

Colorado
 
364

 
123,403

 
276

 
89,624

Nevada
 
70

 
13,473

 
52

 
11,300

West Region
 
2,315

 
754,888

 
1,347

 
397,106

Texas
 
1,759

 
429,465

 
1,593

 
377,165

Central Region
 
1,759

 
429,465

 
1,593

 
377,165

Carolinas
 
142

 
50,613

 
24

 
8,616

Florida
 
579

 
179,806

 
441

 
125,035

East Region
 
721

 
230,419

 
465

 
133,651

Total
 
4,795

 
$
1,414,772

 
3,405

 
$
907,922

Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
249

 
$
80,816

 
158

 
$
45,232

California
 
315

 
124,588

 
82

 
27,648

Colorado
 
142

 
50,089

 
70

 
23,493

Nevada
 
14

 
3,105

 
5

 
1,076

West Region
 
720

 
258,598

 
315

 
97,449

Texas
 
500

 
132,317

 
396

 
93,494

Central Region
 
500

 
132,317

 
396

 
93,494

Carolinas
 
49

 
17,341

 
24

 
8,616

Florida
 
203

 
71,010

 
180

 
49,295

East Region
 
252

 
88,351

 
204

 
57,911

Total
 
1,472

 
$
479,266

 
915

 
$
248,854








10


Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
Three Months Ended
 
 
December 31, 2012
 
December 31, 2011
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
34

 
38

 
37

 
37

California
 
19

 
17

 
22

 
20

Colorado
 
8

 
12

 
9

 
10

Nevada
 
2

 
1

 
3

 
2

West Region
 
63

 
68

 
71

 
69

Texas
 
68

 
65

 
65

 
67

Central Region
 
68

 
65

 
65

 
67

Carolinas
 
7

 
7

 
—

 
3

Florida
 
15

 
18

 
13

 
18

East Region
 
22

 
25

 
13

 
21

Total
 
153

 
158

 
149

 
157

 
 
 
Twelve Months Ended
 
 
December 31, 2012
 
December 31, 2011
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
37

 
38

 
32

 
37

California
 
20

 
17

 
14

 
20

Colorado
 
10

 
12

 
9

 
10

Nevada
 
2

 
1

 
4

 
2

West Region
 
69

 
68

 
59

 
69

Texas
 
67

 
65

 
82

 
67

Central Region
 
67

 
65

 
82

 
67

Carolinas
 
3

 
7

 
—

 
3

Florida
 
18

 
18

 
10

 
18

East Region
 
21

 
25

 
10

 
21

Total
 
157

 
158

 
151

 
157





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About Meritage Homes Corporation
Meritage Homes is the ninth-largest public homebuilder in the United States based on homes closed in 2011. Meritage builds a variety of homes across the Southern and Western states to appeal to a wide range of buyers, including first-time, move-up, luxury and active adults. As of December 31, 2012, the company had 158 actively selling communities in 15 metropolitan areas, including Northern California, East Bay/Central Valley and Southern California, Houston, Dallas/Ft. Worth, Austin, San Antonio, Phoenix/Scottsdale, Tucson, Las Vegas, Denver, Orlando, Tampa and Raleigh-Durham. In 2012, Meritage also announced its entry into the Charlotte market.

Meritage is an industry leader in innovation and energy efficiency. Meritage was the first national homebuilder to be 100 percent ENERGY STAR® qualified in every home it builds, and far exceeds ENERGY STAR standards in most of its communities. 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.


For more information, visit meritagehomes.com.
The Meritage Homes Corporation logo is available at
http://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 those regarding the Company's expectations for a continued recovery in the homebuilding industry and for the company's additional growth, the sufficiency of its liquidity to support future growth, as well as the company's ability to use its deferred tax asset to offset future income taxes within the statutory periods, all of which are subject to significant risks and uncertainties. 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; 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; 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; the availability of finished lots and undeveloped land; our potential exposure to natural disasters; 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; the adverse impacts of cancellations resulting from small deposits relating to our sales contracts; construction defect and home warranty claims; the uncertainty of litigation; our success in prevailing on contested tax positions; our ability to preserve our deferred tax assets and use them within the statutory time limits; 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; 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; 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, 2011 and most recent 10-Q under the caption “Risk Factors,” which can be found on our website.
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