Meritage Homes reverses year-ago 4Q loss with tax gain

Meritage Homes books $43M profit in 4Q

SCOTTSDALE, Ariz. — Meritage Homes Corp. said Tuesday that it reversed a year-ago loss by accelerating the sale of properties near the end of the year, bringing in a tax gain.

The company said it earned $43.3 million, or $1.35 per share, during the quarter that ended Dec. 31, up from a loss of $79.1 million, or 2.58 per share, during the same period last year.

The results from the latest period included a $39 million pre-tax charge for real estate impairments, and a tax benefit of $90 million.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items, were expecting a loss of 44 cents per share on revenue of $285 million.

Meritage reported revenue of $285.8 million, down 28.5 percent from $399.6 million a year earlier.

The tax gain was triggered by a tax law change that allows it to claim a refund against earlier taxes paid, going back five years. Meritage sold “several non-strategic properties near the end of 2009 that were not needed to execute our current business plan, with the added benefit of harvesting substantial tax benefits” on property that had been written down previously, said Chairman and CEO Steven J. Hilton.

The number of homes closed during the quarter fell 19 percent to 1,202. Home closing revenue was down 28 percent to $280 million.

Meritage’s shares rose 82 cents, or 4 percent, to close at $21.37 before the results were released. They rose another 63 cents, or 3 percent, to $22.00 in after-market trading.