Quarterly report pursuant to Section 13 or 15(d)

Unaudited Consolidated Statements of Cash Flows

v2.4.1.9
Unaudited Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
 3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Cash flows from operating activities:    
Net earnings $ 16,400us-gaap_NetIncomeLoss $ 25,377us-gaap_NetIncomeLoss
Adjustments to reconcile net earnings to net cash used in operating activities:    
Depreciation and amortization 3,211us-gaap_DepreciationDepletionAndAmortization 2,513us-gaap_DepreciationDepletionAndAmortization
Stock-based compensation 4,630us-gaap_ShareBasedCompensation 2,411us-gaap_ShareBasedCompensation
Excess income tax benefit from stock-based awards (1,935)us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities (2,275)us-gaap_ExcessTaxBenefitFromShareBasedCompensationOperatingActivities
Equity in earnings from unconsolidated entities (2,421)us-gaap_IncomeLossFromEquityMethodInvestments [1],[2] (2,032)us-gaap_IncomeLossFromEquityMethodInvestments [1],[2]
Distributions of earnings from unconsolidated entities 3,035us-gaap_EquityMethodInvestmentDividendsOrDistributions 3,955us-gaap_EquityMethodInvestmentDividendsOrDistributions
Other (490)us-gaap_OtherOperatingActivitiesCashFlowStatement 4,118us-gaap_OtherOperatingActivitiesCashFlowStatement
Changes in assets and liabilities:    
Increase in real estate (58,906)us-gaap_IncreaseDecreaseInInventories (132,536)us-gaap_IncreaseDecreaseInInventories
Decrease/(increase) in deposits on real estate under option or contract 3,767us-gaap_IncreaseDecreaseInDepositsOutstanding (3,071)us-gaap_IncreaseDecreaseInDepositsOutstanding
Increase in receivables, prepaids and other assets (5,695)us-gaap_IncreaseDecreaseInAccountsReceivableAndOtherOperatingAssets (13,998)us-gaap_IncreaseDecreaseInAccountsReceivableAndOtherOperatingAssets
Decrease in accounts payable and accrued liabilities (3,179)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (15,813)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Increase in home sale deposits 3,392us-gaap_IncreaseDecreaseInCustomerDeposits 1,839us-gaap_IncreaseDecreaseInCustomerDeposits
Net cash used in operating activities (38,191)us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations (129,512)us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
Cash flows from investing activities:    
Investments in unconsolidated entities (104)us-gaap_PaymentsToAcquireInterestInJointVenture (44)us-gaap_PaymentsToAcquireInterestInJointVenture
Purchases of property and equipment (4,589)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (6,995)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Proceeds from sales of property and equipment 44us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 93us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment
Maturities of investments and securities 0us-gaap_ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities 47,533us-gaap_ProceedsFromSaleAndMaturityOfHeldToMaturitySecurities
Payments to purchase investments and securities 0us-gaap_PaymentsToAcquireHeldToMaturitySecurities (35,514)us-gaap_PaymentsToAcquireHeldToMaturitySecurities
Net cash (used in)/provided by investing activities (4,649)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations 5,073us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
Cash flows from financing activities:    
Proceeds from Credit Facility, net 27,000us-gaap_ProceedsFromRepaymentsOfLinesOfCredit 0us-gaap_ProceedsFromRepaymentsOfLinesOfCredit
Repayment of loans payable and other borrowings (3,017)us-gaap_ProceedsFromRepaymentsOfDebt (2,155)us-gaap_ProceedsFromRepaymentsOfDebt
Excess income tax benefit from stock-based awards 1,935us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 2,275us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
Proceeds from issuance of common stock, net 0us-gaap_ProceedsFromIssuanceOfCommonStock 110,432us-gaap_ProceedsFromIssuanceOfCommonStock
Proceeds from stock option exercises 2,834us-gaap_ProceedsFromStockOptionsExercised 707us-gaap_ProceedsFromStockOptionsExercised
Net cash provided by financing activities 28,752us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations 111,259us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
Net decrease in cash and cash equivalents (14,088)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (13,180)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and cash equivalents, beginning of period 103,333us-gaap_CashAndCashEquivalentsAtCarryingValue 274,136us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and cash equivalents, end of period $ 89,245us-gaap_CashAndCashEquivalentsAtCarryingValue $ 260,956us-gaap_CashAndCashEquivalentsAtCarryingValue
[1] Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses.
[2] Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net and Loss from other unconsolidated entities, net on our consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures. Such profit is deferred until homes are delivered by us and title passes to a homebuyer.