NVR, Inc. Announces a 57% Increase in Net Income For the First Quarter of 2001

Apr 20, 2001, 01:00 ET from NVR, Inc.

    MCLEAN, Va., April 20 /PRNewswire Interactive News Release/ -- NVR, Inc.
 (Amex:   NVR) today reported net income of $47,920,000, $4.84 per diluted share,
 for the quarter ended March 31, 2001, compared to $30,574,000, $2.90 per
 diluted share, for the same quarter of 2000.  Excluding a $5,926,000 pre-tax
 charge for restructuring its mortgage banking operations, net income for the
 first quarter of 2000 was $34,218,000, $3.24 per diluted share.  Total
 revenues increased 6% to $531,696,000 for the quarter when compared to
 $501,264,000 for the same period of 2000.  New orders for the first quarter of
 2001 totaled 2,823 units, an 8% increase over the 2,609 units reported for the
 2000 first quarter.  Home settlements for the current quarter decreased 1% to
 2,206 units when compared to the same quarter of 2000.  In addition, the
 Company's backlog of homes sold but not settled at the end of the 2001 quarter
 increased on a unit basis by 9% to 5,765 units and 17% on a dollar basis to
 $1,490,932,000 when compared to the same time last year.
     Homebuilding revenues for the first three months of 2001 totaled
 $519,249,000, an increase of 6% over the same period of 2000.  Income before
 tax from the homebuilding segment totaled $74,042,000, an increase of 30%,
 when compared to the first quarter of the previous year.  Gross profit margins
 for the three months ended March 31, 2001 were 21.6%, up from 18.5% for the
 2000 first quarter.  The Company's continued focus on controlling costs and
 favorable market conditions were credited for the improvement in gross
 margins.
     Mortgage banking operating income totaled $5,825,000 for the first quarter
 of 2001 compared to an operating loss of $5,397,000 for the same period of
 2000.  During the first quarter of 2000, the Company aligned its mortgage
 banking business to serve the NVR homebuilding customer, exclusively.  As a
 result, during the 2000 period the mortgage banking segment incurred a
 $5,926,000 pre-tax charge to recognize the cost of closing the Company's
 remaining retail operations.  As a result of the restructuring, closed loan
 production declined 23% to $359,475,000 when compared to $469,598,000 reported
 for the first quarter of 2000.
     Looking forward to the second quarter of 2001, the Company reported that
 it expects to exceed 2000 second quarter net income by approximately 30% as a
 result of increased home closings, improved gross profit margins and improved
 operating income from its mortgage banking operations.  In addition, the
 Company stated that it expects full-year 2001 net income to exceed 2000 net
 income by approximately 25%.
     The Company also stated that its stock repurchase program is continuing.
 During the first quarter, NVR repurchased approximately 849,000 shares of its
 common stock.
     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.  All statements other than of historical facts
 included herein, including those regarding market trends, the Company's
 financial position, business strategy, projected plans and objectives of
 management for future operations, mortgage banking operating income, new order
 trends, home settlement activity, average home prices, gross profit margins
 and other profitability measures, net income and earnings per share are
 forward-looking statements.  Such forward-looking statements involve known and
 unknown risks, uncertainties and other factors that may cause the actual
 results or performance of the Company 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,
 general economic conditions (on both a national and regional level), interest
 rate changes, access to suitable financing, competition, the availability and
 cost of land and other raw materials used by the Company in its homebuilding
 operations, shortages of labor, weather related slow downs, building
 moratoria, governmental regulation, the ability of the Company to integrate
 any acquired business, certain conditions in financial markets and other
 factors over which the Company has little or no control.  The Company has no
 obligation to update such forward-looking statements.
 
 
                                   NVR, Inc.
                  Condensed Consolidated Statements of Income
                 (dollars in thousands, except per share data)
                                  (unaudited)
 
                                      Three Months Ended   Three Months Ended
                                         March 31, 2001      March 31, 2000
 
     Homebuilding:
      Revenues                               $519,249            $490,581
      Other income                              1,058                 615
      Cost of sales                          (407,165)           (399,677)
      Selling, general and
       administrative                         (34,516)            (29,409)
      Amortization of reorganization value
       in excess of amounts allocable to
       identifiable assets/goodwill            (1,813)             (1,813)
      Operating income                         76,813              60,297
      Interest expense                         (2,771)             (3,342)
       Homebuilding income                     74,042              56,955
 
     Mortgage Banking:
      Mortgage banking fees                     9,990               7,963
      Interest income                           1,258               2,038
      Other income                                141                  67
      General and administrative               (4,918)             (8,142)
      Amortization of reorganization value
       in excess of amounts allocable to
       identifiable assets/goodwill              (272)               (436)
      Interest expense                           (374)               (961)
      Restructuring and asset
       impairment charge                            -              (5,926)
       Operating income/(loss)                  5,825              (5,397)
 
     Total segment income                      79,867              51,558
 
     Income tax expense                       (31,947)            (20,984)
 
     Net income                              $ 47,920            $ 30,574
 
     Basic earnings per share                   $5.74               $3.22
 
     Diluted earnings per share                 $4.84               $2.90
 
 
                                   NVR, Inc.
                     Condensed Consolidated Balance Sheets
                   (dollars in thousands, except share data)
 
                                      March 31, 2001     December 31, 2000
                                        (unaudited)
 
     ASSETS
 
      Homebuilding:
       Cash and cash equivalents           $ 97,045           $130,079
       Receivables                           10,231              6,670
       Inventory:
        Lots and housing units,
         covered under sales
         agreements with customers          335,270            294,094
        Unsold lots and housing units        31,674             32,600
        Manufacturing materials and
         other                                6,772              7,987
                                            373,716            334,681
 
       Property, plant and equipment,
        net                                  13,068             13,514
       Reorganization value in excess
        of amounts allocable to
        identifiable assets, net             46,201             47,741
       Goodwill, net                          7,199              7,472
       Contract land deposits               111,707             96,119
       Deferred tax assets                   43,844             43,844
       Other assets                          25,552             17,366
                                            728,563            697,486
      Mortgage Banking:
       Cash and cash equivalents             12,233              7,629
       Mortgage loans held for
        sale, net                           118,509            120,999
       Mortgage servicing rights, net         1,400              1,479
       Property and equipment, net            2,181              2,351
       Reorganization value in
        excess of amounts allocable
        to identifiable assets, net           8,162              8,435
       Other assets                           3,044              2,881
                                            145,529            143,774
 
       Total assets                        $874,092           $841,260
 
 
                                   NVR, Inc.
               Condensed Consolidated Balance Sheets (continued)
                   (dollars in thousands, except share data)
 
                                      March 31, 2001     December 31, 2000
                                        (unaudited)
 
     LIABILITIES AND SHAREHOLDERS'
      EQUITY
 
      Homebuilding:
       Accounts payable                    $112,209            $108,064
       Accrued expenses and other
        liabilities                         162,870             173,787
       Customer deposits                     72,834              63,486
       Notes payable                            120                 210
       Other term debt                        4,868               4,957
       Senior notes                         115,000             115,000
                                            467,901             465,504
      Mortgage Banking:
       Accounts payable and other
        liabilities                          10,036               9,760
       Notes payable                        106,204              53,488
                                            116,240              63,248
 
       Total liabilities                    584,141             528,752
 
       Forward purchase contract
        obligation                               --              65,028
 
      Commitments and contingencies
 
      Shareholders' equity:
       Common stock, $0.01 par
        value; 60,000,000
        shares authorized; 20,614,365
        shares issued as of
        March 31, 2001 and
        December 31, 2000                       206                 206
       Additional paid-in-capital           187,083             115,136
       Deferred compensation trust -
        367,618 and 337,703 shares
        as of March 31, 2001 and
        December 31, 2000, respectively,
        of NVR, Inc. common stock           (19,457)            (15,915)
       Deferred compensation liability       19,457              15,915
       Retained earnings                    447,730             399,810
       Less treasury stock at
        cost - 12,405,496 and
        11,755,671 shares at
        March 31, 2001 and
        December 31, 2000,
        respectively                       (345,068)           (267,672)
       Total shareholders' equity           289,951             247,480
 
       Total liabilities and
        shareholders' equity               $874,092            $841,260
 
 
                                   NVR, Inc.
                               Operating Activity
                                  (unaudited)
                             (dollars in thousands)
 
                                                Three Months Ended March 31,
                                                      2001           2000
     Homebuilding data:
      New orders (units)                                2,823          2,609
      New orders (dollars)                           $690,796       $623,917
      Settlements (units)                               2,206          2,236
      Backlog (units)                                   5,765          5,308
      Backlog (dollars)                            $1,490,932     $1,273,407
 
     Mortgage banking data:
      Loan closings                                  $359,475       $469,598
 
     Common stock information:
      Shares outstanding at end of period           8,208,869      9,391,360
      Weighted average shares outstanding           8,352,000      9,491,000
      Diluted shares outstanding                    9,894,000     10,560,000
 
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SOURCE NVR, Inc.
    MCLEAN, Va., April 20 /PRNewswire Interactive News Release/ -- NVR, Inc.
 (Amex:   NVR) today reported net income of $47,920,000, $4.84 per diluted share,
 for the quarter ended March 31, 2001, compared to $30,574,000, $2.90 per
 diluted share, for the same quarter of 2000.  Excluding a $5,926,000 pre-tax
 charge for restructuring its mortgage banking operations, net income for the
 first quarter of 2000 was $34,218,000, $3.24 per diluted share.  Total
 revenues increased 6% to $531,696,000 for the quarter when compared to
 $501,264,000 for the same period of 2000.  New orders for the first quarter of
 2001 totaled 2,823 units, an 8% increase over the 2,609 units reported for the
 2000 first quarter.  Home settlements for the current quarter decreased 1% to
 2,206 units when compared to the same quarter of 2000.  In addition, the
 Company's backlog of homes sold but not settled at the end of the 2001 quarter
 increased on a unit basis by 9% to 5,765 units and 17% on a dollar basis to
 $1,490,932,000 when compared to the same time last year.
     Homebuilding revenues for the first three months of 2001 totaled
 $519,249,000, an increase of 6% over the same period of 2000.  Income before
 tax from the homebuilding segment totaled $74,042,000, an increase of 30%,
 when compared to the first quarter of the previous year.  Gross profit margins
 for the three months ended March 31, 2001 were 21.6%, up from 18.5% for the
 2000 first quarter.  The Company's continued focus on controlling costs and
 favorable market conditions were credited for the improvement in gross
 margins.
     Mortgage banking operating income totaled $5,825,000 for the first quarter
 of 2001 compared to an operating loss of $5,397,000 for the same period of
 2000.  During the first quarter of 2000, the Company aligned its mortgage
 banking business to serve the NVR homebuilding customer, exclusively.  As a
 result, during the 2000 period the mortgage banking segment incurred a
 $5,926,000 pre-tax charge to recognize the cost of closing the Company's
 remaining retail operations.  As a result of the restructuring, closed loan
 production declined 23% to $359,475,000 when compared to $469,598,000 reported
 for the first quarter of 2000.
     Looking forward to the second quarter of 2001, the Company reported that
 it expects to exceed 2000 second quarter net income by approximately 30% as a
 result of increased home closings, improved gross profit margins and improved
 operating income from its mortgage banking operations.  In addition, the
 Company stated that it expects full-year 2001 net income to exceed 2000 net
 income by approximately 25%.
     The Company also stated that its stock repurchase program is continuing.
 During the first quarter, NVR repurchased approximately 849,000 shares of its
 common stock.
     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.  All statements other than of historical facts
 included herein, including those regarding market trends, the Company's
 financial position, business strategy, projected plans and objectives of
 management for future operations, mortgage banking operating income, new order
 trends, home settlement activity, average home prices, gross profit margins
 and other profitability measures, net income and earnings per share are
 forward-looking statements.  Such forward-looking statements involve known and
 unknown risks, uncertainties and other factors that may cause the actual
 results or performance of the Company 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,
 general economic conditions (on both a national and regional level), interest
 rate changes, access to suitable financing, competition, the availability and
 cost of land and other raw materials used by the Company in its homebuilding
 operations, shortages of labor, weather related slow downs, building
 moratoria, governmental regulation, the ability of the Company to integrate
 any acquired business, certain conditions in financial markets and other
 factors over which the Company has little or no control.  The Company has no
 obligation to update such forward-looking statements.
 
 
                                   NVR, Inc.
                  Condensed Consolidated Statements of Income
                 (dollars in thousands, except per share data)
                                  (unaudited)
 
                                      Three Months Ended   Three Months Ended
                                         March 31, 2001      March 31, 2000
 
     Homebuilding:
      Revenues                               $519,249            $490,581
      Other income                              1,058                 615
      Cost of sales                          (407,165)           (399,677)
      Selling, general and
       administrative                         (34,516)            (29,409)
      Amortization of reorganization value
       in excess of amounts allocable to
       identifiable assets/goodwill            (1,813)             (1,813)
      Operating income                         76,813              60,297
      Interest expense                         (2,771)             (3,342)
       Homebuilding income                     74,042              56,955
 
     Mortgage Banking:
      Mortgage banking fees                     9,990               7,963
      Interest income                           1,258               2,038
      Other income                                141                  67
      General and administrative               (4,918)             (8,142)
      Amortization of reorganization value
       in excess of amounts allocable to
       identifiable assets/goodwill              (272)               (436)
      Interest expense                           (374)               (961)
      Restructuring and asset
       impairment charge                            -              (5,926)
       Operating income/(loss)                  5,825              (5,397)
 
     Total segment income                      79,867              51,558
 
     Income tax expense                       (31,947)            (20,984)
 
     Net income                              $ 47,920            $ 30,574
 
     Basic earnings per share                   $5.74               $3.22
 
     Diluted earnings per share                 $4.84               $2.90
 
 
                                   NVR, Inc.
                     Condensed Consolidated Balance Sheets
                   (dollars in thousands, except share data)
 
                                      March 31, 2001     December 31, 2000
                                        (unaudited)
 
     ASSETS
 
      Homebuilding:
       Cash and cash equivalents           $ 97,045           $130,079
       Receivables                           10,231              6,670
       Inventory:
        Lots and housing units,
         covered under sales
         agreements with customers          335,270            294,094
        Unsold lots and housing units        31,674             32,600
        Manufacturing materials and
         other                                6,772              7,987
                                            373,716            334,681
 
       Property, plant and equipment,
        net                                  13,068             13,514
       Reorganization value in excess
        of amounts allocable to
        identifiable assets, net             46,201             47,741
       Goodwill, net                          7,199              7,472
       Contract land deposits               111,707             96,119
       Deferred tax assets                   43,844             43,844
       Other assets                          25,552             17,366
                                            728,563            697,486
      Mortgage Banking:
       Cash and cash equivalents             12,233              7,629
       Mortgage loans held for
        sale, net                           118,509            120,999
       Mortgage servicing rights, net         1,400              1,479
       Property and equipment, net            2,181              2,351
       Reorganization value in
        excess of amounts allocable
        to identifiable assets, net           8,162              8,435
       Other assets                           3,044              2,881
                                            145,529            143,774
 
       Total assets                        $874,092           $841,260
 
 
                                   NVR, Inc.
               Condensed Consolidated Balance Sheets (continued)
                   (dollars in thousands, except share data)
 
                                      March 31, 2001     December 31, 2000
                                        (unaudited)
 
     LIABILITIES AND SHAREHOLDERS'
      EQUITY
 
      Homebuilding:
       Accounts payable                    $112,209            $108,064
       Accrued expenses and other
        liabilities                         162,870             173,787
       Customer deposits                     72,834              63,486
       Notes payable                            120                 210
       Other term debt                        4,868               4,957
       Senior notes                         115,000             115,000
                                            467,901             465,504
      Mortgage Banking:
       Accounts payable and other
        liabilities                          10,036               9,760
       Notes payable                        106,204              53,488
                                            116,240              63,248
 
       Total liabilities                    584,141             528,752
 
       Forward purchase contract
        obligation                               --              65,028
 
      Commitments and contingencies
 
      Shareholders' equity:
       Common stock, $0.01 par
        value; 60,000,000
        shares authorized; 20,614,365
        shares issued as of
        March 31, 2001 and
        December 31, 2000                       206                 206
       Additional paid-in-capital           187,083             115,136
       Deferred compensation trust -
        367,618 and 337,703 shares
        as of March 31, 2001 and
        December 31, 2000, respectively,
        of NVR, Inc. common stock           (19,457)            (15,915)
       Deferred compensation liability       19,457              15,915
       Retained earnings                    447,730             399,810
       Less treasury stock at
        cost - 12,405,496 and
        11,755,671 shares at
        March 31, 2001 and
        December 31, 2000,
        respectively                       (345,068)           (267,672)
       Total shareholders' equity           289,951             247,480
 
       Total liabilities and
        shareholders' equity               $874,092            $841,260
 
 
                                   NVR, Inc.
                               Operating Activity
                                  (unaudited)
                             (dollars in thousands)
 
                                                Three Months Ended March 31,
                                                      2001           2000
     Homebuilding data:
      New orders (units)                                2,823          2,609
      New orders (dollars)                           $690,796       $623,917
      Settlements (units)                               2,206          2,236
      Backlog (units)                                   5,765          5,308
      Backlog (dollars)                            $1,490,932     $1,273,407
 
     Mortgage banking data:
      Loan closings                                  $359,475       $469,598
 
     Common stock information:
      Shares outstanding at end of period           8,208,869      9,391,360
      Weighted average shares outstanding           8,352,000      9,491,000
      Diluted shares outstanding                    9,894,000     10,560,000
 
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 SOURCE  NVR, Inc.