RESTON, Va., Oct. 20, 2016 /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, 2016 of
$117,392,000, or $28.46 per diluted share. Net income and diluted
earnings per share for the third quarter ended September 30, 2016 increased by 1% and 5%,
respectively, when compared to the third quarter of 2015.
Consolidated revenues for the third quarter of 2016 totaled
$1,537,569,000, a 10% increase from
$1,402,351,000 for the comparable
2015 quarter.
For the nine months ended September 30,
2016, consolidated revenues were $4,069,778,000, 13% higher than the $3,603,733,000 reported for the same period of
2015. Net income for the nine months ended September 30, 2016 was $274,371,000, an increase of 10% when compared to
the nine months ended September 30,
2015. Diluted earnings per share for the nine months ended
September 30, 2016 was $66.24, an increase of 14% from $58.32 per diluted share for the comparable
period of 2015.
Homebuilding
New orders in the third quarter of 2016 increased 7% to 3,477
units, when compared to 3,258 units in the third quarter of 2015.
The average sales price of new orders was $392,800, a 4% increase when compared with the
average sales price of new orders in the third quarter of 2015. The
cancellation rate in the third quarter of 2016 was 18%, compared to
17% in the third quarter of 2015. Settlements increased in the
third quarter of 2016 to 3,922 units, 9% higher than the third
quarter of 2015. The Company's backlog of homes sold but not
settled as of September 30, 2016
increased on a unit basis by 7% to 7,658 units and increased on a
dollar basis by 10% to $2,981,894,000
when compared to September 30,
2015.
Homebuilding revenues for the three months ended September 30, 2016 totaled $1,507,451,000, 10% higher than the year earlier
period. Gross profit margin decreased to 17.6% in the 2016 third
quarter compared to 19.1% for the same period in 2015. Income
before tax from the homebuilding segment totaled $167,657,000 in the third quarter of 2016, a 1%
decrease compared to the third quarter of 2015.
Mortgage Banking
Mortgage closed loan production of $1,055,163,000 for the third quarter ended
September 30, 2016 increased by 11%
when compared to the third quarter ended September 30, 2015. Operating income for the
mortgage banking operations during the third quarter of 2016
increased 8% to $17,346,000, compared
to $16,122,000 reported for the third
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 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 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,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,507,451
|
|
|
$
|
1,374,467
|
|
|
$
|
3,990,696
|
|
|
$
|
3,537,116
|
|
|
Other
income
|
|
|
703
|
|
|
|
643
|
|
|
|
2,223
|
|
|
|
2,490
|
|
|
Cost of
sales
|
|
|
(1,242,292)
|
|
|
|
(1,111,672)
|
|
|
|
(3,294,421)
|
|
|
|
(2,880,194)
|
|
|
Selling, general and
administrative
|
|
|
(92,867)
|
|
|
|
(88,664)
|
|
|
|
(290,925)
|
|
|
|
(279,207)
|
|
|
Operating
income
|
|
|
172,995
|
|
|
|
174,774
|
|
|
|
407,573
|
|
|
|
380,205
|
|
|
Interest
expense
|
|
|
(5,338)
|
|
|
|
(5,900)
|
|
|
|
(14,734)
|
|
|
|
(17,499)
|
|
|
Homebuilding
income
|
|
|
167,657
|
|
|
|
168,874
|
|
|
|
392,839
|
|
|
|
362,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
30,118
|
|
|
|
27,884
|
|
|
|
79,082
|
|
|
|
66,617
|
|
|
Interest
income
|
|
|
2,000
|
|
|
|
1,972
|
|
|
|
5,111
|
|
|
|
4,353
|
|
|
Other
income
|
|
|
473
|
|
|
|
363
|
|
|
|
1,140
|
|
|
|
711
|
|
|
General and
administrative
|
|
|
(14,959)
|
|
|
|
(13,916)
|
|
|
|
(44,345)
|
|
|
|
(37,888)
|
|
|
Interest
expense
|
|
|
(286)
|
|
|
|
(181)
|
|
|
|
(792)
|
|
|
|
(456)
|
|
|
Mortgage banking
income
|
|
|
17,346
|
|
|
|
16,122
|
|
|
|
40,196
|
|
|
|
33,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
185,003
|
|
|
|
184,996
|
|
|
|
433,035
|
|
|
|
396,043
|
|
|
Income tax
expense
|
|
|
(67,611)
|
|
|
|
(68,526)
|
|
|
|
(158,664)
|
|
|
|
(147,120)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
117,392
|
|
|
$
|
116,470
|
|
|
$
|
274,371
|
|
|
$
|
248,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
30.43
|
|
|
$
|
28.75
|
|
|
$
|
70.70
|
|
|
$
|
61.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
28.46
|
|
|
$
|
27.11
|
|
|
$
|
66.24
|
|
|
$
|
58.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
3,858
|
|
|
|
4,050
|
|
|
|
3,881
|
|
|
|
4,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
4,125
|
|
|
|
4,296
|
|
|
|
4,142
|
|
|
|
4,268
|
|
|
NVR,
Inc.
Consolidated Balance
Sheets
(in thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
249,728
|
|
|
$
|
397,522
|
|
|
Receivables
|
|
|
13,921
|
|
|
|
11,482
|
|
|
Inventory:
|
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
|
1,107,919
|
|
|
|
785,982
|
|
|
Unsold lots and
housing units
|
|
|
134,626
|
|
|
|
147,832
|
|
|
Land under
development
|
|
|
62,327
|
|
|
|
60,611
|
|
|
Building materials and
other
|
|
|
11,858
|
|
|
|
12,101
|
|
|
|
|
1,316,730
|
|
|
|
1,006,526
|
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,247
|
|
|
|
1,749
|
|
|
Contract land
deposits, net
|
|
|
377,496
|
|
|
|
343,295
|
|
|
Property, plant and
equipment, net
|
|
|
45,321
|
|
|
|
44,651
|
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
41,580
|
|
|
|
41,580
|
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
2,945
|
|
|
|
3,982
|
|
|
Other
assets
|
|
|
280,245
|
|
|
|
281,381
|
|
|
|
|
2,329,213
|
|
|
|
2,132,168
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
11,490
|
|
|
|
26,804
|
|
|
Mortgage loans held
for sale, net
|
|
|
291,303
|
|
|
|
319,553
|
|
|
Property and
equipment, net
|
|
|
5,085
|
|
|
|
5,313
|
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
7,347
|
|
|
|
7,347
|
|
|
Other
assets
|
|
|
18,778
|
|
|
|
20,533
|
|
|
|
|
334,003
|
|
|
|
379,550
|
|
|
Total
assets
|
|
$
|
2,663,216
|
|
|
$
|
2,511,718
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
281,530
|
|
|
$
|
227,437
|
|
|
Accrued expenses and
other liabilities
|
|
|
309,939
|
|
|
|
304,922
|
|
|
Liabilities related to
consolidated variable interest entity
|
|
|
877
|
|
|
|
1,091
|
|
|
Customer
deposits
|
|
|
144,697
|
|
|
|
110,965
|
|
|
Senior
notes
|
|
|
596,303
|
|
|
|
595,847
|
|
|
|
|
1,333,346
|
|
|
|
1,240,262
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Accounts payable and
other liabilities
|
|
|
30,731
|
|
|
|
32,291
|
|
|
|
|
30,731
|
|
|
|
32,291
|
|
|
Total
liabilities
|
|
|
1,364,077
|
|
|
|
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 September 30,
2016 and December 31, 2015
|
|
|
206
|
|
|
|
206
|
|
|
Additional paid-in
capital
|
|
|
1,499,770
|
|
|
|
1,447,795
|
|
|
Deferred compensation
trust – 108,635 and 108,614 shares of NVR, Inc. common stock as
of September 30, 2016 and
December 31, 2015, respectively
|
|
|
(17,367)
|
|
|
|
(17,333)
|
|
|
Deferred compensation
liability
|
|
|
17,367
|
|
|
|
17,333
|
|
|
Retained
earnings
|
|
|
5,544,485
|
|
|
|
5,270,114
|
|
|
Less treasury stock at
cost – 16,766,035 and 16,664,342 shares as of September 30, 2016
and December 31, 2015, respectively
|
|
|
(5,745,322)
|
|
|
|
(5,478,950)
|
|
|
Total shareholders'
equity
|
|
|
1,299,139
|
|
|
|
1,239,165
|
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,663,216
|
|
|
$
|
2,511,718
|
|
|
NVR,
Inc.
Operating
Activity
(dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,817
|
|
|
|
1,662
|
|
|
|
6,088
|
|
|
|
5,520
|
|
|
North East
(2)
|
|
|
305
|
|
|
|
304
|
|
|
|
960
|
|
|
|
936
|
|
|
Mid East
(3)
|
|
|
769
|
|
|
|
730
|
|
|
|
2,829
|
|
|
|
2,686
|
|
|
South East
(4)
|
|
|
586
|
|
|
|
562
|
|
|
|
2,061
|
|
|
|
1,838
|
|
|
Total
|
|
|
3,477
|
|
|
|
3,258
|
|
|
|
11,938
|
|
|
|
10,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
392.8
|
|
|
$
|
378.9
|
|
|
$
|
383.6
|
|
|
$
|
377.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,984
|
|
|
|
1,795
|
|
|
|
5,201
|
|
|
|
4,770
|
|
|
North East
(2)
|
|
|
330
|
|
|
|
337
|
|
|
|
896
|
|
|
|
899
|
|
|
Mid East
(3)
|
|
|
1,013
|
|
|
|
915
|
|
|
|
2,708
|
|
|
|
2,171
|
|
|
South
East (4)
|
|
|
595
|
|
|
|
560
|
|
|
|
1,704
|
|
|
|
1,476
|
|
|
Total
|
|
|
3,922
|
|
|
|
3,607
|
|
|
|
10,509
|
|
|
|
9,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
384.1
|
|
|
$
|
380.4
|
|
|
$
|
378.0
|
|
|
$
|
379.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
|
|
|
|
|
|
|
|
4,024
|
|
|
|
3,696
|
|
|
North East
(2)
|
|
|
|
|
|
|
|
|
|
|
604
|
|
|
|
625
|
|
|
Mid East
(3)
|
|
|
|
|
|
|
|
|
|
|
1,619
|
|
|
|
1,665
|
|
|
South East
(4)
|
|
|
|
|
|
|
|
|
|
|
1,411
|
|
|
|
1,153
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
7,658
|
|
|
|
7,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
|
|
|
|
|
|
|
|
$
|
389.4
|
|
|
$
|
380.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
484
|
|
|
|
469
|
|
|
|
482
|
|
|
|
473
|
|
|
Lots controlled at end
of period
|
|
|
|
|
|
|
|
|
|
|
77,300
|
|
|
|
73,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
1,055,163
|
|
|
$
|
951,872
|
|
|
$
|
2,751,410
|
|
|
$
|
2,449,902
|
|
|
Capture
rate
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
|
|
|
|
|
3,789,295
|
|
|
|
3,982,106
|
|
|
Number of shares
repurchased
|
|
|
116,318
|
|
|
|
128,097
|
|
|
|
178,306
|
|
|
|
183,128
|
|
|
Aggregate cost of
shares repurchased
|
|
$
|
195,235
|
|
|
$
|
194,161
|
|
|
$
|
291,743
|
|
|
$
|
263,446
|
|
|
|
|
|
|
|
|
|
(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-300347988.html
SOURCE NVR, Inc.