Exhibit 99.1

 

Listed on the NYSE: MTH

Press release

 

Contacts:		Investor Relations:		Corporate Communications:
		Brent Anderson		Jane Hays
		Vice President-Investor Relations		Vice President-Corporate Communications
		(972) 580-6360		(972) 580-6353

 

MERITAGE HOMES REPORTS INCREASES IN SALES, GROSS PROFIT AND NET
OPERATING RESULTS FOR THE THIRD QUARTER OF 2009

 

THIRD QUARTER 2009 SELECTED RESULTS:

·                  Increased net sales orders to 1,098 homes, reporting the Company’s first quarterly year-over-year increase and lowest cancellation rate since the housing downturn began in 2006

·                  Narrowed net loss to $0.56 per share from $4.69 loss per share in 2008, with 76% lower impairments

·                  Improved gross profit margin excluding impairments to 14.5% - its highest level in eight quarters - over 12.3% in the prior quarter and 12.7% in the prior year

·                  Managed overhead costs to reduce general and administrative expenses by 31% from prior year

 

YEAR TO DATE 2009 SELECTED RESULTS:

·                  Cut net loss position by nearly half due to cost controls and lower impairments

·                  Decreased inventory of unsold homes to 2.5 per community and maintained 3.1 years supply of lots (based on ttm closings) while replacing older lots with new lower-priced lots

·                  Reduced net debt/capital ratio to 35% after retiring $24M debt and increasing cash by $160M

 

Scottsdale, Ariz. (October 26, 2009) — Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced third quarter results for the period ended September 30, 2009.

 

Summary Operating Results (unaudited)

(Dollars in millions, except per share amounts)

 

		Three Months Ended September 30,								Nine months Ended September 30,
		2009			2008			%Chg		2009			2008			%Chg
Homes closed (units)		1,015			1,423			-29	%	2,837			4,139			-31	%
Home closing revenue		$	232		$	373		-38	%	$	683		$	1,118		-39	%
Sales orders (units)		1,098			1,013			8	%	3,232			4,120			-22	%
Sales order value		$	254		$	254		0	%	$	750		$	1,061		-29	%
Ending backlog (units)										1,676			2,269			-26	%
Ending backlog value										$	405		$	613		-34	%
Net loss (including write-offs)		$	(18	)	$	(144	)	88	%	$	(110	)	$	(213	)	48	%
Adjusted pre-tax loss* (excluding write-offs)		$	(4	)	$	(7	)	32	%	$	(17	)	$	(12	)	-43	%
Diluted EPS (including write-offs)		$	(0.56	)	$	(4.69	)	88	%	$	(3.52	)	$	(7.37	)	52	%

 

* Adjusted pre-tax loss excludes impairments: See non-GAAP reconciliations of net loss to adjusted pre-tax loss on “Operating Results” statement

 

 

THIRD QUARTER OPERATING RESULTS

 

Meritage reported a net loss for the third quarter of 2009 of $18 million or $0.56 per share, compared to a net loss of $144 million or $4.69 per share in the third quarter of 2008. The improved results in 2009 benefited from lower pre-tax real estate-related impairment charges of $13 million in 2009, compared to $55 million of similar charges in 2008. Excluding these charges, the pre-tax losses from operations were $4 million in the third quarter of 2009 and $7 million in the third quarter of 2008. Additionally, the 2008 net loss included a $106 million charge for a deferred tax asset valuation allowance.

 

Third quarter home closing revenue declined 38% year over year, due to 29% fewer homes closed, coupled with a 13% lower average closing price of approximately $228,000 in the third quarter of 2009, compared to approximately $262,000 in the third quarter of 2008. The lower average closing price reflects general market declines, in addition to Meritage’s new series of more affordable homes, designed to appeal to first time and first move-up home buyers. Sales of homes to entry level and first move-up buyers represented about two-thirds of the Company’s third quarter 2009 sales.

 

The Company’s gross profit margin excluding impairment charges reached its highest level in the last eight quarters, climbing to 14.5% from 12.3% in the prior quarter and 12.7% in the prior year’s third quarter. Net of impairments, gross margins were 9.9% for the third quarter of 2009 and -1.7% for the third quarter of 2008.

 

“We’ve significantly improved our gross margins despite pricing pressures by designing efficient homes that offer our buyers tremendous value, reducing our construction costs, and building communities in highly desirable locations. We have driven down our average construction costs by 30-40% in many of our markets, allowing us to offer lower prices while also improving our profitability per home,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our newer communities, where we are building these homes on lower-cost lots, are achieving higher margins and selling at a faster pace than most of our older communities. As we close out those older communities and our new communities become a larger component of our total sales, we expect to return to more normal margins and profitability.”

 

By continuing its focus on tight control of overhead costs, Meritage also reduced its general and administrative expenses by 31%, to $14 million in the third quarter of 2009, from $21 million in the previous year. Commissions and other sales costs were 46% lower in 2009 than 2008, greater than the 38% decline in home closing revenue, due to lower marketing and advertising costs from regionalizing these functions, and lower model operating costs from owning fewer models.

 

Meritage reported positive earnings before interest, taxes, depreciation and impairments (adjusted EBITDA — see “Non-GAAP Financial Disclosures” statement) of $11 million, a 7% increase over the third quarter of 2008. The Company has reported positive adjusted EBITDA every quarter throughout the housing recession.

 

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YEAR TO DATE OPERATING RESULTS

 

Meritage reported a net loss for the first nine months of 2009 of $110 million or $3.52 per share, compared to a net loss of $213 million or $7.37 per share in the first nine months of 2008. The 2009 net loss included $90 million year to date in pre-tax real estate-related impairment charges and a $3 million write-off of capitalized fees related to the reduction and ultimate termination of the Company’s credit facility, partially offset by a $9 million gain on extinguishment of debt. The 2008 year to date loss included $154 million of pre-tax real estate-related impairment charges, a $10 million benefit from a legal settlement in the second quarter, and the deferred tax asset valuation allowance of $106 million.

 

Since the third quarter of 2008, the Company has fully reserved its deferred tax assets arising from its operating losses. The cumulative deferred tax assets totaled $169 million as of September 30, 2009, which are available to offset federal income tax liability on an estimated $480 million of future taxable income.

 

SALES

 

Net orders showed the first quarterly year-over-year increase in the past 15 quarters, since the beginning of the downturn in the housing market. Net orders of 1,098 homes in the third quarter were 8% higher than the prior year’s sales of 1,013 homes. The increase was driven by gains of 53% in California, 40% in Colorado and 176% in Florida, which together made up 23% of third quarter 2009 sales. These strong increases in some of the Company’s hardest hit markets were muted by minor decreases in the Company’s largest markets, as Texas sales were 2% lower and Arizona was 4% lower than the previous year.

 

The third quarter cancellation rate of 20% was the lowest for Meritage in more than four years. By comparison, after the financial crisis in September of 2008, the third quarter 2008 cancellation rate was 40%.

 

With 22% fewer active communities at September 30, 2009, the average sales per community increased to 6.5 for the third quarter 2009 from 4.8 in the same period last year. Management expects the sales pace to improve as more new communities are opened, and as its markets stabilize and improve.

 

Meritage’s backlog of orders was 26% lower at the end of the third quarter of 2009 compared to 2008, but has grown successively over each of the last four quarters.

 

BALANCE SHEET

 

Meritage has generated nearly $500 million cash flow from operations over the last eight quarters, and increased cash by $247 million over the last twelve months, ending with $366 million in cash, cash equivalents and restricted cash as of September 30, 2009. The increase in cash helped the Company reduce its net debt/capital ratio to 35%, from 46% one year earlier, after also retiring $24 million in debt in the first nine months of 2009. The Company has redeployed a portion of its cash to replenish its supply of lots and replace older communities as they close, by acquiring finished lots in desirable locations at deeply

 

3

 

discounted prices, often less than the cost of developing those lots.  Unrestricted cash declined by $38 million during the third quarter, primarily due to the use of cash for new lot positions and a $19 million restricted cash balance established to secure outstanding letters of credit previously supported by the credit facility, which was terminated during the quarter.

 

 “We are reinvesting in our future by acquiring lower-priced lots in locations where we have identified the best opportunities to sell our homes with the least risk from foreclosures, increasing home inventories, falling prices or other adverse market conditions,” said Mr. Hilton. “During the quarter, we contracted for 2,500 lots in 11 communities within five states. This lot count includes approximately 1,300 lots in Province, an award-winning active adult community outside Phoenix that we put under contract at during the quarter and closed in October.

 

“We are actively pursuing finished lot positions in most of our markets, and expect to acquire additional communities through the balance of the year,” Mr. Hilton continued.

 

At September 30, 2009, Meritage’s total 13,221 lots represented about 3.1 years lot supply based on trailing twelve months closings. That included 8,359 owned lots, 63% of the total. By comparison, the Company’s total lot supply was 20,738, or 3.3 years supply at September 30, 2008, with 44% or 9,095 of those lots owned.

 

Meritage held 407 unsold homes in inventory at September 30, 2009, an average of 2.5 specs per community, compared to 809 or 3.9 specs per community one year earlier. The Company has been starting more homes before obtaining a sales contract as part of its strategy to have homes available for sales to first time home buyers and renters, but sales have outpaced starts, resulting in a net reduction in spec inventory during the year.

 

The Company has also reduced its average time from sale to close by approximately eight weeks since the beginning of 2008. By shortening cycle times from sale to close, Meritage should be able to build and deliver more homes without increasing the inventory on its balance sheet, thereby improving its returns on assets and invested capital.

 

STOCK EXCHANGED FOR DEBT

 

In the first nine months of 2009, Meritage retired a total of $24 million of its 7.731% senior subordinated notes due 2017 in exchange for 783,000 shares of Meritage Homes common stock at an implied discount of 41% to the face value of the notes retired, saving approximately two million dollars of future interest cost per year.  This resulted in a $9 million gain on the early extinguishment of debt, included as a component of other income.

 

TERMINATED CREDIT FACILITY

 

Meritage terminated its credit facility at the end of the third quarter of 2009, as the Company did not anticipate needing the $150 million facility before the agreement was due to expire in May of 2011. The Company entered into three new commitments for letters of credit with an aggregate capacity of approximately $53 million, securing approximately $19 million in outstanding letters of credit previously

 

4

 

supported by the credit facility, and providing additional capacity for future needs. The termination of the facility resulted in a non-cash charge in the third quarter of 2009 of approximately $800,000 to write off capitalized origination fees, and is expected to save the Company approximately $2 million in fees over the remaining life of the facility.

 

SUMMARY

 

“We have made excellent progress toward achieving our plan to return to profitability in 2010, and believe we will be profitable for the entire year, anticipating no material impairments as our markets stabilize and improve,” said Mr. Hilton. “We have reduced our direct costs and overhead cost structure, redesigned homes and repositioned communities, allowing us to offer quality Meritage homes at very affordable and competitive prices. Based on our projections for the fourth quarter, we expect to generate positive cash flow from operations for the full year 2009, after cash used for lot acquisitions during the year, but before including the tax refunds of $108 million collected early this year.”

 

“Because we are not saddled with heavy debt or long land positions, as some homebuilders are, we are able to use our strong financial position and shorter lot supply to restock our balance sheet with new lower-cost lots that are generating better margins.”

 

Mr. Hilton continued, “I believe our market research is a competitive advantage that helps us make good decisions quickly as we evaluate lot acquisitions, product offerings and pricing. The intelligence provided by our research gives us confidence that we’re acquiring lots in the right locations at the right price, both minimizing our risk and maximizing our upside potential.”

 

He concluded, “I believe this is one of those times in history that can be a game-changer for many industries, and an opportunity to define who the next leaders will be. Meritage is well positioned and our organization is poised to make the most of our opportunities. I’m excited about the prospects for our future.”

 

Management will host a conference call to discuss these results on October 27, 2009 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time.) The call will be webcast by Business-to-Investor, Inc. (B2i), with an accompanying slideshow on the “Investor Relations” page of the Company’s web site at http://investors.meritagehomes.com. For telephone participants, the dial-in number is 877-485-3104 with a passcode of “Meritage”. Participants are encouraged to dial in five minutes before the call begins. A replay of the call will be available after 12:30 p.m. ET, October 27, 2009 on the website noted above, or by dialing 877-660-6853, and referencing passcode 334226.

 

5

 

Meritage Homes Corporation and Subsidiaries

Operating Results

(Unaudited)

(In thousands, except per share data)

 

 

		Three Months Ended						Nine months Ended
		September 30,						September 30,
		2009			2008			2009			2008
Operating results
Home closing revenue		$	231,816		$	372,907		$	683,208		$	1,118,486
Land closing revenue		—			1,859			1,285			5,007
Total closing revenue		231,816			374,766			684,493			1,123,493
Home closing gross profit		23,183			6,786			1,449			31,135
Land closing gross loss		(281		)	(13,050		)	(450		)	(19,616		)
Total closing gross profit/(loss)		$	22,902		$	(6,264	)	$	999		$	11,519
Commissions and other sales costs		(18,382		)	(33,840		)	(55,625		)	(101,274		)
General and administrative expenses (1)		(14,269		)	(20,735		)	(41,913		)	(52,481		)
Interest expense		(8,853		)	(5,835		)	(28,515		)	(17,034		)
Other income/(loss), net (2)		963			5,092			17,252			(7,256		)
Loss before income taxes		(17,639		)	(61,582		)	(107,802		)	(166,526		)
Provision for income taxes		(146		)	(82,431		)	(1,940		)	(46,260		)
Net loss		$	(17,785	)	$	(144,013	)	$	(109,742	)	$	(212,786	)
Loss per share
Basic and Diluted:
Loss per share		$	(0.56	)	$	(4.69	)	$	(3.52	)	$	(7.37	)
Weighted average shares outstanding		31,718			30,690			31,197			28,872
Non-GAAP Reconciliations:
Total closing gross profit/(loss)		$	22,902		$	(6,264	)	$	999		$	11,519
Add: Real estate-related impairments
Terminated lot options and land sales		3,505			19,342			66,219			44,939
Impaired projects		7,130			34,670			21,264			88,564
Adjusted closing gross profit		$	33,537		$	47,748		$	88,482		$	145,022
Loss before income taxes		$	(17,639	)	$	(61,582	)	$	(107,802	)	$	(166,526	)
Add: Real estate-related and joint venture (JV) impairments
Terminated lot options and land sales		3,505			19,342			66,219			44,939
Impaired projects		7,130			34,670			21,264			88,564
JV impairments		2,611			1,070			2,830			20,759
Adjusted loss before income taxes		$	(4,393	)	$	(6,500	)	$	(17,489	)	$	(12,264	)

 

(1)       General and administrative expenses for the nine months ended September 30, 2008 reflect a $10.2 million benefit related to a successful legal settlement.

 

(2)       Other income is net of the Joint Venture (JV) impairments shown in the “Non-GAAP reconciliations” section above.  2009 includes a gain on early extinguishment of debt of $9 million in the nine months ended September 30, 2009.

 

6

 

Meritage Homes Corporation and Subsidiaries

Non-GAAP Financial Disclosures

(In thousands)

(unaudited)

 

		Three Months Ended September 30,						Nine months Ended September 30,						As of and for the Twelve Months Ended September 30,
		2009			2008			2009			2008			2009			2008
EBITDA reconciliation: (1)
Net loss		$	(17,785	)	$	(144,013	)	$	(109,742	)	$	(212,786	)	$	(188,891	)	$	(341,625	)
Provision/(benefit) for income taxes		146			82,431			1,940			46,260			(28,351		)	(22,380		)
Interest amortized to cost of sales and interest expense		12,891			13,068			44,440			40,836			63,222			59,185
Depreciation and amortization		2,002			3,221			6,547			9,785			12,431			14,147
EBITDA		$	(2,746	)	$	(45,293	)	$	(56,815	)	$	(115,905	)	$	(141,589	)	$	(290,673	)
Add back:
Real estate-related impairments		13,246			55,082			90,313			154,262			199,491			283,787
Fixed asset impairments		—			—			—			—			—			3,124
Goodwill and intangible asset impairments		—			—			—			—			1,133			57,538
Adjusted EBITDA		$	10,500		$	9,789		$	33,498		$	38,357		$	59,035		$	53,776
Interest coverage ratio: (2)
Adjusted EBITDA														$	59,035		$	53,776
Interest incurred														48,109			52,648
Interest coverage ratio														1.2			1.0
Net debt-to-capital: (3)
Notes payable and other borrowings														$	604,968		$	629,718
Less: cash, cash equivalents and restricted cash														(365,555		)	(119,027		)
Net debt														239,413			510,691
Stockholders’ equity														440,559			604,891
Capital														$	679,972		$	1,115,582
Net debt-to-capital														35.2		%	45.8		%

 

(1)  EBITDA and adjusted EBITDA are non-GAAP financial measures representing net earnings /(loss) before interest amortized to cost of sales and interest expense, income taxes, depreciation and amortization, with write-offs and non-cash impairment charges also excluded from adjusted EBITDA.  A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet, or statement of cash flows (or equivalent statements) of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.  In this regard, GAAP refers to generally accepted accounting principles in the United States.  We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.  EBITDA is presented here because it is used by management to analyze and compare Meritage with other homebuilding companies on the basis of operating performance and we believe it is a financial measure widely used by investors and analysts in the homebuilding industry.  EBITDA as presented may not be comparable to similarly titled measures reported by other companies because not all companies calculate EBITDA in an identical manner and, therefore, it is not necessarily an accurate means of comparison between companies.  EBITDA is not intended to represent cash flows for the period or funds available for management’s discretionary use nor has it been presented as an alternative to operating income or as an indicator of operating performance and it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Adjusted EBITDA is presented because it more closely, although not exactly, resembles the comparable covenant calculations under our senior and senior subordinated note indentures.

 

(2)  Interest coverage ratio is calculated as the trailing four quarters’ adjusted EBITDA divided by the trailing four quarters’ interest incurred.

 

(3) Net debt-to-capital is calculated as notes payable and other borrowings less cash, cash equivalents and restricted cash, divided by the sum of notes payable and other borrowings, less cash, cash equivalents and restricted cash, plus stockholders’ equity.

 

7

 

Meritage Homes Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)

 

		September 30, 2009			December 31, 2008
Assets:
Cash and cash equivalents		$	346,951		$	205,923
Restricted Cash		18,604			—
Income tax receivable		2,125			111,508
Other receivables		27,063			31,046
Real estate (1)		718,438			859,305
Investments in unconsolidated entities		12,311			17,288
Option deposits		12,309			51,658
Other assets		45,838			49,521
Total assets		$	1,183,639		$	1,326,249
Liabilities:
Senior notes		$	479,093		$	478,968
Senior subordinated notes		125,875			150,000
Revolving credit facility		—			—
Accounts payable, accrued liabilities, home sale deposits and other liabilities		138,112			170,075
Total liabilities		743,080			799,043
Total stockholders’ equity		440,559			527,206
Total liabilities and equity		$	1,183,639		$	1,326,249
(1) Real estate — Allocated costs:
Homes under contract under construction		$	191,699		$	170,347
Unsold homes, completed and under construction		67,917			158,378
Model homes		37,552			48,608
Finished home sites and home sites under development		364,716			455,048
Land held for development or sale		56,554			26,924
Total allocated costs		$	718,438		$	859,305

 

8

 

Meritage Homes Corporation and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(In thousands)

(unaudited)

 

		Three Months Ended September 30,						Nine months Ended September 30,
		2009			2008			2009			2008
Operating results
Net loss		$	(17,785	)	$	(144,013	)	$	(109,742	)	$	(212,786	)
Real-estate related impairments		10,635			54,012			87,483			133,503
Decrease in deferred taxes		—			10,519			—			1,496
Deferred tax valuation allowance		—			106,225			—			106,225
Equity in (losses)/earnings from JVs (including impairments) and distributions of JV earnings, net		2,335			1,041			3,991			22,020
(Increase)/decrease in real estate and deposits, net		(15,353		)	14,572			94,720			95,818
(Increase)/decrease in income tax receivable		(87		)	2,391			107,573			80,543
Other operating activities		(565		)	(40,351		)	(26,591		)	(120,667		)
Net cash (used in)/provided by operating activities		(20,820		)	4,396			157,434			106,152
Cash used in investing activities		(19,169		)	(644		)	(20,669		)	(16,479		)
Net repayments under Credit Facility		—			—			—			(82,000		)
Proceeds from issuance of common stock, net		—			—			—			82,775
Other financing activities		1,630			122			4,263			902
Net cash provided by financing activities		1,630			122			4,263			1,677
Net (decrease)/increase in cash		(38,359		)	3,874			141,028			91,350
Beginning cash and cash equivalents		385,310			115,153			205,923			27,677
Ending cash and cash equivalents		$	346,951		$	119,027		$	346,951		$	119,027

 

9

 

Meritage Homes Corporation and Subsidiaries

Operating Data

(Dollars in thousands)

(unaudited)

 

		For the Three Months Ended September 30,
		2009					2008
		Homes		Value			Homes		Value
Homes Closed:
California		62		$	20,319		131		$	52,530
Nevada		33		6,635			71		19,057
West Region		95		26,954			202		71,587
Arizona		213		38,617			297		75,226
Texas		611		142,697			783		186,023
Colorado		36		10,932			37		13,342
Central Region		860		192,246			1,117		274,591
Florida		60		12,616			104		26,729
East Region		60		12,616			104		26,729
Total		1,015		$	231,816		1,423		$	372,907
Homes Ordered:
California		130		$	40,483		85		$	32,768
Nevada		33		6,637			41		11,780
West Region		163		47,120			126		44,548
Arizona		212		40,490			220		49,314
Texas		597		134,948			609		145,463
Colorado		35		10,342			25		7,943
Central Region		844		185,780			854		202,720
Florida		91		21,447			33		7,113
East Region		91		21,447			33		7,113
Total		1,098		$	254,347		1,013		$	254,381

 

10

 

Meritage Homes Corporation and Subsidiaries

Operating Data

(Dollars in thousands)

(unaudited)

 

		For the Nine months Ended September 30,
		2009					2008
		Homes		Value			Homes		Value
Homes Closed:
California		218		$	76,042		456		$	187,357
Nevada		112		23,724			205		55,174
West Region		330		99,766			661		242,531
Arizona		563		111,063			772		205,094
Texas		1,679		403,535			2,311		560,634
Colorado		105		33,002			101		35,323
Central Region		2,347		547,600			3,184		801,051
Florida		160		35,842			294		74,904
East Region		160		35,842			294		74,904
Total		2,837		$	683,208		4,139		$	1,118,486
Homes Ordered:
California		287		$	93,688		451		$	177,913
Nevada		99		19,549			193		50,833
West Region		386		113,237			644		228,746
Arizona		621		119,295			765		170,216
Texas		1,899		431,725			2,410		581,280
Colorado		107		32,910			102		35,493
Central Region		2,627		583,930			3,277		786,989
Florida		219		52,796			199		45,659
East Region		219		52,796			199		45,659
Total		3,232		$	749,963		4,120		$	1,061,394
Order Backlog:
California		156		$	51,556		159		$	72,088
Nevada		12		2,278			52		14,319
West Region		168		53,834			211		86,407
Arizona		248		50,443			383		85,680
Texas		1,107		258,345			1,571		404,997
Colorado		46		13,173			54		18,307
Central Region		1,401		321,961			2,008		508,984
Florida		107		28,991			50		17,502
East Region		107		28,991			50		17,502
Total		1,676		$	404,786		2,269		$	612,893

 

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Meritage Homes Corporation and Subsidiaries

Operating Data

(unaudited)

 

		Three Months Ended September 30, 2009				Three Months Ended September 30, 2008
		Beg.		End		Beg.		End
Active Communities:
California		12		9		17		15
Nevada		12		6		12		12
West Region		24		15		29		27
Arizona		31		28		31		30
Texas		108		102		136		132
Colorado		4		3		5		5
Central Region		143		133		172		167
Florida		11		14		12		13
East Region		11		14		12		13
Total		178		162		213		207

 

		Nine Months Ended September 30, 2009				Nine Months Ended September 30, 2008
		Beg.		End		Beg.		End
Active Communities:
California		12		9		27		15
Nevada		12		6		11		12
West Region		24		15		38		27
Arizona		31		28		36		30
Texas		109		102		127		132
Colorado		3		3		6		5
Central Region		143		133		169		167
Florida		11		14		13		13
East Region		11		14		13		13
Total		178		162		220		207

 

12