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NVR, Inc. Announces Second Quarter Results

                  NVR, Inc. Announces Second Quarter Results

PR Newswire

RESTON, Va., July 21, 2014

RESTON, Va., July 21, 2014 /PRNewswire/ --NVR, Inc. (NYSE: NVR), one of the
nation's largest homebuilding and mortgage banking companies, announced net
income for its second quarter ended June 30, 2014 of $68,178,000,or $15.17 per
diluted share. Net income and diluted earnings per share for its second
quarter ended June 30, 2014 increased 34% and 50%, respectively, when compared
to the 2013 second quarter. Consolidated revenues for the second quarter of
2014 totaled $1,102,054,000, a 9% increase from $1,009,892,000 for the
comparable 2013 quarter.

For the six months ended June 30, 2014, consolidated revenues were
$1,913,364,000, 7% higher than the $1,780,148,000 reported for the same period
of 2013. Net income for the six months ended June 30, 2014 was $92,027,000,
an increase of 7% when compared to the six months ended June 30, 2013.
Diluted earnings per share for the six months ended June 30, 2014 was $20.19,
an increase of 19% from $16.92 per diluted share for the comparable period of
2013.

Homebuilding

New orders in the second quarter of 2014 increased 4% to 3,415 units when
compared to 3,278 units in the second quarter of 2013. The cancellation rate
in the second quarter of 2014 was 13% compared to 14% in the second quarter of
2013 and 12% in the first quarter of 2014. Settlements increased in the
second quarter of 2014 to 2,943 units, 2% higher than the same period in 2013.
The Company's backlog of homes sold but not settled as of June 30, 2014
decreased on a unit basis by 1% to 6,531 units, but increased on a dollar
basis by 3% to $2,443,238,000 when compared to June 30, 2013.

Homebuilding revenues for the three months ended June 30, 2014 totaled
$1,084,080,000, 9% higher than the year earlier period. Gross profit margin
in the second quarter of 2014 was 18.6% compared to 15.9% in the second
quarter of 2013. Gross profit margin in the second quarter of 2013 was
negatively impacted by a previously disclosed service related accrual which
reduced gross profit margin by 157 basis points of revenue. Income before tax
from the homebuilding segment totaled $102,578,000 in the 2014 second quarter,
an increase of 43% when compared to the second quarter of 2013.

Mortgage Banking

Mortgage closed loan production of $675,625,000 for the three months ended
June 30, 2014 was 5% higher than the same period last year. Operating income
for the mortgage banking operations during the second quarter of 2014
decreased 27% to $6,246,000, when compared to $8,518,000 reported for the same
period of 2013.

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     Six Months Ended June
                                                   June 30,               30,
                                                   2014        2013       2014         2013
Homebuilding:
 Revenues $          $        $          $ 
                                                   1,084,080  992,210    1,883,267    1,743,078
 Other income                                      452         1,098      1,449        2,124
 Cost of sales                                     (882,778)   (834,288)  (1,537,930)  (1,458,373)
 Selling, general and administrative              (93,583)    (82,120)   (184,215)    (160,533)
               Operating income                   108,171     76,900     162,571      126,296
 Interest expense                                  (5,593)     (5,237)    (11,277)     (10,689)
               Homebuilding income                102,578     71,663     151,294      115,607
Mortgage Banking:
 Mortgage banking fees                             17,974      17,682     30,097       37,070
 Interest income                                   825         1,047      2,009        2,002
 Other income                                      194         178        253          291
 General and administrative                        (12,617)    (10,252)   (24,882)     (19,433)
 Interest expense                                  (130)       (137)      (240)        (251)
               Mortgage banking income             6,246       8,518      7,237        19,679
Income before taxes                               108,824     80,181     158,531      135,286
               Income tax expense                  (40,646)    (29,491)   (66,504)     (49,555)
Net income                                         $       $       $        $    
                                                   68,178      50,690     92,027      85,731
Basic earnings per share                          $       $      $       $     
                                                    15.68     10.37      20.88       17.38
Diluted earnings per share                        $       $      $       $     
                                                    15.17     10.11      20.19       16.92
Basic weighted average shares outstanding         4,349       4,889      4,408        4,934
Diluted weighted average shares outstanding       4,495       5,013      4,557        5,067

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
                                          June 30, 2014      December 31, 2013
ASSETS                                    (Unaudited)
Homebuilding:
 Cash and cash equivalents                $          $        
                                          538,940           844,274
 Receivables                              15,196             9,529
 Inventory:
      Lots and housing units, covered
      under
             sales agreements with        788,848            568,831
             customers
      Unsold lots and housing units       89,275             117,467
      Land under development              63,789             41,328
      Building materials and other       10,593             10,939
                                          952,505            738,565
 Assets related to consolidated variable  6,802              7,268
 interest entity
 Contract land deposits, net              253,808            236,885
 Property, plant and equipment, net       44,252             32,599
 Reorganization value in excess of
 amounts
      allocable to identifiable assets,   41,580             41,580
      net
 Goodwill and finite-lived intangible     6,055              6,747
 assets, net
 Other assets                             311,060            307,933
                                          2,170,198          2,225,380
Mortgage Banking:
 Cash and cash equivalents                12,919             21,311
 Mortgage loans held for sale, net        170,470            210,641
 Property and equipment, net              6,433              4,699
 Reorganization value in excess of
 amounts
      allocable to identifiable assets,   7,347              7,347
      net
 Other assets                             14,696             16,770
                                          211,865            260,768
             Total assets                 $           $      
                                          2,382,063          2,486,148





LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
 Accounts payable                         $          $        
                                          231,633           181,687
 Accrued expenses and other liabilities   296,045            316,227
 Liabilities related to consolidated      2,277              1,646
 variable interest entity
 Non-recourse debt related to
 consolidated variable
      interest entity                     1,258              3,365
 Customer deposits                        128,320            101,022
 Senior notes                             599,120            599,075
                                          1,258,653          1,203,022
Mortgage Banking:
 Accounts payable and other liabilities   24,195             21,774
                                          24,195             21,774
      Total liabilities                   1,282,848          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 June 30, 2014 and December     206                206
      31, 2013
 Additional paid-in-capital               1,277,755          1,212,050
 Deferred compensation trust – 109,256
 shares of
      NVR, Inc. common stock as of
      both
      June 30, 2014 and December 31,      (17,741)           (17,741)
      2013
 Deferred compensation liability          17,741             17,741
 Retained earnings                        4,697,584          4,605,557
 Less treasury stock at cost –
 16,342,156 and
      16,121,605 shares at June 30,
      2014
      and December 31, 2013,              (4,876,330)        (4,556,461)
      respectively
      Total shareholders' equity          1,099,215          1,261,352
       Total liabilities and           $           $      
      shareholders' equity                2,382,063          2,486,148



NVR, Inc.
Operating Activity
(dollars in thousands)
(Unaudited)
                        Three Months Ended June  Six Months Ended June 30,
                        30,
                        2014            2013     2014           2013
Homebuilding data:
 New orders (units)
      Mid Atlantic (1)  1,751           1,671    3,426          3,387
      North East (2)    288             274      586            567
      Mid East (3)      825             833      1,716          1,782
      South East (4)    551             500      1,012          1,052
       Total          3,415           3,278    6,740          6,788
 Average new order      $    368.0   $     $    368.0  $    351.8
 price                                  361.1
 Settlements (units)
      Mid Atlantic (1)  1,547           1,493    2,671          2,631
      North East (2)    271             259      504            450
      Mid East (3)      707             722      1,185          1,315
      South East (4)    418             404      794            754
       Total          2,943           2,878    5,154          5,150
 Average settlement     $    368.2   $     $    365.3  $    338.4
 price                                  344.7
 Backlog (units)
      Mid Atlantic (1)                           3,465          3,439
      North East (2)                             577            550
      Mid East (3)                               1,563          1,619
      South East (4)                             926            1,009
       Total                                   6,531          6,617
 Average backlog price                           $    374.1  $    358.6
 Community count        494             452      487            444
 (average)
 Lots controlled at end                          67,500         61,200
 of period
Mortgage banking data:
 Loan closings          $  675,625     $       $1,148,557     $1,120,216
                                        646,450
 Capture rate           82%             85%      80%            84%
Common stock
information:
 Shares outstanding at                           4,213,174      4,699,992
 end of period
 Number of shares       285,362         300,086  317,739        300,086
 repurchased
 Aggregate cost of      $  314,870    $       $  347,448    $  294,979
 shares repurchased                     294,979

(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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