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Press release from PR Newswire

NVR, Inc. Announces First Quarter Results

Monday, April 22, 2013

NVR, Inc. Announces First Quarter Results

08:50 EDT Monday, April 22, 2013

RESTON, Va., April 22, 2013 /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, 2013 of $35,041,000, or $6.84 per diluted share.  Net income and diluted earnings per share for its first quarter ended March 31, 2013 increased 74% and 75%, respectively, when compared to the 2012 first quarter.  Consolidated revenues for the first quarter of 2013 totaled $770,256,000, a 28% increase from $600,492,000 for the comparable 2012 quarter.

Homebuilding

New orders in the first quarter of 2013 increased 11% to 3,510 units, when compared to 3,157 units in the first quarter of 2012.  The cancellation rate in the first quarter of 2013 was 13.2% compared to 10.3% in the first quarter of 2012 and 15.3% in the fourth quarter of 2012.  Settlements increased in the first quarter of 2013 to 2,272 units, 18% higher than the first quarter of 2012.  The Company's backlog of homes sold but not settled as of March 31, 2013 increased on a unit basis by 27% to 6,217 units and on a dollar basis by 39% to $2,179,566,000 when compared to March 31, 2012.

Homebuilding revenues for the three months ended March 31, 2013 totaled $750,868,000, 28% higher than the year earlier period.  Gross profit margins increased to 16.9% in the 2013 first quarter compared to 16.1% for the same period in 2012.  Income before tax from the homebuilding segment totaled $43,944,000 in the 2013 first quarter, an increase of 91% when compared to the first quarter of 2012.

Mortgage Banking

Mortgage closed loan production of $473,766,000 for the three months ended March 31, 2013 was 13% higher than the same period last year.  Operating income for the mortgage banking operations during the first quarter of 2013 increased 40% to $11,161,000, when compared to $7,976,000 reported for the same period of 2012.

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)

(Unaudited)

Three Months Ended March 31,

2013

2012

Homebuilding:

Revenues                                         

$        750,868

$        586,195

Other income

1,026

908

Cost of sales

(624,085)

(491,829)

Selling, general and administrative 

(78,413)

(72,176)

Operating income 

49,396

23,098

Interest expense

(5,452)

(116)

Homebuilding income 

43,944

22,982

Mortgage Banking:

Mortgage banking fees

19,388

14,297

Interest income

955

1,665

Other income

113

76

General and administrative

(9,181)

(7,913)

Interest expense

(114)

(149)

Mortgage banking income

11,161

7,976

Income before taxes 

55,105

30,958

Income tax expense

(20,064)

(10,835)

Net income

$          35,041

$          20,123

Basic earnings per share 

$              7.04

$              3.99

Diluted earnings per share 

$              6.84

$              3.90

Basic weighted average shares outstanding 

4,979

5,044

Diluted weighted average shares outstanding 

5,122

5,159

 

 

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

March 31, 2013

December 31, 2012

ASSETS

(Unaudited)

Homebuilding:

Cash and cash equivalents

$               1,082,792

$               1,139,103

Receivables

14,536

9,421

Inventory:

Lots and housing units, covered under

sales agreements with customers

653,799

515,498

Unsold lots and housing units

79,639

81,932

Land under development

96,233

68,336

Manufacturing materials and other 

12,179

12,365

841,850

678,131

Assets related to consolidated variable interest entity

11,436

15,626

Contract land deposits, net

193,216

191,538

Property, plant and equipment, net

27,736

27,016

Reorganization value in excess of amounts

allocable to identifiable assets, net

41,580

41,580

Other assets, net

297,344

279,855

2,510,490

2,382,270

Mortgage Banking:

Cash and cash equivalents

4,396

13,498

Mortgage loans held for sale, net

128,050

188,929

Property and equipment, net

2,833

2,465

Reorganization value in excess of amounts

allocable to identifiable assets, net

7,347

7,347

Other assets

11,939

10,333

154,565

222,572

Total assets

$               2,665,055

$               2,604,842

 

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

March 31, 2013

December 31, 2012

LIABILITIES AND SHAREHOLDERS' EQUITY

(Unaudited)

Homebuilding:

Accounts payable

$                  170,129

$                  163,446

Accrued expenses and other liabilities

193,004

234,804

Liabilities related to consolidated variable interest entity

2,175

2,180

Non-recourse debt related to consolidated variable

interest entity

2,539

4,574

Customer deposits

124,862

99,687

Senior notes

599,010

598,988

1,091,719

1,103,679

Mortgage Banking:

Accounts payable and other liabilities

21,244

20,686

21,244

20,686

Total liabilities

1,112,963

1,124,365

Commitments and contingencies

Shareholders' equity:

Common stock, $0.01 par value; 60,000,000 shares

authorized; 20,556,198 shares issued as of

both March 31, 2013 and December 31, 2012

206

206

Additional paid-in-capital

1,184,961

1,169,699

Deferred compensation trust ? 109,623 and

152,223 shares of NVR, Inc. common

stock as of March 31, 2013 and 

December 31, 2012, respectively

(17,864)

(25,331)

Deferred compensation liability

17,864

25,331

Retained earnings

4,374,121

4,339,080

Less treasury stock at cost ? 15,559,314 and

15,642,068 shares at March 31, 2013

and December 31, 2012, respectively

(4,007,196)

(4,028,508)

Total shareholders' equity

1,552,092

1,480,477

    Total liabilities and shareholders' equity

$               2,665,055

$               2,604,842

 

NVR, Inc.

Operating Activity

(dollars in thousands)

(Unaudited)

Three Months Ended March 31,

2013

2012

Homebuilding data:

New orders (units)

Mid Atlantic (1)

1,716

1,663

North East (2)

293

259

Mid East (3)

949

798

South East (4)

552

437

   Total

3,510

3,157

Average new order price

$            343.0

$            313.2

Settlements (units)

Mid Atlantic (1)

1,138

1,006

North East (2)

191

169

Mid East (3)

593

448

South East (4)

350

301

   Total

2,272

1,924

Average settlement price

$            330.4

$            304.6

Backlog (units)

Mid Atlantic (1)

3,261

2,630

North East (2)

535

466

Mid East (3)

1,508

1,157

South East (4)

913

656

   Total

6,217

4,909

Average backlog price

$            350.6

$            318.5

Community count (average)

435

387

Lots controlled at end of period

59,700

53,000

Mortgage banking data:

Loan closings

$        473,766

$        420,184

Capture rate

84%

89%

Common stock information:

Shares outstanding at end of period

4,996,884

5,066,030

Number of shares repurchased

-

-

Aggregate cost of shares repurchased

$                    -

$                    -

(1)

   Virginia, West Virginia, Maryland, Delaware and Washington, D.C.

(2)

   New Jersey and eastern Pennsylvania

(3)

   New York, Ohio, western Pennsylvania, Indiana, Illinois and Kentucky

(4)

   North Carolina, South Carolina, Florida and Tennessee

 

SOURCE NVR, Inc.

For further information: Dan Malzahn, Office: (703) 956-4204

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