Meritage Homes' Revenue Down from 2007

Scottsdale, AZ, April 4, 2008—Meritage Homes reported estimated net sales of $420 million on 1,630 homes ordered, and closing revenue of $370 million on 1,320 homes after a cancellation rate of 27 percent.

Both numbers were significantly lower than last year, yet they beat analysts’ estimates.

In the 2007 first quarter, Meritage had closing revenue of $576 million on 1,796 homes and $641 million in net sales on 2,073 homes ordered. The cancellation rate was also 27 percent.

Analysts had predicted first-quarter revenue of $331 million.

In a press release, Meritage also forecast ending the first quarter with a backlog of $720 million compared with $1.3 billion a year ago.

"Considering the level of impairments we've recorded to date, and our much lower inventory levels, we expect our total real estate impairments for the year will be significantly lower than last year's," Chief Executive Steven Hilton said in the statement.