NVR, Inc. Announces Full Year and Fourth Quarter Results

RESTON, Va., Jan. 27 /PRNewswire-FirstCall/ -- 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, 2009 of $60,639,000, $9.61 per diluted share, compared to a net loss of $30,457,000 and diluted loss per share of $5.54 for its prior year fourth quarter.  Consolidated revenues for the fourth quarter of 2009 totaled $745,802,000, an 18% decrease from $910,174,000 for the comparable 2008 quarter.

For the year ended December 31, 2009, consolidated revenues were $2,743,848,000, 26% lower than the $3,693,039,000 reported for the year ended December 31, 2008.  Net income for the year ended December 31, 2009 was $192,180,000, compared to $100,892,000 for the year ended December 31, 2008.  Diluted earnings per share for the year ended December 31, 2009 was $31.26, an increase of 83% from $17.04 per diluted share for the comparable period of 2008.

Homebuilding

New orders in the fourth quarter of 2009 increased 47% to 2,000 units, compared to 1,357 units in the fourth quarter of 2008.  The cancellation rate in the quarter ended December 31, 2009 was 15% compared to 30% in the fourth quarter of 2008 and 14% in the third quarter of 2009.  Settlements decreased in the fourth quarter of 2009 to 2,550 units, 8% less than the same period of 2008.  

Homebuilding revenues for the quarter ended December 31, 2009 totaled $730,140,000, 19% lower than the year earlier period.  Gross profit margins increased to 18.9% in the 2009 fourth quarter compared to 2.6% for the same period in 2008.  Income before tax from homebuilding operations totaled $75,815,000 in the 2009 fourth quarter, compared to a loss of $56,978,000 in the fourth quarter of the previous year.  The fourth quarter 2008 gross profit margin results and pre-tax income were negatively impacted by a $109,800,000 land deposit impairment charge.  The fourth quarter 2008 results were also impacted by goodwill impairment charges of $11,686,000.

New orders for the 2009 fiscal year totaled 9,409 units, a 7% increase when compared to the 8,760 units reported for 2008.  Home settlements for 2009 decreased 16% to 9,042 units when compared to 10,741 units settled in 2008.  Homebuilding revenues for 2009 totaled $2,683,467,000, 26% lower than 2008.  Gross profit margins increased to 18.5% in 2009 from 12.6% in 2008.  Pre-tax homebuilding income increased to $263,083,000 for the 2009 fiscal year, an increase of 87% from the prior year.  Gross profit margins and pre-tax income were negatively impacted in 2008 by a $165,000,000 land deposit impairment charge.  The Company's backlog of homes sold but not settled at the end of 2009 increased on a unit basis by 12% to 3,531 units and on a dollar basis by 7% to $1,076,437,000 as compared to the prior year end.

Mortgage Banking

Mortgage closed loan production of $542,147,000 for the three months ended December 31, 2009 was 13% lower than the same period last year.  Income before tax for the mortgage banking operations during the fourth quarter of 2009 increased to $8,712,000, compared to $4,234,000 reported for the same period of 2008.  Pre-tax income in the current quarter was favorably impacted primarily by a decrease in incentives given to borrowers.

Mortgage closed loan production for the 2009 fiscal year decreased 12% to $2,060,376,000.  Income before tax from the mortgage banking segment for 2009 increased 32% to $35,331,000 from the $26,704,000 reported for 2008.

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.  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 variations thereof or comparable terminology, or by discussion of strategies, each of which involves risks and uncertainties.  All statements other than those of historical facts included herein, including those regarding market trends, NVR's financial position, business strategy, the outcome of pending litigation, projected plans and objectives of management for future operations, 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 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, general economic and business conditions (on both a national and regional level), interest rate changes, access to suitable financing by NVR and by NVR's customers, 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 moratoria, governmental regulation, the ability of NVR to integrate any acquired business, fluctuation and volatility of stock and other financial markets, mortgage financing availability and other factors over which NVR has little or no control.  The Company has no obligation to update such forward-looking statements.

(Continued)

SOURCE NVR, Inc.