SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

FORM 8-K

 

 

Current Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported): July 21, 2015

 

 

NVR, Inc.

 

 (Exact name of registrant as specified in its charter)

 

 

Virginia 1-12378 54-1394360
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

 

 

11700 Plaza America Drive, Suite 500, Reston, Virginia 20190
(Address of principal executive offices) (Zip Code)

 

 

Registrant’s telephone number, including area code: (703) 956-4000

 

 

 

 

(Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.133-4(c))

  

 
 

 

Item 2.02 Results of Operations and Financial Condition

 

On July 21, 2015, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended June 30, 2015. A copy of this press release is furnished herewith as Exhibit 99.1.

 

 

Item 9.01 Financial Statements and Exhibits

 

(c)Exhibits

 

  Number   Description
       
     99.1   Press release dated July 21, 2015.

 

 
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  NVR, Inc.
       
Date:  July 21, 2015 By: /s/ Daniel D. Malzahn
    Name Daniel D. Malzahn
    Title: Vice President, Chief Financial Officer and Treasurer

 

 
 

 

INDEX TO EXHIBITS 

 

Exhibit Number   Exhibit Description
     
99.1   Press release dated July 21, 2015.

 

 



NVR, Inc. Announces Second Quarter Results

RESTON, Va., July 21, 2015 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2015 of $93,395,000 or $21.91 per diluted share. Net income and diluted earnings per share for its second quarter ended June 30, 2015 increased 37% and 44%, respectively, when compared to the 2014 second quarter. Consolidated revenues for the second quarter of 2015 totaled $1,243,633,000, a 13% increase from $1,102,054,000 for the comparable 2014 quarter.

For the six months ended June 30, 2015, consolidated revenues were $2,201,382,000, 15% higher than the $1,913,364,000 reported for the same period of 2014. Net income for the six months ended June 30, 2015 was $132,453,000, an increase of 44% when compared to the six months ended June 30, 2014. Diluted earnings per share for the six months ended June 30, 2015 was $31.17, an increase of 54% from $20.19 per diluted share for the comparable period of 2014.

Homebuilding

New orders in the second quarter of 2015 increased 11% to 3,796 units, when compared to 3,415 units in the second quarter of 2014. The average sales price of new orders increased to $378,300, a 3% increase from the second quarter of 2014. The cancellation rate in the second quarter of 2015 was 14%, compared to 13% in the second quarter of 2014. Settlements increased in the second quarter of 2015 to 3,175 units, 8% higher than the second quarter of 2014. The Company's backlog of homes sold but not settled as of June 30, 2015 increased on a unit basis by 15% to 7,488 units and increased on a dollar basis by 17% to $2,854,613,000 when compared to June 30, 2014.

Homebuilding revenues for the three months ended June 30, 2015 totaled $1,221,111,000, 13% higher than the year earlier period. Gross profit margin increased to 19.2% in the 2015 second quarter compared to 18.6% for the same period in 2014. Income before tax from the homebuilding segment totaled $137,248,000 in the second quarter of 2015, an increase of 34% when compared to the second quarter of 2014.

Mortgage Banking

Mortgage closed loan production of $859,403,000 for the three months ended June 30, 2015 increased by 27% when compared to the three months ended June 30, 2014. Operating income for the mortgage banking operations during the second quarter of 2015 was $11,436,000, compared to $6,246,000 reported for the second quarter of 2014. Operating income in the second quarter of 2015 was favorably impacted by an increase in capture rate to 89%, compared to 82% in the second quarter of 2014, and improved leveraging of general and administrative expenses.

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-eight 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.


NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2015


2014


2015


2014

Homebuilding:












Revenues

$

1,221,111


$

1,084,080


$

2,162,649


$

1,883,267

Other income


1,122



452



1,847



1,449

Cost of sales


(986,854)



(882,778)



(1,768,522)



(1,537,930)

Selling, general and administrative


(92,314)



(93,583)



(190,543)



(184,215)

  Operating income


143,065



108,171



205,431



162,571

Interest expense


(5,817)



(5,593)



(11,599)



(11,277)

  Homebuilding income


137,248



102,578



193,832



151,294













Mortgage Banking:












Mortgage banking fees


22,522



17,974



38,733



30,097

Interest income


1,303



825



2,381



2,009

Other income


243



194



348



253

General and administrative


(12,493)



(12,617)



(23,972)



(24,882)

Interest expense


(139)



(130)



(275)



(240)

  Mortgage banking income


11,436



6,246



17,215



7,237













Income before taxes


148,684



108,824



211,047



158,531

Income tax expense


(55,289)



(40,646)



(78,594)



(66,504)













Net income

$

93,395


$

68,178


$

132,453


$

92,027













Basic earnings per share

$

22.97


$

15.68


$

32.61


$

20.88













Diluted earnings per share

$

21.91


$

15.17


$

31.17


$

20.19













Basic weighted average shares outstanding


4,066



4,349



4,062



4,408













Diluted weighted average shares outstanding


4,262



4,495



4,249



4,557


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



June 30, 2015


December 31, 2014


(Unaudited)




ASSETS












Homebuilding:






Cash and cash equivalents

$

476,493


$

514,780

Receivables


15,987



10,021

    Inventory:






Lots and housing units, covered under






sales agreements with customers


943,970



690,955

Unsold lots and housing units


104,484



131,938

Land under development


25,554



33,689

Building materials and other


11,083



12,904



1,085,091



869,486







Assets related to consolidated variable interest entity


2,902



3,590

Contract land deposits, net


301,848



294,676

Property, plant and equipment, net


45,071



46,242

Reorganization value in excess of amounts






allocable to identifiable assets, net


41,580



41,580

Goodwill and finite-lived intangible assets, net


4,673



5,364

Other assets


303,435



302,280



2,277,080



2,088,019







Mortgage Banking:






Cash and cash equivalents


19,238



30,158

Mortgage loans held for sale, net


265,418



205,664

Property and equipment, net


5,675



6,189

Reorganization value in excess of amounts


7,347



7,347

allocable to identifiable assets, net






Other assets


21,477



13,958



319,155



263,316







Total assets

$

2,596,235


$

2,351,335


LIABILITIES AND SHAREHOLDERS' EQUITY












Homebuilding:






Accounts payable

$

256,521


$

204,622

Accrued expenses and other liabilities


299,553



289,058

Liabilities related to consolidated variable interest entity


1,652



1,618

Non-recourse debt related to consolidated






variable interest entity




64

Customer deposits


138,383



106,755

Senior notes


599,213



599,166



1,295,322



1,201,283







Mortgage Banking:






Accounts payable and other liabilities


26,032



25,797



26,032



25,797







Total liabilities


1,321,354



1,227,080







Commitments and contingencies












Shareholders' equity:






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






authorized;  20,555,330 shares issued as of






both June 30, 2015 and December 31, 2014

206


206

Additional paid-in capital


1,389,725



1,325,495

Deferred compensation trust – 108,614 shares of






NVR, Inc. common stock as of both






June 30, 2015 and December 31, 2014


(17,333)



(17,333)

Deferred compensation liability


17,333



17,333

Retained earnings


5,019,640



4,887,187

Less treasury stock at cost – 16,486,160 and






16,506,229 shares at June 30, 2015 and






December 31, 2014, respectively


(5,134,690)



(5,088,633)

Total shareholders' equity


1,274,881



1,124,255

Total liabilities and shareholders' equity

$

2,596,235


$

2,351,335

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



Three Months Ended June 30,



Six Months Ended June 30,



2015



2014



2015



2014


Homebuilding data:
















New orders (units)
















Mid Atlantic (1)


1,910




1,751




3,858




3,426


North East (2)


295




288




632




586


Mid East (3)


962




825




1,956




1,716


South East (4)


629




551




1,276




1,012


Total


3,796




3,415




7,722




6,740


















Average new order price

$

378.3



$

368.0



$

376.8



$

368.0


















Settlements (units)
















Mid Atlantic (1)


1,679




1,547




2,975




2,671


North East (2)


323




271




562




504


Mid East (3)


674




707




1,256




1,185


South East (4)


499




418




916




794


Total


3,175




2,943




5,709




5,154


















Average settlement price

$

384.4



$

368.2



$

378.5



$

365.3


















Backlog (units)
















Mid Atlantic (1)










3,829




3,465


North East (2)










658




577


Mid East (3)










1,850




1,563


South East (4)










1,151




926


Total










7,488




6,531


















Average backlog price









$

381.2



$

374.1


















Community count (average)


476




494




475




487


Lots controlled at end of period










70,600




67,500


















Mortgage banking data:
















Loan closings

$

859,403



$

675,625



$

1,498,029



$

1,148,557


Capture rate


89

%



82

%



88

%



80

%

















Common stock information:
















Shares outstanding at end of period










4,069,170




4,213,174


Number of shares repurchased


4,705




285,362




55,031




317,739


Aggregate cost of shares repurchased

$

6,186



$

314,870



$

69,285



$

347,448




(1)

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

(2)

New Jersey and Eastern Pennsylvania

(3)

New York, Ohio, Western Pennsylvania, Indiana and Illinois

(4)

North Carolina, South Carolina, Tennessee and Florida



CONTACT: Curt McKay, Office: (703) 956-4058

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