Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is listed on the New York Stock Exchange under the symbol "MTH".
On February 1, 2021 there were 149 owners of record of our common stock. A substantially greater number of owners of our common stock are beneficial holders, whose shares of record are held by banks, brokers, and other financial institutions.
The transfer agent for our common stock is Computershare, Inc., 462 South 4th Street, Louisville, KY 40202 (www.computershare.com).
The following graph compares the five-year total return of our common stock with the S&P 500 Index and the Dow Jones US Home Construction Index. The graph assumes $100 invested as of December 31, 2015 in Meritage Common Stock, the S&P 500 Index and the Dow Jones US Home Construction Index, and the re-investment of all dividends. The performance of our common stock depicted in the graphs is not indicative of future performance.
2015 2016 2017 2018 2019 2020
Meritage Homes Corporation 100.00 102.38 150.63 108.03 179.79 243.66
S&P 500 Index 100.00 109.45 130.43 122.67 157.57 182.74
Dow Jones US Home Construction Index 100.00 92.67 162.26 110.13 161.49 197.78
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The preceding Performance Graph and related information shall not be deemed to be “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any filing under the Securities Act or the Exchange Act, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
Historically, we have not declared cash dividends, nor do we intend to declare cash dividends in the foreseeable future. We plan to retain our earnings to finance the continuing operation and growth of the business. Future cash dividends, if any, will depend upon our financial condition, results of operations, capital requirements, statutory requirements, as well as other factors considered relevant by our Board of Directors. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources”.
Issuer Purchases of Equity Securities
On February 13, 2019, the Board of Directors authorized a new stock repurchase program, authorizing the expenditure of
up to $100.0 million to repurchase shares of our common stock. There is no stated expiration for this program. The repurchases of the Company's shares may be made in the open market, in privately negotiated transactions, or otherwise. The timing and amount of repurchases, if any, will be determined by the Company's management at its discretion and be based on a variety of factors such as the market price of the Company's common stock, corporate and contractual requirements, prevailing market and economic conditions and legal requirements. The share repurchase program may be modified, suspended or discontinued at any time. On November 13, 2020, the Board of Directors authorized the expenditure of an additional $100.0 million to repurchase shares of our common stock under this program, which was announced on January 27, 2021. We acquired 1,100,000 shares of our common stock at an aggregate purchase price of $69.6 million for the year ended December 31, 2020. As of December 31, 2020, there was approximately $114.4 million available under this program to repurchase shares.
A summary of the Company's repurchase activity for the three months ended December 31, 2020 is as follows:
Period Total Number of Shares Purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs
October 1, 2020 - October 31, 2020 — $ — — $ 23,152,230
November 1, 2020 - November 30, 2020 1,130 $ 89.77 1,130 $ 123,050,785
December 1, 2020 - December 31, 2020 98,870 $ 87.80 98,870 $ 114,373,276
Total 100,000 100,000
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Item 6. Selected Financial Data
The following table presents selected historical consolidated financial and operating data of Meritage Homes Corporation and subsidiaries as of and for each of the last five years ended December 31, 2020. The financial data has been derived from our audited consolidated financial statements and related notes for the periods presented. This table should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes included elsewhere in this Annual Report. These historical results may not be indicative of future results.
Historical Consolidated Financial Data
Years Ended December 31,
($ in thousands, except per share amounts)
2020 2019 2018 2017 2016
Income Statement Data:
Homebuilding:
Total closing revenue $ 4,482,120 $ 3,650,483 $ 3,513,419 $ 3,226,772 $ 3,029,227
Total cost of closings (1) (3,522,506) (2,970,868) (2,884,266) (2,660,273) (2,498,015)
Total closing gross profit 959,614 679,615 629,153 566,499 531,212
Financial services profit 16,388 20,579 24,044 22,055 21,902
Commissions and other sales costs (287,901) (246,728) (241,897) (221,647) (215,092)
General and administrative expenses (159,020) (146,093) (138,478) (124,041) (123,803)
Interest expense (2,177) (8,370) (785) (3,853) (5,172)
Other income/(expense), net 6,662 9,577 11,217 8,784 9,013
Loss on early extinguishment of debt — (5,635) — (278) —
Earnings before income taxes 533,566 302,945 283,254 247,519 218,060
Provision for income taxes (110,091) (53,282) (55,922) (104,264) (68,519)
Net earnings $ 423,475 $ 249,663 $ 227,332 $ 143,255 $ 149,541
Earnings per common share:
Basic $ 11.23 $ 6.55 $ 5.67 $ 3.56 $ 3.74
Diluted (2) $ 11.00 $ 6.42 $ 5.58 $ 3.41 $ 3.55
Balance Sheet Data (December 31):
Cash, cash equivalents, and investments and securities $ 745,621 $ 319,466 $ 311,466 $ 170,746 $ 131,702
Real estate $ 2,778,039 $ 2,744,361 $ 2,742,621 $ 2,731,380 $ 2,422,063
Total assets $ 3,864,398 $ 3,398,249 $ 3,365,479 $ 3,251,258 $ 2,888,691
Senior and convertible senior notes, net and loans payable and other borrowings $ 1,020,085 $ 1,018,981 $ 1,310,057 $ 1,283,804 $ 1,127,314
Total liabilities $ 1,516,530 $ 1,424,259 $ 1,644,724 $ 1,674,433 $ 1,467,196
Stockholders’ equity $ 2,347,868 $ 1,973,990 $ 1,720,755 $ 1,576,825 $ 1,421,495
Cash Flow Data:
Cash (used in)/provided by:
Operating activities $ 530,360 $ 346,820 $ 262,200 $ (87,132) $ (103,402)
Investing activities $ (18,234) $ (13,489) $ (33,527) $ (17,072) $ (20,106)
Financing activities $ (85,971) $ (325,331) $ (87,953) $ 143,248 $ (6,998)
(1) Total cost of closings includes $24.9 million, $7.3 million, $6.7 million, $6.7 million and $3.8 million of home and land impairments for the years ending December 31, 2020, 2019, 2018, 2017 and 2016, respectively.
(2) Diluted earnings per common share for the years ended December 31, 2017 and 2016 includes adjustments to net earnings to account for the interest attributable to our convertible debt, net of income taxes.
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