SCOTTSDALE, Ariz., July 25, 2018 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, reported its second quarter results for the period ended June 30, 2018.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2018 | 2017 | % Chg | 2018 | 2017 | % Chg | |||||||||||||||||
Homes closed (units) | 2,139 | 1,906 | 12 | % | 3,864 | 3,487 | 11 | % | ||||||||||||||
Home closing revenue | $ | 872,383 | $ | 797,780 | 9 | % | $ | 1,600,915 | $ | 1,458,397 | 10 | % | ||||||||||
Average sales price - closings | $ | 408 | $ | 419 | (3 | )% | $ | 414 | $ | 418 | (1 | )% | ||||||||||
Home orders (units) | 2,250 | 2,153 | 5 | % | 4,608 | 4,288 | 7 | % | ||||||||||||||
Home order value | $ | 917,996 | $ | 878,718 | 4 | % | $ | 1,880,792 | $ | 1,771,421 | 6 | % | ||||||||||
Average sales price - orders | $ | 408 | $ | 408 | — | % | $ | 408 | $ | 413 | (1 | )% | ||||||||||
Ending backlog (units) | 3,619 | 3,428 | 6 | % | ||||||||||||||||||
Ending backlog value | $ | 1,528,756 | $ | 1,448,782 | 6 | % | ||||||||||||||||
Average sales price - backlog | $ | 422 | $ | 423 | — | % | ||||||||||||||||
Earnings before income taxes | $ | 71,185 | $ | 63,205 | 13 | % | $ | 120,069 | $ | 99,974 | 20 | % | ||||||||||
Net earnings | $ | 53,838 | $ | 41,580 | 29 | % | $ | 97,712 | $ | 65,152 | 50 | % | ||||||||||
Diluted EPS | $ | 1.31 | $ | 0.98 | 34 | % | $ | 2.37 | $ | 1.54 | 54 | % | ||||||||||
MANAGEMENT COMMENTS
“We continued to experience generally healthy demand in our markets, especially for our entry-level LiVE.NOW.® homes, and our second quarter performance reflects the results of our strategy to address that demand, as well as the successful execution of our strategic initiatives to improve profitability,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our overall orders pace was 6% higher in the second quarter than it was in 2017 and is up 8% in the first half of the year. It’s evident that our LiVE.NOW. homes are driving the increases in orders pace, as they made up 44% of our orders this quarter compared to just 35% in last year’s second quarter.
“Our home closing gross margin for the quarter was 60 bps higher than last year’s second quarter, and we are particularly pleased with the improvements in our East region,” Mr. Hilton added. “This was our fifth consecutive quarter of year-over-year gains in home closing gross margin, despite significant increases in materials and labor costs over the last year.”
He continued, “We delivered a 13% increase in pre-tax earnings and our diluted earnings per share for the quarter was up 34% over last year, as the reduction in corporate tax rates for 2018 and our 2017 retirement of convertible notes are also positively impacting our diluted EPS this year.
"We expect continued healthy demand for entry-level homes and are maintaining our projections for full year 2018 home closings and total home closing revenue to grow to approximately 8,450-8,850 and $3.5-3.65 billion, respectively. Considering the improvement in our second quarter home closing gross margin, we are adjusting our expectation for the full year to 18-18.5%, tempered by potential further increases in materials costs due to recently proposed tariffs. Based on our strong second quarter earnings and improved overhead leverage for the year, we are increasing our projection for pre-tax earnings to $295-315 million for the year."
Mr. Hilton added, “We expect to use part of our free cash flow over the next several quarters to repurchase up to $100 million of Meritage Homes stock under a new share repurchase program authorized by our board, replacing our prior program adopted in 2006. We may begin repurchasing shares as early as this quarter, depending on market and other conditions.”
SECOND QUARTER RESULTS
YEAR TO DATE RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call to discuss the results at 8:00 a.m. Arizona Time (11:00 a.m. Eastern Time) on Thursday, July 26.
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/10121676
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 beginning at approximately 1:00 p.m. ET on July 26 and extending through August 9, 2018, 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 10121676.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Homebuilding: | ||||||||||||||||
Home closing revenue | $ | 872,383 | $ | 797,780 | $ | 1,600,915 | $ | 1,458,397 | ||||||||
Land closing revenue | 5,112 | 4,198 | 19,144 | 16,353 | ||||||||||||
Total closing revenue | 877,495 | 801,978 | 1,620,059 | 1,474,750 | ||||||||||||
Cost of home closings | (712,868 | ) | (656,870 | ) | (1,317,070 | ) | (1,210,219 | ) | ||||||||
Cost of land closings | (5,799 | ) | (4,198 | ) | (21,041 | ) | (13,858 | ) | ||||||||
Total cost of closings | (718,667 | ) | (661,068 | ) | (1,338,111 | ) | (1,224,077 | ) | ||||||||
Home closing gross profit | 159,515 | 140,910 | 283,845 | 248,178 | ||||||||||||
Land closing gross (loss)/profit | (687 | ) | — | (1,897 | ) | 2,495 | ||||||||||
Total closing gross profit | 158,828 | 140,910 | 281,948 | 250,673 | ||||||||||||
Financial Services: | ||||||||||||||||
Revenue | 3,870 | 3,649 | 6,918 | 6,593 | ||||||||||||
Expense | (1,693 | ) | (1,551 | ) | (3,177 | ) | (2,930 | ) | ||||||||
Earnings from financial services unconsolidated entities and other, net | 3,474 | 3,459 | 6,130 | 6,184 | ||||||||||||
Financial services profit | 5,651 | 5,557 | 9,871 | 9,847 | ||||||||||||
Commissions and other sales costs | (60,823 | ) | (54,701 | ) | (113,575 | ) | (103,021 | ) | ||||||||
General and administrative expenses | (34,205 | ) | (29,591 | ) | (65,098 | ) | (59,213 | ) | ||||||||
(Loss)/earnings from other unconsolidated entities, net | (156 | ) | 570 | (202 | ) | 943 | ||||||||||
Interest expense | (44 | ) | (1,620 | ) | (180 | ) | (2,445 | ) | ||||||||
Other income, net | 1,934 | 2,080 | 7,305 | 3,190 | ||||||||||||
Earnings before income taxes | 71,185 | 63,205 | 120,069 | 99,974 | ||||||||||||
Provision for income taxes | (17,347 | ) | (21,625 | ) | (22,357 | ) | (34,822 | ) | ||||||||
Net earnings | $ | 53,838 | $ | 41,580 | $ | 97,712 | $ | 65,152 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | ||||||||||||||||
Earnings per share | $ | 1.32 | $ | 1.03 | $ | 2.41 | $ | 1.62 | ||||||||
Weighted average shares outstanding | 40,647 | 40,317 | 40,568 | 40,248 | ||||||||||||
Diluted | ||||||||||||||||
Earnings per share | $ | 1.31 | $ | 0.98 | $ | 2.37 | $ | 1.54 | ||||||||
Weighted average shares outstanding | 41,164 | 42,781 | 41,193 | 42,836 |
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, 2018 | December 31, 2017 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 169,426 | $ | 170,746 | ||||
Other receivables | 78,395 | 79,317 | ||||||
Real estate (1) | 2,870,047 | 2,731,380 | ||||||
Real estate not owned | 38,864 | 38,864 | ||||||
Deposits on real estate under option or contract | 48,880 | 59,945 | ||||||
Investments in unconsolidated entities | 16,639 | 17,068 | ||||||
Property and equipment, net | 52,122 | 33,631 | ||||||
Deferred tax asset | 36,294 | 35,162 | ||||||
Prepaids, other assets and goodwill | 84,227 | 85,145 | ||||||
Total assets | $ | 3,394,894 | $ | 3,251,258 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 154,819 | $ | 140,516 | ||||
Accrued liabilities | 173,770 | 181,076 | ||||||
Home sale deposits | 37,130 | 34,059 | ||||||
Liabilities related to real estate not owned | 34,978 | 34,978 | ||||||
Loans payable and other borrowings | 16,552 | 17,354 | ||||||
Senior notes, net | 1,294,705 | 1,266,450 | ||||||
Total liabilities | 1,711,954 | 1,674,433 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 406 | 403 | ||||||
Additional paid-in capital | 593,561 | 584,578 | ||||||
Retained earnings | 1,088,973 | 991,844 | ||||||
Total stockholders’ equity | 1,682,940 | 1,576,825 | ||||||
Total liabilities and stockholders’ equity | $ | 3,394,894 | $ | 3,251,258 | ||||
(1) Real estate – Allocated costs: | ||||||||
Homes under contract under construction | $ | 715,373 | $ | 566,474 | ||||
Unsold homes, completed and under construction | 562,435 | 516,577 | ||||||
Model homes | 138,441 | 142,026 | ||||||
Finished home sites and home sites under development | 1,453,798 | 1,506,303 | ||||||
Total real estate | $ | 2,870,047 | $ | 2,731,380 |
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Depreciation and amortization | $ | 6,742 | $ | 4,202 | $ | 12,608 | $ | 7,872 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 81,828 | $ | 70,885 | $ | 78,564 | $ | 68,196 | |||||||
Interest incurred | 21,374 | 19,280 | 42,243 | 37,175 | |||||||||||
Interest expensed | (44 | ) | (1,620 | ) | (180 | ) | (2,445 | ) | |||||||
Interest amortized to cost of home and land closings | (18,715 | ) | (16,218 | ) | (36,184 | ) | (30,599 | ) | |||||||
Capitalized interest, end of period | $ | 84,443 | $ | 72,327 | $ | 84,443 | $ | 72,327 | |||||||
June 30, 2018 | December 31, 2017 | ||||||||||||||
Notes payable and other borrowings | $ | 1,311,257 | $ | 1,283,804 | |||||||||||
Stockholders' equity | 1,682,940 | 1,576,825 | |||||||||||||
Total capital | 2,994,197 | 2,860,629 | |||||||||||||
Debt-to-capital | 43.8 | % | 44.9 | % | |||||||||||
Notes payable and other borrowings | $ | 1,311,257 | $ | 1,283,804 | |||||||||||
Less: cash and cash equivalents | $ | (169,426 | ) | $ | (170,746 | ) | |||||||||
Net debt | 1,141,831 | 1,113,058 | |||||||||||||
Stockholders’ equity | 1,682,940 | 1,576,825 | |||||||||||||
Total net capital | $ | 2,824,771 | $ | 2,689,883 | |||||||||||
Net debt-to-capital | 40.4 | % | 41.4 | % |
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 97,712 | $ | 65,152 | ||||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
Depreciation and amortization | 12,608 | 7,872 | ||||||
Stock-based compensation | 8,976 | 5,785 | ||||||
Equity in earnings from unconsolidated entities | (5,978 | ) | (7,127 | ) | ||||
Distribution of earnings from unconsolidated entities | 6,834 | 6,712 | ||||||
Other | 2,407 | 10 | ||||||
Changes in assets and liabilities: | ||||||||
Increase in real estate | (155,809 | ) | (211,384 | ) | ||||
Decrease in deposits on real estate under option or contract | 11,093 | 9,308 | ||||||
Decrease/(increase) in other receivables, prepaids and other assets | 1,634 | (9,428 | ) | |||||
Increase/(decrease) in accounts payable and accrued liabilities | 6,997 | (5,497 | ) | |||||
Increase in home sale deposits | 3,071 | 7,849 | ||||||
Net cash used in operating activities | (10,455 | ) | (130,748 | ) | ||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (417 | ) | (408 | ) | ||||
Distributions of capital from unconsolidated entities | — | 1,250 | ||||||
Purchases of property and equipment | (15,726 | ) | (8,322 | ) | ||||
Proceeds from sales of property and equipment | 92 | 86 | ||||||
Maturities/sales of investments and securities | 1,065 | 1,258 | ||||||
Payments to purchase investments and securities | (1,065 | ) | (1,258 | ) | ||||
Net cash used in investing activities | (16,051 | ) | (7,394 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of Credit Facility, net | — | (15,000 | ) | |||||
Repayment of loans payable and other borrowings | (2,499 | ) | (5,725 | ) | ||||
Repayment of senior notes and senior convertible notes | (175,000 | ) | (52,098 | ) | ||||
Proceeds from issuance of senior notes | 206,000 | 300,000 | ||||||
Payment of debt issuance costs | (3,315 | ) | (3,998 | ) | ||||
Net cash provided by financing activities | 25,186 | 223,179 | ||||||
Net (decrease)/increase in cash and cash equivalents | (1,320 | ) | 85,037 | |||||
Beginning cash and cash equivalents | 170,746 | 131,702 | ||||||
Ending cash and cash equivalents | $ | 169,426 | $ | 216,739 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Three Months Ended June 30, | ||||||||||||||
2018 | 2017 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 366 | $ | 118,272 | 419 | $ | 141,015 | ||||||||
California | 206 | 142,019 | 231 | 140,270 | ||||||||||
Colorado | 162 | 89,421 | 154 | 88,289 | ||||||||||
West Region | 734 | 349,712 | 804 | 369,574 | ||||||||||
Texas | 741 | 259,344 | 610 | 225,679 | ||||||||||
Central Region | 741 | 259,344 | 610 | 225,679 | ||||||||||
Florida | 252 | 110,467 | 187 | 82,448 | ||||||||||
Georgia | 104 | 34,835 | 73 | 25,366 | ||||||||||
North Carolina | 195 | 77,075 | 132 | 59,560 | ||||||||||
South Carolina | 76 | 26,885 | 70 | 23,866 | ||||||||||
Tennessee | 37 | 14,065 | 30 | 11,287 | ||||||||||
East Region | 664 | 263,327 | 492 | 202,527 | ||||||||||
Total | 2,139 | $ | 872,383 | 1,906 | $ | 797,780 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 416 | $ | 135,717 | 397 | $ | 129,870 | ||||||||
California | 190 | 131,699 | 274 | 162,597 | ||||||||||
Colorado | 166 | 89,818 | 133 | 76,978 | ||||||||||
West Region | 772 | 357,234 | 804 | 369,445 | ||||||||||
Texas | 766 | 277,556 | 714 | 254,642 | ||||||||||
Central Region | 766 | 277,556 | 714 | 254,642 | ||||||||||
Florida | 320 | 136,534 | 283 | 120,951 | ||||||||||
Georgia | 109 | 41,964 | 99 | 32,865 | ||||||||||
North Carolina | 143 | 54,704 | 143 | 61,375 | ||||||||||
South Carolina | 88 | 30,652 | 66 | 22,840 | ||||||||||
Tennessee | 52 | 19,352 | 44 | 16,600 | ||||||||||
East Region | 712 | 283,206 | 635 | 254,631 | ||||||||||
Total | 2,250 | $ | 917,996 | 2,153 | $ | 878,718 |
Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 641 | $ | 209,268 | 715 | $ | 241,565 | ||||||||
California | 437 | 301,410 | 441 | 272,364 | ||||||||||
Colorado | 256 | 143,807 | 282 | 155,649 | ||||||||||
West Region | 1,334 | 654,485 | 1,438 | 669,578 | ||||||||||
Texas | 1,283 | 451,089 | 1,105 | 400,388 | ||||||||||
Central Region | 1,283 | 451,089 | 1,105 | 400,388 | ||||||||||
Florida | 512 | 223,254 | 333 | 148,022 | ||||||||||
Georgia | 177 | 59,808 | 128 | 45,841 | ||||||||||
North Carolina | 323 | 127,748 | 263 | 116,467 | ||||||||||
South Carolina | 142 | 49,006 | 143 | 49,921 | ||||||||||
Tennessee | 93 | 35,525 | 77 | 28,180 | ||||||||||
East Region | 1,247 | 495,341 | 944 | 388,431 | ||||||||||
Total | 3,864 | $ | 1,600,915 | 3,487 | $ | 1,458,397 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 875 | $ | 288,878 | 800 | $ | 263,702 | ||||||||
California | 409 | 292,097 | 602 | 356,355 | ||||||||||
Colorado | 341 | 186,913 | 276 | 159,073 | ||||||||||
West Region | 1,625 | 767,888 | 1,678 | 779,130 | ||||||||||
Texas | 1,575 | 557,059 | 1,407 | 506,415 | ||||||||||
Central Region | 1,575 | 557,059 | 1,407 | 506,415 | ||||||||||
Florida | 583 | 249,204 | 522 | 222,511 | ||||||||||
Georgia | 257 | 92,834 | 168 | 55,267 | ||||||||||
North Carolina | 300 | 116,189 | 293 | 127,707 | ||||||||||
South Carolina | 168 | 59,326 | 138 | 48,378 | ||||||||||
Tennessee | 100 | 38,292 | 82 | 32,013 | ||||||||||
East Region | 1,408 | 555,845 | 1,203 | 485,876 | ||||||||||
Total | 4,608 | $ | 1,880,792 | 4,288 | $ | 1,771,421 | ||||||||
Order Backlog: | ||||||||||||||
Arizona | 560 | $ | 199,508 | 529 | $ | 183,480 | ||||||||
California | 290 | 213,761 | 392 | 237,629 | ||||||||||
Colorado | 284 | 158,019 | 267 | 157,508 | ||||||||||
West Region | 1,134 | 571,288 | 1,188 | 578,617 | ||||||||||
Texas | 1,312 | 489,106 | 1,233 | 460,761 | ||||||||||
Central Region | 1,312 | 489,106 | 1,233 | 460,761 | ||||||||||
Florida | 517 | 222,653 | 442 | 190,943 | ||||||||||
Georgia | 231 | 83,505 | 131 | 42,789 | ||||||||||
North Carolina | 220 | 85,273 | 223 | 98,492 | ||||||||||
South Carolina | 125 | 45,805 | 111 | 39,093 | ||||||||||
Tennessee | 80 | 31,126 | 100 | 38,087 | ||||||||||
East Region | 1,173 | 468,362 | 1,007 | 409,404 | ||||||||||
Total | 3,619 | $ | 1,528,756 | 3,428 | $ | 1,448,782 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
Three Months Ended June 30, | ||||||||||||
2018 | 2017 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 40 | 38.5 | 39 | 40.5 | ||||||||
California | 15 | 15.0 | 26 | 27.5 | ||||||||
Colorado | 19 | 18.0 | 10 | 10.0 | ||||||||
West Region | 74 | 71.5 | 75 | 78.0 | ||||||||
Texas | 90 | 93.5 | 92 | 88.5 | ||||||||
Central Region | 90 | 93.5 | 92 | 88.5 | ||||||||
Florida | 30 | 29.0 | 30 | 31.0 | ||||||||
Georgia | 20 | 20.5 | 19 | 18.0 | ||||||||
North Carolina | 20 | 20.0 | 20 | 19.0 | ||||||||
South Carolina | 11 | 11.5 | 14 | 14.5 | ||||||||
Tennessee | 8 | 7.0 | 7 | 7.5 | ||||||||
East Region | 89 | 88.0 | 90 | 90.0 | ||||||||
Total | 253 | 253.0 | 257 | 256.5 |
Six Months Ended June 30, | ||||||||||||
2018 | 2017 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 40 | 39.0 | 39 | 40.5 | ||||||||
California | 15 | 17.5 | 26 | 27.0 | ||||||||
Colorado | 19 | 15.0 | 10 | 10.0 | ||||||||
West Region | 74 | 71.5 | 75 | 77.5 | ||||||||
Texas | 90 | 91.0 | 92 | 86.0 | ||||||||
Central Region | 90 | 91.0 | 92 | 86.0 | ||||||||
Florida | 30 | 29.0 | 30 | 28.5 | ||||||||
Georgia | 20 | 19.5 | 19 | 18.0 | ||||||||
North Carolina | 20 | 18.5 | 20 | 18.5 | ||||||||
South Carolina | 11 | 12.0 | 14 | 14.5 | ||||||||
Tennessee | 8 | 7.0 | 7 | 7.0 | ||||||||
East Region | 89 | 86.0 | 90 | 86.5 | ||||||||
Total | 253 | 248.5 | 257 | 250.0 |
About Meritage Homes Corporation
Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2017. Meritage builds and sells single-family homes for entry-level, move-up, and active adult buyers in markets including California, Texas, Arizona, Colorado, Florida, North Carolina, South Carolina, Tennessee and Georgia.
The Company has designed and built over 110,000 homes in its 32-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 every year since 2013 for innovation and industry leadership in energy efficient homebuilding.
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 management's projected home closings, home closing revenue, home closing gross margin and pre-tax earnings for the full year 2018, as well as management's intentions to repurchase shares.
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, 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 and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; changes in interest rates and the availability and pricing of residential mortgages; changes in tax laws that adversely impact us or our homebuyers; inflation in the cost of materials used to develop communities and construct homes; the success of strategic initiatives; the ability of our potential buyers to sell their existing homes; cancellation rates; the adverse effect of slow absorption rates; slowing in the growth of entry-level home buyers; competition; impairments of our real estate inventory; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest or option deposits; our potential exposure to and impacts from natural disasters or severe weather conditions; home warranty and construction defect claims; failures in health and safety performance; our success in prevailing on contested tax positions; our ability to obtain performance and surety bonds in connection with our development work; the loss of key personnel; failure to comply with laws and regulations; our limited geographic diversification; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our compliance with government regulations, the effect of legislative and other governmental actions, orders, policies or initiatives that impact housing, labor availability, construction, mortgage availability, our access to capital, the cost of capital or the economy in general, or other initiatives that seek to restrain growth of new housing construction or similar measures; legislation relating to energy and climate change; the replication of our energy-efficient technologies by our competitors; our exposure to information technology failures and security breaches; negative publicity that affects our reputation; 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, 2017 and Form 10-Q for the first quarter ended March 31, 2018 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.
Contacts: | Brent Anderson, VP Investor Relations | |
(972) 580-6360 (office) | ||
[email protected] |
We use cookies to tailor your experience, measure site performance and present relevant offers and advertisements. By clicking ‘Accept’ or any content on this site, you agree that cookies can be placed on your browser. You can view our privacy policy to learn more.
If you would like to get more data, alerts and access to Real Vision videos, join us as an Insider Tracking Advantage Ultra member