NVR, Inc. Announces Fourth Quarter And Full Year Results

24 Jan, 2013, 08:55 ET from NVR, Inc.

RESTON, Va., Jan. 24, 2013 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December 31, 2012 of $60,627,000, $11.98 per diluted share.  Net income and diluted earnings per share for its fourth quarter ended December 31, 2012 increased 87% and 90%, respectively, when compared to the 2011 fourth quarter.  Consolidated revenues for the fourth quarter of 2012 totaled $943,738,000, a 27% increase from $741,288,000 for the comparable 2011 quarter. 

For the year ended December 31, 2012, consolidated revenues were $3,184,650,000, 20% higher than the $2,659,149,000 reported for the same period of 2011.  Net income for the year ended December 31, 2012 was $180,588,000, an increase of 40% when compared to the year ended December 31, 2011.  Diluted earnings per share for the year ended December 31, 2012 was $35.12, an increase of 53% from $23.01 per diluted share for the comparable period of 2011.

Homebuilding

New orders in the fourth quarter of 2012 increased 22% to 2,625 units, when compared to 2,158 units in the fourth quarter of 2011.  Settlements increased in the fourth quarter of 2012 to 2,788 units, 17% higher than the same period in 2011.  The Company's backlog of homes sold but not settled at the end of 2012 increased on a unit basis by 35% to 4,979 units and on a dollar basis by 49% to $1,723,914,000 when compared to the prior year end.

Homebuilding revenues for the three months ended December 31, 2012 totaled $925,363,000, 27% higher than the year earlier period.  Gross profit margins increased to 18.3% in the 2012 fourth quarter compared to 15.4% for the same period in 2011.  Income before tax from the homebuilding segment totaled $86,303,000 in the 2012 fourth quarter, an increase of 96% when compared to the fourth quarter of the previous year.

New orders for the 2012 fiscal year totaled 10,954 units, up 18% when compared to the 9,247 units reported for 2011.  Home settlements for 2012 increased 16% to 9,843 units when compared to 8,487 units settled in 2011.  Homebuilding revenues for 2012 totaled $3,121,244,000, 20% higher than 2011.  Gross profit margins increased to 17.5% in 2012 from 17.1% in 2011.  Pre-tax homebuilding income increased 31% to $240,924,000 for the 2012 fiscal year when compared to 2011.

Heartland Acquisition

On December 31, 2012, the Company completed the acquisition of Heartland Homes, Inc., which operates predominantly in the Pittsburgh, PA market.  This acquisition contributed 192 units and $81,564,000 to our backlog at the end of 2012.  In addition, the December 31, 2012 balance sheet reflects the assets acquired and liabilities assumed from this transaction.  This acquisition did not impact sales or settlements in 2012.  In addition, there was no impact to NVR's Consolidated Statements of Income for 2012.

Mortgage Banking

Mortgage closed loan production of $642,171,000 for the three months ended December 31, 2012 was 23% higher than the same period last year.  Operating income for the mortgage banking operations during the fourth quarter of 2012 increased 50% to $9,728,000, when compared to $6,506,000 reported for the same period of 2011.

Mortgage closed loan production for the 2012 fiscal year increased 18% to $2,206,092,000.  Income before tax from the mortgage banking segment for 2012 increased 49% to $34,153,000 from the $22,988,000 reported for 2011.

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)

Three Months Ended December 31,

Twelve Months Ended December 31,

2012

2011

2012

2011

(Unaudited)

(Unaudited)

Homebuilding:

Revenues                                         

$      925,363

$      728,808

$   3,121,244

$   2,611,195

Other income

1,441

639

3,486

4,301

Cost of sales

(756,396)

(616,722)

(2,575,639)

(2,165,625)

Selling, general and administrative 

(78,701)

(68,571)

(301,184)

(264,266)

Operating income 

91,707

44,154

247,907

185,605

Interest expense

(5,404)

(215)

(6,983)

(1,017)

Homebuilding income 

86,303

43,939

240,924

184,588

Mortgage Banking:

Mortgage banking fees

18,375

12,480

63,406

47,954

Interest income

999

1,913

4,504

5,702

Other income

191

145

564

456

General and administrative

(9,746)

(7,878)

(33,775)

(30,249)

Interest expense

(91)

(154)

(546)

(875)

Mortgage banking income

9,728

6,506

34,153

22,988

Income before taxes 

96,031

50,445

275,077

207,576

Income tax expense

(35,404)

(18,053)

(94,489)

(78,156)

Net income

$         60,627

$         32,392

$      180,588

$      129,420

Basic earnings per share 

$           12.38

$             6.51

$           36.04

$           23.66

Diluted earnings per share 

$           11.98

$             6.32

$           35.12

$           23.01

Basic weighted average shares outstanding 

4,897

4,979

5,011

5,469

Diluted weighted average shares outstanding 

5,060

5,126

5,142

5,624

 

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

December 31, 2012

December 31, 2011

(Unaudited)

ASSETS

Homebuilding:

Cash and cash equivalents

$               1,139,103

$                475,566

Receivables

9,421

6,789

Inventory:

Lots and housing units, covered under

sales agreements with customers

515,498

363,833

Unsold lots and housing units

81,932

82,578

Land under development

68,336

78,045

Manufacturing materials and other 

12,365

8,694

678,131

533,150

Assets related to consolidated variable interest entity

15,626

20,182

Contract land deposits, net

191,538

131,930

Property, plant and equipment, net

27,016

23,243

Reorganization value in excess of amounts

allocable to identifiable assets, net

41,580

41,580

Other assets, net

279,855

268,878

2,382,270

1,501,318

Mortgage Banking:

Cash and cash equivalents

13,498

4,766

Mortgage loans held for sale, net

188,929

252,352

Property and equipment, net

2,465

1,694

Reorganization value in excess of amounts

allocable to identifiable assets, net

7,347

7,347

Other assets

10,333

12,008

222,572

278,167

Total assets

$               2,604,842

$            1,779,485

(Continued)

 

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

December 31, 2012

December 31, 2011

(Unaudited)

LIABILITIES AND SHAREHOLDERS' EQUITY

Homebuilding:

Accounts payable

$                       163,446

$                      125,649

Accrued expenses and other liabilities

234,804

185,423

Liabilities related to consolidated variable interest entity

2,180

1,013

Non-recourse debt related to consolidated variable

interest entity

4,574

4,983

Customer deposits

99,687

61,223

Senior notes

598,988

-

1,103,679

378,291

Mortgage Banking:

Accounts payable and other liabilities

20,686

26,395

20,686

26,395

Total liabilities

1,124,365

404,686

Commitments and contingencies

Shareholders' equity:

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

authorized; 20,556,198 shares issued as of

both December 31, 2012 and December 31, 2011

206

206

Additional paid-in-capital

1,169,699

1,072,779

Deferred compensation trust – 152,223 and

152,964 shares of NVR, Inc. common

stock as of December 31, 2012 and 

December 31, 2011, respectively

(25,331)

(25,581)

Deferred compensation liability

25,331

25,581

Retained earnings

4,339,080

4,158,492

Less treasury stock at cost – 15,642,068 and

15,578,565 shares at December 31, 2012

and December 31, 2011, respectively

(4,028,508)

(3,856,678)

Total shareholders' equity

1,480,477

1,374,799

    Total liabilities and shareholders' equity

$                   2,604,842

$                  1,779,485

 

NVR, Inc.

Operating Activity

 (dollars in thousands)

(Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2012

2011

2012

2011

Homebuilding data:

New orders (units)

Mid Atlantic (1)

1,418

1,113

5,757

4,616

North East (2)

234

233

946

872

Mid East (3)

574

486

2,625

2,412

South East (4)

399

326

1,626

1,347

   Total

2,625

2,158

10,954

9,247

Average new order price

$          340.2

$          311.7

$          328.8

$          304.1

Settlements (units)

Mid Atlantic (1)

1,427

1,236

5,047

4,238

North East (2)

224

192

889

728

Mid East (3)

733

616

2,472

2,335

South East (4)

404

347

1,435

1,186

   Total

2,788

2,391

9,843

8,487

Average settlement price

$          331.9

$          304.6

$          317.1

$          307.5

Backlog (units)

Mid Atlantic (1)

2,683

1,973

North East (2)

433

376

Mid East (3)

1,152

807

South East (4)

711

520

   Total

4,979

3,676

Average backlog price

$          346.2

$          315.8

Community count (average)

414

381

404

384

Lots controlled at end of period

58,500

53,000

Mortgage banking data:

Loan closings

$     642,171

$     520,919

$  2,206,092

$  1,868,472

Capture rate

87%

88%

87%

88%

Common stock information:

Shares outstanding at end of period

4,914,130

4,977,633

Number of shares repurchased

8,500

38,323

285,495

1,017,588

Aggregate cost of shares repurchased

$          7,153

$        22,674

$     227,281

$     689,302

(1) Virginia, West Virginia, Maryland, Delaware and Washington, D.C.

(2) New Jersey and eastern Pennsylvania

(3) Kentucky, western Pennsylvania, New York, Ohio, Indiana and Illinois

(4) North Carolina, South Carolina, Tennessee and Florida

 

SOURCE NVR, Inc.



RELATED LINKS

http://www.nvrinc.com