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NVR, Inc. Announces Fourth Quarter And Full Year Results

           NVR, Inc. Announces Fourth Quarter And Full Year Results

PR Newswire

RESTON, Va., Jan. 24, 2013

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.
Consolidated Statements of Income
(in thousands, except per share data)
                                                    Three Months Ended    Twelve Months Ended
                                                    December 31,          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.
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     515,498            363,833
                customers
         Unsold lots and housing units    81,932             82,578
         Land under development           68,336             78,045
         Manufacturing materials and      12,365             8,694
         other
                                          678,131            533,150
    Assets related to consolidated        15,626             20,182
    variable interest entity
    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        41,580             41,580
         assets, net
    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        7,347              7,347
         assets, net
    Other assets                          10,333             12,008
                                          222,572            278,167
                Total assets              $           $     
                                          2,604,842          1,779,485
                                                             (Continued)



NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
                                      December 31, 2012    December 31, 2011
                                      (Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
 Accounts payable                     $           $         
                                        163,446           125,649
 Accrued expenses and other           234,804              185,423
 liabilities
 Liabilities related to consolidated  2,180                1,013
 variable interest entity
 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           20,686               26,395
 liabilities
                                      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      206                  206
      December 31, 2011
 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,              (25,331)             (25,581)
      respectively
 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,          (4,028,508)          (3,856,678)
      respectively
      Total shareholders' equity      1,480,477            1,374,799
       Total liabilities and       $           $        
      shareholders' equity            2,604,842            1,779,485



NVR, Inc.
Operating Activity
(dollars in thousands)
(Unaudited)
                            Three Months Ended    Twelve Months Ended December
                            December 31,          31,
                            2012       2011       2012           2011
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
 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                        58,500         53,000
 period
Mortgage banking data:
 Loan closings              $        $        $ 2,206,092   $ 1,868,472
                            642,171    520,919
 Capture rate               87%        88%        87%            88%
Common stock information:
 Shares outstanding at end                        4,914,130      4,977,633
 of period
 Number of shares           8,500      38,323     285,495        1,017,588
 repurchased
 Aggregate cost of shares   $      $       $   227,281  $   689,302
 repurchased                7,153     22,674
(1) Virginia, West Virginia, Maryland, Delaware and Washington, D.C.
(2) New Jersey and eastern Pennsylvania
(3) Kentucky, western Pennsylvania, New York, Ohio, Indiana and Illinois
(4) North Carolina, South Carolina, Tennessee and Florida



SOURCE NVR, Inc.

Website: http://www.nvrinc.com
Contact: Dan Malzahn, +1-703-956-4204
 
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