Meritage Homes Corporation operates as a designer and builder of single-family detached homes. The company primarily builds in historically high-growth regions of the United States and offers various homes that are designed to appeal to a range of homebuyers, including first-time, move-up, active adult and luxury. The company has homebuilding operations in three regions, such as West, Central and East, which include nine states, such as Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee. The company also operates a wholly-owned title company, Carefree Title Agency, Inc. (Carefree Title). Carefree Title's core business includes title insurance and closing/settlement services that the company offers to its homebuyers. The company’s homebuilding and marketing activities are conducted under the name of Meritage Homes in each of its homebuilding markets, other than Tennessee, where the company operates under the name of Phillips Builders, and in the Greenville market where the company operates under the Legendary Communities brand for all communities open for sales and as Meritage Homes for all opened Greenville communities. The company also operates under the name Monterey Homes in some markets. As of December 31, 2015, the company was selling homes in 254 communities. The company sells its homes using furnished model homes as a marketing tool to demonstrate to prospective homebuyers the advantages of the designs and features of its homes. As of December 31, 2015, the company owned 334 completed model homes, had 20 models under construction, and leased-back an additional 2 model homes. The company’s homes generally are sold by its commissioned sales associate employees who typically work from a sales office typically located in a converted garage of one of the model homes for each project. The company also employs a team of online sales associates who offer assistance to potential buyers viewing its communities and products through the Internet. Strategy The main tenets of the company’s strategic model are to employ its knowledge of customer preferences to align its product offerings with homebuyers’ changing demands; continuously improve its construction process by working with its vendors to find mutual efficiencies to construct high-quality homes at the lowest possible cost, while incorporating its energy-efficiency technologies and other innovative concepts into routine construction practices; provide an efficient sales-to-close cycle time by refining its processes and streamlining scheduling and production; constantly evaluate its pricing, and refine its product and community amenity offerings to better appeal to buyers; customize its sales techniques for buyers and their preferences, including an increased use of technology in providing information about its homes and in selecting options for home customization; educate its sales team about its energy-efficient offerings and other features of its homes and on the availability of mortgage products; provide the highest level of customer service and care by working closely with its buyers throughout the sales and construction process and monitoring their satisfaction routinely after delivery of their homes; and strategically improve its business within its submarkets utilizing its market research tools to make informed decisions about land purchases. Government Regulation and Environmental Matters For the company’s homebuyers to finance their home purchases with FHA-insured or VA-guaranteed or USDA-guaranteed mortgages, the company is required to build such homes in accordance with the regulatory requirements of those agencies. Seasonality Historically, the company experienced seasonal variations in its quarterly operating results and capital requirements. The company typically sells more homes in the first half of the fiscal year than in the second half (year ended December 2015), which creates additional working capital requirements in the second and third quarters to build its inventories to satisfy the deliveries in the second half of the year. The company typically benefits from the cash generated from home closings in the third and fourth quarters. History Meritage Homes Corporation was founded in 1985. The company was incorporated in 1988 in the state of Maryland.
meritage homes corp (MTH:New York)
8800 East Raintree Drive
Scottsdale, AZ 85260
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