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Press release from PR Newswire

NVR, Inc. Announces First Quarter Results

Thursday, April 19, 2012

NVR, Inc. Announces First Quarter Results08:49 EDT Thursday, April 19, 2012RESTON, Va., April 19, 2012 /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, 2012 of $20,123,000, $3.90 per diluted share.  Net income and diluted earnings per share for its first quarter ended March 31, 2012 increased 33% and 55%, respectively, when compared to the 2011 first quarter.  Consolidated revenues for the first quarter of 2012 totaled $600,492,000, a 17% increase from $514,504,000 for the comparable 2011 quarter.HomebuildingNew orders in the first quarter of 2012 increased 31% to 3,157 units, when compared to 2,403 units in the first quarter of 2011.  The cancellation rate in the first quarter of 2012 was 10.3% compared to 12.3% in the first quarter of 2011 and 14.9% in the fourth quarter of 2011.  Settlements increased in the first quarter of 2012 to 1,924 units, 18% higher than the same period in 2011.  The Company's backlog of homes sold but not settled at the end of the 2012 quarter increased on a unit basis by 33% to 4,909 units and on a dollar basis by 34% to $1,563,619,000 when compared to the same period last year.Homebuilding revenues for the three months ended March 31, 2012 totaled $586,195,000, 17% higher than the year earlier period.  Gross profit margins decreased to 16.1% in the 2012 first quarter compared to 16.9% for the same period in 2011.  Income before tax from the homebuilding segment totaled $22,982,000, an increase of 22% when compared to the first quarter of 2011.Mortgage BankingMortgage closed loan production of $420,184,000 for the three months ended March 31, 2012 was 19% higher than the same period last year.  Operating income for the mortgage banking operations during the first quarter of 2012 increased 34% to $7,976,000, when compared to $5,963,000 reported for the same period of 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 and Fox Ridge Homes trade names, and operates in twenty-seven metropolitan areas in fifteen states.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, and www.foxridgehomes.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 variations thereof or 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)(Unaudited)Three Months Ended March 31,20122011Homebuilding:Revenues                                         $        586,195$        502,744Other income9081,458Cost of sales(491,829)(417,920)Selling, general and administrative (72,176)(67,188)Operating income 23,09819,094Interest expense(116)(222)Homebuilding income 22,98218,872Mortgage Banking:Mortgage banking fees14,29711,760Interest income1,6651,115Other income7639General and administrative(7,913)(6,677)Interest expense(149)(274)Mortgage banking income7,9765,963Income before taxes 30,95824,835Income tax expense(10,835)(9,661)Net income$          20,123$          15,174Basic earnings per share $              3.99$              2.61Diluted earnings per share $              3.90$              2.52Basic weighted average shares outstanding 5,0445,823Diluted weighted average shares outstanding 5,1596,020 NVR, Inc.Consolidated Balance Sheets(in thousands, except share and per share data)March 31, 2012December 31, 2011ASSETS(Unaudited)Homebuilding:Cash and cash equivalents$                  567,922$                  475,566Receivables6,0286,789Inventory:Lots and housing units, covered undersales agreements with customers468,434363,833Unsold lots and housing units88,57182,578Land under development70,22578,045Manufacturing materials and other 8,5168,694635,746533,150Assets related to consolidated variable interest entity17,54620,182Contract land deposits, net140,328131,930Property, plant and equipment, net24,25623,243Reorganization value in excess of amountsallocable to identifiable assets, net41,58041,580Other assets, net275,664268,8781,709,0701,501,318Mortgage Banking:Cash and cash equivalents6,4614,766Mortgage loans held for sale, net113,723252,352Property and equipment, net1,7101,694Reorganization value in excess of amountsallocable to identifiable assets, net7,3477,347Other assets12,60112,008141,842278,167Total assets$               1,850,912$               1,779,485 NVR, Inc.Consolidated Balance Sheets (Continued)(in thousands, except share and per share data)March 31, 2012December 31, 2011LIABILITIES AND SHAREHOLDERS' EQUITY(Unaudited)Homebuilding:Accounts payable$                  137,066$                  125,649Accrued expenses and other liabilities186,024185,423Liabilities related to consolidated variable interest entity1,1281,013Non-recourse debt related to consolidated variableinterest entity2,3484,983Customer deposits79,37461,223405,940378,291Mortgage Banking:Accounts payable and other liabilities26,73126,39526,73126,395Total liabilities432,671404,686Commitments and contingenciesShareholders' equity:Common stock, $0.01 par value; 60,000,000 sharesauthorized; 20,556,198 shares issued as ofboth March 31, 2012 and December 31, 2011206206Additional paid-in-capital1,074,2151,072,779Deferred compensation trust ? 152,223 and152,964 shares of NVR, Inc. commonstock as of March 31, 2012 and December 31, 2011, respectively(25,331)(25,581)Deferred compensation liability25,33125,581Retained earnings4,178,6154,158,492Less treasury stock at cost ? 15,490,168 and15,578,565 shares at March 31, 2012and December 31, 2011, respectively(3,834,795)(3,856,678)Total shareholders' equity1,418,2411,374,799    Total liabilities and shareholders' equity$               1,850,912$               1,779,485 NVR, Inc.Operating Activity(dollars in thousands)(Unaudited)Three Months Ended March 31,20122011Homebuilding data:New orders (units)Mid Atlantic (1)1,6631,145North East (2)259252Mid East (3)798691South East (4)437315   Total3,1572,403Average new order price$            313.2$            295.8Settlements (units)Mid Atlantic (1)1,006836North East (2)169128Mid East (3)448431South East (4)301239   Total1,9241,634Average settlement price$            304.6$            307.6Backlog (units)Mid Atlantic (1)2,6301,904North East (2)466356Mid East (3)1,157990South East (4)656435   Total4,9093,685Average backlog price$            318.5$            316.6Community count (average)387379Lots controlled at end of period53,00052,900Mortgage banking data:Loan closings$        420,184$        353,571Capture rate89%87%Common stock information:Shares outstanding at end of period5,066,0305,867,259Number of shares repurchased-85,460Aggregate cost of shares repurchased$                    -$          63,408(1)Virginia, West Virginia, Maryland and Delaware (2)New Jersey and eastern Pennsylvania(3)Kentucky, western Pennsylvania, New York, Ohio, Indiana and Illinois(4)North Carolina, South Carolina, Tennessee and FloridaSOURCE NVR, Inc.For further information: Dan Malzahn, Office: +1-703-956-4204