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 Third Quarter of 2013
 
Diluted EPS of $0.99 on 44% Increase in Home Closing Revenue

SCOTTSDALE, Ariz., October 23, 2013 (GLOBE NEWSWIRE) – Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced its third quarter results for the period ended September 30, 2013.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
    
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
 
2013
 
2012
 
%Chg
 
2013
 
2012
 
%Chg
Homes closed (units)
 
1,418

 
1,197

 
18
%
 
3,791

 
2,998

 
26
%
Home closing revenue
 
$
483,147

 
$
334,880

 
44
%
 
$
1,249,897

 
$
820,242

 
52
%
Average sales price - closings
 
$
341

 
$
280

 
22
%
 
$
330

 
$
274

 
20
%
Home orders (units)
 
1,300

 
1,204

 
8
%
 
4,484

 
3,701

 
21
%
Home order value
 
$
473,924

 
$
366,752

 
29
%
 
$
1,567,719

 
$
1,060,910

 
48
%
Average sales price - orders
 
$
365

 
$
305

 
20
%
 
$
350

 
$
287

 
22
%
Ending backlog (units)
 
 
 
 
 


 
2,190

 
1,618

 
35
%
Ending backlog value
 
 
 
 
 


 
$
805,580

 
$
489,522

 
65
%
Average sales price - backlog
 


 


 


 
$
368

 
$
303

 
22
%
Net earnings
 
$
38,191

 
$
6,784

 
463
%
 
$
78,375

 
$
10,035

 
681
%
Diluted EPS
 
$
0.99

 
$
0.19

 
421
%
 
$
2.05

 
$
0.30

 
583
%




1



MANAGEMENT COMMENTS
We are pleased with the strong operating results we achieved again this quarter, including our highest level of home closings and closing revenue in the last five years, and our highest gross margin in more than seven years, with a 44% increase in home closing revenue and a 420 basis point improvement in home closing gross margin,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “We are focused on delivering earnings growth by leveraging our operating structure in addition to growing our top line. This was our seventh consecutive quarter in which we increased net earnings year-over-year.
“The pace of sales per community slowed somewhat in the third quarter, reflecting the effects of home price inflation over the past year and the increase in interest rates we experienced just before and during the seasonally slower summer months, resulting in an 8% year-over-year increase in orders,” explained Mr. Hilton. "Since the underlying demand drivers remain solidly positive amidst a shortage of homes on the market, we are confident that the housing market can continue to grow for the foreseeable future, though maybe not at the same rate we enjoyed last year and earlier this year.
“We strategically expanded into another new market this quarter with our acquisition of Phillips Builders in the Nashville market, which we plan to grow significantly over the next several years. We acquired 500 lots with that acquisition and also contracted for an additional 3,700 new lots during the quarter to add new communities and support sales growth,” continued Mr. Hilton. “Evidencing our confidence in the long-term demand for housing, we are continuing to evaluate additional opportunities to enter new markets while we expand within our existing markets.”
STRONG EARNINGS GROWTH
Net earnings increased $31.4 million or 463% over 2012 to $38.2 million ($0.99 per diluted share) in the third quarter of 2013, as compared to net earnings of $6.8 million ($0.19 per diluted share) in the third quarter of 2012. The increase in 2013 earnings was primarily due to higher home closing revenue and gross margins, coupled with overhead expense leverage. Prior year results also included an $8.7 million charge related to litigation surrounding a Nevada joint venture. The 2013 results included a tax provision of $18.6 million, compared to $0.2 million in the prior year.
Home closing revenue increased 44% due to the combination of an 18% increase in home closings and a 22% increase in average sales price over the prior year period. All regions grew home closings, revenue and average prices over the prior year. This was the eighth consecutive quarter of year-over-year growth in home closing revenue, and the highest level of home closings by Meritage since the fourth quarter of 2008.
Home closing gross margin increased to 22.8% in the third quarter of 2013, a year-over-year improvement of 420 basis points compared to 18.6% in the third quarter of 2012, and a sequential improvement of 130 basis points compared to a 21.5% home closing gross margin in the second quarter of 2013. It is the highest gross margin Meritage has produced since the second quarter of 2006. The significant margin growth reflects both home price appreciation and effective management of construction costs.
Commissions and other sales costs in the third quarter improved 80 basis points on higher closing volumes, decreasing to 6.9% of home closing revenue in 2013 from 7.7% in 2012.

2



General and administrative expenses declined to 5.0% of total third quarter closing revenue in 2013, from 5.6% in 2012, due to operating leverage. The majority of the $5.2 million increase over last year was the result of additional hiring and compensation expense.
Interest expense decreased to $3.5 million or 0.7% of closing revenue in the third quarter of 2013, compared to $5.0 million or 1.5% of closing revenue in the third quarter of 2012, as a greater portion of interest incurred was capitalized.
Pre-tax earnings margin increased 950 basis points to 11.5% in the third quarter of 2013, compared to 2.0% in the prior year.
CONTINUED ORDER GROWTH
Total order value grew 29% over the third quarter of 2012 due to the combination of an 8% increase in orders and a 20% increase in the average selling price of homes ordered. Total order value and backlog grew in each of Meritage's active markets except California, where the pace of orders moderated as prices were increased. The average sales price on orders of approximately $365,000 was the highest for Meritage in more than eight years, reflecting the combination of a greater portion of orders in higher-priced communities and states, in addition to home price appreciation.
Meritage added 14 net new communities during the third quarter of 2013, including three from the Nashville acquisition, and ended the quarter with 179 total active communities, a 17% increase year over year from 153 at September 30, 2012.
Average orders per active community during the third quarter was 7.6 in 2013 compared to 7.9 in 2012. The average reflects an increase of 21% in Texas over the third quarter of 2012, while California, Florida and Colorado sold the most homes per average community, at 10.6, 9.1 and 8.0, respectively.
Order cancellation rates remained historically low at 14% for the third quarter of 2013 compared to 13% in the third quarter of 2012.
Ending backlog value increased 65% over the third quarter of 2012, combining a 22% increase in average price with 35% growth of orders in backlog. The Carolinas and Colorado grew backlog value by 177% and 158%, respectively, while Florida and Texas each grew backlog value by 76% over the prior year.
YEAR TO DATE RESULTS
Net earnings of $78.4 million for the first nine months of 2013 included a $3.8 million loss on early extinguishment of debt and a tax provision of $33.4 million, compared to net earnings of $10.0 million for the first nine months of 2012, which included a $5.8 million loss on early extinguishment of debt and a $4.8 million tax benefit, in addition to the $8.7 million charge related to the Nevada joint venture litigation.
Home closings and closing revenue for the first nine months of the year increased 26% and 52%, respectively, for 2013 over 2012, reflecting a 20% increase in the average sales price of closings.
Year-to-date home closing gross margin improved by 330 basis points to 21.5% for 2013, compared to 18.2% for 2012.
Total year-to-date selling, general and administrative expenses decreased 200 basis points to 12.3% of total closing revenue in 2013 compared to 14.3% in 2012, reflecting increased operating leverage.
Year-to-date net orders through September 30 increased 21% in 2013 over 2012, and in combination with a 22% increase in average sales price, drove a 48% increase in total order value year over year.

3




BALANCE SHEET STRENGTH
Cash and cash equivalents, restricted cash and securities at September 30, 2013 increased to a total of $311.3 million, compared to $295.5 million at December 31, 2012.
Meritage spent approximately $166.7 million on land acquisition and development in the third quarter of 2013, and contracted for approximately 3,700 new lots in addition to 500 lots added with the Phillips Builders acquisition.
Total lot supply at September 30, 2013 was approximately 25,000 lots, equating to approximately 5.0 years supply based on trailing twelve months' closings, compared to approximately 17,800 lots at September 30, 2012, the equivalent of 4.6 years supply. Approximately 71% of the September 30, 2013 lot supply was owned.
Of the 29% of lots controlled under option and purchase contracts as of September 30, 2013, approximately 1,350 lots were secured through land bank arrangements in 2013. The total finished lot purchase price of these lots owned by land bankers is approximately $127 million. Meritage has the option to purchase these lots over time, which reduces the Company's initial cash outlays for these lot positions.
Total real estate assets increased to $1.3 billion at September 30, 2013, compared to $1.0 billion a year ago and $1.1 billion at the beginning of 2013.
Stockholders’ equity increased by 14% or $98.1 million year-to-date in 2013, ending at $792.3 million as of September 30, 2013, compared to $694.2 million at December 31, 2012.
Net debt-to-capital ratio remained at 38.1% as of September 30, 2013, consistent with December 31, 2012, and the Company had no borrowings against its $135 million revolving credit facility.

SUMMARY
The recovery in the housing market that began last year drove strong sales growth and price appreciation through the middle of this year, until buyers reacted to successive price increases and higher interest rates by pausing their purchasing decisions, thereby moderating the demand for new homes, explained Steve Hilton. In some ways, the slower pace of sales seen in the third quarter is healthy for the market, allowing subcontractors and suppliers to catch up before the next spring selling season, and taking some upward pressure off costs.
Meritage is well positioned with highly desirable locations and distinctive, energy-efficient homes in many of the best housing markets in the country, which have produced some of the best sales and earnings strength during the recovery to date, he continued. We now control all of the lots we need to satisfy our projected closings through 2014 and approximately 85% of our projected 2015 closings. Our growth strategy and operating leverage should enable us to continue to drive earnings growth throughout this next housing cycle.
“Based on our reported results year to date and assuming continued strength in our markets, we have revised our models and are projecting home closing revenue of approximately $1.8 billion for 2013, with projected earnings per diluted share in the range of $2.95-$3.05 for the year.



4



CONFERENCE CALL
Management will host a conference call today to discuss the Company's third 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 registration link: http://dpregister.com/10034963.
Telephone participants who are unable to pre-register may dial in to 888-317-6016 on the day of the call. International dial-in number is 1-412-317-6016.
A replay of the call will be available for fifteen days, beginning at 12:30 p.m. ET on October 23, 2013 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10030804. For more information, visit meritagehomes.com.


5




Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
 
 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
 
 
2013
 
2012
 
2013
 
2012
Homebuilding:
 
 
 
 
 
 
 
 
 
Home closing revenue
 
$
483,147

 
$
334,880

 
$
1,249,897

 
$
820,242

 
Land closing revenue
 
8,933

 
7,763

 
28,568

 
8,846

 
Total closing revenue
 
492,080

 
342,643

 
1,278,465

 
829,088

 
Cost of home closings
 
(372,772
)
 
(272,726
)
 
(981,557
)
 
(671,029
)
 
Cost of land closings
 
(6,126
)
 
(7,493
)
 
(24,139
)
 
(8,833
)
 
Total cost of closings
 
(378,898
)
 
(280,219
)
 
(1,005,696
)
 
(679,862
)
 
Home closing gross profit
 
110,375

 
62,154

 
268,340

 
149,213

 
Land closing gross profit
 
2,807

 
270

 
4,429

 
13

 
Total closing gross profit
 
113,182

 
62,424

 
272,769

 
149,226

Financial Services:
 
 
 
 
 
 
 
 
 
Revenue
 
1,684

 
253

 
3,960

 
253

 
Expense
 
(901
)
 
(317
)
 
(2,229
)
 
(484
)
 
Earnings from financial services unconsolidated entities and other, net
 
3,511

 
3,049

 
9,784

 
6,974

 
Financial services profit
 
4,294

 
2,985

 
11,515

 
6,743

Commissions and other sales costs
 
(33,467
)
 
(25,855
)
 
(90,526
)
 
(67,950
)
General and administrative expenses
 
(24,412
)
 
(19,209
)
 
(66,587
)
 
(50,446
)
Earnings/(loss) from other unconsolidated entities, net
 
46

 
(74
)
 
(229
)
 
(348
)
Interest expense
 
(3,462
)
 
(5,009
)
 
(13,113
)
 
(18,718
)
Other income/(expense), net
 
605

 
(8,276
)
 
1,760

 
(7,481
)
Loss on early extinguishment of debt
 

 

 
(3,796
)
 
(5,772
)
Earnings before income taxes
 
56,786

 
6,986

 
111,793

 
5,254

(Provision for)/benefit from income taxes
 
(18,595
)
 
(202
)
 
(33,418
)
 
4,781

Net earnings
 
$
38,191

 
$
6,784

 
$
78,375

 
$
10,035

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.05

 
$
0.19

 
$
2.17

 
$
0.30

 
Weighted average shares outstanding
 
36,226

 
35,216

 
36,060

 
33,541

 
Diluted
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
0.99

 
$
0.19

 
$
2.05

 
$
0.30

 
Weighted average shares outstanding
 
38,865

 
35,761

 
38,771

 
34,010









6





Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
September 30, 2013
 
December 31, 2012
Assets:
 
 
 
 
Cash and cash equivalents
 
$
177,584

 
$
170,457

Investments and securities
 
92,846

 
86,074

Restricted cash
 
40,904

 
38,938

Other receivables
 
35,711

 
20,290

Real estate (1)
 
1,345,214

 
1,113,187

Real estate not owned
 
481

 

Deposits on real estate under option or contract
 
34,911

 
14,351

Investments in unconsolidated entities
 
10,662

 
12,085

Property and equipment, net
 
18,690

 
15,718

Deferred tax asset
 
80,390

 
77,974

Prepaid expenses and other assets
 
36,693

 
26,488

Total assets
 
$
1,874,086

 
$
1,575,562

Liabilities:
 
 
 
 
Accounts payable
 
$
76,647

 
$
49,801

Accrued liabilities
 
178,247

 
96,377

Home sale deposits
 
28,183

 
12,377

Liabilities related to real estate not owned
 
346



Senior, senior subordinated, convertible senior notes and other borrowings
 
798,337

 
722,797

Total liabilities
 
1,081,760

 
881,352

Stockholders' Equity:
 
 
 
 
Preferred stock, par value $0.01
 

 

Common stock, par value $0.01
 
362

 
356

Additional paid-in capital
 
409,984

 
390,249

Retained earnings
 
381,980

 
303,605

Total stockholders’ equity
 
792,326

 
694,210

Total liabilities and stockholders’ equity
 
$
1,874,086

 
$
1,575,562

(1) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
316,508

 
$
192,948

Unsold homes, completed and under construction
 
123,602

 
107,466

Model homes
 
78,017

 
62,411

Finished home sites and home sites under development
 
721,492

 
634,106

Land held for development
 
53,053

 
56,118

Land held for sale
 
19,630

 
21,650

Communities in mothball status
 
32,912

 
38,488

Total real estate
 
$
1,345,214

 
$
1,113,187







7



Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):
 
    
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
 
2013
 
2012
 
2013
 
2012
Depreciation and amortization
 
$
2,511

 
$
2,299

 
$
7,169

 
$
5,913

 
 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
 
Capitalized interest, beginning of period
 
$
26,294

 
$
17,836

 
$
21,600

 
$
14,810

Interest incurred
 
12,508

 
11,654

 
37,876

 
33,819

Interest expensed
 
(3,462
)
 
(5,009
)
 
(13,113
)
 
(18,718
)
Interest amortized to cost of home, land closings and impairments
 
(6,342
)
 
(4,296
)
 
(17,365
)
 
(9,726
)
Capitalized interest, end of period
 
$
28,998

 
$
20,185

 
$
28,998

 
$
20,185

 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
December 31, 2012
 
 
 
 
Notes payable and other borrowings
 
$
798,337

 
$
722,797

 
 
 
 
Less: cash and cash equivalents, restricted cash, and investments and securities
 
(311,334
)
 
(295,469
)
 
 
 
 
Net debt
 
487,003

 
427,328

 
 
 
 
Stockholders’ equity
 
792,326

 
694,210

 
 
 
 
Total capital
 
$
1,279,329

 
$
1,121,538

 
 
 
 
Net debt-to-capital
 
38.1
%
 
38.1
%
 

 

 



8



Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands) (unaudited)
 
 
Nine Months Ended September 30
 
 
2013
 
2012
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
78,375

 
$
10,035

Adjustments to reconcile net earnings to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
7,169

 
5,913

Stock-based compensation
 
7,040

 
6,095

Loss on early extinguishment of debt
 
3,796

 
5,772

Excess income tax benefit from stock-based awards
 
(1,733
)
 

Equity in earnings from unconsolidated entities
 
(9,555
)
 
(6,626
)
Deferred tax asset valuation benefit
 
(4,614
)
 
(7,709
)
Distribution of earnings from unconsolidated entities
 
10,796

 
6,118

Other
 
3,071

 
1,976

Changes in assets and liabilities:
 
 
 
 
Increase in real estate
 
(221,668
)
 
(190,509
)
(Increase)/decrease in deposits on real estate under option or contract
 
(20,425
)
 
2,192

Increase in receivables and prepaid expenses and other assets
 
(14,224
)
 
(1,882
)
Increase in accounts payable and accrued liabilities
 
106,862

 
31,204

Increase in home sale deposits
 
15,584

 
5,169

Net cash used in operating activities
 
(39,526
)
 
(132,252
)
Cash flows from investing activities:
 
 
 
 
Purchases of property and equipment
 
(9,717
)
 
(7,139
)
Maturities of investments and securities
 
132,900

 
190,701

Payments to purchase investments and securities
 
(139,672
)
 
(109,798
)
Other
 
(20,334
)
 
(3,020
)
Net cash (used in)/provided by investing activities
 
(36,823
)
 
70,744

Cash flows from financing activities:
 
 
 
 
Repayments of senior and senior subordinated notes
 
(102,822
)
 
(315,080
)
Proceeds from issuance of senior notes
 
175,000

 
426,500

Proceeds from sale of common stock, net
 

 
87,125

Other
 
11,298

 
(5,600
)
Net cash provided by financing activities
 
83,476

 
192,945

Net increase in cash and cash equivalents
 
7,127

 
131,437

Beginning cash and cash equivalents
 
170,457

 
173,612

Ending cash and cash equivalents (2)
 
$
177,584

 
$
305,049

 (2) Ending cash and cash equivalents as of September 30, 2013 and September 30, 2012 excludes investments and securities and restricted cash totaling $134 million and $82 million, respectively.

9



Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
Three Months Ended
 
 
September 30, 2013
 
September 30, 2012
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
301

 
$
96,562

 
243

 
$
59,519

California
 
259

 
113,954

 
244

 
88,748

Colorado
 
104

 
43,033

 
83

 
27,639

Nevada
 
1

 
245

 
22

 
4,113

West Region
 
665

 
253,794

 
592

 
180,019

Texas
 
509

 
136,249

 
434

 
104,041

Central Region
 
509

 
136,249

 
434

 
104,041

Carolinas
 
62

 
24,361

 
40

 
14,459

Florida
 
176

 
66,464

 
131

 
36,361

Tennessee
 
6

 
2,279

 

 

East Region
 
244

 
93,104

 
171

 
50,820

Total
 
1,418

 
$
483,147

 
1,197

 
$
334,880

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
234

 
$
80,748

 
229

 
$
70,315

California
 
165

 
84,741

 
248

 
94,974

Colorado
 
96

 
44,178

 
88

 
28,925

Nevada
 

 

 
22

 
4,384

West Region
 
495

 
209,667

 
587

 
198,598

Texas
 
545

 
157,868

 
425

 
106,116

Central Region
 
545

 
157,868

 
425

 
106,116

Carolinas
 
72

 
28,971

 
36

 
12,709

Florida
 
177

 
74,312

 
156

 
49,329

Tennessee
 
11

 
3,106

 

 

East Region
 
260

 
106,389

 
192

 
62,038

Total
 
1,300

 
$
473,924

 
1,204

 
$
366,752


10




 
 
Nine Months Ended
 
 
September 30, 2013
 
September 30, 2012
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
744

 
$
233,447

 
593

 
$
153,190

California
 
784

 
329,414

 
489

 
172,575

Colorado
 
298

 
112,238

 
227

 
75,816

Nevada
 
38

 
8,900

 
39

 
7,402

West Region
 
1,864

 
683,999

 
1,348

 
408,983

Texas
 
1,312

 
343,924

 
1,190

 
277,436

Central Region
 
1,312

 
343,924

 
1,190

 
277,436

Carolinas
 
153

 
57,849

 
84

 
30,513

Florida
 
456

 
161,846

 
376

 
103,310

Tennessee
 
6

 
2,279

 

 

East Region
 
615

 
221,974

 
460

 
133,823

Total
 
3,791

 
$
1,249,897

 
2,998

 
$
820,242

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
886

 
$
284,139

 
738

 
$
200,258

California
 
730

 
331,933

 
714

 
258,053

Colorado
 
358

 
154,251

 
266

 
88,012

Nevada
 
24

 
5,795

 
61

 
11,455

West Region
 
1,998

 
776,118

 
1,779

 
557,778

Texas
 
1,689

 
472,507

 
1,370

 
332,007

Central Region
 
1,689

 
472,507

 
1,370

 
332,007

Carolinas
 
218

 
87,461

 
109

 
38,841

Florida
 
568

 
228,527

 
443

 
132,284

Tennessee
 
11

 
3,106

 

 

East Region
 
797

 
319,094

 
552

 
171,125

Total
 
4,484

 
$
1,567,719

 
3,701

 
$
1,060,910

 
 
 
 
 
 
 
 
 
Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
391

 
$
131,508

 
303

 
$
92,300

California
 
261

 
127,107

 
307

 
113,126

Colorado
 
202

 
92,102

 
109

 
35,689

Nevada
 

 

 
27

 
5,129

West Region
 
854

 
350,717

 
746

 
246,244

Texas
 
877

 
260,900

 
576

 
148,065

Central Region
 
877

 
260,900

 
576

 
148,065

Carolinas
 
114

 
46,953

 
49

 
16,944

Florida
 
315

 
137,691

 
247

 
78,269

Tennessee
 
30

 
9,319

 

 

East Region
 
459

 
193,963

 
296

 
95,213

Total
 
2,190

 
$
805,580

 
1,618

 
$
489,522







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Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
Three Months Ended
 
 
September 30, 2013
 
September 30, 2012
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
36

 
39

 
32

 
34

California
 
13

 
18

 
20

 
19

Colorado
 
12

 
12

 
8

 
8

Nevada
 

 

 
2

 
2

West Region
 
61

 
69

 
62

 
63

Texas
 
71

 
73

 
68

 
68

Central Region
 
71

 
73

 
68

 
68

Carolinas
 
13

 
15

 
5

 
7

Florida
 
20

 
19

 
16

 
15

Tennessee
 

 
3

 

 

East Region
 
33

 
37

 
21

 
22

Total
 
165

 
179

 
151

 
153

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
September 30, 2013
 
September 30, 2012
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
38

 
39

 
37

 
34

California
 
17

 
18

 
20

 
19

Colorado
 
12

 
12

 
10

 
8

Nevada
 
1

 

 
2

 
2

West Region
 
68

 
69

 
69

 
63

Texas
 
65

 
73

 
67

 
68

Central Region
 
65

 
73

 
67

 
68

Carolinas
 
7

 
15

 
3

 
7

Florida
 
18

 
19

 
18

 
15

Tennessee
 

 
3

 

 

East Region
 
25

 
37

 
21

 
22

Total
 
158

 
179

 
157

 
153




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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 September 30, 2013, the company had 179 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; Denver, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina and Nashville, Tennessee.
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 expectations for continued growth of the housing market, plans to enter new markets and expand in its existing markets, and management's projected home closings, 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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