NVR, Inc. Announces Fourth Quarter and Full Year Results

RESTON, Va., Jan. 26, 2016 /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, 2015 of $134,004,000, or $31.92 per diluted share.  Net income and diluted earnings per share for the fourth quarter ended December 31, 2015 increased 35% and 37%, respectively, when compared to the 2014 fourth quarter. Consolidated revenues for the fourth quarter of 2015 totaled $1,555,275,000, a 17% increase from $1,328,038,000 for the comparable 2014 quarter.

For the year ended December 31, 2015, consolidated revenues were $5,159,008,000, 16% higher than the $4,444,568,000 reported for the same period of 2014.  Net income for the year ended December 31, 2015 was $382,927,000, an increase of 36% when compared to the year ended December 31, 2014.  Diluted earnings per share for the year ended December 31, 2015 was $89.99, an increase of 42% from $63.50 per diluted share for the comparable period of 2014.

Homebuilding

New orders in the fourth quarter of 2015 increased 14% to 3,100 units, when compared to 2,713 units in the fourth quarter of 2014. The average sales price of new orders in the fourth quarter of 2015 was $383,300, a decrease of 1% when compared with the fourth quarter of 2014.  The cancellation rate in the fourth quarter of 2015 was 16%, compared with 18% in the fourth quarter of 2014.  Settlements increased in the fourth quarter of 2015 to 4,010 units, 16% higher than the fourth quarter of 2014.  The Company's backlog of homes sold but not settled as of December 31, 2015 increased on a unit basis by 14% to 6,229 units and increased on a dollar basis by 13% to $2,375,182,000 when compared to December 31, 2014.

Homebuilding revenues for the three months ended December 31, 2015 totaled $1,528,084,000, 17% higher than the year earlier period.  Gross profit margin in the fourth quarter of 2015 was 18.9%, compared to 18.1% in the fourth quarter of 2014.  Income before tax from the homebuilding segment totaled $192,623,000 in the fourth quarter of 2015, an increase of 38% when compared to the fourth quarter of 2014.

New orders for the year ended December 31, 2015 increased 14% to 14,080 units, when compared to 12,389 units in 2014.  Home settlements increased 12% year over year to 13,326 units in 2015 from 11,859 units settled in 2014.  Homebuilding revenues for the year ended December 31, 2015 totaled $5,065,200,000, which is 16% higher than 2014.  Gross profit margin for the year ended December 31, 2015 was 18.7%, compared to 18.4% in 2014.  Income before tax for the homebuilding segment for the year ended December 31, 2015 was $555,329,000, a 30% increase when compared to 2014.

Mortgage Banking

Mortgage closed loan production for the three months ended December 31, 2015 totaled $1,042,440,000, an increase of 18% when compared to the three months ended December 31, 2014. Operating income for the mortgage banking operations during the fourth quarter of 2015 was $14,546,000, compared to $11,145,000 reported for the fourth quarter of 2014. 

Mortgage closed loan production for the year ended December 31, 2015 increased 23% to $3,492,342,000.  Income before tax from the mortgage banking segment for the year ended December 31, 2015 increased to $47,883,000 from $25,662,000 in 2014.

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-eight 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.