Meritage Homes(US:MTH)2020-07-23 18:08Financial Performance - Second quarter 2020 home closings increased by 23% to 2,770 compared to 2,253 in 2019[25] - Home closing revenue increased by 20% to $1032 million from $863 million in 2019[25] - Net earnings increased by 78% to $91 million, compared to $51 million in 2019[25] - Diluted EPS increased by 82% to $238, compared to $131 in 2019[25] - Home closing gross margin increased by 300 bps to 214% from 184% in 2019[25] Orders and Demand - Total orders increased by 32% in the second quarter[10] - Record orders were achieved in April, May and June[8] - Entry-level homes are outperforming other product types, representing 70% of orders in 2Q20[19] Balance Sheet and Liquidity - The company has the strongest balance sheet in its history[26] - Net debt-to-capital is at 204%[34] - The company paid off $500 million of its Revolving Credit Facility in May[37] Land and Development - Land and development spending increased to $214 million in 2Q20 from $175 million in 2Q19[41] - Total lots controlled are 42,851[41] Guidance - Full year 2020 home closing revenue is projected to be $40-43 billion[44] - Full year 2020 diluted EPS is projected to be $875-925[44]