Exhibit 99.1
 
 
 
 
 
 
 
 
 
 
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 2014
Fourth quarter home closing revenue increases 29% with 27% increase in home closings
Net earnings for fourth quarter increase 7%, resulting in diluted EPS of $1.19
Total order value for fourth quarter up 18% over 2013 with 12% increase in orders
Year-end community count up 22% and backlog value up 23% over 2013

SCOTTSDALE, Ariz., January 29, 2015 - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2014.
.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
    
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2014
 
2013
 
%Chg
 
2014
 
2013
 
%Chg
Homes closed (units)
 
1,863

 
1,468

 
27
%
 
5,862

 
5,259

 
11
%
Home closing revenue
 
$
688,288

 
$
533,492

 
29
%
 
$
2,142,391

 
$
1,783,389

 
20
%
Average sales price - closings
 
$
369

 
$
363

 
2
%
 
$
365

 
$
339

 
8
%
Home orders (units)
 
1,272

 
1,131

 
12
%
 
5,944

 
5,615

 
6
%
Home order value
 
$
490,999

 
$
414,584

 
18
%
 
$
2,238,117

 
$
1,982,303

 
13
%
Average sales price - orders
 
$
386

 
$
367

 
5
%
 
$
377

 
$
353

 
7
%
Ending backlog (units)
 
 
 
 
 
 
 
2,114

 
1,853

 
14
%
Ending backlog value
 
 
 
 
 
 
 
$
846,452

 
$
686,672

 
23
%
Average sales price - backlog
 


 


 

 
$
400

 
$
371

 
8
%
Net earnings
 
$
49,208

 
$
46,089

 
7
%
 
$
142,241

 
$
124,464

 
14
%
Diluted EPS
 
$
1.19

 
$
1.19

 
—
%
 
$
3.46

 
$
3.25

 
6
%




1


MANAGEMENT COMMENTS
“We were pleased with our results for the fourth quarter and full year 2014,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “We achieved strong growth in closing volumes, orders and backlog for both the quarter and the year, driven by expansion of our East region and favorable market conditions in key markets like Texas and Colorado. With the combination of higher average prices on top of those volume gains, we generated even greater increases in our fourth quarter and full year home closing revenue, total order value and backlog value.
“Our net earnings increased by 7% in the fourth quarter over 2013, and were up 14% for the year,” said Mr. Hilton. “In addition to revenue growth, our net earnings reflected a lower tax rate for the quarter due to federal energy tax credits we earn for building highly energy efficient homes using advanced building standards. Over the last several years, those credits have significantly reduced our effective tax rates well below the statutory rates, translating to a real benefit for our shareholders in addition to the energy savings for our homeowners.
“Higher home closing revenue more than offset our expected margin decline, resulting in a 13% increase in home closing gross profit for the fourth quarter and 16% for the full year 2014. Because we are no longer benefiting from rapid home price inflation that exceeds our cost increases as it did through the middle of 2013, our gross margins have trended back to more normalized ratios from the unusually high levels in 2013 -- especially in California and Arizona. Purchase accounting adjustments on home closings from our August 2014 acquisition of Legendary Communities represent a temporary drag on our margins,” Mr. Hilton explained.
“We have maintained a strong balance sheet by carefully managing our debt and risks while investing where we perceive the best opportunities exist. We believe Meritage is strategically positioned in many of the highest quality markets in the country, which we selected based on their short- and long-term growth potential, population demographics and anticipated profitability through the business cycle. That strategy has enabled us to produce strong returns for our shareholders over the long term. We will continue to look for expansion and growth opportunities in new markets that meet these same criteria.”
He continued, “While there is uncertainty surrounding the potential effects of lower oil prices on the energy industry and some housing markets like Houston, other industries and markets should benefit from lower energy prices. We are confident in our market position and believe there will be opportunities as the U.S. economy continues to grow despite a decline in a single industry. Interest rates remain at historically low levels, employment numbers have improved and recent changes in the mortgage industry should open the door for hundreds of thousands of additional buyers who have previously been unable to obtain financing.

2


“With our year-end 2014 community count being over 20% higher than it was a year ago, we expect to grow our 2015 orders, closings and revenue, though we are being more cautious in our outlook,” said Mr. Hilton.
”We expect our 2015 home closing gross margin for the year to be consistent with our fourth quarter of 2014, beginning with a lower margin in the first quarter and improving as we progress through the year, following normal seasonal patterns. We expect positive year-over-year comparisons in the second half of 2015 and are confident that we will show meaningful earnings growth for the year,” concluded Mr. Hilton.
FOURTH QUARTER RESULTS
•
Net earnings of $49.2 million ($1.19 per diluted share) for the fourth quarter of 2014, compared to prior year net earnings of $46.1 million ($1.19 per diluted share), primarily reflecting lower home closing margins on higher home closing revenues and a lower effective tax rate. Earnings per share also reflected a larger share count in 2014 compared to 2013.
•
Home closing revenue increased 29% due to a 27% increase in home closings combined with a 2% increase in average price over the prior year period. The Central region (Texas) grew home closing revenue by 53% over 2013, followed by the East region’s 40% increase (Florida, the Carolinas and Tennessee), and an 8% increase in the West region (California, Colorado and Arizona).
•
Fourth quarter orders increased 12% and the total value of homes ordered increased 18%, after a 5% increase in average sales prices, which reached $386,000 in the fourth quarter of 2014 compared to $367,000 in 2013. Texas’s fourth quarter order value was flat compared to the prior year despite an 8% decline in orders, as it was offset by a 9% increase in its average sales price. The decline in Texas orders was due to 13% fewer average actively selling communities compared to prior year, partially offset by an increase in average sales per community.
•
Total active community count at year-end increased 22% in 2014 over 2013, primarily due to the acquisition of Legendary Communities, which operates at a structurally lower sales pace than Meritage’s other markets. As a result, average orders per community declined to 5.6 in the fourth quarter of 2014 from 6.2 in the fourth quarter of 2013, dampening the effect of the increase in community count on total order growth.
•
Cancellation rates increased slightly to 17% in the fourth quarter of 2014, compared to 15% in the fourth quarter of 2013, but remained below historical rates for the Company.
•
Home closing gross profit increased 13% over the prior year due to higher home closing revenue. Increased revenue was partially offset by a decline in home closing gross margins in the West and an approximate 48 bps negative impact due to purchase accounting adjustments on closings of Legendary Communities.

3


•
Fourth quarter 2014 home closing margin was 20.3% compared to 23.2% in the fourth quarter of 2013.
•
Commissions and other selling expenses increased by 40 basis points from the prior year to 7.2% of home closing revenue in the fourth quarter of 2014, compared to 6.8% of home closing revenue in the fourth quarter of 2013. Marketing and other sales overhead costs related to opening new communities and new divisions inflated the percentage of these costs relative to their closing revenues.
•
General and administrative expenses for the fourth quarter of 2014 decreased by 40 basis points to 4.2% of total closing revenue in 2014, compared to 4.6% of total closing revenue in 2013.
•
Interest expense decreased 70% to $0.6 million or 0.1% of total closing revenue in the fourth quarter of 2014, compared to $2.0 million or 0.4% of total closing revenue in the fourth quarter of 2013, as we capitalized nearly all interest incurred to assets under development.
•
Earnings before income taxes increased modestly to $66.4 million from $65.9 million in the fourth quarter of 2014 compared to 2013, respectively. Pretax margin of 9.5% for the fourth quarter of 2014 was lower than 12.2% in 2013 due to lower gross margins in 2014.
FULL YEAR RESULTS
•
Net income for the full year increased 14% to $142.2 million in 2014 compared to $124.5 million in 2013 as a result of higher revenues, partially offset by lower gross margins and a higher tax rate in 2014. The effective tax rate was 32% in 2014 and 30% in 2013. Pre-tax margins were similar at 9.6% in 2014 and 9.8% in 2013.
•
Home closings and closing revenue increased 11% and 20%, respectively, for 2014 as compared to 2013, led by the East region’s expansion markets in Tennessee, Georgia and the Carolinas, which combined with Florida for a 50% increase in 2014 home closing revenue. Texas also generated a 39% increase in home closing revenue for the year over 2013, offsetting declines in the West.
•
Full year home closing gross margin declined to 21.2% compared to 22.0% in 2013. Margin contraction from last year’s inflated levels in Arizona and California, combined with the negative impact of purchase accounting associated with the Legendary acquisition (26 bps), were not fully offset by improved margins in Texas and other markets, resulting in slightly lower home closing gross margin for the full year 2014 compared to 2013.
•
Net orders for the year increased 6% in 2014 over 2013, and total order value increased 13% year over year, aided by a 7% increase in average sales prices.
•
The total value of orders in backlog at year-end 2014 was 23% higher than the prior year’s ending backlog, reflecting a 14% increase in units in backlog coupled with an 8% increase in average price.

4


BALANCE SHEET
•
Cash and cash equivalents plus securities at December 31, 2014, totaled $103.3 million, compared to $363.7 million at December 31, 2013, reflecting the $130.7 million purchase of Legendary Communities in August 2014, as well as investments to grow our other relatively new expansion markets in the East region. The company had nothing drawn on its $400 million revolving credit facility at December 31, 2014.
•
Real estate assets increased by $472.4 million for the year, ending at $1.9 billion at December 31, 2014, compared to $1.4 billion at December 31, 2013. Approximately 47% of that increase was attributable to finished home sites (lots) and home sites under development, as Meritage acquired and developed lots for new communities in growing markets. We invested a total of approximately $705 million in land and development (excluding Legendary acquisition) during 2014.
•
Meritage ended the year 2014 with approximately 30,300 total lots under control, compared to approximately 25,700 total lots at December 31, 2013. The acquisition of Legendary Communities in August of 2014 added approximately 4,800 lots in Georgia and the Carolinas, accounting for most of the increase in lots. Based on trailing twelve months’ closings, Meritage controlled a 5.2-year supply of lots at the end of 2014.
•
Net debt-to-capital ratio at December 31, 2014 was 42.9%, compared to 39.8% at December 31, 2013, within the Company’s stated target range.

CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 10:00 a.m. Eastern Time (8:00 a.m. Arizona 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/10058278.
Telephone participants who are unable to pre-register may dial in to 866-226-4948 on the day of the call. International dial-in number is 1-412-902-4125 or 1-855-669-9657 for Canada.
A replay of the call will be available until February 15, beginning at 12:00 p.m. ET on January 29, 2015 on the website noted above, or by dialing 877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10058278.
For more information, visit www.meritagehomes.com.




5



Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(Unaudited)
(In thousands, except per share data)
 
 
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
 
2014
 
2013
 
2014
 
2013
Homebuilding:
 
 
 
 
 
 
 
 
 
Home closing revenue
 
$
688,288

 
$
533,492

 
$
2,142,391

 
$
1,783,389

 
Land closing revenue
 
10,630

 
2,702

 
27,252

 
31,270

 
Total closing revenue
 
698,918

 
536,194

 
2,169,643

 
1,814,659

 
Cost of home closings
 
(548,371
)
 
(409,918
)
 
(1,688,676
)
 
(1,391,475
)
 
Cost of land closings
 
(10,266
)
 
(2,627
)
 
(28,350
)
 
(26,766
)
 
Total cost of closings
 
(558,637
)
 
(412,545
)
 
(1,717,026
)
 
(1,418,241
)
 
Home closing gross profit
 
139,917

 
123,574

 
453,715

 
391,914

 
Land closing gross (loss)/profit
 
364

 
75

 
(1,098
)
 
4,504

 
Total closing gross profit
 
140,281

 
123,649

 
452,617

 
396,418

Financial Services:
 
 
 
 
 
 
 
 
 
Revenue
 
3,022

 
2,077

 
10,121

 
6,037

 
Expense
 
(1,368
)
 
(1,037
)
 
(4,812
)
 
(3,266
)
 
Earnings from financial services unconsolidated entities and other, net
 
3,588

 
3,399

 
10,869

 
13,183

 
Financial services profit
 
5,242

 
4,439

 
16,178

 
15,954

Commissions and other sales costs
 
(49,492
)
 
(36,190
)
 
(156,742
)
 
(126,716
)
General and administrative expenses
 
(29,138
)
 
(24,923
)
 
(104,598
)
 
(91,510
)
Loss from other unconsolidated entities, net
 
(83
)
 
(149
)
 
(447
)
 
(378
)
Interest expense
 
(594
)
 
(1,979
)
 
(5,163
)
 
(15,092
)
Other income, net
 
177

 
1,032

 
6,572

 
2,792

Loss on early extinguishment of debt
 
—

 
—

 
—

 
(3,796
)
Earnings before income taxes
 
66,393

 
65,879

 
208,417

 
177,672

Provision for income taxes
 
(17,185
)
 
(19,790
)
 
(66,176
)
 
(53,208
)
Net earnings
 
$
49,208

 
$
46,089

 
$
142,241

 
$
124,464

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.26

 
$
1.27

 
$
3.65

 
$
3.45

 
Weighted average shares outstanding
 
39,133

 
36,240

 
39,017

 
36,105

 
Diluted
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.19

 
$
1.19

 
$
3.46

 
$
3.25

 
Weighted average shares outstanding
 
41,696

 
38,905

 
41,614

 
38,801





6




Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
December 31, 2014
 
December 31, 2013
Assets:
 
 
 
 
Cash and cash equivalents
 
$
103,333

 
$
274,136

Investments and securities
 
—

 
89,529

Other receivables
 
56,763

 
38,983

Real estate (1)
 
1,877,682

 
1,405,299

Real estate not owned
 
4,999

 
289

Deposits on real estate under option or contract
 
94,989

 
51,595

Investments in unconsolidated entities
 
10,780

 
11,638

Property and equipment, net
 
32,403

 
22,099

Deferred tax asset
 
64,137

 
70,404

Prepaids, other assets and goodwill
 
71,052

 
39,389

Total assets
 
$
2,316,138

 
$
2,003,361

Liabilities:
 
 
 
 
Accounts payable
 
$
83,619

 
$
68,018

Accrued liabilities
 
154,144

 
150,618

Home sale deposits
 
29,379

 
21,996

Liabilities related to real estate not owned
 
4,299

 
289

Loans payable and other borrowings
 
30,722

 
15,993

Senior and convertible senior notes
 
904,486

 
905,055

Total liabilities
 
1,206,649

 
1,161,969

Stockholders' Equity:
 
 
 
 
Preferred stock
 
—

 
—

Common stock
 
391

 
362

Additional paid-in capital
 
538,788

 
412,961

Retained earnings
 
570,310

 
428,069

Total stockholders’ equity
 
1,109,489

 
841,392

Total liabilities and stockholders’ equity
 
$
2,316,138

 
$
2,003,361

(1) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
328,931

 
$
262,633

Unsold homes, completed and under construction
 
302,288

 
147,889

Model homes
 
109,614

 
81,541

Finished home sites and home sites under development
 
1,136,849

 
913,236

Total real estate
 
$
1,877,682

 
$
1,405,299







7


Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
 
    
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2014
 
2013
 
2014
 
2013
Depreciation and amortization
$
3,460

 
$
2,765

 
$
11,614

 
$
9,934

 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
Capitalized interest, beginning of period
$
50,455

 
$
28,998

 
$
32,992

 
$
21,600

Interest incurred
15,041

 
13,276

 
58,374

 
51,152

Interest expensed
(594
)
 
(1,979
)
 
(5,163
)
 
(15,092
)
Interest amortized to cost of home and land closings
(10,842
)
 
(7,303
)
 
(32,143
)
 
(24,668
)
Capitalized interest, end of period
$
54,060

 
$
32,992

 
$
54,060

 
$
32,992

 
 
 
 
 
 
 
 
 
December 31, 2014
 
December 31, 2013
 
 
 
 
Notes payable and other borrowings
$
935,208

 
$
921,048

 
 
 
 
Stockholders' equity
1,109,489

 
841,392

 
 
 
 
Total capital
2,044,697

 
1,762,440

 
 
 
 
Debt-to-capital
45.7
%
 
52.3
%
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable and other borrowings
$
935,208

 
$
921,048

 
 
 
 
Less: cash and cash equivalents and investments and securities
(103,333
)
 
(363,665
)
 
 
 
 
Net debt
831,875

 
557,383

 
 
 
 
Stockholders’ equity
1,109,489

 
841,392

 
 
 
 
Total net capital
$
1,941,364

 
$
1,398,775

 
 
 
 
Net debt-to-capital
42.9
%
 
39.8
%
 
 
 

 



8


Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands) (unaudited)
 
 
Twelve Months Ended December 31,
 
 
2014
 
2013
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
142,241

 
$
124,464

Adjustments to reconcile net earnings to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
11,614

 
9,934

Stock-based compensation
 
12,211

 
9,483

Loss on early extinguishment of debt
 
—

 
3,796

Excess income tax benefit from stock-based awards
 
(2,297
)
 
(1,891
)
Equity in earnings from unconsolidated entities
 
(10,422
)
 
(12,805
)
Deferred tax asset valuation benefit
 
—

 
(8,666
)
Distribution of earnings from unconsolidated entities
 
11,613

 
13,013

Other
 
10,149

 
17,742

Changes in assets and liabilities:
 
 
 
 
Increase in real estate
 
(338,594
)
 
(263,886
)
Increase in deposits on real estate under option or contract
 
(42,278
)
 
(36,974
)
Increase in receivables, prepaids and other assets
 
(25,032
)
 
(18,429
)
Increase in accounts payable and accrued liabilities
 
14,688

 
76,898

Increase in home sale deposits
 
4,859

 
9,397

Net cash used in operating activities
 
(211,248
)
 
(77,924
)
Cash flows from investing activities:
 
 
 
 
Investments in unconsolidated entities
 
(515
)
 
(107
)
Distributions of capital from unconsolidated entities
 
65

 
158

Purchases of property and equipment
 
(20,788
)
 
(15,783
)
Proceeds from sales of property and equipment
 
262

 
56

Maturities of investments and securities
 
124,599

 
163,012

Payments to purchase investments and securities
 
(35,813
)
 
(166,619
)
Cash paid for acquisitions
 
(130,677
)
 
(18,624
)
Decrease in restricted cash
 
—

 
38,938

Net cash (used in)/provided by investing activities
 
(62,867
)
 
1,031

Cash flows from financing activities:
 
 
 
 
Repayment of loans payable and other borrowings
 
(10,447
)
 
(8,352
)
Repayment of senior subordinated notes
 
—

 
(102,822
)
Proceeds from issuance of senior notes
 
—

 
281,699

Proceeds from issuance of common stock, net
 
110,420

 
—

Debt issuance costs
 
—

 
(3,188
)
Excess income tax benefit from stock-based awards
 
2,297

 
1,891

   Non-controlling interest acquisition
 
—

 
(257
)
Proceeds from stock option exercises
 
1,042

 
11,601

Net cash provided by financing activities
 
103,312

 
180,572

Net (decrease)/increase in cash and cash equivalents
 
(170,803
)
 
103,679

Beginning cash and cash equivalents
 
274,136

 
170,457

Ending cash and cash equivalents (2)
 
$
103,333

 
$
274,136

 (2) Ending cash and cash equivalents excludes investments and securities of $89.5 million as of December 31, 2013 .

9


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
December 31, 2014
 
December 31, 2013
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
225

 
$
73,101

 
297

 
$
96,408

California
 
239

 
122,851

 
205

 
98,472

Colorado
 
146

 
64,696

 
107

 
46,555

Nevada
 
—

 
—

 
—

 
—

West Region
 
610

 
260,648

 
609

 
241,435

Texas
 
713

 
227,342

 
522

 
148,853

Central Region
 
713

 
227,342

 
522

 
148,853

Florida
 
217

 
87,503

 
235

 
102,220

Georgia
 
53

 
17,734

 
—

 
—

North Carolina
 
138

 
55,870

 
86

 
35,361

South Carolina
 
75

 
24,747

 
—

 
—

Tennessee
 
57

 
14,444

 
16

 
5,623

East Region
 
540

 
200,298

 
337

 
143,204

Total
 
1,863

 
$
688,288

 
1,468

 
$
533,492

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
173

 
$
55,489

 
184

 
$
62,139

California
 
173

 
96,335

 
169

 
78,828

Colorado
 
113

 
49,958

 
107

 
46,837

Nevada
 
—

 
—

 
—

 
—

West Region
 
459

 
201,782

 
460

 
187,804

Texas
 
401

 
133,282

 
437

 
133,608

Central Region
 
401

 
133,282

 
437

 
133,608

Florida
 
168

 
71,692

 
128

 
53,801

Georgia
 
41

 
12,996

 
—

 
—

North Carolina
 
127

 
46,900

 
80

 
31,626

South Carolina
 
55

 
18,952

 
—

 
—

Tennessee
 
21

 
5,395

 
26

 
7,745

East Region
 
412

 
155,935

 
234

 
93,172

Total
 
1,272

 
$
490,999

 
1,131

 
$
414,584


10


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
Twelve Months Ended
 
 
December 31, 2014
 
December 31, 2013
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
924

 
$
307,282

 
1,041

 
$
329,855

California
 
785

 
395,105

 
989

 
427,886

Colorado
 
464

 
206,702

 
405

 
158,793

Nevada
 
—

 
—

 
38

 
8,900

West Region
 
2,173

 
909,089

 
2,473

 
925,434

Texas
 
2,224

 
683,717

 
1,834

 
492,777

Central Region
 
2,224

 
683,717

 
1,834

 
492,777

Florida
 
699

 
277,045

 
691

 
264,066

Georgia
 
90

 
29,633

 
—

 
—

North Carolina
 
386

 
157,989

 
239

 
93,210

South Carolina
 
112

 
36,241

 
—

 
—

Tennessee
 
178

 
48,677

 
22

 
7,902

East Region
 
1,465

 
549,585

 
952

 
365,178

Total
 
5,862

 
$
2,142,391

 
5,259

 
$
1,783,389

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
838

 
$
276,261

 
1,070

 
$
346,278

California
 
772

 
411,605

 
899

 
410,761

Colorado
 
530

 
235,951

 
465

 
201,088

Nevada
 
—

 
—

 
24

 
5,795

West Region
 
2,140

 
923,817

 
2,458

 
963,922

Texas
 
2,290

 
747,103

 
2,126

 
606,115

Central Region
 
2,290

 
747,103

 
2,126

 
606,115

Florida
 
728

 
290,343

 
696

 
282,328

Georgia
 
72

 
22,443

 
—

 
—

North Carolina
 
438

 
171,843

 
298

 
119,087

South Carolina
 
99

 
33,177

 
—

 
—

Tennessee
 
177

 
49,391

 
37

 
10,851

East Region
 
1,514

 
567,197

 
1,031

 
412,266

Total
 
5,944

 
$
2,238,117

 
5,615

 
$
1,982,303

 
 
 
 
 
 
 
 
 
Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
192

 
$
66,218

 
278

 
$
97,239

California
 
212

 
123,963

 
225

 
107,463

Colorado
 
268

 
121,633

 
202

 
92,384

Nevada
 
—

 
—

 
—

 
—

West Region
 
672

 
311,814

 
705

 
297,086

Texas
 
858

 
309,041

 
792

 
245,655

Central Region
 
858

 
309,041

 
792

 
245,655

Florida
 
237

 
102,570

 
208

 
89,272

Georgia
 
53

 
16,584

 
—

 
—

North Carolina
 
185

 
68,168

 
108

 
43,218

South Carolina
 
70

 
26,120

 
—

 
—

Tennessee
 
39

 
12,155

 
40

 
11,441

East Region
 
584

 
225,597

 
356

 
143,931

Total
 
2,114

 
$
846,452

 
1,853

 
$
686,672



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Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
December 31, 2014
 
December 31, 2013
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
42

 
41

 
39

 
40

California
 
22

 
24

 
18

 
22

Colorado
 
16

 
17

 
12

 
14

Nevada
 
—

 
—

 
—

 
—

West Region
 
80

 
82

 
69

 
76

Texas
 
65

 
59

 
73

 
70

Central Region
 
65

 
59

 
73

 
70

Florida
 
26

 
29

 
19

 
20

Georgia
 
11

 
13

 
—

 
—

North Carolina
 
20

 
21

 
15

 
17

South Carolina
 
19

 
20

 
—

 
—

Tennessee
 
4

 
5

 
3

 
5

East Region
 
80

 
88

 
37

 
42

Total
 
225

 
229

 
179

 
188

 
 
Twelve Months Ended
 
 
December 31, 2014
 
December 31, 2013
 
 
Beg.
 
End
 
Beg.
 
End
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
40

 
41

 
38

 
40

California
 
22

 
24

 
17

 
22

Colorado
 
14

 
17

 
12

 
14

Nevada
 
—

 
—

 
1

 
—

West Region
 
76

 
82

 
68

 
76

Texas
 
70

 
59

 
65

 
70

Central Region
 
70

 
59

 
65

 
70

Florida
 
20

 
29

 
18

 
20

Georgia
 
—

 
13

 
—

 
—

North Carolina
 
17

 
21

 
7

 
17

South Carolina
 
—

 
20

 
—

 
—

Tennessee
 
5

 
5

 
—

 
5

East Region
 
42

 
88

 
25

 
42

Total
 
188

 
229

 
158

 
188




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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 2013. 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. Meritage builds 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 and Fort Collins, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina; Greenville-Spartanburg and York County, South Carolina; Nashville, Tennessee and Atlanta, Georgia.
Meritage has designed and built more than 85,000 homes in its 30-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 has received the U.S. Environmental Protection Agency's ENERGY STAR Partner of the Year for Sustained Excellence Award in 2013 and 2014, for 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 and the accompanying comments during our analyst call contain 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 U.S. economy and housing market; our growth opportunities including 2015 orders, closings and revenue; trends in home closing gross margins in 2015; and the expectation for meaningful earnings growth in 2015.
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. These risks and uncertainties include, but are not limited to, the following: the availability of finished lots and undeveloped land; interest rates and changes in the availability and pricing of residential mortgages; fluctuations in the availability and cost of labor; changes in tax laws that adversely impact our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates and home prices in our markets; weakness in the homebuilding market resulting from an unexpected setback in the current economic recovery due to lower oil prices or other factors; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slower order absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of option deposits; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our potential exposure to natural disasters; competition; the adverse impacts of cancellations resulting from relatively small deposits relating to our sales contracts; construction defect and home warranty claims; changes in tax laws; adverse legal rulings; our success in prevailing on contested tax positions; 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

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obligations to us and the joint venture; the loss of key personnel; our failure to comply with laws and regulations; limitations of our geographic diversification; fluctuations in quarterly operating results; our financial leverage and level of indebtedness and 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; our compliance with government regulations and the effect of legislative or other initiatives that seek to restrain growth of 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, 2013 and most recent 10-Q under the caption "Risk Factors," which can be found on our website.
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