Meritage Homes reports second quarter 2022 results including the achievement of its 300 community goal, a 55% increase in diluted EPS and a 430 bps increase in home closing gross margin over prior year
Meritage Homes Corporation (NYSE: MTH) reported strong second-quarter results for 2022, showcasing an 11% increase in home closing revenue to $1.4 billion, driven by a 13% rise in average sales price. Homes closed decreased by 2% to 3,221 units, while home orders surged by 6% to 3,767 units, reflecting a 21% increase in order value. Net earnings rose 49% to $250 million, with a diluted EPS of $6.77. The company achieved a record sales order volume and expanded its gross margin to 31.6%. Despite market softness and rising mortgage rates, Meritage remains positioned for growth with a solid backlog and effective cost management.
- 11% increase in home closing revenue to $1.4 billion.
- 6% growth in home orders to 3,767 units, with a 21% rise in order value.
- 49% increase in net earnings to $250 million.
- Diluted EPS rose 55% to $6.77.
- Achieved highest second-quarter sales order volume in company history.
- Gross margin expanded to 31.6%, up 430 bps year-over-year.
- 2% decline in home closings to 3,221 units.
- 20% decrease in average absorption pace from 5.5 to 4.4 homes per month.
- Market softening due to rising mortgage rates affecting affordability.
SCOTTSDALE, Ariz., July 27, 2022 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, reported second quarter results for the period ended June 30, 2022.
Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2022 | 2021 | % Chg | 2022 | 2021 | % Chg | |||||||||||||||||||
| Homes closed (units) | 3,221 | 3,273 | (2 | )% | 6,079 | 6,163 | (1 | )% | ||||||||||||||||
| Home closing revenue | $ | 1,408,947 | $ | 1,264,643 | 11 | % | $ | 2,654,403 | $ | 2,344,625 | 13 | % | ||||||||||||
| Average sales price - closings | $ | 437 | $ | 386 | 13 | % | $ | 437 | $ | 380 | 15 | % | ||||||||||||
| Home orders (units) | 3,767 | 3,542 | 6 | % | 7,641 | 7,000 | 9 | % | ||||||||||||||||
| Home order value | $ | 1,809,870 | $ | 1,499,672 | 21 | % | $ | 3,577,580 | $ | 2,848,802 | 26 | % | ||||||||||||
| Average sales price - orders | $ | 480 | $ | 423 | 13 | % | $ | 468 | $ | 407 | 15 | % | ||||||||||||
| Ending backlog (units) | 7,241 | 5,509 | 31 | % | ||||||||||||||||||||
| Ending backlog value | $ | 3,438,853 | $ | 2,317,534 | 48 | % | ||||||||||||||||||
| Average sales price - backlog | $ | 475 | $ | 421 | 13 | % | ||||||||||||||||||
| Earnings before income taxes | $ | 331,695 | $ | 215,651 | 54 | % | $ | 617,578 | $ | 381,628 | 62 | % | ||||||||||||
| Net earnings | $ | 250,084 | $ | 167,389 | 49 | % | $ | 467,338 | $ | 299,232 | 56 | % | ||||||||||||
| Diluted EPS | $ | 6.77 | $ | 4.36 | 55 | % | $ | 12.55 | $ | 7.80 | 61 | % | ||||||||||||
MANAGEMENT COMMENTS
“We proudly achieved our long-term goal of 300 communities this quarter, ending June 2022 with 303 communities. This milestone reflects the high level of execution and dedication of our Meritage team amidst longstanding supply chain constraints and delays stemming from COVID-19, and we believe, will position us to expand our market share from incremental order and closing volume,” said Steven J. Hilton, executive chairman of Meritage Homes. “Our agile operating model led to strong second quarter 2022 results, including our highest second quarter sales order volume in company history, a 430 bps year-over-year quarterly home closing gross margin expansion to
“We believe that the ongoing low supply of housing inventory and favorable demographics continue to reflect positive factors for housing demand. However, we acknowledge the market is softening from unprecedented demand levels of the last two years, as rapidly increasing mortgage rates in a short amount of time are challenging affordability and buyer psychology. In addition to concerns about the general economy, greater difficulty to qualify for a mortgage and the return of regular seasonality, we are seeing a high preference for quick move-in inventory that can close in 90 days or less, which is primarily found in the existing home market today. We believe this desire for readily available product is exacerbating cancellations and the slowing in new home demand, and will continue to do so for another quarter or two, until our newly-started spec inventory is also available for a quick move-in,” said Phillippe Lord, chief executive officer of Meritage Homes.
“In the second quarter of 2022, we lifted sales order metering in most of our communities. Quarterly sales orders of 3,767 homes were
“Our closings of 3,221 homes this quarter were just 52 shy of our highest second quarter of home closings, which occurred in 2021,” Mr. Lord remarked. “Our second quarter 2022 home closing revenue of
“During the quarter, we spent
Mr. Lord concluded, “Due to the lack of visibility into the market at this time, we are not providing full year 2022 guidance.”
SECOND QUARTER RESULTS
- The total sales orders of 3,767 for the second quarter of 2022 reflect an increase of
6% year-over-year, driven by a33% increase in average communities that was offset by a20% decrease in average absorption pace from 5.5 to 4.4 per month. The lower absorption pace reflects both seasonality and slowing market demand. Entry-level represented86% of second quarter 2022 orders, compared to81% in the same quarter in 2021. Average sales price ("ASP") on orders surpassed$480,000 in the second quarter of 2022, which was an increase of13% over the second quarter of 2021. - The
11% year-over-year increase in home closing revenue to$1.4 billion for the second quarter of 2022 was due to a13% increase in ASPs on closings even as we continued our shift of product mix toward entry-level homes. This was partially offset by2% lower home closing volume. - The 430 bps improvement in second quarter 2022 home closing gross margin to
31.6% from27.3% a year ago mainly resulted from higher ASPs on closings that were also better leveraging lower cost of land for entry-level homes and other fixed construction costs—all of which more than offset higher commodity costs. - Selling, general and administrative expenses ("SG&A") were
8.3% of second quarter 2022 home closing revenue, a 100 bps improvement over9.3% in the prior year. This improvement was due to greater leverage of fixed expenses on higher home closing revenue as well as lower commissions expense and the benefits of technology in our sales and marketing efforts. - In the second quarter of 2021, we recognized a loss on early extinguishment of debt of
$18.2 million in connection with the early redemption in April 2021 of our7.00% senior notes due 2022 ("2022 Notes"). There were no such transactions in the second quarter of 2022. - The second quarter effective income tax rate was
24.6% in 2022 compared to22.4% in 2021. The higher rate in 2022 reflects the expiration of the 2019 Taxpayer Certainty and Disaster Tax Relief Act, under which we earned eligible energy tax credits on qualifying homes closed in 2021. - Second quarter 2022 pre-tax margin increased 660 bps to
23.4% , compared to16.8% in the second quarter of 2021. Net earnings were$250.1 million ($6.77 per diluted share) for the second quarter of 2022, a49% increase over$167.4 million ($4.36 per diluted share) for the second quarter of 2021. Strong earnings growth reflected pricing power, expanded gross margin and improved overhead leverage, which combined with a lower outstanding share count in the current quarter, led to a55% year-over-year improvement in earnings per diluted share.
YEAR TO DATE RESULTS
- Total sales orders for the first half of 2022 increased
9% over the prior year, driven by a33% increase in average community count, partially offset by an18% decrease in average absorption pace compared to the first half of 2021. - Home closing revenue increased
13% in the first half of 2022 to$2.7 billion due to a15% increase in ASPs on closings given the favorable pricing environment on relatively flat home closing volume. - The 490 bps improvement for home closing gross margin in the first half of 2022 to
31.0% from26.1% was primarily due to higher ASPs on closings resulting from favorable pricing and better leveraging of fixed costs on higher home closing revenue. - SG&A expenses improved 110 bps year-over-year to
8.4% of home closing revenue, compared to9.5% in the first half of 2021, due to improved leverage of overhead expenses on higher home closing revenue as well as sales and marketing efficiencies gained from digital innovations. - In the first half of 2021, we recognized a loss on early extinguishment of debt of
$18.2 million in connection with the early redemption in April 2021 of the 2022 Notes. There were no such transactions in the first half of 2022. - The effective tax rate for the first half of 2022 was
24.3% , compared to21.6% for the first half of 2021. The higher rate in 2022 reflects the expiration of the tax credits available under the 2019 Taxpayer Certainty and Disaster Tax Relief Act. - Net earnings were
$467.3 million ($12.55 per diluted share) for the first half of 2022, a56% increase over$299.2 million ($7.80 per diluted share) for the first half of 2021, primarily reflecting pricing power, expanded gross margin and greater overhead leverage in 2022, as well as a lower outstanding share count in the first half of 2022.
BALANCE SHEET
- Cash and cash equivalents at June 30, 2022 totaled
$272.1 million , compared to$618.3 million at December 31, 2021, primarily as a result of investments in real estate and share repurchases. Real estate assets increased from$3.7 billion at December 31, 2021 to$4.5 billion at June 30, 2022. - A total of approximately 71,000 lots were owned or controlled as of June 30, 2022, compared to approximately 63,000 total lots at June 30, 2021. We added over 900 net new lots in the second quarter of 2022, representing an estimated 12 future communities, all of which are for entry-level homes.
- Debt-to-capital and net debt-to-capital ratios were
25.3% and20.6% , respectively, at June 30, 2022, which compared to27.6% and15.1% , respectively, at December 31, 2021. - The Company repurchased 1,166,040 shares of stock for a total of
$109.3 million during the first half of 2022, of which 128,073 shares totaling$10.0 million were repurchased during the second quarter of 2022. As of June 30, 2022,$244.1 million remained available to repurchase under our authorized share repurchase program.
CONFERENCE CALL
Management will host a conference call to discuss its second quarter results at 8:00 a.m. Pacific Daylight Time (11:00 a.m. Eastern Daylight Time) on Thursday, July 28, 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 July 28, 2022 and extending through August 11, 2022, at https://investors.meritagehomes.com.
Meritage Homes Corporation and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
(Unaudited)
| Three Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | Change $ | Change % | |||||||||||||
| Homebuilding: | ||||||||||||||||
| Home closing revenue | $ | 1,408,947 | $ | 1,264,643 | $ | 144,304 | 11 | % | ||||||||
| Land closing revenue | 3,434 | 12,956 | (9,522 | ) | (73 | )% | ||||||||||
| Total closing revenue | 1,412,381 | 1,277,599 | 134,782 | 11 | % | |||||||||||
| Cost of home closings | (964,208 | ) | (919,342 | ) | (44,866 | ) | 5 | % | ||||||||
| Cost of land closings | (2,784 | ) | (13,288 | ) | 10,504 | (79 | )% | |||||||||
| Total cost of closings | (966,992 | ) | (932,630 | ) | (34,362 | ) | 4 | % | ||||||||
| Home closing gross profit | 444,739 | 345,301 | 99,438 | 29 | % | |||||||||||
| Land closing gross profit/(loss) | 650 | (332 | ) | 982 | (296 | )% | ||||||||||
| Total closing gross profit | 445,389 | 344,969 | 100,420 | 29 | % | |||||||||||
| Financial Services: | ||||||||||||||||
| Revenue | 5,139 | 5,665 | (526 | ) | (9 | )% | ||||||||||
| Expense | (2,581 | ) | (2,367 | ) | (214 | ) | 9 | % | ||||||||
| Earnings from financial services unconsolidated entities and other, net | 1,521 | 1,317 | 204 | 15 | % | |||||||||||
| Financial services profit | 4,079 | 4,615 | (536 | ) | (12 | )% | ||||||||||
| Commissions and other sales costs | (69,383 | ) | (73,889 | ) | 4,506 | (6 | )% | |||||||||
| General and administrative expenses | (47,932 | ) | (43,156 | ) | (4,776 | ) | 11 | % | ||||||||
| Interest expense | — | (77 | ) | 77 | (100 | )% | ||||||||||
| Other (expense)/income, net | (458 | ) | 1,377 | (1,835 | ) | (133 | )% | |||||||||
| Loss on early extinguishment of debt | — | (18,188 | ) | 18,188 | (100 | )% | ||||||||||
| Earnings before income taxes | 331,695 | 215,651 | 116,044 | 54 | % | |||||||||||
| Provision for income taxes | (81,611 | ) | (48,262 | ) | (33,349 | ) | 69 | % | ||||||||
| Net earnings | $ | 250,084 | $ | 167,389 | $ | 82,695 | 49 | % | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||||
| Earnings per common share | $ | 6.82 | $ | 4.43 | $ | 2.39 | 54 | % | ||||||||
| Weighted average shares outstanding | 36,647 | 37,818 | (1,171 | ) | (3 | )% | ||||||||||
| Diluted | ||||||||||||||||
| Earnings per common share | $ | 6.77 | $ | 4.36 | $ | 2.41 | 55 | % | ||||||||
| Weighted average shares outstanding | 36,962 | 38,377 | (1,415 | ) | (4 | )% | ||||||||||
| Six Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | Change $ | Change % | |||||||||||||
| Homebuilding: | ||||||||||||||||
| Home closing revenue | $ | 2,654,403 | $ | 2,344,625 | $ | 309,778 | 13 | % | ||||||||
| Land closing revenue | 44,912 | 16,755 | 28,157 | 168 | % | |||||||||||
| Total closing revenue | 2,699,315 | 2,361,380 | 337,935 | 14 | % | |||||||||||
| Cost of home closings | (1,832,015 | ) | (1,732,669 | ) | (99,346 | ) | 6 | % | ||||||||
| Cost of land closings | (33,469 | ) | (16,540 | ) | (16,929 | ) | 102 | % | ||||||||
| Total cost of closings | (1,865,484 | ) | (1,749,209 | ) | (116,275 | ) | 7 | % | ||||||||
| Home closing gross profit | 822,388 | 611,956 | 210,432 | 34 | % | |||||||||||
| Land closing gross profit | 11,443 | 215 | 11,228 | 5222 | % | |||||||||||
| Total closing gross profit | 833,831 | 612,171 | 221,660 | 36 | % | |||||||||||
| Financial Services: | ||||||||||||||||
| Revenue | 9,811 | 10,416 | (605 | ) | (6 | )% | ||||||||||
| Expense | (5,093 | ) | (4,538 | ) | (555 | ) | 12 | % | ||||||||
| Earnings from financial services unconsolidated entities and other, net | 2,695 | 2,497 | 198 | 8 | % | |||||||||||
| Financial services profit | 7,413 | 8,375 | (962 | ) | (11 | )% | ||||||||||
| Commissions and other sales costs | (134,923 | ) | (141,633 | ) | 6,710 | (5 | )% | |||||||||
| General and administrative expenses | (87,927 | ) | (81,105 | ) | (6,822 | ) | 8 | % | ||||||||
| Interest expense | (41 | ) | (167 | ) | 126 | (75 | )% | |||||||||
| Other (expense)/income, net | (775 | ) | 2,175 | (2,950 | ) | (136 | )% | |||||||||
| Loss on early extinguishment of debt | — | (18,188 | ) | 18,188 | (100 | )% | ||||||||||
| Earnings before income taxes | 617,578 | 381,628 | 235,950 | 62 | % | |||||||||||
| Provision for income taxes | (150,240 | ) | (82,396 | ) | (67,844 | ) | 82 | % | ||||||||
| Net earnings | $ | 467,338 | $ | 299,232 | $ | 168,106 | 56 | % | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | Change $ or s hares | Change % | ||||||||||||||
| Earnings per common share | $ | 12.69 | $ | 7.93 | $ | 4.76 | 60 | % | ||||||||
| Weighted average shares outstanding | 36,820 | 37,731 | (911 | ) | (2 | )% | ||||||||||
| Diluted | ||||||||||||||||
| Earnings per common share | $ | 12.55 | $ | 7.80 | $ | 4.75 | 61 | % | ||||||||
| Weighted average shares outstanding | 37,239 | 38,357 | (1,118 | ) | (3 | )% | ||||||||||
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)
(Unaudited)
| June 30, 2022 | December 31, 2021 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 272,147 | $ | 618,335 | ||||
| Other receivables | 171,408 | 147,548 | ||||||
| Real estate (1) | 4,474,062 | 3,734,408 | ||||||
| Real estate not owned | 8,011 | 8,011 | ||||||
| Deposits on real estate under option or contract | 97,967 | 90,679 | ||||||
| Investments in unconsolidated entities | 11,223 | 5,764 | ||||||
| Property and equipment, net | 39,030 | 37,340 | ||||||
| Deferred tax asset, net | 41,271 | 40,672 | ||||||
| Prepaids, other assets and goodwill | 192,604 | 124,776 | ||||||
| Total assets | $ | 5,307,723 | $ | 4,807,533 | ||||
| Liabilities: | ||||||||
| Accounts payable | $ | 341,717 | $ | 216,009 | ||||
| Accrued liabilities | 326,856 | 337,277 | ||||||
| Home sale deposits | 60,820 | 42,610 | ||||||
| Liabilities related to real estate not owned | 7,210 | 7,210 | ||||||
| Loans payable and other borrowings | 15,613 | 17,552 | ||||||
| Senior notes, net | 1,143,038 | 1,142,486 | ||||||
| Total liabilities | 1,895,254 | 1,763,144 | ||||||
| Stockholders' Equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 366 | 373 | ||||||
| Additional paid-in capital | 315,590 | 414,841 | ||||||
| Retained earnings | 3,096,513 | 2,629,175 | ||||||
| Total stockholders’ equity | 3,412,469 | 3,044,389 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,307,723 | $ | 4,807,533 | ||||
| (1) Real estate – Allocated costs: | ||||||||
| Homes under contract under construction | $ | 1,527,013 | $ | 1,039,822 | ||||
| Unsold homes, completed and under construction | $ | 748,845 | 484,999 | |||||
| Model homes | $ | 89,539 | 81,049 | |||||
| Finished home sites and home sites under development | $ | 2,108,665 | 2,128,538 | |||||
| Total real estate | $ | 4,474,062 | $ | 3,734,408 | ||||
Supplemental Information and Non-GAAP Financial Disclosures (Dollars in thousands – unaudited):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Depreciation and amortization | $ | 5,964 | $ | 6,879 | $ | 11,723 | $ | 13,414 | ||||||||
| Summary of Capitalized Interest: | ||||||||||||||||
| Capitalized interest, beginning of period | $ | 59,082 | $ | 57,540 | $ | 56,253 | $ | 58,940 | ||||||||
| Interest incurred | 15,171 | 16,321 | 30,384 | 32,413 | ||||||||||||
| Interest expensed | — | (77 | ) | (41 | ) | (167 | ) | |||||||||
| Interest amortized to cost of home and land closings | (12,794 | ) | (17,074 | ) | (25,137 | ) | (34,476 | ) | ||||||||
| Capitalized interest, end of period | $ | 61,459 | $ | 56,710 | $ | 61,459 | $ | 56,710 | ||||||||
| June 30, 2022 | December 31, 2021 | ||||||||
| Senior notes, net, loans payable and other borrowings | $ | 1,158,651 | $ | 1,160,038 | |||||
| Stockholders' equity | 3,412,469 | 3,044,389 | |||||||
| Total capital | $ | 4,571,120 | $ | 4,204,427 | |||||
| Debt-to-capital | 25.3 | % | 27.6 | % | |||||
| Senior notes, net, loans payable and other borrowings | $ | 1,158,651 | $ | 1,160,038 | |||||
| Less: cash and cash equivalents | (272,147 | ) | (618,335 | ) | |||||
| Net debt | $ | 886,504 | $ | 541,703 | |||||
| Stockholders’ equity | 3,412,469 | 3,044,389 | |||||||
| Total net capital | $ | 4,298,973 | $ | 3,586,092 | |||||
| Net debt-to-capital | 20.6 | % | 15.1 | % | |||||
Meritage Homes Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 467,338 | $ | 299,232 | ||||
| Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 11,723 | 13,414 | ||||||
| Stock-based compensation | 10,045 | 8,590 | ||||||
| Loss on early extinguishment of debt | — | 18,188 | ||||||
| Equity in earnings from unconsolidated entities | (2,145 | ) | (1,807 | ) | ||||
| Distribution of earnings from unconsolidated entities | 2,339 | 2,215 | ||||||
| Other | (601 | ) | 2,266 | |||||
| Changes in assets and liabilities: | ||||||||
| Increase in real estate | (729,450 | ) | (469,733 | ) | ||||
| Increase in deposits on real estate under option or contract | (7,288 | ) | (14,863 | ) | ||||
| Increase in other receivables, prepaids and other assets | (90,419 | ) | (36,390 | ) | ||||
| Increase in accounts payable and accrued liabilities | 113,421 | 26,532 | ||||||
| Increase in home sale deposits | 18,210 | 8,884 | ||||||
| Net cash used in operating activities | (206,827 | ) | (143,472 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Investments in unconsolidated entities | (5,653 | ) | (1 | ) | ||||
| Purchases of property and equipment | (12,852 | ) | (10,970 | ) | ||||
| Proceeds from sales of property and equipment | 247 | 292 | ||||||
| Maturities/sales of investments and securities | 1,032 | 2,697 | ||||||
| Payments to purchase investments and securities | (1,032 | ) | (2,697 | ) | ||||
| Net cash used in investing activities | (18,258 | ) | (10,679 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayment of loans payable and other borrowings | (11,800 | ) | (5,758 | ) | ||||
| 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 | ) | (27,546 | ) | ||||
| Net cash (used in)/provided by financing activities | (121,103 | ) | 92,904 | |||||
| Net decrease in cash and cash equivalents | (346,188 | ) | (61,247 | ) | ||||
| Cash and cash equivalents, beginning of period | 618,335 | 745,621 | ||||||
| Cash and cash equivalents, end of period | $ | 272,147 | $ | 684,374 | ||||
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
| Three Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Homes | Value | Homes | Value | |||||||||||||
| Homes Closed: | ||||||||||||||||
| Arizona | 542 | $ | 234,902 | 481 | $ | 165,990 | ||||||||||
| California | 256 | 173,631 | 318 | 198,232 | ||||||||||||
| Colorado | 127 | 77,545 | 145 | 74,987 | ||||||||||||
| West Region | 925 | 486,078 | 944 | 439,209 | ||||||||||||
| Texas | 1,048 | 422,327 | 1,154 | 403,838 | ||||||||||||
| Central Region | 1,048 | 422,327 | 1,154 | 403,838 | ||||||||||||
| Florida | 437 | 169,607 | 443 | 160,377 | ||||||||||||
| Georgia | 179 | 81,227 | 171 | 62,477 | ||||||||||||
| North Carolina | 359 | 148,860 | 330 | 119,838 | ||||||||||||
| South Carolina | 132 | 44,365 | 81 | 28,209 | ||||||||||||
| Tennessee | 141 | 56,483 | 150 | 50,695 | ||||||||||||
| East Region | 1,248 | 500,542 | 1,175 | 421,596 | ||||||||||||
| Total | 3,221 | $ | 1,408,947 | 3,273 | $ | 1,264,643 | ||||||||||
| Homes Ordered: | ||||||||||||||||
| Arizona | 560 | $ | 257,162 | 624 | $ | 256,804 | ||||||||||
| California | 355 | 272,601 | 344 | 217,228 | ||||||||||||
| Colorado | 160 | 102,464 | 181 | 104,134 | ||||||||||||
| West Region | 1,075 | 632,227 | 1,149 | 578,166 | ||||||||||||
| Texas | 1,096 | 491,394 | 1,101 | 428,375 | ||||||||||||
| Central Region | 1,096 | 491,394 | 1,101 | 428,375 | ||||||||||||
| Florida | 685 | 283,291 | 468 | 176,118 | ||||||||||||
| Georgia | 225 | 107,388 | 193 | 77,309 | ||||||||||||
| North Carolina | 391 | 178,463 | 390 | 153,032 | ||||||||||||
| South Carolina | 144 | 50,716 | 88 | 32,595 | ||||||||||||
| Tennessee | 151 | 66,391 | 153 | 54,077 | ||||||||||||
| East Regions | 1,596 | 686,249 | 1,292 | 493,131 | ||||||||||||
| Total | 3,767 | $ | 1,809,870 | 3,542 | $ | 1,499,672 | ||||||||||
| Six Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Homes | Value | Homes | Value | |||||||||||||
| Homes Closed: | ||||||||||||||||
| Arizona | 1,000 | $ | 432,997 | 891 | $ | 303,258 | ||||||||||
| California | 531 | 361,041 | 595 | 370,131 | ||||||||||||
| Colorado | 258 | 155,464 | 320 | 159,250 | ||||||||||||
| West Region | 1,789 | 949,502 | 1,806 | 832,639 | ||||||||||||
| Texas | 1,921 | 770,155 | 2,117 | 722,223 | ||||||||||||
| Central Region | 1,921 | 770,155 | 2,117 | 722,223 | ||||||||||||
| Florida | 875 | 337,682 | 860 | 301,205 | ||||||||||||
| Georgia | 306 | 137,661 | 317 | 117,616 | ||||||||||||
| North Carolina | 656 | 267,864 | 629 | 226,851 | ||||||||||||
| South Carolina | 253 | 84,078 | 166 | 56,055 | ||||||||||||
| Tennessee | 279 | 107,461 | 268 | 88,036 | ||||||||||||
| East Region | 2,369 | 934,746 | 2,240 | 789,763 | ||||||||||||
| Total | 6,079 | $ | 2,654,403 | 6,163 | $ | 2,344,625 | ||||||||||
| Homes Ordered: | ||||||||||||||||
| Arizona | 1,110 | $ | 497,169 | 1,226 | $ | 479,239 | ||||||||||
| California | 701 | 519,944 | 630 | 390,619 | ||||||||||||
| Colorado | 369 | 228,463 | 350 | 193,913 | ||||||||||||
| West Region | 2,180 | 1,245,576 | 2,206 | 1,063,771 | ||||||||||||
| Texas | 2,392 | 1,039,961 | 2,216 | 820,343 | ||||||||||||
| Central Region | 2,392 | 1,039,961 | 2,216 | 820,343 | ||||||||||||
| Florida | 1,257 | 510,205 | 947 | 355,227 | ||||||||||||
| Georgia | 445 | 208,279 | 357 | 138,866 | ||||||||||||
| North Carolina | 764 | 341,471 | 809 | 310,719 | ||||||||||||
| South Carolina | 298 | 103,372 | 164 | 58,997 | ||||||||||||
| Tennessee | 305 | 128,716 | 301 | 100,879 | ||||||||||||
| East Region | 3,069 | 1,292,043 | 2,578 | 964,688 | ||||||||||||
| Total | 7,641 | $ | 3,577,580 | 7,000 | $ | 2,848,802 | ||||||||||
| Order Backlog: | ||||||||||||||||
| Arizona | 1,255 | $ | 557,742 | 1,328 | $ | 520,034 | ||||||||||
| California | 563 | 430,202 | 479 | 295,198 | ||||||||||||
| Colorado | 439 | 271,827 | 238 | 139,437 | ||||||||||||
| West Region | 2,257 | 1,259,771 | 2,045 | 954,669 | ||||||||||||
| Texas | 2,349 | 1,042,689 | 1,729 | 670,583 | ||||||||||||
| Central Region | 2,349 | 1,042,689 | 1,729 | 670,583 | ||||||||||||
| Florida | 1,250 | 524,940 | 637 | 268,971 | ||||||||||||
| Georgia | 342 | 162,204 | 196 | 79,207 | ||||||||||||
| North Carolina | 673 | 299,352 | 634 | 247,292 | ||||||||||||
| South Carolina | 178 | 64,015 | 118 | 44,175 | ||||||||||||
| Tennessee | 192 | 85,882 | 150 | 52,637 | ||||||||||||
| East Region | 2,635 | 1,136,393 | 1,735 | 692,282 | ||||||||||||
| Total | 7,241 | $ | 3,438,853 | 5,509 | $ | 2,317,534 | ||||||||||
Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)
| Three Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Ending | Average | Ending | Average | |||||||||||||
| Active Communities: | ||||||||||||||||
| Arizona | 56 | 48.0 | 38 | 35.5 | ||||||||||||
| California | 32 | 27.5 | 20 | 19.5 | ||||||||||||
| Colorado | 19 | 18.5 | 17 | 14.5 | ||||||||||||
| West Region | 107 | 94.0 | 75 | 69.5 | ||||||||||||
| Texas | 80 | 77.5 | 64 | 61.5 | ||||||||||||
| Central Region | 80 | 77.5 | 64 | 61.5 | ||||||||||||
| Florida | 41 | 41.0 | 34 | 32.0 | ||||||||||||
| Georgia | 14 | 14.5 | 10 | 11.0 | ||||||||||||
| North Carolina | 32 | 30.5 | 26 | 25.0 | ||||||||||||
| South Carolina | 17 | 15.0 | 7 | 6.5 | ||||||||||||
| Tennessee | 12 | 13.0 | 10 | 9.0 | ||||||||||||
| East Region | 116 | 114.0 | 87 | 83.5 | ||||||||||||
| Total | 303 | 285.5 | 226 | 214.5 | ||||||||||||
| Six Months Ended June 30, | ||||||||||||||||
| 2022 | 2021 | |||||||||||||||
| Ending | Average | Ending | Average | |||||||||||||
| Active Communities: | ||||||||||||||||
| Arizona | 56 | 45.0 | 38 | 34.6 | ||||||||||||
| California | 32 | 25.7 | 20 | 18.3 | ||||||||||||
| Colorado | 19 | 18.0 | 17 | 13.3 | ||||||||||||
| West Region | 107 | 88.7 | 75 | 66.2 | ||||||||||||
| Texas | 80 | 76.1 | 64 | 62.0 | ||||||||||||
| Central Region | 80 | 76.1 | 64 | 62.0 | ||||||||||||
| Florida | 41 | 41.0 | 34 | 31.6 | ||||||||||||
| Georgia | 14 | 14.7 | 10 | 9.7 | ||||||||||||
| North Carolina | 32 | 29.0 | 26 | 23.7 | ||||||||||||
| South Carolina | 17 | 14.7 | 7 | 6.3 | ||||||||||||
| Tennessee | 12 | 12.7 | 10 | 8.3 | ||||||||||||
| East Region | 116 | 112.1 | 87 | 79.6 | ||||||||||||
| Total | 303 | 276.9 | 226 | 207.8 | ||||||||||||
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 homes that are designed with a focus on entry-level and first move-up buyers. Operations span across Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee and Utah.
Meritage Homes has delivered over 155,000 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; our spec inventory levels; and expectations about our future results, including our liquidity and market 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 and the availability and pricing of residential mortgages; 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 March 31, 2022 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.
| Contacts: | Emily Tadano, VP of Investor Relations and ESG | ||
| (480) 515-8979 (office) | |||
| investors@meritagehomes.com |
FAQ
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