SCOTTSDALE, Ariz., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2022.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | % Chg | 2022 | 2021 | % Chg | |||||||||||||
Homes closed (units) | 3,487 | 3,112 | 12 | % | 9,566 | 9,275 | 3 | % | ||||||||||
Home closing revenue | $ | 1,569,032 | $ | 1,251,435 | 25 | % | $ | 4,223,435 | $ | 3,596,060 | 17 | % | ||||||
Average sales price - closings | $ | 450 | $ | 402 | 12 | % | $ | 442 | $ | 388 | 14 | % | ||||||
Home orders (units) | 2,310 | 3,441 | (33 | )% | 9,951 | 10,441 | (5 | )% | ||||||||||
Home order value | $ | 974,314 | $ | 1,488,951 | (35 | )% | $ | 4,551,894 | $ | 4,337,753 | 5 | % | ||||||
Average sales price - orders | $ | 422 | $ | 433 | (3 | )% | $ | 457 | $ | 415 | 10 | % | ||||||
Ending backlog (units) | 6,064 | 5,838 | 4 | % | ||||||||||||||
Ending backlog value | $ | 2,826,759 | $ | 2,555,405 | 11 | % | ||||||||||||
Average sales price - backlog | $ | 466 | $ | 438 | 6 | % | ||||||||||||
Earnings before income taxes | $ | 329,491 | $ | 261,709 | 26 | % | $ | 947,069 | $ | 643,337 | 47 | % | ||||||
Net earnings | $ | 262,489 | $ | 200,752 | 31 | % | $ | 729,827 | $ | 499,984 | 46 | % | ||||||
Diluted EPS | $ | 7.10 | $ | 5.25 | 35 | % | $ | 19.65 | $ | 13.06 | 50 | % |
MANAGEMENT COMMENTS
“Despite a rapidly evolving housing market challenged by interest rate hikes, supply chain issues, Hurricane Ian and market uncertainty, in the third quarter of 2022, Meritage achieved its highest quarterly home closing revenue and record quarterly diluted earnings per share,” said Steven J. Hilton, executive chairman of Meritage Homes.
“Our closings of 3,487 homes this quarter were 12% greater than prior year,” added Phillippe Lord, chief executive officer of Meritage Homes. “Our third quarter 2022 home closing revenue of $1.6 billion combined with our home closing gross margin of 28.7%, our lowest SG&A leverage of 8.1% and an energy tax credit catch-up of $13.1 million, led to a 35% year-over-year increase in our diluted EPS from $5.25 to $7.10 this quarter.”
“However, sales orders fell sharply during the quarter. The third quarter 2022 sales orders of 2,310 homes were 33% lower than prior year primarily due to elevated cancellations. The cancellation rate was 30% this quarter. Gross sales orders declined 14% year-over-year, confirming that underlying home demand is stronger than the net numbers convey. Our third quarter 2022 average absorption pace was 2.7 per month, which was down from 5.0 per month in the third quarter of 2021. We expect sales orders will remain weaker until mortgage interest rates stabilize, we complete more move-in ready inventory and close out of our mature backlog. In each market, we are working to find the right combination of price adjustments and incentives to get back to our target absorption pace of 3-4 net sales per month,” Mr. Lord continued.
“We believe the continuation of the rapidly increasing mortgage interest rates, expectations of further significant increases to come, inflation and uncertainty in the economy are temporarily outweighing the positive impact of favorable demographics and the low supply of new and resale housing inventory on demand,” said Mr. Lord. "The market deterioration we experienced at the end of the second quarter deepened throughout the third quarter. Our various discounting and incentive initiatives are helping to attract and retain customers, but we are seeing some homebuyers hold off on their purchase decisions due to uncertain market conditions."
“Building materials and labor shortages are still delaying a return to normal cycle times, but we are confident that our pre-started inventory strategy executed by our exceptional team will ensure that we close timely on our current backlog while offering move-in ready homes for our future homebuyers," remarked Mr. Lord. "We remain committed to growing Meritage's market share and maximizing shareholder return in this evolving market.”
“Although Meritage's community count grew 17% year-over-year, the 275 active communities at September 30, 2022 were 9% lower sequentially compared to June 30, 2022. In response to weakening demand, we added only approximately 1,800 new lots under control, while we reassessed our land positions and successfully reduced our lot supply since the beginning of this year. We terminated options on our lowest performing land deals, which totaled roughly 5,200 lots with a corresponding $8.8 million walk-away charge this quarter. We spent $380 million on land acquisition and development this quarter and at September 30, 2022, lot supply totaled approximately 66,000,” said Mr. Lord. “We feel confident we have ample liquidity and a healthy balance sheet to manage through this changing environment. We had nothing drawn under our credit facility and our net debt-to-capital was 18.9% at September 30, 2022.”
Mr. Lord concluded, “We continue to monitor and evaluate shifting market conditions. We are projecting 4,300-4,700 home closings for the fourth quarter of 2022, which we anticipate will generate quarterly home closing revenue of $1.85-2.10 billion. Home closing gross margin is projected to be around 25%, reflecting the increased incentives we have been offering the last couple of quarters. With a projected effective tax rate of 23.5%, we expect diluted EPS to be in the range of $6.50-7.40 for the fourth quarter of 2022.”
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 Daylight Time (11:00 a.m. Eastern Daylight Time) on Thursday, October 27, 2022. 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. Pacific Daylight Time (2:00 p.m. Eastern Daylight Time) on October 27, 2022 and extending through November 10, 2022, at https://investors.meritagehomes.com.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30, | |||||||||||||||
2022 | 2021 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 1,569,032 | $ | 1,251,435 | $ | 317,597 | 25 | % | |||||||
Land closing revenue | 8,989 | 8,470 | 519 | 6 | % | ||||||||||
Total closing revenue | 1,578,021 | 1,259,905 | 318,116 | 25 | % | ||||||||||
Cost of home closings | (1,118,394 | ) | (879,759 | ) | 238,635 | 27 | % | ||||||||
Cost of land closings | (8,577 | ) | (7,706 | ) | 871 | 11 | % | ||||||||
Total cost of closings | (1,126,971 | ) | (887,465 | ) | 239,506 | 27 | % | ||||||||
Home closing gross profit | 450,638 | 371,676 | 78,962 | 21 | % | ||||||||||
Land closing gross profit | 412 | 764 | (352 | ) | (46 | )% | |||||||||
Total closing gross profit | 451,050 | 372,440 | 78,610 | 21 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 6,308 | 5,208 | 1,100 | 21 | % | ||||||||||
Expense | (2,804 | ) | (2,308 | ) | 496 | 21 | % | ||||||||
Earnings from financial services unconsolidated entities and other, net | 1,338 | 1,324 | 14 | 1 | % | ||||||||||
Financial services profit | 4,842 | 4,224 | 618 | 15 | % | ||||||||||
Commissions and other sales costs | (77,884 | ) | (68,952 | ) | 8,932 | 13 | % | ||||||||
General and administrative expenses | (48,443 | ) | (47,192 | ) | 1,251 | 3 | % | ||||||||
Interest expense | — | (79 | ) | (79 | ) | (100 | )% | ||||||||
Other (expense)/income, net | (74 | ) | 1,268 | (1,342 | ) | (106 | )% | ||||||||
Earnings before income taxes | 329,491 | 261,709 | 67,782 | 26 | % | ||||||||||
Provision for income taxes | (67,002 | ) | (60,957 | ) | 6,045 | 10 | % | ||||||||
Net earnings | $ | 262,489 | $ | 200,752 | $ | 61,737 | 31 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 7.18 | $ | 5.33 | $ | 1.85 | 35 | % | |||||||
Weighted average shares outstanding | 36,569 | 37,647 | (1,078 | ) | (3 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 7.10 | $ | 5.25 | $ | 1.85 | 35 | % | |||||||
Weighted average shares outstanding | 36,946 | 38,229 | (1,283 | ) | (3 | )% |
Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | Change $ | Change % | ||||||||||||
Homebuilding: | |||||||||||||||
Home closing revenue | $ | 4,223,435 | $ | 3,596,060 | $ | 627,375 | 17 | % | |||||||
Land closing revenue | 53,901 | 25,225 | 28,676 | 114 | % | ||||||||||
Total closing revenue | 4,277,336 | 3,621,285 | 656,051 | 18 | % | ||||||||||
Cost of home closings | (2,950,409 | ) | (2,612,428 | ) | 337,981 | 13 | % | ||||||||
Cost of land closings | (42,046 | ) | (24,246 | ) | 17,800 | 73 | % | ||||||||
Total cost of closings | (2,992,455 | ) | (2,636,674 | ) | 355,781 | 13 | % | ||||||||
Home closing gross profit | 1,273,026 | 983,632 | 289,394 | 29 | % | ||||||||||
Land closing gross profit | 11,855 | 979 | 10,876 | 1,111 | % | ||||||||||
Total closing gross profit | 1,284,881 | 984,611 | 300,270 | 30 | % | ||||||||||
Financial Services: | |||||||||||||||
Revenue | 16,119 | 15,624 | 495 | 3 | % | ||||||||||
Expense | (7,897 | ) | (6,846 | ) | 1,051 | 15 | % | ||||||||
Earnings from financial services unconsolidated entities and other, net | 4,033 | 3,821 | 212 | 6 | % | ||||||||||
Financial services profit | 12,255 | 12,599 | (344 | ) | (3 | )% | |||||||||
Commissions and other sales costs | (212,807 | ) | (210,585 | ) | 2,222 | 1 | % | ||||||||
General and administrative expenses | (136,370 | ) | (128,297 | ) | 8,073 | 6 | % | ||||||||
Interest expense | (41 | ) | (246 | ) | (205 | ) | (83 | )% | |||||||
Other (expense)/ income, net | (849 | ) | 3,443 | (4,292 | ) | (125 | )% | ||||||||
Loss on early extinguishment of debt | — | (18,188 | ) | (18,188 | ) | n/a | |||||||||
Earnings before income taxes | 947,069 | 643,337 | 303,732 | 47 | % | ||||||||||
Provision for income taxes | (217,242 | ) | (143,353 | ) | 73,889 | 52 | % | ||||||||
Net earnings | $ | 729,827 | $ | 499,984 | $ | 229,843 | 46 | % | |||||||
Earnings per common share: | |||||||||||||||
Basic | Change $ or shares | Change % | |||||||||||||
Earnings per common share | $ | 19.87 | $ | 13.26 | $ | 6.61 | 50 | % | |||||||
Weighted average shares outstanding | 36,736 | 37,703 | (967 | ) | (3 | )% | |||||||||
Diluted | |||||||||||||||
Earnings per common share | $ | 19.65 | $ | 13.06 | $ | 6.59 | 50 | % | |||||||
Weighted average shares outstanding | 37,136 | 38,285 | (1,149 | ) | (3 | )% |
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, 2022 | December 31, 2021 | |||||
Assets: | ||||||
Cash and cash equivalents | $ | 299,387 | $ | 618,335 | ||
Other receivables | 193,307 | 147,548 | ||||
Real estate (1) | 4,726,262 | 3,734,408 | ||||
Real estate not owned | — | 8,011 | ||||
Deposits on real estate under option or contract | 88,428 | 90,679 | ||||
Investments in unconsolidated entities | 11,356 | 5,764 | ||||
Property and equipment, net | 39,437 | 37,340 | ||||
Deferred tax asset, net | 41,060 | 40,672 | ||||
Prepaids, other assets and goodwill | 171,853 | 124,776 | ||||
Total assets | $ | 5,571,090 | $ | 4,807,533 | ||
Liabilities: | ||||||
Accounts payable | $ | 322,227 | $ | 216,009 | ||
Accrued liabilities | 353,512 | 337,277 | ||||
Home sale deposits | 57,767 | 42,610 | ||||
Liabilities related to real estate not owned | — | 7,210 | ||||
Loans payable and other borrowings | 12,460 | 17,552 | ||||
Senior notes, net | 1,143,314 | 1,142,486 | ||||
Total liabilities | 1,889,280 | 1,763,144 | ||||
Stockholders' Equity: | ||||||
Preferred stock | — | — | ||||
Common stock | 366 | 373 | ||||
Additional paid-in capital | 322,442 | 414,841 | ||||
Retained earnings | 3,359,002 | 2,629,175 | ||||
Total stockholders’ equity | 3,681,810 | 3,044,389 | ||||
Total liabilities and stockholders’ equity | $ | 5,571,090 | $ | 4,807,533 | ||
(1) Real estate – Allocated costs: | ||||||
Homes under contract under construction | $ | 1,452,691 | $ | 1,039,822 | ||
Unsold homes, completed and under construction | 986,862 | 484,999 | ||||
Model homes | 87,550 | 81,049 | ||||
Finished home sites and home sites under development | 2,199,159 | 2,128,538 | ||||
Total real estate | $ | 4,726,262 | $ | 3,734,408 |
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Depreciation and amortization | $ | 5,822 | $ | 6,478 | $ | 17,545 | $ | 19,892 | |||||||
Non-cash charges | $ | 8,791 | $ | 877 | $ | 11,608 | $ | 2,092 | |||||||
Summary of Capitalized Interest: | |||||||||||||||
Capitalized interest, beginning of period | $ | 61,459 | $ | 56,710 | $ | 56,253 | $ | 58,940 | |||||||
Interest incurred | 15,179 | 15,212 | 45,563 | 47,625 | |||||||||||
Interest expensed | — | (79 | ) | (41 | ) | (246 | ) | ||||||||
Interest amortized to cost of home and land closings | (14,548 | ) | (14,550 | ) | (39,685 | ) | (49,026 | ) | |||||||
Capitalized interest, end of period | $ | 62,090 | $ | 57,293 | $ | 62,090 | $ | 57,293 | |||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||
Senior notes, net, loans payable and other borrowings | $ | 1,155,774 | $ | 1,160,038 | |||||||||||
Stockholders' equity | 3,681,810 | 3,044,389 | |||||||||||||
Total capital | $ | 4,837,584 | $ | 4,204,427 | |||||||||||
Debt-to-capital | 23.9 | % | 27.6 | % | |||||||||||
Senior notes, net, loans payable and other borrowings | $ | 1,155,774 | $ | 1,160,038 | |||||||||||
Less: cash and cash equivalents | (299,387 | ) | (618,335 | ) | |||||||||||
Net debt | $ | 856,387 | $ | 541,703 | |||||||||||
Stockholders’ equity | 3,681,810 | 3,044,389 | |||||||||||||
Total net capital | $ | 4,538,197 | $ | 3,586,092 | |||||||||||
Net debt-to-capital | 18.9 | % | 15.1 | % |
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 729,827 | $ | 499,984 | ||||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
Depreciation and amortization | 17,545 | 19,892 | ||||||
Stock-based compensation | 16,897 | 14,435 | ||||||
Loss on early extinguishment of debt | — | 18,188 | ||||||
Equity in earnings from unconsolidated entities | (3,703 | ) | (2,878 | ) | ||||
Distribution of earnings from unconsolidated entities | 3,785 | 3,324 | ||||||
Other | 11,154 | (3,085 | ) | |||||
Changes in assets and liabilities: | ||||||||
Increase in real estate | (990,106 | ) | (810,731 | ) | ||||
Decrease/(increase) in deposits on real estate under option or contract | 176 | (18,453 | ) | |||||
Increase in other receivables, prepaids and other assets | (89,177 | ) | (51,611 | ) | ||||
Increase in accounts payable and accrued liabilities | 118,636 | 67,301 | ||||||
Increase in home sale deposits | 15,157 | 14,928 | ||||||
Net cash used in operating activities | (169,809 | ) | (248,706 | ) | ||||
Cash flows from investing activities: | ||||||||
Investments in unconsolidated entities | (5,674 | ) | (1 | ) | ||||
Distributions of capital from unconsolidated entities | — | — | ||||||
Purchases of property and equipment | (19,537 | ) | (17,910 | ) | ||||
Proceeds from sales of property and equipment | 328 | 404 | ||||||
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 | (24,883 | ) | (17,507 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayment of loans payable and other borrowings | (14,953 | ) | (6,308 | ) | ||||
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 | ) | (37,017 | ) | ||||
Net cash (used in)/provided by financing activities | (124,256 | ) | 82,883 | |||||
Net decrease in cash and cash equivalents | (318,948 | ) | (183,330 | ) | ||||
Beginning cash and cash equivalents | 618,335 | 745,621 | ||||||
Ending cash and cash equivalents | $ | 299,387 | $ | 562,291 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Three Months Ended September 30, | ||||||||||
2022 | 2021 | |||||||||
Homes | Value | Homes | Value | |||||||
Homes Closed: | ||||||||||
Arizona | 599 | $ | 254,530 | 532 | $ | 193,847 | ||||
California | 321 | 236,872 | 295 | 177,623 | ||||||
Colorado | 166 | 98,625 | 144 | 80,149 | ||||||
West Region | 1,086 | 590,027 | 971 | 451,619 | ||||||
Texas | 1,218 | 499,713 | 1,012 | 383,206 | ||||||
Central Region | 1,218 | 499,713 | 1,012 | 383,206 | ||||||
Florida | 426 | 166,138 | 386 | 139,642 | ||||||
Georgia | 117 | 53,108 | 139 | 52,004 | ||||||
North Carolina | 340 | 148,111 | 371 | 145,268 | ||||||
South Carolina | 147 | 48,777 | 92 | 31,686 | ||||||
Tennessee | 153 | 63,158 | 141 | 48,010 | ||||||
East Region | 1,183 | 479,292 | 1,129 | 416,610 | ||||||
Total | 3,487 | $ | 1,569,032 | 3,112 | $ | 1,251,435 | ||||
Homes Ordered: | ||||||||||
Arizona | 232 | $ | 97,462 | 550 | $ | 233,828 | ||||
California | 187 | 122,994 | 319 | 213,859 | ||||||
Colorado | 37 | 20,642 | 207 | 123,242 | ||||||
West Region | 456 | 241,098 | 1,076 | 570,929 | ||||||
Texas | 635 | 253,321 | 1,070 | 427,689 | ||||||
Central Region | 635 | 253,321 | 1,070 | 427,689 | ||||||
Florida | 531 | 214,004 | 534 | 192,479 | ||||||
Georgia | 175 | 71,731 | 176 | 74,766 | ||||||
North Carolina | 251 | 98,147 | 347 | 140,135 | ||||||
South Carolina | 137 | 42,728 | 100 | 31,535 | ||||||
Tennessee | 125 | 53,285 | 138 | 51,418 | ||||||
East Region | 1,219 | 479,895 | 1,295 | 490,333 | ||||||
Total | 2,310 | $ | 974,314 | 3,441 | $ | 1,488,951 |
Nine Months Ended September 30, | ||||||||||
2022 | 2021 | |||||||||
Homes | Value | Homes | Value | |||||||
Homes Closed: | ||||||||||
Arizona | 1,599 | $ | 687,527 | 1,423 | $ | 497,105 | ||||
California | 852 | 597,913 | 890 | 547,754 | ||||||
Colorado | 424 | 254,089 | 464 | 239,399 | ||||||
West Region | 2,875 | 1,539,529 | 2,777 | 1,284,258 | ||||||
Texas | 3,139 | 1,269,868 | 3,129 | 1,105,429 | ||||||
Central Region | 3,139 | 1,269,868 | 3,129 | 1,105,429 | ||||||
Florida | 1,301 | 503,820 | 1,246 | 440,847 | ||||||
Georgia | 423 | 190,769 | 456 | 169,620 | ||||||
North Carolina | 996 | 415,975 | 1,000 | 372,119 | ||||||
South Carolina | 400 | 132,855 | 258 | 87,741 | ||||||
Tennessee | 432 | 170,619 | 409 | 136,046 | ||||||
East Region | 3,552 | 1,414,038 | 3,369 | 1,206,373 | ||||||
Total | 9,566 | $ | 4,223,435 | 9,275 | $ | 3,596,060 | ||||
Homes Ordered: | ||||||||||
Arizona | 1,342 | $ | 594,631 | 1,776 | $ | 713,067 | ||||
California | 888 | 642,938 | 949 | 604,478 | ||||||
Colorado | 406 | 249,105 | 557 | 317,155 | ||||||
West Region | 2,636 | 1,486,674 | 3,282 | 1,634,700 | ||||||
Texas | 3,027 | 1,293,282 | 3,286 | 1,248,032 | ||||||
Central Region | 3,027 | 1,293,282 | 3,286 | 1,248,032 | ||||||
Florida | 1,788 | 724,209 | 1,481 | 547,706 | ||||||
Georgia | 620 | 280,010 | 533 | 213,632 | ||||||
North Carolina | 1,015 | 439,618 | 1,156 | 450,854 | ||||||
South Carolina | 435 | 146,100 | 264 | 90,532 | ||||||
Tennessee | 430 | 182,001 | 439 | 152,297 | ||||||
East Region | 4,288 | 1,771,938 | 3,873 | 1,455,021 | ||||||
Total | 9,951 | $ | 4,551,894 | 10,441 | $ | 4,337,753 | ||||
Order Backlog: | ||||||||||
Arizona | 888 | $ | 397,695 | 1,346 | $ | 560,090 | ||||
California | 429 | 314,622 | 503 | 331,454 | ||||||
Colorado | 310 | 192,763 | 301 | 182,536 | ||||||
West Region | 1,627 | 905,080 | 2,150 | 1,074,080 | ||||||
Texas | 1,766 | 790,227 | 1,787 | 715,226 | ||||||
Central Region | 1,766 | 790,227 | 1,787 | 715,226 | ||||||
Florida | 1,355 | 571,001 | 785 | 321,831 | ||||||
Georgia | 400 | 180,059 | 233 | 101,996 | ||||||
North Carolina | 584 | 247,405 | 610 | 242,192 | ||||||
South Carolina | 168 | 57,664 | 126 | 44,028 | ||||||
Tennessee | 164 | 75,323 | 147 | 56,052 | ||||||
East Region | 2,671 | 1,131,452 | 1,901 | 766,099 | ||||||
Total | 6,064 | $ | 2,826,759 | 5,838 | $ | 2,555,405 |
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
Three Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 52 | 54.0 | 38 | 38.0 | ||||
California | 32 | 32.0 | 18 | 19.0 | ||||
Colorado | 18 | 18.5 | 16 | 16.5 | ||||
West Region | 102 | 104.5 | 72 | 73.5 | ||||
Texas | 74 | 77.0 | 68 | 66.0 | ||||
Central Region | 74 | 77.0 | 68 | 66.0 | ||||
Florida | 30 | 35.5 | 38 | 36.0 | ||||
Georgia | 18 | 16.0 | 12 | 11.0 | ||||
North Carolina | 27 | 29.5 | 26 | 26.0 | ||||
South Carolina | 12 | 14.5 | 11 | 9.0 | ||||
Tennessee | 12 | 12.0 | 9 | 9.5 | ||||
East Region | 99 | 107.5 | 96 | 91.5 | ||||
Total | 275 | 289.0 | 236 | 231.0 |
Nine Months Ended September 30, | ||||||||
2022 | 2021 | |||||||
Ending | Average | Ending | Average | |||||
Active Communities: | ||||||||
Arizona | 52 | 46.8 | 38 | 35.5 | ||||
California | 32 | 27.3 | 18 | 18.3 | ||||
Colorado | 18 | 18.0 | 16 | 14.0 | ||||
West Region | 102 | 92.1 | 72 | 67.8 | ||||
Texas | 74 | 75.6 | 68 | 63.6 | ||||
Central Region | 74 | 75.6 | 68 | 63.6 | ||||
Florida | 30 | 38.4 | 38 | 33.3 | ||||
Georgia | 18 | 15.5 | 12 | 10.3 | ||||
North Carolina | 27 | 28.6 | 26 | 24.3 | ||||
South Carolina | 12 | 14.0 | 11 | 7.5 | ||||
Tennessee | 12 | 12.5 | 9 | 8.5 | ||||
East Region | 99 | 109.0 | 96 | 83.9 | ||||
Total | 275 | 276.7 | 236 | 215.3 |
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 a variety of entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee and Utah.
Meritage Homes has delivered over 160,000 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 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 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; and projected fourth quarter 2022 home closings, home closing revenue, home closing gross margin, effective tax rate and diluted earnings per share.
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, 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 June 30, 2022 under the caption "Risk Factors," which can be found on our website at investors.meritagehomes.com.
Contacts: | Emily Tadano, VP Investor Relations and ESG | ||
(480) 515-8979 (office) | |||
investors@meritagehomes.com |