NVR, Inc. Announces Fourth Quarter And Full Year Results

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

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