Homebuilder MTH still Gaming Earnings!!!!
Meritage Homes Q3 loss 56c vs $4.69 year ago
Meritage reports quarterly net loss of $18 million
InPlay: Meritage beats by $0.07, beats on revs
Reports Q3 (Sep) loss of $0.56 per share, $0.07 better than the First Call consensus of ($0.63); revenues were unchanged from the year-ago period at $254 mln. Third quarter home closing revenue declined 38% year over year, due to 29% fewer homes closed, coupled with a 13% lower average closing price of approximately $228,000 in the third quarter of 2009, compared to approximately $262,000 in the third quarter of 2008. The lower average closing price reflects general market declines
WHOA DOGGIE.....HOLD ON ONE MINUTE!!!!!
In the first nine months of 2009, Meritage retired a total of $24 million of its 7.731% senior subordinated notes due 2017 in exchange for 783,000 shares of Meritage Homes common stock at an implied discount of 41% to the face value of the notes retired, saving approximately two million dollars of future interest cost per year. This resulted in a $9 million gain on the early extinguishment of debt, included as a component of other income.
OVER 25 CENTS IN EARNINGS COMES FROM BUYING ITS OWN DEBT AT A DISCOUNT...HMMMMMMMMMMMMMMMMMMM
IF MTH SIMPLY BOUGHT MORE OF ITS OWN DEBT AT A DISCOUNT AND SOLD NO HOMES....IT WOULD BE MAKING HUGE PROFITS.....
PS...the reason debt holders sell debt at a BIG discount is because they have some issue with the debt......any guesses?????
Gotta luv finanical accounting in a world where better than expected is lower sales and massive losses....year after year after year.....