Meritage Homes reports third quarter 2021 results, including record gross margin of 29.7% and diluted EPS of $5.25

Wednesday, 27. October 2021 22:30

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)
 
  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

  • The total orders of 3,441 for the third quarter of 2021 reflected a decrease of 11% year-over-year, driven by a 15% decline in average absorption pace from 5.8 to 5.0 per month. In the third quarter of 2021, we metered our orders pace to address production constraints. This was partially offset by a 5% increase in average communities in 2021. Entry-level represented 84% of third quarter 2021 orders, compared to 69% in the same quarter in 2020. Stemming from the elevated demand for our products over the past few quarters and constrained housing supply, the sustained favorable pricing environment led to year-over-year increases in average sales price ("ASP") for both orders and backlog. Even as our product mix continued to shift toward entry-level homes, ASP on orders in the third quarter of 2021 exceeded $430,000.

  • The 10% year-over-year increase in home closing revenue to $1.3 billion for the third quarter of 2021 resulted from 4% higher home closing volume and 7% higher closing ASP. Despite the product mix shift toward entry-level homes, the increase in closing ASP was primarily attributable to the sustained strength in housing demand and the significant price increases the market has absorbed in recent quarters.

  • The 820 bps improvement in third quarter 2021 home closing gross margin to 29.7% from 21.5% a year ago mainly resulted from pricing power and leveraging of fixed costs on greater home closing revenue, which more than offset higher lumber prices and increases in other commodity costs.

  • Selling, general and administrative expenses ("SG&A") were 9.3% of third quarter 2021 home closing revenue, an 80 bps improvement over 10.1% in the prior year, resulting from greater leverage of fixed expenses on higher home closing revenue, cost savings from technology innovations that particularly benefited our sales and marketing efforts and lower broker commissions.

  • The third quarter effective income tax rate was 23.3% in 2021 compared to 19.5% in 2020. Eligible energy tax credits on qualifying energy-efficient homes closed under the Taxpayer Certainty and Disaster Tax Relief Act enacted in December 2019 reduced the rate in both years.

  • Third quarter 2021 pre-tax margin increased 880 bps to 20.7%, compared to 11.9% in the third quarter of 2020. Net earnings were $200.7 million ($5.25 per diluted share) for the third quarter of 2021, an 84% increase over $109.1 million ($2.84 per diluted share) for the third quarter of 2020. Strong earnings growth reflected higher closing volume, pricing power, expanded gross margin and the improved overhead leverage, which led to an 85% year-over-year improvement in earnings per diluted share.

YEAR TO DATE RESULTS

  • Total orders for the first nine months of 2021 decreased 1% year-over-year, driven by 7% greater average absorption pace, offset by a 7% decrease in average community count compared to the first nine months of 2020.

  • Home closing revenue increased 18% in the first nine months of 2021 to $3.6 billion due to 15% improved home closing volume and 3% higher closing ASP given the favorable pricing environment.

  • The 640 bps improvement for home closing gross margin in the first nine months of 2021 to 27.4% from 21.0% primarily resulted from higher ASP and better leveraging of fixed costs on greater home closing revenue.

  • SG&A expenses improved 90 bps year-over-year to 9.4% of home closing revenue, compared to 10.3% in the first nine months of 2020, due to operating efficiencies and improved leverage of fixed expenses on higher home closing revenue.

  • Loss on early extinguishment of debt of $18.2 million was recognized in the first nine months of 2021 in connection with the early redemption in April 2021 of the 7.00% senior notes due 2022.

  • The effective tax rate for the first nine months of 2021 was 22.3%, compared to 19.9% for the first nine months of 2020. The effective tax rate in both periods benefited from tax credits earned for qualifying energy-efficient homes under the Taxpayer Certainty and Disaster Tax Relief Act enacted in December 2019.

  • Net earnings were $500 million ($13.06 per diluted share) for the first nine months of 2021, an 85% increase over $270.9 million ($7.04 per diluted share) for the first nine months of 2020, primarily reflecting higher closing volume, pricing power, expanded gross margin and the greater overhead leverage in 2021.

BALANCE SHEET

  • Cash and cash equivalents at September 30, 2021 totaled $562.3 million, compared to $745.6 million at December 31, 2020, reflecting investments in real estate and development and share repurchases. Real estate assets increased from $2.8 billion at December 31, 2020 to $3.6 billion at September 30, 2021.

  • A total of nearly 70,000 lots were owned or controlled as of September 30, 2021, compared to approximately 48,000 total lots at September 30, 2020. In the third quarter of 2021, about 9,800 net new lots were added, representing an estimated net 45 future communities, of which 87% are for entry-level communities.

  • Debt-to-capital and net debt-to-capital ratios were 29.1% and 17.5%, respectively, at September 30, 2021, compared to 30.3% and 10.5%, respectively, at December 31, 2020.

  • In the first nine months of 2021, we repurchased 395,461 shares of stock for a total of $37.0 million, of which 95,461 shares totaling $9.5 million were repurchased during the third quarter of 2021. Since September 30, 2021, we repurchased an additional 243,885 shares totaling $24.0 million and have $153.4 million remaining available to repurchase in our authorized share repurchase program as of October 25, 2021.

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)
  Three Months Ended September 30,
  2021 2020 Change $ Change %
Homebuilding:       
 Home closing revenue$1,251,435  $1,133,221  $118,214  10 %
 Land closing revenue8,470  4,870  3,600  74 %
 Total closing revenue1,259,905  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 profit371,676  243,567  128,109  53 %
 Land closing gross profit764  510  254  50 %
 Total closing gross profit372,440  244,077  128,363  53 %
Financial Services:       
 Revenue5,208  4,939  269  5 %
 Expense(2,308) (2,026) 282  14 %
 Earnings from financial services unconsolidated            
 entities and other, net1,324  1,402  (78) (6)%
 Financial services profit4,224  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, net1,268  1,188  80  7 %
Earnings before income taxes261,709  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 outstanding37,647  37,607  40   %
 Diluted       
 Earnings per common share$5.25  $2.84  $2.41  85 %
 Weighted average shares outstanding38,229  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 revenue25,225  16,954  8,271  49 %
 Total closing revenue3,621,285  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 profit983,632  642,623  341,009  53 %
 Land closing gross profit/(loss)979  (555) 1,534  276 %
 Total closing gross profit984,611  642,068  342,543  53 %
Financial Services:       
 Revenue15,624  13,329  2,295  17 %
 Expense(6,846) (5,519) 1,327  24 %
 Earnings from financial services unconsolidated             
 entities and other, net3,821  3,132  689  22 %
 Financial services profit12,599  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, net3,443  3,313  130  4 %
Loss on early extinguishment of debt(18,188)   18,188  n/a  
Earnings before income taxes643,337  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 outstanding37,703  37,763  (60)  %
 Diluted       
 Earnings per common share$13.06  $7.04  $6.02  86 %
 Weighted average shares outstanding38,285  38,491  (206) (1)%
              


Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
  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,
 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 incurred15,212   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
    
Senior notes, net, loans payable and other borrowings$1,161,195   $1,020,085      
Stockholders' equity2,825,270   2,347,868      
Total capital$3,986,465   $3,367,953      
Debt-to-capital29.1 % 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’ equity2,825,270   2,347,868      
Total net capital$3,424,174   $2,622,332      
Net debt-to-capital17.5 % 10.5 %    
            


Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows 
(In thousands)
(Unaudited)
 
  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)
         
  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)
         
  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)
investors@meritagehomes.com

Primary Logo

Related Links: Meritage Homes Corporation
Author:
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.