2014

NVR, Inc. Announces Third Quarter Results

RESTON, Va., Oct. 21, 2013 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2013 of $82,935,000, $17.67 per diluted share.  Net income and diluted earnings per share for its third quarter ended September 30, 2013 increased 56% and 71%, respectively, when compared to the 2012 third quarter.  Consolidated revenues for the third quarter of 2013 totaled $1,188,967,000, a 37% increase from $870,637,000 for the comparable 2012 quarter.

For the nine months ended September 30, 2013, consolidated revenues were $2,969,115,000, 32% higher than the $2,240,912,000 reported for the same period of 2012.  Net income for the nine months ended September 30, 2013 was $168,666,000, an increase of 41% when compared to the nine months ended September 30, 2012.  Diluted earnings per share for the nine months ended September 30, 2013 was $34.13, an increase of 47% from $23.22 per diluted share for the comparable period of 2012.

Homebuilding    

New orders in the third quarter of 2013 decreased 7% to 2,381 units when compared to 2,558 units in the third quarter of 2012.  The cancellation rate in the third quarter of 2013 was 19% compared to 17% in the third quarter of 2012 and 14% in the second quarter of 2013.  Settlements increased in the third quarter of 2013 to 3,342 units, 26% higher than the same period in 2012.  The Company's backlog of homes sold but not settled as of September 30, 2013 increased on a unit basis by 14% to 5,656 units and on a dollar basis by 24% to $2,077,425,000 when compared to September 30, 2012.

Homebuilding revenues for the three months ended September 30, 2013 totaled $1,167,595,000, 37% higher than the year earlier period.  Gross profit margin in the third quarter of 2013 was 17.4% compared to 17.8% in the third quarter of 2012.  Income before tax from the homebuilding segment totaled $119,787,000 in the 2013 third quarter, an increase of 60% when compared to the third quarter of 2012.

Mortgage Banking    

Mortgage closed loan production of $695,930,000 for the three months ended September 30, 2013 was 17% higher than the same period last year.  Operating income for the mortgage banking operations during the third quarter of 2013 increased 25% to $11,803,000, when compared to $9,478,000 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 fourteen 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.heartlandluxuryhomes.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 may 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), including the possibility of a U.S. Government shutdown or the failure of the U.S. Congress to raise the debt ceiling; 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 September 30,


Nine Months Ended September 30,





2013


2012


2013


2012


Homebuilding:










Revenues                                         

$        1,167,595


$           854,396


$        2,910,673


$        2,195,881



Other income

1,030


599


3,154


2,045



Cost of sales

(964,416)


(702,436)


(2,422,789)


(1,819,243)



Selling, general and administrative 

(78,897)


(76,553)


(239,430)


(222,483)




Operating income 

125,312


76,006


251,608


156,200



Interest expense

(5,525)


(1,351)


(16,214)


(1,579)




Homebuilding income 

119,787


74,655


235,394


154,621













Mortgage Banking:










Mortgage banking fees

21,372


16,241


58,442


45,031



Interest income

1,396


1,025


3,398


3,505



Other income

218


161


509


373



General and administrative

(11,026)


(7,789)


(30,459)


(24,029)



Interest expense

(157)


(160)


(408)


(455)




Mortgage banking income

11,803


9,478


31,482


24,425













Income before taxes 

131,590


84,133


266,876


179,046















Income tax expense

(48,655)


(31,133)


(98,210)


(59,085)













Net income

$             82,935


$             53,000


$           168,666


$           119,961













Basic earnings per share 

$               18.08


$               10.60


$               35.01


$               23.76













Diluted earnings per share 

$               17.67


$               10.33


$               34.13


$               23.22













Basic weighted average shares outstanding 

4,588


4,999


4,817


5,049













Diluted weighted average shares outstanding 

4,695


5,132


4,942


5,167













 

 


NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)
















September 30, 2013


December 31, 2012


ASSETS



(Unaudited)













Homebuilding:







Cash and cash equivalents


$                  804,629


$               1,139,103



Receivables


13,137


9,421



Inventory:








Lots and housing units, covered under









sales agreements with customers


750,209


515,498




Unsold lots and housing units


97,102


81,932




Land under development


59,409


68,336




Manufacturing materials and other 


10,350


12,365







917,070


678,131












Assets related to consolidated variable interest entity

9,808


15,626



Contract land deposits, net


218,527


191,538



Property, plant and equipment, net


31,622


27,016



Reorganization value in excess of amounts








allocable to identifiable assets, net


41,580


41,580



Goodwill and finite-lived intangible assets, net


7,520


9,219



Other assets, net


287,485


270,636







2,331,378


2,382,270











Mortgage Banking:







Cash and cash equivalents


6,960


13,498



Mortgage loans held for sale, net


153,928


188,929



Property and equipment, net


4,165


2,465



Reorganization value in excess of amounts








allocable to identifiable assets, net


7,347


7,347



Other assets


15,119


10,333







187,519


222,572














Total assets


$               2,518,897


$               2,604,842











 

 


NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)













September 30, 2013


December 31, 2012


LIABILITIES AND SHAREHOLDERS' EQUITY


(Unaudited)












Homebuilding:







Accounts payable


$                  221,343


$                  163,446



Accrued expenses and other liabilities


270,750


234,804



Liabilities related to consolidated variable interest entity

2,476


2,180



Non-recourse debt related to consolidated variable







interest entity


559


4,574



Customer deposits


122,227


99,687



Senior notes


599,053


598,988






1,216,408


1,103,679










Mortgage Banking:







Accounts payable and other liabilities


27,395


20,686






27,395


20,686












Total liabilities


1,243,803


1,124,365










Commitments and contingencies














Shareholders' equity:







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








authorized; 20,555,330 and 20,556,198 shares 








issued as of September 30, 2013 and 








December 31, 2012


206


206



Additional paid-in-capital


1,208,653


1,169,699



Deferred compensation trust – 109,256 and








152,223 shares of NVR, Inc. common








stock as of September 30, 2013 and 








December 31, 2012, respectively


(17,741)


(25,331)



Deferred compensation liability


17,741


25,331



Retained earnings


4,507,746


4,339,080



Less treasury stock at cost – 16,008,428 and








15,642,068 shares at September 30, 2013








and December 31, 2012, respectively


(4,441,511)


(4,028,508)




Total shareholders' equity


1,275,094


1,480,477




    Total liabilities and shareholders' equity


$               2,518,897


$               2,604,842


































 

 

NVR, Inc.

Operating Activity

(dollars in thousands)

(Unaudited)













Three Months Ended September 30,


Nine Months Ended September 30,






2013


2012


2013


2012














Homebuilding data:











New orders (units)












Mid Atlantic (1)


1,224


1,355


4,611


4,339




North East (2)


265


217


832


712




Mid East (3)


543


576


2,325


2,051




South East (4)


349


410


1,401


1,227




   Total


2,381


2,558


9,169


8,329















Average new order price


$               367.9


$               334.7


$               355.9


$               325.2















Settlements (units)












Mid Atlantic (1)


1,700


1,339


4,331


3,620




North East (2)


264


249


714


665




Mid East (3)


890


682


2,205


1,739




South East (4)


488


386


1,242


1,031




   Total


3,342


2,656


8,492


7,055















Average settlement price


$               349.2


$               321.7


$               342.7


$               311.2















Backlog (units)












Mid Atlantic (1)






2,963


2,692




North East (2)






551


423




Mid East (3)






1,272


1,119




South East (4)






870


716




   Total






5,656


4,950















Average backlog price






$               367.3


$               338.3















Community count (average)


453


412


447


401



Lots controlled at end of period






61,500


55,500














Mortgage banking data:











Loan closings


$           695,930


$           594,867


$        1,816,146


$        1,563,921



Capture rate


79%


86%


82%


87%














Common stock information:











Shares outstanding at end of period






4,546,902


4,874,817



Number of shares repurchased


154,696


276,995


454,782


276,995



Aggregate cost of shares repurchased

$           140,830


$           220,128


$           435,809


$           220,128












(1)

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

(2)

New Jersey and eastern Pennsylvania

(3)

New York, Ohio, western Pennsylvania, Indiana and Illinois

(4)

North Carolina, South Carolina, Florida and Tennessee

 

SOURCE NVR, Inc.



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.