Meritage Homes Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Meritage Homes Corp. has filed its 2023 annual report (10-K) detailing its home building operations and financial standing for the fiscal year ending December 31, 2023.</b>

AI Summary

Meritage Homes CORP (MTH) filed a Annual Report (10-K) with the SEC on February 14, 2024. Meritage Homes Corp. filed its 2023 Form 10-K on February 14, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is home building. Meritage Homes Corp. is incorporated in Maryland. The company's headquarters are located in Scottsdale, Arizona.

Why It Matters

For investors and stakeholders tracking Meritage Homes CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Meritage Homes' financial performance, operational activities, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's revenue streams, profitability, debt levels, and cash position, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — Meritage Homes CORP shows moderate risk based on this filing. The company operates in the cyclical homebuilding industry, which is sensitive to economic conditions, interest rates, and consumer confidence, posing a medium risk to its financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Meritage Homes' performance in the current economic climate and its ability to navigate industry cyclicality.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-14 — Filing Date (Filed as of Date)
• 106 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Meritage Homes CORP (company) — Filer
• Scottsdale, Arizona (location) — Business Address
• 19981009 (date) — Date of Name Change from MERITAGE CORP
• 19970113 (date) — Date of Name Change from MONTEREY HOMES CORP
• 19920703 (date) — Date of Name Change from HOMEPLEX MORTGAGE INVESTMENTS CORP

FAQ

Industry Context

Meritage Homes Corp. operates in the homebuilding industry, a sector characterized by its sensitivity to economic cycles, interest rates, and consumer demand.

Regulatory Implications

The company is subject to various federal and state regulations pertaining to real estate development, construction, and sales, including environmental, zoning, and consumer protection laws.

What Investors Should Do

1. Review Meritage Homes' detailed financial statements for the fiscal year ended December 31, 2023, to understand revenue, profitability, and cash flow.
2. Analyze the risk factors section to identify potential challenges and their impact on the company's operations and financial stability.
3. Compare key financial metrics from this 10-K filing with previous years to assess performance trends and identify any significant changes.

Key Dates

• 2024-02-14: 10-K Filing — Annual report filing for fiscal year 2023

Year-Over-Year Comparison

This filing is the annual report for the fiscal year ended December 31, 2023, and provides updated financial and operational information compared to previous filings.

Key Financial Figures

• $237,000 — base prices ranging from approximately $237,000 to $1,064,000. Our average sales price
• $1,064,000 — ranging from approximately $237,000 to $1,064,000. Our average sales price on home closin
• $433,400 — e closings and orders was approximately $433,400 and $430,200, respectively, for the yea
• $430,200 — d orders was approximately $433,400 and $430,200, respectively, for the year ended Decem
• $6.1 billion — holder return. Home closing revenue of $6.1 billion for the year ended December 31, 2023, d
• $738.7 million — 28.6% in 2022. Our 2023 net earnings of $738.7 million and diluted EPS of $19.93 both decrease
• $19.93 b — gs of $738.7 million and diluted EPS of $19.93 both decreased by 25.5% compared to prior
• $59.1 m — 437,882 shares of our common stock for $59.1 million, paid dividends totaling $39.5 mi
• $39.5 m — $59.1 million, paid dividends totaling $39.5 million, and we also partially redeemed $
• $150.0 million — million, and we also partially redeemed $150.0 million of our Senior Notes due 2025. We ended
• $921.2 million — with cash and cash equivalents totaling $921.2 million as compared to $861.6 million at Decemb
• $861.6 million — totaling $921.2 million as compared to $861.6 million at December 31, 2022, while growing our
• $4.7 billion — 22, while growing our inventory 8.3% to $4.7 billion. Our debt-to-capital ratio was 17.9% an
• $1.9 billion — ber 31, 2023, we invested approximately $1.9 billion in land acquisition and development and
• $832.7 m — purchased approximately 14,900 lots for $832.7 million, spent $1.1 billion on land devel

Filing Documents

• mth-20231231.htm (10-K) — 1756KB
• ex1012performanceshareawar.htm (EX-10.1 2) — 34KB
• ex1013restrictedstockunita.htm (EX-10.1 3) — 33KB
• mth20231231ex23deloittecon.htm (EX-23) — 2KB
• mth2023123110kex311.htm (EX-31.1) — 8KB
• mth2023123110kex312.htm (EX-31.2) — 8KB
• mth2023123110kex321.htm (EX-32.1) — 7KB
• ex97-mthclawbackpolicy.htm (EX-97) — 31KB
• image_0.jpg (GRAPHIC) — 4KB
• image_02.jpg (GRAPHIC) — 4KB
• mth-20231231_g1.jpg (GRAPHIC) — 373KB
• mth-20231231_g2.jpg (GRAPHIC) — 123KB
• 0000833079-24-000015.txt (&nbsp;) — 10280KB
• mth-20231231.xsd (EX-101.SCH) — 67KB
• mth-20231231_cal.xml (EX-101.CAL) — 106KB
• mth-20231231_def.xml (EX-101.DEF) — 273KB
• mth-20231231_lab.xml (EX-101.LAB) — 786KB
• mth-20231231_pre.xml (EX-101.PRE) — 543KB
• mth-20231231_htm.xml (XML) — 1362KB

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 25

Cybersecurity

Item 1C. Cybersecurity 25

Properties

Item 2. Properties 27

Legal Proceedings

Item 3. Legal Proceedings 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27 PART II 28

Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 42

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 42

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 69

Controls and Procedures

Item 9A. Controls and Procedures 69

Other Information

Item 9B. Other Information 71

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 71 PART III 71

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 71

Executive Compensation

Item 11. Executive Compensation 71

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 71

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 71 PART IV 72

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 72

Form 10-K Summary

Item 16. Form 10-K Summary 76

SIGNATURES

SIGNATURES 77 2 PART I

Business

Item 1. Business The Company Meritage Homes Corporation ("Meritage Homes") is a leading designer and builder of single-family attached and detached homes. We primarily build in historically high-growth regions of the United States and offer a variety of entry-level and first move-up homes. We have operations in three regions: West, Central and East, which are comprised of ten states: Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee. These three regions are our principal homebuilding reporting segments. We also operate a financial services reporting segment. In this segment, we offer title and escrow, mortgage, and insurance services. Carefree Title Agency, Inc. ("Carefree Title"), our wholly-owned title company, provides title insurance and closing/settlement services to our homebuyers in certain states. Managing our own title operations allows us greater control over the entire escrow and closing cycles in addition to generating additional revenue. Meritage Homes Insurance Agency, Inc. ("Meritage Insurance"), our wholly-owned insurance broker, works in collaboration with insurance companies nationwide to offer homeowners insurance and other insurance products to our homebuyers. Our financial services operations also provide mortgage services to our homebuyers through an unconsolidated joint venture. Our homebuilding activities are conducted under the name of Meritage Homes in each of our homebuilding markets. At December 31, 2023, we were actively selling homes in 270 communities, with base prices ranging from approximately $237,000 to $1,064,000. Our average sales price on home closings and orders was approximately $433,400 and $430,200, respectively, for the year ended December 31, 2023. Available Information; Corporate Governance We commenced our homebuilding operations in 1985 through our predecessor company, Monterey Homes. Meritage Homes Corporation was incorporated in the state of Maryland in 19

View Full Filing

View this 10-K filing on SEC EDGAR