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

Meritage Homes reports fourth quarter 2015 results, including 23% order growth, 11% increase in home closing revenue and 6% increase in diluted EPS at $1.26

SCOTTSDALE, Ariz., January 28, 2016 - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2015.
.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 
    
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2015
 
2014
 
%Chg
 
2015
 
2014
 
%Chg
Homes closed (units)
 
1,919

 
1,863

 
3
%
 
6,522

 
5,862

 
11
 %
Home closing revenue
 
$
761,372

 
$
688,288

 
11
%
 
$
2,531,556

 
$
2,142,391

 
18
 %
Average sales price - closings
 
$
397

 
$
369

 
8
%
 
$
388

 
$
365

 
6
 %
Home orders (units)
 
1,568

 
1,272

 
23
%
 
7,100

 
5,944

 
19
 %
Home order value
 
$
634,181

 
$
490,999

 
29
%
 
$
2,822,785

 
$
2,238,117

 
26
 %
Average sales price - orders
 
$
404

 
$
386

 
5
%
 
$
398

 
$
377

 
6
 %
Ending backlog (units)
 
 
 
 
 
 
 
2,692

 
2,114

 
27
 %
Ending backlog value
 
 
 
 
 
 
 
$
1,137,681

 
$
846,452

 
34
 %
Average sales price - backlog
 


 


 

 
$
423

 
$
400

 
6
 %
Net earnings
 
$
52,897

 
$
49,208

 
7
%
 
$
128,738

 
$
142,241

 
(9
)%
Diluted EPS
 
$
1.26

 
$
1.19

 
6
%
 
$
3.09

 
$
3.46

 
(11
)%




1


MANAGEMENT COMMENTS
“We finished the full year with double-digit growth over 2014 in closings, orders and backlog, with particularly strong performance in our east and west regions,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our full year orders benefited from significant growth in the fourth quarter -- including a 16% increase in Texas -- reflecting a higher absorption pace within most of our markets, in addition to more actively selling communities.
“We achieved a 15% increase over 2014 in our pretax earnings for the fourth quarter,” continued Mr. Hilton. “Our home closing revenue increased 11% as we closed more homes at higher average prices, which in turn provided greater overhead leverage and more than offset a lower gross margin on home closings. We also achieved a 100 basis point improvement in our percentage of selling, general and administrative expenses from cost controls, in addition to higher closing revenue.”
Mr. Hilton added, “With continued healthy market conditions as we’ve been experiencing in most of our divisions, we are confident in our prospects for 2016, especially considering that we entered the year with a backlog valued at over $1.1 billion -- 34% higher than it was a year ago.
“We currently anticipate closing between 7,000 and 7,500 homes in 2016 and growing our community count 5-10% by the end of the year,” concluded Mr. Hilton. “Furthermore, considering longer-term growth prospects for our industry, we believe our goal of delivering 10,000 homes in 2018 is achievable.”
FOURTH QUARTER RESULTS
•
Net earnings increased 7% to $52.9 million ($1.26 per diluted share) for the fourth quarter of 2015, compared to prior year net earnings of $49.2 million ($1.19 per diluted share), primarily reflecting increased revenue and lower overhead expenses as a percentage of revenue, partially offset by lower home closing gross margin, higher interest expense and a higher effective tax rate.
•
Home closing revenue increased 11% due to a 3% increase in home closings, combined with an 8% increase in average price over the prior year period. The west region (California, Colorado and Arizona) grew home closing revenue by 27% over 2014, followed by the east region’s 18% increase (Florida, the Carolinas, Georgia and Tennessee), and a 14% decrease in the central region (Texas) due in part to the impact of lower oil prices on the Houston market.
•
Total value of homes ordered increased 29%, combining a 23% increase in orders with a 5% increase in average sales prices. Orders increased in every state but Colorado, where average community count was

2


down 6%. Total order value was up across the board in the fourth quarter of 2015, including Texas, where orders and order value increased 16% and 29%, respectively, over the fourth quarter of 2014.
•
Total active community count of 254 at year-end 2015 was 11% higher than 2014 year-end, with increases concentrated in the east and central regions, where the average actively selling communities were up 18% and 15% year-over-year in the fourth quarter, respectively. Average orders per community also increased 11% to 6.2 in the fourth quarter of 2015 from 5.6 in the fourth quarter of 2014.
•
Order cancellation rate decreased to 12% in the fourth quarter of 2015 from 17% in the fourth quarter of 2014, reflecting buyer confidence and rising home values.
•
Home closing gross profit increased 5% over the prior year due to higher home closing revenue, partially offset by a decline in home closing gross margin. Fourth quarter 2015 home closing margin was 19.3% compared to 20.3% in the fourth quarter of 2014, due to increases in land prices and overall construction costs exceeding home price appreciation during 2015.
•
Commissions and other sales costs decreased 20 basis points from the prior year to 7.0% of home closing revenue, benefitting from higher closing revenue and tighter cost controls in the fourth quarter of 2015, compared to 7.2% of home closing revenue in the fourth quarter of 2014.
•
General and administrative expenses decreased by 80 basis points to 3.4% of total closing revenue in the fourth quarter of 2015, compared to 4.2% of total closing revenue in the previous year, reflecting greater leverage from higher closing revenue and various cost reductions.
•
Interest expense increased to $4.0 million or 0.5% of total closing revenue in the fourth quarter of 2015, compared to $0.6 million or 0.1% of total closing revenue in the fourth quarter of 2014, mainly due to higher long-term debt balances in 2015.
•
Earnings before income taxes increased 15% to $76.1 million in the fourth quarter of 2015 compared to $66.4 million in the fourth quarter of 2014, equating to pretax margins of 9.7% in 2015 and 9.5% in 2014. The effective tax rate increased to 30% in the fourth quarter of 2015 from 26% in 2014.
FULL YEAR RESULTS
•
Net income for the full year decreased 9% to $128.7 million in 2015 compared to $142.2 million in 2014 as higher revenue was offset by a lower gross margin on home closings, $2.9 million of incremental real estate related impairments compared to 2014, and a $4.1 million litigation-related charge in the third quarter of 2015.

3


•
Home closings and closing revenue increased 11% and 18%, respectively, for 2015 over 2014, led by higher volumes and average prices in the east region, which grew home closing revenue 45% in 2015, followed by 13% and 3% increases in the west and central (Texas) regions, respectively.
•
Full year home closing gross margin of 19.0% compared to 21.2% in 2014 reflects price inflation in both land and construction costs, which was only partially offset by home price increases. Gross margin was also reduced by $6.6 million of real estate related impairments in 2015, compared to $3.7 million in 2014.
•
Despite lower gross margin, home closing profits increased 6% over 2014 on higher closing revenue in 2015.
•
Financial services profit increased 19% in 2015 to $19.3 million from $16.2 million in 2014.
•
Net orders for the year increased 19% in 2015 over 2014, and total order value increased 26% year over year, aided by a 6% increase in average sales prices in addition to a full year of orders from Legendary Communities, acquired in August 2014.
•
The total value of orders in backlog at year-end 2015 was 34% higher than the prior year’s ending backlog, reflecting a 27% increase in units in backlog coupled with a 6% increase in average price.
BALANCE SHEET
•
Cash and cash equivalents at December 31, 2015, totaled $262.2 million, compared to $103.3 million at December 31, 2014, reflecting the issuance of $200 million of new senior notes in early June 2015, a portion of which was deployed during the year to fund the company’s growth.
•
Real estate assets increased by $220.6 million during the year, ending at $2.1 billion at December 31, 2015. Approximately 58% of that increase was attributable to additional work-in-process inventory for homes in backlog that were under construction. The company invested a total of approximately $709 million in land and development during 2015, less than originally planned due to high land prices in the west, slowing in the Houston market and repositioning of assets in the east.
•
Meritage ended the year 2015 with approximately 27,800 total lots under control, compared to approximately 30,300 total lots at December 31, 2014, representing 4.3 and 5.2 years’ supply of lots, respectively, based on trailing twelve months’ closings. Much of the reduction was due to strategic sales of excess assets in certain markets, as well as the termination of certain lot purchase options in southeastern markets.
•
Net debt-to-capital ratio at December 31, 2015 decreased to 40.7% from 42.9% at December 31, 2014.


4


CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 1:00 p.m. Eastern Time (11:00 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/10078808.
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 2:00 p.m. ET on January 29, 2016 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 10078808.
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,
 
 
 
2015
 
2014
 
2015
 
2014
Homebuilding:
 
 
 
 
 
 
 
 
 
Home closing revenue
 
$
761,372

 
$
688,288

 
$
2,531,556

 
$
2,142,391

 
Land closing revenue
 
20,241

 
10,630

 
36,526

 
27,252

 
Total closing revenue
 
781,613

 
698,918

 
2,568,082

 
2,169,643

 
Cost of home closings
 
(614,794
)
 
(548,371
)
 
(2,049,637
)
 
(1,688,676
)
 
Cost of land closings
 
(14,744
)
 
(10,266
)
 
(29,736
)
 
(28,350
)
 
Total cost of closings
 
(629,538
)
 
(558,637
)
 
(2,079,373
)
 
(1,717,026
)
 
Home closing gross profit
 
146,578

 
139,917

 
481,919

 
453,715

 
Land closing gross profit/(loss)
 
5,497

 
364

 
6,790

 
(1,098
)
 
Total closing gross profit
 
152,075

 
140,281

 
488,709

 
452,617

Financial Services:
 
 
 
 
 
 
 
 
 
Revenue
 
3,101

 
3,022

 
11,377

 
10,121

 
Expense
 
(1,289
)
 
(1,368
)
 
(5,203
)
 
(4,812
)
 
Earnings from financial services unconsolidated entities and other, net
 
3,942

 
3,588

 
13,097

 
10,869

 
Financial services profit
 
5,754

 
5,242

 
19,271

 
16,178

Commissions and other sales costs
 
(53,542
)
 
(49,492
)
 
(188,418
)
 
(156,742
)
General and administrative expenses
 
(26,775
)
 
(29,138
)
 
(112,849
)
 
(104,598
)
Income/(loss) from other unconsolidated entities, net
 
77

 
(83
)
 
(338
)
 
(447
)
Interest expense
 
(4,003
)
 
(594
)
 
(15,965
)
 
(5,163
)
Other income/(loss), net
 
2,499

 
177

 
(946
)
 
6,572

Earnings before income taxes
 
76,085

 
66,393

 
189,464

 
208,417

Provision for income taxes
 
(23,188
)
 
(17,185
)
 
(60,726
)
 
(66,176
)
Net earnings
 
$
52,897

 
$
49,208

 
$
128,738

 
$
142,241

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.33

 
$
1.26

 
$
3.25

 
$
3.65

 
Weighted average shares outstanding
 
39,667

 
39,133

 
39,593

 
39,017

 
Diluted
 
 
 
 
 
 
 
 
 
Earnings per share
 
$
1.26

 
$
1.19

 
$
3.09

 
$
3.46

 
Weighted average shares outstanding
 
42,214

 
41,696

 
42,164

 
41,614





6




Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
 
 
 
December 31, 2015
 
December 31, 2014
Assets:
 
 
 
 
Cash and cash equivalents
 
$
262,208

 
$
103,333

Other receivables
 
57,296

 
56,763

Real estate (1)
 
2,098,302

 
1,877,682

Real estate not owned
 
—

 
4,999

Deposits on real estate under option or contract
 
87,839

 
94,989

Investments in unconsolidated entities
 
11,370

 
10,780

Property and equipment, net
 
33,970

 
32,403

Deferred tax asset
 
59,147

 
64,137

Prepaids, other assets and goodwill
 
80,390

 
71,052

Total assets
 
$
2,690,522

 
$
2,316,138

Liabilities:
 
 
 
 
Accounts payable
 
$
106,440

 
$
83,619

Accrued liabilities
 
161,163

 
154,144

Home sale deposits
 
36,197

 
29,379

Liabilities related to real estate not owned
 
—

 
4,299

Loans payable and other borrowings
 
23,867

 
30,722

Senior and convertible senior notes
 
1,103,918

 
904,486

Total liabilities
 
1,431,585

 
1,206,649

Stockholders' Equity:
 
 
 
 
Preferred stock
 
—

 
—

Common stock
 
397

 
391

Additional paid-in capital
 
559,492

 
538,788

Retained earnings
 
699,048

 
570,310

Total stockholders’ equity
 
1,258,937

 
1,109,489

Total liabilities and stockholders’ equity
 
$
2,690,522

 
$
2,316,138

(1) Real estate – Allocated costs:
 
 
 
 
Homes under contract under construction
 
$
456,138

 
$
328,931

Unsold homes, completed and under construction
 
307,425

 
302,288

Model homes
 
138,546

 
109,614

Finished home sites and home sites under development
 
1,196,193

 
1,136,849

Total real estate
 
$
2,098,302

 
$
1,877,682







7


Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
 
    
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2015
 
2014
 
2015
 
2014
Depreciation and amortization
$
3,947

 
$
3,460

 
$
14,241

 
$
11,614

 
 
 
 
 
 
 
 
Summary of Capitalized Interest:
 
 
 
 
 
 
 
Capitalized interest, beginning of period
$
61,396

 
$
50,455

 
$
54,060

 
$
32,992

Interest incurred
17,877

 
15,041

 
67,542

 
58,374

Interest expensed
(4,003
)
 
(594
)
 
(15,965
)
 
(5,163
)
Interest amortized to cost of home and land closings
(14,068
)
 
(10,842
)
 
(44,435
)
 
(32,143
)
Capitalized interest, end of period
$
61,202

 
$
54,060

 
$
61,202

 
$
54,060

 
 
 
 
 
 
 
 
 
December 31, 2015
 
December 31, 2014
 
 
 
 
Notes payable and other borrowings
$
1,127,785

 
$
935,208

 
 
 
 
Stockholders' equity
1,258,937

 
1,109,489

 
 
 
 
Total capital
2,386,722

 
2,044,697

 
 
 
 
Debt-to-capital
47.3
%
 
45.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable and other borrowings
$
1,127,785

 
$
935,208

 
 
 
 
Less: cash and cash equivalents
(262,208
)
 
(103,333
)
 
 
 
 
Net debt
865,577

 
831,875

 
 
 
 
Stockholders’ equity
1,258,937

 
1,109,489

 
 
 
 
Total net capital
$
2,124,514

 
$
1,941,364

 
 
 
 
Net debt-to-capital
40.7
%
 
42.9
%
 
 
 

 



8


Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands) (unaudited)
 
 
Twelve Months Ended December 31,
 
 
2015
 
2014
Cash flows from operating activities:
 
 
 
 
Net earnings
 
$
128,738

 
$
142,241

Adjustments to reconcile net earnings to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
14,241

 
11,614

Stock-based compensation
 
15,781

 
12,211

Excess income tax benefit from stock-based awards
 
(2,043
)
 
(2,297
)
Equity in earnings from unconsolidated entities
 
(12,759
)
 
(10,422
)
Distribution of earnings from unconsolidated entities
 
12,650

 
11,613

Other
 
11,530

 
10,149

Changes in assets and liabilities:
 
 
 
 
Increase in real estate
 
(209,407
)
 
(338,594
)
Decrease/(Increase) in deposits on real estate under option or contract
 
6,316

 
(42,278
)
Increase in receivables, prepaids and other assets
 
(7,083
)
 
(25,032
)
Increase in accounts payable and accrued liabilities
 
31,883

 
14,688

Increase in home sale deposits
 
6,818

 
4,859

Net cash used in operating activities
 
(3,335
)
 
(211,248
)
Cash flows from investing activities:
 
 
 
 
Investments in unconsolidated entities
 
(481
)
 
(515
)
Distributions of capital from unconsolidated entities
 
—

 
65

Purchases of property and equipment
 
(16,092
)
 
(20,788
)
Proceeds from sales of property and equipment
 
86

 
262

Maturities/sales of investments and securities
 
1,555

 
124,599

Payments to purchase investments and securities
 
(1,555
)
 
(35,813
)
Cash paid for acquisitions
 
—

 
(130,677
)
Net cash used in by investing activities
 
(16,487
)
 
(62,867
)
Cash flows from financing activities:
 
 
 
 
Repayment of loans payable and other borrowings
 
(23,226
)
 
(10,447
)
Proceeds from issuance of senior notes
 
200,000

 
—

Proceeds from issuance of common stock, net
 
—

 
110,420

Debt issuance costs
 
(3,006
)
 
—

Excess income tax benefit from stock-based awards
 
2,043

 
2,297

Proceeds from stock option exercises
 
2,886

 
1,042

Net cash provided by financing activities
 
178,697

 
103,312

Net increase/(decrease) in cash and cash equivalents
 
158,875

 
(170,803
)
Beginning cash and cash equivalents
 
103,333

 
274,136

Ending cash and cash equivalents
 
$
262,208

 
$
103,333


9


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
December 31, 2015
 
December 31, 2014
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
291

 
$
98,004

 
225

 
$
73,101

California
 
323

 
175,601

 
239

 
122,851

Colorado
 
131

 
57,211

 
146

 
64,696

West Region
 
745

 
330,816

 
610

 
260,648

Texas
 
559

 
194,879

 
713

 
227,342

Central Region
 
559

 
194,879

 
713

 
227,342

Florida
 
254

 
106,520

 
217

 
87,503

Georgia
 
72

 
23,735

 
53

 
17,734

North Carolina
 
162

 
66,921

 
138

 
55,870

South Carolina
 
83

 
24,217

 
75

 
24,747

Tennessee
 
44

 
14,284

 
57

 
14,444

East Region
 
615

 
235,677

 
540

 
200,298

Total
 
1,919

 
$
761,372

 
1,863

 
$
688,288

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
253

 
$
86,887

 
173

 
$
55,489

California
 
215

 
118,370

 
173

 
96,335

Colorado
 
105

 
51,033

 
113

 
49,958

West Region
 
573

 
256,290

 
459

 
201,782

Texas
 
465

 
171,938

 
401

 
133,282

Central Region
 
465

 
171,938

 
401

 
133,282

Florida
 
200

 
80,929

 
168

 
71,692

Georgia
 
73

 
25,704

 
41

 
12,996

North Carolina
 
159

 
67,492

 
127

 
46,900

South Carolina
 
65

 
20,071

 
55

 
18,952

Tennessee
 
33

 
11,757

 
21

 
5,395

East Region
 
530

 
205,953

 
412

 
155,935

Total
 
1,568

 
$
634,181

 
1,272

 
$
490,999


10


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
 
 
Twelve Months Ended
 
 
December 31, 2015
 
December 31, 2014
 
 
Homes
 
Value
 
Homes
 
Value
Homes Closed:
 
 
 
 
 
 
 
 
Arizona
 
1,008

 
$
325,371

 
924

 
$
307,282

California
 
888

 
478,174

 
785

 
395,105

Colorado
 
495

 
224,125

 
464

 
206,702

West Region
 
2,391

 
1,027,670

 
2,173

 
909,089

Texas
 
2,025

 
705,318

 
2,224

 
683,717

Central Region
 
2,025

 
705,318

 
2,224

 
683,717

Florida
 
843

 
361,127

 
699

 
277,045

Georgia
 
228

 
72,913

 
90

 
29,633

North Carolina
 
551

 
215,642

 
386

 
157,989

South Carolina
 
330

 
101,847

 
112

 
36,241

Tennessee
 
154

 
47,039

 
178

 
48,677

East Region
 
2,106

 
798,568

 
1,465

 
549,585

Total
 
6,522

 
$
2,531,556

 
5,862

 
$
2,142,391

Homes Ordered:
 
 
 
 
 
 
 
 
Arizona
 
1,133

 
$
377,059

 
838

 
$
276,261

California
 
965

 
538,357

 
772

 
411,605

Colorado
 
559

 
264,643

 
530

 
235,951

West Region
 
2,657

 
1,180,059

 
2,140

 
923,817

Texas
 
2,109

 
746,471

 
2,290

 
747,103

Central Region
 
2,109

 
746,471

 
2,290

 
747,103

Florida
 
893

 
376,563

 
728

 
290,343

Georgia
 
270

 
89,755

 
72

 
22,443

North Carolina
 
626

 
258,952

 
438

 
171,843

South Carolina
 
348

 
105,838

 
99

 
33,177

Tennessee
 
197

 
65,147

 
177

 
49,391

East Region
 
2,334

 
896,255

 
1,514

 
567,197

Total
 
7,100

 
$
2,822,785

 
5,944

 
$
2,238,117

 
 
 
 
 
 
 
 
 
Order Backlog:
 
 
 
 
 
 
 
 
Arizona
 
317

 
$
117,906

 
192

 
$
66,218

California
 
289

 
184,146

 
212

 
123,963

Colorado
 
332

 
162,151

 
268

 
121,633

West Region
 
938

 
464,203

 
672

 
311,814

Texas
 
942

 
350,194

 
858

 
309,041

Central Region
 
942

 
350,194

 
858

 
309,041

Florida
 
287

 
118,006

 
237

 
102,570

Georgia
 
95

 
33,426

 
53

 
16,584

North Carolina
 
260

 
111,478

 
185

 
68,168

South Carolina
 
88

 
30,111

 
70

 
26,120

Tennessee
 
82

 
30,263

 
39

 
12,155

East Region
 
812

 
323,284

 
584

 
225,597

Total
 
2,692

 
$
1,137,681

 
2,114

 
$
846,452



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Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
December 31, 2015
 
December 31, 2014
 
 
Ending
 
Average
 
Ending
 
Average
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
41

 
41.0

 
41

 
41.5

California
 
24

 
25.0

 
24

 
23.0

Colorado
 
16

 
15.5

 
17

 
16.5

West Region
 
81

 
81.5

 
82

 
81.0

Texas
 
72

 
71.0

 
59

 
62.0

Central Region
 
72

 
71.0

 
59

 
62.0

Florida
 
31

 
31.0

 
29

 
27.5

Georgia
 
17

 
17.0

 
13

 
12.0

North Carolina
 
26

 
25.5

 
21

 
20.5

South Carolina
 
18

 
17.5

 
20

 
19.5

Tennessee
 
9

 
8.5

 
5

 
4.5

East Region
 
101

 
99.5

 
88

 
84.0

Total
 
254

 
252.0

 
229

 
227.0

 
 
Twelve Months Ended
 
 
December 31, 2015
 
December 31, 2014
 
 
Ending
 
Average
 
Ending
 
Average
Active Communities:
 
 
 
 
 
 
 
 
Arizona
 
41

 
41.0

 
41

 
40.5

California
 
24

 
24.0

 
24

 
23.0

Colorado
 
16

 
16.5

 
17

 
15.5

West Region
 
81

 
81.5

 
82

 
79.0

Texas
 
72

 
65.5

 
59

 
64.5

Central Region
 
72

 
65.5

 
59

 
64.5

Florida
 
31

 
30.0

 
29

 
24.5

Georgia
 
17

 
15.0

 
13

 
6.5

North Carolina
 
26

 
23.5

 
21

 
19.0

South Carolina
 
18

 
19.0

 
20

 
10.0

Tennessee
 
9

 
7.0

 
5

 
5.0

East Region
 
101

 
94.5

 
88

 
65.0

Total
 
254

 
241.5

 
229

 
208.5




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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 belief about its prospects for 2016 and beyond, including that the Company will achieve better results in the east region, expectations with respect to community count and closings for 2016, as well as its goal for 2018 deliveries (closings).
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

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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 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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