Exhibit 99.1

 
 
 
 
 
FOR IMMEDIATE RELEASE
 
 
 
 
Contacts:
Brent Anderson, VP Investor Relations
 
 
 
 
(972) 580-6360 (office)
 
 
 
 
Brent.Anderson@meritagehomes.com

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, Ariz., July 24, 2013 (GLOBE NEWSWIRE) – 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
%




1



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.

2



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 an 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.


3



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.

4




Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended 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










5





Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
June 30, 2013
 
December 31, 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







6



Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):
 
    
 
 
Three Months Ended June 30,
 
Six Months Ended 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, 2013
 
December 31, 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
%
 

 

 



7



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.

8



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


9




 
 
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







10



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




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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.

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