RESTON, Va., Oct. 21 /PRNewswire-FirstCall/ -- 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, 2009 of $72,127,000, $11.59 per diluted share. Net
income and diluted earnings per share for its third quarter ended
September 30, 2009 increased 97% and 89%, respectively, compared to
the 2008 third quarter. Consolidated revenues for the third quarter
of 2009 totaled $814,016,000, a 13% decrease from $939,211,000 for
the comparable 2008 quarter. For the nine months ended September
30, 2009, consolidated revenues were $1,998,046,000, 28% lower than
the $2,782,865,000 reported for the same period of 2008. Net income
for the nine months ended September 30, 2009 was $131,541,000,
compared to $131,349,000 for the nine months ended September 30,
2008. Diluted earnings per share for the nine months ended
September 30, 2009 was $21.57, a decrease of 3% from $22.21 per
diluted share for the comparable period of 2008. Homebuilding New
orders in the third quarter of 2009 increased 13% to 2,255 units,
compared to 2,002 units in the third quarter of 2008. The
cancellation rate in the quarter ended September 30, 2009 was 14%
compared to 24% in the third quarter of 2008 and 14% in the second
quarter of 2009. Settlements decreased in the third quarter of 2009
to 2,671 units, 3% less than the same period of 2008. The Company's
backlog of homes sold but not settled at the end of the 2009
quarter decreased on a unit basis by 11% to 4,081 units and on a
dollar basis by 19% to $1,210,447,000 as compared to the same
period last year. Homebuilding revenues for the three months ended
September 30, 2009 totaled $792,510,000, 15% lower than the year
earlier period. Gross profit margins increased to 19.7% in the 2009
third quarter compared to 13.2% for the same period in 2008. The
third quarter 2008 gross profit margin results were negatively
impacted by a $42,839,000 land deposit impairment charge. Income
before tax from homebuilding operations totaled $98,626,000 in the
2009 third quarter, an increase of 74% compared to the third
quarter of the previous year. Mortgage Banking Mortgage closed loan
production of $603,317,000 for the three months ended September 30,
2009 was 1% lower than the same period last year. Operating income
for the mortgage banking operations during the third quarter of
2009 increased to $14,814,000, compared to $4,072,000 reported for
the same period of 2008. Operating income in the current quarter
was favorably impacted by an increase in unrealized income from the
fair value measurement of locked loan commitments, forward
mortgage-backed securities sales and closed loans held for sale,
and by a decrease in incentives given to borrowers. 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. 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
variations thereof or comparable terminology, or by discussion of
strategies, each of which involves risks and uncertainties. All
statements other than those of historical facts included herein,
including those regarding market trends, NVR's financial position,
business strategy, the outcome of pending litigation, projected
plans and objectives of management for future operations, are
forward-looking statements. 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, general economic and
business conditions (on both a national and regional level),
interest rate changes, access to suitable financing by NVR and by
NVR's customers, 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 moratoria,
governmental regulation, the ability of NVR to integrate any
acquired business, fluctuation and volatility of stock and other
financial markets, mortgage financing availability and other
factors over which NVR has little or no control. The Company has no
obligation to update such forward-looking statements. NVR, Inc.
Consolidated Statements of Income (in thousands, except per share
data) (Unaudited) Three Months Ended Nine Months Ended September
30, September 30, ---------------------------------------------
2009 2008 2009 2008 ---- ---- ---- ---- Homebuilding: Revenues
$792,510 $928,265 $1,953,327 $2,739,167 Other income 2,222 4,256
6,511 14,356 Cost of sales (636,642) (805,931) (1,593,512)
(2,305,231) Selling, general and administrative (56,662) (66,796)
(171,020) (240,833) ------- ------- -------- -------- Operating
income 101,428 59,794 195,306 207,459 Interest expense (2,802)
(3,259) (8,038) (9,730) ------ ------ ------ ------ Homebuilding
income 98,626 56,535 187,268 197,729 ------ ------ ------- -------
Mortgage Banking: Mortgage banking fees 21,506 10,946 44,719 43,698
Interest income 887 929 2,082 2,608 Other income 215 188 458 531
General and administrative (7,486) (7,761) (19,719) (23,823)
Interest expense (308) (230) (921) (544) ---- ---- ---- ----
Mortgage banking income 14,814 4,072 26,619 22,470 ------ -----
------ ------ Income before taxes 113,440 60,607 213,887 220,199
Income tax expense (41,313) (24,056) (82,346) (88,850) -------
------- ------- ------- Net income $72,127 $36,551 $131,541
$131,349 ======= ======= ======== ======== Basic earnings per share
$12.29 $6.72 $22.83 $24.60 ====== ===== ====== ====== Diluted
earnings per share $11.59 $6.12 $21.57 $22.21 ====== ===== ======
====== Basic average shares outstanding 5,866 5,438 5,762 5,340
===== ===== ===== ===== Diluted average shares outstanding 6,223
5,968 6,098 5,915 ===== ===== ===== ===== NVR, Inc. Consolidated
Balance Sheets (in thousands, except share and per share data)
September 30, December 31, 2009 2008 ------------- -------------
(unaudited) ASSETS Homebuilding: Cash and cash equivalents
$1,114,581 $1,146,426 Marketable securities 259,406 - Receivables
9,015 11,594 Inventory: Lots and housing units, covered under sales
agreements with customers 415,104 335,238 Unsold lots and housing
units 59,370 57,639 Manufacturing materials and other 4,365 7,693
----- ----- 478,839 400,570 Contract land deposits, net 32,326
29,073 Consolidated assets not owned 57,461 114,930 Property, plant
and equipment, net 20,624 25,658 Reorganization value in excess of
Amounts allocable to identifiable assets, net 41,580 41,580 Other
assets, net 231,968 242,626 ------- ------- 2,245,800 2,012,457
--------- --------- Mortgage Banking: Cash and cash equivalents
1,090 1,217 Mortgage loans held for sale, net 110,095 72,488
Property and equipment, net 544 759 Reorganization value in excess
of Amounts allocable to identifiable assets, net 7,347 7,347 Other
assets 9,904 8,968 ----- ----- 128,980 90,779 ------- ------ Total
assets $2,374,780 $2,103,236 ========== ========== NVR, Inc.
Consolidated Balance Sheets (Continued) (in thousands, except share
and per share data) September 30, December 31, 2009 2008
------------- ------------ (unaudited) LIABILITIES AND
SHAREHOLDERS' EQUITY Homebuilding: Accounts payable $150,304
$137,285 Accrued expenses and other liabilities 198,106 194,869
Liabilities related to consolidated assets not owned 52,896 109,439
Customer deposits 66,819 59,623 Other term debt 2,294 2,530 Senior
notes 133,370 163,320 ------- ------- 603,789 667,066 -------
------- Mortgage Banking: Accounts payable and other liabilities
23,797 17,842 Notes payable 75,607 44,539 ------ ------ 99,404
62,381 ------ ------ Total liabilities 703,193 729,447 -------
------- Commitments and contingencies Shareholders' equity: Common
stock, $0.01 par value; 60,000,000 shares authorized; 20,559,671
and 20,561,187 shares issued for September 30, 2009 and December
31, 2008, respectively 206 206 Additional paid-in capital 810,132
722,265 Deferred compensation trust - 265,278 and 514,470 shares of
NVR, Inc. common stock for September 30, 2009 and December 31,
2008, respectively (40,799) (74,978) Deferred compensation
liability 40,799 74,978 Retained earnings 3,762,428 3,630,887 Less
treasury stock at cost - 14,632,950 and 15,028,335 shares for
September 30, 2009 and December 31, 2008, respectively (2,901,179)
(2,979,569) ---------- ---------- Total shareholders' equity
1,671,587 1,373,789 --------- --------- Total liabilities and
shareholders' equity $2,374,780 $2,103,236 ========== ==========
NVR, Inc. Operating Activity (unaudited) (dollars in thousands)
Three Months Ended Nine Months Ended September 30, September 30,
---------------------------------------------- 2009 2008 2009 2008
---- ---- ---- ---- Homebuilding data: New orders (units): Mid
Atlantic (1) 1,199 965 3,823 3,598 North East (2) 222 205 703 725
Mid East (3) 560 577 2,007 2,020 South East (4) 274 255 876 1,060
--- --- --- ----- Total 2,255 2,002 7,409 7,403 ===== ===== =====
===== Average new order price $297.1 $302.9 $291.3 $314.1
Settlements (units): Mid Atlantic (1) 1,388 1,266 3,373 3,851 North
East (2) 260 264 641 813 Mid East (3) 722 756 1,668 2,012 South
East (4) 301 464 810 1,289 --- --- --- ----- Total 2,671 2,750
6,492 7,965 ===== ===== ===== ===== Average settlement price $296.3
$337.1 $300.4 $343.5 Backlog (units): Mid Atlantic (1) 2,226 2,473
North East (2) 365 417 Mid East (3) 1,070 1,121 South East (4) 420
572 --- --- Total 4,081 4,583 ===== ===== Average backlog price
$296.6 $327.3 Community count (average) 354 426 356 437 Lots
controlled at end of period 43,700 58,300 Mortgage banking data:
Loan closings $603,317 $610,313 $1,518,229 $1,727,718 Capture rate
91% 86% 91% 84% Common stock information: Shares outstanding at end
of period 5,926,721 5,452,247 (1) Virginia, West Virginia, Maryland
and Delaware (2) Eastern Pennsylvania and New Jersey (3) Western
Pennsylvania, Kentucky, New York and Ohio (4) North Carolina, South
Carolina, Florida and Tennessee DATASOURCE: NVR, Inc. CONTACT: Dan
Malzahn of NVR, Inc., +1-703-956-4204 Web Site:
http://www.nvrinc.com/
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