Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

 

   Contacts:   

Brent Anderson

(972) 580-6360 (office)        

Brent.Anderson@meritagehomes.com

Meritage Homes Reports Fourth Quarter 2011 Gains in Orders,

Closings, Revenue, Backlog and Home Closing Margins

SCOTTSDALE, Ariz., Jan. 31, 2012 – Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the period ended December 31, 2011, posting increases over the prior year’s fourth quarter sales, closings, backlog, revenue and home closing margins.

Summary Operating Results (unaudited)

(Dollars in thousands, except per share amounts)

 

September 30, September 30, September 30, September 30, September 30, September 30,
      

Three Months Ended

December 31,

    Full year Ended December 31,  
       2011      2010      %Chg     2011      2010        %Chg  

Homes closed (units)

       894         837         7     3,268         3,700           -12

Home closing revenue

     $ 245,730       $ 214,616         14   $ 860,884       $ 940,406           -8
    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

      

 

 

 

Sales orders (units)

       749         713         5     3,405         3,383           1

Sales order value

     $ 206,061       $ 174,021         18   $ 907,922       $ 854,687           6
    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

      

 

 

 

Ending backlog (units)

               915         778           18

Ending backlog value

             $ 248,854       $ 201,816           23
    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

      

 

 

 

Net (loss)/income– incl. impairments

     $ (11,774    $ (895      n/m      $ (21,106    $ 7,150           n/m   

Adjusted pre-tax income/(loss) —excl. impairments and loss on early extinguishment of debt

     $ 2,267       $ (311      n/m      $ (4,204    $ 12,684           n/m   

Diluted EPS (including impairments)

     $ (0.36    $ (0.03      n/m      $ (0.65    $ 0.22           n/m   
    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

      

 

 

 

 

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

ADDITIONAL FOURTH QUARTER 2011 SELECTED RESULTS:

 

   

Net loss of $11.8M included $13.9M of asset impairments, primarily due to wind-down of Las Vegas operations; net loss of $0.9M in 2010 included $5.1M asset impairments and $4.5M net tax benefit

 

   

Home closing gross margin improved to 16.0%, or 18.8% before impairments, over fourth quarter 2010 gross margin of 15.8%, or 18.1% before impairments

 

   

Gross profit before impairments on homes closed grew 18% to $46.1M from $38.9M in the prior year

 

   

Opened 19 new communities, including three in new Raleigh division, increasing total active communities to 157 at December 31, 2011 from 151 at December 31, 2010

ADDITIONAL FULL YEAR 2011 SELECTED RESULTS:

 

   

Net loss of $21.1M included $16.2M of asset impairments; net income of $7.2M in 2010 included $6.7M asset impairments, $3.5M loss on early extinguishment of debt and $4.7M net tax benefit

 

   

Completed the year with $333M cash and short-term investments, no short-term debt and 35.8% net debt to capital ratio


MANAGEMENT COMMENTS

“We finished 2011 on a positive note by posting gains across many of our key operating metrics for the fourth quarter, including closings, revenue, sales, backlog, home closing gross margins and our total number of active communities,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “This was our third consecutive quarter of year-over-year increases in sales. It was also our second year to achieve an increase in fourth quarter sales, after being the only public homebuilder to report sales gains in the fourth quarter of 2010. Our fourth quarter orders were up 15% in 2010, while other builders were down an average of 19%, which made for a more difficult year-over-year comparison. It was also encouraging that December was our strongest month of the quarter, and our comparisons to 2010 got progressively better throughout the quarter.

“Although we reported a net loss for the quarter due to asset impairments, primarily related to our winding down of operations in Las Vegas, we increased our home closing gross profit and margins, both before and after impairments,” said Mr. Hilton. “We are continuing to focus on top line growth as well as margin improvement, while controlling our overhead expenses, to drive greater profitability and improved returns for our shareholders.”

SALES

Fourth quarter 2011 net order value increased 18% as a result of 5% more homes sold and a 13% increase in average selling prices. Total fourth quarter orders increased over 2010 due to a 2% increase in average active community count and a 4% increase in average sales per community to 4.9 in 2011 compared to 4.7 in 2010.

The increase in active communities included Meritage’s first three communities opened in Raleigh during the fourth quarter of 2011, which contributed 24 sales in the quarter.

Florida, California and Arizona posted the largest increases in 2011 fourth quarter sales over 2010, due to increases in both the number of communities open for sale and higher sales per community in Florida and California.

Full year orders increased 1% and combined with a 6% increase in average selling price to drive a 6% increase in total order value for 2011 over 2010. The gains were in Florida, Colorado and California, in addition to the new North Carolina market in 2011.

The total value of orders in backlog at year-end 2011 increased by 23% over the prior year.

FOURTH QUARTER RESULTS

Fourth quarter 2011 home closing revenue increased 14% over 2010 due to 7% increases in both closing volume and average prices. The average closing price increased to $275,000 in the fourth quarter of 2011, from $256,000 in 2010. Higher average prices in 2011 primarily reflected a shift in geographic mix, with a greater portion of closings in California, Arizona, Colorado and Florida, where home prices are generally higher, and a smaller portion in Texas, where home prices are generally lower.

Home closing gross margins improved to 16.0% in 2011 from 15.8% in 2010, including impairments; or to 18.8% from 18.1%, respectively, excluding impairments.

 

2


Home closing gross profit increased 16% to $39.4 million in the fourth quarter of 2011 from $34.0 million in the prior year, due to greater closing revenue and expanded margins on closings. Home closing cost of sales included $6.7 million of impairments in the fourth quarter of 2011, of which $3.3 million related to Las Vegas communities in which Meritage intends to continue to build homes. Land closing gross loss included another $5.9 million of impairments related to vacant lots in Las Vegas that the company plans to sell. Fourth quarter 2010 home closing gross profit included $4.9 million of impairments, by comparison.

Meritage reported a net loss of $11.8 million or $0.36 per diluted share in the fourth quarter of 2011, compared to a net loss of $0.9 million or $0.03 per diluted share in the fourth quarter of 2010. The loss in 2011 included $13.9 million of impairments, primarily due to $9.2 million total charges related to the wind down of operations in Las Vegas, as well as a $0.8 million loss from the sale of the only two golf courses the company owned, both in Arizona active adult communities. The 2010 net loss of $0.9 million included $5.1 million of impairments, partially offset by a $4.5 million net tax benefit. Excluding those items, Meritage generated pre-tax income of $2.3 million compared to a pre-tax loss of $311,000 in the prior year.

FULL YEAR OPERATING RESULTS

2011 annual home closing revenue decreased $79.5 million, or 8%, from 2010, due to 12% fewer homes closed, partially offset by a 4% increase in average closing prices, at $263,000 in 2011 compared to $254,000 in 2010. The increase in average closing prices reflected a greater percentage of closings in move-up communities and a mix shift from Texas markets to higher-priced Colorado and Florida markets.

Home closing gross margins were 17.1% in 2011 and 17.8% in 2010, including $8.9 million and $6.4 million of impairments, respectively; or 18.2% in 2011 and 18.5% in 2010, excluding impairments. In addition to larger impairments in 2011, lower margins were reflective of relatively weaker market conditions earlier in 2011, as compared to 2010 when the home buyer tax credit was in place during the first half of the year. Home closing gross profit of $147.4 million was 12% lower than 2010 gross profit of $167.5 million.

Meritage reported a net loss of $21.1 million or $0.65 per share for 2011, which included $16.2 million of asset impairments, compared to net income of $7.2 million or $0.22 per diluted share in 2010, which included $6.7 million in real estate-related impairment charges and a $3.5 million loss on extinguishment of debt, partially offset by a $4.7 million net tax benefit.

BALANCE SHEET

Meritage maintained its strong balance sheet, ending the year with $333.2 million of cash, no near-term maturities and a net debt to capital ratio of 35.8% at December 31, 2011, compared to 27.9% at December 31, 2010. The $79.5 million decrease in total cash and securities during 2011 was primarily converted into real estate inventory, which increased $76.5 million during 2011, including a $32.4 million increase in lot inventory and a $27.5 million increase in homes under construction or completed.

The company spent a total of $192.9 million on lot purchases and an additional $53.7 million on land development during 2011. Meritage acquired control of approximately 5,500 new lots in 94 communities during 2011, most of which replaced lots that were used in homebuilding operations during the year.

 

3


At December 31, 2011, Meritage controlled 16,722 lots representing approximately 5.1 years supply, based on trailing twelve months closings, compared to a total of 15,224 lots or 4.1 years lot supply at December 31, 2010. Meritage owned approximately 83% of its total lots under control at year-end 2011, consistent with 85% in 2010.

SUMMARY

Considering that 2011 turned out to be another tough year for the overall economy and homebuilding, we are pleased to have completed the year with positive trends in most of our operating metrics, while posting only a modest loss for the year before impairments. I’m also pleased with the progress we made on our strategic initiatives during the year, including our expansion into the promising Raleigh market, and our decision to wind down operations in the struggling Las Vegas market. While that decision was difficult, we believe it was the right one, considering the prolonged economic issues facing that market. We continued to lead the industry by incorporating advanced building technologies into the design of our homes, delivering better value to our home buyers through greater energy efficiency and comfort. And we made strategic investments in marketing and operations that I am confident will pay dividends for years to come.

“As we begin 2012, we are focused on prudently growing our community count, home closings and related revenue, increasing our margins and keeping overhead costs in check. Considering that we’re entering the year with a larger backlog than we had last year, and have recently added new divisions in Raleigh and Tampa, I am confident we can grow our sales, revenue and earnings in 2012,” said Mr. Hilton.

CONFERENCE CALL

Management will host a conference call to discuss their results at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) today. 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 877-317-6789 and the conference number is 10008536. Participants are encouraged to dial in five minutes before the call begins. A replay of the call will be available for fifteen days, beginning at 12:00 p.m. ET on January 31, 2012 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10008536. For more information, visit meritagehomes.com.

 

4


Meritage Homes Corporation and Subsidiaries

Operating Results

(Unaudited)

(In thousands, except per share data)

 

September 30, September 30, September 30, September 30,
       Three Months Ended      Full year Ended  
     December 31,      December 31,  
       2011      2010      2011      2010  

Operating results

             

Home closing revenue

     $ 245,730       $ 214,616       $ 860,884       $ 940,406   

Land closing revenue

       260         28         360         1,250   
    

 

 

    

 

 

    

 

 

    

 

 

 

Total closing revenue

       245,990         214,644         861,244         941,656   

Home closing gross profit (1)

       39,411         34,001         147,448         167,456   

Land closing gross (loss)/profit (1)

       (6,222      (18      (6,340      240   
    

 

 

    

 

 

    

 

 

    

 

 

 

Total closing gross profit

       33,189         33,983         141,108         167,696   

Commissions and other sales costs

       (21,036      (18,346      (74,912      (76,798

General and administrative expenses

       (17,602      (12,684      (64,184      (59,784

Interest expense

       (7,363      (8,449      (30,399      (33,722

Loss on extinguishment of debt

       —           —           —           (3,454

Other income, net

       1,208         77         8,011         8,546   
    

 

 

    

 

 

    

 

 

    

 

 

 

(Loss)/earnings before income taxes

       (11,604      (5,419      (20,376      2,484   

(Provision)/benefit for income taxes

       (170      4,524         (730      4,666   
    

 

 

    

 

 

    

 

 

    

 

 

 

Net (loss)/income

     $ (11,774    $ (895    $ (21,106    $ 7,150   
    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings/(loss) per share

             

Basic:

             

(Loss)/earnings per share

     $ (0.36    $ (0.03    $ (0.65    $ 0.22   

Weighted average shares outstanding

       32,452         32,127         32,382         32,060   

Diluted:

             

(Loss)/earnings per share

     $ (0.36    $ (0.03    $ (0.65    $ 0.22   

Weighted average shares outstanding

       32,452         32,127         32,382         32,322   

Non-GAAP Reconciliations:

             

Home closing gross profit

     $ 39,411       $ 34,001       $ 147,448       $ 167,456   

Add Real estate-related impairments:

       6,696         4,908         8,870         6,434   
    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted home closing gross profit

     $ 46,107       $ 38,909       $ 156,318       $ 173,890   
    

 

 

    

 

 

    

 

 

    

 

 

 

(Loss)/income before income taxes

     $ (11,604     $ (5,419    $ (20,376    $ 2,484   

Add: Real estate-related and joint venture impairments:

             

Terminated lot options and land sales

       8,994         1,047         9,221         1,047   

Impaired projects

       4,029         3,878         6,103         5,404   

Joint venture impairments

       —           183         —           295   

Fixed asset impairments

       848         —           848         —     

Loss on early extinguishment of debt

       —           —           —           3,454   
    

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted income/(loss) before income taxes

     $ 2,267       $ (311    $ (4,204    $ 12,684   
    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Home closing gross profit and land closing gross profit for both the 2011 year and quarter periods include impairments related to the wind-down of operations in Las Vegas in the amounts of $3.3 million and $5.9 million, respectively.

 

5


Meritage Homes Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(unaudited)

 

September 30, September 30,
        December 31, 2011        December 31, 2010  

Assets:

         

Cash and cash equivalents

     $ 173,612         $ 103,953   

Investments and securities

       147,429           299,345   

Restricted cash

       12,146           9,344   

Other receivables

       14,932           20,835   

Real estate (1)

       815,425           738,928   

Investments in unconsolidated entities

       11,088           10,987   

Deposits on real estate under option or contract

       15,208           10,359   

Other assets

       31,538           31,187   
    

 

 

      

 

 

 

Total assets

     $ 1,221,378         $ 1,224,938   
    

 

 

      

 

 

 

Liabilities:

         

Accounts payable, accrued liabilities, home sale deposits and other liabilities

     $ 126,057         $ 119,163   

Senior notes

       480,534           479,905   

Senior subordinated notes

       125,875           125,875   
    

 

 

      

 

 

 

Total liabilities

       732,466           724,943   

Total equity

       488,912           499,995   
    

 

 

      

 

 

 

Total liabilities and equity

     $ 1,221,378         $ 1,224,938   
    

 

 

      

 

 

 

(1) Real estate – Allocated costs:

         

Homes under contract under construction

     $ 101,445         $ 97,002   

Unsold homes, completed and under construction

       97,246           87,011   

Model homes

       49,892           37,027   

Finished homesites and homesites under development

       467,867           435,473   

Land held for development

       69,067           59,692   

Land held for sale

       29,908           22,723   
    

 

 

      

 

 

 

Total allocated costs

     $ 815,425         $ 738,928   
    

 

 

      

 

 

 

Supplemental Information and Non-GAAP Financial Disclosures (In thousands – unaudited):

 

September 30, September 30, September 30, September 30,
       As of and for the Three Months
Ended December 31,
       As of and for the Full Year
Ended December 31,
 
       2011        2010        2011        2010  

Interest amortized to cost of sales and interest expense

       10,153           10,805           40,262           45,733   

Depreciation and amortization

       1,911           1,835           7,178           7,974   

 

September 30, September 30,
       2011     2010  

Net debt-to-capital:

      

Notes payable and other borrowings

     $ 606,409      $ 605,780   

Less: cash and cash equivalents, restricted cash, and investments and securities

       (333,187     (412,642
    

 

 

   

 

 

 

Net debt

       273,222        193,138   

Stockholders’ equity

       488,912        499,995   
    

 

 

   

 

 

 

Capital

       762,134        693,133   

Net debt-to-capital

       35.8     27.9

 

6


Meritage Homes Corporation and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(In thousands)

(unaudited)

 

September 30, September 30, September 30, September 30,
      

Three Months Ended

December 31,

    

Full year Ended

December 31,

 
       2011      2010      2011      2010  

Net (loss)/income

     $ (11,774    $ (895    $ (21,106    $ 7,150   

Loss on early extinguishment of debt

       —           —           —           3,454   

Real-estate related impairments

       13,023         4,925         15,324         6,451   

Equity in earnings from JVs (including impairments) and distributions of JV earnings, net

       (30      616         648         2,020   

(Increase)/decrease in real estate and deposits, net

       (31,851      1,957         (95,697      (69,964

Other operating activities

       7,709         (12,215      26,695         83,440   
    

 

 

    

 

 

    

 

 

    

 

 

 

Net cash (used in)/provided by operating activities

       (22,923      (5,612      (74,136      32,551   
    

 

 

    

 

 

    

 

 

    

 

 

 

Net payments to purchase investments and securities

       41,600         (33,953      151,704         (174,449

(Payments)/distribution to fund restricted cash

       (1,037      (396      (2,802      7,004   

Other investing activities

       (1,914      (1,702      (7,720      (7,070
    

 

 

    

 

 

    

 

 

    

 

 

 

Cash provided by/(used in) investing activities

       38,649         (36,051      141,182         (174,515
    

 

 

    

 

 

    

 

 

    

 

 

 

Proceeds from issuance of new debt

       —           —           —           195,134   

Debt issuance cost

       —           —           —           (3,067

Repayments of senior notes

       —           —           —           (197,543

Proceeds from issuance of common, stock, net

       782         292         2,613         2,062   
    

 

 

    

 

 

    

 

 

    

 

 

 

Net cash provided by/(used in) financing activities

       782         292         2,613         (3,414
    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase/(decrease) in cash

       16,508         (41,371      69,659         (145,378

Beginning cash and cash equivalents

       157,104         145,324         103,953         249,331   
    

 

 

    

 

 

    

 

 

    

 

 

 

Ending cash and cash equivalents (1)

     $ 173,612       $ 103,953       $ 173,612       $ 103,953   
    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Ending cash and cash equivalents balances at December 31 exclude investments and securities of $147 million and restricted cash of $12 million in 2011, and $299 million and $9 million, respectively, in 2010.

 

7


Meritage Homes Corporation and Subsidiaries

Operating Data

(Dollars in thousands)

(unaudited)

 

September 30, September 30, September 30, September 30,
       For the Three Months Ended December 31,  
       2011        2010  
       Homes        Value        Homes        Value  

Homes Closed:

    

California

       127         $ 42,389           94         $ 32,696   

Nevada

       10           2,233           16           3,378   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       137           44,622           110           36,074   

Arizona

       176           50,028           152           36,970   

Texas

       391           92,742           450           105,205   

Colorado

       83           27,338           52           16,099   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       650           170,108           654           158,274   

North Carolina

       —             —             —             —     

Florida

       107           31,000           73           20,268   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       107           31,000           73           20,268   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       894         $ 245,730           837         $ 214,616   
    

 

 

      

 

 

      

 

 

      

 

 

 

Homes Ordered:

                   

California

       99         $ 33,813           61         $ 20,011   

Nevada

       1           228           20           4,053   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       100           34,041           81           24,064   

Arizona

       128           34,918           118           29,244   

Texas

       341           80,279           401           87,258   

Colorado

       55           18,279           57           17,425   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       524           133,476           576           133,927   

North Carolina

       24           8,616           —             —     

Florida

       101           29,928           56           16,030   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       125           38,544           56           16,030   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       749         $ 206,061           713         $ 174,021   
    

 

 

      

 

 

      

 

 

      

 

 

 

 

8


Meritage Homes Corporation and Subsidiaries

Operating Data

(Dollars in thousands)

(unaudited)

 

September 30, September 30, September 30, September 30,
       For the Full year Ended December 31,  
       2011        2010  
       Homes        Value        Homes        Value  

Homes Closed:

                   

California

       355         $ 120,319           417         $ 147,194   

Nevada

       59           12,593           81           16,006   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       414           132,912           498           163,200   

Arizona

       594           150,258           700           156,117   

Texas

       1,660           395,278           2,028           487,797   

Colorado

       258           83,095           162           48,820   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       2,512           628,631           2,890           692,734   

North Carolina

       —             —             —             —     

Florida

       342           99,341           312           84,472   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       342           99,341           312           84,472   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       3,268         $ 860,884           3,700         $ 940,406   
    

 

 

      

 

 

      

 

 

      

 

 

 

Homes Ordered:

                   

California

       392         $ 132,672           373         $ 128,167   

Nevada

       52           11,300           79           15,704   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       444           143,972           452           143,871   

Arizona

       627           163,510           678           155,987   

Texas

       1,593           377,165           1,776           417,840   

Colorado

       276           89,624           175           54,328   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       2,496           630,299           2,629           628,155   

North Carolina

       24           8,616           —             —     

Florida

       441           125,035           302           82,661   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       465           133,651           302           82,661   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       3,405         $ 907,922           3,383         $ 854,687   
    

 

 

      

 

 

      

 

 

      

 

 

 

Order Backlog:

                   

California

       82         $ 27,648           45         $ 15,295   

Nevada

       5           1,076           12           2,369   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       87           28,724           57           17,664   

Arizona

       158           45,232           125           31,980   

Texas

       396           93,494           463           111,607   

Colorado

       70           23,493           52           16,964   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       624           162,219           640           160,551   

North Carolina

       24           8,616           —             —     

Florida

       180           49,295           81           23,601   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       204           57,911           81           23,601   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       915         $ 248,854           778         $ 201,816   
    

 

 

      

 

 

      

 

 

      

 

 

 

 

9


Meritage Homes Corporation and Subsidiaries

Operating Data

(unaudited)

 

September 30, September 30, September 30, September 30,
       Three Months
Ended

December 31,
2011
       Three Months
Ended

December 31,
2010
 
       Beg.        End        Beg.        End  

Active Communities:

                   

California

       22           20           13           14   

Nevada

       3           2           5           4   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       25           22           18           18   

Arizona

       37           37           32           32   

Texas

       65           67           82           82   

Colorado

       9           10           8           9   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       111           114           122           123   

North Carolina

       —             3           —             —     

Florida

       13           18           10           10   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       13           21           10           10   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       149           157           150           151   
    

 

 

      

 

 

      

 

 

      

 

 

 

 

September 30, September 30, September 30, September 30,
       Full year
Ended

December 31,
2011
       Full year
Ended

December 31,
2010
 
       Beg.        End        Beg.        End  

Active Communities:

                   

California

       14           20           7           14   

Nevada

       4           2           6           4   
    

 

 

      

 

 

      

 

 

      

 

 

 

West Region

       18           22           13           18   

Arizona

       32           37           26           32   

Texas

       82           67           98           82   

Colorado

       9           10           6           9   
    

 

 

      

 

 

      

 

 

      

 

 

 

Central Region

       123           114           130           123   

North Carolina

       —             3           —             —     

Florida

       10           18           10           10   
    

 

 

      

 

 

      

 

 

      

 

 

 

East Region

       10           21           10           10   
    

 

 

      

 

 

      

 

 

      

 

 

 

Total

       151           157           153           151   
    

 

 

      

 

 

      

 

 

      

 

 

 

 

10


ABOUT MERITAGE HOMES CORPORATION

Meritage Homes is one of the top 10 homebuilders in the United States based on homes closed. Meritage builds a variety of homes across the Southern and Western states to appeal to a wide range of buyers, including first-time, move-up, luxury and active adults. As of December 31, 2011, the Company had 157 actively selling communities in 13 metropolitan areas, including Houston, Dallas/Ft. Worth, Austin, San Antonio, Phoenix/Scottsdale, Tucson, Las Vegas, Denver, Orlando, Raleigh and the East Bay/Central Valley and Southern California. Meritage also announced its expansion into the Tampa, Florida market in December 2011.

Meritage has designed and built more than 70,000 homes in its 26-year history, and has a reputation for its distinctive style, quality construction and positive customer experience. In 2010, Meritage launched its new Simply Smart Series™ of homes and its 99-day guaranteed completion program in certain communities. Meritage was the first large national homebuilder to be 100 percent ENERGY STAR® qualified in every home started since January 1, 2010.

Meritage Homes is listed on the NYSE under the symbol MTH.

For more information about the Company, visit http://investors.meritagehomes.com.

Click here to join our email alert list: http://www.b2i.us/irpass.asp?BzID=1474&to=ea&s=0

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management’s belief that the Company will grow its community count, sales, home closings, revenue and earnings in 2012; increase home closing margins and keep overhead costs in check; and that its strategic investments in marketing and operations will benefit future years.

Such statements are based upon preliminary financial and operating data which are subject to finalization by management and review by Meritage’s independent registered public accounting firm, as well as 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. The risks and uncertainties include but are not limited to the following: weakness in the homebuilding market resulting from the current economic downturn; interest rates and changes in the availability and pricing of residential mortgages; adverse changes in tax laws that benefit our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates and home prices in our markets; inflation in the cost of materials used to construct homes; the adverse effect of slower sales absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; our potential exposure to natural disasters; the liquidity of our joint ventures and the ability of our joint venture partners to meet their obligations to us and the joint venture; competition; the success of our strategies in the current homebuilding market and economic environment; the adverse impacts of cancellations resulting from

 

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small deposits relating to our sales contracts; construction defect and home warranty claims; our success in prevailing on contested tax positions; the impact of deferred tax valuation allowances and our ability to preserve our operating loss carryforwards; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; our failure to comply with laws and regulations; the availability and cost of materials and labor; our lack of geographic diversification; fluctuations in quarterly operating results; the Company’s financial leverage and level of indebtedness; our ability to take certain actions because of restrictions contained in the indentures for the Company’s senior and senior subordinated notes and our ability to raise additional capital when and if needed; our credit ratings; successful integration of future acquisitions; government regulations and legislative or other initiatives that seek to restrain growth or new housing construction or similar measures; acts of war; the replication of our “Green” technologies by our competitors; 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, 2010 under the caption “Risk Factors,” and updated in our recent Quarterly Reports on Form 10-Q, all of which can be found on our website.

# # #

 

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