Exhibit 99.1
meritage homes reports fourth quarter and full year 2010 results
achieved profitability goal for the year, with earnings of $0.22 per share for 2010
fourth quarter 2010 selected results:
| • | Reported net loss of $0.9M or $0.03 per diluted share including net tax benefit of $5M, compared to net income of $43M or $1.35 per diluted share in 2009, including a $90M net tax benefit | |
| • | Reduced adjusted pre-tax loss to $0.3M from $8M in the prior year | |
| • | Improved home closing gross margin before impairments by 320 basis points over 2009 | |
| • | Increased net sales orders by 15% over the prior year; with sequential growth over the third quarter of 2010 |
full year 2010 selected results:
| • | Generated net income of $7M or $0.22 per diluted share, compared to a net loss of $66M or ($2.12) per diluted share in 2009 | |
| • | Reduced net debt-to-capital ratio to 28% from 31% in the prior year | |
| • | Completed the year with $413M cash and short-term investments, and no short-term debt | |
| • | Issued $200M of 7.15% senior notes due in 2020 and retired $195M of notes due in 2014 and 2015 |
Scottsdale, Ariz. (February 2, 2011) — Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2010.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
(Dollars in thousands, except per share amounts)
| Three Months Ended | ||||||||||||||||||||||||
| December 31, | Full year Ended December 31, | |||||||||||||||||||||||
| 2010 | 2009 | %Chg | 2010 | 2009 | %Chg | |||||||||||||||||||
| Homes closed (units) | 837 | 1,202 | -30 | % | 3,700 | 4,039 | -8 | % | ||||||||||||||||
| Home closing revenue | $ | 214,616 | $ | 279,589 | -23 | % | $ | 940,406 | $ | 962,797 | -2 | % | ||||||||||||
| Sales orders (units) | 713 | 621 | 15 | % | 3,383 | 3,853 | -12 | % | ||||||||||||||||
| Sales order value | $ | 174,021 | $ | 162,338 | 7 | % | $ | 854,687 | $ | 912,301 | -6 | % | ||||||||||||
| Ending backlog (units) | 778 | 1,095 | -29 | % | ||||||||||||||||||||
| Ending backlog value | $ | 201,816 | $ | 287,535 | -30 | % | ||||||||||||||||||
| Net (loss)/income— incl. impairments | $ | (895 | ) | $ | 43,286 | -102 | % | $ | 7,150 | $ | (66,456 | ) | 111 | % | ||||||||||
| Adjusted pre-tax (loss)/income —excl. impairments and (loss)/gain on early extinguishment of debt | $ | (311 | ) | $ | (8,262 | ) | 96 | % | $ | 12,684 | $ | (35,141 | ) | 136 | % | |||||||||
| Diluted EPS (including impairments) | $ | (0.03 | ) | $ | 1.35 | -102 | % | $ | 0.22 | $ | (2.12 | ) | 110 | % | ||||||||||
| * | Adjusted pre-tax (loss)/income excludes impairments: See non-GAAP reconciliations of net (loss)/profit to adjusted pre-tax (loss)/income on “Operating Results” statement. |
MTH 4Q10and full year results/ 2
fourth quarter operating results
Meritage reported a net loss of $0.9 million or $0.03 per diluted share in the fourth quarter of 2010, compared to net income of $43 million or $1.35 per diluted share in the fourth quarter of 2009. The loss in 2010 included $5 million of impairments offset by a $5 million net tax benefit, while 2009 net income included $39 million of impairments, more than offset by a $90 million net tax benefit. Excluding those items, Meritage reduced its pre-tax loss to $311,000 from $8 million in the prior year.
“We achieved our number one goal for 2010, which was to be profitable for the year,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Despite lower closing revenue in 2010, we returned to profitability primarily by improving our margins and holding down our overhead expenses.”
Fourth quarter home closing revenue declined 23% year over year, with 30% fewer homes closed in 2010 than in 2009, partially offset by a 10% higher average closing price. Average prices increased to approximately $256,000 in the fourth quarter of 2010, from approximately $233,000 in the fourth quarter of 2009, reflecting a greater percentage of closings in move-up communities and in California, Colorado and Florida, higher-priced areas within Meritage’s markets.
Meritage generated home closing gross profit of $34 million in the fourth quarter 2010 compared to $17 million in 2009, and home closing gross margins of 15.8% and 6.2%, respectively. Excluding the effects of impairments on gross margins, home closing gross margin climbed to 18.1% in the fourth quarter of 2010 from 14.9% in the fourth quarter of 2009.
“We showed a 320 basis point improvement year over year in our home closing gross margin before impairments, as our newer communities continued to produce much higher margins on average than our older communities,” said Mr. Hilton. “Market conditions continued to be challenging following the expiration of the home buyer tax credit in the second quarter of 2010, which put pressure on home prices and margins.”
General and administrative expenses were 28% lower than the same quarter of 2009, largely due to certain expenses — particularly accruals for lease abandonments and discretionary awards — in 2009 that did not recur in the fourth quarter of 2010. Excluding those items, G&A was flat compared to 2009.
full year operating results
Meritage reported net income for the full year of 2010 of $7 million or $0.22 per diluted share, compared to a $66 million net loss in 2009, or ($2.12) per diluted share. Net income in 2010 was reduced by $7 million in pre-tax real estate-related impairment charges and a $3 million loss on extinguishment of debt, partially offset by a $5 million net tax benefit. By comparison, the net loss in 2009 included $129 million of impairments, partially offset by a $9 million gain on extinguishment of debt and a net tax benefit of $88 million. Excluding these items, Meritage produced pre-tax income of $13 million in 2010, compared to a pre-tax loss of $35 million in 2009.
MTH 4Q10and full year results/ 3
sales
Fourth quarter 2010 net orders for 713 homes were 15% greater than the 621 sales recorded in the prior year, despite 4% fewer average active communities year over year. Sales per community increased 21% in the fourth quarter, to 4.7 sales per community from 3.9 in 2009. The largest sales increases were in Texas with 20% year-over-year growth, and Colorado, with 73% growth.
“We closed a record high 93% of beginning backlog during the fourth quarter, as half of our closings were homes not under contract at the beginning of the quarter,” explained Mr. Hilton. “We ended the year with 29% fewer orders in backlog than we had a year ago, which will make it more challenging to be profitable in the first quarter of 2011. Even so, we expect to be more profitable in 2011 than we were in 2010.”
balance sheet
Meritage generated $33 million positive cash flow from operations for the full year 2010, after using $236 million of cash to purchase approximately 5,800 lots during the year. The Company ended the year with $413 million in cash and cash equivalents, restricted cash and short-term investments, an increase of $21 million over the year-end 2009 total. Meritage’s net debt to total capital ratio improved to 28% at December 31, 2010, from 31% at December 31, 2009.
Meritage put approximately 7,000 lots under contract in 2010, including 63 new communities. At December 31, 2010, Meritage controlled 15,224 lots representing approximately 4.1 years supply based on trailing twelve months closings, compared to a total of 12,906 lots or 3.2 years lot supply at December 31, 2009. Approximately 85% of total lots were owned at year-end 2010, compared to 77% in 2009, and 56% of year-end 2010 lots were purchased in the last two years.
summary
“In a year when market conditions remained very challenging for the homebuilding industry, it was gratifying to return to profitability in 2010, which we believe was the direct result of successfully executing our strategies,” said Mr. Hilton. “We’ve dramatically reduced our lot and construction costs over the last few years, carefully controlled our overhead costs, repositioned our communities to address each of our markets opportunistically, redesigned our homes to be more efficient and appealing, and emerged as the leader in profitable, energy efficient home building.
“Meritage has received several awards for our leadership in advanced green building, including in 2010 theAlliance Home Quality and Performance Leadershipaward, and thePubby Award for Community of the Year.” Mr. Hilton continued, “Most recently, Meritage received the 2011Energy Value Housing Awardfrom the National Association of Homebuilders for our Lyon’s Gate Community located in Gilbert, Arizona, and was also awarded the 2011People’s Choice Award, recognizing Meritage Homes for voluntarily incorporating energy efficiency in the design, construction & marketing of our homes.
MTH 4Q10and full year results/ 4
“I believe Meritage is in the best shape it’s ever been — stronger, leaner, faster and more nimble than ever before — and we’re poised to take advantage of opportunities to grow and increase our profitability as the market recovers. I am confident in our strategies and our organization, and optimistic about our prospects for the coming year.”
conference call
Management will host a conference call to discuss these results on February 3, 2011 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time.) 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 877-485-3104 with a passcode of “Meritage”. Participants are encouraged to dial in five minutes before the call begins. A replay of the call will be available after 12:00 p.m. ET, through March 2, 2011 on the website noted above, or by dialing 877-660-6853, and referencing account 356 and passcode 364919.
| Contacts: | Investor Relations: | |
| Brent Anderson | ||
| Vice President-Investor Relation | ||
| (972)580-6360 |
MTH 4Q10and full year results/ 5
Meritage Homes Corporation and Subsidiaries
Operating Results
(Unaudited)
(In thousands, except per share data)
Operating Results
(Unaudited)
(In thousands, except per share data)
| Three Months Ended | Full year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Operating results | ||||||||||||||||
| Home closing revenue | $ | 214,616 | $ | 279,589 | $ | 940,406 | $ | 962,797 | ||||||||
| Land closing revenue | 28 | 6,231 | 1,250 | 7,516 | ||||||||||||
| Total closing revenue | 214,644 | 285,820 | 941,656 | 970,313 | ||||||||||||
| Home closing gross profit | 34,001 | 17,244 | 167,456 | 18,693 | ||||||||||||
| Land closing gross (loss)/profit | (18 | ) | (14,192 | ) | 240 | (14,642 | ) | |||||||||
| Total closing gross profit | 33,983 | 3,052 | 167,696 | 4,051 | ||||||||||||
| Commissions and other sales costs | (18,346 | ) | (23,058 | ) | (76,798 | ) | (78,683 | ) | ||||||||
| General and administrative expenses | (12,684 | ) | (17,528 | ) | (59,784 | ) | (59,461 | ) | ||||||||
| Interest expense | (8,449 | ) | (8,016 | ) | (33,722 | ) | (36,531 | ) | ||||||||
| (Loss)/gain on extinguishment of debt | — | — | (3,454 | ) | 9,390 | |||||||||||
| Other income/(loss), net | 77 | (1,447 | ) | 8,546 | 6,435 | |||||||||||
| (Loss)/income before income taxes | (5,419 | ) | (46,997 | ) | 2,484 | (154,799 | ) | |||||||||
| Benefit for income taxes | 4,524 | 90,283 | 4,666 | 88,343 | ||||||||||||
| Net (loss)/income | $ | (895 | ) | $ | 43,286 | $ | 7,150 | $ | (66,456 | ) | ||||||
Earnings/(loss) per share | ||||||||||||||||
| Basic: | ||||||||||||||||
| (Loss)/earnings per share | $ | (0.03 | ) | $ | 1.36 | $ | 0.22 | $ | (2.12 | ) | ||||||
| Weighted average shares outstanding | 32,127 | 31,805 | 32,060 | 31,350 | ||||||||||||
| Diluted: | ||||||||||||||||
| (Loss)/earnings per share | $ | (0.03 | ) | $ | 1.35 | $ | 0.22 | $ | (2.12 | ) | ||||||
| Weighted average shares outstanding | 32,127 | 32,037 | 32,322 | 31,350 | ||||||||||||
Non-GAAP Reconciliations: | ||||||||||||||||
| Total closing gross profit | $ | 33,983 | $ | 3,052 | $ | 167,696 | $ | 4,051 | ||||||||
| Add Real estate-related impairments: | ||||||||||||||||
| Terminated lot options and land sales | 1,047 | 19,460 | 1,047 | 85,679 | ||||||||||||
| Impaired projects | 3,878 | 19,273 | 5,404 | 40,537 | ||||||||||||
| Adjusted closing gross profit | $ | 38,908 | $ | 41,785 | $ | 174,147 | $ | 130,267 | ||||||||
| (Loss)/income before income taxes | $ | (5,419 | ) | $ | (46,997 | ) | $ | 2,484 | $ | (154,799 | ) | |||||
| Add: Real estate-related and joint venture (JV) impairments: | ||||||||||||||||
| Terminated lot options and land sales | 1,047 | 19,460 | 1,047 | 85,679 | ||||||||||||
| Impaired projects | 3,878 | 19,273 | 5,404 | 40,537 | ||||||||||||
| Joint venture impairments | 183 | 2 | 295 | 2,832 | ||||||||||||
| Loss/(gain) on early extinguishment of debt | — | — | 3,454 | (9,390 | ) | |||||||||||
| Adjusted (loss)/income before income taxes | $ | (311 | ) | $ | (8,262 | ) | $ | 12,684 | $ | (35,141 | ) | |||||
MTH 4Q10and full year results/ 6
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
| December 31, 2010 | December 31, 2009 | |||||||
Assets: | ||||||||
| Cash and cash equivalents | $ | 103,953 | $ | 249,331 | ||||
| Investments and securities | 299,345 | 125,699 | ||||||
| Restricted cash | 9,344 | 16,348 | ||||||
| Income tax receivable | — | 92,509 | ||||||
| Other receivables | 20,835 | 22,934 | ||||||
Real estate(1) | 738,928 | 675,037 | ||||||
| Investments in unconsolidated entities | 10,987 | 11,882 | ||||||
| Deposits on real estate under option or contract | 10,359 | 8,636 | ||||||
| Other assets | 31,187 | 40,291 | ||||||
| Total assets | $ | 1,224,938 | $ | 1,242,667 | ||||
Liabilities: | ||||||||
| Accounts payable, accrued liabilities, home sale deposits and other liabilities | $ | 119,163 | $ | 152,233 | ||||
| Senior notes | 479,905 | 479,134 | ||||||
| Senior subordinated notes | 125,875 | 125,875 | ||||||
| Total liabilities | 724,943 | 757,242 | ||||||
| Total equity | 499,995 | 485,425 | ||||||
| Total liabilities and equity | $ | 1,224,938 | $ | 1,242,667 | ||||
(1)Real estate — Allocated costs: | ||||||||
| Homes under contract under construction | $ | 96,844 | $ | 114,769 | ||||
| Unsold homes, completed and under construction | 86,869 | 73,442 | ||||||
| Model homes | 36,966 | 37,601 | ||||||
| Finished homesites and homesites under development | 454,718 | 407,592 | ||||||
| Land held for development or sale | 63,531 | 41,633 | ||||||
| Total allocated costs | $ | 738,928 | $ | 675,037 | ||||
Supplemental Information and Non-GAAP Financial Disclosures (In thousands — unaudited):
| Three Months Ended | As of and for the Full Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Interest amortized to cost of sales and interest expense | 10,805 | 13,355 | 45,733 | 57,795 | ||||||||||||
| Depreciation and amortization | 1,835 | 2,296 | 7,974 | 8,843 | ||||||||||||
Net debt-to-capital: | ||||||||||||||||
| Notes payable and other borrowings | $ | 605,780 | $ | 605,009 | ||||||||||||
| Less: cash and cash equivalents, restricted cash, and investments and securities | (412,642 | ) | (391,378 | ) | ||||||||||||
| Net debt | 193,138 | 213,631 | ||||||||||||||
| Stockholders’ equity | 499,995 | 485,425 | ||||||||||||||
| Capital | $ | 693,133 | $ | 699,056 | ||||||||||||
| Net debt-to-capital | 27.9 | % | 30.6 | % | ||||||||||||
MTH 4Q10and full year results/ 7
Meritage Homes Corporation and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
Condensed Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
| Three Months Ended | Full year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net (loss)/income | $ | (895 | ) | $ | 43,286 | $ | 7,150 | $ | (66,456 | ) | ||||||
| Loss/(gain) on early extinguishment of debt | — | — | 3,454 | (9,390 | ) | |||||||||||
| Real-estate related impairments | 4,925 | 38,733 | 6,451 | 126,216 | ||||||||||||
| Equity in earnings from JVs (including impairments) and distributions of JV earnings, net | 616 | 282 | 2,020 | 4,273 | ||||||||||||
| Decrease/(increase) in real estate and deposits, net | 1,957 | 13,908 | (69,964 | ) | 108,628 | |||||||||||
| Other operating activities | (12,215 | ) | (69,569 | ) | 83,440 | 20,803 | ||||||||||
Net cash (used in)/provided by operating activities | (5,612 | ) | 26,640 | 32,551 | 184,074 | |||||||||||
| Net payments to purchase investments and securities | (183,923 | ) | (125,699 | ) | (424,639 | ) | (125,699 | ) | ||||||||
| (Payments)/distribution to fund restricted cash | (396 | ) | 2,256 | 7,004 | (16,348 | ) | ||||||||||
| Other financing activities | 148,268 | (1,307 | ) | 243,120 | (3,372 | ) | ||||||||||
Cash used in investing activities | (36,051 | ) | (124,750 | ) | (174,515 | ) | (145,419 | ) | ||||||||
| Proceeds from issuance of new debt | — | — | 195,134 | — | ||||||||||||
| Debt issuance cost | — | — | (3,067 | ) | — | |||||||||||
| Repayments of senior notes | — | — | (197,543 | ) | — | |||||||||||
| Proceeds from stock option exercises | 292 | 490 | 2,062 | 4,753 | ||||||||||||
Net cash provided by/(used in) financing activities | 292 | 490 | (3,414 | ) | 4,753 | |||||||||||
Net (decrease)/increase in cash | (41,371 | ) | (97,620 | ) | (145,378 | ) | 43,408 | |||||||||
Beginning cash and cash equivalents | 145,324 | 346,951 | 249,331 | 205,923 | ||||||||||||
Ending cash and cash equivalents (1) | $ | 103,953 | $ | 249,331 | $ | 103,953 | $ | 249,331 | ||||||||
| (1) | Ending cash and cash equivalents balances at December 31 exclude investments and securities of $299 million and restricted cash of $9 million in 2010, and $126 million and $16 million, respectively, in 2009. |
MTH 4Q10and full year results/ 8
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Operating Data
(Dollars in thousands)
(unaudited)
| For the Three Months Ended December 31, | ||||||||||||||||
| 2010 | 2009 | |||||||||||||||
| Homes | Value | Homes | Value | |||||||||||||
Homes Closed: | ||||||||||||||||
| California | 94 | $ | 32,696 | 130 | $ | 40,155 | ||||||||||
| Nevada | 16 | 3,378 | 18 | 3,325 | ||||||||||||
West Region | 110 | 36,074 | 148 | 43,480 | ||||||||||||
| Arizona | 152 | 36,970 | 218 | 45,044 | ||||||||||||
| Texas | 450 | 105,205 | 726 | 163,344 | ||||||||||||
| Colorado | 52 | 16,099 | 40 | 11,223 | ||||||||||||
Central Region | 654 | 158,274 | 984 | 219,611 | ||||||||||||
| Florida | 73 | 20,268 | 70 | 16,498 | ||||||||||||
East Region | 73 | 20,268 | 70 | 16,498 | ||||||||||||
| Total | 837 | $ | 214,616 | 1,202 | $ | 279,589 | ||||||||||
Homes Ordered: | ||||||||||||||||
| California | 61 | $ | 20,011 | 63 | $ | 22,921 | ||||||||||
| Nevada | 20 | 4,053 | 20 | 3,718 | ||||||||||||
West Region | 81 | 24,064 | 83 | 26,639 | ||||||||||||
| Arizona | 118 | 29,244 | 117 | 26,711 | ||||||||||||
| Texas | 401 | 87,258 | 334 | 86,563 | ||||||||||||
| Colorado | 57 | 17,425 | 33 | 9,506 | ||||||||||||
Central Region | 576 | 133,927 | 484 | 122,780 | ||||||||||||
| Florida | 56 | 16,030 | 54 | 12,919 | ||||||||||||
East Region | 56 | 16,030 | 54 | 12,919 | ||||||||||||
| Total | 713 | $ | 174,021 | 621 | $ | 162,338 | ||||||||||
MTH 4Q10and full year results/ 9
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Operating Data
(Dollars in thousands)
(unaudited)
| For the Full year Ended December 31, | ||||||||||||||||
| 2010 | 2009 | |||||||||||||||
| Homes | Value | Homes | Value | |||||||||||||
Homes Closed: | ||||||||||||||||
| California | 417 | $ | 147,194 | 348 | $ | 116,197 | ||||||||||
| Nevada | 81 | 16,006 | 130 | 27,049 | ||||||||||||
West Region | 498 | 163,200 | 478 | 143,246 | ||||||||||||
| Arizona | 700 | 156,117 | 781 | 156,107 | ||||||||||||
| Texas | 2,028 | 487,797 | 2,405 | 566,879 | ||||||||||||
| Colorado | 162 | 48,820 | 145 | 44,225 | ||||||||||||
Central Region | 2,890 | 692,734 | 3,331 | 767,211 | ||||||||||||
| Florida | 312 | 84,472 | 230 | 52,340 | ||||||||||||
East Region | 312 | 84,472 | 230 | 52,340 | ||||||||||||
| Total | 3,700 | $ | 940,406 | 4,039 | $ | 962,797 | ||||||||||
Homes Ordered: | ||||||||||||||||
| California | 373 | $ | 128,167 | 350 | $ | 116,609 | ||||||||||
| Nevada | 79 | 15,704 | 119 | 23,267 | ||||||||||||
West Region | 452 | 143,871 | 469 | 139,876 | ||||||||||||
| Arizona | 678 | 155,987 | 738 | 146,006 | ||||||||||||
| Texas | 1,776 | 417,840 | 2,233 | 518,288 | ||||||||||||
| Colorado | 175 | 54,328 | 140 | 42,416 | ||||||||||||
Central Region | 2,629 | 628,155 | 3,111 | 706,710 | ||||||||||||
| Florida | 302 | 82,661 | 273 | 65,715 | ||||||||||||
East Region | 302 | 82,661 | 273 | 65,715 | ||||||||||||
| Total | 3,383 | $ | 854,687 | 3,853 | $ | 912,301 | ||||||||||
Order Backlog: | ||||||||||||||||
| California | 45 | $ | 15,295 | 89 | $ | 34,322 | ||||||||||
| Nevada | 12 | 2,369 | 14 | 2,671 | ||||||||||||
West Region | 57 | 17,664 | 103 | 36,993 | ||||||||||||
| Arizona | 125 | 31,980 | 147 | 32,110 | ||||||||||||
| Texas | 463 | 111,607 | 715 | 181,564 | ||||||||||||
| Colorado | 52 | 16,964 | 39 | 11,456 | ||||||||||||
Central Region | 640 | 160,551 | 901 | 225,130 | ||||||||||||
| Florida | 81 | 23,601 | 91 | 25,412 | ||||||||||||
East Region | 81 | 23,601 | 91 | 25,412 | ||||||||||||
| Total | 778 | $ | 201,816 | 1,095 | $ | 287,535 | ||||||||||
MTH 4Q10and full year results/ 10
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Operating Data
(unaudited)
| Three Months Ended | Three Months Ended | |||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||
| Beg. | End | Beg. | End | |||||||||||||
Active Communities: | ||||||||||||||||
| California | 13 | 14 | 9 | 7 | ||||||||||||
| Nevada | 5 | 4 | 6 | 6 | ||||||||||||
West Region | 18 | 18 | 15 | 13 | ||||||||||||
| Arizona | 32 | 32 | 28 | 26 | ||||||||||||
| Texas | 82 | 82 | 102 | 98 | ||||||||||||
| Colorado | 8 | 9 | 3 | 6 | ||||||||||||
Central Region | 122 | 123 | 133 | 130 | ||||||||||||
| Florida | 10 | 10 | 14 | 10 | ||||||||||||
East Region | 10 | 10 | 14 | 10 | ||||||||||||
| Total | 150 | 151 | 162 | 153 | ||||||||||||
| Full year Ended | Full year Ended | |||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||
| Beg. | End | Beg. | End | |||||||||||||
Active Communities: | ||||||||||||||||
| California | 7 | 14 | 12 | 7 | ||||||||||||
| Nevada | 6 | 4 | 12 | 6 | ||||||||||||
West Region | 13 | 18 | 24 | 13 | ||||||||||||
| Arizona | 26 | 32 | 31 | 26 | ||||||||||||
| Texas | 98 | 82 | 109 | 98 | ||||||||||||
| Colorado | 6 | 9 | 3 | 6 | ||||||||||||
Central Region | 130 | 123 | 143 | 130 | ||||||||||||
| Florida | 10 | 10 | 11 | 10 | ||||||||||||
East Region | 10 | 10 | 11 | 10 | ||||||||||||
| Total | 153 | 151 | 178 | 153 | ||||||||||||
MTH 4Q10and full year results/ 11
About Meritage Homes Corporation
Meritage Homes Corporation is the 9th largest homebuilder in the U.S. based on homes closed. Meritage offers a variety of homes across the Southern and Western states designed to appeal to a wide range of home buyers, including first-time, move-up, luxury and active adult buyers, with base prices starting from under $100,000. As of December 31, 2010, the Company had 151 actively selling communities in 12 metropolitan areas including Houston, Dallas/Ft. Worth, Austin, San Antonio, Phoenix/Scottsdale, Tucson, Las Vegas, Denver, Orlando, and the East Bay/Central Valley and Inland Empire of California.
In 2010, Meritage celebrated its 25th Anniversary, launched a new Simply Smart Series™ of homes and a 99-day guaranteed completion program in certain communities, and is the only large national homebuilder to be 100% ENERGY STAR® qualified in every home started since January 1, 2010. Meritage has designed and built nearly 70,000 homes in its 25-year history, and has a reputation for its distinctive style, quality construction and positive customer experience. To find a Meritage community near you, go towww.meritagehomes.com.
Meritage Homes is listed on the NYSE under the symbol MTH.
For more information about the Company, visit http://investors.meritagehomes.com
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include our outlook that it will be more challenging to be profitable in the first quarter of 2011, that we expect to be more profitable in 2011 than we were in 2010, and that we are poised to take advantage of opportunities to grow and increase our profitability as the market recovers. Such statements are based upon preliminary financial and operating data which are subject to finalization by management and review by our independent registered public accountants, 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.
MTH 4Q10and full year results/ 12
Meritage’s business is subject to a number of risks and uncertainties, including: 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; the adverse effect of slower sales absorption rates; potential write-downs or write-offs of assets, including pre-acquisition costs and deposits; 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; 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; fluctuations in housing demand, and the cost and availability of real estate and other matters that are outside of our control; 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; inflation in the cost of materials used to construct homes; 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; the impact of future capital raising transactions we may engage in; successful integration of future acquisitions; government regulations and legislative or other initiatives that seek to restrain growth or new housing construction or similar measures; consumer confidence, which can be impacted by economic and other factors such as terrorism, war, or threats thereof and our potential exposure to natural disasters; 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, 2009 under the caption “Risk Factors,” and updated in our most recent Quarterly Report on Form 10-Q, all of which can be found on our website. As a result of these and other factors, the Company’s stock and note prices may fluctuate dramatically.
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