RESTON, Va., April 21 /PRNewswire-FirstCall/ -- 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, 2009 of $17,988,000, $3.02 per diluted share. Net income and diluted earnings per share for its first quarter ended March 31, 2009 decreased 59% when compared to the 2008 first quarter. Consolidated revenues for the first three months of 2009 totaled $558,599,000, a 37% decline from $887,931,000 for the comparable 2008 quarter.
Homebuilding New orders in the first quarter of 2009 decreased 11% to 2,426 units, when compared to 2,731 units in the first quarter of 2008. The cancellation rate in the first quarter of 2009 was 15% compared to 22% in the first quarter of 2008 and 30% in the fourth quarter of 2008. The average sales price of new orders in the first quarter of 2009 declined by 12% from the first quarter of 2008. Settlements decreased in the first quarter of 2009 to 1,773 units, 28% less than the same period of 2008. The Company's backlog of homes sold but not settled at the end of the 2009 quarter decreased on a unit basis by 29% to 3,817 units from the same period last year. On a dollar basis, backlog dropped to $1,139,210,000, a decline of 41% when compared to the same period last year.
Homebuilding revenues for the three months ended March 31, 2009 totaled $548,329,000, 37% lower than the year earlier period. Gross profit margins were 15.6% in the 2009 first quarter compared to 16.4% for the same period in 2008. Land deposit impairments in the 2009 quarter were $0 compared to approximately $6,600,000 in the first quarter of 2008. Income before tax from the homebuilding segment totaled $25,770,000, a decrease of 58% when compared to the first quarter of the previous year.
Mortgage Banking Mortgage closed loan production of $427,294,000 for the three months ended March 31, 2009 was 18% lower than the same period last year. Operating income for the mortgage banking operations during the first quarter of 2009 decreased 57% to $4,848,000, when compared to $11,243,000 reported for the same period of 2008.
Other News The Company reported that it closed the 2009 first quarter with a cash and cash equivalents and marketable security position of $1,251,131,000. The marketable securities are comprised of $309,018,000 of debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies, and $349,344,000 of corporate debt securities issued under the FDIC Temporary Liquidity Guarantee Program.
The Company also reported that on April 3, 2009 it repurchased $27,950,000 of the Company's 5% Senior Notes due 2010 ("Senior Notes") on the open market at par. The remaining outstanding balance of the Senior Notes is $135,370,000.
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. 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, or by discussion of strategies, each of which involves risks and uncertainties. All statements other than those of historical facts included herein, including those regarding market trends, NVR's financial position, business strategy, the outcome of pending litigation, projected plans and objectives of management for future operations, are forward-looking statements. 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, general economic and business conditions (on both a national and regional level), interest rate changes, access to suitable financing by NVR and by NVR's customers, 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 moratoria, governmental regulation, the ability of NVR to integrate any acquired business, fluctuation and volatility of stock and other financial markets, mortgage financing availability and other factors over which NVR has little or no control. The Company has no obligation to update such forward-looking statements.
NVR, Inc. Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
---------------------------
2009 2008
---- ---- Homebuilding:
Revenues $548,329 $869,869
Other income 2,539 6,399
Cost of sales (462,630) (726,931)
Selling, general and
administrative (59,694) (84,166)
Operating income 28,544 65,171
Interest expense (2,774) (3,239)
Homebuilding income 25,770 61,932 Mortgage Banking:
Mortgage banking fees 10,270 18,062
Interest income 584 810
Other income 89 159
General and administrative (5,758) (7,654)
Interest expense (337) (134)
Mortgage banking income 4,848 11,243 Income before taxes 30,618 73,175 Income tax expense (12,630) (29,709) Net income $17,988 $43,466
Basic earnings per share $3.19 $8.32 Diluted earnings per share $3.02 $7.42 Basic average shares
outstanding 5,642 5,224 Diluted average shares
outstanding 5,958 5,859
NVR, Inc. Consolidated Balance Sheets
(in thousands, except share and per share data) March 31, December 31,
2009 2008
-------------- ------------
(unaudited)
----------- ASSETS Homebuilding:
Cash and cash equivalents $591,490 $1,146,426
Marketable securities 658,362 -
Receivables 9,251 11,594
Inventory:
Lots and housing units, covered
under sales agreements with
customers 321,257 335,238
Unsold lots and housing units 44,678 57,639
Manufacturing materials and
other 4,594 7,693
370,529 400,570 Contract land deposits, net 25,695 29,073
Assets not owned, consolidated
per FIN 46R 69,305 114,930
Property, plant and equipment, net 23,545 25,658
Reorganization value in excess of
amounts allocable to identifiable
assets, net 41,580 41,580
Other assets, net 223,431 242,626 2,013,188 2,012,457 Mortgage Banking:
Cash and cash equivalents 1,279 1,217
Mortgage loans held for sale, net 100,543 72,488
Property and equipment, net 663 759
Reorganization value in excess of
amounts allocable to identifiable
assets, net 7,347 7,347
Other assets 8,130 8,968 117,962 90,779 Total assets $2,131,150 $2,103,236 LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding:
Accounts payable $119,293 $137,285
Accrued expenses and other
liabilities 158,359 194,869
Liabilities related to
assets not owned,
consolidated per FIN 46R 64,137 109,439
Customer deposits 58,264 59,623
Other term debt 2,478 2,530
Senior notes 163,320 163,320
565,851 667,066
Mortgage Banking:
Accounts payable and other
liabilities 14,947 17,842
Notes payable 75,381 44,539
90,328 62,381 Total liabilities 656,179 729,447 Commitments and contingencies Shareholders' equity:
Common stock, $0.01 par value;
60,000,000 shares authorized;
20,559,671 and 20,561,187
shares issued for March 31, 2009
and December 31, 2008, respectively 206 206
Additional paid-in capital 766,775 722,265
Deferred compensation trust -
270,335 and 514,470 shares of
NVR, Inc. common stock for March 31,
2009 and December 31, 2008,
respectively (44,307) (74,978)
Deferred compensation liability 44,307 74,978
Retained earnings 3,648,875 3,630,887
Less treasury stock at cost -
14,833,217 and 15,028,335 shares
for March 31, 2009 and December 31,
2008, respectively (2,940,885) (2,979,569)
Total shareholders' equity 1,474,971 1,373,789
Total liabilities and
shareholders' equity $2,131,150 $2,103,236 NVR, Inc. Operating Activity
(unaudited)
(dollars in thousands) Three Months Ended March 31,
---------------------------
2009 2008
---- ---- Homebuilding data:
New orders (units)
Mid Atlantic (1) 1,203 1,292
North East (2) 235 280
Mid East (3) 701 717
South East (4) 287 442
Total 2,426 2,731 Average new order price $281.9 $320.0 Settlements (units)
Mid Atlantic (1) 928 1,241
North East (2) 184 245
Mid East (3) 413 617
South East (4) 248 362
Total 1,773 2,465 Average settlement price $308.8 $352.6 Backlog (units)
Mid Atlantic (1) 2,051 2,777
North East (2) 354 540
Mid East (3) 1,019 1,213
South East (4) 393 881
Total 3,817 5,411 Average backlog price $298.5 $354.0 Community count (average) 357 442
Lots controlled at end of
period 44,000 64,000 Mortgage banking data:
Loan closings $427,294 $523,538
Capture rate 89% 82% Common stock information:
Shares outstanding at end of
period 5,726,454 5,274,489
Number of shares repurchased - -
Aggregate cost of shares
repurchased - - (1) Virginia, West Virginia, Maryland, and Delaware
(2) Eastern Pennsylvania and New Jersey
(3) Western Pennsylvania, Kentucky, New York and Ohio
(4) North Carolina, South Carolina and Tennessee
DATASOURCE: NVR, Inc.
CONTACT: Dan Malzahn of NVR, Inc., +1-703-956-4204 Web Site: http://www.nvrinc.com/
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