Exhibit 99.1
mhlogo1linetaga12.jpg
 
 
Contacts:Emily Tadano, VP Investor Relations
(480) 515-8979 (office)
investors@meritagehomes.com

Meritage Homes reports third quarter 2021 results, including record gross margin of 29.7% and diluted EPS of $5.25

SCOTTSDALE, Ariz., October 27, 2021 - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2021.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
 Three Months Ended September 30,Nine Months Ended September 30,
 20212020% Chg20212020% Chg
Homes closed (units)3,112 3,004 4 %9,275 8,090 15 %
Home closing revenue$1,251,435 $1,133,221 10 %$3,596,060 $3,055,229 18 %
Average sales price - closings$402 $377 7 %$388 $378 3 %
Home orders (units)3,441 3,851 (11)%10,441 10,550 (1)%
Home order value$1,488,951 $1,488,480 — %$4,337,753 $3,958,870 10 %
Average sales price - orders$433 $387 12 %$415 $375 11 %
Ending backlog (units)5,838 5,242 11 %
Ending backlog value$2,555,405 $2,004,981 27 %
Average sales price - backlog$438 $382 15 %
Earnings before income taxes$261,709 $135,506 93 %$643,337 $338,201 90 %
Net earnings$200,752 $109,118 84 %$499,984 $270,948 85 %
Diluted EPS$5.25 $2.84 85 %$13.06 $7.04 86 %



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MANAGEMENT COMMENTS
“During the third quarter of 2021, we navigated ongoing industry-wide supply chain disruptions and produced the highest third quarter of home closings in our Company's history. We delivered 3,112 homes and produced a 10% year-over-year increase in home closing revenue to $1.3 billion. This led to two new Company quarterly records: highest gross margin of 29.7% and highest diluted EPS of $5.25,” said Steven J. Hilton, executive chairman of Meritage Homes. “These strong results reflect the elevated homebuying demand in the market today and our successful operating model.”

“The housing market remained solid,” Phillippe Lord, chief executive officer of Meritage Homes, said. “The continuing demand stemmed from market conditions related to historically-low interest rates and limited housing supply. It also resulted from homebuying activity from millennials and baby boomers, the largest groups fueling demand over the last few quarters. We believe these underlying demographic factors will not fundamentally change in the near future, but may be bumpy if interest rates move materially in a short amount of time."

Mr. Lord continued, "In the third quarter of 2021, we continued metering our orders pace to align our starts with production, but our average absorption pace still remained elevated at 5.0 per month. This compared to our all-time highest third quarter average absorption pace of 5.8 per month in the third quarter of 2020. As a result of our metering efforts, quarterly sales orders of 3,441 homes were 11% lower than prior year despite 5% more average communities year-over-year.”

“Our ending community count increased by 16% year-over-year from 204 at September 30, 2020 to 236 at September 30, 2021. Sequentially, we added 10 net communities from 226 at June 30, 2021," Mr. Lord remarked. "Working through delays in permitting, zoning and entitlement as well as land supply chain constraints, we opened 40 new communities this quarter. With our excellent progress over the last two quarters, we remain confident in our ability to achieve our goal of 300 active communities by mid-2022. The anticipated community growth of over 50% from year end 2020 will position Meritage to expand our market share, leverage our operating costs and drive profitability.”

Mr. Lord added, “We continue to find new land positions while remaining disciplined in our underwriting standards and put about 9,800 net new lots under control during the three months ended September 30, 2021, which compared to approximately 9,000 net new lots under control in the same period in 2020. Our total lot supply is now nearly 70,000 lots, a 46% year-over-year increase compared to nearly 48,000 at September 30, 2020. We invested $526 million in land acquisition and development this quarter. Including this incremental spend, our net debt to capital ratio of 17.5% at September 30, 2021 reflects ample liquidity and a strong balance sheet, which in turn provide us flexibility for further growth in the future.”

Mr. Lord concluded, “As we continue to manage through the current supply issues, we are projecting 12,600-12,900 home closings for the full year 2021, which we anticipate will generate $5.05-5.15 billion in home closing revenue. Home closing gross margin is projected to be 27.50-27.75%. With an increase to the projected effective tax rate of 23.0%, we expect diluted EPS to be in the range of $18.75-19.40 for 2021, a year-over-year increase of over 70%.”
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THIRD QUARTER RESULTS
•The total orders of 3,441 for the third quarter of 2021 reflected a decrease of 11% year-over-year, driven by a 15% decline in average absorption pace from 5.8 to 5.0 per month. In the third quarter of 2021, we metered our orders pace to address production constraints. This was partially offset by a 5% increase in average communities in 2021. Entry-level represented 84% of third quarter 2021 orders, compared to 69% in the same quarter in 2020. Stemming from the elevated demand for our products over the past few quarters and constrained housing supply, the sustained favorable pricing environment led to year-over-year increases in average sales price ("ASP") for both orders and backlog. Even as our product mix continued to shift toward entry-level homes, ASP on orders in the third quarter of 2021 exceeded $430,000.

•The 10% year-over-year increase in home closing revenue to $1.3 billion for the third quarter of 2021 resulted from 4% higher home closing volume and 7% higher closing ASP. Despite the product mix shift toward entry-level homes, the increase in closing ASP was primarily attributable to the sustained strength in housing demand and the significant price increases the market has absorbed in recent quarters.

•The 820 bps improvement in third quarter 2021 home closing gross margin to 29.7% from 21.5% a year ago mainly resulted from pricing power and leveraging of fixed costs on greater home closing revenue, which more than offset higher lumber prices and increases in other commodity costs.

•Selling, general and administrative expenses ("SG&A") were 9.3% of third quarter 2021 home closing revenue, an 80 bps improvement over 10.1% in the prior year, resulting from greater leverage of fixed expenses on higher home closing revenue, cost savings from technology innovations that particularly benefited our sales and marketing efforts and lower broker commissions.

•The third quarter effective income tax rate was 23.3% in 2021 compared to 19.5% in 2020. Eligible energy tax credits on qualifying energy-efficient homes closed under the Taxpayer Certainty and Disaster Tax Relief Act enacted in December 2019 reduced the rate in both years.

•Third quarter 2021 pre-tax margin increased 880 bps to 20.7%, compared to 11.9% in the third quarter of 2020. Net earnings were $200.7 million ($5.25 per diluted share) for the third quarter of 2021, an 84% increase over $109.1 million ($2.84 per diluted share) for the third quarter of 2020. Strong earnings growth reflected higher closing volume, pricing power, expanded gross margin and the improved overhead leverage, which led to an 85% year-over-year improvement in earnings per diluted share.

YEAR TO DATE RESULTS
•Total orders for the first nine months of 2021 decreased 1% year-over-year, driven by 7% greater average absorption pace, offset by a 7% decrease in average community count compared to the first nine months of 2020.

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•Home closing revenue increased 18% in the first nine months of 2021 to $3.6 billion due to 15% improved home closing volume and 3% higher closing ASP given the favorable pricing environment.

•The 640 bps improvement for home closing gross margin in the first nine months of 2021 to 27.4% from 21.0% primarily resulted from higher ASP and better leveraging of fixed costs on greater home closing revenue.

•SG&A expenses improved 90 bps year-over-year to 9.4% of home closing revenue, compared to 10.3% in the first nine months of 2020, due to operating efficiencies and improved leverage of fixed expenses on higher home closing revenue.

•Loss on early extinguishment of debt of $18.2 million was recognized in the first nine months of 2021 in connection with the early redemption in April 2021 of the 7.00% senior notes due 2022.

•The effective tax rate for the first nine months of 2021 was 22.3%, compared to 19.9% for the first nine months of 2020. The effective tax rate in both periods benefited from tax credits earned for qualifying energy-efficient homes under the Taxpayer Certainty and Disaster Tax Relief Act enacted in December 2019.

•Net earnings were $500 million ($13.06 per diluted share) for the first nine months of 2021, an 85% increase over $270.9 million ($7.04 per diluted share) for the first nine months of 2020, primarily reflecting higher closing volume, pricing power, expanded gross margin and the greater overhead leverage in 2021.

BALANCE SHEET
•Cash and cash equivalents at September 30, 2021 totaled $562.3 million, compared to $745.6 million at December 31, 2020, reflecting investments in real estate and development and share repurchases. Real estate assets increased from $2.8 billion at December 31, 2020 to $3.6 billion at September 30, 2021.

•A total of nearly 70,000 lots were owned or controlled as of September 30, 2021, compared to approximately 48,000 total lots at September 30, 2020. In the third quarter of 2021, about 9,800 net new lots were added, representing an estimated net 45 future communities, of which 87% are for entry-level communities.

•Debt-to-capital and net debt-to-capital ratios were 29.1% and 17.5%, respectively, at September 30, 2021, compared to 30.3% and 10.5%, respectively, at December 31, 2020.
•In the first nine months of 2021, we repurchased 395,461 shares of stock for a total of $37.0 million, of which 95,461 shares totaling $9.5 million were repurchased during the third quarter of 2021. Since September 30, 2021, we repurchased an additional 243,885 shares totaling $24.0 million and have $153.4 million remaining available to repurchase in our authorized share repurchase program as of October 25, 2021.

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CONFERENCE CALL
Management will host a conference call to discuss its third quarter results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, October 28, 2021. The call will be webcast live with an accompanying slideshow available on the "Investor Relations" page of the Company's website at https://investors.meritagehomes.com. Telephone participants will be able to join by dialing in to 1-877-407-6951 US toll free or 1-412-902-0046 on the day of the call.
A replay of the call will be available via webcast beginning at approximately 12:00 p.m. Pacific Time (3:00 p.m. Eastern Time) on October 28, 2021 and extending through November 11, 2021, at
https://investors.meritagehomes.com.
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Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)

 
 Three Months Ended September 30,
20212020Change $Change %
Homebuilding:
Home closing revenue$1,251,435 $1,133,221 $118,214 10 %
Land closing revenue8,470 4,870 3,600 74 %
Total closing revenue1,259,905 1,138,091 121,814 11 %
Cost of home closings(879,759)(889,654)(9,895)(1)%
Cost of land closings(7,706)(4,360)3,346 77 %
Total cost of closings(887,465)(894,014)(6,549)(1)%
Home closing gross profit371,676 243,567 128,109 53 %
Land closing gross profit764 510 254 50 %
Total closing gross profit372,440 244,077 128,363 53 %
Financial Services:
Revenue5,208 4,939 269 5 %
Expense(2,308)(2,026)282 14 %
Earnings from financial services unconsolidated entities and other, net
1,324 1,402 (78)(6)%
Financial services profit4,224 4,315 (91)(2)%
Commissions and other sales costs(68,952)(73,282)(4,330)(6)%
General and administrative expenses(47,192)(40,737)6,455 16 %
Interest expense(79)(55)24 44 %
Other income, net1,268 1,188 80 7 %
Earnings before income taxes261,709 135,506 126,203 93 %
Provision for income taxes(60,957)(26,388)34,569 131 %
Net earnings$200,752 $109,118 $91,634 84 %
Earnings per common share:
BasicChange $ or sharesChange %
Earnings per common share$5.33 $2.90 $2.43 84 %
Weighted average shares outstanding37,647 37,607 40 — %
Diluted
Earnings per common share$5.25 $2.84 $2.41 85 %
Weighted average shares outstanding38,229 38,405 (176)— %




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 Nine Months Ended September 30,
20212020Change $Change %
Homebuilding:
Home closing revenue$3,596,060 $3,055,229 $540,831 18 %
Land closing revenue25,225 16,954 8,271 49 %
Total closing revenue3,621,285 3,072,183 549,102 18 %
Cost of home closings(2,612,428)(2,412,606)199,822 8 %
Cost of land closings(24,246)(17,509)6,737 38 %
Total cost of closings(2,636,674)(2,430,115)206,559 8 %
Home closing gross profit983,632 642,623 341,009 53 %
Land closing gross profit/(loss)979 (555)1,534 276 %
Total closing gross profit984,611 642,068 342,543 53 %
Financial Services:
Revenue15,624 13,329 2,295 17 %
Expense(6,846)(5,519)1,327 24 %
Earnings from financial services unconsolidated entities and other, net
3,821 3,132 689 22 %
Financial services profit12,599 10,942 1,657 15 %
Commissions and other sales costs(210,585)(204,863)5,722 3 %
General and administrative expenses(128,297)(111,083)17,214 15 %
Interest expense(246)(2,176)(1,930)(89)%
Other income, net3,443 3,313 130 4 %
Loss on early extinguishment of debt(18,188)— 18,188 n/a
Earnings before income taxes643,337 338,201 305,136 90 %
Provision for income taxes(143,353)(67,253)76,100 113 %
Net earnings$499,984 $270,948 $229,036 85 %
Earnings per common share:
BasicChange $ or sharesChange %
Earnings per common share$13.26 $7.17 $6.09 85 %
Weighted average shares outstanding37,703 37,763 (60)— %
Diluted
Earnings per common share$13.06 $7.04 $6.02 86 %
Weighted average shares outstanding38,285 38,491 (206)(1)%


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Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
September 30, 2021December 31, 2020
Assets:
Cash and cash equivalents$562,291 $745,621 
Other receivables148,743 98,573 
Real estate (1)
3,593,007 2,778,039 
Deposits on real estate under option or contract77,987 59,534 
Investments in unconsolidated entities3,905 4,350 
Property and equipment, net36,595 38,933 
Deferred tax asset38,850 36,040 
Prepaids, other assets and goodwill104,071 103,308 
Total assets$4,565,449 $3,864,398 
Liabilities:
Accounts payable$214,575 $175,250 
Accrued liabilities324,407 296,121 
Home sale deposits40,002 25,074 
Loans payable and other borrowings18,985 23,094 
Senior notes, net1,142,210 996,991 
Total liabilities1,740,179 1,516,530 
Stockholders' Equity:
Preferred stock— — 
Common stock376 375 
Additional paid-in capital433,179 455,762 
Retained earnings2,391,715 1,891,731 
Total stockholders’ equity2,825,270 2,347,868 
Total liabilities and stockholders’ equity$4,565,449 $3,864,398 

(1) Real estate – Allocated costs:
Homes under contract under construction$1,142,724 $873,365 
Unsold homes, completed and under construction397,422 357,861 
Model homes75,239 82,502 
Finished home sites and home sites under development1,977,622 1,464,311 
Total real estate$3,593,007 $2,778,039 




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Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Depreciation and amortization$6,478 $7,945 $19,892 $22,496 
Summary of Capitalized Interest:
Capitalized interest, beginning of period$56,710 $72,882 $58,940 $82,014 
Interest incurred15,212 16,103 47,625 50,188 
Interest expensed(79)(55)(246)(2,176)
Interest amortized to cost of home and land closings(14,550)(21,380)(49,026)(62,476)
Capitalized interest, end of period$57,293 $67,550 $57,293 $67,550 
 September 30, 2021December 31, 2020
Senior notes, net, loans payable and other borrowings$1,161,195 $1,020,085 
Stockholders' equity2,825,270 2,347,868 
Total capital$3,986,465 $3,367,953 
Debt-to-capital29.1 %30.3 %
Senior notes, net, loans payable and other borrowings$1,161,195 $1,020,085 
Less: cash and cash equivalents(562,291)(745,621)
Net debt$598,904 $274,464 
Stockholders’ equity2,825,270 2,347,868 
Total net capital$3,424,174 $2,622,332 
Net debt-to-capital17.5 %10.5 %
 


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Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands)
(Unaudited)
Nine Months Ended September 30,
 20212020
Cash flows from operating activities:
Net earnings$499,984 $270,948 
Adjustments to reconcile net earnings to net cash (used in)/provided by operating activities:
Depreciation and amortization19,892 22,496 
Stock-based compensation14,435 15,724 
Loss on early extinguishment of debt18,188 — 
Equity in earnings from unconsolidated entities(2,878)(2,821)
Distribution of earnings from unconsolidated entities3,324 2,449 
Other(3,085)1,881 
Changes in assets and liabilities:
(Increase)/decrease in real estate(810,731)9,080 
Increase in deposits on real estate under option or contract(18,453)(12,910)
(Increase)/decrease in other receivables, prepaids and other assets(51,611)4,933 
Increase in accounts payable and accrued liabilities67,301 60,039 
Increase in home sale deposits14,928 1,263 
Net cash (used in)/provided by operating activities(248,706)373,082 
Cash flows from investing activities:
Investments in unconsolidated entities(1)(4)
Distributions of capital from unconsolidated entities— 1,000 
Purchases of property and equipment(17,910)(14,771)
Proceeds from sales of property and equipment404 528 
Maturities/sales of investments and securities2,795 632 
Payments to purchase investments and securities(2,795)(632)
Net cash used in investing activities(17,507)(13,247)
Cash flows from financing activities:
Repayment of loans payable and other borrowings(6,308)(8,509)
Repayment of senior notes(317,690)— 
Proceeds from issuance of senior notes450,000 — 
Payment of debt issuance costs(6,102)— 
Repurchase of shares(37,017)(60,813)
Net cash provided by/(used in) financing activities82,883 (69,322)
Net (decrease)/increase in cash and cash equivalents(183,330)290,513 
Beginning cash and cash equivalents745,621 319,466 
Ending cash and cash equivalents $562,291 $609,979 
 

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Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
 Three Months Ended September 30,
 20212020
 HomesValueHomesValue
Homes Closed:
Arizona532 $193,847 429 $143,630 
California295 177,623 332 202,460 
Colorado144 80,149 183 88,199 
West Region971 451,619 944 434,289 
Texas1,012 383,206 1,059 349,907 
Central Region1,012 383,206 1,059 349,907 
Florida386 139,642 339 124,836 
Georgia139 52,004 178 62,921 
North Carolina371 145,268 295 98,322 
South Carolina92 31,686 78 25,502 
Tennessee141 48,010 111 37,444 
East Region1,129 416,610 1,001 349,025 
Total3,112 $1,251,435 3,004 $1,133,221 
Homes Ordered:
Arizona550 $233,828 709 $240,151 
California319 213,859 510 319,680 
Colorado207 123,242 188 88,972 
West Region1,076 570,929 1,407 648,803 
Texas1,070 427,689 1,183 395,453 
Central Region1,070 427,689 1,183 395,453 
Florida534 192,479 491 179,607 
Georgia176 74,766 172 62,541 
North Carolina347 140,135 386 132,988 
South Carolina100 31,535 90 28,140 
Tennessee138 51,418 122 40,948 
East Region1,295 490,333 1,261 444,224 
Total3,441 $1,488,951 3,851 $1,488,480 
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 Nine Months Ended September 30,
 20212020
 HomesValueHomesValue
Homes Closed:
Arizona1,423 $497,105 1,315 $437,233 
California890 547,754 787 487,605 
Colorado464 239,399 553 268,970 
West Region2,777 1,284,258 2,655 1,193,808 
Texas3,129 1,105,429 2,747 901,791 
Central Region3,129 1,105,429 2,747 901,791 
Florida1,246 440,847 942 357,233 
Georgia456 169,620 459 163,617 
North Carolina1,000 372,119 805 276,477 
South Carolina258 87,741 229 73,113 
Tennessee409 136,046 253 89,190 
East Region3,369 1,206,373 2,688 959,630 
Total9,275 $3,596,060 8,090 $3,055,229 
Homes Ordered:
Arizona1,776 $713,067 2,016 $654,579 
California949 604,478 1,250 769,251 
Colorado557 317,155 540 258,268 
West Region3,282 1,634,700 3,806 1,682,098 
Texas3,286 1,248,032 3,457 1,130,943 
Central Region3,286 1,248,032 3,457 1,130,943 
Florida1,481 547,706 1,198 435,411 
Georgia533 213,632 518 182,958 
North Carolina1,156 450,854 999 340,626 
South Carolina264 90,532 272 85,316 
Tennessee439 152,297 300 101,518 
East Region3,873 1,455,021 3,287 1,145,829 
Total10,441 $4,337,753 10,550 $3,958,870 
Order Backlog:
Arizona1,346 $560,090 1,212 $404,044 
California503 331,454 608 373,949 
Colorado301 182,536 183 87,047 
West Region2,150 1,074,080 2,003 865,040 
Texas1,787 715,226 1,758 602,709 
Central Region1,787 715,226 1,758 602,709 
Florida785 321,831 627 242,419 
Georgia233 101,996 192 69,204 
North Carolina610 242,192 413 143,741 
South Carolina126 44,028 114 36,723 
Tennessee147 56,052 135 45,145 
East Region1,901 766,099 1,481 537,232 
Total5,838 $2,555,405 5,242 $2,004,981 

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Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)

 
 Three Months Ended September 30,
 20212020
 EndingAverageEndingAverage
Active Communities:
Arizona38 38.0 35 36.5 
California18 19.0 20 24.0 
Colorado16 16.5 11 12.0 
West Region72 73.5 66 72.5 
Texas68 66.0 58 63.0 
Central Region68 66.0 58 63.0 
Florida38 36.0 34 35.0 
Georgia12 11.0 11 14.0 
North Carolina26 26.0 20 20.5 
South Carolina11 9.0 6 5.5 
Tennessee9 9.5 9 10.0 
East Region96 91.5 80 85.0 
Total236 231.0 204 220.5 
 Nine Months Ended September 30,
 20212020
 EndingAverageEndingAverage
Active Communities:
Arizona38 35.5 35 34.3 
California18 18.3 20 25.3 
Colorado16 14.0 11 13.8 
West Region72 67.8 66 73.4 
Texas68 63.6 58 70.3 
Central Region68 63.6 58 70.3 
Florida38 33.3 34 34.4 
Georgia12 10.3 11 15.3 
North Carolina26 24.3 20 21.6 
South Carolina11 7.5 6 6.8 
Tennessee9 8.5 9 10.3 
East Region96 83.9 80 88.4 
Total236 215.3 204 232.1 


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About Meritage Homes Corporation
Meritage Homes is the sixth-largest public homebuilder in the United States, based on homes closed in 2020. The Company offers a variety of homes that are designed with a focus on entry-level and first move-up buyers in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Meritage Homes has delivered over 145,000 homes in its 36-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is the industry leader in energy-efficient homebuilding and an eight-time recipient of the U.S. Environmental Protection Agency’s ENERGY STAR® Partner of the Year for Sustained Excellence Award since 2013 for innovation and industry leadership in energy efficient homebuilding.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general; projected 2021 home closings, home closing revenue, home closing gross margins, effective tax rate and diluted earnings per share; future community counts; trends in construction costs; and expectations about our future results.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, 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: changes in interest rates and the availability and pricing of residential mortgages; inflation in the cost of materials used to develop communities and construct homes; supply chain constraints; our ability to obtain performance and surety bonds in connection with our development work; the ability of our potential buyers to sell their existing homes; legislation related to tariffs; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our potential exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to
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the feasibility of projects under option or contract that could result in the write-down or write-off of earnest or option deposits; our limited geographic diversification; the replication of our energy-efficient technologies by our competitors; shortages in the availability and cost of subcontract labor; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure to comply with laws and regulations; our compliance with government regulations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic (such as COVID-19), and measures that federal, state and local governments and/or health authorities implement to address it; 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, 2020 and our Form 10-Q for the quarter ended June 30, 2021 under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

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