Monday, Meritage Homes Corp. (MTH), a homebuilder, reported a wider loss for the second quarter, hurt mainly by pre-tax real estate-related impairment charges and one time charges. Revenue for the quarter declined 28% from the previous year quarter.
The Scottsdale, Arizona-based company reported a second-quarter net loss of $73.60 million or $2.37 per share, compared to a loss of $23.47 million or $0.79 per share in the same quarter last year.
On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.72 per share for the quarter. Analysts' estimate typically exclude special items.
The company noted that the quarterly results included $67 million of pre-tax real estate-related impairment charges, compared to $39 million in the year ago quarter. Results also included a $7 million gain on early extinguishment of debt in the quarter, while the prior year quarter benefited from the one-time legal settlement.
Total closing revenue declined 28% to $221.54 million from $375.30 million in the comparable quarter last year. Analysts expected the company to report revenue of $210.55 million for the quarter.
Total gross margin for the quarter was 12.3% before impairments, compared to 13.8% in the prior year quarter. Including impairments, gross margin was -17.7%, compared to 4.4% in the previous year quarter.
General and administrative expenses increased to $13.78 million, up from $10.45 million in the prior year quarter. The company noted that the general and administrative expenses in the year ago quarter reflect a $10.2 million reduction related to a successful legal settlement.
Interest expense for the quarter was $11.33 million, up from $5.54 million in the previous year quarter. For the quarter, the company recorded a provision for income taxes of $1.71 million, compared to income tax benefit of $10.69 million in the year ago quarter.
For the six-month period, Meritage Homes reported a net loss of $91.96 million or $2.97 per share, compared to a loss of $68.77 million or $2.46 per share in the year ago period. Total closing revenue for the quarter was $452.68 million, down from $748.73 million in the prior year period.
MTH closed Monday's regular trading at $22.92, up $0.68 or 3.06%, on a volume of 1.14 million shares on the NYSE.
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