SCOTTSDALE, Ariz., Feb. 01, 2023 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced fourth quarter and full year results for the periods ended December 31, 2022.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||
2022 | 2021 | % Chg | 2022 | 2021 | % Chg | ||||||||||||||||
Homes closed (units) | 4,540 | 3,526 | 29 | % | 14,106 | 12,801 | 10 | % | |||||||||||||
Home closing revenue | $ | 1,984,063 | $ | 1,498,813 | 32 | % | $ | 6,207,498 | $ | 5,094,873 | 22 | % | |||||||||
Average sales price - closings | $ | 437 | $ | 425 | 3 | % | $ | 440 | $ | 398 | 11 | % | |||||||||
Home orders (units) | 1,808 | 3,367 | (46 | )% | 11,759 | 13,808 | (15 | )% | |||||||||||||
Home order value | $ | 703,706 | $ | 1,459,060 | (52 | )% | $ | 5,255,600 | $ | 5,796,813 | (9 | )% | |||||||||
Average sales price - orders | $ | 389 | $ | 433 | (10 | )% | $ | 447 | $ | 420 | 6 | % | |||||||||
Ending backlog (units) | 3,332 | 5,679 | (41 | )% | |||||||||||||||||
Ending backlog value | $ | 1,524,775 | $ | 2,516,164 | (39 | )% | |||||||||||||||
Average sales price - backlog | $ | 458 | $ | 443 | 3 | % | |||||||||||||||
Earnings before income taxes | $ | 342,249 | $ | 311,497 | 10 | % | $ | 1,289,318 | $ | 954,834 | 35 | % | |||||||||
Net earnings | $ | 262,365 | $ | 237,460 | 10 | % | $ | 992,192 | $ | 737,444 | 35 | % | |||||||||
Diluted EPS | $ | 7.09 | $ | 6.25 | 13 | % | $ | 26.74 | $ | 19.29 | 39 | % | |||||||||
MANAGEMENT COMMENTS
"As a result of the Meritage team's dedication and exceptional execution, we finished the year strong, delivering 29% more homes and 32% higher home closing revenue in the fourth quarter of 2022 compared to prior year. However, ongoing economic uncertainty continued to impact buyer psychology and undermine housing demand this quarter, generating a 46% decrease in fourth quarter orders," said Steven J. Hilton, executive chairman of Meritage Homes.
"Our closings of 4,540 homes this quarter drove our $2.0 billion fourth quarter 2022 home closing revenue," added Phillippe Lord, chief executive officer of Meritage Homes. "Combined with our home closing gross margin of 25.2% and our SG&A leverage of 8.4%, we generated a 13% year-over-year increase in our diluted EPS from $6.25 to $7.09 this quarter. Excluding nonrecurring items, adjusted fourth quarter 2022 home closing gross margin was 25.7% compared to 29.2% in 2021."
"The fourth quarter 2022 sales orders of 1,808 homes were 46% lower than prior year primarily due to elevated cancellations. The cancellation rate was 39% this quarter as we proactively and aggressively validated every home in our backlog to ensure we are entering 2023 only with buyers committed to close and re-deploying available homes back to the sales team. Quarterly gross sales orders declined a more moderate 22% year-over-year. Our fourth quarter 2022 average absorption pace was 2.2 per month, which was down from 4.5 per month in the fourth quarter of 2021, but gross sales pace was 3.6 per month—at our 3-4 monthly target, affirming that buyer demand is present at the right price in today's market," Mr. Lord continued. "While we are focused on prioritizing pace over price, we let our spec inventory in production reach near-completion before we reset pricing for our supply of available inventory, which coincided with us closing a large portion of our backlog."
"Although favorable demographics and the low supply of new and resale housing inventory should drive long-term demand, we believe they were overshadowed by the macroeconomic factors that drove the slower orders this quarter," said Mr. Lord. "Looking into 2023, we are starting the new year on the right foot. We believe we have the right level of completed and near-completed homes to sell in nearly all of our stores and we are working to find the market clearing price to get back to our target absorption pace of 3-4 net sales per month. As our strategy is centered on affordable, move-in ready product, we believe we can continue to capture market share over the coming year."
"We remain focused on balance sheet discipline, ending the year with over $860 million in cash. While increasing our liquidity, we grew our community count 5% year-over-year to 271 active communities at December 31, 2022, and we expect to continue to open new stores throughout the year and return to our 300 community target over the next several quarters. In the fourth quarter, we continued rightsizing our land positions and did not add any new lots under control while terminating underperforming land deals totaling roughly 3,700 lots with a corresponding $4.2 million in walk-away charges. We spent $351 million on land acquisition and development this quarter, bringing our full year total spend to $1.5 billion," said Mr. Lord. "We had nothing drawn under our credit facility and our net debt-to-capital was just 6.8% at December 31, 2022."
FOURTH QUARTER RESULTS
YEAR TO DATE RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call to discuss its fourth quarter 2022 results at 8:00 a.m. Mountain Standard Time (10:00 a.m. Eastern Standard Time) on Thursday, February 2, 2023. The call will be webcast live with an accompanying slideshow available on the "Investor Relations" page of the Company's website at https://investors.meritagehomes.com. Telephone participants will be able to join by dialing in to 1-877-407-6951 US toll free or 1-412-902-0046 on the day of the call.
A replay of the call will be available via webcast beginning at approximately 11:00 a.m. Mountain Standard Time (1:00 p.m. Eastern Standard Time) on February 2, 2023 and extending through February 16, 2023, at https://investors.meritagehomes.com.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | |||||||||||||||
2022 | 2021 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 1,984,063 | $ | 1,498,813 | $ | 485,250 | 32 | % | |||||||
Land closing revenue | 7,328 | 12 | 7,316 | N/M | |||||||||||
Total closing revenue | 1,991,391 | 1,498,825 | 492,566 | 33 | % | ||||||||||
Cost of home closings | (1,484,071 | ) | (1,064,068 | ) | (420,003 | ) | 39 | % | |||||||
Cost of land closings | (7,600 | ) | (2,074 | ) | (5,526 | ) | 266 | % | |||||||
Total cost of closings | (1,491,671 | ) | (1,066,142 | ) | (425,529 | ) | 40 | % | |||||||
Home closing gross profit | 499,992 | 434,745 | 65,247 | 15 | % | ||||||||||
Land closing gross loss | (272 | ) | (2,062 | ) | 1,790 | (87 | )% | ||||||||
Total closing gross profit | 499,720 | 432,683 | 67,037 | 15 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 7,357 | 5,583 | 1,774 | 32 | % | ||||||||||
Expense | (3,236 | ) | (2,336 | ) | (900 | ) | 39 | % | |||||||
Earnings from financial services unconsolidated entities and other, net | 1,918 | 2,188 | (270 | ) | (12 | )% | |||||||||
Financial services profit | 6,039 | 5,435 | 604 | 11 | % | ||||||||||
Commissions and other sales costs | (110,459 | ) | (74,818 | ) | (35,641 | ) | 48 | % | |||||||
General and administrative expenses | (56,614 | ) | (53,152 | ) | (3,462 | ) | 7 | % | |||||||
Interest expense | — | (72 | ) | 72 | N/M | ||||||||||
Other income, net | 3,563 | 1,421 | 2,142 | 151 | % | ||||||||||
Earnings before income taxes | 342,249 | 311,497 | 30,752 | 10 | % | ||||||||||
Provision for income taxes | (79,884 | ) | (74,037 | ) | (5,847 | ) | 8 | % | |||||||
Net earnings | $ | 262,365 | $ | 237,460 | $ | 24,905 | 10 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 7.17 | $ | 6.36 | $ | 0.81 | 13 | % | |||||||
Weighted average shares outstanding | 36,571 | 37,334 | (763 | ) | (2 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 7.09 | $ | 6.25 | $ | 0.84 | 13 | % | |||||||
Weighted average shares outstanding | 37,009 | 37,993 | (984 | ) | (3 | )% | |||||||||
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Twelve Months Ended December 31, | |||||||||||||||
2022 | 2021 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 6,207,498 | $ | 5,094,873 | $ | 1,112,625 | 22 | % | |||||||
Land closing revenue | 61,229 | 25,237 | 35,992 | 143 | % | ||||||||||
Total closing revenue | 6,268,727 | 5,120,110 | 1,148,617 | 22 | % | ||||||||||
Cost of home closings | (4,434,480 | ) | (3,676,496 | ) | (757,984 | ) | 21 | % | |||||||
Cost of land closings | (49,646 | ) | (26,320 | ) | (23,326 | ) | 89 | % | |||||||
Total cost of closings | (4,484,126 | ) | (3,702,816 | ) | (781,310 | ) | 21 | % | |||||||
Home closing gross profit | 1,773,018 | 1,418,377 | 354,641 | 25 | % | ||||||||||
Land closing gross profit/(loss) | 11,583 | (1,083 | ) | 12,666 | (1,170 | )% | |||||||||
Total closing gross profit | 1,784,601 | 1,417,294 | 367,307 | 26 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 23,476 | 21,207 | 2,269 | 11 | % | ||||||||||
Expense | (11,133 | ) | (9,182 | ) | (1,951 | ) | 21 | % | |||||||
Earnings from financial services unconsolidated entities and other, net | 5,951 | 6,009 | (58 | ) | (1 | )% | |||||||||
Financial services profit | 18,294 | 18,034 | 260 | 1 | % | ||||||||||
Commissions and other sales costs | (323,266 | ) | (285,403 | ) | (37,863 | ) | 13 | % | |||||||
General and administrative expenses | (192,984 | ) | (181,449 | ) | (11,535 | ) | 6 | % | |||||||
Interest expense | (41 | ) | (318 | ) | 277 | (87 | )% | ||||||||
Other income, net | 2,714 | 4,864 | (2,150 | ) | (44 | )% | |||||||||
Loss on early extinguishment of debt | — | (18,188 | ) | 18,188 | N/A | ||||||||||
Earnings before income taxes | 1,289,318 | 954,834 | 334,484 | 35 | % | ||||||||||
Provision for income taxes | (297,126 | ) | (217,390 | ) | (79,736 | ) | 37 | % | |||||||
Net earnings | $ | 992,192 | $ | 737,444 | $ | 254,748 | 35 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 27.04 | $ | 19.61 | $ | 7.43 | 38 | % | |||||||
Weighted average shares outstanding | 36,694 | 37,610 | (916 | ) | (2 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 26.74 | $ | 19.29 | $ | 7.45 | 39 | % | |||||||
Weighted average shares outstanding | 37,101 | 38,233 | (1,132 | ) | (3 | )% | |||||||||
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(unaudited)
December 31, 2022 | December 31, 2021 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 861,561 | $ | 618,335 | ||||
Other receivables | 215,019 | 147,548 | ||||||
Real estate (1) | 4,358,263 | 3,734,408 | ||||||
Real estate not owned | — | 8,011 | ||||||
Deposits on real estate under option or contract | 76,729 | 90,679 | ||||||
Investments in unconsolidated entities | 11,753 | 5,764 | ||||||
Property and equipment, net | 38,635 | 37,340 | ||||||
Deferred tax assets, net | 45,452 | 40,672 | ||||||
Prepaids, other assets and goodwill | 164,689 | 124,776 | ||||||
Total assets | $ | 5,772,101 | $ | 4,807,533 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 273,267 | $ | 216,009 | ||||
Accrued liabilities | 360,615 | 337,277 | ||||||
Home sale deposits | 37,961 | 42,610 | ||||||
Liabilities related to real estate not owned | — | 7,210 | ||||||
Loans payable and other borrowings | 7,057 | 17,552 | ||||||
Senior notes, net | 1,143,590 | 1,142,486 | ||||||
Total liabilities | 1,822,490 | 1,763,144 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 366 | 373 | ||||||
Additional paid-in capital | 327,878 | 414,841 | ||||||
Retained earnings | 3,621,367 | 2,629,175 | ||||||
Total stockholders’ equity | 3,949,611 | 3,044,389 | ||||||
Total liabilities and stockholders’ equity | $ | 5,772,101 | $ | 4,807,533 | ||||
(1) Real estate – Allocated costs: | ||||||||
Homes under contract under construction | 822,428 | $ | 1,039,822 | |||||
Unsold homes, completed and under construction | 1,155,543 | 484,999 | ||||||
Model homes | 97,198 | 81,049 | ||||||
Finished home sites and home sites under development | 2,283,094 | 2,128,538 | ||||||
Total real estate | $ | 4,358,263 | $ | 3,734,408 | ||||
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Twelve Months Ended December 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 992,192 | $ | 737,444 | ||||
Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities: | ||||||||
Depreciation and amortization | 24,748 | 26,245 | ||||||
Stock-based compensation | 22,333 | 20,069 | ||||||
Loss on early extinguishment of debt | — | 18,188 | ||||||
Equity in earnings from unconsolidated entities | (6,093 | ) | (4,657 | ) | ||||
Distribution of earnings from unconsolidated entities | 5,900 | 4,951 | ||||||
Other | 10,863 | (2,911 | ) | |||||
Changes in assets and liabilities: | ||||||||
Increase in real estate | (624,522 | ) | (948,055 | ) | ||||
Decrease/(increase) in deposits on real estate under option or contract | 10,463 | (31,946 | ) | |||||
Increase receivables, prepaids and other assets | (102,950 | ) | (65,114 | ) | ||||
Increase in accounts payable and accrued liabilities | 76,985 | 76,158 | ||||||
(Decrease)/increase in home sale deposits | (4,649 | ) | 17,536 | |||||
Net cash provided by/(used in) operating activities | 405,270 | (152,092 | ) | |||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (5,796 | ) | (1,708 | ) | ||||
Purchases of property and equipment | (26,971 | ) | (25,664 | ) | ||||
Proceeds from sales of property and equipment | 481 | 551 | ||||||
Maturities/sales of investments and securities | 1,032 | 2,795 | ||||||
Payments to purchase investments and securities | (1,032 | ) | (2,795 | ) | ||||
Net cash used in investing activities | (32,286 | ) | (26,821 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of loans payable and other borrowings | (20,455 | ) | (13,589 | ) | ||||
Repayment of senior notes | — | (317,690 | ) | |||||
Proceeds from issuance of senior notes | — | 450,000 | ||||||
Payment of debt issuance costs | — | (6,102 | ) | |||||
Repurchase of shares | (109,303 | ) | (60,992 | ) | ||||
Net cash (used in)/provided by financing activities | (129,758 | ) | 51,627 | |||||
Net increase/(decrease) in cash and cash equivalents | 243,226 | (127,286 | ) | |||||
Beginning cash and cash equivalents | 618,335 | 745,621 | ||||||
Ending cash and cash equivalents | $ | 861,561 | $ | 618,335 | ||||
Supplemental Information (Dollars in thousands – unaudited):
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Depreciation and amortization | $ | 7,203 | $ | 6,353 | $ | 24,748 | $ | 26,245 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 62,090 | $ | 57,293 | $ | 56,253 | $ | 58,940 | |||||||
Interest incurred | 15,036 | 15,211 | 60,599 | 62,836 | |||||||||||
Interest expensed | — | (72 | ) | (41 | ) | (318 | ) | ||||||||
Interest amortized to cost of home and land closings | (16,957 | ) | (16,179 | ) | (56,642 | ) | (65,205 | ) | |||||||
Capitalized interest, end of period | $ | 60,169 | $ | 56,253 | $ | 60,169 | $ | 56,253 |
Reconciliation of Non-GAAP Information (Dollars in thousands – unaudited):
This press release and management’s comments and discussion about our operating results included in this press release reflect certain adjustments, including home closing gross profit, home closing gross margin, and debt-to-capital ratios. These are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operating results and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. We encourage investors to understand the methods used by other companies in the homebuilding industry to calculate these non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Home closing gross profit | $ | 499,992 | $ | 434,745 | $ | 1,773,018 | $ | 1,418,377 | ||||||||
Home closing gross margin | 25.2 | % | 29.0 | % | 28.6 | % | 27.8 | % | ||||||||
Add: Write-off of terminated land deals | 4,203 | 2,453 | 15,811 | 4,478 | ||||||||||||
Add: Warranty adjustments | 10,916 | — | 10,916 | — | ||||||||||||
Less: Retroactive vendor rebates | (5,446 | ) | — | (5,446 | ) | — | ||||||||||
Adjusted home closing gross profit | $ | 509,665 | $ | 437,198 | $ | 1,794,299 | $ | 1,422,855 | ||||||||
Adjusted home closing gross margin | 25.7 | % | 29.2 | % | 28.9 | % | 27.9 | % |
Reconciliation of Non-GAAP Information, continued (Dollars in thousands – unaudited):
December 31, 2022 | December 31, 2021 | |||||||||||
Senior notes, net, loans payable and other borrowings | $ | 1,150,647 | $ | 1,160,038 | ||||||||
Stockholders' equity | 3,949,611 | 3,044,389 | ||||||||||
Total capital | 5,100,258 | 4,204,427 | ||||||||||
Debt-to-capital | 22.6 | % | 27.6 | % | ||||||||
Senior notes, net, loans payable and other borrowings | $ | 1,150,647 | $ | 1,160,038 | ||||||||
Less: cash and cash equivalents | (861,561 | ) | (618,335 | ) | ||||||||
Net debt | 289,086 | 541,703 | ||||||||||
Stockholders’ equity | 3,949,611 | 3,044,389 | ||||||||||
Total net capital | $ | 4,238,697 | $ | 3,586,092 | ||||||||
Net debt-to-capital | 6.8 | % | 15.1 | % |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Three Months Ended | ||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||
Homes | Value | Homes | Value | |||||||||
Homes Closed: | ||||||||||||
Arizona | 601 | $ | 250,048 | 760 | $ | 305,296 | ||||||
California | 413 | 289,379 | 352 | 228,774 | ||||||||
Colorado | 203 | 123,153 | 166 | 96,091 | ||||||||
West Region | 1,217 | 662,580 | 1,278 | 630,161 | ||||||||
Texas | 1,417 | 565,630 | 1,036 | 395,253 | ||||||||
Central Region | 1,417 | 565,630 | 1,036 | 395,253 | ||||||||
Florida | 775 | 302,949 | 417 | 159,707 | ||||||||
Georgia | 315 | 137,262 | 191 | 80,262 | ||||||||
North Carolina | 425 | 174,754 | 390 | 156,721 | ||||||||
South Carolina | 204 | 61,557 | 119 | 41,626 | ||||||||
Tennessee | 187 | 79,331 | 95 | 35,083 | ||||||||
East Region | 1,906 | 755,853 | 1,212 | 473,399 | ||||||||
Total | 4,540 | $ | 1,984,063 | 3,526 | $ | 1,498,813 | ||||||
Homes Ordered: | ||||||||||||
Arizona | 198 | $ | 61,632 | 559 | $ | 238,663 | ||||||
California | 246 | 153,997 | 242 | 168,688 | ||||||||
Colorado | 18 | 7,853 | 193 | 112,344 | ||||||||
West Region | 462 | 223,482 | 994 | 519,695 | ||||||||
Texas | 614 | 208,309 | 1,127 | 452,712 | ||||||||
Central Region | 614 | 208,309 | 1,127 | 452,712 | ||||||||
Florida | 252 | 106,688 | 500 | 190,426 | ||||||||
Georgia | 117 | 44,116 | 161 | 70,017 | ||||||||
North Carolina | 182 | 64,046 | 345 | 140,339 | ||||||||
South Carolina | 94 | 24,049 | 126 | 42,247 | ||||||||
Tennessee | 87 | 33,016 | 114 | 43,624 | ||||||||
East Region | 732 | 271,915 | 1,246 | 486,653 | ||||||||
Total | 1,808 | $ | 703,706 | 3,367 | $ | 1,459,060 | ||||||
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(unaudited)
Twelve Months Ended | ||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||
Homes | Value | Homes | Value | |||||||||
Homes Closed: | ||||||||||||
Arizona | 2,200 | $ | 937,575 | 2,183 | $ | 802,401 | ||||||
California | 1,265 | 887,292 | 1,242 | 776,528 | ||||||||
Colorado | 627 | 377,242 | 630 | 335,490 | ||||||||
West Region | 4,092 | 2,202,109 | 4,055 | 1,914,419 | ||||||||
Texas | 4,556 | 1,835,498 | 4,165 | 1,500,682 | ||||||||
Central Region | 4,556 | 1,835,498 | 4,165 | 1,500,682 | ||||||||
Florida | 2,076 | 806,769 | 1,663 | 600,554 | ||||||||
Georgia | 738 | 328,031 | 647 | 249,882 | ||||||||
North Carolina | 1,421 | 590,729 | 1,390 | 528,840 | ||||||||
South Carolina | 604 | 194,412 | 377 | 129,367 | ||||||||
Tennessee | 619 | 249,950 | 504 | 171,129 | ||||||||
East Region | 5,458 | 2,169,891 | 4,581 | 1,679,772 | ||||||||
Total | 14,106 | $ | 6,207,498 | 12,801 | $ | 5,094,873 | ||||||
Homes Ordered: | ||||||||||||
Arizona | 1,540 | $ | 656,263 | 2,335 | $ | 951,730 | ||||||
California | 1,134 | 796,935 | 1,191 | 773,166 | ||||||||
Colorado | 424 | 256,958 | 750 | 429,499 | ||||||||
West Region | 3,098 | 1,710,156 | 4,276 | 2,154,395 | ||||||||
Texas | 3,641 | 1,501,591 | 4,413 | 1,700,744 | ||||||||
Central Region | 3,641 | 1,501,591 | 4,413 | 1,700,744 | ||||||||
Florida | 2,040 | 830,897 | 1,981 | 738,132 | ||||||||
Georgia | 737 | 324,126 | 694 | 283,649 | ||||||||
North Carolina | 1,197 | 503,664 | 1,501 | 591,193 | ||||||||
South Carolina | 529 | 170,149 | 390 | 132,779 | ||||||||
Tennessee | 517 | 215,017 | 553 | 195,921 | ||||||||
East Region | 5,020 | 2,043,853 | 5,119 | 1,941,674 | ||||||||
Total | 11,759 | $ | 5,255,600 | 13,808 | $ | 5,796,813 | ||||||
Order Backlog: | ||||||||||||
Arizona | 485 | $ | 206,136 | 1,145 | $ | 493,575 | ||||||
California | 262 | 177,954 | 393 | 271,383 | ||||||||
Colorado | 125 | 75,783 | 328 | 198,832 | ||||||||
West Region | 872 | 459,873 | 1,866 | 963,790 | ||||||||
Texas | 963 | 425,371 | 1,878 | 772,871 | ||||||||
Central Region | 963 | 425,371 | 1,878 | 772,871 | ||||||||
Florida | 832 | 371,505 | 868 | 352,584 | ||||||||
Georgia | 202 | 84,575 | 203 | 91,781 | ||||||||
North Carolina | 341 | 135,528 | 565 | 225,854 | ||||||||
South Carolina | 58 | 19,198 | 133 | 44,673 | ||||||||
Tennessee | 64 | 28,725 | 166 | 64,611 | ||||||||
East Region | 1,497 | 639,531 | 1,935 | 779,503 | ||||||||
Total | 3,332 | $ | 1,524,775 | 5,679 | $ | 2,516,164 | ||||||
Meritage Homes Corporation and Subsidiaries
Operating Data
(unaudited)
Three Months Ended | ||||||||
December 31, 2022 | December 31, 2021 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 46 | 49.0 | 39 | 38.5 | ||||
California | 31 | 31.5 | 22 | 20.0 | ||||
Colorado | 17 | 17.5 | 17 | 16.5 | ||||
West Region | 94 | 98.0 | 78 | 75.0 | ||||
Texas | 81 | 77.5 | 73 | 70.5 | ||||
Central Region | 81 | 77.5 | 73 | 70.5 | ||||
Florida | 29 | 29.5 | 41 | 39.5 | ||||
Georgia | 19 | 18.5 | 15 | 13.5 | ||||
North Carolina | 29 | 28.0 | 26 | 26.0 | ||||
South Carolina | 10 | 11.0 | 14 | 12.5 | ||||
Tennessee | 9 | 10.5 | 12 | 10.5 | ||||
East Region | 96 | 97.5 | 108 | 102.0 | ||||
Total | 271 | 273.0 | 259 | 247.5 |
Twelve Months Ended | ||||||||
December 31, 2022 | December 31, 2021 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 46 | 46.6 | 39 | 36.2 | ||||
California | 31 | 28.0 | 22 | 19.0 | ||||
Colorado | 17 | 17.8 | 17 | 14.6 | ||||
West Region | 94 | 92.4 | 78 | 69.8 | ||||
Texas | 81 | 76.6 | 73 | 65.4 | ||||
Central Region | 81 | 76.6 | 73 | 65.4 | ||||
Florida | 29 | 36.4 | 41 | 34.8 | ||||
Georgia | 19 | 16.2 | 15 | 11.2 | ||||
North Carolina | 29 | 28.6 | 26 | 24.6 | ||||
South Carolina | 10 | 13.2 | 14 | 8.8 | ||||
Tennessee | 9 | 11.8 | 12 | 9.2 | ||||
East Region | 96 | 106.2 | 108 | 88.6 | ||||
Total | 271 | 275.2 | 259 | 223.8 | ||||
ABOUT MERITAGE HOMES CORPORATION
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2021. The Company offers affordable, energy-efficient entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Meritage Homes has delivered over 165,000 homes in its 37-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, a nine-time recipient of the U.S. Environmental Protection Agency’s ("EPA") ENERGY STAR® Partner of the Year for Sustained Excellence Award since 2013 for innovation and industry leadership in energy-efficient homebuilding, and the recipient of the EPA's 2022 Market Leader Award for Certified Homes as well as the EPA's 2022 Indoor airPLUS Leader Award.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general; expectations about our future results; the level of our near-completed inventory; our ability to capture market share; our future community count; and projected 2023 home closings.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, 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: increases in mortgage interest rates, the availability and pricing of residential mortgages and the potential benefits of rate locks; inflation in the cost of materials used to develop communities and construct homes; supply chain and labor constraints; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the ability of our potential buyers to sell their existing homes; legislation related to tariffs; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our potential exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; the replication of our energy-efficient technologies by our competitors; shortages in the availability and cost of subcontract labor; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations related to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic (such as COVID-19), and measures that federal, state and local governments and/or health authorities implement to address it; 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, 2021 and our Form 10-Q for the quarter ended September 30, 2022 under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
Contacts: | Emily Tadano, VP Investor Relations and ESG (480) 515-8979 (office) [email protected] | |
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