RESTON,
Va., Jan. 31, 2023 /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, 2022 of $454.8 million, or $133.44 per diluted share. Net income and
diluted earnings per share for the fourth quarter ended
December 31, 2022 increased 36% and 50%, respectively, when
compared to 2021 fourth quarter net income of $334.6 million, or $89.09 per diluted share. Consolidated
revenues for the fourth quarter of 2022 totaled $2.71 billion, which increased 22% from
$2.23 billion in the fourth quarter
of 2021.
For the year ended December 31,
2022, consolidated revenues were $10.53 billion, an 18% increase from $8.95 billion reported in 2021. Net income for
the year ended December 31, 2022 was
$1.73 billion, an increase of 40%
when compared to net income for the year ended December 31, 2021 of $1.24
billion. Diluted earnings per share for the year ended
December 31, 2022 was $491.82, an increase of 53% from $320.48 per diluted share for 2021.
Homebuilding
New orders in the fourth quarter of 2022 decreased by 27% to
4,153 units, when compared to 5,685 units in the fourth quarter of
2021. The average sales price of new orders in the fourth quarter
of 2022 was $459,000, an increase of
1% when compared with the fourth quarter of 2021. The
cancellation rate in the fourth quarter of 2022 was 18% compared to
10% in the fourth quarter of 2021. Settlements in the fourth
quarter of 2022 increased by 13% to 5,749 units, compared to 5,100
units in the fourth quarter of 2021. The average settlement price
in the fourth quarter of 2022 was $464,000, an increase of 9% from the fourth
quarter of 2021. Our backlog of homes sold but not settled as of
December 31, 2022 decreased on a unit basis by 28% to 9,162
units and decreased on a dollar basis by 25% to $4.33 billion when compared to the respective
backlog unit and dollar balances as of December 31, 2021.
Homebuilding revenues of $2.67
billion in the fourth quarter of 2022 increased by 23%
compared to homebuilding revenues of $2.18
billion in the fourth quarter of 2021. Gross profit
margin in the fourth quarter of 2022 increased to 25.3%, compared
to 24.4% in the fourth quarter of 2021. In the fourth quarter
of 2022, gross profit was impacted by contract land deposit
impairments of approximately $25.0
million, or 94 basis points as a percentage of
revenue. Income before tax from the homebuilding segment
totaled $548.3 million in the fourth
quarter of 2022, an increase of 40% when compared to the fourth
quarter of 2021.
New orders for the year ended December
31, 2022 decreased by 16% to 19,164 units, compared to
22,721 units in 2021. Settlements for the year ended
December 31, 2022 increased by 6% to
22,732 units, compared to 21,540 units settled in 2021.
Homebuilding revenues for the year ended December 31, 2022 totaled $10.33 billion, a 19% increase from 2021. Gross
profit margin for the year ended December
31, 2022 increased to 25.8%, compared to 22.3% in
2021. Income before tax for the homebuilding segment
increased 50% for the year ended December
31, 2022 to $2.13 billion,
compared to $1.42 billion in
2021.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2022
totaled $1.52 billion, an increase of
3% when compared to the fourth quarter of 2021. Income before
tax from the mortgage banking segment totaled $26.4 million in the fourth quarter of 2022, a
decrease of 24% when compared to $34.8
million in the fourth quarter of 2021. This decrease
was primarily attributable to a decrease in secondary marketing
gains.
Mortgage closed loan production for the year ended December 31, 2022 increased 4% to $6.31 billion. Income before tax from the
mortgage banking segment for the year ended December 31, 2022 decreased 29% to $122.2 million from $171.6
million in 2021.
Effective Tax Rate
Our effective tax rate for the three and twelve months ended
December 31, 2022 was 20.9% and 23.4%, respectively, compared
to 21.6% and 22.2% for the three and twelve months ended
December 31, 2021, respectively. The effective tax rates
in each period were favorably impacted by the recognition of an
income tax benefit related to excess tax benefits from stock option
exercises totaling $22.6 million and
$50.3 million for the three and
twelve months ended December 31, 2022, respectively, and
$10.5 million and $48.4 million for the three and twelve months
ended December 31, 2021, 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-five 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, 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: the impact of COVID-19 on the
economy and related supply chain disruptions; 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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
2,668,036
|
|
$
2,176,807
|
|
$
10,326,770
|
|
$
8,701,693
|
Other
income
|
|
21,592
|
|
1,845
|
|
37,038
|
|
6,559
|
Cost of
sales
|
|
(1,993,722)
|
|
(1,646,050)
|
|
(7,662,271)
|
|
(6,763,115)
|
Selling, general and
administrative
|
|
(140,995)
|
|
(127,757)
|
|
(532,353)
|
|
(474,808)
|
Operating
income
|
|
554,911
|
|
404,845
|
|
2,169,184
|
|
1,470,329
|
Interest
expense
|
|
(6,630)
|
|
(12,836)
|
|
(38,140)
|
|
(51,530)
|
Homebuilding
income
|
|
548,281
|
|
392,009
|
|
2,131,044
|
|
1,418,799
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
44,146
|
|
53,534
|
|
199,664
|
|
249,332
|
Interest
income
|
|
3,570
|
|
2,148
|
|
11,853
|
|
8,725
|
Other
income
|
|
1,294
|
|
876
|
|
4,963
|
|
3,753
|
General and
administrative
|
|
(22,300)
|
|
(21,391)
|
|
(92,946)
|
|
(88,619)
|
Interest
expense
|
|
(269)
|
|
(371)
|
|
(1,384)
|
|
(1,587)
|
Mortgage banking
income
|
|
26,441
|
|
34,796
|
|
122,150
|
|
171,604
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
574,722
|
|
426,805
|
|
2,253,194
|
|
1,590,403
|
Income tax
expense
|
|
(119,954)
|
|
(92,224)
|
|
(527,619)
|
|
(353,684)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
454,768
|
|
$
334,581
|
|
$
1,725,575
|
|
$
1,236,719
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
141.82
|
|
$
96.47
|
|
$
525.20
|
|
$
345.37
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
133.44
|
|
$
89.09
|
|
$
491.82
|
|
$
320.48
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,207
|
|
3,468
|
|
3,286
|
|
3,581
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,408
|
|
3,755
|
|
3,509
|
|
3,859
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,503,424
|
|
$
2,545,069
|
Restricted
cash
|
|
48,455
|
|
60,730
|
Receivables
|
|
20,842
|
|
18,552
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,554,955
|
|
1,777,862
|
Unsold lots and
housing units
|
|
181,952
|
|
127,434
|
Land under
development
|
|
27,100
|
|
12,147
|
Building materials and
other
|
|
24,268
|
|
29,923
|
|
|
1,788,275
|
|
1,947,366
|
|
|
|
|
|
Contract land
deposits, net
|
|
496,080
|
|
497,139
|
Property, plant and
equipment, net
|
|
57,950
|
|
56,979
|
Operating lease
right-of-use assets
|
|
71,081
|
|
59,010
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
Deferred tax assets,
net
|
|
143,585
|
|
132,894
|
Other
assets
|
|
75,898
|
|
96,124
|
|
|
5,247,170
|
|
5,455,443
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
19,415
|
|
28,398
|
Restricted
cash
|
|
2,974
|
|
2,519
|
Mortgage loans held
for sale, net
|
|
316,806
|
|
302,192
|
Property and
equipment, net
|
|
3,559
|
|
3,658
|
Operating lease
right-of-use assets
|
|
16,011
|
|
9,758
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
Other
assets
|
|
47,691
|
|
25,160
|
|
|
413,803
|
|
379,032
|
Total
assets
|
|
$
5,660,973
|
|
$
5,834,475
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
|
|
|
|
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
|
(unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
334,016
|
|
$
336,560
|
Accrued expenses and
other liabilities
|
|
437,234
|
|
435,860
|
Customer
deposits
|
|
313,804
|
|
417,463
|
Operating lease
liabilities
|
|
75,818
|
|
64,128
|
Senior
notes
|
|
914,888
|
|
1,516,255
|
|
|
2,075,760
|
|
2,770,266
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
61,396
|
|
51,394
|
Operating lease
liabilities
|
|
16,968
|
|
10,437
|
|
|
78,364
|
|
61,831
|
Total
liabilities
|
|
2,154,124
|
|
2,832,097
|
|
|
|
|
|
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, 2022 and December 31,
2021
|
|
206
|
|
206
|
Additional paid-in
capital
|
|
2,600,014
|
|
2,378,191
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of
both December 31, 2022 and December 31, 2021
|
|
(16,710)
|
|
(16,710)
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
Retained
earnings
|
|
11,773,414
|
|
10,047,839
|
Less treasury stock at
cost – 17,336,397 and 17,107,889 shares as of December
31, 2022 and December 31, 2021, respectively
|
|
(10,866,785)
|
|
(9,423,858)
|
Total shareholders'
equity
|
|
3,506,849
|
|
3,002,378
|
Total liabilities
and shareholders' equity
|
|
$
5,660,973
|
|
$
5,834,475
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
1,836
|
|
$
525.0
|
|
2,344
|
|
$
529.3
|
|
7,816
|
|
$
526.6
|
|
8,749
|
|
$
522.4
|
North East
(2)
|
|
430
|
|
$
573.6
|
|
448
|
|
$
518.6
|
|
1,679
|
|
$
528.3
|
|
1,685
|
|
$
497.4
|
Mid East
(3)
|
|
741
|
|
$
381.8
|
|
1,262
|
|
$
382.3
|
|
4,344
|
|
$
400.5
|
|
5,567
|
|
$
369.3
|
South East
(4)
|
|
1,146
|
|
$
360.3
|
|
1,631
|
|
$
386.6
|
|
5,325
|
|
$
399.4
|
|
6,720
|
|
$
363.6
|
Total
|
|
4,153
|
|
$
459.0
|
|
5,685
|
|
$
454.9
|
|
19,164
|
|
$
462.8
|
|
22,721
|
|
$
436.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,153
|
|
$
526.6
|
|
1,899
|
|
$
517.4
|
|
9,042
|
|
$
527.1
|
|
8,310
|
|
$
487.3
|
North East
(2)
|
|
456
|
|
$
503.4
|
|
406
|
|
$
490.9
|
|
1,763
|
|
$
506.3
|
|
1,666
|
|
$
460.9
|
Mid East
(3)
|
|
1,484
|
|
$
400.5
|
|
1,317
|
|
$
368.5
|
|
5,518
|
|
$
389.1
|
|
5,414
|
|
$
349.4
|
South East
(4)
|
|
1,656
|
|
$
428.7
|
|
1,478
|
|
$
344.7
|
|
6,409
|
|
$
393.3
|
|
6,150
|
|
$
323.9
|
Total
|
|
5,749
|
|
$
464.0
|
|
5,100
|
|
$
426.8
|
|
22,732
|
|
$
454.3
|
|
21,540
|
|
$
403.9
|
|
|
As of December
31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
3,692
|
|
$
536.3
|
|
4,918
|
|
$
534.8
|
|
North East
(2)
|
|
885
|
|
$
553.9
|
|
969
|
|
$
511.5
|
|
Mid East
(3)
|
|
1,853
|
|
$
403.2
|
|
3,027
|
|
$
381.3
|
|
South East
(4)
|
|
2,732
|
|
$
405.7
|
|
3,816
|
|
$
393.7
|
|
Total
|
|
9,162
|
|
$
472.2
|
|
12,730
|
|
$
454.2
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Average active
communities:
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
169
|
|
158
|
|
160
|
|
155
|
North East
(2)
|
|
37
|
|
37
|
|
36
|
|
34
|
Mid East
(3)
|
|
127
|
|
124
|
|
126
|
|
129
|
South East
(4)
|
|
95
|
|
99
|
|
93
|
|
106
|
Total
|
|
428
|
|
418
|
|
415
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New order cancellation
rate
|
|
18.4 %
|
|
9.7 %
|
|
14.2 %
|
|
9.2 %
|
Lots controlled at end
of period
|
|
|
|
|
|
131,900
|
|
124,900
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
1,524,665
|
|
$
1,480,080
|
|
$
6,313,416
|
|
$
6,073,934
|
Capture
rate
|
|
80 %
|
|
89 %
|
|
83 %
|
|
89 %
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
3,218,933
|
|
3,447,441
|
Number of shares
repurchased
|
|
28,504
|
|
77,443
|
|
323,652
|
|
322,038
|
Aggregate cost of
shares repurchased
|
|
$
116,165
|
|
$
385,164
|
|
$
1,500,358
|
|
$
1,538,019
|
(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-results-301734145.html
SOURCE NVR, Inc.