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Meritage Homes reports third quarter 2019 results including a 24% increase in orders, 19.8% home closing gross margin and 35% increase in diluted EPS

SCOTTSDALE, Ariz., Oct. 22, 2019 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (MTH), a leading U.S. homebuilder, reported third quarter results for the period ended September 30, 2019.

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

    Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018   % Chg   2019   2018   % Chg
Homes closed (units)   2,419     2,162     12 %   6,437     6,026     7 %
Home closing revenue   $ 939,185     $ 877,734     7 %   $ 2,500,888     $ 2,478,649     1 %
Average sales price - closings   $ 388     $ 406     (4 )%   $ 389     $ 411     (6 )%
Home orders (units)   2,258     1,828     24 %   7,523     6,436     17 %
Home order value   $ 858,395     $ 715,089     20 %   $ 2,879,369     $ 2,595,881     11 %
Average sales price - orders   $ 380     $ 391     (3 )%   $ 383     $ 403     (5 )%
Ending backlog (units)               3,519     3,285     7 %
Ending backlog value               $ 1,397,033     $ 1,367,006     2 %
Average sales price - backlog               $ 397     $ 416     (5 )%
Earnings before income taxes   $ 92,366     $ 71,409     29 %   $ 192,410     $ 191,478     %
Net earnings   $ 69,809     $ 54,135     29 %   $ 146,049     $ 151,847     (4 )%
Diluted EPS   $ 1.79     $ 1.33     35 %   $ 3.76     $ 3.69     2 %

MANAGEMENT COMMENTS

“Our results for the third quarter demonstrated continued strong demand for our homes, as well as the impact of operating efficiencies that are enabling us to improve our margins while selling homes at affordable prices," said Steven J. Hilton, chairman and chief executive officer of Meritage Homes. “Our total orders for new homes increased 24% year-over-year in the third quarter, as a result of higher absorptions on slightly lower community count.

“We’re clearly in the sweet spot of the market with our LiVE.NOW.® homes for value-conscious buyers,” he explained. “Those homes are selling at a significantly higher pace than move-up homes and made up 54% of our third quarter orders, compared to 43% a year ago.

“In addition to our success with LiVE.NOW. in the entry-level market, our first move-up business is also doing well. We have nearly completed the roll-out of our new Studio M design centers, which have been very well received by our move-up buyers," he continued. “The new studios are benefiting both our margins and overhead leverage by providing additional revenue at a reduced cost due to streamlining and simplifying our operations. The combination of revenue growth and improved operating margin drove a 29% increase in our net earnings for the third quarter.”

Mr. Hilton concluded, “We are confident in our strategy and execution, and are encouraged by healthy employment levels in the U.S., growing household incomes and low interest rates, which are allowing more people to own their own homes. Based on our results in the first three quarters of 2019, we are projecting 8,900-9,100 total home closings for the year, generating approximately $3.5 billion of total home closing revenue with home closing gross margin in the mid to high-18's percent range for the year, which should translate to approximately $5.50-5.70 in diluted earnings per share.”

THIRD QUARTER RESULTS

  • Total orders for the third quarter of 2019 increased 24% year-over-year, driven by a 27% year-over-year increase in absorptions, primarily due to higher demand for Meritage’s entry-level priced LiVE.NOW. product.  Absorptions were up 29% in the West, 26% in the Central and 23% in the East region, demonstrating broad strength across all regions. As a result of the Company's strategic product shift, average sales price (ASP) on orders was 3% lower year-over-year.

  • Net earnings was $69.8 million ($1.79 per diluted share) for the third quarter of 2019, compared to $54.1 million ($1.33 per diluted share) for the third quarter of 2018. The 35% increase in diluted EPS reflected the combination of increases in home closing revenue, gross margins and greater overhead leverage, in addition to a 4% reduction in diluted shares after share repurchases in the fourth quarter of 2018 and first quarter of 2019. Third quarter 2019 pre-tax earnings increased 180 bps to 9.8% compared to 8.0% in 2018.

  • The 7% increase in home closing revenue for the quarter reflected a 12% increase in home closing volume, which was partially offset by a 4% reduction in ASP due to the shift in product mix, compared to the third quarter of 2018. The East region led with home closing revenue up 15% year-over-year, followed by a 9% increase in the Central region, while closing revenue in the West was flat.

  • Home closing gross margin improved 170 bps to 19.8% from 18.1% a year ago, contributing to a 17% increase in total home closing gross profit over the prior year's third quarter. Third quarter 2018 gross margin was reduced by 30 bps due to a $2.6 million impairment from exiting a move-up community that was no longer aligned with the company's strategy.

  • Selling, general and administrative expenses (SG&A) totaled 10.7% of third quarter 2019 home closing revenue, compared to 11.0% in the third quarter of 2018.

  • Interest expense increased $1.0 million year-over-year, as less interest was capitalizable to assets under development due to shortened construction cycles and higher inventory turnover.

YEAR TO DATE RESULTS

  • Net earnings for the first nine months of 2019 was $146.0 million, compared to $151.8 million in 2018. Increases in home closing revenue and gross margin year-to-date in 2019 were offset by higher interest expense and lower other income than the prior year, which benefited from a favorable legal settlement, as well as a lower effective tax rate in 2018.

  • Home closings for the first nine months of the year were up 7% over 2018, while average prices on closings were down 6% from the previous year due to the product mix shift toward more affordable homes, resulting in a 1% increase in total home closing revenue.

  • Home closing gross margin increased to 18.5% for the first three-quarters of 2019 over 17.8% in the same period last year, driving a 4% increase in total home closing gross profit for the first nine months of 2019.

  • SG&A expenses as a percentage of home closing revenue year-to-date were 11.3% in 2019, compared to 11.1% in 2018, reflecting higher brokerage commissions, severance expenses and equity compensation expense accelerated into the first quarter of 2019 as a result of changes in tax rules.

  • Interest expense increased $8.1 million year-over-year, primarily due to less interest capitalized to assets under development from faster construction cycle times.

  • Other income (net) decreased by $4.1 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 nine months of 2019 was 24%, compared to 21% for the first nine months 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 September 30, 2019 totaled $454.8 million, compared to $311.5 million at December 31, 2018, reflecting positive cash flow from operations. Real estate assets grew $111.3 million year-to-date to approximately $2.9 billion at September 30, 2019 to support further growth.

  • Meritage ended the third quarter of 2019 with 37,300 total lots owned or under control, compared to approximately 34,400 total lots at September 30, 2018. Approximately 81% of the lots added year-to-date 2019 were in LiVE.NOW. communities for entry-level homes.

  • Debt-to-capital ratios decreased to 41.1% at September 30, 2019 from 43.2% at December 31, 2018, with further improvement year-to-date in the net debt-to-capital ratio of 31.3% from 36.7% at year-end 2018.

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 Wednesday, October 23. 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/10134822.

Telephone participants who are unable to pre-register may dial into 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 October 23 and extending through November 6, 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 10134822.


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

    Three Months Ended September 30,
    2019   2018   Change $   Change %
Homebuilding:              
  Home closing revenue $ 939,185     $ 877,734     $ 61,451     7 %
  Land closing revenue 1,695     6,847     (5,152 )   (75 )%
  Total closing revenue 940,880     884,581     56,299     6 %
  Cost of home closings (753,068 )   (719,142 )   33,926     5 %
  Cost of land closings (1,721 )   (6,922 )   (5,201 )   (75 )%
  Total cost of closings (754,789 )   (726,064 )   28,725     4 %
  Home closing gross profit 186,117     158,592     27,525     17 %
  Land closing gross loss (26 )   (75 )   49     65 %
  Total closing gross profit 186,091     158,517     27,574     17 %
Financial Services:              
  Revenue 4,317     3,832     485     13 %
  Expense (1,725 )   (1,659 )   66     4 %
  Earnings from financial services unconsolidated entities and other, net 2,990     4,148     (1,158 )   (28 )%
  Financial services profit 5,582     6,321     (739 )   (12 )%
Commissions and other sales costs (63,450 )   (60,282 )   3,168     5 %
General and administrative expenses (37,191 )   (35,906 )   1,285     4 %
Interest expense (1,068 )   (53 )   1,015     n/m  
Other income, net 2,402     2,812     (410 )   (15 )%
Earnings before income taxes 92,366     71,409     20,957     29 %
Provision for income taxes (22,557 )   (17,274 )   5,283     31 %
Net earnings $ 69,809     $ 54,135     $ 15,674     29 %
               
Earnings per common share:              
  Basic         Change $ or shares   Change %
  Earnings per common share $ 1.82     $ 1.34     $ 0.48     36 %
  Weighted average shares outstanding 38,296     40,283     (1,987 )   (5 )%
  Diluted              
  Earnings per common share $ 1.79     $ 1.33     $ 0.46     35 %
  Weighted average shares outstanding 39,079     40,855     (1,776 )   (4 )%


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

    Nine Months Ended September 30,
    2019   2018   Change $   Change %
Homebuilding:              
  Home closing revenue $ 2,500,888     $ 2,478,649     $ 22,239     1 %
  Land closing revenue 12,747     25,991     (13,244 )   (51 )%
  Total closing revenue 2,513,635     2,504,640     8,995     %
  Cost of home closings (2,039,191 )   (2,036,212 )   2,979     %
  Cost of land closings (14,149 )   (27,963 )   (13,814 )   (49 )%
  Total cost of closings (2,053,340 )   (2,064,175 )   (10,835 )   (1 )%
  Home closing gross profit 461,697     442,437     19,260     4 %
  Land closing gross loss (1,402 )   (1,972 )   570     29 %
  Total closing gross profit 460,295     440,465     19,830     5 %
Financial Services:              
  Revenue 11,705     10,750     955     9 %
  Expense (4,949 )   (4,836 )   113     2 %
  Earnings from financial services unconsolidated entities and other, net 9,559     10,278     (719 )   (7 )%
  Financial services profit 16,315     16,192     123     1 %
Commissions and other sales costs (176,130 )   (173,857 )   2,273     1 %
General and administrative expenses (105,536 )   (101,004 )   4,532     4 %
Interest expense (8,350 )   (233 )   8,117     n/m
Other income, net 5,816     9,915     (4,099 )   (41 )%
Earnings before income taxes 192,410     191,478     932     %
Provision for income taxes (46,361 )   (39,631 )   6,730     17 %
Net earnings $ 146,049     $ 151,847     $ (5,798 )   (4 )%
               
Earnings per common share:              
  Basic         Change $ or shares   Change %
  Earnings per common share $ 3.83     $ 3.75     $ 0.08     2 %
  Weighted average shares outstanding 38,119     40,472     (2,353 )   (6 )%
  Diluted              
  Earnings per common share $ 3.76     $ 3.69     $ 0.07     2 %
  Weighted average shares outstanding 38,841     41,100     (2,259 )   (5 )%


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

    September 30, 2019   December 31, 2018
Assets:        
Cash and cash equivalents   $ 454,812     $ 311,466  
Other receivables   85,962     77,285  
Real estate (1)   2,853,933     2,742,621  
Deposits on real estate under option or contract   45,643     51,410  
Investments in unconsolidated entities   7,908     17,480  
Property and equipment, net   53,111     54,596  
Deferred tax asset   25,656     26,465  
Prepaids, other assets and goodwill   108,010     84,156  
Total assets   $ 3,635,035     $ 3,365,479  
Liabilities:        
Accounts payable   $ 180,069     $ 128,169  
Accrued liabilities   240,102     177,862  
Home sale deposits   31,444     28,636  
Loans payable and other borrowings   13,992     14,773  
Senior notes, net   1,295,862     1,295,284  
Total liabilities   1,761,469     1,644,724  
Stockholders' Equity:        
Preferred stock        
Common stock   383     381  
Additional paid-in capital   508,541     501,781  
Retained earnings   1,364,642     1,218,593  
Total stockholders’ equity   1,873,566     1,720,755  
Total liabilities and stockholders’ equity   $ 3,635,035     $ 3,365,479  
         
(1) Real estate – Allocated costs:        
Homes under contract under construction   $ 712,288     $ 480,143  
Unsold homes, completed and under construction   661,393     644,717  
Model homes   126,925     146,327  
Finished home sites and home sites under development   1,353,327     1,471,434  
Total real estate   $ 2,853,933     $ 2,742,621  


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

  Three Months Ended September 30,   Nine Months Ended September 30,
  2019   2018   2019   2018
Depreciation and amortization $ 7,172     $ 6,850     $ 19,553     $ 19,458  
               
Summary of Capitalized Interest:              
Capitalized interest, beginning of period $ 88,307     $ 84,443     $ 88,454     $ 78,564  
Interest incurred 21,319     21,545     64,227     63,788  
Interest expensed (1,068 )   (53 )   (8,350 )   (233 )
Interest amortized to cost of home and land closings (20,363 )   (17,871 )   (56,136 )   (54,055 )
Capitalized interest, end of period $ 88,195     $ 88,064     $ 88,195     $ 88,064  
               
  September 30, 2019   December 31, 2018        
Notes payable and other borrowings $ 1,309,854     $ 1,310,057          
Stockholders' equity 1,873,566     1,720,755          
Total capital $ 3,183,420     $ 3,030,812          
Debt-to-capital 41.1 %   43.2 %        
               
Notes payable and other borrowings $ 1,309,854     $ 1,310,057          
Less: cash and cash equivalents (454,812 )   (311,466 )        
Net debt $ 855,042     $ 998,591          
Stockholders’ equity 1,873,566     1,720,755          
Total net capital $ 2,728,608     $ 2,719,346          
Net debt-to-capital 31.3 %   36.7 %        


Meritage Homes Corporation and Subsidiaries

Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

    Nine Months Ended September 30,
    2019   2018
Cash flows from operating activities:        
Net earnings   $ 146,049     $ 151,847  
Adjustments to reconcile net earnings to net cash provided by operating activities:        
Depreciation and amortization   19,553     19,458  
Stock-based compensation   15,719     13,737  
Equity in earnings from unconsolidated entities   (8,934 )   (11,160 )
Distribution of earnings from unconsolidated entities   11,261     11,898  
Other   3,902     2,197  
Changes in assets and liabilities:        
(Increase) in real estate   (110,295 )   (161,816 )
Decrease in deposits on real estate under option or contract   5,773     10,080  
(Increase)/decrease in other receivables, prepaids and other assets   (3,108 )   1,686  
Increase in accounts payable and accrued liabilities   84,632     35,625  
Increase in home sale deposits   2,808     100  
Net cash provided by operating activities   167,360     73,652  
Cash flows from investing activities:        
Investments in unconsolidated entities   (1,112 )   (551 )
Distributions of capital from unconsolidated entities   7,250     597  
Purchases of property and equipment   (18,376 )   (23,754 )
Proceeds from sales of property and equipment   267     107  
Maturities/sales of investments and securities   675     1,065  
Payments to purchase investments and securities   (675 )   (1,065 )
Net cash used in investing activities   (11,971 )   (23,601 )
Cash flows from financing activities:        
Repayment of loans payable and other borrowings   (3,086 )   (13,484 )
Repayment of senior notes       (175,000 )
Proceeds from issuance of senior notes       206,000  
Payment of debt issuance costs       (3,198 )
Repurchase of shares   (8,957 )   (29,353 )
Net cash used in financing activities   (12,043 )   (15,035 )
Net increase in cash and cash equivalents   143,346     35,016  
Beginning cash and cash equivalents   311,466     170,746  
Ending cash and cash equivalents   $ 454,812     $ 205,762  


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

                 
    Three Months Ended September 30,
    2019   2018
    Homes   Value   Homes   Value
Homes Closed:                
Arizona   440     $ 144,920     411     $ 134,977  
California   200     135,555     206     143,386  
Colorado   169     85,674     160     87,716  
West Region   809     366,149     777     366,079  
Texas   810     278,744     721     256,308  
Central Region   810     278,744     721     256,308  
Florida   302     118,804     249     105,902  
Georgia   139     46,984     139     47,429  
North Carolina   206     77,696     165     63,381  
South Carolina   75     23,768     69     23,605  
Tennessee   78     27,040     42     15,030  
East Region   800     294,292     664     255,347  
Total   2,419     $ 939,185     2,162     $ 877,734  
Homes Ordered:                
Arizona   482     $ 159,778     347     $ 112,185  
California   198     124,201     104     67,810  
Colorado   156     74,498     157     84,078  
West Region   836     358,477     608     264,073  
Texas   649     217,648     635     228,627  
Central Region   649     217,648     635     228,627  
Florida   293     111,471     231     94,089  
Georgia   138     47,527     89     32,459  
North Carolina   188     69,017     139     52,434  
South Carolina   55     17,520     65     21,448  
Tennessee   99     36,735     61     21,959  
East Region   773     282,270     585     222,389  
Total   2,258     $ 858,395     1,828     $ 715,089  


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

                 
    Nine Months Ended September 30,
    2019   2018
    Homes   Value   Homes   Value
Homes Closed:                
Arizona   1,126     $ 368,762     1,052     $ 344,245  
California   464     304,846     643     444,796  
Colorado   507     264,479     416     231,523  
West Region   2,097     938,087     2,111     1,020,564  
Texas   2,176     760,189     2,004     707,397  
Central Region   2,176     760,189     2,004     707,397  
Florida   809     321,364     761     329,156  
Georgia   380     132,440     316     107,237  
North Carolina   558     204,866     488     191,129  
South Carolina   202     66,513     211     72,611  
Tennessee   215     77,429     135     50,555  
East Region   2,164     802,612     1,911     750,688  
Total   6,437     $ 2,500,888     6,026     $ 2,478,649  
                 
Homes Ordered:                
Arizona   1,521     $ 493,391     1,222     $ 401,063  
California   572     368,194     513     359,907  
Colorado   580     290,060     498     270,991  
West Region   2,673     1,151,645     2,233     1,031,961  
Texas   2,346     799,293     2,210     785,686  
Central Region   2,346     799,293     2,210     785,686  
Florida   925     369,503     814     343,293  
Georgia   431     149,731     346     125,293  
North Carolina   658     241,573     439     168,623  
South Carolina   205     65,540     233     80,774  
Tennessee   285     102,084     161     60,251  
East Region   2,504     928,431     1,993     778,234  
Total   7,523     $ 2,879,369     6,436     $ 2,595,881  
                 
Order Backlog:                
Arizona   738     $ 258,341     496     $ 176,843  
California   199     129,880     188     138,274  
Colorado   258     129,167     281     154,451  
West Region   1,195     517,388     965     469,568  
Texas   1,151     413,229     1,226     461,628  
Central Region   1,151     413,229     1,226     461,628  
Florida   488     213,427     499     211,063  
Georgia   174     63,730     181     68,605  
North Carolina   277     104,162     194     74,405  
South Carolina   92     31,474     121     43,678  
Tennessee   142     53,623     99     38,059  
East Region   1,173     466,416     1,094     435,810  
Total   3,519     $ 1,397,033     3,285     $ 1,367,006  


Meritage Homes Corporation and Subsidiaries
Operating Data
(Unaudited)

                 
    Three Months Ended September 30,
    2019   2018
    Ending   Average   Ending   Average
Active Communities:                
Arizona   37     38.5     44     42.0  
California   24     22.0     14     14.5  
Colorado   20     20.5     20     19.5  
West Region   81     81.0     78     76.0  
Texas   74     73.5     92     91.0  
Central Region   74     73.5     92     91.0  
Florida   36     36.0     30     30.0  
Georgia   18     19.5     22     21.0  
North Carolina   22     22.5     20     20.0  
South Carolina   10     9.5     12     11.5  
Tennessee   9     10.0     10     9.0  
East Region   95     97.5     94     91.5  
Total   250     252.0     264     258.5  


                 
    Nine Months Ended September 30,
    2019   2018
    Ending   Average   Ending   Average
Active Communities:                
Arizona   37     38.5     44     41.0  
California   24     20.5     14     17.0  
Colorado   20     20.0     20     15.5  
West Region   81     79.0     78     73.5  
Texas   74     84.5     92     92.0  
Central Region   74     84.5     92     92.0  
Florida   36     33.5     30     29.0  
Georgia   18     20.0     22     20.5  
North Carolina   22     23.5     20     18.5  
South Carolina   10     11.0     12     12.5  
Tennessee   9     9.5     10     8.0  
East Region   95     97.5     94     88.5  
Total   250     261.0     264     254.0  

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 for the full year 2019.

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 breaches; 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 June 30, 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