10/27/2021 | Press release | Distributed by Public on 10/27/2021 14:36
SCOTTSDALE, Ariz., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2021.
Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) |
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | % Chg | 2021 | 2020 | % Chg | |||||||||||||||||||
Homes closed (units) | 3,112 | 3,004 | 4 | % | 9,275 | 8,090 | 15 | % | ||||||||||||||||
Home closing revenue | $ | 1,251,435 | $ | 1,133,221 | 10 | % | $ | 3,596,060 | $ | 3,055,229 | 18 | % | ||||||||||||
Average sales price - closings | $ | 402 | $ | 377 | 7 | % | $ | 388 | $ | 378 | 3 | % | ||||||||||||
Home orders (units) | 3,441 | 3,851 | (11 | ) | % | 10,441 | 10,550 | (1 | ) | % | ||||||||||||||
Home order value | $ | 1,488,951 | $ | 1,488,480 | - | % | $ | 4,337,753 | $ | 3,958,870 | 10 | % | ||||||||||||
Average sales price - orders | $ | 433 | $ | 387 | 12 | % | $ | 415 | $ | 375 | 11 | % | ||||||||||||
Ending backlog (units) | 5,838 | 5,242 | 11 | % | ||||||||||||||||||||
Ending backlog value | $ | 2,555,405 | $ | 2,004,981 | 27 | % | ||||||||||||||||||
Average sales price - backlog | $ | 438 | $ | 382 | 15 | % | ||||||||||||||||||
Earnings before income taxes | $ | 261,709 | $ | 135,506 | 93 | % | $ | 643,337 | $ | 338,201 | 90 | % | ||||||||||||
Net earnings | $ | 200,752 | $ | 109,118 | 84 | % | $ | 499,984 | $ | 270,948 | 85 | % | ||||||||||||
Diluted EPS | $ | 5.25 | $ | 2.84 | 85 | % | $ | 13.06 | $ | 7.04 | 86 | % |
MANAGEMENT COMMENTS
"During the third quarter of 2021, we navigated ongoing industry-wide supply chain disruptions and produced the highest third quarter of home closings in our Company's history. We delivered 3,112 homes and produced a 10% year-over-year increase in home closing revenue to $1.3 billion. This led to two new Company quarterly records: highest gross margin of 29.7% and highest diluted EPS of $5.25," said Steven J. Hilton, executive chairman of Meritage Homes. "These strong results reflect the elevated homebuying demand in the market today and our successful operating model."
"The housing market remained solid," Phillippe Lord, chief executive officer of Meritage Homes, said. "The continuing demand stemmed from market conditions related to historically-low interest rates and limited housing supply. It also resulted from homebuying activity from millennials and baby boomers, the largest groups fueling demand over the last few quarters. We believe these underlying demographic factors will not fundamentally change in the near future, but may be bumpy if interest rates move materially in a short amount of time."
Mr. Lord continued, "In the third quarter of 2021, we continued metering our orders pace to align our starts with production, but our average absorption pace still remained elevated at 5.0 per month. This compared to our all-time highest third quarter average absorption pace of 5.8 per month in the third quarter of 2020. As a result of our metering efforts, quarterly sales orders of 3,441 homes were 11% lower than prior year despite 5% more average communities year-over-year."
"Our ending community count increased by 16% year-over-year from 204 at September 30, 2020 to 236 at September 30, 2021. Sequentially, we added 10 net communities from 226 at June 30, 2021," Mr. Lord remarked. "Working through delays in permitting, zoning and entitlement as well as land supply chain constraints, we opened 40 new communities this quarter. With our excellent progress over the last two quarters, we remain confident in our ability to achieve our goal of 300 active communities by mid-2022. The anticipated community growth of over 50% from year end 2020 will position Meritage to expand our market share, leverage our operating costs and drive profitability."
Mr. Lord added, "We continue to find new land positions while remaining disciplined in our underwriting standards and put about 9,800 net new lots under control during the three months ended September 30, 2021, which compared to approximately 9,000 net new lots under control in the same period in 2020. Our total lot supply is now nearly 70,000 lots, a 46% year-over-year increase compared to nearly 48,000 at September 30, 2020. We invested $526 million in land acquisition and development this quarter. Including this incremental spend, our net debt to capital ratio of 17.5% at September 30, 2021 reflects ample liquidity and a strong balance sheet, which in turn provide us flexibility for further growth in the future."
Mr. Lord concluded, "As we continue to manage through the current supply issues, we are projecting 12,600-12,900 home closings for the full year 2021, which we anticipate will generate $5.05-5.15 billion in home closing revenue. Home closing gross margin is projected to be 27.50-27.75%. With an increase to the projected effective tax rate of 23.0%, we expect diluted EPS to be in the range of $18.75-19.40 for 2021, a year-over-year increase of over 70%."
THIRD QUARTER RESULTS
YEAR TO DATE RESULTS
BALANCE SHEET
CONFERENCE CALL
Management will host a conference call to discuss its third quarter results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, October 28, 2021. 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 12:00 p.m. Pacific Time (3:00 p.m. Eastern Time) on October 28, 2021 and extending through November 11, 2021, at https://investors.meritagehomes.com.
Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (Unaudited) |
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Three Months Ended September 30, | ||||||||||||||||
2021 | 2020 | Change $ | Change % | |||||||||||||
Homebuilding: | ||||||||||||||||
Home closing revenue | $ | 1,251,435 | $ | 1,133,221 | $ | 118,214 | 10 | % | ||||||||
Land closing revenue | 8,470 | 4,870 | 3,600 | 74 | % | |||||||||||
Total closing revenue | 1,259,905 | 1,138,091 | 121,814 | 11 | % | |||||||||||
Cost of home closings | (879,759 | ) | (889,654 | ) | (9,895 | ) | (1 | ) | % | |||||||
Cost of land closings | (7,706 | ) | (4,360 | ) | 3,346 | 77 | % | |||||||||
Total cost of closings | (887,465 | ) | (894,014 | ) | (6,549 | ) | (1 | ) | % | |||||||
Home closing gross profit | 371,676 | 243,567 | 128,109 | 53 | % | |||||||||||
Land closing gross profit | 764 | 510 | 254 | 50 | % | |||||||||||
Total closing gross profit | 372,440 | 244,077 | 128,363 | 53 | % | |||||||||||
Financial Services: | ||||||||||||||||
Revenue | 5,208 | 4,939 | 269 | 5 | % | |||||||||||
Expense | (2,308 | ) | (2,026 | ) | 282 | 14 | % | |||||||||
Earnings from financial services unconsolidated | ||||||||||||||||
entities and other, net | 1,324 | 1,402 | (78 | ) | (6 | ) | % | |||||||||
Financial services profit | 4,224 | 4,315 | (91 | ) | (2 | ) | % | |||||||||
Commissions and other sales costs | (68,952 | ) | (73,282 | ) | (4,330 | ) | (6 | ) | % | |||||||
General and administrative expenses | (47,192 | ) | (40,737 | ) | 6,455 | 16 | % | |||||||||
Interest expense | (79 | ) | (55 | ) | 24 | 44 | % | |||||||||
Other income, net | 1,268 | 1,188 | 80 | 7 | % | |||||||||||
Earnings before income taxes | 261,709 | 135,506 | 126,203 | 93 | % | |||||||||||
Provision for income taxes | (60,957 | ) | (26,388 | ) | 34,569 | 131 | % | |||||||||
Net earnings | $ | 200,752 | $ | 109,118 | $ | 91,634 | 84 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic |
Change $ or shares |
Change % | ||||||||||||||
Earnings per common share | $ | 5.33 | $ | 2.90 | $ | 2.43 | 84 | % | ||||||||
Weighted average shares outstanding | 37,647 | 37,607 | 40 | - | % | |||||||||||
Diluted | ||||||||||||||||
Earnings per common share | $ | 5.25 | $ | 2.84 | $ | 2.41 | 85 | % | ||||||||
Weighted average shares outstanding | 38,229 | 38,405 | (176 | ) | - | % |
Nine Months Ended September 30, | ||||||||||||||||
2021 | 2020 | Change $ | Change % | |||||||||||||
Homebuilding: | ||||||||||||||||
Home closing revenue | $ | 3,596,060 | $ | 3,055,229 | $ | 540,831 | 18 | % | ||||||||
Land closing revenue | 25,225 | 16,954 | 8,271 | 49 | % | |||||||||||
Total closing revenue | 3,621,285 | 3,072,183 | 549,102 | 18 | % | |||||||||||
Cost of home closings | (2,612,428 | ) | (2,412,606 | ) | 199,822 | 8 | % | |||||||||
Cost of land closings | (24,246 | ) | (17,509 | ) | 6,737 | 38 | % | |||||||||
Total cost of closings | (2,636,674 | ) | (2,430,115 | ) | 206,559 | 8 | % | |||||||||
Home closing gross profit | 983,632 | 642,623 | 341,009 | 53 | % | |||||||||||
Land closing gross profit/(loss) | 979 | (555 | ) | 1,534 | 276 | % | ||||||||||
Total closing gross profit | 984,611 | 642,068 | 342,543 | 53 | % | |||||||||||
Financial Services: | ||||||||||||||||
Revenue | 15,624 | 13,329 | 2,295 | 17 | % | |||||||||||
Expense | (6,846 | ) | (5,519 | ) | 1,327 | 24 | % | |||||||||
Earnings from financial services unconsolidated | ||||||||||||||||
entities and other, net | 3,821 | 3,132 | 689 | 22 | % | |||||||||||
Financial services profit | 12,599 | 10,942 | 1,657 | 15 | % | |||||||||||
Commissions and other sales costs | (210,585 | ) | (204,863 | ) | 5,722 | 3 | % | |||||||||
General and administrative expenses | (128,297 | ) | (111,083 | ) | 17,214 | 15 | % | |||||||||
Interest expense | (246 | ) | (2,176 | ) | (1,930 | ) | (89 | ) | % | |||||||
Other income, net | 3,443 | 3,313 | 130 | 4 | % | |||||||||||
Loss on early extinguishment of debt | (18,188 | ) | - | 18,188 | n/a | |||||||||||
Earnings before income taxes | 643,337 | 338,201 | 305,136 | 90 | % | |||||||||||
Provision for income taxes | (143,353 | ) | (67,253 | ) | 76,100 | 113 | % | |||||||||
Net earnings | $ | 499,984 | $ | 270,948 | $ | 229,036 | 85 | % | ||||||||
Earnings per common share: | ||||||||||||||||
Basic |
Change $ or shares |
Change % | ||||||||||||||
Earnings per common share | $ | 13.26 | $ | 7.17 | $ | 6.09 | 85 | % | ||||||||
Weighted average shares outstanding | 37,703 | 37,763 | (60 | ) | - | % | ||||||||||
Diluted | ||||||||||||||||
Earnings per common share | $ | 13.06 | $ | 7.04 | $ | 6.02 | 86 | % | ||||||||
Weighted average shares outstanding | 38,285 | 38,491 | (206 | ) | (1 | ) | % | |||||||||
Meritage Homes Corporation and Subsidiaries Consolidated Balance Sheets (In thousands) (Unaudited) |
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September 30, 2021 | December 31, 2020 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 562,291 | $ | 745,621 | ||||
Other receivables | 148,743 | 98,573 | ||||||
Real estate (1) | 3,593,007 | 2,778,039 | ||||||
Deposits on real estate under option or contract | 77,987 | 59,534 | ||||||
Investments in unconsolidated entities | 3,905 | 4,350 | ||||||
Property and equipment, net | 36,595 | 38,933 | ||||||
Deferred tax asset | 38,850 | 36,040 | ||||||
Prepaids, other assets and goodwill | 104,071 | 103,308 | ||||||
Total assets | $ | 4,565,449 | $ | 3,864,398 | ||||
Liabilities: | ||||||||
Accounts payable | $ | 214,575 | $ | 175,250 | ||||
Accrued liabilities | 324,407 | 296,121 | ||||||
Home sale deposits | 40,002 | 25,074 | ||||||
Loans payable and other borrowings | 18,985 | 23,094 | ||||||
Senior notes, net | 1,142,210 | 996,991 | ||||||
Total liabilities | 1,740,179 | 1,516,530 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock | 376 | 375 | ||||||
Additional paid-in capital | 433,179 | 455,762 | ||||||
Retained earnings | 2,391,715 | 1,891,731 | ||||||
Total stockholders' equity | 2,825,270 | 2,347,868 | ||||||
Total liabilities and stockholders' equity | $ | 4,565,449 | $ | 3,864,398 | ||||
(1)Real estate - Allocated costs: | ||||||||
Homes under contract under construction | $ | 1,142,724 | $ | 873,365 | ||||
Unsold homes, completed and under construction | 397,422 | 357,861 | ||||||
Model homes | 75,239 | 82,502 | ||||||
Finished home sites and home sites under development | 1,977,622 | 1,464,311 | ||||||
Total real estate | $ | 3,593,007 | $ | 2,778,039 |
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands - unaudited): | |||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2021 | 2020 | 2021 | 2020 | ||||||||||||||
Depreciation and amortization | $ | 6,478 | $ | 7,945 | $ | 19,892 | $ | 22,496 | |||||||||
Summary of Capitalized Interest: | |||||||||||||||||
Capitalized interest, beginning of period | $ | 56,710 | $ | 72,882 | $ | 58,940 | $ | 82,014 | |||||||||
Interest incurred | 15,212 | 16,103 | 47,625 | 50,188 | |||||||||||||
Interest expensed | (79 | ) | (55 | ) | (246 | ) | (2,176 | ) | |||||||||
Interest amortized to cost of home and land closings | (14,550 | ) | (21,380 | ) | (49,026 | ) | (62,476 | ) | |||||||||
Capitalized interest, end of period | $ | 57,293 | $ | 67,550 | $ | 57,293 | $ | 67,550 | |||||||||
September 30, 2021 |
December 31, 2020 |
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Senior notes, net, loans payable and other borrowings | $ | 1,161,195 | $ | 1,020,085 | |||||||||||||
Stockholders' equity | 2,825,270 | 2,347,868 | |||||||||||||||
Total capital | $ | 3,986,465 | $ | 3,367,953 | |||||||||||||
Debt-to-capital | 29.1 | % | 30.3 | % | |||||||||||||
Senior notes, net, loans payable and other borrowings | $ | 1,161,195 | $ | 1,020,085 | |||||||||||||
Less: cash and cash equivalents | (562,291 | ) | (745,621 | ) | |||||||||||||
Net debt | $ | 598,904 | $ | 274,464 | |||||||||||||
Stockholders' equity | 2,825,270 | 2,347,868 | |||||||||||||||
Total net capital | $ | 3,424,174 | $ | 2,622,332 | |||||||||||||
Net debt-to-capital | 17.5 | % | 10.5 | % | |||||||||||||
Meritage Homes Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
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Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 499,984 | $ | 270,948 | ||||
Adjustments to reconcile net earnings to net cash (used in)/provided by operating activities: | ||||||||
Depreciation and amortization | 19,892 | 22,496 | ||||||
Stock-based compensation | 14,435 | 15,724 | ||||||
Loss on early extinguishment of debt | 18,188 | - | ||||||
Equity in earnings from unconsolidated entities | (2,878 | ) | (2,821 | ) | ||||
Distribution of earnings from unconsolidated entities | 3,324 | 2,449 | ||||||
Other | (3,085 | ) | 1,881 | |||||
Changes in assets and liabilities: | ||||||||
(Increase)/decrease in real estate | (810,731 | ) | 9,080 | |||||
Increase in deposits on real estate under option or contract | (18,453 | ) | (12,910 | ) | ||||
(Increase)/decrease in other receivables, prepaids and other assets | (51,611 | ) | 4,933 | |||||
Increase in accounts payable and accrued liabilities | 67,301 | 60,039 | ||||||
Increase in home sale deposits | 14,928 | 1,263 | ||||||
Net cash (used in)/provided by operating activities | (248,706 | ) | 373,082 | |||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (1 | ) | (4 | ) | ||||
Distributions of capital from unconsolidated entities | - | 1,000 | ||||||
Purchases of property and equipment | (17,910 | ) | (14,771 | ) | ||||
Proceeds from sales of property and equipment | 404 | 528 | ||||||
Maturities/sales of investments and securities | 2,795 | 632 | ||||||
Payments to purchase investments and securities | (2,795 | ) | (632 | ) | ||||
Net cash used in investing activities | (17,507 | ) | (13,247 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of loans payable and other borrowings | (6,308 | ) | (8,509 | ) | ||||
Repayment of senior notes | (317,690 | ) | - | |||||
Proceeds from issuance of senior notes | 450,000 | - | ||||||
Payment of debt issuance costs | (6,102 | ) | - | |||||
Repurchase of shares | (37,017 | ) | (60,813 | ) | ||||
Net cash provided by/(used in) financing activities | 82,883 | (69,322 | ) | |||||
Net (decrease)/increase in cash and cash equivalents | (183,330 | ) | 290,513 | |||||
Beginning cash and cash equivalents | 745,621 | 319,466 | ||||||
Ending cash and cash equivalents | $ | 562,291 | $ | 609,979 | ||||
Meritage Homes Corporation and Subsidiaries Operating Data (Dollars in thousands) (Unaudited) |
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Three Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 532 | $ | 193,847 | 429 | $ | 143,630 | ||||||||
California | 295 | 177,623 | 332 | 202,460 | ||||||||||
Colorado | 144 | 80,149 | 183 | 88,199 | ||||||||||
West Region | 971 | 451,619 | 944 | 434,289 | ||||||||||
Texas | 1,012 | 383,206 | 1,059 | 349,907 | ||||||||||
Central Region | 1,012 | 383,206 | 1,059 | 349,907 | ||||||||||
Florida | 386 | 139,642 | 339 | 124,836 | ||||||||||
Georgia | 139 | 52,004 | 178 | 62,921 | ||||||||||
North Carolina | 371 | 145,268 | 295 | 98,322 | ||||||||||
South Carolina | 92 | 31,686 | 78 | 25,502 | ||||||||||
Tennessee | 141 | 48,010 | 111 | 37,444 | ||||||||||
East Region | 1,129 | 416,610 | 1,001 | 349,025 | ||||||||||
Total | 3,112 | $ | 1,251,435 | 3,004 | $ | 1,133,221 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 550 | $ | 233,828 | 709 | $ | 240,151 | ||||||||
California | 319 | 213,859 | 510 | 319,680 | ||||||||||
Colorado | 207 | 123,242 | 188 | 88,972 | ||||||||||
West Region | 1,076 | 570,929 | 1,407 | 648,803 | ||||||||||
Texas | 1,070 | 427,689 | 1,183 | 395,453 | ||||||||||
Central Region | 1,070 | 427,689 | 1,183 | 395,453 | ||||||||||
Florida | 534 | 192,479 | 491 | 179,607 | ||||||||||
Georgia | 176 | 74,766 | 172 | 62,541 | ||||||||||
North Carolina | 347 | 140,135 | 386 | 132,988 | ||||||||||
South Carolina | 100 | 31,535 | 90 | 28,140 | ||||||||||
Tennessee | 138 | 51,418 | 122 | 40,948 | ||||||||||
East Region | 1,295 | 490,333 | 1,261 | 444,224 | ||||||||||
Total | 3,441 | $ | 1,488,951 | 3,851 | $ | 1,488,480 |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Homes | Value | Homes | Value | |||||||||||
Homes Closed: | ||||||||||||||
Arizona | 1,423 | $ | 497,105 | 1,315 | $ | 437,233 | ||||||||
California | 890 | 547,754 | 787 | 487,605 | ||||||||||
Colorado | 464 | 239,399 | 553 | 268,970 | ||||||||||
West Region | 2,777 | 1,284,258 | 2,655 | 1,193,808 | ||||||||||
Texas | 3,129 | 1,105,429 | 2,747 | 901,791 | ||||||||||
Central Region | 3,129 | 1,105,429 | 2,747 | 901,791 | ||||||||||
Florida | 1,246 | 440,847 | 942 | 357,233 | ||||||||||
Georgia | 456 | 169,620 | 459 | 163,617 | ||||||||||
North Carolina | 1,000 | 372,119 | 805 | 276,477 | ||||||||||
South Carolina | 258 | 87,741 | 229 | 73,113 | ||||||||||
Tennessee | 409 | 136,046 | 253 | 89,190 | ||||||||||
East Region | 3,369 | 1,206,373 | 2,688 | 959,630 | ||||||||||
Total | 9,275 | $ | 3,596,060 | 8,090 | $ | 3,055,229 | ||||||||
Homes Ordered: | ||||||||||||||
Arizona | 1,776 | $ | 713,067 | 2,016 | $ | 654,579 | ||||||||
California | 949 | 604,478 | 1,250 | 769,251 | ||||||||||
Colorado | 557 | 317,155 | 540 | 258,268 | ||||||||||
West Region | 3,282 | 1,634,700 | 3,806 | 1,682,098 | ||||||||||
Texas | 3,286 | 1,248,032 | 3,457 | 1,130,943 | ||||||||||
Central Region | 3,286 | 1,248,032 | 3,457 | 1,130,943 | ||||||||||
Florida | 1,481 | 547,706 | 1,198 | 435,411 | ||||||||||
Georgia | 533 | 213,632 | 518 | 182,958 | ||||||||||
North Carolina | 1,156 | 450,854 | 999 | 340,626 | ||||||||||
South Carolina | 264 | 90,532 | 272 | 85,316 | ||||||||||
Tennessee | 439 | 152,297 | 300 | 101,518 | ||||||||||
East Region | 3,873 | 1,455,021 | 3,287 | 1,145,829 | ||||||||||
Total | 10,441 | $ | 4,337,753 | 10,550 | $ | 3,958,870 | ||||||||
Order Backlog: | ||||||||||||||
Arizona | 1,346 | $ | 560,090 | 1,212 | $ | 404,044 | ||||||||
California | 503 | 331,454 | 608 | 373,949 | ||||||||||
Colorado | 301 | 182,536 | 183 | 87,047 | ||||||||||
West Region | 2,150 | 1,074,080 | 2,003 | 865,040 | ||||||||||
Texas | 1,787 | 715,226 | 1,758 | 602,709 | ||||||||||
Central Region | 1,787 | 715,226 | 1,758 | 602,709 | ||||||||||
Florida | 785 | 321,831 | 627 | 242,419 | ||||||||||
Georgia | 233 | 101,996 | 192 | 69,204 | ||||||||||
North Carolina | 610 | 242,192 | 413 | 143,741 | ||||||||||
South Carolina | 126 | 44,028 | 114 | 36,723 | ||||||||||
Tennessee | 147 | 56,052 | 135 | 45,145 | ||||||||||
East Region | 1,901 | 766,099 | 1,481 | 537,232 | ||||||||||
Total | 5,838 | $ | 2,555,405 | 5,242 | $ | 2,004,981 | ||||||||
Meritage Homes Corporation and Subsidiaries Operating Data (Unaudited) |
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Three Months Ended September 30, | ||||||||||||
2021 | 2020 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 38 | 38.0 | 35 | 36.5 | ||||||||
California | 18 | 19.0 | 20 | 24.0 | ||||||||
Colorado | 16 | 16.5 | 11 | 12.0 | ||||||||
West Region | 72 | 73.5 | 66 | 72.5 | ||||||||
Texas | 68 | 66.0 | 58 | 63.0 | ||||||||
Central Region | 68 | 66.0 | 58 | 63.0 | ||||||||
Florida | 38 | 36.0 | 34 | 35.0 | ||||||||
Georgia | 12 | 11.0 | 11 | 14.0 | ||||||||
North Carolina | 26 | 26.0 | 20 | 20.5 | ||||||||
South Carolina | 11 | 9.0 | 6 | 5.5 | ||||||||
Tennessee | 9 | 9.5 | 9 | 10.0 | ||||||||
East Region | 96 | 91.5 | 80 | 85.0 | ||||||||
Total | 236 | 231.0 | 204 | 220.5 | ||||||||
Nine Months Ended September 30, | ||||||||||||
2021 | 2020 | |||||||||||
Ending | Average | Ending | Average | |||||||||
Active Communities: | ||||||||||||
Arizona | 38 | 35.5 | 35 | 34.3 | ||||||||
California | 18 | 18.3 | 20 | 25.3 | ||||||||
Colorado | 16 | 14.0 | 11 | 13.8 | ||||||||
West Region | 72 | 67.8 | 66 | 73.4 | ||||||||
Texas | 68 | 63.6 | 58 | 70.3 | ||||||||
Central Region | 68 | 63.6 | 58 | 70.3 | ||||||||
Florida | 38 | 33.3 | 34 | 34.4 | ||||||||
Georgia | 12 | 10.3 | 11 | 15.3 | ||||||||
North Carolina | 26 | 24.3 | 20 | 21.6 | ||||||||
South Carolina | 11 | 7.5 | 6 | 6.8 | ||||||||
Tennessee | 9 | 8.5 | 9 | 10.3 | ||||||||
East Region | 96 | 83.9 | 80 | 88.4 | ||||||||
Total | 236 | 215.3 | 204 | 232.1 |
About Meritage Homes Corporation
Meritage Homes is the sixth-largest public homebuilder in the United States, based on homes closed in 2020. The Company offers a variety of homes that are designed with a focus on entry-level and first move-up buyers in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.
Meritage Homes has delivered over 145,000 homes in its 36-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is the industry leader in energy-efficient homebuilding and an eight-time recipient of the U.S. Environmental Protection Agency's ENERGY STAR® Partner of the Year for Sustained Excellence Award 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 expectations about the housing market in general; projected 2021 home closings, home closing revenue, home closing gross margins, effective tax rate and diluted earnings per share; future community counts; trends in construction costs; and expectations about our future results.
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: changes in interest rates and the availability and pricing of residential mortgages; inflation in the cost of materials used to develop communities and construct homes; supply chain constraints; our ability to obtain performance and surety bonds in connection with our development work; 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 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 to comply with laws and regulations; our compliance with government regulations; 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, 2020 and our Form 10-Q for the quarter ended June 30, 2021 under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
Contacts: |
Emily Tadano, VP Investor Relations (480) 515-8979 (office) [email protected] |
Released October 27, 2021