RESTON,
Va., July 25,
2023 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of
the nation's largest homebuilding and mortgage banking companies,
announced net income for its second quarter ended June 30,
2023 of $404.0 million, or
$116.54 per diluted share. Net
income and diluted earnings per share for the second quarter ended
June 30, 2023 decreased 7% and 6%, respectively, when compared
to 2022 second quarter net income of $433.3
million, or $123.65 per
diluted share. Consolidated revenues for the second quarter
of 2023 totaled $2.34 billion, which
decreased 12% from $2.66 billion in
the second quarter of 2022.
For the six months ended June 30,
2023, consolidated revenues were $4.52 billion, a 10% decrease from $5.04 billion reported in 2022. Net income for
the six months ended June 30, 2023
was $748.4 million, a decrease of 13%
when compared to net income for the six months ended June 30, 2022 of $859.4
million. Diluted earnings per share for the six months ended
June 30, 2023 was $216.52, a decrease of 10% from $240.05 per diluted share for 2022.
Homebuilding
New orders in the second quarter of 2023 increased by 27% to
5,905 units, when compared to 4,663 units in the second quarter of
2022. The average sales price of new orders in the second quarter
of 2023 was $447,300, a decrease of
5% when compared with the second quarter of 2022. The cancellation
rate in the second quarter of 2023 was 11% compared to 14% in the
second quarter of 2022. Settlements in the second quarter of 2023
decreased by 13% to 5,085 units, compared to 5,820 units in the
second quarter of 2022. The average settlement price in the second
quarter of 2023 was $449,000, which
was flat compared with the second quarter of 2022. Our backlog of
homes sold but not settled as of June 30, 2023 decreased on a
unit basis by 9% to 11,231 units and decreased on a dollar basis by
12% to $5.15 billion when compared to
the respective backlog unit and dollar balances as of June 30,
2022.
Homebuilding revenues of $2.28
billion in the second quarter of 2023 decreased by 13%
compared to homebuilding revenues of $2.61
billion in the second quarter of 2022. Gross profit margin
in the second quarter of 2023 decreased to 24.3%, compared to 26.3%
in the second quarter of 2022. Income before tax from the
homebuilding segment totaled $434.7
million in the second quarter of 2023, a decrease of 20%
when compared to the second quarter of 2022.
Mortgage Banking
Mortgage closed loan production in the second quarter of 2023
totaled $1.38 billion, a decrease of
16% when compared to the second quarter of 2022. Income before tax
from the mortgage banking segment totaled $36.5 million in the second quarter of 2023, an
increase of 25% when compared to $29.1
million in the second quarter of 2022. This increase was
primarily attributable to an increase in secondary marketing gains
on sales of loans.
Effective Tax Rate
Our effective tax rate for the three and six months ended
June 30, 2023 was 14.3% and 17.3%, respectively, compared to
24.5% and 24.6% for the three and six months ended June 30,
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 $55.9
million and $79.2 million for
the three and six months ended June 30, 2023, respectively,
and $8.7 million and $17.2 million for the three and six months ended
June 30, 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-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: 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)
(unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
2,283,769
|
|
$
2,610,062
|
|
$
4,415,102
|
|
$
4,919,289
|
Other
income
|
|
34,259
|
|
3,896
|
|
67,205
|
|
5,235
|
Cost of
sales
|
|
(1,728,146)
|
|
(1,924,727)
|
|
(3,336,056)
|
|
(3,576,092)
|
Selling, general and
administrative
|
|
(148,543)
|
|
(132,432)
|
|
(292,161)
|
|
(261,942)
|
Operating
income
|
|
441,339
|
|
556,799
|
|
854,090
|
|
1,086,490
|
Interest
expense
|
|
(6,628)
|
|
(11,852)
|
|
(13,629)
|
|
(24,656)
|
Homebuilding
income
|
|
434,711
|
|
544,947
|
|
840,461
|
|
1,061,834
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
54,561
|
|
48,881
|
|
101,505
|
|
118,063
|
Interest
income
|
|
3,823
|
|
2,772
|
|
6,841
|
|
4,846
|
Other
income
|
|
1,102
|
|
1,303
|
|
2,091
|
|
2,375
|
General and
administrative
|
|
(22,854)
|
|
(23,486)
|
|
(45,488)
|
|
(46,394)
|
Interest
expense
|
|
(167)
|
|
(405)
|
|
(424)
|
|
(767)
|
Mortgage banking
income
|
|
36,465
|
|
29,065
|
|
64,525
|
|
78,123
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
471,176
|
|
574,012
|
|
904,986
|
|
1,139,957
|
Income tax
expense
|
|
(67,149)
|
|
(140,698)
|
|
(156,607)
|
|
(280,543)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
404,027
|
|
$
433,314
|
|
$
748,379
|
|
$
859,414
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
123.84
|
|
$
131.84
|
|
$
230.20
|
|
$
257.65
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
116.54
|
|
$
123.65
|
|
$
216.52
|
|
$
240.05
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,263
|
|
3,287
|
|
3,251
|
|
3,336
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,467
|
|
3,504
|
|
3,456
|
|
3,580
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,678,709
|
|
$
2,503,424
|
Restricted
cash
|
|
51,392
|
|
48,455
|
Receivables
|
|
26,757
|
|
20,842
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,815,169
|
|
1,554,955
|
Unsold lots and
housing units
|
|
158,004
|
|
181,952
|
Land under
development
|
|
24,502
|
|
27,100
|
Building materials and
other
|
|
22,414
|
|
24,268
|
|
|
2,020,089
|
|
1,788,275
|
|
|
|
|
|
Contract land
deposits, net
|
|
516,709
|
|
496,080
|
Property, plant and
equipment, net
|
|
57,711
|
|
57,950
|
Operating lease
right-of-use assets
|
|
73,469
|
|
71,081
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
Other
assets
|
|
239,086
|
|
219,483
|
|
|
5,705,502
|
|
5,247,170
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
13,873
|
|
19,415
|
Restricted
cash
|
|
14,083
|
|
2,974
|
Mortgage loans held
for sale, net
|
|
438,756
|
|
316,806
|
Property and
equipment, net
|
|
4,704
|
|
3,559
|
Operating lease
right-of-use assets
|
|
22,814
|
|
16,011
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
Other
assets
|
|
59,696
|
|
47,691
|
|
|
561,273
|
|
413,803
|
Total
assets
|
|
$
6,266,775
|
|
$
5,660,973
|
|
|
|
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
377,558
|
|
$
334,016
|
Accrued expenses and
other liabilities
|
|
291,563
|
|
437,234
|
Customer
deposits
|
|
368,763
|
|
313,804
|
Operating lease
liabilities
|
|
78,661
|
|
75,818
|
Senior
notes
|
|
913,963
|
|
914,888
|
|
|
2,030,508
|
|
2,075,760
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
58,667
|
|
61,396
|
Operating lease
liabilities
|
|
24,337
|
|
16,968
|
|
|
83,004
|
|
78,364
|
Total
liabilities
|
|
2,113,512
|
|
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 June 30, 2023 and December 31, 2022
|
|
206
|
|
206
|
Additional paid-in
capital
|
|
2,747,687
|
|
2,600,014
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of both June
30, 2023 and December 31, 2022
|
|
(16,710)
|
|
(16,710)
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
Retained
earnings
|
|
12,521,793
|
|
11,773,414
|
Less treasury stock at
cost – 17,294,792 and 17,336,397 shares as of June 30, 2023 and
December 31, 2022, respectively
|
|
(11,116,423)
|
|
(10,866,785)
|
Total shareholders'
equity
|
|
4,153,263
|
|
3,506,849
|
Total liabilities
and shareholders' equity
|
|
$
6,266,775
|
|
$
5,660,973
|
|
|
|
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,348
|
|
$
519.2
|
|
1,860
|
|
$
535.1
|
|
4,583
|
|
$
517.8
|
|
4,167
|
|
$
531.8
|
North East
(2)
|
|
463
|
|
$
557.0
|
|
441
|
|
$
503.7
|
|
905
|
|
$
564.9
|
|
901
|
|
$
513.5
|
Mid East
(3)
|
|
1,339
|
|
$
390.3
|
|
1,114
|
|
$
410.5
|
|
2,656
|
|
$
387.3
|
|
2,648
|
|
$
403.6
|
South East
(4)
|
|
1,755
|
|
$
365.7
|
|
1,248
|
|
$
420.0
|
|
3,649
|
|
$
363.5
|
|
2,874
|
|
$
421.6
|
Total
|
|
5,905
|
|
$
447.3
|
|
4,663
|
|
$
471.6
|
|
11,793
|
|
$
444.3
|
|
10,590
|
|
$
468.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,030
|
|
$
521.3
|
|
2,292
|
|
$
527.1
|
|
3,825
|
|
$
522.7
|
|
4,472
|
|
$
525.5
|
North East
(2)
|
|
432
|
|
$
539.2
|
|
472
|
|
$
503.0
|
|
795
|
|
$
523.7
|
|
820
|
|
$
503.6
|
Mid East
(3)
|
|
1,067
|
|
$
385.7
|
|
1,356
|
|
$
384.2
|
|
2,056
|
|
$
395.9
|
|
2,566
|
|
$
382.8
|
South East
(4)
|
|
1,556
|
|
$
373.0
|
|
1,700
|
|
$
378.4
|
|
3,048
|
|
$
388.7
|
|
3,176
|
|
$
369.6
|
Total
|
|
5,085
|
|
$
449.0
|
|
5,820
|
|
$
448.4
|
|
9,724
|
|
$
454.0
|
|
11,034
|
|
$
445.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
2023
|
|
2022
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,450
|
|
$
528.8
|
|
4,613
|
|
$
541.1
|
|
North East
(2)
|
|
995
|
|
$
587.9
|
|
1,050
|
|
$
519.3
|
|
Mid East
(3)
|
|
2,453
|
|
$
392.1
|
|
3,109
|
|
$
399.0
|
|
South East
(4)
|
|
3,333
|
|
$
375.1
|
|
3,514
|
|
$
438.2
|
|
Total
|
|
11,231
|
|
$
458.6
|
|
12,286
|
|
$
473.9
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Average active
communities:
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
169
|
|
155
|
|
166
|
|
153
|
North East
(2)
|
|
36
|
|
38
|
|
36
|
|
36
|
Mid East
(3)
|
|
111
|
|
121
|
|
112
|
|
125
|
South East
(4)
|
|
110
|
|
92
|
|
106
|
|
91
|
Total
|
|
426
|
|
406
|
|
420
|
|
405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New order cancellation
rate
|
|
10.9 %
|
|
14.3 %
|
|
12.4 %
|
|
12.1 %
|
Lots controlled at end
of period
|
|
|
|
|
|
130,400
|
|
133,200
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
1,381,647
|
|
$
1,647,972
|
|
$
2,618,930
|
|
$
3,132,565
|
Capture
rate
|
|
86 %
|
|
84 %
|
|
85 %
|
|
85 %
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
3,260,538
|
|
3,284,153
|
Number of shares
repurchased
|
|
34,827
|
|
61,078
|
|
56,001
|
|
207,132
|
Aggregate cost of
shares repurchased
|
|
$
201,077
|
|
$
266,915
|
|
$
311,125
|
|
$
1,015,703
|
|
|
(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-second-quarter-results-301884441.html
SOURCE NVR, Inc.