MTH
$69.49
Meritage
$1.37
2.01%
Earnings Details
2nd Quarter June 2019
Wednesday, July 24, 2019 4:30:00 PM
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Summary

Meritage Homes Raises Guidance

Meritage (MTH) reported 2nd Quarter June 2019 earnings of $1.31 per share on revenue of $864.6 million. The consensus earnings estimate was $1.03 per share on revenue of $804.7 million. Revenue fell 1.5% compared to the same quarter a year ago.

The company said it expects 2019 earnings of $5.20 to $5.50 per share on revenue of $3.40 billion to $3.60 billion. The company's previous guidance was earnings of $4.65 to $4.95 per share on revenue of $3.25 billion to $3.45 billion and the current consensus earnings estimate is $4.82 per share on revenue of $3.38 billion for the year ending December 31, 2019.

Meritage Homes Corp is a designer and builder of single-family attached and detached homes in the historically high-growth regions of the southern and western United States.

Results
Reported Earnings
$1.31
Earnings Whisper
-
Consensus Estimate
$1.03
Reported Revenue
$864.6 Mil
Revenue Estimate
$804.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Meritage Homes reports second quarter 2019 results including a 22% increase in orders, reflecting healthy demand for entry-level homes, along with a 5% increase in closings and diluted EPS of $1.31

SCOTTSDALE, Ariz., July 24, 2019 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported second quarter results for the period ended June 30, 2019.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)

  Three Months Ended June 30, Six Months Ended June 30,
  2019 2018 % Chg 2019 2018 % Chg
Homes closed (units) 2,253  2,139  5% 4,018  3,864  4%
Home closing revenue $863,053  $872,383  (1)% $1,561,703  $1,600,915  (2)%
Average sales price - closings $383  $408  (6)% $389  $414  (6)%
Home orders (units) 2,735  2,250  22% 5,265  4,608  14%
Home order value $1,043,995  $917,996  14% $2,020,974  $1,880,792  7%
Average sales price - orders $382  $408  (6)% $384  $408  (6)%
Ending backlog (units)       3,680  3,619  2%
Ending backlog value       $1,477,007  $1,528,756  (3)%
Average sales price - backlog       $401  $422  (5)%
Earnings before income taxes $67,674  $71,185  (5)% $100,044  $120,069  (17)%
Net earnings $50,828  $53,838  (6)% $76,240  $97,712  (22)%
Diluted EPS $1.31  $1.31  % $1.97  $2.37  (17)%

MANAGEMENT COMMENTS

“Home buying activity was strong and steady throughout the second quarter of 2019, led by affordable entry-level and move-up homes," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our second quarter orders increased 22% year-over-year to a total of 2,735, representing a 13-year record high for quarterly order volume, which was mainly driven by a 19% increase in absorptions pace on top of a small increase in average community count. We believe the demand we’ve seen throughout the extended spring selling season reflects sustained positive macroeconomic factors for the housing industry.

“It’s been a little over two years since we began rolling out our strategy to focus on the entry-level and first move-up markets, and streamlining our operations to deliver a stress-free, transparent and easy home buying experience to first-time, first move-up and move-down customer groups. Approximately 90% of our second quarter 2019 orders came from homes purchased by those customers. Most notably, our entry-level LiVE.NOW.® homes made up 52% of our second quarter orders, up from 44% a year ago and 35% two years ago. We’ve seen strong demand for more affordable homes by Millennials and Baby Boomers, or others who are looking for a new, nicely amenitized, energy-efficient home at a great value.

“We have closed over 4,000 homes through the first half of the year, 4% more than we closed in the first six months of 2018, despite starting the year with a backlog that was 15% less than we had the previous year,” Mr. Hilton added. “We are reducing our cycle times with our LiVE.NOW. communities and Studio M, allowing us to convert sales of spec homes into closings more quickly. Two-thirds of our second quarter 2019 closings were from previously started spec homes, up from a little more than half of closings a year ago. Most of those came from our entry-level LiVE.NOW. communities. The higher absorption pace in those communities and our simplified product offerings should drive additional overhead leverage and profitability in the future.”

Mr. Hilton concluded, “We are encouraged by the outlook for interest rates and optimistic that demand for our homes and communities will remain strong. Based on our results in the first half of this year, we are currently projecting 2019 home closings and total home closing revenue of approximately 8,700-9,100 and $3.4-3.6 billion, respectively, for the full year. We are anticipating home closing gross margin to be in the mid-18% range for the year, which we estimate will translate to approximately $5.20-5.50 diluted earnings per share.”

SECOND QUARTER RESULTS

  • Total orders for the second quarter of 2019 increased 22% year-over-year, driven by a 19% increase in absorption pace over the prior year’s second quarter. West, Central and East region orders grew 31%, 8% and 26%, respectively, with broad strength across nearly all of the company’s markets. Partially offsetting the increase in orders was a 6% decrease in average sales price (ASP) due to a higher percentage of lower-priced entry-level homes. As a result, the total value of second quarter orders increased 14% over 2018.

  • Home closing revenue decreased 1% on a 5% increase in home closing volume offset by a 6% decrease in ASP over the second quarter of 2018. The lower ASP primarily reflected the company’s on-going strategic shift toward more affordable entry-level and first move-up homes at lower price points. The reduction in ASP from the mix shift toward lower-priced homes was most evident in the West region, where home closing revenue was down 15% year-over-year on a 9% reduction in ASP, coupled with 6% fewer home closings. Lower closing volume in the West was entirely attributable to Meritage's California operations, where demand has softened over the last year. East region home closing revenue was up 4% on an 11% increase in closings offset by a 7% decline in ASP. The Central region's second quarter 2019 closing volume and revenue increased 11% and 12%, respectively.

  • Home closing gross profit was flat compared to the prior year's second quarter, despite lower home closing revenue, as home closing gross margin improved slightly to 18.4% from 18.3%.

  • Net earnings of $50.8 million ($1.31 per diluted share) for the second quarter of 2019, compared to $53.8 million ($1.31 per diluted share) for the second quarter of 2018. Additional interest expense in 2019 accounted for most of the $3.5 million decrease in pre-tax earnings, in addition to a $1.1 million year-over-year increase in land closing gross loss from one impairment in 2019 due to exiting a move-up community that was no longer aligned with the company's strategy.

  • Selling, general and administrative expenses (SG&A) were 11.0% of second quarter 2019 home closing revenue, compared to 10.9% in the second quarter of 2018, despite elevated brokerage commission costs.

  • Interest expense increased $3.2 million year-over-year, primarily due to less interest capitalizable to assets under development as construction cycles have shortened and turnover of entry-level inventory has increased.

YEAR TO DATE RESULTS

  • Net earnings were $76.2 million for the first half of 2019, a 22% decrease from $97.7 million for the first half of 2018, due to lower home closing revenue and corresponding gross profit, higher interest expense in 2019, a positive legal settlement in 2018 and a higher tax rate in 2019.

  • Home closings for the first half of the year increased 4% over 2018 while average prices on closings decreased 6% from the previous year, resulting in a 2% decline in home closing revenue.

  • Home closing gross profit decreased 3% to $275.6 million in the first half of 2019 compared to $283.8 million in the first half of 2018, primarily due to targeted incentives in the first quarter of 2019 and reduced leverage of our construction overhead expenses on lower home closing revenue. Despite the impacts of those items, home closing gross margin was just slightly lower at 17.6% in the first half of 2019 compared to 17.7% in the first half of 2018.

  • SG&A expenses increased 1% year-over-year, due to higher brokerage commissions, severance expenses and accelerated equity compensation expense into the first quarter of 2019 due to changes in tax rules. Total SG&A was 11.6% of year-to-date 2019 home closing revenue, compared to 11.2% in the same period of 2018.

  • Interest expense increased $7.1 million year-over-year, primarily due to less interest capitalized to assets under development on faster construction cycles and turnover of entry-level inventory.

  • Other income decreased by $3.7 million in 2019 primarily due to a $4.8 million favorable legal settlement in the first quarter of 2018 related to a previous joint venture in Nevada.

  • The effective tax rate for the first half of 2019 was 24%, compared to 19% for the first half of 2018, due to $6.3 million of energy tax credits recorded in the first quarter of 2018 for homes closed in 2017 that qualified for the credits.

BALANCE SHEET

  • Cash and cash equivalents at June 30, 2019 totaled $407.4 million, compared to $311.5 million at December 31, 2018, due to positive cash flow from operations. Real estate assets remained consistent at $2.7 billion.

  • Meritage ended the second quarter of 2019 with approximately 34,700 total lots owned or under control, compared to approximately 33,700 total lots at June 30, 2018. Approximately 75% of the lots added during the second quarter of 2019 were in communities planned for entry-level product.

  • Debt-to-capital ratios were 42.1% at June 30, 2019 and 43.2% at December 31, 2018, with net debt-to-capital ratios of 33.4% and 36.7%, respectively.

CONFERENCE CALL

Management will host a conference call to discuss the results at 7:30 a.m. Arizona Time (10:30 a.m. Eastern Time) on Thursday, July 25. 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 can avoid 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/10132560.

Telephone participants who are unable to pre-register may dial in to 1-866-226-4948 US toll free on the day of the call. International dial-in number is 1-412-902-4125 or 1-855-669-9657 toll free for Canada.

A replay of the call will be available beginning at approximately 12:00 p.m. ET on July 25 and extending through August 8, 2019, on the website noted above or by dialing 1-877-344-7529 US toll free, 1-412-317-0088 for international or 1-855-669-9658 toll free for Canada, and referencing conference number 10132560.


Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)

  Three Months Ended June 30,
  2019 2018 Change $ Change %
Homebuilding:       
 Home closing revenue$863,053  $872,383  $(9,330) (1)%
 Land closing revenue1,557  5,112  (3,555) (70)%
 Total closing revenue864,610  877,495  (12,885) (1)%
 Cost of home closings(703,935) (712,868) (8,933) (1)%
 Cost of land closings(3,299) (5,799) (2,500) (43)%
 Total cost of closings(707,234) (718,667) (11,433) (2)%
 Home closing gross profit159,118  159,515  (397) %
 Land closing gross loss(1,742) (687) (1,055) (154)%
 Total closing gross profit157,376  158,828  (1,452) (1)%
Financial Services:       
 Revenue4,160  3,870  290  7%
 Expense(1,720) (1,693) 27  2%
 Earnings from financial services unconsolidated entities and other, net3,591  3,474  117  3%
 Financial services profit6,031  5,651  380  7%
Commissions and other sales costs(60,125) (60,823) (698) (1)%
General and administrative expenses(34,779) (34,205) 574  2%
Interest expense(3,197) (44) 3,153  n/m 
Other income, net2,368  1,778  590  33%
Earnings before income taxes67,674  71,185  (3,511) (5)%
Provision for income taxes(16,846) (17,347) (501) (3)%
Net earnings$50,828  $53,838  $(3,010) (6)%
        
Earnings per common share:       
 Basic    Change $ or shares Change %
 Earnings per common share$1.33  $1.32  $0.01  1%
 Weighted average shares outstanding38,266  40,647  (2,381) (6)%
 Diluted       
 Earnings per common share$1.31  $1.31  $  %
 Weighted average shares outstanding38,889  41,164  (2,275) (6)%


  Six Months Ended June 30,
  2019 2018 Change $ Change %
Homebuilding:       
 Home closing revenue$1,561,703  $1,600,915  $(39,212) (2)%
 Land closing revenue11,052  19,144  (8,092) (42)%
 Total closing revenue1,572,755  1,620,059  (47,304) (3)%
 Cost of home closings(1,286,123) (1,317,070) (30,947) (2)%
 Cost of land closings(12,428) (21,041) (8,613) (41)%
 Total cost of closings(1,298,551) (1,338,111) (39,560) (3)%
 Home closing gross profit275,580  283,845  (8,265) (3)%
 Land closing gross loss(1,376) (1,897) 521  27%
 Total closing gross profit274,204  281,948  (7,744) (3)%
Financial Services:       
 Revenue7,388  6,918  470  7%
 Expense(3,224) (3,177) 47  1%
 Earnings from financial services unconsolidated entities and other, net6,569  6,130  439  7%
 Financial services profit10,733  9,871  862  9%
Commissions and other sales costs(112,680) (113,575) (895) (1)%
General and administrative expenses(68,345) (65,098) 3,247  5%
Interest expense(7,282) (180) 7,102  n/m 
Other income, net3,414  7,103  (3,689) (52)%
Earnings before income taxes100,044  120,069  (20,025) (17)%
Provision for income taxes(23,804) (22,357) 1,447  6%
Net earnings$76,240  $97,712  $(21,472) (22)%
        
Earnings per common share:       
 Basic    Change $ or shares Change %
 Earnings per common share$2.00  $2.41  $(0.41) (17)%
 Weighted average shares outstanding38,136  40,568  (2,432) (6)%
 Diluted       
 Earnings per common share$1.97  $2.37  $(0.40) (17)%
 Weighted average shares outstanding38,789  41,193  (2,404) (6)%


Meritage Homes Corporation and Subsidiaries
 Consolidated Balance Sheets
(In thousands)
(Unaudited)

  June 30, 2019 December 31, 2018
Assets:    
Cash and cash equivalents $407,427  $311,466 
Other receivables 82,057  77,285 
Real estate (1) 2,735,883  2,742,621 
Deposits on real estate under option or contract 46,320  51,410 
Investments in unconsolidated entities 7,555  17,480 
Property and equipment, net 54,157  54,596 
Deferred tax asset 25,170  26,465 
Prepaids, other assets and goodwill 108,307  84,156 
Total assets $3,466,876  $3,365,479 
Liabilities:    
Accounts payable $141,194  $128,169 
Accrued liabilities 187,411  177,862 
Home sale deposits 32,249  28,636 
Loans payable and other borrowings 12,224  14,773 
Senior notes, net 1,295,698  1,295,284 
Total liabilities 1,668,776  1,644,724 
Stockholders' Equity:    
Preferred stock    
Common stock 383  381 
Additional paid-in capital 502,884  501,781 
Retained earnings 1,294,833  1,218,593 
Total stockholders’ equity 1,798,100  1,720,755 
Total liabilities and stockholders’ equity $3,466,876  $3,365,479 
 

(1) Real estate – Allocated costs:
    
Homes under contract under construction $705,157  $480,143 
Unsold homes, completed and under construction 557,675  644,717 
Model homes 133,983  146,327 
Finished home sites and home sites under development 1,339,068  1,471,434 
Total real estate $2,735,883  $2,742,621 

Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):

 Three Months Ended June 30, Six Months Ended June 30,
 2019 2018 2019 2018
Depreciation and amortization$6,549  $6,742  $12,381  $12,608 
        
Summary of Capitalized Interest:       
Capitalized interest, beginning of period$89,414  $81,828  $88,454  $78,564 
Interest incurred21,465  21,374  42,908  42,243 
Interest expensed(3,197) (44) (7,282) (180)
Interest amortized to cost of home and land closings(19,375) (18,715) (35,773) (36,184)
Capitalized interest, end of period$88,307  $84,443  $88,307  $84,443 
        
 June 30, 2019 December 31, 2018    
Notes payable and other borrowings$1,307,922  $1,310,057     
Stockholders' equity1,798,100  1,720,755     
Total capital$3,106,022  $3,030,812     
Debt-to-capital42.1% 43.2%    
Notes payable and other borrowings$1,307,922  $1,310,057     
Less: cash and cash equivalents(407,427) (311,466)    
Net debt$900,495  $998,591     
Stockholders’ equity1,798,100  1,720,755     
Total net capital$2,698,595  $2,719,346     
Net debt-to-capital33.4% 36.7%    



Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

  Six Months Ended June 30,
  2019 2018
Cash flows from operating activities:    
Net earnings $76,240  $97,712 
Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities:    
Depreciation and amortization 12,381  12,608 
Stock-based compensation 10,062  8,976 
Equity in earnings from unconsolidated entities (5,828) (5,978)
Distribution of earnings from unconsolidated entities 8,508  6,834 
Other 4,305  2,407 
Changes in assets and liabilities:    
Decrease/(increase) in real estate 5,439  (155,809)
Decrease in deposits on real estate under option or contract 5,096  11,093 
(Increase)/decrease in other receivables, prepaids and other assets (28) 1,634 
(Decrease)/increase in accounts payable and accrued liabilities (6,439) 6,997 
Increase in home sale deposits 3,613  3,071 
Net cash provided by/(used in) operating activities 113,349  (10,455)
Cash flows from investing activities:    
Investments in unconsolidated entities (1,112) (417)
Distributions of capital from unconsolidated entities 7,250   
Purchases of property and equipment (12,132) (15,726)
Proceeds from sales of property and equipment 192  92 
Maturities/sales of investments and securities 566  1,065 
Payments to purchase investments and securities (566) (1,065)
Net cash used in investing activities (5,802) (16,051)
Cash flows from financing activities:    
Repayment of loans payable and other borrowings (2,629) (2,499)
Repayment of senior notes   (175,000)
Proceeds from issuance of senior notes   206,000 
Payment of debt issuance costs   (3,315)
Repurchase of shares (8,957)  
Net cash (used in)/provided by financing activities (11,586) 25,186 
Net increase/(decrease) in cash and cash equivalents 95,961  (1,320)
Beginning cash and cash equivalents 311,466  170,746 
Ending cash and cash equivalents $407,427  $169,426 


Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)

         
  Three Months Ended June 30,
  2019 2018
  Homes Value Homes Value
Homes Closed:        
Arizona 389  $125,388  366  $118,272 
California 132  83,454  206  142,019 
Colorado 169  90,130  162  89,421 
West Region 690  298,972  734  349,712 
Texas 823  289,839  741  259,344 
Central Region 823  289,839  741  259,344 
Florida 281  111,736  252  110,467 
Georgia 122  43,317  104  34,835 
North Carolina 196  70,629  195  77,075 
South Carolina 70  23,163  76  26,885 
Tennessee 71  25,397  37  14,065 
East Region 740  274,242  664  263,327 
Total 2,253  $863,053  2,139  $872,383 
Homes Ordered:        
Arizona 582  $188,215  416  $135,717 
California 207  135,519  190  131,699 
Colorado 220  110,314  166  89,818 
West Region 1,009  434,048  772  357,234 
Texas 827  275,380  766  277,556 
Central Region 827  275,380  766  277,556 
Florida 331  131,958  320  136,534 
Georgia 149  51,977  109  41,964 
North Carolina 240  89,571  143  54,704 
South Carolina 69  22,806  88  30,652 
Tennessee 110  38,255  52  19,352 
East Region 899  334,567  712  283,206 
Total 2,735  $1,043,995  2,250  $917,996 


         
  Six Months Ended June 30,
  2019 2018
  Homes Value Homes Value
Homes Closed:        
Arizona 686  $223,842  641  $209,268 
California 264  169,291  437  301,410 
Colorado 338  178,805  256  143,807 
West Region 1,288  571,938  1,334  654,485 
Texas 1,366  481,445  1,283  451,089 
Central Region 1,366  481,445  1,283  451,089 
Florida 507  202,560  512  223,254 
Georgia 241  85,456  177  59,808 
North Carolina 352  127,170  323  127,748 
South Carolina 127  42,745  142  49,006 
Tennessee 137  50,389  93  35,525 
East Region 1,364  508,320  1,247  495,341 
Total 4,018  $1,561,703  3,864  $1,600,915 
         
Homes Ordered:        
Arizona 1,039  $333,613  875  $288,878 
California 374  243,993  409  292,097 
Colorado 424  215,562  341  186,913 
West Region 1,837  793,168  1,625  767,888 
Texas 1,697  581,645  1,575  557,059 
Central Region 1,697  581,645  1,575  557,059 
Florida 632  258,032  583  249,204 
Georgia 293  102,204  257  92,834 
North Carolina 470  172,556  300  116,189 
South Carolina 150  48,020  168  59,326 
Tennessee 186  65,349  100  38,292 
East Region 1,731  646,161  1,408  555,845 
Total 5,265  $2,020,974  4,608  $1,880,792 
         
Order Backlog:        
Arizona 696  $243,449  560  $199,508 
California 201  141,196  290  213,761 
Colorado 271  140,304  284  158,019 
West Region 1,168  524,949  1,134  571,288 
Texas 1,312  473,968  1,312  489,106 
Central Region 1,312  473,968  1,312  489,106 
Florida 497  220,544  517  222,653 
Georgia 175  63,158  231  83,505 
North Carolina 295  112,808  220  85,273 
South Carolina 112  37,672  125  45,805 
Tennessee 121  43,908  80  31,126 
East Region 1,200  478,090  1,173  468,362 
Total 3,680  $1,477,007  3,619  $1,528,756 


Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)

         
  Three Months Ended June 30,
  2019 2018
  Ending Average Ending Average
Active Communities:        
Arizona 40  37.0  40  38.5 
California 20  20.5  15  15.0 
Colorado 21  22.0  19  18.0 
West Region 81  79.5  74  71.5 
Texas 73  78.5  90  93.5 
Central Region 73  78.5  90  93.5 
Florida 36  34.0  30  29.0 
Georgia 21  20.0  20  20.5 
North Carolina 23  24.0  20  20.0 
South Carolina 9  10.0  11  11.5 
Tennessee 11  11.0  8  7.0 
East Region 100  99.0  89  88.0 
Total 254  257.0  253  253.0 


         
  Six Months Ended June 30,
  2019 2018
  Ending Average Ending Average
Active Communities:        
Arizona 40  40.0  40  39.0 
California 20  18.5  15  17.5 
Colorado 21  20.5  19  15.0 
West Region 81  79.0  74  71.5 
Texas 73  84.0  90  91.0 
Central Region 73  84.0  90  91.0 
Florida 36  33.5  30  29.0 
Georgia 21  21.5  20  19.5 
North Carolina 23  24.0  20  18.5 
South Carolina 9  10.5  11  12.0 
Tennessee 11  10.5  8  7.0 
East Region 100  100.0  89  86.0 
Total 254  263.0  253  248.5 

About Meritage Homes Corporation

Meritage Homes is the seventh-largest public homebuilder in the United States, based on homes closed in 2018. Meritage offers a variety of homes that are designed with a focus on first-time and first move-up buyers in Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.

The Company has designed and built over 120,000 homes in its 34-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 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, to update or revise any forward-looking statements to reflect future events or changes in these expectations, except as required by law. 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; legislation related to tariffs; the availability and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; the success of strategic initiatives; the ability of our potential buyers to sell their existing homes; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; changes in tax laws that adversely impact us or our homebuyers; 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 breach; 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, 2018 and our Form 10-Q for the quarter ended March 31, 2019 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)
 investors@meritagehomes.com

 

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Source: Meritage Homes Corporation