NVR, Inc. Announces First Quarter Results

RESTON, Va., April 21, 2015 /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, 2015 of $39,058,000 or $9.22 per diluted share. Net income and diluted earnings per share for its first quarter ended March 31, 2015 increased 64% and 79%, respectively, when compared to the 2014 first quarter. Consolidated revenues for the first quarter of 2015 totaled $957,749,000, an 18% increase from $811,310,000 for the comparable 2014 quarter. Net income in the first quarter of 2014 was negatively impacted by the previously disclosed $6,879,000 reversal of certain income tax deductions.

Homebuilding

New orders in the first quarter of 2015 increased 18% to 3,926 units, when compared to 3,325 units in the first quarter of 2014. The average sales price of new orders increased to $375,400, a 2% increase from the first quarter of 2014.  The cancellation rate in both the first quarter of 2015 and 2014 was 12%.  Settlements increased in the first quarter of 2015 to 2,534 units, 15% higher than the first quarter of 2014. The Company's backlog of homes sold but not settled as of March 31, 2015 increased on a unit basis by 13% to 6,867 units and increased on a dollar basis by 16% to $2,639,047,000 when compared to March 31, 2014.

Homebuilding revenues for the three months ended March 31, 2015 totaled $941,538,000, 18% higher than the year earlier period. Gross profit margins decreased to 17.0% in the 2015 first quarter compared to 18.0% for the same period in 2014. Income before tax from the homebuilding segment totaled $56,584,000 in the first quarter of 2015, an increase of 16% when compared to the first quarter of 2014.

Mortgage Banking

Mortgage closed loan production of $638,627,000 for the three months ended March 31, 2015 increased by 35% when compared to the first quarter ended March 31, 2014. Operating income for the mortgage banking operations during the first quarter of 2015 was $5,779,000, compared to $991,000 reported for the first quarter of 2014. Operating income in the first quarter of 2015 was favorably impacted by an increase in capture rate to 87% in the first quarter of 2015, compared to 78% in the first quarter of 2014, and improved leveraging of general and administrative expenses.

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); 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.

SOURCE NVR, Inc.