SCOTTSDALE, AZ--(Marketwired - January 28, 2016) - Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2015.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 %Chg 2015 2014 %Chg
---------- ---------- ---- ---------- ---------- -----
Homes closed (units) 1,919 1,863 3% 6,522 5,862 11%
Home closing revenue $ 761,372 $ 688,288 11% $2,531,556 $2,142,391 18%
Average sales price -
closings $ 397 $ 369 8% $ 388 $ 365 6%
Home orders (units) 1,568 1,272 23% 7,100 5,944 19%
Home order value $ 634,181 $ 490,999 29% $2,822,785 $2,238,117 26%
Average sales price -
orders $ 404 $ 386 5% $ 398 $ 377 6%
Ending backlog
(units) 2,692 2,114 27%
Ending backlog value $1,137,681 $ 846,452 34%
Average sales price -
backlog $ 423 $ 400 6%
Net earnings $ 52,897 $ 49,208 7% $ 128,738 $ 142,241 (9)%
Diluted EPS $ 1.26 $ 1.19 6% $ 3.09 $ 3.46 (11)%
MANAGEMENT COMMENTS
"We finished the full year with double-digit growth over 2014 in closings, orders and backlog, with particularly strong performance in our east and west regions," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "Our full year orders benefitted from significant growth in the fourth quarter -- including a 16% increase in Texas -- reflecting a higher absorption pace within most of our markets, in addition to more actively selling communities.
"We achieved a 15% increase over 2014 in our pretax earnings for the fourth quarter," continued Mr. Hilton. "Our home closing revenue increased 11% as we closed more homes at higher average prices, which in turn provided greater overhead leverage and more than offset a lower gross margin on home closings. We also achieved a 100 basis point improvement in our percentage of selling, general and administrative expenses from cost controls, in addition to higher closing revenue."
Mr. Hilton added, "With continued healthy market conditions as we've been experiencing in most of our divisions, we are confident in our prospects for 2016, especially considering that we entered the year with a backlog valued at over $1.1 billion -- 34% higher than it was a year ago.
"We currently anticipate closing between 7,000 and 7,500 homes in 2016 and growing our community count 5-10% by the end of the year," concluded Mr. Hilton. "Furthermore, considering longer-term growth prospects for our industry, we believe our goal of delivering 10,000 homes in 2018 is achievable."
FOURTH QUARTER RESULTS
- Net earnings increased 7% to $52.9 million ($1.26 per diluted share) for the fourth quarter of 2015, compared to prior year net earnings of $49.2 million ($1.19 per diluted share), primarily reflecting increased revenue and lower overhead expenses as a percentage of revenue, partially offset by lower home closing gross margin, higher interest expense and a higher effective tax rate.
- Home closing revenue increased 11% due to a 3% increase in home closings, combined with an 8% increase in average price over the prior year period. The west region (California, Colorado and Arizona) grew home closing revenue by 27% over 2014, followed by the east region's 18% increase (Florida, the Carolinas, Georgia and Tennessee), and a 14% decrease in the central region (Texas) due in part to the impact of lower oil prices on the Houston market.
- Total value of homes ordered increased 29%, combining a 23% increase in orders with a 5% increase in average sales prices. Orders increased in every state but Colorado, where average community count was down 6%. Total order value was up across the board in the fourth quarter of 2015, including Texas, where orders and order value increased 16% and 29%, respectively, over the fourth quarter of 2014.
- Total active community count of 254 at year-end 2015 was 11% higher than 2014 year-end, with increases concentrated in the east and central regions, where the average actively selling communities were up 18% and 15% year-over-year in the fourth quarter, respectively. Average orders per community also increased 11% to 6.2 in the fourth quarter of 2015 from 5.6 in the fourth quarter of 2014.
- Order cancellation rate decreased to 12% in the fourth quarter of 2015 from 17% in the fourth quarter of 2014, reflecting buyer confidence and rising home values.
- Home closing gross profit increased 5% over the prior year due to higher home closing revenue, partially offset by a decline in home closing gross margin. Fourth quarter 2015 home closing margin was 19.3% compared to 20.3% in the fourth quarter of 2014, due to increases in land prices and overall construction costs exceeding home price appreciation during 2015.
- Commissions and other sales costs decreased 20 basis points from the prior year to 7.0% of home closing revenue, benefitting from higher closing revenue and tighter cost controls in the fourth quarter of 2015, compared to 7.2% of home closing revenue in the fourth quarter of 2014.
- General and administrative expenses decreased by 80 basis points to 3.4% of total closing revenue in the fourth quarter of 2015, compared to 4.2% of total closing revenue in the previous year, reflecting greater leverage from higher closing revenue and various cost reductions.
- Interest expense increased to $4.0 million or 0.5% of total closing revenue in the fourth quarter of 2015, compared to $0.6 million or 0.1% of total closing revenue in the fourth quarter of 2014, mainly due to higher long-term debt balances in 2015.
- Earnings before income taxes increased 15% to $76.1 million in the fourth quarter of 2015 compared to $66.4 million in the fourth quarter of 2014, equating to pretax margins of 9.7% in 2015 and 9.5% in 2014. The effective tax rate increased to 30% in the fourth quarter of 2015 from 26% in 2014.
FULL YEAR RESULTS
- Net income for the full year decreased 9% to $128.7 million in 2015 compared to $142.2 million in 2014 as higher revenue was offset by a lower gross margin on home closings, $2.9 million of incremental real estate related impairments compared to 2014, and a $4.1 million litigation-related charge in the third quarter of 2015.
- Home closings and closing revenue increased 11% and 18%, respectively, for 2015 over 2014, led by higher volumes and average prices in the east region, which grew home closing revenue 45% in 2015, followed by 13% and 3% increases in the west and central (Texas) regions, respectively.
- Full year home closing gross margin of 19.0% compared to 21.2% in 2014 reflects price inflation in both land and construction costs, which was only partially offset by home price increases. Gross margin was also reduced by $6.6 million of real estate related impairments in 2015, compared to $3.7 million in 2014.
- Despite lower gross margin, home closing profits increased 6% over 2014 on higher closing revenue in 2015.
- Financial services profit increased 19% in 2015 to $19.3 million from $16.2 million in 2014.
- Net orders for the year increased 19% in 2015 over 2014, and total order value increased 26% year over year, aided by a 6% increase in average sales prices in addition to a full year of orders from Legendary Communities, acquired in August 2014.
- The total value of orders in backlog at year-end 2015 was 34% higher than the prior year's ending backlog, reflecting a 27% increase in units in backlog coupled with a 6% increase in average price.
BALANCE SHEET
- Cash and cash equivalents at December 31, 2015, totaled $262.2 million, compared to $103.3 million at December 31, 2014, reflecting the issuance of $200 million of new senior notes in early June 2015, a portion of which was deployed during the year to fund the company's growth.
- Real estate assets increased by $220.6 million during the year, ending at $2.1 billion at December 31, 2015. Approximately 58% of that increase was attributable to additional work-in-process inventory for homes in backlog that were under construction. The company invested a total of approximately $709 million in land and development during 2015, less than originally planned due to high land prices in the west, slowing in the Houston market and repositioning of assets in the east.
- Meritage ended the year 2015 with approximately 27,800 total lots under control, compared to approximately 30,300 total lots at December 31, 2014, representing 4.3 and 5.2 years' supply of lots, respectively, based on trailing twelve months' closings. Much of the reduction was due to strategic sales of excess assets in certain markets, as well as the termination of certain lot purchase options in southeastern markets.
- Net debt-to-capital ratio at December 31, 2015 decreased to 40.7% from 42.9% at December 31, 2014.
CONFERENCE CALL
Management will host a conference call today to discuss the Company's results at 1:00 p.m. Eastern Time (11:00 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/10078808.
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 or 1-855-669-9657 for Canada.
A replay of the call will be available until February 15, beginning at 2:00 p.m. ET on January 29, 2016 on the website noted above, or by dialing 877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10078808.
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 Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
------------ ------------ ------------ ------------
Homebuilding:
Home closing revenue $ 761,372 $ 688,288 $ 2,531,556 $ 2,142,391
Land closing revenue 20,241 10,630 36,526 27,252
------------ ------------ ------------ ------------
Total closing
revenue 781,613 698,918 2,568,082 2,169,643
------------ ------------ ------------ ------------
Cost of home closings (614,794) (548,371) (2,049,637) (1,688,676)
Cost of land closings (14,744) (10,266) (29,736) (28,350)
------------ ------------ ------------ ------------
Total cost of
closings (629,538) (558,637) (2,079,373) (1,717,026)
------------ ------------ ------------ ------------
Home closing gross
profit 146,578 139,917 481,919 453,715
Land closing gross
profit/(loss) 5,497 364 6,790 (1,098)
------------ ------------ ------------ ------------
Total closing gross
profit 152,075 140,281 488,709 452,617
Financial Services:
Revenue 3,101 3,022 11,377 10,121
Expense (1,289) (1,368) (5,203) (4,812)
Earnings from
financial services
unconsolidated
entities and other,
net 3,942 3,588 13,097 10,869
------------ ------------ ------------ ------------
Financial services
profit 5,754 5,242 19,271 16,178
------------ ------------ ------------ ------------
Commissions and other
sales costs (53,542) (49,492) (188,418) (156,742)
General and
administrative expenses (26,775) (29,138) (112,849) (104,598)
Income/(loss) from other
unconsolidated
entities, net 77 (83) (338) (447)
Interest expense (4,003) (594) (15,965) (5,163)
Other income/(loss), net 2,499 177 (946) 6,572
------------ ------------ ------------ ------------
Earnings before income
taxes 76,085 66,393 189,464 208,417
Provision for income
taxes (23,188) (17,185) (60,726) (66,176)
------------ ------------ ------------ ------------
Net earnings $ 52,897 $ 49,208 $ 128,738 $ 142,241
============ ============ ============ ============
Earnings per share:
Basic
Earnings per share $ 1.33 $ 1.26 $ 3.25 $ 3.65
Weighted average
shares outstanding 39,667 39,133 39,593 39,017
Diluted
Earnings per share $ 1.26 $ 1.19 $ 3.09 $ 3.46
Weighted average
shares outstanding 42,214 41,696 42,164 41,614
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
December 31, December 31,
2015 2014
-------------- --------------
Assets:
Cash and cash equivalents $ 262,208 $ 103,333
Other receivables 57,296 56,763
Real estate (1) 2,098,302 1,877,682
Real estate not owned - 4,999
Deposits on real estate under option or
contract 87,839 94,989
Investments in unconsolidated entities 11,370 10,780
Property and equipment, net 33,970 32,403
Deferred tax asset 59,147 64,137
Prepaids, other assets and goodwill 80,390 71,052
-------------- --------------
Total assets $ 2,690,522 $ 2,316,138
============== ==============
Liabilities:
Accounts payable $ 106,440 $ 83,619
Accrued liabilities 161,163 154,144
Home sale deposits 36,197 29,379
Liabilities related to real estate not owned - 4,299
Loans payable and other borrowings 23,867 30,722
Senior and convertible senior notes 1,103,918 904,486
-------------- --------------
Total liabilities 1,431,585 1,206,649
-------------- --------------
Stockholders' Equity:
Preferred stock - -
Common stock 397 391
Additional paid-in capital 559,492 538,788
Retained earnings 699,048 570,310
-------------- --------------
Total stockholders' equity 1,258,937 1,109,489
-------------- --------------
Total liabilities and stockholders' equity $ 2,690,522 $ 2,316,138
============== ==============
(1) Real estate - Allocated costs:
Homes under contract under construction $ 456,138 $ 328,931
Unsold homes, completed and under
construction 307,425 302,288
Model homes 138,546 109,614
Finished home sites and home sites under
development 1,196,193 1,136,849
-------------- --------------
Total real estate $ 2,098,302 $ 1,877,682
============== ==============
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in
thousands - unaudited):
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014
------------- ------------- ------------- -------------
Depreciation and
amortization $ 3,947 $ 3,460 $ 14,241 $ 11,614
============= ============= ============= =============
Summary of
Capitalized
Interest:
Capitalized
interest, beginning
of period $ 61,396 $ 50,455 $ 54,060 $ 32,992
Interest incurred 17,877 15,041 67,542 58,374
Interest expensed (4,003) (594) (15,965) (5,163)
Interest amortized
to cost of home and
land closings (14,068) (10,842) (44,435) (32,143)
------------- ------------- ------------- -------------
Capitalized
interest, end of
period $ 61,202 $ 54,060 $ 61,202 $ 54,060
============= ============= ============= =============
December 31, December 31,
2015 2014
------------- -------------
Notes payable and
other borrowings $ 1,127,785 $ 935,208
Stockholders' equity 1,258,937 1,109,489
------------- -------------
Total capital 2,386,722 2,044,697
Debt-to-capital 47.3% 45.7%
Notes payable and
other borrowings $ 1,127,785 $ 935,208
Less: cash and
cash equivalents (262,208) (103,333)
------------- -------------
Net debt 865,577 831,875
Stockholders' equity 1,258,937 1,109,489
------------- -------------
Total net capital $ 2,124,514 $ 1,941,364
Net debt-to-capital 40.7% 42.9%
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) (unaudited)
Twelve Months Ended
December 31,
2015 2014
----------- -----------
Cash flows from operating activities:
Net earnings $ 128,738 $ 142,241
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization 14,241 11,614
Stock-based compensation 15,781 12,211
Excess income tax benefit from stock-based awards (2,043) (2,297)
Equity in earnings from unconsolidated entities (12,759) (10,422)
Distribution of earnings from unconsolidated
entities 12,650 11,613
Other 11,530 10,149
Changes in assets and liabilities:
Increase in real estate (209,407) (338,594)
Decrease/(Increase) in deposits on real estate
under option or contract 6,316 (42,278)
Increase in receivables, prepaids and other
assets (7,083) (25,032)
Increase in accounts payable and accrued
liabilities 31,883 14,688
Increase in home sale deposits 6,818 4,859
----------- -----------
Net cash used in operating activities (3,335) (211,248)
----------- -----------
Cash flows from investing activities:
Investments in unconsolidated entities (481) (515)
Distributions of capital from unconsolidated
entities - 65
Purchases of property and equipment (16,092) (20,788)
Proceeds from sales of property and equipment 86 262
Maturities/sales of investments and securities 1,555 124,599
Payments to purchase investments and securities (1,555) (35,813)
Cash paid for acquisitions - (130,677)
----------- -----------
Net cash used in by investing activities (16,487) (62,867)
----------- -----------
Cash flows from financing activities:
Repayment of loans payable and other borrowings (23,226) (10,447)
Proceeds from issuance of senior notes 200,000 -
Proceeds from issuance of common stock, net - 110,420
Debt issuance costs (3,006) -
Excess income tax benefit from stock-based awards 2,043 2,297
Proceeds from stock option exercises 2,886 1,042
----------- -----------
Net cash provided by financing activities 178,697 103,312
----------- -----------
Net increase/(decrease) in cash and cash equivalents 158,875 (170,803)
Beginning cash and cash equivalents 103,333 274,136
----------- -----------
Ending cash and cash equivalents $ 262,208 $ 103,333
=========== ===========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Three Months Ended
December 31, 2015 December 31, 2014
----------------------- -----------------------
Homes Value Homes Value
----------- ----------- ----------- -----------
Homes Closed:
Arizona 291 $ 98,004 225 $ 73,101
California 323 175,601 239 122,851
Colorado 131 57,211 146 64,696
----------- ----------- ----------- -----------
West Region 745 330,816 610 260,648
----------- ----------- ----------- -----------
Texas 559 194,879 713 227,342
----------- ----------- ----------- -----------
Central Region 559 194,879 713 227,342
----------- ----------- ----------- -----------
Florida 254 106,520 217 87,503
Georgia 72 23,735 53 17,734
North Carolina 162 66,921 138 55,870
South Carolina 83 24,217 75 24,747
Tennessee 44 14,284 57 14,444
----------- ----------- ----------- -----------
East Region 615 235,677 540 200,298
----------- ----------- ----------- -----------
Total 1,919 $ 761,372 1,863 $ 688,288
=========== =========== =========== ===========
Homes Ordered:
Arizona 253 $ 86,887 173 $ 55,489
California 215 118,370 173 96,335
Colorado 105 51,033 113 49,958
----------- ----------- ----------- -----------
West Region 573 256,290 459 201,782
----------- ----------- ----------- -----------
Texas 465 171,938 401 133,282
----------- ----------- ----------- -----------
Central Region 465 171,938 401 133,282
----------- ----------- ----------- -----------
Florida 200 80,929 168 71,692
Georgia 73 25,704 41 12,996
North Carolina 159 67,492 127 46,900
South Carolina 65 20,071 55 18,952
Tennessee 33 11,757 21 5,395
----------- ----------- ----------- -----------
East Region 530 205,953 412 155,935
----------- ----------- ----------- -----------
Total 1,568 $ 634,181 1,272 $ 490,999
=========== =========== =========== ===========
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Twelve Months Ended
December 31, 2015 December 31, 2014
----------------------- -----------------------
Homes Value Homes Value
----------- ----------- ----------- -----------
Homes Closed:
Arizona 1,008 $ 325,371 924 $ 307,282
California 888 478,174 785 395,105
Colorado 495 224,125 464 206,702
----------- ----------- ----------- -----------
West Region 2,391 1,027,670 2,173 909,089
----------- ----------- ----------- -----------
Texas 2,025 705,318 2,224 683,717
----------- ----------- ----------- -----------
Central Region 2,025 705,318 2,224 683,717
----------- ----------- ----------- -----------
Florida 843 361,127 699 277,045
Georgia 228 72,913 90 29,633
North Carolina 551 215,642 386 157,989
South Carolina 330 101,847 112 36,241
Tennessee 154 47,039 178 48,677
----------- ----------- ----------- -----------
East Region 2,106 798,568 1,465 549,585
----------- ----------- ----------- -----------
Total 6,522 $ 2,531,556 5,862 $ 2,142,391
=========== =========== =========== ===========
Homes Ordered:
Arizona 1,133 $ 377,059 838 $ 276,261
California 965 538,357 772 411,605
Colorado 559 264,643 530 235,951
----------- ----------- ----------- -----------
West Region 2,657 1,180,059 2,140 923,817
----------- ----------- ----------- -----------
Texas 2,109 746,471 2,290 747,103
----------- ----------- ----------- -----------
Central Region 2,109 746,471 2,290 747,103
----------- ----------- ----------- -----------
Florida 893 376,563 728 290,343
Georgia 270 89,755 72 22,443
North Carolina 626 258,952 438 171,843
South Carolina 348 105,838 99 33,177
Tennessee 197 65,147 177 49,391
----------- ----------- ----------- -----------
East Region 2,334 896,255 1,514 567,197
----------- ----------- ----------- -----------
Total 7,100 $ 2,822,785 5,944 $ 2,238,117
=========== =========== =========== ===========
Order Backlog:
Arizona 317 $ 117,906 192 $ 66,218
California 289 184,146 212 123,963
Colorado 332 162,151 268 121,633
----------- ----------- ----------- -----------
West Region 938 464,203 672 311,814
----------- ----------- ----------- -----------
Texas 942 350,194 858 309,041
----------- ----------- ----------- -----------
Central Region 942 350,194 858 309,041
----------- ----------- ----------- -----------
Florida 287 118,006 237 102,570
Georgia 95 33,426 53 16,584
North Carolina 260 111,478 185 68,168
South Carolina 88 30,111 70 26,120
Tennessee 82 30,263 39 12,155
----------- ----------- ----------- -----------
East Region 812 323,284 584 225,597
----------- ----------- ----------- -----------
Total 2,692 $ 1,137,681 2,114 $ 846,452
=========== =========== =========== ===========
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended
-----------------------------------------------
December 31, 2015 December 31, 2014
----------------------- -----------------------
Ending Average Ending Average
----------- ----------- ----------- -----------
Active Communities:
Arizona 41 41.0 41 41.5
California 24 25.0 24 23.0
Colorado 16 15.5 17 16.5
----------- ----------- ----------- -----------
West Region 81 81.5 82 81.0
----------- ----------- ----------- -----------
Texas 72 71.0 59 62.0
----------- ----------- ----------- -----------
Central Region 72 71.0 59 62.0
----------- ----------- ----------- -----------
Florida 31 31.0 29 27.5
Georgia 17 17.0 13 12.0
North Carolina 26 25.5 21 20.5
South Carolina 18 17.5 20 19.5
Tennessee 9 8.5 5 4.5
----------- ----------- ----------- -----------
East Region 101 99.5 88 84.0
----------- ----------- ----------- -----------
Total 254 252.0 229 227.0
=========== =========== =========== ===========
Twelve Months Ended
-----------------------------------------------
December 31, 2015 December 31, 2014
----------------------- -----------------------
Ending Average Ending Average
----------- ----------- ----------- -----------
Active Communities:
Arizona 41 41.0 41 40.5
California 24 24.0 24 23.0
Colorado 16 16.5 17 15.5
----------- ----------- ----------- -----------
West Region 81 81.5 82 79.0
----------- ----------- ----------- -----------
Texas 72 65.5 59 64.5
----------- ----------- ----------- -----------
Central Region 72 65.5 59 64.5
----------- ----------- ----------- -----------
Florida 31 30.0 29 24.5
Georgia 17 15.0 13 6.5
North Carolina 26 23.5 21 19.0
South Carolina 18 19.0 20 10.0
Tennessee 9 7.0 5 5.0
----------- ----------- ----------- -----------
East Region 101 94.5 88 65.0
----------- ----------- ----------- -----------
Total 254 241.5 229 208.5
=========== =========== =========== ===========
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 belief about its prospects for 2016 and beyond, including that the Company will achieve better results in the east region, expectations with respect to community count and closings for 2016, as well as its goal for 2018 deliveries (closings).
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.
Image Available: http://www.marketwire.com/library/MwGo/2016/1/27/11G080464/Images/TAM_Mariposa_Palermo_Ext_01-3b0c509810d4a25aad4eb871a0387294.jpg
Brent Anderson
VP Investor Relations
(972) 580-6360 (office)
investors@meritagehomes.com
