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. |
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Consolidated Statements of Income |
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(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. |
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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. |
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Consolidated Balance Sheets (Continued) |
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(in thousands, except share and per share data) |
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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 |
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(dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||
2012 |
2011 |
2012 |
2011 |
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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 |
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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 |
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Mortgage banking data: |
||||||||||
Loan closings |
$ 642,171 |
$ 520,919 |
$ 2,206,092 |
$ 1,868,472 |
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Capture rate |
87% |
88% |
87% |
88% |
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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 |
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(1) Virginia, West Virginia, Maryland, Delaware and Washington, D.C. |
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(2) New Jersey and eastern Pennsylvania |
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(3) Kentucky, western Pennsylvania, New York, Ohio, Indiana and Illinois |
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(4) North Carolina, South Carolina, Tennessee and Florida |
SOURCE NVR, Inc.
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