Write-Offs Drive $23 Million Loss for Meritage

Scottsdale, AZ, Jul 28, 2008–Meritage Homes reported a net loss of $23 million or $0.79 per share, driven by $39 million in pre-tax real estate-related charges.

The firm had pre-tax income of $5 million, excluding real estate-related impairment charges.

Net orders declined 15 percent. The Texas market was down 4 percent, compared to a 28 percent decrease outside of Texas.

The firm reduced its inventory of unsold homes by 35 percent and it controls a 3.2 years lot supply, a 60 percent reduction from the September 2005 peak.

Second quarter home closing revenue was down 34 percent from the prior year as a result of 25 percent fewer closings and 12 percent lower average sale prices.

“We remain a build-to-order homebuilder, appealing primarily to move-up buyers, but are re-positioning many of our communities to attract buyers at lower price points, in response to demand for more affordable homes,” said CEO Steven Hilton.