RESTON, Va., July 21, 2016 /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, 2016 of $91,676,000, or $22.01 per diluted share. Net income for its
second quarter ended June 30, 2016
decreased 2% when compared to the second quarter of 2015. Diluted
earnings per share was flat when compared to the second quarter of
2015. Consolidated revenues for the second quarter of 2016 totaled
$1,388,183,000, a 12% increase from
$1,243,633,000 for the comparable
2015 quarter.
For the six months ended June 30,
2016, consolidated revenues were $2,532,209,000, 15% higher than the $2,201,382,000 reported for the same period of
2015. Net income for the six months ended June 30, 2016 was $156,979,000, an increase of 19% when compared to
the six months ended June 30, 2015.
Diluted earnings per share for the six months ended June 30, 2016 was $37.82, an increase of 21% from $31.17 per diluted share for the comparable
period of 2015.
Homebuilding
New orders in the second quarter of 2016 increased 14% to 4,324
units, when compared to 3,796 units in the second quarter of 2015.
The average sales price of new orders was $383,900, a 1% increase when compared with the
average sales price of new orders in the second quarter of 2015.
The cancellation rate in the second quarter of 2016 was 13%,
compared to 14% in the second quarter of 2015. Settlements
increased in the second quarter of 2016 to 3,581 units, 13% higher
than the second quarter of 2015. The Company's backlog of homes
sold but not settled as of June 30,
2016 increased on a unit basis by 8% to 8,103 units and
increased on a dollar basis by 9% to $3,122,534,000 when compared to June 30, 2015.
Homebuilding revenues for the three months ended June 30, 2016 totaled $1,361,741,000, 12% higher than the year earlier
period. Gross profit margin decreased to 17.3% in the 2016 second
quarter compared to 19.2% for the same period in 2015. Gross profit
margin was negatively impacted by a 2% decrease in the average
settlement price and higher construction costs in the second
quarter of 2016 compared to the same period of 2015. Income before
tax from the homebuilding segment totaled $131,528,000 in the second quarter of 2016, a
decrease of 4% when compared to the second quarter of 2015.
During the second quarter of 2016, the Company sold the
previously disclosed land parcel it had acquired in February 2016 to a developer for an amount which
approximated NVR's net investment in the property. The
Company also entered into lot purchase agreements with the
developer for the option to purchase a portion of the finished lots
expected to be developed from the parcel.
Mortgage Banking
Mortgage closed loan production of $942,407,000 for the three months ended
June 30, 2016 increased by 10% when
compared to the three months ended June 30,
2015. Operating income for the mortgage banking operations
during the second quarter of 2016 was $13,192,000, compared to $11,436,000 reported for the second 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
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,361,741
|
|
|
$
|
1,221,111
|
|
|
$
|
2,483,245
|
|
|
$
|
2,162,649
|
|
Other
income
|
|
|
753
|
|
|
|
1,122
|
|
|
|
1,520
|
|
|
|
1,847
|
|
Cost of
sales
|
|
|
(1,126,369)
|
|
|
|
(986,854)
|
|
|
|
(2,052,129)
|
|
|
|
(1,768,522)
|
|
Selling, general and
administrative
|
|
|
(100,043)
|
|
|
|
(92,314)
|
|
|
|
(198,058)
|
|
|
|
(190,543)
|
|
Operating
income
|
|
|
136,082
|
|
|
|
143,065
|
|
|
|
234,578
|
|
|
|
205,431
|
|
Interest
expense
|
|
|
(4,554)
|
|
|
|
(5,817)
|
|
|
|
(9,396)
|
|
|
|
(11,599)
|
|
Homebuilding
income
|
|
|
131,528
|
|
|
|
137,248
|
|
|
|
225,182
|
|
|
|
193,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
26,442
|
|
|
|
22,522
|
|
|
|
48,964
|
|
|
|
38,733
|
|
Interest
income
|
|
|
1,437
|
|
|
|
1,303
|
|
|
|
3,111
|
|
|
|
2,381
|
|
Other
income
|
|
|
409
|
|
|
|
243
|
|
|
|
667
|
|
|
|
348
|
|
General and
administrative
|
|
|
(14,836)
|
|
|
|
(12,493)
|
|
|
|
(29,386)
|
|
|
|
(23,972)
|
|
Interest
expense
|
|
|
(260)
|
|
|
|
(139)
|
|
|
|
(506)
|
|
|
|
(275)
|
|
Mortgage
banking income
|
|
|
13,192
|
|
|
|
11,436
|
|
|
|
22,850
|
|
|
|
17,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
144,720
|
|
|
|
148,684
|
|
|
|
248,032
|
|
|
|
211,047
|
|
Income tax
expense
|
|
|
(53,044)
|
|
|
|
(55,289)
|
|
|
|
(91,053)
|
|
|
|
(78,594)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
91,676
|
|
|
$
|
93,395
|
|
|
$
|
156,979
|
|
|
$
|
132,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
23.51
|
|
|
$
|
22.97
|
|
|
$
|
40.34
|
|
|
$
|
32.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
22.01
|
|
|
$
|
21.91
|
|
|
$
|
37.82
|
|
|
$
|
31.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
3,900
|
|
|
|
4,066
|
|
|
|
3,892
|
|
|
|
4,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
4,165
|
|
|
|
4,262
|
|
|
|
4,151
|
|
|
|
4,249
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
(Unaudited)
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
353,176
|
|
|
$
|
397,522
|
|
Receivables
|
|
|
17,464
|
|
|
|
11,482
|
|
Inventory:
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
|
1,046,334
|
|
|
|
785,982
|
|
Unsold lots and
housing units
|
|
|
127,210
|
|
|
|
147,832
|
|
Land under
development
|
|
|
58,751
|
|
|
|
60,611
|
|
Building materials and
other
|
|
|
15,319
|
|
|
|
12,101
|
|
|
|
|
1,247,614
|
|
|
|
1,006,526
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,311
|
|
|
|
1,749
|
|
Contract land
deposits, net
|
|
|
375,071
|
|
|
|
343,295
|
|
Property, plant and
equipment, net
|
|
|
46,067
|
|
|
|
44,651
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
41,580
|
|
|
|
41,580
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
3,291
|
|
|
|
3,982
|
|
Other
assets
|
|
|
293,818
|
|
|
|
281,381
|
|
|
|
|
2,379,392
|
|
|
|
2,132,168
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
10,026
|
|
|
|
26,804
|
|
Mortgage loans
held for sale, net
|
|
|
275,145
|
|
|
|
319,553
|
|
Property and
equipment, net
|
|
|
5,079
|
|
|
|
5,313
|
|
Reorganization
value in excess of amounts allocable to identifiable assets,
net
|
|
|
7,347
|
|
|
|
7,347
|
|
Other
assets
|
|
|
21,435
|
|
|
|
20,533
|
|
|
|
|
319,032
|
|
|
|
379,550
|
|
Total
assets
|
|
$
|
2,698,424
|
|
|
$
|
2,511,718
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
272,768
|
|
|
$
|
227,437
|
|
Accrued
expenses and other liabilities
|
|
|
294,604
|
|
|
|
304,922
|
|
Liabilities
related to consolidated variable interest entity
|
|
|
951
|
|
|
|
1,091
|
|
Customer
deposits
|
|
|
141,746
|
|
|
|
110,965
|
|
Senior
notes
|
|
|
596,151
|
|
|
|
595,847
|
|
|
|
|
1,306,220
|
|
|
|
1,240,262
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Accounts
payable and other liabilities
|
|
|
34,603
|
|
|
|
32,291
|
|
|
|
|
34,603
|
|
|
|
32,291
|
|
Total
liabilities
|
|
|
1,340,823
|
|
|
|
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 June 30, 2016 and December 31, 2015
|
|
|
206
|
|
|
|
206
|
|
Additional paid-in
capital
|
|
|
1,483,064
|
|
|
|
1,447,795
|
|
Deferred compensation
trust – 108,628 and 108,614 shares of NVR, Inc.
|
|
|
|
|
|
|
|
|
common stock as of
June 30, 2016 and December 31, 2015, respectively
|
|
|
(17,355)
|
|
|
|
(17,333)
|
|
Deferred compensation
liability
|
|
|
17,355
|
|
|
|
17,333
|
|
Retained
earnings
|
|
|
5,427,093
|
|
|
|
5,270,114
|
|
Less treasury stock at
cost – 16,657,701 and 16,664,342 shares
|
|
|
|
|
|
|
|
|
at June 30, 2016 and
December 31, 2015, respectively
|
|
|
(5,552,762)
|
|
|
|
(5,478,950)
|
|
Total shareholders'
equity
|
|
|
1,357,601
|
|
|
|
1,239,165
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,698,424
|
|
|
$
|
2,511,718
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
2,242
|
|
|
|
1,910
|
|
|
|
4,271
|
|
|
|
3,858
|
|
North East
(2)
|
|
|
314
|
|
|
|
295
|
|
|
|
655
|
|
|
|
632
|
|
Mid East
(3)
|
|
|
1,003
|
|
|
|
962
|
|
|
|
2,060
|
|
|
|
1,956
|
|
South East
(4)
|
|
|
765
|
|
|
|
629
|
|
|
|
1,475
|
|
|
|
1,276
|
|
Total
|
|
|
4,324
|
|
|
|
3,796
|
|
|
|
8,461
|
|
|
|
7,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
383.9
|
|
|
$
|
378.3
|
|
|
$
|
379.9
|
|
|
$
|
376.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,762
|
|
|
|
1,679
|
|
|
|
3,217
|
|
|
|
2,975
|
|
North East
(2)
|
|
|
289
|
|
|
|
323
|
|
|
|
566
|
|
|
|
562
|
|
Mid East
(3)
|
|
|
934
|
|
|
|
674
|
|
|
|
1,695
|
|
|
|
1,256
|
|
South East
(4)
|
|
|
596
|
|
|
|
499
|
|
|
|
1,109
|
|
|
|
916
|
|
Total
|
|
|
3,581
|
|
|
|
3,175
|
|
|
|
6,587
|
|
|
|
5,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
378.5
|
|
|
$
|
384.4
|
|
|
$
|
374.4
|
|
|
$
|
378.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
|
|
|
|
|
|
|
|
4,191
|
|
|
|
3,829
|
|
North East
(2)
|
|
|
|
|
|
|
|
|
|
|
629
|
|
|
|
658
|
|
Mid East
(3)
|
|
|
|
|
|
|
|
|
|
|
1,863
|
|
|
|
1,850
|
|
South East
(4)
|
|
|
|
|
|
|
|
|
|
|
1,420
|
|
|
|
1,151
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
8,103
|
|
|
|
7,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
|
|
|
|
|
|
|
|
$
|
385.4
|
|
|
$
|
381.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
483
|
|
|
|
476
|
|
|
|
481
|
|
|
|
475
|
|
Lots controlled at end
of period
|
|
|
|
|
|
|
|
|
|
|
76,300
|
|
|
|
70,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
942,407
|
|
|
$
|
859,403
|
|
|
$
|
1,696,247
|
|
|
$
|
1,498,029
|
|
Capture
rate
|
|
|
88%
|
|
|
|
89%
|
|
|
|
88%
|
|
|
|
88%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding at end of period
|
|
|
|
|
|
|
|
|
|
|
3,897,629
|
|
|
|
4,069,170
|
|
Number of
shares repurchased
|
|
|
5,600
|
|
|
|
4,705
|
|
|
|
61,988
|
|
|
|
55,031
|
|
Aggregate cost
of shares repurchased
|
|
$
|
9,407
|
|
|
$
|
6,186
|
|
|
$
|
96,508
|
|
|
$
|
69,285
|
|
(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-second-quarter-results-300301747.html
SOURCE NVR, Inc.