RESTON, Va., April 20, 2017 /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, 2017 of
$102,923,000, or $25.12 per diluted share. Net income and
diluted earnings per share for the first quarter ended March 31, 2017 increased 58% and 59%,
respectively, when compared to the 2016 first quarter of
$65,303,000, or $15.79 per diluted share. Consolidated
revenues for the first quarter of 2017 totaled $1,277,092,000, a 12% increase from $1,144,026,000 for the comparable 2016
quarter.
Net income and diluted earnings per share were favorably
impacted by the reduction in the Company's effective tax rate in
the first quarter of 2017 to 22.1% from 36.8% in the first quarter
of 2016. The reduction in the effective tax rate was
primarily due to the Company's January 1,
2017 adoption of Accounting Standard Update 2016-09, which
resulted in the Company recognizing an income tax benefit of
$19,900,000 related to excess tax
benefit from stock option exercises in the first quarter of
2017. In the first quarter of 2016, the excess tax benefit of
$6,284,000 was recorded to additional
paid-in capital within shareholders' equity on the consolidated
balance sheet. Excluding the impact of the excess tax benefit
recognized in the first quarter of 2017, the effective tax rate
would have been 37.2%. Additionally, the excess tax benefit
in the first quarter of 2017 favorably impacted diluted earnings
per share by $4.86 per share.
Homebuilding
New orders in the first quarter of 2017 increased 7% to 4,424
units, when compared to 4,137 units in the first quarter of 2016.
The average sales price of new orders in the first quarter of 2017
was $392,600, an increase of 5% when
compared with the first quarter of 2016. The cancellation
rate in the first quarter of 2017 was 16%, compared with 15% in the
first quarter of 2016. Settlements increased in the first
quarter of 2017 to 3,256 units, 8% higher than the first quarter of
2016. The Company's backlog of homes sold but not settled as
of March 31, 2017 increased on a unit
basis by 9% to 8,052 units and increased on a dollar basis by 13%
to $3,193,777,000 when compared to
March 31, 2016.
Homebuilding revenues in the first quarter of 2017 totaled
$1,247,587,000, 11% higher than the
year earlier period. Gross profit margin in the first quarter
of 2017 was 17.8%, compared to 17.5% in the first quarter of
2016. Income before tax from the homebuilding segment totaled
$117,190,000 in the first quarter of
2017, an increase of 25% when compared to the first quarter of
2016.
Mortgage Banking
Mortgage closed loan production in the first quarter of 2017
totaled $843,341,000, an increase of
12% when compared to the first quarter of 2016. Income before tax
from the mortgage banking segment for the first quarter of 2017 was
$14,971,000, compared to $9,658,000 for the first quarter of 2016.
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-nine 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
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,247,587
|
|
|
$
|
1,121,504
|
|
Other
income
|
|
|
1,102
|
|
|
|
767
|
|
Cost of
sales
|
|
|
(1,026,017)
|
|
|
|
(925,760)
|
|
Selling, general and
administrative
|
|
|
(99,904)
|
|
|
|
(98,015)
|
|
Operating
income
|
|
|
122,768
|
|
|
|
98,496
|
|
Interest
expense
|
|
|
(5,578)
|
|
|
|
(4,842)
|
|
Homebuilding
income
|
|
|
117,190
|
|
|
|
93,654
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
|
29,505
|
|
|
|
22,522
|
|
Interest
income
|
|
|
1,661
|
|
|
|
1,674
|
|
Other
income
|
|
|
309
|
|
|
|
258
|
|
General and
administrative
|
|
|
(16,246)
|
|
|
|
(14,550)
|
|
Interest
expense
|
|
|
(258)
|
|
|
|
(246)
|
|
Mortgage banking
income
|
|
|
14,971
|
|
|
|
9,658
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
132,161
|
|
|
|
103,312
|
|
Income tax
expense
|
|
|
(29,238)
|
|
|
|
(38,009)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
102,923
|
|
|
$
|
65,303
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
27.78
|
|
|
$
|
16.81
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
25.12
|
|
|
$
|
15.79
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
3,705
|
|
|
|
3,884
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
|
4,097
|
|
|
|
4,135
|
|
NVR,
Inc.
Consolidated Balance
Sheets
(in thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
482,689
|
|
|
$
|
375,748
|
|
Restricted
cash
|
|
|
14,857
|
|
|
|
17,561
|
|
Receivables
|
|
|
19,876
|
|
|
|
18,937
|
|
Inventory:
|
|
|
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
|
1,025,071
|
|
|
|
883,868
|
|
Unsold lots and
housing units
|
|
|
129,931
|
|
|
|
145,065
|
|
Land under
development
|
|
|
63,684
|
|
|
|
46,999
|
|
Building materials and
other
|
|
|
13,748
|
|
|
|
16,168
|
|
|
|
|
1,232,434
|
|
|
|
1,092,100
|
|
|
|
|
|
|
|
|
|
|
Assets related to
consolidated variable interest entity
|
|
|
1,248
|
|
|
|
1,251
|
|
Contract land
deposits, net
|
|
|
369,703
|
|
|
|
379,844
|
|
Property, plant and
equipment, net
|
|
|
45,116
|
|
|
|
45,915
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
41,580
|
|
|
|
41,580
|
|
Goodwill and
finite-lived intangible assets, net
|
|
|
2,254
|
|
|
|
2,599
|
|
Other
assets
|
|
|
277,489
|
|
|
|
257,811
|
|
|
|
|
2,487,246
|
|
|
|
2,233,346
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
9,862
|
|
|
|
19,657
|
|
Restricted
cash
|
|
|
2,122
|
|
|
|
1,857
|
|
Mortgage loans held
for sale, net
|
|
|
213,433
|
|
|
|
351,958
|
|
Property and
equipment, net
|
|
|
5,434
|
|
|
|
4,903
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
|
7,347
|
|
|
|
7,347
|
|
Other
assets
|
|
|
16,855
|
|
|
|
24,875
|
|
|
|
|
255,053
|
|
|
|
410,597
|
|
Total
assets
|
|
$
|
2,742,299
|
|
|
$
|
2,643,943
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
237,700
|
|
|
$
|
251,212
|
|
Accrued expenses and
other liabilities
|
|
|
318,437
|
|
|
|
336,318
|
|
Liabilities related to
consolidated variable interest entity
|
|
|
879
|
|
|
|
882
|
|
Customer
deposits
|
|
|
148,353
|
|
|
|
122,236
|
|
Senior
notes
|
|
|
596,607
|
|
|
|
596,455
|
|
|
|
|
1,301,976
|
|
|
|
1,307,103
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Accounts payable and
other liabilities
|
|
|
32,652
|
|
|
|
32,399
|
|
|
|
|
32,652
|
|
|
|
32,399
|
|
Total
liabilities
|
|
|
1,334,628
|
|
|
|
1,339,502
|
|
|
|
|
|
|
|
|
|
|
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, 2017 and December 31, 2016
|
|
|
206
|
|
|
|
206
|
|
Additional paid-in
capital
|
|
|
1,570,270
|
|
|
|
1,515,828
|
|
Deferred compensation
trust – 108,644 and 108,640 shares of NVR, Inc. common stock as of
March 31, 2017 and December 31, 2016, respectively
|
|
|
(17,383)
|
|
|
|
(17,375)
|
|
Deferred compensation
liability
|
|
|
17,383
|
|
|
|
17,375
|
|
Retained
earnings
|
|
|
5,796,733
|
|
|
|
5,695,376
|
|
Less treasury stock at
cost – 16,819,692 and 16,862,327 shares as of March 31, 2017 and
December 31, 2016, respectively
|
|
|
(5,959,538)
|
|
|
|
(5,906,969)
|
|
Total shareholders'
equity
|
|
|
1,407,671
|
|
|
|
1,304,441
|
|
Total liabilities
and shareholders' equity
|
|
$
|
2,742,299
|
|
|
$
|
2,643,943
|
|
NVR,
Inc.
Operating
Activity
(dollars in
thousands)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New orders
(units)
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
2,125
|
|
|
|
2,029
|
|
North East
(2)
|
|
|
359
|
|
|
|
341
|
|
Mid East
(3)
|
|
|
1,134
|
|
|
|
1,057
|
|
South East
(4)
|
|
|
806
|
|
|
|
710
|
|
Total
|
|
|
4,424
|
|
|
|
4,137
|
|
|
|
|
|
|
|
|
|
|
Average new order
price
|
|
$
|
392.6
|
|
|
$
|
375.7
|
|
|
|
|
|
|
|
|
|
|
Settlements
(units)
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
1,658
|
|
|
|
1,455
|
|
North East
(2)
|
|
|
268
|
|
|
|
277
|
|
Mid East
(3)
|
|
|
725
|
|
|
|
761
|
|
South East
(4)
|
|
|
605
|
|
|
|
513
|
|
Total
|
|
|
3,256
|
|
|
|
3,006
|
|
|
|
|
|
|
|
|
|
|
Average settlement
price
|
|
$
|
383.1
|
|
|
$
|
369.5
|
|
|
|
|
|
|
|
|
|
|
Backlog
(units)
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
|
4,008
|
|
|
|
3,711
|
|
North East
(2)
|
|
|
699
|
|
|
|
604
|
|
Mid East
(3)
|
|
|
1,908
|
|
|
|
1,794
|
|
South East
(4)
|
|
|
1,437
|
|
|
|
1,251
|
|
Total
|
|
|
8,052
|
|
|
|
7,360
|
|
|
|
|
|
|
|
|
|
|
Average backlog
price
|
|
$
|
396.6
|
|
|
$
|
382.9
|
|
|
|
|
|
|
|
|
|
|
Community count
(average)
|
|
|
486
|
|
|
|
478
|
|
Lots controlled at end
of period
|
|
|
79,100
|
|
|
|
75,400
|
|
|
|
|
|
|
|
|
|
|
Mortgage
banking data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
843,341
|
|
|
$
|
753,840
|
|
Capture
rate
|
|
|
86
|
%
|
|
|
88
|
%
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
3,735,638
|
|
|
|
3,894,804
|
|
Number of shares
repurchased
|
|
|
50,922
|
|
|
|
56,388
|
|
Aggregate cost of
shares repurchased
|
|
$
|
85,547
|
|
|
$
|
87,101
|
|
|
|
(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-first-quarter-results-300442302.html
SOURCE NVR, Inc.