RESTON, Va., Oct. 20, 2015 /PRNewswire/ -- NVR, Inc.
(NYSE: NVR), one of the nation's largest homebuilding and mortgage
banking companies, announced net income for its third quarter ended
September 30, 2015 of $116,470,000, or $27.11 per diluted share. Net income and
diluted earnings per share for the third quarter ended September 30, 2015 increased 29% and 31%,
respectively, when compared to the 2014 third quarter. Consolidated
revenues for the third quarter of 2015 totaled $1,402,351,000, a 17% increase from $1,203,166,000 for the comparable 2014
quarter.
For the nine months ended September 30,
2015, consolidated revenues were $3,603,733,000, 16% higher than the $3,116,530,000 reported for the same period of
2014. Net income for the nine months ended September 30, 2015 was $248,923,000, an increase of 37% when compared to
the nine months ended September 30,
2014. Diluted earnings per share for the nine months ended
September 30, 2015 was $58.32, an increase of 44% from $40.59 per diluted share for the comparable
period of 2014.
Homebuilding
New orders in the third quarter of
2015 increased 11% to 3,258 units, when compared to 2,936 units in
the third quarter of 2014. The average sales price of new orders in
the third quarter of 2015 was $378,900, an increase of 1% when compared with
the third quarter of 2014. Settlements increased in the third
quarter of 2015 to 3,607 units, 11% higher than the third quarter
of 2014. The Company's backlog of homes sold but not settled
as of September 30, 2015 increased
15% on both a unit and dollar basis to 7,139 units and $2,716,947,000 when compared to September 30, 2014.
Homebuilding revenues for the three months ended September 30, 2015 totaled $1,374,467,000, 16% higher than the year earlier
period. Gross profit margin was 19.1% in the 2015 third quarter,
which was flat when compared to the same period in 2014.
Income before tax from the homebuilding segment totaled
$168,874,000 in the third quarter of
2015, an increase of 24% when compared to the third quarter of
2014.
Mortgage Banking
Mortgage closed loan
production of $951,872,000 for the
three months ended September 30, 2015
increased by 19% when compared to the three months ended
September 30, 2014. Operating income
for the mortgage banking operations during the third quarter of
2015 was $16,122,000, compared to
$7,280,000 reported for the third
quarter of 2014. Operating income was favorably impacted by
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
September 30,
|
|
|
Nine Months Ended
September 30,
|
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2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,374,467
|
|
|
$
|
1,185,160
|
|
|
$
|
3,537,116
|
|
|
$
|
3,068,427
|
|
Other
income
|
|
|
643
|
|
|
|
905
|
|
|
|
2,490
|
|
|
|
2,354
|
|
Cost of
sales
|
|
|
(1,111,672)
|
|
|
|
(960,055)
|
|
|
|
(2,880,194)
|
|
|
|
(2,497,985)
|
|
Selling, general and
administrative
|
|
|
(88,664)
|
|
|
|
(83,881)
|
|
|
|
(279,207)
|
|
|
|
(268,096)
|
|
Operating
income
|
|
|
174,774
|
|
|
|
142,129
|
|
|
|
380,205
|
|
|
|
304,700
|
|
Interest
expense
|
|
|
(5,900)
|
|
|
|
(5,618)
|
|
|
|
(17,499)
|
|
|
|
(16,895)
|
|
Homebuilding
income
|
|
|
168,874
|
|
|
|
136,511
|
|
|
|
362,706
|
|
|
|
287,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
27,884
|
|
|
|
18,006
|
|
|
|
66,617
|
|
|
|
48,103
|
|
Interest
income
|
|
|
1,972
|
|
|
|
1,373
|
|
|
|
4,353
|
|
|
|
3,382
|
|
Other
income
|
|
|
363
|
|
|
|
240
|
|
|
|
711
|
|
|
|
493
|
|
General and
administrative
|
|
|
(13,916)
|
|
|
|
(12,182)
|
|
|
|
(37,888)
|
|
|
|
(37,064)
|
|
Interest
expense
|
|
|
(181)
|
|
|
|
(157)
|
|
|
|
(456)
|
|
|
|
(397)
|
|
Mortgage
banking income
|
|
|
16,122
|
|
|
|
7,280
|
|
|
|
33,337
|
|
|
|
14,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
184,996
|
|
|
|
143,791
|
|
|
|
396,043
|
|
|
|
302,322
|
|
Income tax
expense
|
|
|
(68,526)
|
|
|
|
(53,639)
|
|
|
|
(147,120)
|
|
|
|
(120,143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
116,470
|
|
|
$
|
90,152
|
|
|
$
|
248,923
|
|
|
$
|
182,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
28.75
|
|
|
$
|
21.49
|
|
|
$
|
61.34
|
|
|
$
|
42.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
27.11
|
|
|
$
|
20.70
|
|
|
$
|
58.32
|
|
|
$
|
40.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
4,050
|
|
|
|
4,196
|
|
|
|
4,058
|
|
|
|
4,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
4,296
|
|
|
|
4,354
|
|
|
|
4,268
|
|
|
|
4,489
|
|
NVR,
Inc. Consolidated Balance Sheets
(in thousands, except share and per share data)
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|
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|
September 30,
2015
|
|
|
December 31,
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
375,886
|
|
|
$
|
514,780
|
|
Receivables
|
|
|
9,850
|
|
|
|
10,021
|
|
Inventory:
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under
|
|
|
|
|
|
|
|
|
sales agreements with
customers
|
|
|
987,933
|
|
|
|
690,955
|
|
Unsold lots and
housing units
|
|
|
110,589
|
|
|
|
131,938
|
|
Land under
development
|
|
|
53,203
|
|
|
|
33,689
|
|
Building materials and
other
|
|
|
9,730
|
|
|
|
12,904
|
|
|
|
|
1,161,455
|
|
|
|
869,486
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,799
|
|
|
|
3,590
|
|
Contract land
deposits, net
|
|
|
318,588
|
|
|
|
294,676
|
|
Property, plant and
equipment, net
|
|
|
44,911
|
|
|
|
46,242
|
|
Reorganization value
in excess of amounts
|
|
|
|
|
|
|
|
|
allocable to
identifiable assets, net
|
|
|
41,580
|
|
|
|
41,580
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
4,327
|
|
|
|
5,364
|
|
Other
assets
|
|
|
305,918
|
|
|
|
302,280
|
|
|
|
|
2,264,314
|
|
|
|
2,088,019
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
10,407
|
|
|
|
30,158
|
|
Mortgage loans held
for sale, net
|
|
|
260,074
|
|
|
|
205,664
|
|
Property and
equipment, net
|
|
|
5,502
|
|
|
|
6,189
|
|
Reorganization value
in excess of amounts
|
|
|
|
|
|
|
|
|
allocable to
identifiable assets, net
|
|
|
7,347
|
|
|
|
7,347
|
|
Other
assets
|
|
|
23,038
|
|
|
|
13,958
|
|
|
|
|
306,368
|
|
|
|
263,316
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,570,682
|
|
|
$
|
2,351,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
260,941
|
|
|
$
|
204,622
|
|
Accrued
expenses and other liabilities
|
|
|
301,594
|
|
|
|
289,058
|
|
Liabilities
related to consolidated variable interest entity
|
|
|
1,619
|
|
|
|
1,618
|
|
Non-recourse
debt related to consolidated
|
|
|
|
|
|
|
|
|
variable
interest entity
|
|
|
—
|
|
|
|
64
|
|
Customer
deposits
|
|
|
132,072
|
|
|
|
106,755
|
|
Senior
notes
|
|
|
599,237
|
|
|
|
599,166
|
|
|
|
|
1,295,463
|
|
|
|
1,201,283
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Accounts
payable and other liabilities
|
|
|
34,729
|
|
|
|
25,797
|
|
|
|
|
34,729
|
|
|
|
25,797
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,330,192
|
|
|
|
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 September 30,
2015 and December 31, 2014
|
|
206
|
|
|
206
|
|
Additional paid-in
capital
|
|
|
1,420,214
|
|
|
|
1,325,495
|
|
Deferred compensation
trust – 108,614 shares of
|
|
|
|
|
|
|
|
|
NVR, Inc. common stock
as of both
|
|
|
|
|
|
|
|
|
September 30, 2015 and
December 31, 2014
|
|
|
(17,333)
|
|
|
|
(17,333)
|
|
Deferred compensation
liability
|
|
|
17,333
|
|
|
|
17,333
|
|
Retained
earnings
|
|
|
5,136,110
|
|
|
|
4,887,187
|
|
Less treasury stock at
cost – 16,573,224 and
|
|
|
|
|
|
|
|
|
16,506,229 shares at
September 30, 2015 and
|
|
|
|
|
|
|
|
|
December 31, 2014,
respectively
|
|
|
(5,316,040)
|
|
|
|
(5,088,633)
|
|
Total shareholders'
equity
|
|
|
1,240,490
|
|
|
|
1,124,255
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,570,682
|
|
|
$
|
2,351,335
|
|
NVR,
Inc. Operating Activity
(dollars in thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,662
|
|
|
|
1,504
|
|
|
|
5,520
|
|
|
|
4,930
|
|
North East
(2)
|
|
|
304
|
|
|
|
310
|
|
|
|
936
|
|
|
|
896
|
|
Mid East
(3)
|
|
|
730
|
|
|
|
653
|
|
|
|
2,686
|
|
|
|
2,369
|
|
South East
(4)
|
|
|
562
|
|
|
|
469
|
|
|
|
1,838
|
|
|
|
1,481
|
|
Total
|
|
|
3,258
|
|
|
|
2,936
|
|
|
|
10,980
|
|
|
|
9,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
378.9
|
|
|
$
|
375.5
|
|
|
$
|
377.4
|
|
|
$
|
370.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,795
|
|
|
|
1,650
|
|
|
|
4,770
|
|
|
|
4,321
|
|
North East
(2)
|
|
|
337
|
|
|
|
276
|
|
|
|
899
|
|
|
|
780
|
|
Mid East
(3)
|
|
|
915
|
|
|
|
827
|
|
|
|
2,171
|
|
|
|
2,012
|
|
South East
(4)
|
|
|
560
|
|
|
|
483
|
|
|
|
1,476
|
|
|
|
1,277
|
|
Total
|
|
|
3,607
|
|
|
|
3,236
|
|
|
|
9,316
|
|
|
|
8,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
380.4
|
|
|
$
|
366.2
|
|
|
$
|
379.2
|
|
|
$
|
365.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
|
|
|
|
|
|
|
|
3,696
|
|
|
|
3,319
|
|
North East
(2)
|
|
|
|
|
|
|
|
|
|
|
625
|
|
|
|
611
|
|
Mid East
(3)
|
|
|
|
|
|
|
|
|
|
|
1,665
|
|
|
|
1,389
|
|
South East
(4)
|
|
|
|
|
|
|
|
|
|
|
1,153
|
|
|
|
912
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
7,139
|
|
|
|
6,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
|
|
|
|
|
|
|
|
$
|
380.6
|
|
|
$
|
378.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
469
|
|
|
|
493
|
|
|
|
473
|
|
|
|
489
|
|
Lots controlled at end
of period
|
|
|
|
|
|
|
|
|
|
|
73,000
|
|
|
|
68,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
951,872
|
|
|
$
|
803,125
|
|
|
$
|
2,449,902
|
|
|
$
|
1,951,682
|
|
Capture
rate
|
|
|
88
|
%
|
|
|
86
|
%
|
|
|
88
|
%
|
|
|
83
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
|
|
|
|
|
3,982,106
|
|
|
|
4,166,661
|
|
Number of shares
repurchased
|
|
|
128,097
|
|
|
|
53,988
|
|
|
|
183,128
|
|
|
|
371,727
|
|
Aggregate cost of
shares repurchased
|
|
$
|
194,161
|
|
|
$
|
61,989
|
|
|
$
|
263,446
|
|
|
$
|
409,436
|
|
(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
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nvr-inc-announces-third-quarter-results-300162368.html
SOURCE NVR, Inc.