NVR, Inc. Announces First Quarter Results

                  NVR, Inc. Announces First Quarter Results

PR Newswire

RESTON, Va., April 21, 2014

RESTON, Va., April 21, 2014 /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, 2014 of $23,849,000 or $5.16 per
diluted share. Net income and diluted earnings per share for its first
quarter ended March 31, 2014 decreased 32% and 25%, respectively, when
compared to the 2013 first quarter. Consolidated revenues for the first
quarter of 2014 totaled $811,310,000, a 5% increase from $770,256,000 for the
comparable 2013 quarter. Income tax expense for the quarter was negatively
impacted by $6,879,000 due to the reversal of certain previously recognized
tax deductions.

Homebuilding

New orders in the first quarter of 2014 decreased 5% to 3,325 units, when
compared to 3,510 units in the first quarter of 2013. The cancellation rate
in the first quarter of 2014 was 12% compared to 13% in the first quarter of
2013 and 14% in the fourth quarter of 2013. Settlements decreased in the
first quarter of 2014 to 2,211 units, 3% lower than the first quarter of 2013.
The Company's backlog of homes sold but not settled as of March 31, 2014
decreased on a unit basis by 3% to 6,059 units, but increased on a dollar
basis by 4% to $2,270,474,000 when compared to March 31, 2013.

Homebuilding revenues for the three months ended March 31, 2014 totaled
$799,187,000, 6% higher than the year earlier period. Gross profit margins
increased to 18.0% in the 2014 first quarter compared to 16.9% for the same
period in 2013. The increase in selling, general and administrative expenses
was primarily due to higher personnel and selling expenses associated with the
increase in the number of communities. Income before tax from the
homebuilding segment totaled $48,716,000 in the first quarter of 2014, an
increase of 11% when compared to the first quarter of 2013.

Mortgage Banking

Mortgage closed loan production of $472,933,000 for the three months ended
March 31, 2014 was flat when compared to the first quarter ended March 31,
2013. Operating income for the mortgage banking operations during the first
quarter of 2014 decreased 91% to $991,000, when compared to $11,161,000
reported for the first quarter of 2013. Operating income in the first quarter
of 2014 was negatively impacted by a more competitive mortgage lending market,
resulting in reduced loan profitability. In addition, general and
administrative expenses were higher due to increased staffing in response to
increased mortgage regulations and expected higher loan volume.

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.



NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)
                                                   Three Months Ended March
                                                   31,
                                                   2014           2013
Homebuilding:
 Revenues $           $   
                                                   799,187       750,868
 Other income                                      997            1,026
 Cost of sales                                     (655,152)      (624,085)
 Selling, general and administrative              (90,632)       (78,413)
               Operating income                   54,400         49,396
 Interest expense                                  (5,684)        (5,452)
               Homebuilding income                48,716         43,944
Mortgage Banking:
 Mortgage banking fees                             12,123         19,388
 Interest income                                   1,184          955
 Other income                                      59             113
 General and administrative                        (12,265)       (9,181)
 Interest expense                                  (110)          (114)
               Mortgage banking income             991            11,161
Income before taxes                               49,707         55,105
               Income tax expense                  (25,858)       (20,064)
Net income                                         $          $    
                                                   23,849        35,041
Basic earnings per share                          $        $     
                                                   5.34           7.04
Diluted earnings per share                        $        $     
                                                   5.16           6.84
Basic weighted average shares outstanding         4,467          4,979
Diluted weighted average shares outstanding       4,620          5,122



NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)
                                          March 31, 2014     December 31, 2013
ASSETS                                    (Unaudited)
Homebuilding:
 Cash and cash equivalents                $          $        
                                          874,062           844,274
 Receivables                              10,055             9,529
 Inventory:
      Lots and housing units, covered
      under
             sales agreements with        687,080            568,831
             customers
      Unsold lots and housing units       98,478             117,467
      Land under development              46,083             41,328
      Building materials and other       10,357             10,939
                                          841,998            738,565
 Assets related to consolidated variable  6,588              7,268
 interest entity
 Contract land deposits, net              246,204            236,885
 Property, plant and equipment, net       34,321             32,599
 Reorganization value in excess of
 amounts
      allocable to identifiable assets,   41,580             41,580
      net
 Goodwill and finite-lived intangible     6,401              6,747
 assets, net
 Other assets                             311,684            307,933
                                          2,372,893          2,225,380
Mortgage Banking:
 Cash and cash equivalents                4,477              21,311
 Mortgage loans held for sale, net        123,833            210,641
 Property and equipment, net              4,999              4,699
 Reorganization value in excess of
 amounts
      allocable to identifiable assets,   7,347              7,347
      net
 Other assets                             11,204             16,770
                                          151,860            260,768
             Total assets                 $           $      
                                          2,524,753          2,486,148



LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
 Accounts payable                         $          $        
                                          186,459           181,687
 Accrued expenses and other liabilities   271,875            316,227
 Liabilities related to consolidated      1,689              1,646
 variable interest entity
 Non-recourse debt related to
 consolidated variable
      interest entity                     2,153              3,365
 Customer deposits                        119,101            101,022
 Senior notes                             599,098            599,075
                                          1,180,375          1,203,022
Mortgage Banking:
 Accounts payable and other liabilities   18,296             21,774
                                          18,296             21,774
      Total liabilities                   1,198,671          1,224,796
Commitments and contingencies
Shareholders' equity:
 Common stock, $0.01 par value;
 60,000,000 shares
      authorized; 20,555,330 shares
      issued as of
      both March 31, 2014 and December    206                206
      31, 2013
 Additional paid-in-capital               1,259,410          1,212,050
 Deferred compensation trust – 109,256
 shares of
      NVR, Inc. common stock as of
      both
      March 31, 2014 and December 31,     (17,741)           (17,741)
      2013
 Deferred compensation liability          17,741             17,741
 Retained earnings                        4,629,406          4,605,557
 Less treasury stock at cost –
 16,061,912 and
      16,121,605 shares at March 31,
      2014
      and December 31, 2013,              (4,562,940)        (4,556,461)
      respectively
      Total shareholders' equity          1,326,082          1,261,352
       Total liabilities and           $           $      
      shareholders' equity                2,524,753          2,486,148



NVR, Inc.
Operating Activity

(dollars in thousands)

(Unaudited)
                                    Three Months Ended March 31,
                                    2014                2013
Homebuilding data:
 New orders (units)
             Mid Atlantic (1)       1,675               1,716
             North East (2)         298                 293
             Mid East (3)           891                 949
             South East (4)         461                 552
              Total               3,325               3,510
 Average new order price            $      368.1  $      343.0
 Settlements (units)
             Mid Atlantic (1)       1,124               1,138
             North East (2)         233                 191
             Mid East (3)           478                 593
             South East (4)         376                 350
              Total               2,211               2,272
 Average settlement price           $      361.4  $      330.4
 Backlog (units)
             Mid Atlantic (1)       3,261               3,261
             North East (2)         560                 535
             Mid East (3)           1,445               1,508
             South East (4)         793                 913
              Total               6,059               6,217
 Average backlog price              $      374.7  $      350.6
 Community count (average)          481                 435
 Lots controlled at end of period   65,800              59,700
Mortgage banking data:
 Loan closings                      $    472,933    $    473,766
 Capture rate                       78%                 84%
Common stock information:
 Shares outstanding at end of       4,493,418           4,996,884
 period
 Number of shares repurchased       32,377              -
 Aggregate cost of shares           $     32,578   $          -
 repurchased



(1) Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2) New Jersey and eastern Pennsylvania
(3) New York, Ohio, western Pennsylvania, Indiana and Illinois
(4) North Carolina, South Carolina, Tennessee and Florida



SOURCE NVR, Inc.

Contact: Curt McKay, Office: (703) 956-4058
 
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