Quarterly report pursuant to Section 13 or 15(d)

Unaudited Consolidated Statements of Cash Flows

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Unaudited Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net earnings $ 45,533 $ 60,456
Adjustments to reconcile net earnings to net cash used in operating activities:    
Depreciation and amortization 6,729 5,182
Stock-based compensation 8,465 5,264
Excess income tax benefit from stock-based awards (2,012) (2,194)
Equity in earnings from unconsolidated entities [1],[2] (5,009) (4,268)
Distributions of earnings from unconsolidated entities 5,769 6,119
Other 424 3,955
Changes in assets and liabilities:    
Increase in real estate (144,450) (229,805)
Decrease/(increase) in deposits on real estate under option or contract 3,604 (7,986)
Increase in receivables, prepaids and other assets (10,346) (15,121)
Increase in accounts payable and accrued liabilities 4,996 2,247
Increase in home sale deposits 9,349 5,537
Net cash used in operating activities (76,948) (170,614)
Cash flows from investing activities:    
Investments in unconsolidated entities (282) (233)
Purchases of property and equipment (7,829) (11,864)
Proceeds from sales of property and equipment 62 146
Maturities of investments and securities 0 65,388
Payments to purchase investments and securities 0 (35,614)
Net cash (used in)/provided by investing activities (8,049) 17,823
Cash flows from financing activities:    
Proceeds from Credit Facility, net 0 0
Repayment of loans payable and other borrowings (3,211) (4,036)
Proceeds from issuance of senior notes 200,000 0
Debt issuance costs (2,955) 0
Excess income tax benefit from stock-based awards 2,012 2,194
Proceeds from issuance of common stock, net 0 110,420
Proceeds from stock option exercises 2,839 707
Net cash provided by financing activities 198,685 109,285
Net increase/(decrease) in cash and cash equivalents 113,688 (43,506)
Cash and cash equivalents, beginning of period 103,333 274,136
Cash and cash equivalents, end of period $ 217,021 $ 230,630
[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.