RESTON, Va., April 21, 2016 /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, 2016 of $65,303,000, or $15.79 per diluted share. Net income and diluted
earnings per share for its first quarter ended March 31, 2016 increased 67% and 71%,
respectively, when compared to the 2015 first quarter. Consolidated
revenues for the first quarter of 2016 totaled $1,144,026,000, a 19% increase from $957,749,000 for the comparable 2015 quarter.
Homebuilding
New orders in the first quarter of 2016 increased 5% to 4,137
units, when compared to 3,926 units in the first quarter of 2015.
The average sales price of new orders was $375,700, which was flat when compared with the
average sales price of new orders in the first quarter of 2015.
The cancellation rate in the first quarter of 2016 was 15%,
compared to 12% in the first quarter of 2015. Settlements
increased in the first quarter of 2016 to 3,006 units, 19% higher
than the first quarter of 2015. The Company's backlog of
homes sold but not settled as of March 31,
2016 increased by 7% on both a unit and dollar basis to
7,360 units and to $2,818,394,000
when compared to March 31, 2015.
Homebuilding revenues for the three months ended March 31, 2016 totaled $1,121,504,000, 19% higher than the year earlier
period. Gross profit margins increased to 17.5% in the 2016 first
quarter compared to 17.0% for the same period in 2015. Income
before tax from the homebuilding segment totaled $93,654,000 in the first quarter of 2016, an
increase of 66% when compared to the first quarter of 2015.
Mortgage Banking
Mortgage closed loan production of $753,840,000 for the three months ended
March 31, 2016 increased by 18% when
compared to the first quarter ended March
31, 2015. Operating income for the mortgage banking
operations during the first quarter of 2016 was $9,658,000, compared to $5,779,000 reported for the first quarter of
2015.
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
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,121,504
|
|
|
$
|
941,538
|
|
|
Other
income
|
|
|
767
|
|
|
|
725
|
|
|
Cost of
sales
|
|
|
(925,760)
|
|
|
|
(781,668)
|
|
|
Selling, general and
administrative
|
|
|
(98,015)
|
|
|
|
(98,229)
|
|
|
Operating
income
|
|
|
98,496
|
|
|
|
62,366
|
|
|
Interest
expense
|
|
|
(4,842)
|
|
|
|
(5,782)
|
|
|
Homebuilding income
|
|
|
93,654
|
|
|
|
56,584
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
22,522
|
|
|
|
16,211
|
|
|
Interest
income
|
|
|
1,674
|
|
|
|
1,078
|
|
|
Other
income
|
|
|
258
|
|
|
|
105
|
|
|
General and
administrative
|
|
|
(14,550)
|
|
|
|
(11,479)
|
|
|
Interest
expense
|
|
|
(246)
|
|
|
|
(136)
|
|
|
Mortgage
banking income
|
|
|
9,658
|
|
|
|
5,779
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
103,312
|
|
|
|
62,363
|
|
|
Income tax
expense
|
|
|
(38,009)
|
|
|
|
(23,305)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
65,303
|
|
|
$
|
39,058
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
16.81
|
|
|
$
|
9.63
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
15.79
|
|
|
$
|
9.22
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
3,884
|
|
|
|
4,057
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
4,135
|
|
|
|
4,235
|
|
|
NVR,
Inc.
Consolidated Balance
Sheets
(in thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
|
December 31,
2015
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
302,945
|
|
|
$
|
397,522
|
|
|
Receivables
|
|
|
13,829
|
|
|
|
11,482
|
|
|
Inventory:
|
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
|
915,352
|
|
|
|
785,982
|
|
|
Unsold lots and
housing units
|
|
|
168,945
|
|
|
|
147,832
|
|
|
Land under
development
|
|
|
163,826
|
|
|
|
60,611
|
|
|
Building materials and
other
|
|
|
13,012
|
|
|
|
12,101
|
|
|
|
|
1,261,135
|
|
|
|
1,006,526
|
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,731
|
|
|
|
1,749
|
|
|
Contract land
deposits, net
|
|
|
346,951
|
|
|
|
343,295
|
|
|
Property, plant and
equipment, net
|
|
|
44,933
|
|
|
|
44,651
|
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
41,580
|
|
|
|
41,580
|
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
3,636
|
|
|
|
3,982
|
|
|
Other
assets
|
|
|
289,800
|
|
|
|
281,381
|
|
|
|
|
2,306,540
|
|
|
|
2,132,168
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
15,042
|
|
|
|
26,804
|
|
|
Mortgage
loans held for sale, net
|
|
|
189,191
|
|
|
|
319,553
|
|
|
Property
and equipment, net
|
|
|
5,093
|
|
|
|
5,313
|
|
|
Reorganization value in excess
of amounts allocable to identifiable assets, net
|
|
|
7,347
|
|
|
|
7,347
|
|
|
Other
assets
|
|
|
18,438
|
|
|
|
20,533
|
|
|
|
|
235,111
|
|
|
|
379,550
|
|
|
Total
assets
|
|
$
|
2,541,651
|
|
|
$
|
2,511,718
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
232,221
|
|
|
$
|
227,437
|
|
|
Accrued
expenses and other liabilities
|
|
|
298,045
|
|
|
|
304,922
|
|
|
Liabilities related to consolidated variable interest
entity
|
|
|
1,230
|
|
|
|
1,091
|
|
|
Customer
deposits
|
|
|
126,552
|
|
|
|
110,965
|
|
|
Senior
notes
|
|
|
595,999
|
|
|
|
595,847
|
|
|
|
|
1,254,047
|
|
|
|
1,240,262
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Accounts
payable and other liabilities
|
|
|
31,141
|
|
|
|
32,291
|
|
|
|
|
31,141
|
|
|
|
32,291
|
|
|
Total
liabilities
|
|
|
1,285,188
|
|
|
|
1,272,553
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01
par value; 60,000,000 shares authorized; 20,555,330
|
|
|
|
|
|
|
|
|
|
shares issued as of
both March 31, 2016 and December 31, 2015
|
|
|
206
|
|
|
|
206
|
|
|
Additional paid-in
capital
|
|
|
1,467,000
|
|
|
|
1,447,795
|
|
|
Deferred compensation
trust – 108,621 and 108,614 shares of NVR, Inc.
|
|
|
|
|
|
|
|
|
|
common stock as of
March 31, 2016 and December 31, 2015, respectively
|
|
|
(17,343)
|
|
|
|
(17,333)
|
|
|
Deferred compensation
liability
|
|
|
17,343
|
|
|
|
17,333
|
|
|
Retained
earnings
|
|
|
5,335,417
|
|
|
|
5,270,114
|
|
|
Less treasury stock at
cost – 16,660,526 and 16,664,342 shares
|
|
|
|
|
|
|
|
|
|
at March 31, 2016 and
December 31, 2015, respectively
|
|
|
(5,546,160)
|
|
|
|
(5,478,950)
|
|
|
Total shareholders'
equity
|
|
|
1,256,463
|
|
|
|
1,239,165
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,541,651
|
|
|
$
|
2,511,718
|
|
|
NVR,
Inc.
Operating
Activity
(dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
2,029
|
|
|
|
1,948
|
|
|
North East
(2)
|
|
|
341
|
|
|
|
337
|
|
|
Mid East
(3)
|
|
|
1,057
|
|
|
|
994
|
|
|
South East
(4)
|
|
|
710
|
|
|
|
647
|
|
|
Total
|
|
|
4,137
|
|
|
|
3,926
|
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
375.7
|
|
|
$
|
375.4
|
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,455
|
|
|
|
1,296
|
|
|
North East
(2)
|
|
|
277
|
|
|
|
239
|
|
|
Mid East
(3)
|
|
|
761
|
|
|
|
582
|
|
|
South East
(4)
|
|
|
513
|
|
|
|
417
|
|
|
Total
|
|
|
3,006
|
|
|
|
2,534
|
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
369.5
|
|
|
$
|
371.0
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
3,711
|
|
|
|
3,598
|
|
|
North East
(2)
|
|
|
604
|
|
|
|
686
|
|
|
Mid East
(3)
|
|
|
1,794
|
|
|
|
1,562
|
|
|
South East
(4)
|
|
|
1,251
|
|
|
|
1,021
|
|
|
Total
|
|
|
7,360
|
|
|
|
6,867
|
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
$
|
382.9
|
|
|
$
|
384.3
|
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
478
|
|
|
|
474
|
|
|
Lots controlled at end
of period
|
|
|
75,400
|
|
|
|
69,600
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
753,840
|
|
|
$
|
638,627
|
|
|
Capture
rate
|
|
|
88
|
%
|
|
|
87
|
%
|
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
3,894,804
|
|
|
|
4,062,712
|
|
|
Number of shares
repurchased
|
|
|
56,388
|
|
|
|
50,326
|
|
|
Aggregate cost of
shares repurchased
|
|
$
|
87,101
|
|
|
$
|
63,099
|
|
|
(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-first-quarter-results-300254950.html
SOURCE NVR, Inc.