NVR, Inc. Announces First Quarter Results

RESTON, 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.

Homebuilding
New 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 Banking
Mortgage 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,




2012


2011

Homebuilding:





Revenues                                         

$        586,195


$        502,744


Other income

908


1,458


Cost of sales

(491,829)


(417,920)


Selling, general and administrative 

(72,176)


(67,188)



Operating income 

23,098


19,094


Interest expense

(116)


(222)



Homebuilding income 

22,982


18,872







Mortgage Banking:





Mortgage banking fees

14,297


11,760


Interest income

1,665


1,115


Other income

76


39


General and administrative

(7,913)


(6,677)


Interest expense

(149)


(274)



Mortgage banking income

7,976


5,963







Income before taxes 

30,958


24,835









Income tax expense

(10,835)


(9,661)







Net income

$          20,123


$          15,174







Basic earnings per share 

$              3.99


$              2.61







Diluted earnings per share 

$              3.90


$              2.52







Basic weighted average shares outstanding 

5,044


5,823







Diluted weighted average shares outstanding 

5,159


6,020







 

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)














March 31, 2012


December 31, 2011

ASSETS



(Unaudited)











Homebuilding:






Cash and cash equivalents


$                  567,922


$                  475,566


Receivables


6,028


6,789


Inventory:







Lots and housing units, covered under








sales agreements with customers


468,434


363,833



Unsold lots and housing units


88,571


82,578



Land under development


70,225


78,045



Manufacturing materials and other 


8,516


8,694






635,746


533,150










Assets related to consolidated variable interest entity

17,546


20,182


Contract land deposits, net


140,328


131,930


Property, plant and equipment, net


24,256


23,243


Reorganization value in excess of amounts







allocable to identifiable assets, net


41,580


41,580


Other assets, net


275,664


268,878






1,709,070


1,501,318









Mortgage Banking:






Cash and cash equivalents


6,461


4,766


Mortgage loans held for sale, net


113,723


252,352


Property and equipment, net


1,710


1,694


Reorganization value in excess of amounts







allocable to identifiable assets, net


7,347


7,347


Other assets


12,601


12,008






141,842


278,167












Total assets


$               1,850,912


$               1,779,485









 

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)












March 31, 2012


December 31, 2011

LIABILITIES AND SHAREHOLDERS' EQUITY


(Unaudited)










Homebuilding:






Accounts payable


$                  137,066


$                  125,649


Accrued expenses and other liabilities


186,024


185,423


Liabilities related to consolidated variable interest entity

1,128


1,013


Non-recourse debt related to consolidated variable






interest entity


2,348


4,983


Customer deposits


79,374


61,223





405,940


378,291








Mortgage Banking:






Accounts payable and other liabilities


26,731


26,395





26,731


26,395










Total liabilities


432,671


404,686








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, 2012 and December 31, 2011


206


206


Additional paid-in-capital


1,074,215


1,072,779


Deferred compensation trust – 152,223 and







152,964 shares of NVR, Inc. common







stock as of March 31, 2012 and 







December 31, 2011, respectively


(25,331)


(25,581)


Deferred compensation liability


25,331


25,581


Retained earnings


4,178,615


4,158,492


Less treasury stock at cost – 15,490,168 and







15,578,565 shares at March 31, 2012







and December 31, 2011, respectively


(3,834,795)


(3,856,678)



Total shareholders' equity


1,418,241


1,374,799



    Total liabilities and shareholders' equity


$               1,850,912


$               1,779,485





























 

NVR, Inc.
Operating Activity
(dollars in thousands)
(Unaudited)










Three Months Ended March 31,





2012


2011









Homebuilding data:






New orders (units)







Mid Atlantic (1)

1,663


1,145




North East (2)

259


252




Mid East (3)

798


691




South East (4)

437


315




   Total

3,157


2,403










Average new order price

$            313.2


$            295.8










Settlements (units)







Mid Atlantic (1)

1,006


836




North East (2)

169


128




Mid East (3)

448


431




South East (4)

301


239




   Total

1,924


1,634










Average settlement price

$            304.6


$            307.6










Backlog (units)







Mid Atlantic (1)

2,630


1,904




North East (2)

466


356




Mid East (3)

1,157


990




South East (4)

656


435




   Total

4,909


3,685










Average backlog price

$            318.5


$            316.6










Community count (average)

387


379



Lots controlled at end of period

53,000


52,900









Mortgage banking data:






Loan closings

$        420,184


$        353,571



Capture rate

89%


87%









Common stock information:






Shares outstanding at end of period

5,066,030


5,867,259



Number of shares repurchased

-


85,460



Aggregate 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 Florida

SOURCE NVR, Inc.

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