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alstry (35.03)

Homebuilder MTH still Gaming Earnings!!!!

Recs

10

October 26, 2009 – Comments (2)

Headline:

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.....

 

 

2 Comments – Post Your Own

#1) On October 26, 2009 at 9:58 PM, ChrisGraley (30.25) wrote:

+1 rec

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#2) On October 26, 2009 at 10:45 PM, alstry (35.03) wrote:

In this environment fundementals simply don't matter....it was a lot more fun when pouring through the legal filings actually mattered and there was a system to enforce justice.

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