Meritage Homes Reports Fourth Quarter And Full Year 2010 Results

FOURTH QUARTER 2010 SELECTED RESULTS:

• Reported net loss of $0.9M or $0.03 per diluted share including net tax benefit of $5M, compared to net income of $43M or $1.35 per diluted share in 2009, including a $90M net tax benefit
• Reduced adjusted pre-tax loss to $0.3M from $8M in the prior year
• Improved home closing gross margin before impairments by 320 basis points over 2009
• Increased net sales orders by 15% over the prior year; with sequential growth over the third quarter of 2010

FULL YEAR 2010 SELECTED RESULTS:

• Generated net income of $7M or $0.22 per diluted share, compared to a net loss of $66M or ($2.12) per diluted share in 2009
• Reduced net debt-to-capital ratio to 28% from 31% in the prior year
• Completed the year with $413M cash and short-term investments, and no short-term debt
• Issued $200M of 7.15% senior notes due in 2020 and retired $195M of notes due in 2014 and 2015

SCOTTSDALE, Ariz., Feb. 2, 2011 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder, today announced fourth quarter results for the period ended December 31, 2010.

Summary Operating Results (unaudited)
(Dollars in thousands, except per share amounts)
	Three Months Ended December 31,			Full year Ended December 31,
	2010	2009	%Chg	2010	2009	%Chg
Homes closed (units)	837	1,202	-30%	3,700	4,039	-8%
Home closing revenue	$214,616	$279,589	-23%	$940,406	$962,797	-2%
Sales orders (units)	713	621	15%	3,383	3,853	-12%
Sales order value	$174,021	$162,338	7%	$854,687	$912,301	-6%
Ending backlog (units)				778	1,095	-29%
Ending backlog value				$201,816	$287,535	-30%
Net (loss)/income– incl. impairments	$(895)	$43,286	-102%	$7,150	$(66,456)	111%
Adjusted pre-tax (loss)/income -- excl. impairments and (loss)/gain on early extinguishment of debt	$(311)	$(8,262)	96%	$12,684	$(35,141)	136%
Diluted EPS (including impairments)	$(0.03)	$1.35	-102%	$0.22	$(2.12)	110%
* Adjusted pre-tax (loss)/income excludes impairments: See non-GAAP reconciliations of net (loss)/profit to adjusted pre-tax (loss)/income on "Operating Results" statement.

FOURTH QUARTER OPERATING RESULTS

Meritage reported a net loss of $0.9 million or $0.03 per diluted share in the fourth quarter of 2010, compared to net income of $43 million or $1.35 per diluted share in the fourth quarter of 2009. The loss in 2010 included $5 million of impairments offset by a $5 million net tax benefit, while 2009 net income included $39 million of impairments, more than offset by a $90 million net tax benefit. Excluding those items, Meritage reduced its pre-tax loss to $311,000 from $8 million in the prior year.