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 Fourth Quarter and Full Year 2013
Fourth quarter EPS of $1.19 reflects 47% increase in home closing revenue and 12% pre-tax margin
Full year home closing revenue increases 51% and total order value increases 40% over 2012

SCOTTSDALE, Ariz., February 5, 2014 (Marketwire) - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2013.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
    
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2013
 
2012
 
%Chg
 
2013
 
2012
 
%Chg
Homes closed (units)
 
1,468

 
1,240

 
18
 %
 
5,259

 
4,238

 
24
%
Home closing revenue
 
$
533,492

 
$
364,118

 
47
 %
 
$
1,783,389

 
$
1,184,360

 
51
%
Average sales price - closings
 
$
363

 
$
294

 
24
 %
 
$
339

 
$
279

 
21
%
Home orders (units)
 
1,131

 
1,094

 
3
 %
 
5,615

 
4,795

 
17
%
Home order value
 
$
414,584

 
$
353,862

 
17
 %
 
$
1,982,303

 
$
1,414,772

 
40
%
Average sales price - orders
 
$
367

 
$
323

 
13
 %
 
$
353

 
$
295

 
20
%
Ending backlog (units)
 
 
 
 
 


 
1,853

 
1,472

 
26
%
Ending backlog value
 
 
 
 
 


 
$
686,672

 
$
479,266

 
43
%
Average sales price - backlog
 


 


 


 
$
371

 
$
326

 
14
%
Net earnings
 
$
46,089

 
$
95,128

 
(52
)%
 
$
124,464

 
$
105,163

 
18
%
Diluted EPS
 
$1.19
 
$2.49
 
(52
)%
 
$3.25
 
$3.00
 
8
%




1



MANAGEMENT COMMENTS
2013 was another year of strong revenue growth and earnings acceleration for Meritage Homes, and the fourth quarter was our eleventh consecutive quarter of year-over-year growth in orders, said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. Our orders and closing volumes grew due to strong demand and a 19% increase in our active communities open at year-end. In addition, rising home prices pushed our total order value and closing revenue to their highest levels in more than five years. Price appreciation also contributed to our home closing gross margins expanding to 22.0% for the year and 23.2% in the fourth quarter.
With those margin gains, we produced an 80% increase in full year home closing gross profit and grew our annual pre-tax earnings by a multiple of six times on a 51% increase in home closing revenue in 2013, he explained. Our growth was less evident in our net earnings and earnings per share, as our 2012 annual results included a $76.3 million net tax benefit, while 2013 results included a provision for tax expense of $53.2 million.
Mr. Hilton continued, The homebuilding market strengthened in 2013 as jobs, improved buyer confidence and a shortage of homes for sale drove housing starts higher, continued Mr. Hilton. We believe market conditions remain positive for continued growth in 2014 and beyond. Based on our positive outlook, we invested approximately $565 million during the year in land and development, and contracted for approximately 11,200 new lots in great locations at attractive prices, ending the year with about 25,700 total lots under control. We raised approximately $280 million during 2013 through the issuance of senior unsecured notes and completed a $110 million stock offering in January 2014 to further solidify our balance sheet and fund additional growth.
We closed 2013 with significantly higher backlog, total assets and stockholders' equity than we had at the end of 2012, and believe we have sufficient liquidity to grow as the housing market continues to improve,” concluded Mr. Hilton.At this time, we expect to grow our community count to 210-220 by the end of 2014.
FOURTH QUARTER RESULTS
Net earnings of $46.1 million ($1.19 per diluted share) were net of a $19.8 million provision for income taxes, while prior year net earnings of $95.1 million ($2.49 per diluted share) included a $71.5 million net tax benefit primarily due to the reversal of a majority of our deferred tax asset valuation allowances.
Home closing revenue increased 47% due to an 18% increase in home closings combined with a 24% increase in average price over the prior year period. The strongest growth was in the expanded East Region (Florida, the Carolinas and Tennessee), which grew closings and home closing revenue by 58% and 116%, respectively, compared to 31% growth in home closing revenue in both the West and Central Regions.
The total value of homes ordered increased 17%, primarily due to a 13% increase in average selling price combined with a 3% increase in order volume. Average sales price for the fourth quarter increased to $367,000 from $323,000 in 2012. The fourth quarter of 2013 was Meritage's eleventh consecutive quarter of year-over-year growth in home orders, and monthly sales improved sequentially every month throughout the quarter, before including the Company's new Tennessee division, which added 26 orders in the fourth quarter of 2013.
An average of 6.2 orders per community during the fourth quarter 2013 was the second highest fourth quarter in the last eight years, exceeded only by 2012s 7.0 average orders per community. California and Colorado sold the highest number of homes per average community.

2



Cancellation rates increased to 15% in the fourth quarter of 2013, compared to 13% in the fourth quarter of 2012, but still remained well below historical rates for the Company.
Ending backlog of orders was up 26% over the prior year, and the total value of orders in backlog was up 43%, aided by a 14% increase in the average sales price per home.
Home closing gross profit increased 80% over the prior year, and home closing gross margin increased by 430 basis points to 23.2% in the fourth quarter of 2013 compared to 18.9% in the fourth quarter of 2012. Increased margins reflected the Companys success in managing smaller increases in its cost of sales relative to rising home prices.
Commissions and selling expenses decreased by 60 basis points from the prior year, to 6.8% of home closing revenue in the fourth quarter of 2013, compared to 7.4% of home closing revenue in the fourth quarter of 2012, as higher closing revenue resulted in greater leverage of the fixed components within selling costs.
General and administrative expenses for the fourth quarter of 2013 decreased by 30 basis points to 4.6% of total closing revenue in 2013, compared to 4.9% of total closing revenue in 2012, despite increasing by $7.2 million over the prior year, primarily due to hiring of additional employees and higher compensation expense.
Interest expense decreased to $2.0 million or 0.4% of closing revenue in the fourth quarter of 2013, compared to $5.5 million or 1.5% of closing revenue in the fourth quarter of 2012, as more interest was capitalized to assets under development.
Earnings before income taxes increased 179% to $65.9 million from $23.6 million in the fourth quarters of 2013 and 2012, respectively. Pretax margin for the fourth quarter increased 570 basis points to 12.2% in 2013 compared to 6.5% in 2012.
FULL YEAR RESULTS
Net income of $124.5 million for the full year of 2013 included a $53.2 provision for income taxes and a $3.8 million loss on early extinguishment of debt, compared to 2012s net income of $105.2 million, which included a net tax benefit of $76.3 million and a $5.8 million loss on early extinguishment of debt.
Home closings and closing revenue increased 24% and 51%, respectively, for 2013 as compared to 2012.
2013 home closing gross margins improved by 360 basis points to 22.0% compared to 18.4% for 2012.
Net orders for the year increased 17% in 2013 over 2012, and total order value increased 40% year over year, aided by a 20% increase in average sales prices.
The total value of orders in backlog at year-end 2013 was 43% higher than the prior years ending backlog.
BALANCE SHEET
Cash and cash equivalents, restricted cash and securities at December 31, 2013, totaled $363.8 million, compared to $295.5 million at December 31, 2012. During 2013, Meritage received approximately $280 million from the sale of $175 million of 4.50% senior notes due 2018 and $100 million of its 7.15% senior notes due 2020 (sold at a premium of $106.699 for a yield of 5.875%). Approximately $100 million of the capital raised was used to fully retire the Companys 7.731% senior subordinated notes due 2017. In January 2014, the company also issued approximately 2.53 million shares of common stock for net proceeds of approximately $110 million.
Meritage Homes expanded into the Nashville, Tennessee market through the acquisition of Phillips Builders in August 2013, which added approximately 500 lots to Meritage's total lot inventory.

3



Real estate assets increased by $292.1 million for the year 2012, ending at $1.4 billion at December 31, 2013, compared to $1.1 billion at December 31, 2012. Approximately 61% of the increase was in finished home sites (lots) and home sites under development, as Meritage acquired and developed lots for new communities in growing markets.
Meritage ended the quarter with approximately 25,700 total lots under control, of which 74% were owned and 26% controlled under option and purchase contracts, compared to approximately 20,800 total lots at December 31, 2012. Based on its trailing twelve months closings, Meritage controlled a 4.9 year supply of lots at the end of 2013.
Net debt-to-capital ratio at December 31, 2013 was 39.1%, compared to 38.1% at December 31, 2012. Giving effect to the January equity offering, Meritages pro forma net debt-to-capital ratio would have been 31.2%.
The Company increased the borrowing capacity under its revolving credit facility to $200 million from $135 million during the fourth quarter, providing additional liquidity for working capital and growth, while also eliminating all restrictions on cash previously required under its letters of credit facilities.

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 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/10038596.
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 February 5, 2014 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10038596. 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,
 
 
 
2013
 
2012
 
2013
 
2012
Homebuilding:
 
 
 
 
 
 
 
 
 
Home closing revenue
 
$
533,492

 
$
364,118

 
$
1,783,389

 
$
1,184,360

 
Land closing revenue
 
2,702

 
468

 
31,270

 
9,314

 
Total closing revenue
 
536,194

 
364,586

 
1,814,659

 
1,193,674

 
Cost of home closings
 
(409,918
)
 
(295,355
)
 
(1,391,475
)
 
(966,384
)
 
Cost of land closings
 
(2,627
)
 
(258
)
 
(26,766
)
 
(9,091
)
 
Total cost of closings
 
(412,545
)
 
(295,613
)
 
(1,418,241
)
 
(975,475
)
 
Home closing gross profit
 
123,574

 
68,763

 
391,914

 
217,976

 
Land closing gross profit
 
75

 
210

 
4,504

 
223

 
Total closing gross profit
 
123,649

 
68,973

 
396,418

 
218,199

Financial Services:
 
 
 
 
 
 
 
 
 
Revenue
 
2,077

 
526

 
6,037

 
779

 
Expense
 
(1,037
)
 
(497
)
 
(3,266
)
 
(981
)
 
Earnings from financial services unconsolidated entities and other, net
 
3,399

 
3,483

 
13,183

 
10,457

 
Financial services profit
 
4,439

 
3,512

 
15,954

 
10,255

Commissions and other sales costs
 
(36,190
)
 
(26,883
)
 
(126,716
)
 
(94,833
)
General and administrative expenses
 
(24,923
)
 
(17,739
)
 
(91,510
)
 
(68,185
)
Earnings/(loss) from other unconsolidated entities, net
 
(149
)
 
124

 
(378
)
 
(224
)
Interest expense
 
(1,979
)
 
(5,526
)
 
(15,092
)
 
(24,244
)
Other income/(loss), net
 
1,032

 
1,139

 
2,792

 
(6,342
)
Loss on early extinguishment of debt
 

 

 
(3,796
)
 
(5,772
)
Earnings before income taxes
 
65,879

 
23,600

 
177,672

 
28,854

(Provision for)/benefit from income taxes
 
(19,790
)
 
71,528

 
(53,208
)
 
76,309

Net earnings
 
$
46,089

 
$
95,128

 
$
124,464

 
$
105,163

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.27

 
$
2.67

 
$
3.45

 
$
3.09

 
Weighted average shares outstanding
 
36,240

 
35,595

 
36,105

 
34,057

 
Diluted
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.19

 
$
2.49

 
$
3.25

 
$
3.00

 
Weighted average shares outstanding
 
38,905

 
38,308

 
38,801

 
35,172









5





Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
December 31, 2013
 
December 31, 2012
Assets:
 
 
 
 
Cash and cash equivalents
 
$
274,136

 
$
170,457

Investments and securities
 
89,687

 
86,074

Restricted cash
 

 
38,938

Other receivables
 
38,983

 
20,290

Real estate (1)
 
1,405,299

 
1,113,187

Real estate not owned
 
289

 

Deposits on real estate under option or contract
 
51,595

 
14,351

Investments in unconsolidated entities
 
11,638

 
12,085

Property and equipment, net
 
22,099

 
15,718

Deferred tax asset
 
70,404

 
77,974

Prepaids, other assets and goodwill
 
39,231

 
26,488

Total assets
 
$
2,003,361

 
$
1,575,562

Liabilities:
 
 
 
 
Accounts payable
 
$
68,018

 
$
49,801

Accrued liabilities
 
166,611

 
96,377

Home sale deposits
 
21,996

 
12,377

Liabilities related to real estate not owned
 
289



Senior, senior subordinated, convertible senior notes and other borrowings
 
905,055

 
722,797

Total liabilities
 
1,161,969

 
881,352

Stockholders' Equity:
 
 
 
 
Preferred stock, par value $0.01
 

 

Common stock, par value $0.01
 
362

 
356

Additional paid-in capital
 
412,961

 
390,249

Retained earnings
 
428,069

 
303,605

Total stockholders’ equity
 
841,392

 
694,210

Total liabilities and stockholders’ equity
 
$
2,003,361

 
$
1,575,562

(1) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
262,633

 
$
192,948

Unsold homes, completed and under construction
 
147,889

 
107,466

Model homes
 
81,541

 
62,411

Finished home sites and home sites under development
 
813,135

 
634,106

Land held for development
 
52,100

 
56,118

Land held for sale
 
19,112

 
21,650

Communities in mothball status
 
28,889

 
38,488

Total real estate
 
$
1,405,299

 
$
1,113,187







6



Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):
 
    
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2013
 
2012
 
2013
 
2012
Depreciation and amortization
 
$
2,765

 
$
2,283

 
$
9,934

 
$
8,196

 
 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
 
Capitalized interest, beginning of period
 
$
28,998

 
$
20,185

 
$
21,600

 
$
14,810

Interest incurred
 
13,276

 
12,316

 
51,152

 
46,135

Interest expensed
 
(1,979
)
 
(5,526
)
 
(15,092
)
 
(24,244
)
Interest amortized to cost of home, land closings and impairments
 
(7,303
)
 
(5,375
)
 
(24,668
)
 
(15,101
)
Capitalized interest, end of period
 
$
32,992

 
$
21,600

 
$
32,992

 
$
21,600

 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
December 31, 2012
 
Proforma Dec 31, 2013
(includes Jan 2014 equity offering)
 
 
Notes payable and other borrowings
 
$
905,055

 
$
722,797

 
$
905,055

 
 
Stockholders' equity
 
841,392

 
694,210

 
951,731

 
 
Total capital
 
1,746,447

 
1,417,007

 
1,856,786

 
 
Debt-to-capital
 
51.8
%
 
51.0
%
 
48.7
%
 
 
 
 
 
 
 
 
 
 
 
Notes payable and other borrowings
 
$
905,055

 
$
722,797

 
$
905,055

 
 
Less: cash and cash equivalents, restricted cash, and investments and securities
 
(363,823
)
 
(295,469
)
 
(474,162
)
 
 
Net debt
 
541,232

 
427,328

 
430,893

 
 
Stockholders’ equity
 
841,392

 
694,210

 
951,731

 
 
Total net capital
 
$
1,382,624

 
$
1,121,538

 
$
1,382,624

 
 
Net debt-to-capital
 
39.1
%
 
38.1
%
 
31.2
%
 

 



7



Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands) (unaudited)
 
 
Twelve Months Ended December 31,
 
 
2013
 
2012
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
124,464

 
$
105,163

Adjustments to reconcile net earnings to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
9,934

 
8,196

Stock-based compensation
 
9,483

 
8,319

Loss on early extinguishment of debt
 
3,796

 
5,772

Equity in earnings from unconsolidated entities
 
(12,805
)
 
(10,233
)
Deferred tax asset valuation benefit
 
(8,666
)
 
(77,974
)
Distribution of earnings from unconsolidated entities
 
13,013

 
9,648

Other
 
15,851

 
2,380

Changes in assets and liabilities:
 
 
 
 
Increase in real estate
 
(281,944
)
 
(299,185
)
(Increase)/decrease in deposits on real estate under option or contract
 
(36,974
)
 
824

Increase in receivables and prepaid expenses and other assets
 
(18,429
)
 
(6,301
)
Increase in accounts payable and accrued liabilities
 
86,604

 
29,385

Increase in home sale deposits
 
9,397

 
3,519

Net cash used in operating activities
 
(86,276
)
 
(220,487
)
Cash flows from investing activities:
 
 
 
 
Purchases of property and equipment
 
(15,783
)
 
(10,863
)
Maturities of investments and securities
 
163,012

 
198,201

Payments to purchase investments and securities
 
(166,619
)
 
(136,823
)
Cash paid for acquisitions
 
(18,624
)
 

Decrease/(increase) in restricted cash
 
38,938

 
(26,792
)
Other
 
107

 
121

Net cash provided by investing activities
 
1,031

 
23,844

Cash flows from financing activities:
 
 
 
 
Repayments of senior and senior subordinated notes
 
(102,822
)
 
(315,080
)
Proceeds from issuance of senior notes
 
281,699

 
426,500

Proceeds from sale of common stock, net
 

 
87,113

Other
 
10,047

 
(5,045
)
Net cash provided by financing activities
 
188,924

 
193,488

Net increase in cash and cash equivalents
 
103,679

 
(3,155
)
Beginning cash and cash equivalents
 
170,457

 
173,612

Ending cash and cash equivalents (2)
 
$
274,136

 
$
170,457

 (2) Ending cash and cash equivalents as of December 31, 2013 and December 31, 2012 excludes investments and securities and restricted cash totaling $89.7 million and $125.0 million, respectively.

8



Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
Three Months Ended
 
 
December 31, 2013
 
December 31, 2012
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
297

 
$
96,408

 
232

 
$
67,910

California
 
205

 
98,472

 
243

 
91,813

Colorado
 
107

 
46,555

 
65

 
20,991

Nevada
 

 

 
22

 
4,042

West Region
 
609

 
241,435

 
562

 
184,756

Texas
 
522

 
148,853

 
465

 
113,206

Central Region
 
522

 
148,853

 
465

 
113,206

Carolinas
 
86

 
35,361

 
33

 
11,375

Florida
 
235

 
102,220

 
180

 
54,781

Tennessee
 
16

 
5,623

 

 

East Region
 
337

 
143,204

 
213

 
66,156

Total
 
1,468

 
$
533,492

 
1,240

 
$
364,118

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
184

 
$
62,139

 
178

 
$
56,426

California
 
169

 
78,828

 
251

 
103,275

Colorado
 
107

 
46,837

 
98

 
35,391

Nevada
 

 

 
9

 
2,018

West Region
 
460

 
187,804

 
536

 
197,110

Texas
 
437

 
133,608

 
389

 
97,458

Central Region
 
437

 
133,608

 
389

 
97,458

Carolinas
 
80

 
31,626

 
33

 
11,772

Florida
 
128

 
53,801

 
136

 
47,522

Tennessee
 
26

 
7,745

 

 

East Region
 
234

 
93,172

 
169

 
59,294

Total
 
1,131

 
$
414,584

 
1,094

 
$
353,862


9




 
 
Twelve Months Ended
 
 
December 31, 2013
 
December 31, 2012
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
1,041

 
$
329,855

 
825

 
$
221,100

California
 
989

 
427,886

 
732

 
264,388

Colorado
 
405

 
158,793

 
292

 
96,807

Nevada
 
38

 
8,900

 
61

 
11,444

West Region
 
2,473

 
925,434

 
1,910

 
593,739

Texas
 
1,834

 
492,777

 
1,655

 
390,642

Central Region
 
1,834

 
492,777

 
1,655

 
390,642

Carolinas
 
239

 
93,210

 
117

 
41,888

Florida
 
691

 
264,066

 
556

 
158,091

Tennessee
 
22

 
7,902

 

 

East Region
 
952

 
365,178

 
673

 
199,979

Total
 
5,259

 
$
1,783,389

 
4,238

 
$
1,184,360

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
1,070

 
$
346,278

 
916

 
$
256,684

California
 
899

 
410,761

 
965

 
361,328

Colorado
 
465

 
201,088

 
364

 
123,403

Nevada
 
24

 
5,795

 
70

 
13,473

West Region
 
2,458

 
963,922

 
2,315

 
754,888

Texas
 
2,126

 
606,115

 
1,759

 
429,465

Central Region
 
2,126

 
606,115

 
1,759

 
429,465

Carolinas
 
298

 
119,087

 
142

 
50,613

Florida
 
696

 
282,328

 
579

 
179,806

Tennessee
 
37

 
10,851

 

 

East Region
 
1,031

 
412,266

 
721

 
230,419

Total
 
5,615

 
$
1,982,303

 
4,795

 
$
1,414,772

 
 
 
 
 
 
 
 
 
Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
278

 
$
97,239

 
249

 
$
80,816

California
 
225

 
107,463

 
315

 
124,588

Colorado
 
202

 
92,384

 
142

 
50,089

Nevada
 

 

 
14

 
3,105

West Region
 
705

 
297,086

 
720

 
258,598

Texas
 
792

 
245,655

 
500

 
132,317

Central Region
 
792

 
245,655

 
500

 
132,317

Carolinas
 
108

 
43,218

 
49

 
17,341

Florida
 
208

 
89,272

 
203

 
71,010

Tennessee
 
40

 
11,441

 

 

East Region
 
356

 
143,931

 
252

 
88,351

Total
 
1,853

 
$
686,672

 
1,472

 
$
479,266







10



Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
Three Months Ended
 
 
December 31, 2013
 
December 31, 2012
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
39

 
40

 
34

 
38

California
 
18

 
22

 
19

 
17

Colorado
 
12

 
14

 
8

 
12

Nevada
 

 

 
2

 
1

West Region
 
69

 
76

 
63

 
68

Texas
 
73

 
70

 
68

 
65

Central Region
 
73

 
70

 
68

 
65

Carolinas
 
15

 
17

 
7

 
7

Florida
 
19

 
20

 
15

 
18

Tennessee
 
3

 
5

 

 

East Region
 
37

 
42

 
22

 
25

Total
 
179

 
188

 
153

 
158

 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
 
 
December 31, 2013
 
December 31, 2012
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
38

 
40

 
37

 
38

California
 
17

 
22

 
20

 
17

Colorado
 
12

 
14

 
10

 
12

Nevada
 
1

 

 
2

 
1

West Region
 
68

 
76

 
69

 
68

Texas
 
65

 
70

 
67

 
65

Central Region
 
65

 
70

 
67

 
65

Carolinas
 
7

 
17

 
3

 
7

Florida
 
18

 
20

 
18

 
18

Tennessee
 

 
5

 

 

East Region
 
25

 
42

 
21

 
25

Total
 
158

 
188

 
157

 
158




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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 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 December 31, 2013, the company had 188 actively selling communities in markets including Sacramento, San Francisco's East Bay, the Central Valley and Orange County, California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale, Green Valley and Tucson, Arizona; Denver, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina; York County, South Carolina and Nashville, Tennessee.
Meritage has designed and built more than 80,000 homes in its 28-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 positive housing market conditions, its plans to grow as the market improves and belief that it has sufficient liquidity to fund additional growth, and its projected community count by the end of 2014.
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 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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