UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission File Number 1-9977 |
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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) |
(480) 609-3330
(Registrant’s Telephone Number, Including Area Code)
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 No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Common shares outstanding as of July 28, 2004: 12,961,027.
MERITAGE CORPORATION
FORM 10-Q
TABLE OF CONTENTS
2
PART I FINANCIAL INFORMATION
MERITAGE CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
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June 30, |
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December 31, |
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Assets |
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Cash and cash equivalents |
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$ |
11,735 |
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$ |
4,799 |
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Real estate |
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747,780 |
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678,011 |
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Consolidated real estate not owned |
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28,336 |
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18,572 |
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Deposits on real estate under option or contract |
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118,019 |
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105,870 |
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Investments in unconsolidated entities |
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33,974 |
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23,528 |
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Receivables, net |
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9,014 |
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8,716 |
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Deferred tax asset, net |
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1,443 |
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1,204 |
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Goodwill |
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88,664 |
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75,645 |
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Property and equipment, net |
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27,495 |
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23,669 |
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Prepaid expenses and other assets |
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14,468 |
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14,525 |
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Total assets |
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$ |
1,080,928 |
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$ |
954,539 |
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Liabilities |
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Accounts payable |
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$ |
75,628 |
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$ |
80,737 |
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Accrued liabilities |
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63,032 |
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67,411 |
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Home sale deposits |
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38,452 |
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25,352 |
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Obligations related to consolidated real estate not owned |
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21,839 |
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17,653 |
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Senior notes |
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417,539 |
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287,991 |
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Loans payable |
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17,000 |
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63,500 |
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Total liabilities |
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633,490 |
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542,644 |
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Commitments and Contingencies (Notes 3, 4, and 5) |
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Stockholders’ Equity |
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Common stock, par value $0.01. 50,000,000 shares authorized; 15,639,273 and 15,479,558 shares issued at June 30, 2004 and December 31, 2003, respectively |
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156 |
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155 |
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Additional paid-in capital |
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206,518 |
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202,678 |
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Retained earnings |
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294,170 |
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242,615 |
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Treasury stock at cost, 2,602,226 and 2,302,226 shares at June 30, 2004 and December 31, 2003, respectively |
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(53,406 |
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(33,553 |
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Total stockholders’ equity |
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447,438 |
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411,895 |
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Total liabilities and stockholders’ equity |
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$ |
1,080,928 |
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$ |
954,539 |
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See accompanying notes to consolidated financial statements
3
MERITAGE CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Home closing revenue |
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$ |
431,275 |
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$ |
325,733 |
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$ |
854,777 |
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$ |
609,143 |
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Land closing revenue |
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2,660 |
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8,100 |
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2,660 |
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8,100 |
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433,935 |
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333,833 |
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857,437 |
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617,243 |
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Cost of home closings |
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(352,208 |
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(260,369 |
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(692,547 |
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(487,425 |
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Cost of land closings |
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(1,731 |
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(6,859 |
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(1,731 |
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(6,859 |
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(353,939 |
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(267,228 |
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(694,278 |
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(494,284 |
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