Meritage Homes Corporation · NYSE:MTH
Meritage Homes — Q3 2024 Earnings Presentation
12 slides from Meritage Homes's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Analyst Conference Call
THIRD QUARTER 2024 ANALYST CONFERENCE CALL OCTOBER 30, 2024
Slide 2: Safe Harbor
Safe Harbor The information included in this presentation 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
Slide 3: Speakers
Speakers Steven J. Hilton – Executive Chairman Phillippe Lord – Chief Executive Officer Hilla Sferruzza – EVP & Chief Financial Officer Emily Tadano – VP of Investor Relations and ESG 3
Slide 4: 3Q24 Milestones
3Q24 Milestones Certified Great Place To Work for second year in a row Received the EPA’s 2024 Indoor airPLUS Leader Award for the fourth consecutive year for building healthy homes Made Arizona’s Most Admired Companies of 2024 list Named to both 2024 Fortune Best Workplaces in Construction™ List as
Slide 5: Net Sales Orders Increased 1% Year-Over-Year
Net Sales Orders Increased 1% Year-Over-Year Net Orders & Y/Y % Orders by Product Type & Entry-Level % of Total 14% 14% 2,310 3,474 3,512 50% 1% 3,991 3,799 9 10 13 257 3,474 60% 3,512 265 410 2,892 Other 1MU 2,036 3,054 3,242 Entry Level 88% 88% 92% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q22 3Q23 3Q24 Average A
Slide 6: Our Diversified Geographic Footprint
Our Diversified Geographic Footprint West Region Central Region East Region Total Average Active Communities 85.5 74.0 123.0 282.5 Average Active Communities Y/Y(%) (6)% (10)% 13% 0% Entry-level % Average Communities 93% 94% 90% 92% Absorption per month 4.2 4.6 3.8 4.1 Absorption per month Y/Y(%) 17
Slide 7: Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage
Our Available Supply of Quick Turning Move-In Ready Homes Is Our Competitive Advantage Spec Starts Total Specs and Ending Backlog & % of Specs Completed 6000 5000 4,319 3,989 3,977 4,142 9,024 9,225 9,067 3,798 4000 8,513 8,426 3000 2,714 2,284 2000 3,033 1000 2,549 3Q23 4Q23 1Q24 2Q24 3Q24 3,608 En
Slide 8: 3Q24 Financial Performance
3Q24 Financial Performance ($ Millions 3Q24 3Q23 %Chg YTD2024 YTD2023 %Chg 3Q24 Highlights: except EPS & ASP) Home closings 3,942 3,638 8% 11,567 10,025 15% • Lower ASPs on closings due to product and geographic mix shift, as well as higher utilization of rate ASP (closings) $402K $443K -9% $410 $44
Slide 9: 3Q24 Capital Spend Activities
3Q24 Capital Spend Activities Capital Structure – Non-GAAP Reconciliation Capital Allocation Spend ($ Millions) Sept 30, 2024 Dec 31, 2023 3Q24 Breakdown ($ Millions) Notes payable & other borrowings $1,314 $1,008 Cash Dividends 4% Stockholders’ equity $5,030 $4,612 Share Repurchase 4% Total capital
Slide 10: Momentum in Land & Development Investment
Momentum in Land & Development Investment Lots Detail Land Acquisition and Development ($ Millions) $654 $631 $659 3Q24 3Q23 $537 $307 $430 $316 $349 $409 $293 $256 $268 Total lots controlled 74,819 60,662 $347 $315 $244 $310 $153 $162 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Development Acqusition Supply of l
Slide 11: Guidance
Guidance Fourth Quarter 2024 Home closings 3,750-3,950 units Home closing revenue $1.50-1.59 billion Home closing gross margin 22.5-23.5% Effective tax rate Approximately 22.5% Diluted earnings per common share $4.10-4.60 Full Year 2025 Home closings 16,500-17,500 units Home closing revenue $6.7-7.1
Slide 12: Positioned for Growing Market Share
Positioned for Growing Market Share Quick turning move-in ready homes strategy Prioritize pace over price Strong balance sheet 12