SCOTTSDALE, AZ--(Marketwired - October 29, 2015) - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, announced today third quarter results for the period ended September 30, 2015.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended Nine Months Ended September
September 30, 30,
2015 2014 %Chg 2015 2014 %Chg
-------- -------- ---- ---------- ---------- -----
Homes closed (units) 1,712 1,522 12% 4,603 3,999 15%
Home closing revenue $661,884 $545,524 21% $1,770,184 $1,454,103 22%
Average sales price -
closings $ 387 $ 358 8% $ 385 $ 364 6%
Home orders (units) 1,567 1,500 4% 5,532 4,672 18%
Home order value $629,977 $573,643 10% $2,188,604 $1,747,118 25%
Average sales price -
orders $ 402 $ 382 5% $ 396 $ 374 6%
Ending backlog (units) 3,043 2,705 12%
Ending backlog value $1,264,872 $1,043,741 21%
Average sales price -
backlog $ 416 $ 386 8%
Net earnings $ 30,308 $ 32,577 (7)% $ 75,841 $ 93,033 (18)%
Diluted EPS $ 0.73 $ 0.79 (8)% $ 1.83 $ 2.27 (19)%
MANAGEMENT COMMENTS
"Our third quarter results reflect strong order growth in our east and west regions this year, which drove a 21% increase in our third quarter home closing revenue," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "I am pleased that we were able to deliver more than 1,700 homes to our customers during the quarter despite encountering headwinds from labor shortages and weather-related challenges in some of our markets.
"Rising construction costs driven by labor shortages have pressured our home closing gross margin this year, which was 19% for the third quarter," said Mr. Hilton. "However, we expect to see our margins increase over the next 12-18 months as we improve the margins in our East region, made up primarily of new markets we have entered in recent years, which have not yet achieved anticipated operating efficiencies.
"We finished the third quarter with 250 actively selling communities -- more than we have ever had in our 30-year history, which positions us for additional growth in 2016. While recent order volumes may be less robust than expected and conditions vary by market, they remain healthy overall. We believe our expanded position in many of the best markets will provide for more consistent performance over the long term," continued Mr. Hilton.
"As we enter our fourth quarter, we are doing our best to complete and close homes by year-end where schedules have slipped due to weather and labor issues, so that our customers can move in as soon as possible. Based on our backlog and current costs, we anticipate fourth quarter home closing revenue of approximately $750-800 million and diluted EPS of approximately $1.10-1.35 for the quarter."
THIRD QUARTER RESULTS
- Net earnings were $30.3 million or $0.73 per diluted share for the third quarter of 2015, compared to $32.6 million or $0.79 per diluted share in the third quarter of 2014, reflecting higher home closing revenue in the third quarter of 2015, offset by lower gross margins on closings and a charge of $4.1 million or $0.06 per diluted share due to an unfavorable ruling on litigation related to a Nevada-based joint venture.
- Home closing revenue increased 21% over the prior year's third quarter, with a 12% increase in home closings and an 8% increase in the average price of homes closed during the quarter. The East region led with 47% growth over the prior year in home closing revenue, followed by 20% growth in the West region and 3% in the Central region, where closings in the Dallas and Houston markets were delayed due to excessive spring rainfall.
- Home closing gross margin of 19.0% in the third quarter of 2015 declined from 20.4% in the third quarter of 2014 due to increased land costs and construction cost increases driven by labor shortages in certain markets, and lower than average margins in the East, primarily associated with the company's most recent acquisitions. Approximately $2.0 million of real estate impairments related to option abandonments are included in cost of sales for the quarter.
- General and administrative expenses decreased to 4.3% of total third quarter closing revenue in 2015 from 5.2% in the prior year. Commissions and other sales costs were 7.3% and 7.4% of third quarter home closing revenue in 2015 and 2014, respectively.
- Interest expense increased by $3.7 million to $4.2 million in the third quarter of 2015, primarily due to greater interest incurred associated with the issuance of $200 million of new senior notes in early June 2015.
- The third quarter effective tax rate was 35% in 2015 compared to 31% in 2014. The 2014 effective tax rate reflected the benefit of federal energy tax credits on Meritage's highly energy efficient homes. A similar benefit has yet to be recognized in 2015 as the legislative renewal of energy tax credits has not yet occurred.
- Total order value grew 10% to $630.0 million in the third quarter of 2015, compared to $573.6 million in the prior year. Total orders increased 4% and average sales prices rose 5% over 2014's third quarter. The increases were primarily driven by community count growth and stronger demand in Arizona, California and Florida, where orders grew 37%, 29% and 10%, respectively in the third quarter of 2015 compared to 2014. Order declines in Denver and Dallas were partially attributable to extended delivery schedules resulting from weather-related delays in starting new homes, which management believes have discouraged some buyers from contracting for new homes. Softer demand in Houston related to lower oil prices also contributed to the decline in Texas' orders.
- Average orders per active community during the quarter slowed to 6.4 in the third quarter of 2015 compared to 7.5 in 2014, reflecting a 23% increase in average active communities during the quarter compared to the prior year, offset by less robust demand in certain markets.
- Ending community count at September 30, 2015 grew 11% to 250 from 225 at September 30, 2014.
- Ending backlog value at September 30 was 21% higher in 2015 than in 2014, with 12% more units in backlog and an 8% increase in the average price of orders in backlog.
YEAR TO DATE RESULTS
- Net earnings were $75.8 million for the first nine months of 2015, compared to $93.0 million for the first nine months of 2014, as a 22% increase in 2015 year-to-date home closing revenue was offset by reduced home closing margins impacted by impairments and the $4.1 million litigation-related charge in the third quarter of 2015.
- Home closings for the first three quarters of the year increased 15% over 2014, and average sales prices increased 6% over the same period.
- Year-to-date home closing gross margin in 2015 was 18.9%, compared to 21.6% for 2014, reflecting higher land and construction costs with less home price appreciation in 2015, in addition to $4.0 million of real estate related impairments through the first nine months of 2015. Prior year margins benefited from a disproportionate rise in home prices relative to land and construction costs increases during 2013 and early 2014.
- Total commissions and selling expenses represented 7.6% of year-to-date 2015 home closing revenue, compared to 7.4% in 2014. General and administrative expenses declined to 4.8% of total closing revenue in 2015 compared to 5.1% in 2014.
- Interest expense for the first nine months of the year increased to $12.0 million in 2015 compared to $4.6 million in 2014 due to a higher debt balance in 2015.
BALANCE SHEET
- The company ended the third quarter of 2015 with $235.4 million in cash and cash equivalents, compared to $103.3 million at December 31, 2014. The increase in cash was primarily due to the issuance of $200 million of senior notes in June 2015, a portion of which was used to acquire real estate.
- Real estate assets increased to $2.09 billion at September 30, 2015, compared to $1.88 billion at December 31, 2014, as the balance of homes under contract under construction increased $176.6 million, accounting for most of the increase.
- Net debt-to-capital ratio at quarter-end of 43.1% was consistent with the 42.9% ratio at December 31, 2014.
- In June 2015, the company issued $200 million of 6.0% senior unsecured notes with a maturity date of June 2025, and also extended the maturity of its $500 million revolving credit facility by one year to July 2019 in order to provide ample liquidity for future growth.
- Total lot supply at the end of the quarter was approximately 29,000, compared to approximately 29,500 at September 30, 2014. Based on trailing twelve months closings, total lots at September 30, 2015 represented approximately a 4.5 year supply of lots.
CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 11:00 a.m. Eastern Time (8:00 a.m. Arizona Time). The call will be webcast with an accompanying slideshow available on the "Investor Relations" page of the Company's web site at http://investors.meritagehomes.com. Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN.
Conference Call registration link: http://dpregister.com/10072723.
Telephone participants who are unable to pre-register may dial in to 866-226-4948 on the day of the call. International dial-in number is 1-412-902-4125.
A replay of the call will be available through November 12, 2015, beginning at 1:00 p.m. ET on October 29, 2015 on the website noted above, or by dialing 877-344-7529, and referencing conference number 10072723. For more information, visit www.meritagehomes.com.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
---------- ---------- ------------ ------------
Homebuilding:
Home closing revenue $ 661,884 $ 545,524 $ 1,770,184 $ 1,454,103
Land closing revenue 8,072 11,252 16,285 16,622
---------- ---------- ------------ ------------
Total closing revenue 669,956 556,776 1,786,469 1,470,725
---------- ---------- ------------ ------------
Cost of home closings (536,267) (434,286) (1,434,843) (1,140,305)
Cost of land closings (7,445) (11,729) (14,992) (18,084)
---------- ---------- ------------ ------------
Total cost of closings (543,712) (446,015) (1,449,835) (1,158,389)
---------- ---------- ------------ ------------
Home closing gross profit 125,617 111,238 335,341 313,798
Land closing gross
profit/(loss) 627 (477) 1,293 (1,462)
---------- ---------- ------------ ------------
Total closing gross
profit 126,244 110,761 336,634 312,336
Financial Services:
Revenue 3,000 2,749 8,276 7,099
Expense (1,253) (1,238) (3,914) (3,444)
Earnings from financial
services unconsolidated
entities and other, net 3,854 2,783 9,155 7,281
---------- ---------- ------------ ------------
Financial services
profit 5,601 4,294 13,517 10,936
---------- ---------- ------------ ------------
Commissions and other sales
costs (48,097) (40,211) (134,876) (107,250)
General and administrative
expenses (28,774) (29,218) (86,074) (75,460)
Loss from other
unconsolidated entities,
net (123) (134) (415) (364)
Interest expense (4,187) (460) (11,962) (4,569)
Other income/(expense), net (3,996) 1,998 (3,445) 6,395
---------- ---------- ------------ ------------
Earnings before income taxes 46,668 47,030 113,379 142,024
Provision for income taxes (16,360) (14,453) (37,538) (48,991)
---------- ---------- ------------ ------------
Net earnings $ 30,308 $ 32,577 $ 75,841 $ 93,033
========== ========== ============ ============
Earnings per share:
Basic
Earnings per share $ 0.76 $ 0.83 $ 1.92 $ 2.39
Weighted average shares
outstanding 39,663 39,123 39,568 38,977
Diluted
Earnings per share $ 0.73 $ 0.79 $ 1.83 $ 2.27
Weighted average shares
outstanding 42,192 41,656 42,134 41,564
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
September December
30, 2015 31, 2014
---------- ----------
Assets:
Cash and cash equivalents $ 235,409 $ 103,333
Other receivables 59,617 56,763
Real estate (1) 2,088,690 1,877,682
Real estate not owned - 4,999
Deposits on real estate under option or contract 91,526 94,989
Investments in unconsolidated entities 10,374 10,780
Property and equipment, net 34,403 32,403
Deferred tax asset 66,850 64,137
Prepaids, other assets and goodwill 77,017 71,052
---------- ----------
Total assets $2,663,886 $2,316,138
========== ==========
Liabilities:
Accounts payable $ 113,869 $ 83,619
Accrued liabilities 161,803 154,144
Home sale deposits 39,587 29,379
Liabilities related to real estate not owned - 4,299
Loans payable and other borrowings 41,898 30,722
Senior and convertible senior notes 1,104,060 904,486
---------- ----------
Total liabilities 1,461,217 1,206,649
---------- ----------
Stockholders' Equity:
Preferred stock - -
Common stock 397 391
Additional paid-in capital 556,121 538,788
Retained earnings 646,151 570,310
---------- ----------
Total stockholders' equity 1,202,669 1,109,489
---------- ----------
Total liabilities and stockholders' equity $2,663,886 $2,316,138
========== ==========
(1)Real estate - Allocated costs:
Homes under contract under construction $ 505,527 $ 328,931
Unsold homes, completed and under construction 301,528 302,288
Model homes 135,323 109,614
Finished home sites and home sites under development 1,146,312 1,136,849
---------- ----------
Total real estate $2,088,690 $1,877,682
========== ==========
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands - unaudited):
Three Months Ended Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
----------- ----------- --------- ---------
Depreciation and amortization $ 3,565 $ 2,972 $ 10,294 $ 8,154
=========== =========== ========= =========
Summary of Capitalized Interest:
Capitalized interest, beginning
of period $ 58,870 $ 44,355 $ 54,060 $ 32,992
Interest incurred 17,857 14,695 49,665 43,333
Interest expensed (4,187) (460) (11,962) (4,569)
Interest amortized to cost of
home and land closings (11,144) (8,135) (30,367) (21,301)
----------- ----------- --------- ---------
Capitalized interest, end of
period $ 61,396 $ 50,455 $ 61,396 $ 50,455
=========== =========== ========= =========
September December
30, 2015 31, 2014
----------- -----------
Notes payable and other
borrowings $1,145,958 $ 935,208
Stockholders' equity 1,202,669 1,109,489
----------- -----------
Total capital 2,348,627 2,044,697
Debt-to-capital 48.8% 45.7%
Notes payable and other
borrowings $1,145,958 $ 935,208
Less: cash and cash
equivalents (235,409) (103,333)
----------- -----------
Net debt 910,549 831,875
Stockholders' equity 1,202,669 1,109,489
----------- -----------
Total net capital $2,113,218 $1,941,364
Net debt-to-capital 43.1% 42.9%
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) (unaudited)
Nine Months Ended
September 30,
2015 2014
---------- ----------
Cash flows from operating activities:
Net earnings $ 75,841 $ 93,033
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization 10,294 8,154
Stock-based compensation 12,418 9,035
Excess income tax benefit from stock-based awards (2,040) (2,197)
Equity in earnings from unconsolidated entities (8,740) (6,917)
Distribution of earnings from unconsolidated
entities 9,446 8,784
Other 1,246 8,361
Changes in assets and liabilities:
Increase in real estate (198,520) (343,763)
Decrease/(increase) in deposits on real estate
under option or contract 2,719 (27,552)
Increase in receivables, prepaids and other assets (6,067) (19,502)
Increase in accounts payable and accrued
liabilities 39,949 33,920
Increase in home sale deposits 10,208 9,015
---------- ----------
Net cash used in operating activities (53,246) (229,629)
---------- ----------
Cash flows from investing activities:
Investments in unconsolidated entities (300) (245)
Purchases of property and equipment (12,334) (16,367)
Proceeds from sales of property and equipment 92 173
Maturities of investments and securities - 115,584
Payments to purchase investments and securities - (35,697)
Cash paid for acquisitions - (130,677)
---------- ----------
Net cash used in investing activities (12,542) (67,229)
---------- ----------
Cash flows from financing activities:
Repayment of loans payable and other borrowings (4,044) (6,524)
Proceeds from issuance of senior notes 200,000 -
Debt issuance costs (3,013) -
Proceeds from issuance of common stock, net - 110,420
Excess income tax benefit from stock-based awards 2,040 2,197
Proceeds from stock option exercises 2,881 734
---------- ----------
Net cash provided by financing activities 197,864 106,827
---------- ----------
Net increase/(decrease) in cash and cash equivalents 132,076 (190,031)
Beginning cash and cash equivalents 103,333 274,136
---------- ----------
Ending cash and cash equivalents (2) $ 235,409 $ 84,105
========== ==========
(2) Ending cash and cash equivalents excludes investments and securities of $9.9 million as of September 30, 2014.
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands) (unaudited)
Three Months Ended
September 30, September 30,
2015 2014
-------------- --------------
Homes Value Homes Value
----- -------- ----- --------
Homes Closed:
Arizona 302 $ 92,888 236 $ 77,793
California 236 120,387 196 97,260
Colorado 123 56,927 114 49,792
----- -------- ----- --------
West Region 661 270,202 546 224,845
----- -------- ----- --------
Texas 517 183,455 584 178,614
----- -------- ----- --------
Central Region 517 183,455 584 178,614
----- -------- ----- --------
Florida 202 90,285 164 61,713
Georgia 62 20,663 37 11,899
North Carolina 165 63,532 104 43,413
South Carolina 80 25,812 37 11,494
Tennessee 25 7,935 50 13,546
----- -------- ----- --------
East Region 534 208,227 392 142,065
----- -------- ----- --------
Total 1,712 $661,884 1,522 $545,524
===== ======== ===== ========
Homes Ordered:
Arizona 272 $ 96,867 198 $ 67,753
California 203 110,076 157 87,610
Colorado 84 43,782 153 66,744
----- -------- ----- --------
West Region 559 250,725 508 222,107
----- -------- ----- --------
Texas 452 165,206 537 181,127
----- -------- ----- --------
Central Region 452 165,206 537 181,127
----- -------- ----- --------
Florida 227 94,114 207 86,145
Georgia 67 23,143 31 9,447
North Carolina 138 57,168 128 47,862
South Carolina 88 26,766 44 14,225
Tennessee 36 12,855 45 12,730
----- -------- ----- --------
East Region 556 214,046 455 170,409
----- -------- ----- --------
Total 1,567 $629,977 1,500 $573,643
===== ======== ===== ========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands) (unaudited)
Nine Months Ended
September 30, September 30,
2015 2014
---------------- ----------------
Homes Value Homes Value
----- ---------- ----- ----------
Homes Closed:
Arizona 717 $ 227,367 699 $ 234,181
California 565 302,573 546 272,254
Colorado 364 166,914 318 142,006
----- ---------- ----- ----------
West Region 1,646 696,854 1,563 648,441
----- ---------- ----- ----------
Texas 1,466 510,439 1,511 456,375
----- ---------- ----- ----------
Central Region 1,466 510,439 1,511 456,375
----- ---------- ----- ----------
Florida 589 254,607 482 189,542
Georgia 156 49,178 37 11,899
North Carolina 389 148,721 248 102,119
South Carolina 247 77,630 37 11,494
Tennessee 110 32,755 121 34,233
----- ---------- ----- ----------
East Region 1,491 562,891 925 349,287
----- ---------- ----- ----------
Total 4,603 $1,770,184 3,999 $1,454,103
===== ========== ===== ==========
Homes Ordered:
Arizona 880 $ 290,172 665 $ 220,772
California 750 419,987 599 315,270
Colorado 454 213,610 417 185,993
----- ---------- ----- ----------
West Region 2,084 923,769 1,681 722,035
----- ---------- ----- ----------
Texas 1,644 574,533 1,889 613,821
----- ---------- ----- ----------
Central Region 1,644 574,533 1,889 613,821
----- ---------- ----- ----------
Florida 693 295,634 560 218,651
Georgia 197 64,051 31 9,447
North Carolina 467 191,460 311 124,943
South Carolina 283 85,767 44 14,225
Tennessee 164 53,390 156 43,996
----- ---------- ----- ----------
East Region 1,804 690,302 1,102 411,262
----- ---------- ----- ----------
Total 5,532 $2,188,604 4,672 $1,747,118
===== ========== ===== ==========
Order Backlog:
Arizona 355 $ 129,023 244 $ 83,830
California 397 241,377 278 150,479
Colorado 358 168,329 301 136,371
----- ---------- ----- ----------
West Region 1,110 538,729 823 370,680
----- ---------- ----- ----------
Texas 1,036 373,135 1,170 403,101
----- ---------- ----- ----------
Central Region 1,036 373,135 1,170 403,101
----- ---------- ----- ----------
Florida 341 143,597 286 118,381
Georgia 94 31,457 65 21,322
North Carolina 263 110,907 196 77,138
South Carolina 106 34,257 90 31,915
Tennessee 93 32,790 75 21,204
----- ---------- ----- ----------
East Region 897 353,008 712 269,960
----- ---------- ----- ----------
Total 3,043 $1,264,872 2,705 $1,043,741
===== ========== ===== ==========
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended
-----------------------------
September 30, September 30,
2015 2014
-------------- --------------
Ending Average Ending Average
------ ------- ------ -------
Active Communities:
Arizona 41 42.0 42 42.0
California 26 23.0 22 18.5
Colorado 15 15.5 16 14.5
------ ------- ------ -------
West Region 82 80.5 80 75.0
------ ------- ------ -------
Texas 70 68.0 65 67.0
------ ------- ------ -------
Central Region 70 68.0 65 67.0
------ ------- ------ -------
Florida 31 30.5 26 22.0
Georgia 17 16.5 11 5.5
North Carolina 25 25.0 20 16.5
South Carolina 17 18.5 19 9.5
Tennessee 8 6.0 4 4.5
------ ------- ------ -------
East Region 98 96.5 80 58.0
------ ------- ------ -------
Total 250 245.0 225 200.0
====== ======= ====== =======
Nine Months Ended
-----------------------------
September 30, September 30,
2015 2014
-------------- --------------
Ending Average Ending Average
------ ------- ------ -------
Active Communities:
Arizona 41 41.0 42 41.0
California 26 25.0 22 22.0
Colorado 15 16.0 16 15.0
------ ------- ------ -------
West Region 82 82.0 80 78.0
------ ------- ------ -------
Texas 70 64.5 65 67.5
------ ------- ------ -------
Central Region 70 64.5 65 67.5
------ ------- ------ -------
Florida 31 30.0 26 23.0
Georgia 17 15.0 11 5.5
North Carolina 25 23.0 20 18.5
South Carolina 17 18.5 19 9.5
Tennessee 8 6.5 4 4.5
------ ------- ------ -------
East Region 98 93.0 80 61.0
------ ------- ------ -------
Total 250 239.5 225 206.5
====== ======= ====== =======
About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2014. Meritage builds and sells single-family homes for first-time, move-up, luxury and active adult buyers across the Western, Southern and Southeastern United States. Meritage builds in markets including Sacramento, San Francisco Bay area, southern coastal and Inland Empire markets in California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale, Green Valley and Tucson, Arizona; Denver and Fort Collins, Colorado; Orlando and Tampa, Florida; Raleigh and Charlotte, North Carolina; Greenville-Spartanburg and York County, South Carolina; Nashville, Tennessee and Atlanta, Georgia.
Meritage has designed and built more than 90,000 homes in its 30-year history, and has a reputation for its distinctive style, quality construction, and positive customer experience. Meritage is the industry leader in energy-efficient homebuilding and has received the U.S. Environmental Protection Agency's ENERGY STAR Partner of the Year for Sustained Excellence Award in 2013, 2014 and 2015, for innovation and industry leadership in energy efficient homebuilding.
For more information, visit investors.meritagehomes.com.
This press release and the accompanying comments during our analyst call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management's expectations with respect to future revenue growth and earnings expansion, margin expansion in new markets, estimated home closing revenue and diluted EPS for the fourth quarter of 2015, expectations to continue to grow revenue and expand earnings over the next year, the benefits of expansion into new markets, and the approval of legislation to renew federal energy tax credits.
Such statements are based upon 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. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: the availability of finished lots and undeveloped land; interest rates and changes in the availability and pricing of residential mortgages; fluctuations in the availability and cost of labor; changes in tax laws that adversely impact us or our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates; fluctuations in home prices in our markets; weakness in the homebuilding market resulting from a setback in the current economic recovery due to lower energy prices or other factors; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slower order absorption rates; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of option deposits; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our potential exposure to natural disasters or severe weather conditions; competition; construction defect and home warranty claims; adverse legal rulings; our success in prevailing on contested tax positions; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; changes in, or our failure to comply with, laws and regulations; limitations of our geographic diversification; fluctuations in quarterly operating results; our financial leverage and level of indebtedness; our ability to take certain actions because of restrictions contained in the indentures for our senior notes; our ability to raise additional capital when and if needed; our credit ratings; our compliance with government regulations and the effect of legislative or other initiatives that seek to restrain growth of new housing construction or similar measures; expiration or non-renewal of current or anticipated tax credits available to us; acts of war; the replication of our "Green" technologies by our competitors; our exposure to information technology failures and security breaches; 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, 2014 and subsequent quarterly reports on Forms 10-Q under the caption "Risk Factors," which can be found on our website.
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Contacts:
Brent Anderson
VP Investor Relations
(972) 580-6360 (office)
Brent.Anderson@meritagehomes.com
