RESTON, Va., Jan. 25, 2017 /PRNewswire/ -- NVR, Inc. (NYSE:
NVR), one of the nation's largest homebuilding and mortgage banking
companies, announced net income for its fourth quarter ended
December 31, 2016 of $150,891,000, or $37.80 per diluted share. Net income and
diluted earnings per share for the fourth quarter ended
December 31, 2016 increased 13% and
18%, respectively, when compared to the 2015 fourth quarter.
Consolidated revenues for the fourth quarter of 2016 totaled
$1,752,766,000, a 13% increase from
$1,555,275,000 for the comparable
2015 quarter.
For the year ended December 31,
2016, consolidated revenues were $5,822,544,000, 13% higher than the $5,159,008,000 reported for 2015. Net
income for the year ended December 31,
2016 was $425,262,000, an
increase of 11% when compared to the year ended December 31, 2015. Diluted earnings per
share for the year ended December 31,
2016 was $103.61, an increase
of 15% from $89.99 per diluted share
for 2015.
Homebuilding
New orders in the fourth quarter of 2016 increased 18% to 3,645
units, when compared to 3,100 units in the fourth quarter of 2015.
The average sales price of new orders in the fourth quarter of 2016
was $395,200, an increase of 3% when
compared with the fourth quarter of 2015. The cancellation
rate in the fourth quarter of 2016 was 17%, compared with 16% in
the fourth quarter of 2015. Settlements increased in the
fourth quarter of 2016 to 4,419 units, 10% higher than the fourth
quarter of 2015. The Company's backlog of homes sold but not
settled as of December 31, 2016
increased on a unit basis by 11% to 6,884 units and increased on a
dollar basis by 14% to $2,704,277,000
when compared to December 31,
2015.
Homebuilding revenues in the fourth quarter of 2016 totaled
$1,718,527,000, 12% higher than the
year earlier period. Gross profit margin in the fourth
quarter of 2016 was 17.8%, compared to 18.9% in the fourth quarter
of 2015. Income before tax from the homebuilding segment
totaled $208,263,000 in the fourth
quarter of 2016, an increase of 8% when compared to the fourth
quarter of 2015.
New orders for the year ended December
31, 2016 increased 11% to 15,583 units, when compared to
14,080 units in 2015. Home settlements increased 12% year
over year to 14,928 units in 2016 from 13,326 units in 2015.
Homebuilding revenues for the year ended December 31, 2016 totaled $5,709,223,000, which is 13% higher than
2015. Gross profit margin for the year ended December 31, 2016 was 17.5%, compared to 18.7% in
2015. Income before tax for the homebuilding segment for the
year ended December 31, 2016 was
$601,102,000, an 8% increase when
compared to 2015.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2016
totaled $1,201,164,000, an increase
of 15% when compared to the fourth quarter of 2015. Income before
tax from the mortgage banking segment for the fourth quarter
of 2016 was $20,399,000, compared to
$14,546,000 for the fourth quarter of
2015.
Mortgage closed loan production for the year ended December 31, 2016 increased 13% to $3,952,575,000. Income before tax from the
mortgage banking segment for the year ended December 31, 2016 increased to $60,595,000 from $47,883,000 in 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)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,718,527
|
|
|
$
|
1,528,084
|
|
|
$
|
5,709,223
|
|
|
$
|
5,065,200
|
|
Other
income
|
|
|
597
|
|
|
|
466
|
|
|
|
2,820
|
|
|
|
2,956
|
|
Cost of
sales
|
|
|
(1,413,440)
|
|
|
|
(1,238,588)
|
|
|
|
(4,707,861)
|
|
|
|
(4,118,782)
|
|
Selling, general and
administrative
|
|
|
(91,534)
|
|
|
|
(91,920)
|
|
|
|
(382,459)
|
|
|
|
(371,127)
|
|
Operating
income
|
|
|
214,150
|
|
|
|
198,042
|
|
|
|
621,723
|
|
|
|
578,247
|
|
Interest
expense
|
|
|
(5,887)
|
|
|
|
(5,419)
|
|
|
|
(20,621)
|
|
|
|
(22,918)
|
|
Homebuilding
income
|
|
|
208,263
|
|
|
|
192,623
|
|
|
|
601,102
|
|
|
|
555,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
34,239
|
|
|
|
27,191
|
|
|
|
113,321
|
|
|
|
93,808
|
|
Interest
income
|
|
|
2,458
|
|
|
|
2,132
|
|
|
|
7,569
|
|
|
|
6,485
|
|
Other
income
|
|
|
512
|
|
|
|
402
|
|
|
|
1,652
|
|
|
|
1,113
|
|
General and
administrative
|
|
|
(16,516)
|
|
|
|
(14,994)
|
|
|
|
(60,861)
|
|
|
|
(52,882)
|
|
Interest
expense
|
|
|
(294)
|
|
|
|
(185)
|
|
|
|
(1,086)
|
|
|
|
(641)
|
|
Mortgage banking
income
|
|
|
20,399
|
|
|
|
14,546
|
|
|
|
60,595
|
|
|
|
47,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
228,662
|
|
|
|
207,169
|
|
|
|
661,697
|
|
|
|
603,212
|
|
Income tax
expense
|
|
|
(77,771)
|
|
|
|
(73,165)
|
|
|
|
(236,435)
|
|
|
|
(220,285)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
150,891
|
|
|
$
|
134,004
|
|
|
$
|
425,262
|
|
|
$
|
382,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
40.25
|
|
|
$
|
34.23
|
|
|
$
|
110.53
|
|
|
$
|
95.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
37.80
|
|
|
$
|
31.92
|
|
|
$
|
103.61
|
|
|
$
|
89.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
3,749
|
|
|
|
3,915
|
|
|
|
3,847
|
|
|
|
4,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
3,992
|
|
|
|
4,198
|
|
|
|
4,104
|
|
|
|
4,255
|
|
NVR,
Inc.
Consolidated Balance
Sheets
(in thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
|
December 31,
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
375,748
|
|
|
$
|
397,522
|
|
Restricted
cash
|
|
|
17,561
|
|
|
|
23,440
|
|
Receivables
|
|
|
18,937
|
|
|
|
11,482
|
|
Inventory:
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
|
883,868
|
|
|
|
785,982
|
|
Unsold lots and
housing units
|
|
|
145,065
|
|
|
|
147,832
|
|
Land under
development
|
|
|
46,999
|
|
|
|
60,611
|
|
Building materials and
other
|
|
|
16,168
|
|
|
|
12,101
|
|
|
|
|
1,092,100
|
|
|
|
1,006,526
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,251
|
|
|
|
1,749
|
|
Contract land
deposits, net
|
|
|
379,844
|
|
|
|
343,295
|
|
Property, plant and
equipment, net
|
|
|
45,915
|
|
|
|
44,651
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
41,580
|
|
|
|
41,580
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
2,599
|
|
|
|
3,982
|
|
Other
assets
|
|
|
257,811
|
|
|
|
257,941
|
|
|
|
|
2,233,346
|
|
|
|
2,132,168
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
19,657
|
|
|
|
26,804
|
|
Restricted
cash
|
|
|
1,857
|
|
|
|
2,038
|
|
Mortgage loans held
for sale, net
|
|
|
351,958
|
|
|
|
319,553
|
|
Property and
equipment, net
|
|
|
4,903
|
|
|
|
5,313
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
7,347
|
|
|
|
7,347
|
|
Other
assets
|
|
|
24,875
|
|
|
|
18,495
|
|
|
|
|
410,597
|
|
|
|
379,550
|
|
Total
assets
|
|
$
|
2,643,943
|
|
|
$
|
2,511,718
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
251,212
|
|
|
$
|
227,437
|
|
Accrued expenses and
other liabilities
|
|
|
336,318
|
|
|
|
304,922
|
|
Liabilities related to
consolidated variable interest entity
|
|
|
882
|
|
|
|
1,091
|
|
Customer
deposits
|
|
|
122,236
|
|
|
|
110,965
|
|
Senior
notes
|
|
|
596,455
|
|
|
|
595,847
|
|
|
|
|
1,307,103
|
|
|
|
1,240,262
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Accounts payable and
other liabilities
|
|
|
32,399
|
|
|
|
32,291
|
|
|
|
|
32,399
|
|
|
|
32,291
|
|
Total
liabilities
|
|
|
1,339,502
|
|
|
|
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 December 31, 2016 and
December 31, 2015
|
|
|
206
|
|
|
|
206
|
|
Additional paid-in
capital
|
|
|
1,515,828
|
|
|
|
1,447,795
|
|
Deferred compensation
trust – 108,640 and 108,614 shares of NVR, Inc. common stock as
of December 31, 2016 and December
31, 2015, respectively
|
|
|
(17,375)
|
|
|
|
(17,333)
|
|
Deferred compensation
liability
|
|
|
17,375
|
|
|
|
17,333
|
|
Retained
earnings
|
|
|
5,695,376
|
|
|
|
5,270,114
|
|
Less treasury stock at
cost – 16,862,327 and 16,664,342 shares as of December 31, 2016 and
December 31, 2015, respectively
|
|
|
(5,906,969)
|
|
|
|
(5,478,950)
|
|
Total shareholders'
equity
|
|
|
1,304,441
|
|
|
|
1,239,165
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,643,943
|
|
|
$
|
2,511,718
|
|
NVR,
Inc.
Operating
Activity
(dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,828
|
|
|
|
1,550
|
|
|
|
7,916
|
|
|
|
7,070
|
|
North East
(2)
|
|
|
354
|
|
|
|
237
|
|
|
|
1,314
|
|
|
|
1,173
|
|
Mid East
(3)
|
|
|
830
|
|
|
|
799
|
|
|
|
3,659
|
|
|
|
3,485
|
|
South East
(4)
|
|
|
633
|
|
|
|
514
|
|
|
|
2,694
|
|
|
|
2,352
|
|
Total
|
|
|
3,645
|
|
|
|
3,100
|
|
|
|
15,583
|
|
|
|
14,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
395.2
|
|
|
$
|
383.3
|
|
|
$
|
386.4
|
|
|
$
|
378.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
2,311
|
|
|
|
2,109
|
|
|
|
7,512
|
|
|
|
6,879
|
|
North East
(2)
|
|
|
350
|
|
|
|
322
|
|
|
|
1,246
|
|
|
|
1,221
|
|
Mid East
(3)
|
|
|
950
|
|
|
|
966
|
|
|
|
3,658
|
|
|
|
3,137
|
|
South East
(4)
|
|
|
808
|
|
|
|
613
|
|
|
|
2,512
|
|
|
|
2,089
|
|
Total
|
|
|
4,419
|
|
|
|
4,010
|
|
|
|
14,928
|
|
|
|
13,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
388.8
|
|
|
$
|
381.6
|
|
|
$
|
381.2
|
|
|
$
|
379.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
|
|
|
|
|
|
|
|
3,541
|
|
|
|
3,137
|
|
North East
(2)
|
|
|
|
|
|
|
|
|
|
|
608
|
|
|
|
540
|
|
Mid East
(3)
|
|
|
|
|
|
|
|
|
|
|
1,499
|
|
|
|
1,498
|
|
South East
(4)
|
|
|
|
|
|
|
|
|
|
|
1,236
|
|
|
|
1,054
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
6,884
|
|
|
|
6,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
|
|
|
|
|
|
|
|
$
|
392.8
|
|
|
$
|
381.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
495
|
|
|
|
467
|
|
|
|
485
|
|
|
|
472
|
|
Lots controlled at end
of period
|
|
|
|
|
|
|
|
|
|
|
78,000
|
|
|
|
74,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
1,201,164
|
|
|
$
|
1,042,440
|
|
|
$
|
3,952,575
|
|
|
$
|
3,492,342
|
|
Capture
rate
|
|
|
89
|
%
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
|
|
|
|
|
3,693,003
|
|
|
|
3,890,988
|
|
Number of shares
repurchased
|
|
|
101,982
|
|
|
|
106,559
|
|
|
|
280,288
|
|
|
|
289,687
|
|
Aggregate cost of
shares repurchased
|
|
$
|
163,608
|
|
|
$
|
167,921
|
|
|
$
|
455,351
|
|
|
$
|
431,367
|
|
|
|
|
|
(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-fourth-quarter-and-full-year-results-300396074.html
SOURCE NVR, Inc.