MTH
$41.10
Meritage
$.65
1.61%
Earnings Details
2nd Quarter June 2017
Tuesday, August 1, 2017 8:13:27 AM
Tweet Share Watch
Summary

Meritage Beats

Meritage (MTH) reported 2nd Quarter June 2017 earnings of $0.98 per share on revenue of $802.0 million. The consensus earnings estimate was $0.75 per share on revenue of $763.8 million. The Earnings Whisper number was $0.77 per share. Revenue grew 0.5% on a year-over-year basis.

The company said it now expects 2017 revenue of $3.20 billion to $3.40 billion. The company's previous guidance was revenue of $3.10 billion to $3.30 billion and the current consensus estimate is revenue of $3.25 billion for the year ending December 31, 2017.

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
$0.98
Earnings Whisper
$0.77
Consensus Estimate
$0.75
Reported Revenue
$802.0 Mil
Revenue Estimate
$763.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Meritage Homes reports second quarter 2017 diluted EPS of $0.98 on higher margins, with continued progress on strategic initiatives

Meritage Homes Corporation (MTH), a leading U.S. homebuilder, reported its second quarter results for the period ended June 30, 2017.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
% Chg
2017
2016
% Chg
Homes closed (units)
1,906
1,950
(2 )%
3,487
3,438
1
%
Home closing revenue
$
797,780
$
795,845
-- %
$
1,458,397
$
1,391,462
5
%
Average sales price - closings
$
419
$
408
3
%
$
418
$
405
3
%
Home orders (units)
2,153
2,073
4
%
4,288
4,060
6
%
Home order value
$
878,718
$
845,346
4
%
$
1,771,421
$
1,649,946
7
%
Average sales price - orders
$
408
$
408
-- %
$
413
$
406
2
%
Ending backlog (units)
3,428
3,314
3
%
Ending backlog value
$
1,448,782
$
1,396,165
4
%
Average sales price - backlog
$
423
$
421
-- %
Earnings before income taxes
$
63,205
$
59,036
7
%
$
99,974
$
87,921
14 %
Net earnings
$
41,580
$
39,878
4
%
$
65,152
$
60,847
7
%
Diluted EPS
$
0.98
$
0.95
3
%
$
1.54
$
1.45
6
%

MANAGEMENT COMMENTS

"We generated further earnings growth in the second quarter this year as we achieved higher margins on the homes we delivered," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. "While demand is generally strong across most of our markets, we are experiencing particularly strong demand for homes built to meet the desires of entry-level home buyers, especially in Arizona and Texas where we have opened more of those communities, and we have significant opportunities to capitalize on healthy demand in the South as we improve our performance in that region.

"The success we’re having with entry-level homes validates our strategic emphasis on that market segment, and we have continued to invest aggressively to meet future demand in that segment as more of those buyers enter the market. We secured more than 4,000 additional lots in the second quarter, and almost 70% of those are in communities that will target entry-level buyers," explained Mr. Hilton.

"We have executed well on the strategic initiatives we laid out at the beginning of the year, growing our community count, improving our gross margins and managing our overhead expenses for greater earnings leverage. Our community count at mid-year was up 7% over June 30, 2016; our home closing gross margin improved 40 bps over last year’s second quarter and 150 bps sequentially over the first quarter this year; and we’ve improved our overhead leverage during the first two quarters, achieving our target of 10.5-11% in the second quarter this year," he continued.

"Housing market conditions remain healthy and Meritage is well-positioned in many of the best markets. We believe that demand for new homes will continue to be strong, and we are prepared to take advantage of it," Mr. Hilton concluded. "We are on track to deliver approximately 7,600-8,000 homes and generate estimated total closing revenue of $3.2-3.4 billion for the year. We anticipate pricing power in most markets will allow us to maintain gross margins consistent with 2016 while generating approximately $230-250 million in pre-tax earnings through a combination of cost management and operating leverage with our anticipated revenue growth."

SECOND QUARTER RESULTS

Net earnings of $41.6 million ($0.98 per diluted share) for the second quarter of 2017, compared to prior year net earnings of $39.9 million ($0.95 per diluted share), primarily reflect higher home closing gross margins and overhead leverage, partially offset by a higher effective tax rate. Earnings before income taxes increased 7% year-over-year.

Second quarter effective tax rate was 34% in 2017, compared to 32% in 2016. The lower rate in 2016 reflected the significant impact of energy tax credits captured on energy-efficient homes closed in 2016 and prior periods, which Congress has not extended for 2017, resulting in a higher assumed effective tax rate this year.

Home closing revenue was consistent with the prior year, as a 3% increase in average closing price offset a 2% decrease in home closings compared to the second quarter of 2016. The West and Central regions delivered year-over-year increases of 11% and 9% in home closing revenue, respectively, reflecting strong growth in Arizona and Texas. A 21% decline in East region home closing revenue reflected lower orders over the last three quarters as the region was going through a product library upgrade which delayed the openings of a number of communities.

Home closing gross margin was 17.7% for the second quarter of 2017, compared to 17.3% in the second quarter of 2016. The margin improvement reflects increases in home prices that generally offset increases in land and construction costs, as well as improved leverage of construction overhead expenses.

Selling, general and administrative expenses were 10.6% of home closing revenue, an improvement of 10 bps from 10.7% in the second quarter of 2016, and 120 bps lower than the first quarter of 2017, reflecting successful cost controls and overhead leverage.

Total orders for the second quarter increased 4% year-over-year due to strong demand in the West and Central regions. Orders increased 30% over the second quarter of 2016 in Texas, as a result of a 24% increase in average active communities during the quarter and a 5% increase in absorptions (orders per average active community). Orders increased 2% in the West on a 4% increase in absorptions that was mostly offset by a 3% decline in average community count. East region orders were down 13% compared to the prior year’s second quarter, primarily due to a 12% decline in absorptions.

Total active community count increased to 257 at June 30, 2017, from 241 at June 30, 2016, resulting in a 6% increase in average active communities during the second quarter.

Average sales prices (ASP) on orders for the company as a whole were flat year-over-year, with a 7% increase in the East region ASP, while Arizona and Texas ASP’s were 7% and 3% lower, respectively, compared to the prior year’s second quarter, reflecting a mix shift toward more entry-level and first-time buyer homes.

YEAR TO DATE RESULTS

Net earnings were $65.2 million for the first half of 2017, a 7% increase over $60.8 million for the first half of 2016, primarily driven by a 5% increase in home closing revenue.

Home closings for the first half of the year increased 1% over 2016 and average prices on closings rose 3%.

Home closing gross profit increased 3% to $248.2 million in the first half of 2017 compared to $241.1 million in the first half of 2016, as higher closing revenue was offset partially by a decline in home closing gross margins. While second quarter home closing gross margins improved year-over-year, first quarter gross margins were negatively impacted by up-front costs associated with opening new communities that contributed no revenue to offset those increased costs.

Total commissions and selling expenses declined 30 basis points to 7.1% of year-to-date 2017 home closing revenue from 7.4% in 2016, while general and administrative expenses declined 20 basis points to 4.0% of total closing revenue in the first half of 2017, compared to 4.2% in 2016.

The effective tax rate for the first half of 2017 was 35%, compared to 31% for the first half of 2016, due to the absence of energy tax credits in 2017, which the U.S. Congress has not extended.

BALANCE SHEET

Cash and cash equivalents at June 30, 2017, totaled $216.7 million, compared to $131.7 million at December 31, 2016, primarily reflecting proceeds from the issuance of $300 million in new senior notes on June 6, 2017. The proceeds were used to repay borrowings under the Company’s revolving credit facility and repurchase approximately $52 million of the Company’s 1.875% convertible senior notes, as well as investing in additional real estate inventory. A total of $278.6 million was invested in land and development during the second quarter of 2017 to meet current demand and position the company for future growth.

Meritage ended the second quarter of 2017 with approximately 33,500 total lots owned or under control, compared to approximately 28,900 total lots at June 30, 2016, as the company secured more than 4,000 new lots during the quarter. Approximately half of those additions were in Texas to meet strong demand. Approximately 70% of the newly controlled lots added during the quarter were in communities planned for entry-level or first-time buyers.

Debt-to-capital and net debt-to-capital ratios at June 30, 2017 were 47.6% and 43.3%, compared to 44.2% and 41.2%, respectively, at December 31, 2016, reflecting the increased investment of cash into homes and land under development, while remaining well within management’s target range for this key ratio.

The Company intends to issue a notice of redemption for the remaining 1.875% convertible senior notes due September 15, 2032, as of the first call date in September 2017, with available cash from the notes issued in June 2017.

CONFERENCE CALL

Management will host a conference call today to discuss the Company’s results at 10:30 a.m. Eastern Time (7:30 a.m. in Arizona). The call will be webcast with an accompanying slideshow available on the "Investor Relations" page of the Company’s web site at http://investors.meritagehomes.com. Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN.

Conference Call registration link: http://dpregister.com/10108854.

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

A replay of the call will be available beginning at approximately 12:30 p.m. ET on August 1, on the website noted above, or by dialing 877-344-7529, 1-412-317-0088 for international or 1-855-669-9658 for Canada, and referencing conference number 10108854. The replay will be available through until August 15, 2017.

Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Homebuilding:
Home closing revenue
$
797,780
$
795,845
$
1,458,397
$
1,391,462
Land closing revenue
4,198
2,051
16,353
4,200
Total closing revenue
801,978
797,896
1,474,750
1,395,662
Cost of home closings
(656,870
)
(658,099
)
(1,210,219
)
(1,150,369
)
Cost of land closings
(4,198
)
(1,693
)
(13,858
)
(3,393
)
Total cost of closings
(661,068
)
(659,792
)
(1,224,077
)
(1,153,762
)
Home closing gross profit
140,910
137,746
248,178
241,093
Land closing gross profit
--
358
2,495
807
Total closing gross profit
140,910
138,104
250,673
241,900
Financial Services:
Revenue
3,649
3,476
6,593
5,976
Expense
(1,551
)
(1,508
)
(2,930
)
(2,754
)
Earnings from financial services unconsolidated entities and other, net 3,459
3,795
6,184
6,587
Financial services profit
5,557
5,763
9,847
9,809
Commissions and other sales costs
(54,701
)
(56,379
)
(103,021
)
(102,556
)
General and administrative expenses
(29,591
)
(28,898
)
(59,213
)
(58,516
)
Earnings from other unconsolidated entities, net
570
573
943
416
Interest expense
(1,620
)
(1,672
)
(2,445
)
(4,960
)
Other income, net
2,080
1,545
3,190
1,828
Earnings before income taxes
63,205
59,036
99,974
87,921
Provision for income taxes
(21,625
)
(19,158
)
(34,822
)
(27,074
)
Net earnings
$
41,580
$
39,878
$
65,152
$
60,847
Earnings per share:
Basic
Earnings per share
$
1.03
$
1.00
$
1.62
$
1.52
Weighted average shares outstanding
40,317
40,012
40,248
39,926
Diluted
Earnings per share
$
0.98
$
0.95
$
1.54
$
1.45
Weighted average shares outstanding
42,781
42,533
42,836
42,477
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, 2017
December 31, 2016
Assets:
Cash and cash equivalents
$
216,739
$
131,702
Other receivables
73,109
70,355
Real estate
2,638,407
2,422,063
Real estate not owned
9,987
--
Deposits on real estate under option or contract
74,750
85,556
Investments in unconsolidated entities
16,678
17,097
Property and equipment, net
32,620
33,202
Deferred tax asset
55,290
53,320
Prepaids, other assets and goodwill
83,112
75,396
Total assets
$
3,200,692
$
2,888,691
Liabilities:
Accounts payable
$
139,957
$
140,682
Accrued liabilities
166,080
170,852
Home sale deposits
36,197
28,348
Liabilities related to real estate not owned
8,489
--
Loans payable and other borrowings
17,256
32,195
Senior and convertible senior notes, net
1,340,274
1,095,119
Total liabilities
1,708,253
1,467,196
Stockholders’ Equity:
Preferred stock
--
--
Common stock
403
400
Additional paid-in capital
578,295
572,506
Retained earnings
913,741
848,589
Total stockholders’ equity
1,492,439
1,421,495
Total liabilities and stockholders’ equity
$
3,200,692
$
2,888,691
Real estate - Allocated costs:
Homes under contract under construction
$
662,829
$
508,927
Unsold homes, completed and under construction
423,887
431,725
Model homes
146,602
147,406
Finished home sites and home sites under development
1,405,089
1,334,005
Total real estate
$
2,638,407
$
2,422,063
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands - unaudited):
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Depreciation and amortization
$
4,202
$
4,198
$
7,872
$
7,600
Summary of Capitalized Interest:
Capitalized interest, beginning of period
$
70,885
$
64,126
$
68,196
$
61,202
Interest incurred
19,280
17,713
37,175
35,272
Interest expensed
(1,620
)
(1,672
)
(2,445
)
(4,960
)
Interest amortized to cost of home and land closings (16,218
)
(15,485
)
(30,599
)
(26,832
)
Capitalized interest, end of period
$
72,327
$
64,682
$
72,327
$
64,682
June 30, 2017
December 31,
2016
Notes payable and other borrowings
$
1,357,530
$
1,127,314
Stockholders’ equity
1,492,439
1,421,495
Total capital
2,849,969
2,548,809
Debt-to-capital
47.6
%
44.2
%
Notes payable and other borrowings
$
1,357,530
$
1,127,314
Less: cash and cash equivalents
$
(216,739
)
$
(131,702
)
Net debt
1,140,791
995,612
Stockholders’ equity
1,492,439
1,421,495
Total net capital
$
2,633,230
$
2,417,107
Net debt-to-capital
43.3
%
41.2
%
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2017
2016
Cash flows from operating activities:
Net earnings
$
65,152
$
60,847
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization
7,872
7,600
Stock-based compensation
5,785
7,313
Excess income tax provision from stock-based awards
--
526
Equity in earnings from unconsolidated entities
(7,127
)
(7,003
)
Distribution of earnings from unconsolidated entities
6,712
7,343
Other
10
3,262
Changes in assets and liabilities:
Increase in real estate
(211,384
)
(193,981
)
Decrease/(increase) in deposits on real estate under option or contract
9,308
(3,551
)
Increase in other receivables, prepaids and other assets
(9,428
)
(9,368
)
(Decrease)/increase in accounts payable and accrued liabilities
(5,497
)
12,944
Increase in home sale deposits
7,849
3,449
Net cash used in operating activities
(130,748
)
(110,619
)
Cash flows from investing activities:
Investments in unconsolidated entities
(408
)
(159
)
Distributions of capital from unconsolidated entities
1,250
--
Purchases of property and equipment
(8,322
)
(7,570
)
Proceeds from sales of property and equipment
86
87
Maturities/sales of investments and securities
1,258
645
Payments to purchase investments and securities
(1,258
)
(645
)
Net cash used in investing activities
(7,394
)
(7,642
)
Cash flows from financing activities:
Repayment of Credit Facility, net
(15,000
)
--
Repayment of loans payable and other borrowings
(5,725
)
(15,482
)
Repurchase of senior subordinated notes
(52,098
)
--
Proceeds from issuance of senior notes
300,000
--
Payment of debt issuance costs
(3,998
)
--
Excess income tax provision from stock-based awards
--
(526
)
Proceeds from stock option exercises
--
232
Net cash provided by/(used in) financing activities
223,179
(15,776
)
Net increase/(decrease) in cash and cash equivalents
85,037
(134,037
)
Beginning cash and cash equivalents
131,702
262,208
Ending cash and cash equivalents
$
216,739
$
128,171
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
Three Months Ended June 30,
2017
2016
Homes
Value
Homes
Value
Homes Closed:
Arizona
419
$
141,015
279
$
94,048
California
231
140,270
280
156,058
Colorado
154
88,289
169
82,472
West Region
804
369,574
728
332,578
Texas
610
225,679
556
206,907
Central Region
610
225,679
556
206,907
Florida
187
82,448
257
103,342
Georgia
73
25,366
81
27,383
North Carolina
132
59,560
179
76,507
South Carolina
70
23,866
88
27,748
Tennessee
30
11,287
61
21,380
East Region
492
202,527
666
256,360
Total
1,906
$
797,780
1,950
$
795,845
Homes Ordered:
Arizona
397
$
129,870
331
$
115,812
California
274
162,597
289
165,931
Colorado
133
76,978
169
84,398
West Region
804
369,445
789
366,141
Texas
714
254,642
550
202,948
Central Region
714
254,642
550
202,948
Florida
283
120,951
267
106,913
Georgia
99
32,865
115
38,356
North Carolina
143
61,375
159
66,944
South Carolina
66
22,840
118
38,468
Tennessee
44
16,600
75
25,576
East Region
635
254,631
734
276,257
Total
2,153
$
878,718
2,073
$
845,346
Six Months Ended June 30,
2017
2016
Homes
Value
Homes
Value
Homes Closed:
Arizona
715
$
241,565
496
$
169,047
California
441
272,364
487
276,778
Colorado
282
155,649
307
147,799
West Region
1,438
669,578
1,290
593,624
Texas
1,105
400,388
1,021
366,878
Central Region
1,105
400,388
1,021
366,878
Florida
333
148,022
413
166,664
Georgia
128
45,841
146
49,397
North Carolina
263
116,467
297
126,884
South Carolina
143
49,921
155
48,919
Tennessee
77
28,180
116
39,096
East Region
944
388,431
1,127
430,960
Total
3,487
$
1,458,397
3,438
$
1,391,462
Homes Ordered:
Arizona
800
$
263,702
590
$
205,992
California
602
356,355
559
316,943
Colorado
276
159,073
338
171,024
West Region
1,678
779,130
1,487
693,959
Texas
1,407
506,415
1,141
419,013
Central Region
1,407
506,415
1,141
419,013
Florida
522
222,511
494
199,507
Georgia
168
55,267
220
73,551
North Carolina
293
127,707
348
144,025
South Carolina
138
48,378
225
72,689
Tennessee
82
32,013
145
47,202
East Region
1,203
485,876
1,432
536,974
Total
4,288
$
1,771,421
4,060
$
1,649,946
Order Backlog:
Arizona
529
$
183,480
411
$
154,851
California
392
237,629
361
224,311
Colorado
267
157,508
363
185,376
West Region
1,188
578,617
1,135
564,538
Texas
1,233
460,761
1,062
402,329
Central Region
1,233
460,761
1,062
402,329
Florida
442
190,943
368
150,849
Georgia
131
42,789
169
57,580
North Carolina
223
98,492
311
128,619
South Carolina
111
39,093
158
53,881
Tennessee
100
38,087
111
38,369
East Region
1,007
409,404
1,117
429,298
Total
3,428
$
1,448,782
3,314
$
1,396,165
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
Three Months Ended June 30,
2017
2016
Ending
Average Ending
Average
Active Communities:
Arizona
39
40.5
43
42.5
California
26
27.5
25
24.5
Colorado
10
10.0
12
13.0
West Region
75
78.0
80
80.0
Texas
92
88.5
73
71.5
Central Region
92
88.5
73
71.5
Florida
30
31.0
26
26.0
Georgia
19
18.0
17
17.5
North Carolina
20
19.0
22
23.0
South Carolina
14
14.5
16
16.0
Tennessee
7
7.5
7
8.0
East Region
90
90.0
88
90.5
Total
257
256.5
241
242.0
Six Months Ended June 30,
2017
2016
Ending
Average Ending
Average
Active Communities:
Arizona
39
40.5
43
42.0
California
26
27.0
25
24.5
Colorado
10
10.0
12
14.0
West Region
75
77.5
80
80.5
Texas
92
86.0
73
72.5
Central Region
92
86.0
73
72.5
Florida
30
28.5
26
28.5
Georgia
19
18.0
17
17.0
North Carolina
20
18.5
22
24.0
South Carolina
14
14.5
16
17.0
Tennessee
7
7.0
7
8.0
East Region
90
86.5
88
94.5
Total
257
250.0
241
247.5

About Meritage Homes Corporation

Meritage Homes is the eighth-largest public homebuilder in the United States, based on homes closed in 2016. Meritage Homes builds and sells single-family homes for entry-level, first-time, move-up, luxury and active adult buyers across the Western, Southern and Southeastern United States. Meritage Homes builds in markets including Sacramento, San Francisco Bay area, southern coastal and Inland Empire markets in California; Houston, Dallas-Ft. Worth, Austin and San Antonio, Texas; Phoenix/Scottsdale, Green Valley and Tucson, Arizona; Denver and Fort Collins, Colorado; Orlando, Tampa and south Florida; Raleigh and Charlotte, North Carolina; Greenville-Spartanburg and York County, South Carolina; Nashville, Tennessee; and Atlanta, Georgia.

Meritage Homes has designed and built over 100,000 homes in its 32-year history, and has a reputation for its distinctive style, quality construction, and positive customer experience. Meritage Homes 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.

This press release and the accompanying comments during our analyst call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include management’s expectations with respect to future growth, execution of strategic initiatives and projections with respect to the entry-level and first-time home buyer market, as well as projected home closings and home closing revenue, home closing gross margins and pre-tax earnings for the full year 2017.

Such statements are based upon the current beliefs and expectations of Company management, and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage’s business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company’s stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: the availability and cost of finished lots and undeveloped land; changes in interest rates and the availability and pricing of residential mortgages; the success of strategic initiatives; shortages in the availability and cost of labor; changes in tax laws that adversely impact us or our homebuyers; the ability of our potential buyers to sell their existing homes; cancellation rates; 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; 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; competition; construction defect and home warranty claims; failures in health and safety performance; our success in prevailing on contested tax positions; our ability to obtain performance bonds in connection with our development work; the loss of key personnel; enactment of new laws or regulations or our 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; our ability to successfully integrate acquired companies and achieve anticipated benefits from these acquisitions; our compliance with government regulations; the effect of legislative and other governmental actions, orders, policies or initiatives that impact housing, labor availability, construction, mortgage availability, our access to capital, the cost of capital or the economy in general, or other initiatives that seek to restrain growth of new housing construction or similar measures; legislation relating to energy and climate change; the replication of our energy-efficient technologies by our competitors; our exposure to information technology failures and security breaches; 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, 2016 and our subsequent Form 10-Q, under the caption "Risk Factors," which can be found on our website.

Contacts:
Brent Anderson, VP Investor Relations
(972) 580-6360 (office)
investors@meritagehomes.com

https://resource.globenewswire.com/Resource/Download/fb7761dd-5761-40f7-af48-ba5c4fbe721c?size=1

<img src="http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzY5MjEwMzk=" alt="" width="1" height="1"/>