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Press release from PR Newswire

NVR, Inc. Announces Fourth Quarter And Full Year Results

Thursday, January 24, 2013

NVR, Inc. Announces Fourth Quarter And Full Year Results08:55 EST Thursday, January 24, 2013RESTON, 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. HomebuildingNew 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 AcquisitionOn 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 BankingMortgage 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 NVRNVR, 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 December 31,Twelve Months Ended December 31,2012201120122011(Unaudited)(Unaudited)Homebuilding:Revenues                                         $      925,363$      728,808$   3,121,244$   2,611,195Other income1,4416393,4864,301Cost 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 91,70744,154247,907185,605Interest expense(5,404)(215)(6,983)(1,017)Homebuilding income 86,30343,939240,924184,588Mortgage Banking:Mortgage banking fees18,37512,48063,40647,954Interest income9991,9134,5045,702Other income191145564456General and administrative(9,746)(7,878)(33,775)(30,249)Interest expense(91)(154)(546)(875)Mortgage banking income9,7286,50634,15322,988Income before taxes 96,03150,445275,077207,576Income tax expense(35,404)(18,053)(94,489)(78,156)Net income$         60,627$         32,392$      180,588$      129,420Basic earnings per share $           12.38$             6.51$           36.04$           23.66Diluted earnings per share $           11.98$             6.32$           35.12$           23.01Basic weighted average shares outstanding 4,8974,9795,0115,469Diluted weighted average shares outstanding 5,0605,1265,1425,624 NVR, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) December 31, 2012December 31, 2011(Unaudited)ASSETSHomebuilding:Cash and cash equivalents$               1,139,103$                475,566Receivables9,4216,789Inventory:Lots and housing units, covered undersales agreements with customers515,498363,833Unsold lots and housing units81,93282,578Land under development68,33678,045Manufacturing materials and other 12,3658,694678,131533,150Assets related to consolidated variable interest entity15,62620,182Contract land deposits, net191,538131,930Property, plant and equipment, net27,01623,243Reorganization value in excess of amountsallocable to identifiable assets, net41,58041,580Other assets, net279,855268,8782,382,2701,501,318Mortgage Banking:Cash and cash equivalents13,4984,766Mortgage loans held for sale, net188,929252,352Property and equipment, net2,4651,694Reorganization value in excess of amountsallocable to identifiable assets, net7,3477,347Other assets10,33312,008222,572278,167Total assets$               2,604,842$            1,779,485(Continued) NVR, Inc. Consolidated Balance Sheets (Continued) (in thousands, except share and per share data) December 31, 2012December 31, 2011(Unaudited)LIABILITIES AND SHAREHOLDERS' EQUITYHomebuilding:Accounts payable$                       163,446$                      125,649Accrued expenses and other liabilities234,804185,423Liabilities related to consolidated variable interest entity2,1801,013Non-recourse debt related to consolidated variableinterest entity4,5744,983Customer deposits99,68761,223Senior notes598,988-1,103,679378,291Mortgage Banking:Accounts payable and other liabilities20,68626,39520,68626,395Total liabilities1,124,365404,686Commitments and contingenciesShareholders' equity:Common stock, $0.01 par value; 60,000,000 sharesauthorized; 20,556,198 shares issued as ofboth December 31, 2012 and December 31, 2011206206Additional paid-in-capital1,169,6991,072,779Deferred compensation trust ? 152,223 and152,964 shares of NVR, Inc. commonstock as of December 31, 2012 and December 31, 2011, respectively(25,331)(25,581)Deferred compensation liability25,33125,581Retained earnings4,339,0804,158,492Less treasury stock at cost ? 15,642,068 and15,578,565 shares at December 31, 2012and December 31, 2011, respectively(4,028,508)(3,856,678)Total shareholders' equity1,480,4771,374,799    Total liabilities and shareholders' equity$                   2,604,842$                  1,779,485 NVR, Inc. Operating Activity  (dollars in thousands) (Unaudited) Three Months Ended December 31,Twelve Months Ended December 31,2012201120122011Homebuilding data:New orders (units)Mid Atlantic (1)1,4181,1135,7574,616North East (2)234233946872Mid East (3)5744862,6252,412South East (4)3993261,6261,347   Total2,6252,15810,9549,247Average new order price$          340.2$          311.7$          328.8$          304.1Settlements (units)Mid Atlantic (1)1,4271,2365,0474,238North East (2)224192889728Mid East (3)7336162,4722,335South East (4)4043471,4351,186   Total2,7882,3919,8438,487Average settlement price$          331.9$          304.6$          317.1$          307.5Backlog (units)Mid Atlantic (1)2,6831,973North East (2)433376Mid East (3)1,152807South East (4)711520   Total4,9793,676Average backlog price$          346.2$          315.8Community count (average)414381404384Lots controlled at end of period58,50053,000Mortgage banking data:Loan closings$     642,171$     520,919$  2,206,092$  1,868,472Capture rate87%88%87%88%Common stock information:Shares outstanding at end of period4,914,1304,977,633Number of shares repurchased8,50038,323285,4951,017,588Aggregate cost of shares repurchased$          7,153$        22,674$     227,281$     689,302(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.For further information: Dan Malzahn, +1-703-956-4204