Meritage Homes reports fourth quarter 2024 results
29 Enero 2025 - 3:30PM
Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder,
today announced fourth quarter and full year results for the
periods ended December 31, 2024.
|
Summary Operating Results
(unaudited)(Dollars in thousands, except per share
amounts) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2024 |
|
|
2023 |
|
% Chg |
|
|
2024 |
|
|
2023 |
|
% Chg |
Homes closed (units) |
|
4,044 |
|
|
3,951 |
|
2 |
% |
|
|
15,611 |
|
|
13,976 |
|
12 |
% |
Home closing revenue |
$ |
1,595,928 |
|
$ |
1,641,523 |
|
(3 |
)% |
|
$ |
6,341,546 |
|
$ |
6,056,784 |
|
5 |
% |
Average sales price -
closings |
$ |
395 |
|
$ |
415 |
|
(5 |
)% |
|
$ |
406 |
|
$ |
433 |
|
(6 |
)% |
Home orders (units) |
|
3,304 |
|
|
2,892 |
|
14 |
% |
|
|
14,606 |
|
|
13,193 |
|
11 |
% |
Home order value |
$ |
1,320,447 |
|
$ |
1,198,744 |
|
10 |
% |
|
$ |
5,950,708 |
|
$ |
5,675,892 |
|
5 |
% |
Average sales price - orders |
$ |
400 |
|
$ |
415 |
|
(4 |
)% |
|
$ |
407 |
|
$ |
430 |
|
(5 |
)% |
Ending backlog (units) |
|
|
|
|
|
|
|
|
1,544 |
|
|
2,549 |
|
(39 |
)% |
Ending backlog value |
|
|
|
|
|
|
|
$ |
629,549 |
|
$ |
1,088,137 |
|
(42 |
)% |
Average sales price -
backlog |
|
|
|
|
|
|
|
$ |
408 |
|
$ |
427 |
|
(4 |
)% |
Earnings before income taxes |
$ |
221,562 |
|
$ |
258,869 |
|
(14 |
)% |
|
$ |
1,002,870 |
|
$ |
949,430 |
|
6 |
% |
Net earnings |
$ |
172,649 |
|
$ |
198,851 |
|
(13 |
)% |
|
$ |
786,186 |
|
$ |
738,748 |
|
6 |
% |
Diluted EPS |
$ |
4.72 |
|
$ |
5.38 |
|
(12 |
)% |
|
$ |
21.44 |
|
$ |
19.93 |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT COMMENTS"2024 was another
record-setting year for Meritage as we began to roll out our new
move-in ready strategy and were able to capitalize on continuing
demand for affordable, immediately available homes. For the full
year 2024, we generated our highest annual closing volume of 15,611
homes and, despite a pullback in average sales price, we achieved a
company-high home closing revenue of $6.3 billion," said Steven J.
Hilton, executive chairman of Meritage Homes. "This quarter, we
experienced normal seasonality, but with our focus on
affordability, we were still able to secure orders totaling 3,304
homes—an average monthly absorption pace of 3.9. With favorable
demographics for our product offerings, an undersupply of homes at
our price points and stability in the job market, we believe that
we are well-positioned to capture demand in the spring selling
season while continuing to grow our market share."
"With over 50% of this quarter's closings sold during this
quarter, our backlog conversion rate was a company-record 177%,"
added Phillippe Lord, chief executive officer of Meritage Homes.
"Our 4,044 deliveries this quarter combined with home closing gross
margin of 23.2% and SG&A leverage of 10.8% resulted in diluted
EPS of $4.72. We increased our book value per share 12.9%
year-over-year to $142.98 and generated a return on equity of 16.1%
as of December 31, 2024."*
“Our capital allocation in the fourth quarter of 2024 remained
centered on investing in growth and returning cash to shareholders.
Our land acquisition and development spend totaled $741.5 million
this quarter, as we put approximately 14,400 net new lots under
control, which included our acquisition of Elliott Homes. We also
spent a combined $67.0 million on cash dividends and share
repurchases," concluded Mr. Lord. "At December 31, 2024, our
balance sheet remained strong, with ample liquidity and nothing
drawn under our revolving credit facility. We ended the quarter
with cash of $651.6 million and a net debt-to-capital ratio of
11.7%. Given our confidence in Meritage's long-term growth
trajectory, we completed a two-for-one stock split after the
quarter ended on January 2, 2025."
FOURTH QUARTER RESULTS
- Orders of 3,304 for the fourth
quarter of 2024 increased 14% year-over-year due to an 8% increase
in average absorption pace to 3.9 per month from 3.6 per month in
the fourth quarter of 2023 and a 5% increase in average
communities. Fourth quarter 2024 average sales price ("ASP") on
orders of $400,000 was down 4% from the fourth quarter of 2023 due
to greater utilization of financing incentives as well as product
and geographic mix shift. Entry-level represented 91% of fourth
quarter 2024 sales orders, compared to 88% in the prior year.
- The 3% year-over-year decrease in
home closing revenue to $1.6 billion for the fourth quarter of 2024
was primarily the result of a 5% lower ASP on closings due to
greater utilization of financing incentives as well as product and
geographic mix. The fourth quarter 2024 closing volume totaled
4,044 units, which was 2% higher than prior year. Entry-level
represented 91% of fourth quarter 2024 home closings, compared to
86% in the prior year.
- Home closing gross margin of 23.2%
in the fourth quarter of 2024 was down 200 bps from 25.2% in the
fourth quarter of 2023 as a result of greater utilization of
financing incentives and higher lot costs, which were partially
offset by lower direct costs per square foot and improved cycle
times.
- Selling, general and administrative
expenses ("SG&A") as a percentage of home closing revenue was
10.8% for the fourth quarter of 2024 compared to 10.7% for the
fourth quarter of 2023. As we moved into the tougher selling
environment, commission rates in the fourth quarter of 2024
increased.
- The fourth quarter effective income
tax rate was 22.1% in 2024, compared to 23.2% in 2023. The
Company's tax rates in both periods benefited from earned eligible
energy tax credits on qualifying homes under the Inflation
Reduction Act ("IRA").
- Net earnings were $172.6 million
($4.72 per diluted share) for the fourth quarter of 2024, a 13%
decrease from $198.9 million ($5.38 per diluted share) for the
fourth quarter of 2023. Lower home closing revenue and lower
margins led to a 12% year-over-year decrease in earnings per
diluted share.
YEAR TO DATE RESULTS
- Total sales orders of 14,606 homes
for full year 2024 increased 11% over prior year due to an 8%
year-over-year increase in average absorption pace to 4.3 per month
in 2024 and a 1% increase in average community count.
- Home closing revenue increased 5%
for full year 2024 to $6.3 billion due to a 12% increase in home
closing volume year-over-year partially offset by a 6% decline in
ASPs on closings.
- Full year 2024 home closing gross
margin of 24.9% was slightly up from 24.8% for full year 2023, due
to lower direct costs per square foot and improved cycle time,
which were partially offset by greater utilization of financing
incentives and higher lot costs.
- SG&A as a percentage of home
closing revenue of 10.1% was slightly lower year-over-year from
10.2% in 2023. Commissions were higher year-over-year as a result
of tougher selling conditions in 2024.
- For the full year 2024, the Company
recognized a loss on early extinguishment of debt of $0.6 million
in connection with the $250.0 million redemption of its remaining
6.00% senior notes due 2025 (the "2025 Notes"). The Company
recognized a loss on early extinguishment of debt of $0.9 million
in 2023 in connection with the $150.0 million partial redemption of
the 2025 Notes.
- The effective tax rate for full year
2024 was 21.6%, compared to 22.2% for full year 2023. The Company's
tax rates in both periods benefited from earned eligible energy tax
credits on qualifying homes under the IRA.
- Net earnings were $786.2 million
($21.44 per diluted share) for full year 2024, a 6% increase from
$738.7 million ($19.93 per diluted share) for full year 2023,
primarily reflecting higher home closing revenue and slightly lower
overhead costs in 2024.
BALANCE SHEET & LIQUIDITY
- On October 29, 2024, the Company
completed the acquisition of the assets of private builder Elliott
Homes ("Elliott"), which built entry-level homes in Mississippi,
Alabama and the Florida panhandle. Approximately 5,500 lots were
included in the acquisition.
- Cash and cash equivalents at
December 31, 2024 totaled $651.6 million, compared to $921.2
million at December 31, 2023, as we increased our investments in
real estate and also completed the Elliott acquisition in the
fourth quarter of 2024.
- Land acquisition and development
spend totaled $741.5 million for the fourth quarter of 2024,
compared to $653.5 million for the fourth quarter of 2023. The 2024
spend included the Elliott acquisition. Full year 2024 land spend
was $2.5 billion compared to $1.9 billion in the prior year.
- Approximately 85,600 total lots were
owned or controlled as of December 31, 2024, which included the
approximately 5,500 lots from the Elliott acquisition. This was a
33% increase from approximately 64,300 total lots as of December
31, 2023. Approximately 14,400 net new lots were added in the
fourth quarter of 2024, which compared to over 7,600 net new lots
in the fourth quarter of 2023.
- Fourth quarter 2024 ending community
count was 292, which compared to 278 ending communities at
September 30, 2024 and 270 at December 31, 2023.
- Debt-to-capital and net
debt-to-capital ratios were 20.6% and 11.7%, respectively as of
December 31, 2024, compared to 17.9% and 1.9%, respectively as of
December 31, 2023.
- The Company declared and paid
quarterly cash dividends of $0.75 per share totaling $27.0 million
in the fourth quarter of 2024, up from $0.27 per share totaling
$9.8 million in the fourth quarter of 2023. Full year dividends
paid were $108.6 million and $39.5 million in 2024 and 2023,
respectively.
- During the fourth quarter of 2024,
the Company repurchased 218,616 shares of stock, or 0.6% of shares
outstanding at the beginning of the quarter, for $40.0 million,
which compared to 24,869 shares of stock repurchased in the fourth
quarter of 2023 for $4.1 million. For full year 2024, the Company
repurchased 732,255 shares of stock, or 2.0% of shares outstanding
at the beginning of the year, for a total of $125.9 million, which
compared to 437,882 shares of stock repurchased in full year 2023
for $59.1 million. During the fourth quarter of 2024, the Board
approved an additional $250.0 million to the authorized share
repurchase program, and as of December 31, 2024, $309.1 million
remained available to repurchase under the program.
- Subsequent to the fourth quarter of
2024, we completed a two-for-one stock split of Meritage's common
stock in the form of a stock dividend on January 2, 2025.
GUIDANCE
The Company is providing the following updated guidance for full
year 2025, based on current market conditions:
|
|
Full Year 2025 |
Home closing volume |
|
16,250-16,750 units |
Home closing revenue |
|
$6.6-6.9 billion |
|
|
|
CONFERENCE CALLManagement will host a
conference call to discuss its fourth quarter 2024 results at 8:00
a.m. Mountain Standard Time (10:00 a.m. Eastern Standard Time) on
Thursday, January 30, 2025. To listen, please go to Meritage's
Investor Relations page for the live webcast or dial in to
1-877-407-6951 US toll free or 1-412-902-0046. A replay will be
available on the Investor Relations page.
* The Company's return on equity is calculated as net earnings
for the trailing twelve months divided by average total
stockholders' equity for the trailing five quarters. The Company's
book value per share is calculated as total stockholders' equity as
of the last day of the period divided by the shares outstanding as
of the last day of the period.
|
|
|
Meritage Homes Corporation and
SubsidiariesConsolidated Income
Statements(In thousands, except per share
data)(unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Change $ |
|
Change % |
Homebuilding: |
|
|
|
|
|
|
|
|
Home closing revenue |
|
$ |
1,595,928 |
|
|
$ |
1,641,523 |
|
|
$ |
(45,595 |
) |
|
(3 |
)% |
|
Land closing revenue |
|
|
17,356 |
|
|
|
11,682 |
|
|
|
5,674 |
|
|
49 |
% |
|
Total closing revenue |
|
|
1,613,284 |
|
|
|
1,653,205 |
|
|
|
(39,921 |
) |
|
(2 |
)% |
|
Cost of home closings |
|
|
(1,226,114 |
) |
|
|
(1,228,426 |
) |
|
|
2,312 |
|
|
— |
% |
|
Cost of land closings |
|
|
(14,026 |
) |
|
|
(9,104 |
) |
|
|
(4,922 |
) |
|
54 |
% |
|
Total cost of closings |
|
|
(1,240,140 |
) |
|
|
(1,237,530 |
) |
|
|
(2,610 |
) |
|
— |
% |
|
Home closing gross profit |
|
|
369,814 |
|
|
|
413,097 |
|
|
|
(43,283 |
) |
|
(10 |
)% |
|
Land closing gross profit |
|
|
3,330 |
|
|
|
2,578 |
|
|
|
752 |
|
|
29 |
% |
|
Total closing gross profit |
|
|
373,144 |
|
|
|
415,675 |
|
|
|
(42,531 |
) |
|
(10 |
)% |
Financial
Services: |
|
|
|
|
|
|
|
|
Revenue |
|
|
8,429 |
|
|
|
7,200 |
|
|
|
1,229 |
|
|
17 |
% |
|
Expense |
|
|
(4,024 |
) |
|
|
(3,218 |
) |
|
|
(806 |
) |
|
25 |
% |
|
Earnings from financial services
unconsolidated entities and other, net |
|
|
2,757 |
|
|
|
2,418 |
|
|
|
339 |
|
|
14 |
% |
|
Financial services profit |
|
|
7,162 |
|
|
|
6,400 |
|
|
|
762 |
|
|
12 |
% |
Commissions and
other sales costs |
|
(104,956 |
) |
|
|
(107,145 |
) |
|
|
2,189 |
|
|
(2 |
)% |
General and
administrative expenses |
|
(67,742 |
) |
|
|
(68,972 |
) |
|
|
1,230 |
|
|
(2 |
)% |
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
% |
Other income,
net |
|
13,954 |
|
|
|
12,911 |
|
|
|
1,043 |
|
|
8 |
% |
Earnings before
income taxes |
|
221,562 |
|
|
|
258,869 |
|
|
|
(37,307 |
) |
|
(14 |
)% |
Provision for income
taxes |
|
(48,913 |
) |
|
|
(60,018 |
) |
|
|
11,105 |
|
|
(19 |
)% |
Net earnings |
$ |
172,649 |
|
|
$ |
198,851 |
|
|
$ |
(26,202 |
) |
|
(13 |
)% |
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
Change $ or shares |
|
Change % |
|
Earnings per common share |
|
$ |
4.78 |
|
|
$ |
5.46 |
|
|
$ |
(0.68 |
) |
|
(12 |
)% |
|
Weighted average shares outstanding |
|
|
36,094 |
|
|
|
36,446 |
|
|
|
(352 |
) |
|
(1 |
)% |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
$ |
4.72 |
|
|
$ |
5.38 |
|
|
$ |
(0.66 |
) |
|
(12 |
)% |
|
Weighted average shares outstanding |
|
|
36,562 |
|
|
|
36,947 |
|
|
|
(385 |
) |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meritage Homes Corporation and
SubsidiariesConsolidated Income
Statements(In thousands, except per share
data)(unaudited) |
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Change $ |
|
Change % |
Homebuilding: |
|
|
|
|
|
|
|
|
Home closing revenue |
|
$ |
6,341,546 |
|
|
$ |
6,056,784 |
|
|
$ |
284,762 |
|
|
5 |
% |
|
Land closing revenue |
|
|
22,326 |
|
|
|
56,229 |
|
|
|
(33,903 |
) |
|
(60 |
)% |
|
Total closing revenue |
|
|
6,363,872 |
|
|
|
6,113,013 |
|
|
|
250,859 |
|
|
4 |
% |
|
Cost of home closings |
|
|
(4,761,703 |
) |
|
|
(4,554,671 |
) |
|
|
(207,032 |
) |
|
5 |
% |
|
Cost of land closings |
|
|
(18,309 |
) |
|
|
(51,786 |
) |
|
|
33,477 |
|
|
(65 |
)% |
|
Total cost of closings |
|
|
(4,780,012 |
) |
|
|
(4,606,457 |
) |
|
|
(173,555 |
) |
|
4 |
% |
|
Home closing gross profit |
|
|
1,579,843 |
|
|
|
1,502,113 |
|
|
|
77,730 |
|
|
5 |
% |
|
Land closing gross profit |
|
|
4,017 |
|
|
|
4,443 |
|
|
|
(426 |
) |
|
(10 |
)% |
|
Total closing gross profit |
|
|
1,583,860 |
|
|
|
1,506,556 |
|
|
|
77,304 |
|
|
5 |
% |
Financial
Services: |
|
|
|
|
|
|
|
|
Revenue |
|
|
31,163 |
|
|
|
25,250 |
|
|
|
5,913 |
|
|
23 |
% |
|
Expense |
|
|
(14,657 |
) |
|
|
(12,128 |
) |
|
|
(2,529 |
) |
|
21 |
% |
|
Loss from financial services
unconsolidated entities and other, net |
|
|
(2,096 |
) |
|
|
(656 |
) |
|
|
(1,440 |
) |
|
220 |
% |
|
Financial services profit |
|
|
14,410 |
|
|
|
12,466 |
|
|
|
1,944 |
|
|
16 |
% |
Commissions and
other sales costs |
|
(409,069 |
) |
|
|
(384,911 |
) |
|
|
(24,158 |
) |
|
6 |
% |
General and
administrative expenses |
|
(230,856 |
) |
|
|
(231,722 |
) |
|
|
866 |
|
|
— |
% |
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
% |
Other income,
net |
|
45,156 |
|
|
|
47,948 |
|
|
|
(2,792 |
) |
|
(6 |
)% |
Loss on early
extinguishment of debt |
|
(631 |
) |
|
|
(907 |
) |
|
|
276 |
|
|
(30 |
)% |
Earnings before
income taxes |
|
1,002,870 |
|
|
|
949,430 |
|
|
|
53,440 |
|
|
6 |
% |
Provision for income
taxes |
|
(216,684 |
) |
|
|
(210,682 |
) |
|
|
(6,002 |
) |
|
3 |
% |
Net earnings |
$ |
786,186 |
|
|
$ |
738,748 |
|
|
$ |
47,438 |
|
|
6 |
% |
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
Change $ or shares |
|
Change % |
|
Earnings per common share |
|
$ |
21.70 |
|
|
$ |
20.17 |
|
|
$ |
1.53 |
|
|
8 |
% |
|
Weighted average shares outstanding |
|
|
36,238 |
|
|
|
36,619 |
|
|
|
(381 |
) |
|
(1 |
)% |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
$ |
21.44 |
|
|
$ |
19.93 |
|
|
$ |
1.51 |
|
|
8 |
% |
|
Weighted average shares outstanding |
|
|
36,666 |
|
|
|
37,069 |
|
|
|
(403 |
) |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meritage Homes Corporation and Subsidiaries
Consolidated Balance Sheets(Dollars in
thousands)(unaudited) |
|
|
|
December 31, 2024 |
|
December 31, 2023 |
Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
651,555 |
|
$ |
921,227 |
Other receivables |
|
|
256,282 |
|
|
266,972 |
Real estate (1) |
|
|
5,728,775 |
|
|
4,721,291 |
Deposits on real estate under option or contract |
|
|
192,405 |
|
|
111,364 |
Investments in unconsolidated entities |
|
|
28,735 |
|
|
17,170 |
Property and equipment, net |
|
|
47,285 |
|
|
48,953 |
Deferred tax assets, net |
|
|
54,524 |
|
|
47,573 |
Prepaids, other assets and goodwill |
|
|
203,093 |
|
|
218,584 |
Total assets |
|
$ |
7,162,654 |
|
$ |
6,353,134 |
Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
212,477 |
|
$ |
271,650 |
Accrued liabilities |
|
|
452,213 |
|
|
424,764 |
Home sale deposits |
|
|
20,513 |
|
|
36,605 |
Loans payable and other borrowings |
|
|
29,343 |
|
|
13,526 |
Senior and convertible senior notes, net |
|
|
1,306,535 |
|
|
994,689 |
Total liabilities |
|
|
2,021,081 |
|
|
1,741,234 |
Stockholders'
Equity: |
|
|
|
|
Preferred stock |
|
|
— |
|
|
— |
Common stock, par value $0.01. Authorized 125,000,000 shares;
35,960,986 and 36,425,037 shares issued and outstanding at
December 31, 2024 and 2023, respectively |
|
|
360 |
|
|
364 |
Additional paid-in capital |
|
|
143,036 |
|
|
290,955 |
Retained earnings |
|
|
4,998,177 |
|
|
4,320,581 |
Total stockholders’ equity |
|
|
5,141,573 |
|
|
4,611,900 |
Total liabilities and stockholders’ equity |
|
$ |
7,162,654 |
|
$ |
6,353,134 |
(1) Real estate –
Allocated costs: |
|
|
|
|
Homes under contract under construction |
|
|
525,271 |
|
$ |
704,206 |
Unsold homes, completed and under construction |
|
|
1,730,636 |
|
|
1,260,855 |
Model homes |
|
|
119,732 |
|
|
118,252 |
Finished home sites and home sites under development |
|
|
3,353,136 |
|
|
2,637,978 |
Total real estate |
|
$ |
5,728,775 |
|
$ |
4,721,291 |
|
Meritage Homes Corporation and
SubsidiariesConsolidated Statements of Cash
Flows (In thousands)
(unaudited) |
|
|
Twelve Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating
activities: |
|
|
|
|
Net earnings |
|
$ |
786,186 |
|
|
$ |
738,748 |
|
Adjustments to reconcile net earnings to net cash (used
in)/provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
25,959 |
|
|
|
25,334 |
|
Stock-based compensation |
|
|
25,809 |
|
|
|
22,511 |
|
Loss on early extinguishment of debt |
|
|
631 |
|
|
|
907 |
|
Equity in earnings from unconsolidated entities |
|
|
(9,225 |
) |
|
|
(6,371 |
) |
Distribution of earnings from unconsolidated entities |
|
|
7,461 |
|
|
|
6,792 |
|
Other |
|
|
14,460 |
|
|
|
4,115 |
|
Changes in assets and liabilities: |
|
|
|
|
Increase in real estate |
|
|
(979,254 |
) |
|
|
(357,408 |
) |
(Increase)/decrease in deposits on real estate under option or
contract |
|
|
(81,354 |
) |
|
|
(36,140 |
) |
Decrease/(increase) in receivables, prepaids and other assets |
|
|
39,776 |
|
|
|
(64,169 |
) |
(Decrease)/increase in accounts payable and accrued
liabilities |
|
|
(41,933 |
) |
|
|
22,609 |
|
Decrease in home sale deposits |
|
|
(16,092 |
) |
|
|
(1,356 |
) |
Net cash (used in)/provided by operating activities |
|
|
(227,576 |
) |
|
|
355,572 |
|
Cash flows from
investing activities: |
|
|
|
|
Investments in unconsolidated entities |
|
|
(18,545 |
) |
|
|
(5,991 |
) |
Distributions of capital from unconsolidated entities |
|
|
2,867 |
|
|
|
137 |
|
Purchases of property and equipment |
|
|
(28,658 |
) |
|
|
(38,192 |
) |
Proceeds from sales of property and equipment |
|
|
262 |
|
|
|
423 |
|
Maturities/sales of investments and securities |
|
|
750 |
|
|
|
750 |
|
Payments to purchase investments and securities |
|
|
(750 |
) |
|
|
(750 |
) |
Net cash used in investing activities |
|
|
(44,074 |
) |
|
|
(43,623 |
) |
Cash flows from
financing activities: |
|
|
|
|
Repayment of loans payable and other borrowings |
|
|
(8,933 |
) |
|
|
(2,798 |
) |
Repayment of senior notes |
|
|
(250,695 |
) |
|
|
(150,884 |
) |
Proceeds from issuance of convertible senior notes |
|
|
575,000 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
(17,082 |
) |
|
|
— |
|
Purchase of capped calls related to issuance of convertible senior
notes |
|
|
(61,790 |
) |
|
|
— |
|
Dividends paid |
|
|
(108,590 |
) |
|
|
(39,534 |
) |
Repurchase of shares |
|
|
(125,932 |
) |
|
|
(59,067 |
) |
Net cash provided by/(used in) financing activities |
|
|
1,978 |
|
|
|
(252,283 |
) |
Net
(decrease)/increase in cash and cash equivalents |
|
|
(269,672 |
) |
|
|
59,666 |
|
Cash and cash
equivalents, beginning of period |
|
|
921,227 |
|
|
|
861,561 |
|
Cash and cash
equivalents, end of period |
|
$ |
651,555 |
|
|
$ |
921,227 |
|
|
Meritage Homes Corporation and
SubsidiariesOperating
Data(Dollars in
thousands)(Unaudited)
We aggregate our homebuilding operating segments into reporting
segments based on similar long-term economic characteristics and
geographical proximity. Our three reportable homebuilding segments
are as follows:
- West: Arizona, California, Colorado, and Utah
- Central: Texas
- East: Alabama, Florida, Georgia, Mississippi, North Carolina,
South Carolina, and Tennessee
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
2024 |
|
2023 |
|
|
Homes |
|
Value |
|
Homes |
|
Value |
Homes
Closed: |
|
|
|
|
|
|
|
|
West Region |
|
1,027 |
|
$ |
490,898 |
|
1,155 |
|
$ |
563,723 |
Central Region |
|
1,228 |
|
|
436,006 |
|
1,242 |
|
|
464,571 |
East Region |
|
1,789 |
|
|
669,024 |
|
1,554 |
|
|
613,229 |
Total |
|
4,044 |
|
$ |
1,595,928 |
|
3,951 |
|
$ |
1,641,523 |
|
|
|
|
|
|
|
|
|
Homes
Ordered: |
|
|
|
|
|
|
|
|
West Region |
|
864 |
|
$ |
425,038 |
|
722 |
|
$ |
373,941 |
Central Region |
|
1,067 |
|
|
378,358 |
|
1,054 |
|
|
392,421 |
East Region |
|
1,373 |
|
|
517,051 |
|
1,116 |
|
|
432,382 |
Total |
|
3,304 |
|
$ |
1,320,447 |
|
2,892 |
|
$ |
1,198,744 |
|
|
Twelve months ended December 31, |
|
|
2024 |
|
2023 |
|
|
Homes |
|
Value |
|
Homes |
|
Value |
Homes
Closed: |
|
|
|
|
|
|
|
|
West Region |
|
4,526 |
|
$ |
2,223,876 |
|
4,109 |
|
$ |
2,107,095 |
Central Region |
|
4,834 |
|
|
1,739,553 |
|
4,486 |
|
|
1,798,939 |
East Region |
|
6,251 |
|
|
2,378,117 |
|
5,381 |
|
|
2,150,750 |
Total |
|
15,611 |
|
$ |
6,341,546 |
|
13,976 |
|
$ |
6,056,784 |
|
|
|
|
|
|
|
|
|
Homes
Ordered: |
|
|
|
|
|
|
|
|
West Region |
|
4,215 |
|
$ |
2,084,168 |
|
3,983 |
|
$ |
2,046,251 |
Central Region |
|
4,508 |
|
|
1,626,919 |
|
4,291 |
|
|
1,678,484 |
East Region |
|
5,883 |
|
|
2,239,621 |
|
4,919 |
|
|
1,951,157 |
Total |
|
14,606 |
|
$ |
5,950,708 |
|
13,193 |
|
$ |
5,675,892 |
|
|
|
|
|
|
|
|
|
Order
Backlog: |
|
|
|
|
|
|
|
|
West Region |
|
435 |
|
$ |
214,360 |
|
746 |
|
$ |
379,785 |
Central Region |
|
442 |
|
|
159,546 |
|
768 |
|
|
289,375 |
East Region |
|
667 |
|
|
255,643 |
|
1,035 |
|
|
418,977 |
Total |
|
1,544 |
|
$ |
629,549 |
|
2,549 |
|
$ |
1,088,137 |
|
|
|
Three months ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Ending |
|
Average |
|
Ending |
|
Average |
|
Ending |
|
Average |
|
Ending |
|
Average |
Active
Communities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Region |
|
91 |
|
88.5 |
|
78 |
|
81.0 |
|
91 |
|
84.6 |
|
78 |
|
90.0 |
Central Region |
|
79 |
|
75.5 |
|
88 |
|
85.0 |
|
79 |
|
79.0 |
|
88 |
|
83.0 |
East Region |
|
122 |
|
121.0 |
|
104 |
|
105.0 |
|
122 |
|
116.8 |
|
104 |
|
103.4 |
Total |
|
292 |
|
285.0 |
|
270 |
|
271.0 |
|
292 |
|
280.4 |
|
270 |
|
276.4 |
|
Meritage Homes Corporation and
SubsidiariesSupplemental and Non-GAAP
information(Unaudited) |
|
Supplemental Information (In thousands): |
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Depreciation and
amortization |
|
$ |
6,601 |
|
|
$ |
7,758 |
|
|
$ |
25,959 |
|
|
$ |
25,334 |
|
|
|
|
|
|
|
|
|
|
Summary of Capitalized
Interest: |
|
|
|
|
|
|
|
|
Capitalized interest,
beginning of period |
|
$ |
53,732 |
|
|
$ |
58,476 |
|
|
$ |
54,516 |
|
|
$ |
60,169 |
|
Interest incurred |
|
|
12,713 |
|
|
|
12,845 |
|
|
|
52,717 |
|
|
|
57,759 |
|
Interest expensed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest amortized to cost of
home and land closings |
|
|
(12,767 |
) |
|
|
(16,805 |
) |
|
|
(53,555 |
) |
|
|
(63,412 |
) |
Capitalized interest, end of
period |
|
$ |
53,678 |
|
|
$ |
54,516 |
|
|
$ |
53,678 |
|
|
$ |
54,516 |
|
|
Reconciliation of Non-GAAP Information (In
thousands): |
|
Debt-to-Capital Ratios |
|
|
December 31, 2024 |
|
December 31, 2023 |
Senior and convertible senior notes, net, loans payable and other
borrowings |
|
$ |
1,335,878 |
|
|
$ |
1,008,215 |
|
Stockholders' equity |
|
|
5,141,573 |
|
|
|
4,611,900 |
|
Total capital |
|
$ |
6,477,451 |
|
|
$ |
5,620,115 |
|
Debt-to-capital |
|
|
20.6 |
% |
|
|
17.9 |
% |
|
|
|
|
|
Senior and convertible senior
notes, net, loans payable and other borrowings |
|
$ |
1,335,878 |
|
|
$ |
1,008,215 |
|
Less: cash and cash equivalents |
|
|
(651,555 |
) |
|
|
(921,227 |
) |
Net debt |
|
$ |
684,323 |
|
|
$ |
86,988 |
|
Stockholders’ equity |
|
|
5,141,573 |
|
|
|
4,611,900 |
|
Total net capital |
|
$ |
5,825,896 |
|
|
$ |
4,698,888 |
|
Net debt-to-capital (1) |
|
|
11.7 |
% |
|
|
1.9 |
% |
(1) |
Net debt-to-capital reflects certain adjustments to the
debt-to-capital ratio and is defined as net debt (debt less cash
and cash equivalents) divided by total capital (net debt plus
stockholders' equity). Net debt-to-capital is considered a non-GAAP
financial measure and should be considered in addition to, rather
than as a substitute for, the comparable GAAP financial measures.
We believe this non-GAAP financial measure is relevant and useful
to investors in understanding our operating results and may be
helpful in comparing the Company with other companies in the
homebuilding industry to the extent they provide similar
information. We encourage investors to understand the methods used
by other companies in the homebuilding industry to calculate
non-GAAP financial measures and any adjustments thereto before
comparing to our non-GAAP financial measures. |
|
|
ABOUT MERITAGE HOMES CORPORATION Meritage
is the fifth-largest public homebuilder in the United States, based
on homes closed in 2023. The Company offers energy-efficient and
affordable entry-level and first move-up homes. Operations span
across Arizona, California, Colorado, Utah, Texas, Alabama,
Florida, Georgia, Mississippi, North Carolina, South Carolina and
Tennessee.
Meritage has delivered almost 200,000 homes in its 39-year
history, and has a reputation for its distinctive style, quality
construction, and award-winning customer experience. The Company is
an industry leader in energy-efficient homebuilding, an eleven-time
recipient of the U.S. Environmental Protection Agency’s (EPA)
ENERGY STAR® Partner of the Year for Sustained Excellence Award and
Residential New Construction Market Leader Award, as well as a
four-time recipient of the EPA's 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 and our future
results including our ability to increase our market share and our
full year 2025 projected home closing volume and home closing
revenue.
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: increases in interest rates or decreases
in mortgage availability, and the cost and use of rate locks and
buy-downs; the cost of materials used to develop communities and
construct homes; cancellation rates; supply chain and labor
constraints; the ability of our potential buyers to sell their
existing homes; our ability to acquire and develop lots may be
negatively impacted if we are unable to obtain performance and
surety bonds; the adverse effect of slow absorption rates;
legislation related to tariffs; impairments of our real estate
inventory; competition; home warranty and construction defect
claims; failures in health and safety performance; fluctuations in
quarterly operating results; our level of indebtedness; our
exposure to counterparty risk with respect to our capped calls; our
ability to obtain financing if our credit ratings are downgraded;
our 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; shortages in the availability
and cost of subcontract labor; the replication of our
energy-efficient technologies by our competitors; 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; liabilities or restrictions resulting
from regulations applicable to our financial services operations;
negative publicity that affects our reputation; potential
disruptions to our business by an epidemic or pandemic, 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, 2023 and our Form 10-Q for subsequent quarters
under the caption "Risk Factors," which can be found on our website
at https://investors.meritagehomes.com.
|
|
|
Contacts: |
|
Emily Tadano, VP Investor Relations and ESG |
|
|
(480) 515-8979 (office) |
|
|
investors@meritagehomes.com |
Meritage Homes (NYSE:MTH)
Gráfica de Acción Histórica
De Ene 2025 a Feb 2025
Meritage Homes (NYSE:MTH)
Gráfica de Acción Histórica
De Feb 2024 a Feb 2025