Meritage Homes Corporation (MTH) has reported 2.06 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $51.81 million, or $1.22 a share in the quarter, compared with $52.90 million, or $1.26 a share for the same period last year.
Revenue during the quarter grew 12.68 percent to $880.71 million from $781.61 million in the previous year period.
Cost of revenue rose 14.89 percent or $93.73 million during the quarter to $723.27 million. Gross margin for the quarter contracted 158 basis points over the previous year period to 17.88 percent.
Total expenses were $815.36 million for the quarter, up 14.86 percent or $105.50 million from year-ago period. Operating margin for the quarter contracted 176 basis points over the previous year period to 7.42 percent.
Operating income for the quarter was $65.35 million, compared with $71.76 million in the previous year period.
Revenue from real estate activities during the quarter increased 12.68 percent or $99.09 million to $880.71 million.
“We delivered solid closings, revenue and earnings growth in 2016, maintained a strong balance sheet and executed our strategy for future growth,” said Steven J. Hilton, chairman and chief executive officer of Meritage Homes.
Operating cash flow remains negative
Meritage Homes Corp has spent $103.40 million cash to meet operating activities during the year as against cash outgo of $3.34 million in the last year. The company has spent $20.11 million cash to meet investing activities during the year as against cash outgo of $16.49 million in the last year.
The company has spent $7 million cash to carry out financing activities during the year as against cash inflow of $178.70 million in the last year period.
Cash and cash equivalents stood at $131.70 million as on Dec. 31, 2016, down 49.77 percent or $130.51 million from $262.21 million on Dec. 31, 2015.
Real estate inventory rose 15.43 percent or $323.76 million to $2,422.06 million on Dec. 31, 2016. Net receivables were at $70.36 million as on Dec. 31, 2016, up 22.79 percent or $13.06 million from year-ago. Accounts payable surged 32.17 percent or $34.24 million to $140.68 million on Dec. 31, 2016.
Total assets grew 7.37 percent or $198.17 million to $2,888.69 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,467.20 million as on Dec. 31, 2016, up 2.49 percent or $35.61 million from year-ago.
Return on assets moved down 32 basis points to 1.79 percent in the quarter. At the same time, return on equity moved down 56 basis points to 3.64 percent in the quarter.
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