NVR, INC. 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
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SOURCE NVR, Inc.
