RESTON,
Va., Jan. 30, 2024 /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, 2023 of $410.1 million, or $121.56 per diluted share. Net income and diluted
earnings per share for the fourth quarter ended December 31,
2023 decreased 10% and 9%, respectively, when compared to 2022
fourth quarter net income of $454.8
million, or $133.44 per
diluted share. Consolidated revenues for the fourth quarter of 2023
totaled $2.43 billion, which
decreased 10% from $2.71 billion in
the fourth quarter of 2022.
For the year ended December 31,
2023, consolidated revenues were $9.52 billion, a 10% decrease from $10.53 billion reported in 2022. Net income for
the year ended December 31, 2023 was
$1.59 billion, a decrease of 8% when
compared to net income for the year ended December 31, 2022 of $1.73
billion. Diluted earnings per share for the year ended
December 31, 2023 was $463.31, a decrease of 6% from $491.82 per diluted share for 2022.
Homebuilding
New orders in the fourth quarter of 2023 increased by 25% to
5,190 units, when compared to 4,153 units in the fourth quarter of
2022. The average sales price of new orders in the fourth quarter
of 2023 was $450,900, a decrease of
2% when compared with the fourth quarter of 2022. The cancellation
rate in the fourth quarter of 2023 was 13% compared to 18% in the
fourth quarter of 2022. Settlements in the fourth quarter of 2023
decreased by 7% to 5,332 units, compared to 5,749 units in the
fourth quarter of 2022. The average settlement price in the fourth
quarter of 2023 was $447,600, a
decrease of 4% when compared with the fourth quarter of 2022. Our
backlog of homes sold but not settled as of December 31, 2023
increased on a unit basis by 12% to 10,229 units and increased on a
dollar basis by 10% to $4.76 billion
when compared to the respective backlog unit and dollar balances as
of December 31, 2022.
Homebuilding revenues of $2.39
billion in the fourth quarter of 2023 decreased by 11%
compared to homebuilding revenues of $2.67
billion in the fourth quarter of 2022. Gross profit
margin in the fourth quarter of 2023 decreased to 24.1%, compared
to 25.3% in the fourth quarter of 2022. Income before tax from the
homebuilding segment totaled $454.3
million in the fourth quarter of 2023, a decrease of 17%
when compared to the fourth quarter of 2022.
New orders for the year ended December
31, 2023 increased by 13% to 21,729 units, compared to
19,164 units in 2022. Settlements for the year ended
December 31, 2023 decreased by 9% to
20,662 units, compared to 22,732 units settled in 2022.
Homebuilding revenues for the year ended December 31, 2023 totaled $9.31 billion, a 10% decrease from 2022. Gross
profit margin for the year ended December
31, 2023 decreased to 24.3%, compared to 25.8% in 2022.
Income before tax for the homebuilding segment decreased 16% for
the year ended December 31, 2023 to
$1.80 billion, compared to
$2.13 billion in 2022.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2023
totaled $1.50 billion, a decrease of
2% when compared to the fourth quarter of 2022. Income before
tax from the mortgage banking segment totaled $29.7 million in the fourth quarter of 2023, an
increase of 12% when compared to $26.4
million in the fourth quarter of 2022.
Mortgage closed loan production for the year ended December 31, 2023 decreased 9% to $5.74 billion. Income before tax from the
mortgage banking segment for the year ended December 31, 2023 increased 9% to $132.8 million from $122.2
million in 2022.
Effective Tax Rate
Our effective tax rate for the three and twelve months ended
December 31, 2023 was 15.3% and 17.5%, respectively, compared
to 20.9% and 23.4% for the three and twelve months ended
December 31, 2022, respectively. The decrease in the effective
tax rate in each period is primarily attributable to a higher
income tax benefit recognized for excess tax benefits from stock
option exercises, which totaled $42.5
million and $153.6 million for
the three and twelve months ended December 31, 2023,
respectively, and $22.6 million and
$50.3 million for the three and
twelve months ended December 31, 2022, respectively.
About NVR
NVR, Inc. operates in two business segments: homebuilding
and mortgage banking. The homebuilding segment sells and builds
homes under the Ryan Homes, NVHomes and Heartland Homes trade
names, and operates in thirty-six metropolitan areas in fifteen
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 and financial results, 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; the economic
impact of a major epidemic or pandemic; 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,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
2,387,094
|
|
$
2,668,036
|
|
$
9,314,605
|
|
$
10,326,770
|
Other
income
|
|
40,891
|
|
21,592
|
|
148,010
|
|
37,038
|
Cost of
sales
|
|
(1,812,968)
|
|
(1,993,722)
|
|
(7,051,198)
|
|
(7,662,271)
|
Selling, general and
administrative
|
|
(154,086)
|
|
(140,995)
|
|
(588,962)
|
|
(532,353)
|
Operating
income
|
|
460,931
|
|
554,911
|
|
1,822,455
|
|
2,169,184
|
Interest
expense
|
|
(6,618)
|
|
(6,630)
|
|
(26,875)
|
|
(38,140)
|
Homebuilding
income
|
|
454,313
|
|
548,281
|
|
1,795,580
|
|
2,131,044
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
45,476
|
|
44,146
|
|
203,597
|
|
199,664
|
Interest
income
|
|
4,779
|
|
3,570
|
|
16,687
|
|
11,853
|
Other
income
|
|
1,189
|
|
1,294
|
|
4,449
|
|
4,963
|
General and
administrative
|
|
(21,537)
|
|
(22,300)
|
|
(91,075)
|
|
(92,946)
|
Interest
expense
|
|
(173)
|
|
(269)
|
|
(865)
|
|
(1,384)
|
Mortgage banking
income
|
|
29,734
|
|
26,441
|
|
132,793
|
|
122,150
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
484,047
|
|
574,722
|
|
1,928,373
|
|
2,253,194
|
Income tax
expense
|
|
(73,972)
|
|
(119,954)
|
|
(336,762)
|
|
(527,619)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
410,075
|
|
$
454,768
|
|
$
1,591,611
|
|
$
1,725,575
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
128.46
|
|
$
141.82
|
|
$
491.52
|
|
$
525.20
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
121.56
|
|
$
133.44
|
|
$
463.31
|
|
$
491.82
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,192
|
|
3,207
|
|
3,238
|
|
3,286
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,373
|
|
3,408
|
|
3,435
|
|
3,509
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
3,126,472
|
|
$
2,503,424
|
Restricted
cash
|
|
41,483
|
|
48,455
|
Receivables
|
|
29,000
|
|
20,842
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,674,686
|
|
1,554,955
|
Unsold lots and
housing units
|
|
214,666
|
|
181,952
|
Land under
development
|
|
36,895
|
|
27,100
|
Building materials and
other
|
|
23,903
|
|
24,268
|
|
|
1,950,150
|
|
1,788,275
|
|
|
|
|
|
Contract land
deposits, net
|
|
576,551
|
|
496,080
|
Property, plant and
equipment, net
|
|
63,716
|
|
57,950
|
Operating lease
right-of-use assets
|
|
70,384
|
|
71,081
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
Deferred tax assets,
net
|
|
148,005
|
|
143,585
|
Other
assets
|
|
94,746
|
|
75,898
|
|
|
6,142,087
|
|
5,247,170
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
36,422
|
|
19,415
|
Restricted
cash
|
|
11,067
|
|
2,974
|
Mortgage loans held
for sale, net
|
|
222,560
|
|
316,806
|
Property and
equipment, net
|
|
6,348
|
|
3,559
|
Operating lease
right-of-use assets
|
|
23,541
|
|
16,011
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
Other
assets
|
|
152,385
|
|
47,691
|
|
|
459,670
|
|
413,803
|
Total
assets
|
|
$
6,601,757
|
|
$
5,660,973
|
|
|
|
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
(unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
347,738
|
|
$
334,016
|
Accrued expenses and
other liabilities
|
|
413,043
|
|
437,234
|
Customer
deposits
|
|
334,441
|
|
313,804
|
Operating lease
liabilities
|
|
75,797
|
|
75,818
|
Senior
notes
|
|
913,027
|
|
914,888
|
|
|
2,084,046
|
|
2,075,760
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
127,511
|
|
61,396
|
Operating lease
liabilities
|
|
25,475
|
|
16,968
|
|
|
152,986
|
|
78,364
|
Total
liabilities
|
|
2,237,032
|
|
2,154,124
|
|
|
|
|
|
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, 2023 and December 31,
2022
|
|
206
|
|
206
|
Additional paid-in
capital
|
|
2,848,528
|
|
2,600,014
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of
both December 31, 2023 and December 31, 2022
|
|
(16,710)
|
|
(16,710)
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
Retained
earnings
|
|
13,365,025
|
|
11,773,414
|
Less treasury stock at
cost – 17,360,454 and 17,336,397 shares as of December
31, 2023 and December 31, 2022, respectively
|
|
(11,849,034)
|
|
(10,866,785)
|
Total shareholders'
equity
|
|
4,364,725
|
|
3,506,849
|
Total liabilities
and shareholders' equity
|
|
$
6,601,757
|
|
$
5,660,973
|
|
|
|
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,029
|
|
$
500.9
|
|
1,836
|
|
$
525.0
|
|
8,434
|
|
$
515.5
|
|
7,816
|
|
$
526.6
|
North East
(2)
|
|
526
|
|
$
597.7
|
|
430
|
|
$
573.6
|
|
1,879
|
|
$
573.2
|
|
1,679
|
|
$
528.3
|
Mid East
(3)
|
|
942
|
|
$
412.2
|
|
741
|
|
$
381.8
|
|
4,514
|
|
$
396.5
|
|
4,344
|
|
$
400.5
|
South East
(4)
|
|
1,693
|
|
$
366.9
|
|
1,146
|
|
$
360.3
|
|
6,902
|
|
$
366.4
|
|
5,325
|
|
$
399.4
|
Total
|
|
5,190
|
|
$
450.9
|
|
4,153
|
|
$
459.0
|
|
21,729
|
|
$
448.4
|
|
19,164
|
|
$
462.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,008
|
|
$
519.5
|
|
2,153
|
|
$
526.6
|
|
8,032
|
|
$
521.5
|
|
9,042
|
|
$
527.1
|
North East
(2)
|
|
465
|
|
$
567.1
|
|
456
|
|
$
503.4
|
|
1,736
|
|
$
546.2
|
|
1,763
|
|
$
506.3
|
Mid East
(3)
|
|
1,126
|
|
$
391.3
|
|
1,484
|
|
$
400.5
|
|
4,391
|
|
$
392.4
|
|
5,518
|
|
$
389.1
|
South East
(4)
|
|
1,733
|
|
$
368.9
|
|
1,656
|
|
$
428.7
|
|
6,503
|
|
$
377.2
|
|
6,409
|
|
$
393.3
|
Total
|
|
5,332
|
|
$
447.6
|
|
5,749
|
|
$
464.0
|
|
20,662
|
|
$
450.7
|
|
22,732
|
|
$
454.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
|
|
2023
|
|
2022
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,094
|
|
$
522.5
|
|
3,692
|
|
$
536.3
|
|
North East
(2)
|
|
1,028
|
|
$
602.0
|
|
885
|
|
$
553.9
|
|
Mid East
(3)
|
|
1,976
|
|
$
412.1
|
|
1,853
|
|
$
403.2
|
|
South East
(4)
|
|
3,131
|
|
$
378.4
|
|
2,732
|
|
$
405.7
|
|
Total
|
|
10,229
|
|
$
465.0
|
|
9,162
|
|
$
472.2
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Average active
communities:
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
167
|
|
169
|
|
166
|
|
160
|
North East
(2)
|
|
36
|
|
37
|
|
36
|
|
36
|
Mid East
(3)
|
|
105
|
|
127
|
|
110
|
|
126
|
South East
(4)
|
|
130
|
|
95
|
|
115
|
|
93
|
Total
|
|
438
|
|
428
|
|
427
|
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New order cancellation
rate
|
|
13.0 %
|
|
18.4 %
|
|
12.8 %
|
|
14.2 %
|
Lots controlled at end
of period
|
|
|
|
|
|
141,500
|
|
131,900
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
1,496,003
|
|
$
1,524,665
|
|
$
5,736,532
|
|
$
6,313,416
|
Capture
rate
|
|
88 %
|
|
80 %
|
|
87 %
|
|
83 %
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
3,194,876
|
|
3,218,933
|
Number of shares
repurchased
|
|
46,748
|
|
28,504
|
|
181,499
|
|
323,652
|
Aggregate cost of
shares repurchased
|
|
$
286,428
|
|
$
116,165
|
|
$
1,081,815
|
|
$
1,500,358
|
|
|
(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, Florida and Georgia
|
View original
content:https://www.prnewswire.com/news-releases/nvr-inc-announces-fourth-quarter-and-full-year-results-302047242.html
SOURCE NVR, INC.