NVR NVR Inc

RESTON, Va., Jan. 26, 2015 /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, 2014 of $99,451,000, or $23.24 per diluted share.  Net income and diluted earnings per share for its fourth quarter ended December 31, 2014 increased 2% and 10%, respectively, when compared to the 2013 fourth quarter.  Consolidated revenues for the fourth quarter of 2014 totaled $1,328,038,000, a 7% increase from $1,242,152,000 for the comparable 2013 quarter.

For the year ended December 31, 2014, consolidated revenues were $4,444,568,000, 6% higher than the $4,211,267,000 reported for the year ended December 31, 2013.  Net income for the year ended December 31, 2014 was $281,630,000, an increase of 6% when compared to the year ended December 31, 2013.  Diluted earnings per share for the year ended December 31, 2014 was $63.50, an increase of 16% from $54.81 per diluted share in 2013. 

Homebuilding

New orders in the fourth quarter of 2014 increased 3% to 2,713 units when compared to 2,631 units in the fourth quarter of 2013.  The cancellation rate in the fourth quarter of 2014 was 18% compared to 14% in the fourth quarter of 2013 and 16% in the third quarter of 2014.  Settlements in the fourth quarter of 2014 increased 4% to 3,469 units when compared to the same period in 2013.  The Company's backlog of homes sold but not settled as of December 31, 2014 increased on a unit basis by 11% to 5,475 units, and increased on a dollar basis by 14% to $2,105,635,000 when compared to December 31, 2013.

Homebuilding revenues for the three months ended December 31, 2014 totaled $1,306,632,000, 7% higher than the year earlier period.  Gross profit margin in the fourth quarter of 2014 was 18.1% compared to 18.2% in the fourth quarter of 2013.  Gross profit margin in the fourth quarter of 2013 was negatively impacted by a previously disclosed service related accrual of $15,964,000 which reduced gross profit margin by 130 basis points of revenue.  Income before tax from the homebuilding segment totaled $140,079,000 in the 2014 fourth quarter, a decrease of 3% when compared to the fourth quarter of 2013. 

New orders for the 2014 fiscal year increased 5% to 12,389 units, when compared to 11,800 units in fiscal year 2013.  Home settlements were flat on a unit basis year over year, with 11,859 units settled in 2014 compared to 11,834 units settled in 2013.  Homebuilding revenues for 2014 totaled $4,375,059,000, 6% higher than 2013.  Income before tax for the homebuilding segment for the 2014 fiscal year was $427,884,000, a 13% increase when compared to 2013.  Income before tax for 2013 was negatively impacted by two previously disclosed service related accruals totaling approximately $31,600,000.

Mortgage Banking

Mortgage closed loan production of $881,930,000 for the three months ended December 31, 2014 was 22% higher than the same period last year.  Operating income for the mortgage banking operations for the fourth quarter of 2014 increased 42% to $11,145,000, when compared to $7,844,000 reported for the same period of 2013.   

Mortgage closed loan production for the 2014 fiscal year increased 12% to $2,833,612,000.  Income before tax from the mortgage banking segment for 2014 decreased 35% to $25,662,000 from $39,326,000 in 2013.

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 fourteen 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.heartlandluxuryhomes.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 may 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.

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SOURCE NVR, Inc.