SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
or
o TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 1-9977
MERITAGE CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
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Maryland |
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86-0611231 |
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(State or Other Jurisdiction |
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(I.R.S. Employer |
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8501 E. Princess Drive, Suite 290 |
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85255 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(480) 609-3330 |
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(Registrant’s Telephone Number, Including Area Code) |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý Noo
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yesý Noo
As of November 5, 2003, 13,118,767 shares of Meritage Corporation common stock were outstanding.
MERITAGE CORPORATION
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2003
TABLE OF CONTENTS
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Consolidated Balance Sheets as of September 30, 2003 (unaudited) and |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Items 1-5. |
Not Applicable |
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2
MERITAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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(Unaudited) |
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September
30, |
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December
31, |
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(in thousands, except share data) |
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Assets |
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Cash and cash equivalents |
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$ |
6,910 |
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$ |
6,600 |
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Real estate |
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668,495 |
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484,970 |
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Consolidated real estate not owned |
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34,715 |
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— |
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Deposits on real estate under option or contract |
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100,475 |
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77,516 |
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Receivables |
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7,961 |
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8,894 |
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Deferred tax asset, net |
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3,060 |
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2,701 |
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Goodwill |
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75,329 |
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73,785 |
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Property and equipment, net |
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24,521 |
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14,007 |
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Prepaid expenses and other assets |
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14,102 |
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13,941 |
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Investments in unconsolidated entities |
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21,161 |
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9,374 |
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Total assets |
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$ |
956,729 |
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$ |
691,788 |
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Liabilities |
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Accounts payable |
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$ |
65,214 |
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$ |
52,133 |
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Accrued liabilities |
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70,836 |
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41,329 |
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Home sale deposits |
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28,948 |
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16,091 |
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Liabilities related to consolidated real estate not owned |
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24,638 |
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— |
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Loans payable |
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95,550 |
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109,927 |
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Senior notes |
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288,260 |
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155,000 |
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Total liabilities |
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573,446 |
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374,480 |
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Minority interest related to consolidated real estate not owned |
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7,037 |
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— |
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Stockholders’ Equity |
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Common stock, par value $0.01. 50,000,000 shares authorized; 15,355,780 and 15,227,460 shares issued at September 30, 2003 and December 31, 2002, respectively |
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154 |
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152 |
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Additional paid-in capital |
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198,594 |
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197,320 |
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Retained earnings |
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211,050 |
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148,209 |
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Treasury stock at cost, 2,302,226 and 2,137,926 shares at September 30, 2003 and December 31, 2002, respectively |
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(33,552 |
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(28,373 |
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Total stockholders’ equity |
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376,246 |
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317,308 |
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Total liabilities and stockholders’ equity |
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$ |
956,729 |
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$ |
691,788 |
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See accompanying notes to consolidated financial statements
3
MERITAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
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Three
Months Ended |
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Nine
Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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(in thousands, except per share data) |
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Home sales revenue |
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$ |
380,752 |
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$ |
328,514 |
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$ |
989,895 |
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$ |
744,686 |
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Land sales revenue |
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— |
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615 |
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8,100 |
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5,615 |
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380,752 |
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329,129 |
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997,995 |
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750,301 |
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Cost of home sales |
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(304,013 |
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(264,271 |
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(791,438 |
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(598,856 |
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Cost of land sales |
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(452 |
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(6,859 |
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(5,311 |
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(304,013 |
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(264,723 |
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(798,297 |
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(604,167 |
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Home sales gross profit |
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76,739 |
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64,243 |
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198,457 |
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145,830 |
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Land sales gross profit |
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— |
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163 |
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1,241 |
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304 |
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76,739 |
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64,406 |
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199,698 |
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146,134 |
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Commissions and other sales costs |
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(23,461 |
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(17,644 |
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(64,534 |
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(44,240 |
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General and administrative costs |
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(14,403 |
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(11,518 | |||||||||