Meritage Homes(US:MTH)2021-01-28 20:20Financial Performance & Growth - Meritage Homes achieved all-time highest annual volume of sales orders and home closings[11] - The company experienced a 47% increase in net earnings in 4Q20, reaching $152.5 million[31] - Home closing revenue for 4Q20 increased by 28% to $1,409.2 million compared to $1,103.7 million in 4Q19[31] - Home closing gross profit for 4Q20 increased by 54% to $337.8 million[31] - Full year 2020 net earnings increased by 70% to $423.5 million[31] - Diluted EPS for 4Q20 increased by 50% to $3.97[31] Operational Highlights - Average absorption pace reached 5.2 per month, the best since 2005[11] - Home closings increased by 32% in 4Q20, with 3,744 closings compared to 2,830 in 4Q19[31] - SG&A expenses as a percentage of home closing revenue decreased by 80 bps to 9.3% in 4Q20[31] - Land and development spending significantly increased to $506 million in 4Q20 from $245 million in 4Q19[39] Balance Sheet & Capital Allocation - Net debt-to-capital ratio decreased to 10.5% as of December 31, 2020, compared to 26.2% the previous year[35] - The company had $746 million in cash and cash equivalents as of December 31, 2020[35, 36] - The company repurchased 100,000 shares totaling $8.8 million in 4Q20[36] Forward Guidance - The company projects 11,500-12,500 home closings for full year 2021[41] - The company projects $4.2-4.6 billion in home closing revenue for full year 2021[41]