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Meritage Homes Corporation Message Board

  • hb_shorty2008 hb_shorty2008 Apr 28, 2008 6:56 PM Flag

    On Books as $100,000 / Lot Value?

    It doesn't look like MTH is writing down anything but completed homes (no lot or land impairments)

    Someone tell me if this rough estimate of lot value on books is right:

    Avg delivery price of $247K x 768 spec homes in inventory = $190MM

    Total real estate assets = $1.19MM

    Total lots controlled = 25,000,
    thus 40% of lots owned = 10,000

    (Total RE - specs) / lots
    ($1.17MM - $.19MM) / 10,000 = $100,000

    However gross margin is only 12% of $247K or $30K. thus even if they build out all their lots and don't sell the raw land they should value lots at 30% of what they're booked at on their B/S.

    Any feedback appreciated. Thanks!

34.55+0.19(+0.55%)3:15 PMEDT