Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

v3.25.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE; STOCKHOLDERS' EQUITY
Basic and diluted earnings per common share were calculated as follows (in thousands, except per share amounts):
 
Years Ended December 31,
2024 2023 2022
Basic weighted average number of shares outstanding 72,476  73,238  73,388 
Effect of dilutive securities:
Unvested restricted stock 856  900  814 
Diluted average shares outstanding 73,332  74,138  74,202 
Net earnings $ 786,186  $ 738,748  $ 992,192 
Basic earnings per share $ 10.85  $ 10.09  $ 13.52 
Diluted earnings per share $ 10.72  $ 9.96  $ 13.37 

Stock Split
On November 21, 2024, our Board of Directors declared a two-for-one stock split of Meritage’s common stock in the form of a stock dividend. Each stockholder of record at the close of business on December 31, 2024 received one additional share of common stock for each share of common stock held, payable after the close of market on January 2, 2025. Trading began on a split-adjusted basis on January 3, 2025. There was no adjustment to the number of authorized shares or the par value. As required by ASC 260, Earnings Per Share, all share and per share amounts in the accompanying consolidated financial statements have been retroactively adjusted to reflect the Stock Split for all periods presented, inclusive of dividends and share repurchases.
Dividends
During the years ended December 31, 2024 and 2023, our Board of Directors approved, and we paid, a quarterly cash dividend on common stock of $0.375 and $0.135 per share, respectively. Quarterly dividends declared and paid during the years ended December 31, 2024 and 2023 totaled $1.50 and $0.54 per share, respectively.
Excise Tax on Stock Repurchases
The Inflation Reduction Act of 2022 (the "IRA"), which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During the years ended December 31, 2024 and 2023, we reflected the applicable excise tax in Additional paid-in capital as part of the cost basis of the stock repurchased and recorded a corresponding liability for the excise taxes payable in Accrued liabilities on the accompanying consolidated balance sheets.