Exhibit 99.1
 
 
 
 
 
 
 
 
Contacts:
Brent Anderson, VP Investor Relations
 
 
 
(972) 580-6360 (office)
 
 
 
Brent.Anderson@meritagehomes.com

Meritage Homes reports third quarter 2015 results, including a 10% increase in total order value with 21% increases in home closing revenue and ending backlog value

SCOTTSDALE, Ariz., October 29, 2015 - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, announced today third quarter results for the period ended September 30, 2015.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2015
 
2014
 
%Chg
 
2015
 
2014
 
%Chg
Homes closed (units)
 
1,712

 
1,522

 
12
 %
 
4,603

 
3,999

 
15
 %
Home closing revenue
 
$
661,884

 
$
545,524

 
21
 %
 
$
1,770,184

 
$
1,454,103

 
22
 %
Average sales price - closings
 
$
387

 
$
358

 
8
 %
 
$
385

 
$
364

 
6
 %
Home orders (units)
 
1,567

 
1,500

 
4
 %
 
5,532

 
4,672

 
18
 %
Home order value
 
$
629,977

 
$
573,643

 
10
 %
 
$
2,188,604

 
$
1,747,118

 
25
 %
Average sales price - orders
 
$
402

 
$
382

 
5
 %
 
$
396

 
$
374

 
6
 %
Ending backlog (units)
 
 
 
 
 
 
 
3,043

 
2,705

 
12
 %
Ending backlog value
 
 
 
 
 
 
 
$
1,264,872

 
$
1,043,741

 
21
 %
Average sales price - backlog
 


 


 

 
$
416

 
$
386

 
8
 %
Net earnings
 
$
30,308

 
$
32,577

 
(7
)%
 
$
75,841

 
$
93,033

 
(18
)%
Diluted EPS
 
$
0.73

 
$
0.79

 
(8
)%
 
$
1.83

 
$
2.27

 
(19
)%




1


MANAGEMENT COMMENTS
“Our third quarter results reflect strong order growth in our east and west regions this year, which drove a 21% increase in our third quarter home closing revenue,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “I am pleased that we were able to deliver more than 1,700 homes to our customers during the quarter despite encountering headwinds from labor shortages and weather-related challenges in some of our markets.
“Rising construction costs driven by labor shortages have pressured our home closing gross margin this year, which was 19% for the third quarter,” said Mr. Hilton. “However, we expect to see our margins increase over the next 12-18 months as we improve the margins in our East region, made up primarily of new markets we have entered in recent years, which have not yet achieved anticipated operating efficiencies.
“We finished the third quarter with 250 actively selling communities -- more than we have ever had in our 30-year history, which positions us for additional growth in 2016. While recent order volumes may be less robust than expected and conditions vary by market, they remain healthy overall. We believe our expanded position in many of the best markets will provide for more consistent performance over the long term," continued Mr. Hilton.
“As we enter our fourth quarter, we are doing our best to complete and close homes by year-end where schedules have slipped due to weather and labor issues, so that our customers can move in as soon as possible. Based on our backlog and current costs, we anticipate fourth quarter home closing revenue of approximately $750-800 million and diluted EPS of approximately $1.10-1.35 for the quarter."
THIRD QUARTER RESULTS
•
Net earnings were $30.3 million or $0.73 per diluted share for the third quarter of 2015, compared to $32.6 million or $0.79 per diluted share in the third quarter of 2014, reflecting higher home closing revenue in the third quarter of 2015, offset by lower gross margins on closings and a charge of $4.1 million or $0.06 per diluted share due to an unfavorable ruling on litigation related to a Nevada-based joint venture.
•
Home closing revenue increased 21% over the prior year’s third quarter, with a 12% increase in home closings and an 8% increase in the average price of homes closed during the quarter. The East region led with 47% growth over the prior year in home closing revenue, followed by 20% growth in the West region and 3% in the Central region, where closings in the Dallas and Houston markets were delayed due to excessive spring rainfall.
•
Home closing gross margin of 19.0% in the third quarter of 2015 declined from 20.4% in the third quarter of 2014 due to increased land costs and construction cost increases driven by labor shortages in certain markets,

2


and lower than average margins in the East, primarily associated with the company’s most recent acquisitions. Approximately $2.0 million of real estate impairments related to option abandonments are included in cost of sales for the quarter.
•
General and administrative expenses decreased to 4.3% of total third quarter closing revenue in 2015 from 5.2% in the prior year. Commissions and other sales costs were 7.3% and 7.4% of third quarter home closing revenue in 2015 and 2014, respectively.
•
Interest expense increased by $3.7 million to $4.2 million in the third quarter of 2015, primarily due to greater interest incurred associated with the issuance of $200 million of new senior notes in early June 2015.
•
The third quarter effective tax rate was 35% in 2015 compared to 31% in 2014. The 2014 effective tax rate reflected the benefit of federal energy tax credits on Meritage’s highly energy efficient homes. A similar benefit has yet to be recognized in 2015 as the legislative renewal of energy tax credits has not yet occurred.
•
Total order value grew 10% to $630.0 million in the third quarter of 2015, compared to $573.6 million in the prior year. Total orders increased 4% and average sales prices rose 5% over 2014’s third quarter. The increases were primarily driven by community count growth and stronger demand in Arizona, California and Florida, where orders grew 37%, 29% and 10%, respectively in the third quarter of 2015 compared to 2014. Order declines in Denver and Dallas were partially attributable to extended delivery schedules resulting from weather-related delays in starting new homes, which management believes have discouraged some buyers from contracting for new homes. Softer demand in Houston related to lower oil prices also contributed to the decline in Texas’ orders.
•
Average orders per active community during the quarter slowed to 6.4 in the third quarter of 2015 compared to 7.5 in 2014, reflecting a 23% increase in average active communities during the quarter compared to the prior year, offset by less robust demand in certain markets.
•
Ending community count at September 30, 2015 grew 11% to 250 from 225 at September 30, 2014.
•
Ending backlog value at September 30 was 21% higher in 2015 than in 2014, with 12% more units in backlog and an 8% increase in the average price of orders in backlog.
YEAR TO DATE RESULTS
•
Net earnings were $75.8 million for the first nine months of 2015, compared to $93.0 million for the first nine months of 2014, as a 22% increase in 2015 year-to-date home closing revenue was offset by reduced home closing margins impacted by impairments and the $4.1 million litigation-related charge in the third quarter of 2015.

3


•
Home closings for the first three quarters of the year increased 15% over 2014, and average sales prices increased 6% over the same period.
•
Year-to-date home closing gross margin in 2015 was 18.9%, compared to 21.6% for 2014, reflecting higher land and construction costs with less home price appreciation in 2015, in addition to $4.0 million of real estate related impairments through the first nine months of 2015. Prior year margins benefited from a disproportionate rise in home prices relative to land and construction costs increases during 2013 and early 2014.
•
Total commissions and selling expenses represented 7.6% of year-to-date 2015 home closing revenue, compared to 7.4% in 2014. General and administrative expenses declined to 4.8% of total closing revenue in 2015 compared to 5.1% in 2014.
•
Interest expense for the first nine months of the year increased to $12.0 million in 2015 compared to $4.6 million in 2014 due to a higher debt balance in 2015.
BALANCE SHEET
•
The company ended the third quarter of 2015 with $235.4 million in cash and cash equivalents, compared to $103.3 million at December 31, 2014. The increase in cash was primarily due to the issuance of $200 million of senior notes in June 2015, a portion of which was used to acquire real estate.
•
Real estate assets increased to $2.09 billion at September 30, 2015, compared to $1.88 billion at December 31, 2014, as the balance of homes under contract under construction increased $176.6 million, accounting for most of the increase.
•
Net debt-to-capital ratio at quarter-end of 43.1% was consistent with the 42.9% ratio at December 31, 2014.
•
In June 2015, the company issued $200 million of 6.0% senior unsecured notes with a maturity date of June 2025, and also extended the maturity of its $500 million revolving credit facility by one year to July 2019 in order to provide ample liquidity for future growth.
•
Total lot supply at the end of the quarter was approximately 29,000, compared to approximately 29,500 at September 30, 2014. Based on trailing twelve months closings, total lots at September 30, 2015 represented approximately a 4.5 year supply of lots.


4


CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 11:00 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/10072723.
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.
A replay of the call will be available through November 12, 2015, beginning at 1:00 p.m. ET on October 29, 2015 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10072723. 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 September 30,
 
Nine Months Ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Homebuilding:
 
 
 
 
 
 
 
 
Home closing revenue
$
661,884

 
$
545,524

 
$
1,770,184

 
$
1,454,103

 
Land closing revenue
8,072

 
11,252

 
16,285

 
16,622

 
Total closing revenue
669,956

 
556,776

 
1,786,469

 
1,470,725

 
Cost of home closings
(536,267
)
 
(434,286
)
 
(1,434,843
)
 
(1,140,305
)
 
Cost of land closings
(7,445
)
 
(11,729
)
 
(14,992
)
 
(18,084
)
 
Total cost of closings
(543,712
)
 
(446,015
)
 
(1,449,835
)
 
(1,158,389
)
 
Home closing gross profit
125,617

 
111,238

 
335,341

 
313,798

 
Land closing gross profit/(loss)
627

 
(477
)
 
1,293

 
(1,462
)
 
Total closing gross profit
126,244

 
110,761

 
336,634

 
312,336

Financial Services:
 
 
 
 
 
 
 
 
Revenue
3,000

 
2,749

 
8,276

 
7,099

 
Expense
(1,253
)
 
(1,238
)
 
(3,914
)
 
(3,444
)
 
Earnings from financial services unconsolidated entities and other, net
3,854

 
2,783

 
9,155

 
7,281

 
Financial services profit
5,601

 
4,294

 
13,517

 
10,936

Commissions and other sales costs
(48,097
)
 
(40,211
)
 
(134,876
)
 
(107,250
)
General and administrative expenses
(28,774
)
 
(29,218
)
 
(86,074
)
 
(75,460
)
Loss from other unconsolidated entities, net
(123
)
 
(134
)
 
(415
)
 
(364
)
Interest expense
(4,187
)
 
(460
)
 
(11,962
)
 
(4,569
)
Other income/(expense), net
(3,996
)
 
1,998

 
(3,445
)
 
6,395

Earnings before income taxes
46,668

 
47,030

 
113,379

 
142,024

Provision for income taxes
(16,360
)
 
(14,453
)
 
(37,538
)
 
(48,991
)
Net earnings
$
30,308

 
$
32,577

 
$
75,841

 
$
93,033

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
Earnings per share
$
0.76

 
$
0.83

 
$
1.92

 
$
2.39

 
Weighted average shares outstanding
39,663

 
39,123

 
39,568

 
38,977

 
Diluted
 
 
 
 
 
 
 
 
Earnings per share
$
0.73

 
$
0.79

 
$
1.83

 
$
2.27

 
Weighted average shares outstanding
42,192

 
41,656

 
42,134

 
41,564





6



Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
September 30, 2015
 
December 31, 2014
Assets:
 
 
 
 
Cash and cash equivalents
 
$
235,409

 
$
103,333

Other receivables
 
59,617

 
56,763

Real estate (1)
 
2,088,690

 
1,877,682

Real estate not owned
 
—

 
4,999

Deposits on real estate under option or contract
 
91,526

 
94,989

Investments in unconsolidated entities
 
10,374

 
10,780

Property and equipment, net
 
34,403

 
32,403

Deferred tax asset
 
66,850

 
64,137

Prepaids, other assets and goodwill
 
77,017

 
71,052

Total assets
 
$
2,663,886

 
$
2,316,138

Liabilities:
 
 
 
 
Accounts payable
 
$
113,869

 
$
83,619

Accrued liabilities
 
161,803

 
154,144

Home sale deposits
 
39,587

 
29,379

Liabilities related to real estate not owned
 
—

 
4,299

Loans payable and other borrowings
 
41,898

 
30,722

Senior and convertible senior notes
 
1,104,060

 
904,486

Total liabilities
 
1,461,217

 
1,206,649

Stockholders' Equity:
 
 
 
 
Preferred stock
 
—

 
—

Common stock
 
397

 
391

Additional paid-in capital
 
556,121

 
538,788

Retained earnings
 
646,151

 
570,310

Total stockholders’ equity
 
1,202,669

 
1,109,489

Total liabilities and stockholders’ equity
 
$
2,663,886

 
$
2,316,138


(1) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
505,527

 
$
328,931

Unsold homes, completed and under construction
 
301,528

 
302,288

Model homes
 
135,323

 
109,614

Finished home sites and home sites under development
 
1,146,312

 
1,136,849

Total real estate
 
$
2,088,690

 
$
1,877,682







7


Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
 
    
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Depreciation and amortization
$
3,565

 
$
2,972

 
$
10,294

 
$
8,154

 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
Capitalized interest, beginning of period
$
58,870

 
$
44,355

 
$
54,060

 
$
32,992

Interest incurred
17,857

 
14,695

 
49,665

 
43,333

Interest expensed
(4,187
)
 
(460
)
 
(11,962
)
 
(4,569
)
Interest amortized to cost of home and land closings
(11,144
)
 
(8,135
)
 
(30,367
)
 
(21,301
)
Capitalized interest, end of period
$
61,396

 
$
50,455

 
$
61,396

 
$
50,455

 
 
 
 
 
 
 
 
 
September 30, 2015
 
December 31, 2014
 
 
 
 
Notes payable and other borrowings
$
1,145,958

 
$
935,208

 
 
 
 
Stockholders' equity
1,202,669

 
1,109,489

 
 
 
 
Total capital
2,348,627

 
2,044,697

 
 
 
 
Debt-to-capital

48.8
%
 
45.7
%
 
 
 
 
Notes payable and other borrowings
$
1,145,958

 
$
935,208

 
 
 
 
Less: cash and cash equivalents
(235,409
)
 
(103,333
)
 
 
 
 
Net debt
910,549

 
831,875

 
 
 
 
Stockholders’ equity
1,202,669

 
1,109,489

 
 
 
 
Total net capital
$
2,113,218

 
$
1,941,364

 
 
 
 
Net debt-to-capital
43.1
%
 
42.9
%
 
 
 

 



8


Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands) (unaudited)
 
 
Nine Months Ended September 30,
 
 
2015
 
2014
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
75,841

 
$
93,033

Adjustments to reconcile net earnings to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
10,294

 
8,154

Stock-based compensation
 
12,418

 
9,035

Excess income tax benefit from stock-based awards
 
(2,040
)
 
(2,197
)
Equity in earnings from unconsolidated entities
 
(8,740
)
 
(6,917
)
Distribution of earnings from unconsolidated entities
 
9,446

 
8,784

Other
 
1,246

 
8,361

Changes in assets and liabilities:
 
 
 
 
Increase in real estate
 
(198,520
)
 
(343,763
)
Decrease/(increase) in deposits on real estate under option or contract
 
2,719

 
(27,552
)
Increase in receivables, prepaids and other assets
 
(6,067
)
 
(19,502
)
Increase in accounts payable and accrued liabilities
 
39,949

 
33,920

Increase in home sale deposits
 
10,208

 
9,015

Net cash used in operating activities
 
(53,246
)
 
(229,629
)
Cash flows from investing activities:
 
 
 
 
Investments in unconsolidated entities
 
(300
)
 
(245
)
Purchases of property and equipment
 
(12,334
)
 
(16,367
)
Proceeds from sales of property and equipment
 
92

 
173

Maturities of investments and securities
 
—

 
115,584

Payments to purchase investments and securities
 
—

 
(35,697
)
Cash paid for acquisitions
 
—

 
(130,677
)
Net cash used in investing activities
 
(12,542
)
 
(67,229
)
Cash flows from financing activities:
 
 
 
 
Repayment of loans payable and other borrowings
 
(4,044
)
 
(6,524
)
Proceeds from issuance of senior notes
 
200,000

 
—

Debt issuance costs
 
(3,013
)
 
—

Proceeds from issuance of common stock, net
 
—

 
110,420

Excess income tax benefit from stock-based awards
 
2,040

 
2,197

Proceeds from stock option exercises
 
2,881

 
734

Net cash provided by financing activities
 
197,864

 
106,827

Net increase/(decrease) in cash and cash equivalents
 
132,076

 
(190,031
)
Beginning cash and cash equivalents
 
103,333

 
274,136

Ending cash and cash equivalents (2)
 
$
235,409

 
$
84,105

 
(2) Ending cash and cash equivalents excludes investments and securities of $9.9 million as of September 30, 2014.

9


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands) (unaudited)

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
September 30, 2015
 
September 30, 2014
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
302

 
$
92,888

 
236

 
$
77,793

California
 
236

 
120,387

 
196

 
97,260

Colorado
 
123

 
56,927

 
114

 
49,792

West Region
 
661

 
270,202

 
546

 
224,845

Texas
 
517

 
183,455

 
584

 
178,614

Central Region
 
517

 
183,455

 
584

 
178,614

Florida
 
202

 
90,285

 
164

 
61,713

Georgia
 
62

 
20,663

 
37

 
11,899

North Carolina
 
165

 
63,532

 
104

 
43,413

South Carolina
 
80

 
25,812

 
37

 
11,494

Tennessee
 
25

 
7,935

 
50

 
13,546

East Region
 
534

 
208,227

 
392

 
142,065

Total
 
1,712

 
$
661,884

 
1,522

 
$
545,524

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
272

 
$
96,867

 
198

 
$
67,753

California
 
203

 
110,076

 
157

 
87,610

Colorado
 
84

 
43,782

 
153

 
66,744

West Region
 
559

 
250,725

 
508

 
222,107

Texas
 
452

 
165,206

 
537

 
181,127

Central Region
 
452

 
165,206

 
537

 
181,127

Florida
 
227

 
94,114

 
207

 
86,145

Georgia
 
67

 
23,143

 
31

 
9,447

North Carolina
 
138

 
57,168

 
128

 
47,862

South Carolina
 
88

 
26,766

 
44

 
14,225

Tennessee
 
36

 
12,855

 
45

 
12,730

East Region
 
556

 
214,046

 
455

 
170,409

Total
 
1,567

 
$
629,977

 
1,500

 
$
573,643




















10


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
September 30, 2015
 
September 30, 2014
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
717

 
$
227,367

 
699

 
$
234,181

California
 
565

 
302,573

 
546

 
272,254

Colorado
 
364

 
166,914

 
318

 
142,006

West Region
 
1,646

 
696,854

 
1,563

 
648,441

Texas
 
1,466

 
510,439

 
1,511

 
456,375

Central Region
 
1,466

 
510,439

 
1,511

 
456,375

Florida
 
589

 
254,607

 
482

 
189,542

Georgia
 
156

 
49,178

 
37

 
11,899

North Carolina
 
389

 
148,721

 
248

 
102,119

South Carolina
 
247

 
77,630

 
37

 
11,494

Tennessee
 
110

 
32,755

 
121

 
34,233

East Region
 
1,491

 
562,891

 
925

 
349,287

Total
 
4,603

 
$
1,770,184

 
3,999

 
$
1,454,103

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
880

 
$
290,172

 
665

 
$
220,772

California
 
750

 
419,987

 
599

 
315,270

Colorado
 
454

 
213,610

 
417

 
185,993

West Region
 
2,084

 
923,769

 
1,681

 
722,035

Texas
 
1,644

 
574,533

 
1,889

 
613,821

Central Region
 
1,644

 
574,533

 
1,889

 
613,821

Florida
 
693

 
295,634

 
560

 
218,651

Georgia
 
197

 
64,051

 
31

 
9,447

North Carolina
 
467

 
191,460

 
311

 
124,943

South Carolina
 
283

 
85,767

 
44

 
14,225

Tennessee
 
164

 
53,390

 
156

 
43,996

East Region
 
1,804

 
690,302

 
1,102

 
411,262

Total
 
5,532

 
$
2,188,604

 
4,672

 
$
1,747,118

 
 
 
 
 
 
 
 
 
Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
355

 
$
129,023

 
244

 
$
83,830

California
 
397

 
241,377

 
278

 
150,479

Colorado
 
358

 
168,329

 
301

 
136,371

West Region
 
1,110

 
538,729

 
823

 
370,680

Texas
 
1,036

 
373,135

 
1,170

 
403,101

Central Region
 
1,036

 
373,135

 
1,170

 
403,101

Florida
 
341

 
143,597

 
286

 
118,381

Georgia
 
94

 
31,457

 
65

 
21,322

North Carolina
 
263

 
110,907

 
196

 
77,138

South Carolina
 
106

 
34,257

 
90

 
31,915

Tennessee
 
93

 
32,790

 
75

 
21,204

East Region
 
897

 
353,008

 
712

 
269,960

Total
 
3,043

 
$
1,264,872

 
2,705

 
$
1,043,741



11


Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
September 30, 2015
 
September 30, 2014
 
 
Ending
 
Average
 
Ending
 
Average
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
41

 
42.0

 
42

 
42.0

California
 
26

 
23.0

 
22

 
18.5

Colorado
 
15

 
15.5

 
16

 
14.5

West Region
 
82

 
80.5

 
80

 
75.0

Texas
 
70

 
68.0

 
65

 
67.0

Central Region
 
70

 
68.0

 
65

 
67.0

Florida
 
31

 
30.5

 
26

 
22.0

Georgia
 
17

 
16.5

 
11

 
5.5

North Carolina
 
25

 
25.0

 
20

 
16.5

South Carolina
 
17

 
18.5

 
19

 
9.5

Tennessee
 
8

 
6.0

 
4

 
4.5

East Region
 
98

 
96.5

 
80

 
58.0

Total
 
250

 
245.0

 
225

 
200.0



 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
September 30, 2015
 
September 30, 2014
 
 
Ending
 
Average
 
Ending
 
Average
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
41

 
41.0

 
42

 
41.0

California
 
26

 
25.0

 
22

 
22.0

Colorado
 
15

 
16.0

 
16

 
15.0

West Region
 
82

 
82.0

 
80

 
78.0

Texas
 
70

 
64.5

 
65

 
67.5

Central Region
 
70

 
64.5

 
65

 
67.5

Florida
 
31

 
30.0

 
26

 
23.0

Georgia
 
17

 
15.0

 
11

 
5.5

North Carolina
 
25

 
23.0

 
20

 
18.5

South Carolina
 
17

 
18.5

 
19

 
9.5

Tennessee
 
8

 
6.5

 
4

 
4.5

East Region
 
98

 
93.0

 
80

 
61.0

Total
 
250

 
239.5

 
225

 
206.5




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About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2014. 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 Bay area, southern coastal and Inland Empire markets in 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 90,000 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, 2014 and 2015, for innovation and industry leadership in energy efficient homebuilding.
For more information, visit investors.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 with respect to future revenue growth and earnings expansion, margin expansion in new markets, estimated home closing revenue and diluted EPS for the fourth quarter of 2015, expectations to continue to grow revenue and expand earnings over the next year, the benefits of expansion into new markets, and the approval of legislation to renew federal energy tax credits.
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 us or our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates; fluctuations in home prices in our markets; weakness in the homebuilding market resulting from a setback in the current economic recovery due to lower energy 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; 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 or severe weather conditions; competition; construction defect and home warranty claims; adverse legal rulings; our success in prevailing on contested tax positions; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; changes in, or 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; our ability to take certain actions

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because of restrictions contained in the indentures for our senior notes; our ability to raise additional capital when and if needed; our credit ratings; 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; expiration or non-renewal of current or anticipated tax credits available to us; 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, 2014 and subsequent quarterly reports on Forms 10-Q under the caption "Risk Factors," which can be found on our website.





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