2014

NVR, Inc. Announces First Quarter Results

RESTON, Va., April 22, 2013 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2013 of $35,041,000, or $6.84 per diluted share.  Net income and diluted earnings per share for its first quarter ended March 31, 2013 increased 74% and 75%, respectively, when compared to the 2012 first quarter.  Consolidated revenues for the first quarter of 2013 totaled $770,256,000, a 28% increase from $600,492,000 for the comparable 2012 quarter.

Homebuilding

New orders in the first quarter of 2013 increased 11% to 3,510 units, when compared to 3,157 units in the first quarter of 2012.  The cancellation rate in the first quarter of 2013 was 13.2% compared to 10.3% in the first quarter of 2012 and 15.3% in the fourth quarter of 2012.  Settlements increased in the first quarter of 2013 to 2,272 units, 18% higher than the first quarter of 2012.  The Company's backlog of homes sold but not settled as of March 31, 2013 increased on a unit basis by 27% to 6,217 units and on a dollar basis by 39% to $2,179,566,000 when compared to March 31, 2012.

Homebuilding revenues for the three months ended March 31, 2013 totaled $750,868,000, 28% higher than the year earlier period.  Gross profit margins increased to 16.9% in the 2013 first quarter compared to 16.1% for the same period in 2012.  Income before tax from the homebuilding segment totaled $43,944,000 in the 2013 first quarter, an increase of 91% when compared to the first quarter of 2012.

Mortgage Banking

Mortgage closed loan production of $473,766,000 for the three months ended March 31, 2013 was 13% higher than the same period last year.  Operating income for the mortgage banking operations during the first quarter of 2013 increased 40% to $11,161,000, when compared to $7,976,000 reported for the same period of 2012.

About NVR

NVR, Inc. operates in two business segments:  homebuilding and mortgage banking.  The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes trade names, and operates in twenty-seven metropolitan areas in fifteen states and Washington, D.C.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, www.foxridgehomes.com and www.heartlandcustomhomes.com.

Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should" or "anticipates" or the negative thereof or other comparable terminology.  All statements other than of historical facts are forward-looking statements.  Forward-looking statements contained in this document include those regarding market trends, NVR's financial position, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.  Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control.  NVR undertakes no obligation to update such forward-looking statements except as required by law.

 

NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)





Three Months Ended March 31,




2013


2012

Homebuilding:





Revenues                                         

$        750,868


$        586,195


Other income

1,026


908


Cost of sales

(624,085)


(491,829)


Selling, general and administrative 

(78,413)


(72,176)



Operating income 

49,396


23,098


Interest expense

(5,452)


(116)



Homebuilding income 

43,944


22,982







Mortgage Banking:





Mortgage banking fees

19,388


14,297


Interest income

955


1,665


Other income

113


76


General and administrative

(9,181)


(7,913)


Interest expense

(114)


(149)



Mortgage banking income

11,161


7,976







Income before taxes 

55,105


30,958









Income tax expense

(20,064)


(10,835)







Net income

$          35,041


$          20,123







Basic earnings per share 

$              7.04


$              3.99







Diluted earnings per share 

$              6.84


$              3.90







Basic weighted average shares outstanding 

4,979


5,044







Diluted weighted average shares outstanding 

5,122


5,159







 

 

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)















March 31, 2013


December 31, 2012

ASSETS



(Unaudited)











Homebuilding:






Cash and cash equivalents


$               1,082,792


$               1,139,103


Receivables


14,536


9,421


Inventory:







Lots and housing units, covered under








sales agreements with customers


653,799


515,498



Unsold lots and housing units


79,639


81,932



Land under development


96,233


68,336



Manufacturing materials and other 


12,179


12,365






841,850


678,131










Assets related to consolidated variable interest entity

11,436


15,626


Contract land deposits, net


193,216


191,538


Property, plant and equipment, net


27,736


27,016


Reorganization value in excess of amounts







allocable to identifiable assets, net


41,580


41,580


Other assets, net


297,344


279,855






2,510,490


2,382,270









Mortgage Banking:






Cash and cash equivalents


4,396


13,498


Mortgage loans held for sale, net


128,050


188,929


Property and equipment, net


2,833


2,465


Reorganization value in excess of amounts







allocable to identifiable assets, net


7,347


7,347


Other assets


11,939


10,333






154,565


222,572












Total assets


$               2,665,055


$               2,604,842









 

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)













March 31, 2013


December 31, 2012

LIABILITIES AND SHAREHOLDERS' EQUITY


(Unaudited)










Homebuilding:






Accounts payable


$                  170,129


$                  163,446


Accrued expenses and other liabilities


193,004


234,804


Liabilities related to consolidated variable interest entity

2,175


2,180


Non-recourse debt related to consolidated variable






interest entity


2,539


4,574


Customer deposits


124,862


99,687


Senior notes


599,010


598,988





1,091,719


1,103,679








Mortgage Banking:






Accounts payable and other liabilities


21,244


20,686





21,244


20,686










Total liabilities


1,112,963


1,124,365








Commitments and contingencies












Shareholders' equity:






Common stock, $0.01 par value; 60,000,000 shares







authorized; 20,556,198 shares issued as of







both March 31, 2013 and December 31, 2012


206


206


Additional paid-in-capital


1,184,961


1,169,699


Deferred compensation trust – 109,623 and







152,223 shares of NVR, Inc. common







stock as of March 31, 2013 and 







December 31, 2012, respectively


(17,864)


(25,331)


Deferred compensation liability


17,864


25,331


Retained earnings


4,374,121


4,339,080


Less treasury stock at cost – 15,559,314 and







15,642,068 shares at March 31, 2013







and December 31, 2012, respectively


(4,007,196)


(4,028,508)



Total shareholders' equity


1,552,092


1,480,477



    Total liabilities and shareholders' equity


$               2,665,055


$               2,604,842








 

NVR, Inc.

Operating Activity

(dollars in thousands)

(Unaudited)





Three Months Ended March 31,




2013


2012







Homebuilding data:





New orders (units)






Mid Atlantic (1)

1,716


1,663



North East (2)

293


259



Mid East (3)

949


798



South East (4)

552


437



   Total

3,510


3,157








Average new order price

$            343.0


$            313.2








Settlements (units)






Mid Atlantic (1)

1,138


1,006



North East (2)

191


169



Mid East (3)

593


448



South East (4)

350


301



   Total

2,272


1,924








Average settlement price

$            330.4


$            304.6








Backlog (units)






Mid Atlantic (1)

3,261


2,630



North East (2)

535


466



Mid East (3)

1,508


1,157



South East (4)

913


656



   Total

6,217


4,909








Average backlog price

$            350.6


$            318.5








Community count (average)

435


387


Lots controlled at end of period

59,700


53,000







Mortgage banking data:





Loan closings

$        473,766


$        420,184


Capture rate

84%


89%







Common stock information:





Shares outstanding at end of period

4,996,884


5,066,030


Number of shares repurchased

-


-


Aggregate cost of shares repurchased

$                    -


$                    -













(1)

   Virginia, West Virginia, Maryland, Delaware and Washington, D.C.

(2)

   New Jersey and eastern Pennsylvania

(3)

   New York, Ohio, western Pennsylvania, Indiana, Illinois and Kentucky

(4)

   North Carolina, South Carolina, Florida and Tennessee

 

SOURCE NVR, Inc.



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