Meritage Homes Corporation Quarterly report pursuant to Section 13 or 15(d)

Earnings/(Loss) Per Share

6 Months Ended

Jun. 30, 2011

NOTE 6 — EARNINGS/(LOSS) PER SHARE

Basic and diluted earnings/(loss) per common share were calculated as follows (in thousands, except per share amounts):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011			2010
Basic weighted average number of shares outstanding		32,395		32,077		32,328			32,009

Effect of dilutive securities:
Stock options and restricted stock (1)		243		210		0			249


Diluted weighted average shares outstanding		32,638		32,287		32,328			32,258


Net income/(loss)	$	562	$	4,166	$	(6,097	)	$	6,826


Basic income/(loss) per share	$	0.02	$	0.13	$	(0.19	)	$	0.21

Diluted income/(loss) per share (1)	$	0.02	$	0.13	$	(0.19	)	$	0.21


Antidilutive stock options not included in the calculation of diluted income per share		637		782		1,822			715


(1)		For periods with a net loss, basic weighted average shares outstanding are used for diluted calculations as required by GAAP because all options and non-vested shares outstanding are considered anti-dilutive.

The entire disclosure for earnings per share.