RESTON,
Va., April 23, 2024 /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, 2024 of
$394.3 million, or $116.41 per diluted share. Net income and diluted
earnings per share for the first quarter ended March 31, 2024 increased 14% and 17%,
respectively, when compared to 2023 first quarter net income of
$344.4 million, or $99.89 per diluted share. Consolidated
revenues for the first quarter of 2024 totaled $2.33 billion, which increased 7% from
$2.18 billion in the first quarter of
2023.
Homebuilding
New orders in the first quarter of 2024 increased by 3% to 6,049
units, when compared to 5,888 units in the first quarter of 2023.
The average sales price of new orders in the first quarter of 2024
was $454,300, an increase of 3% when
compared with the first quarter of 2023. The cancellation rate in
the first quarter of 2024 was 13% compared to 14% in the first
quarter of 2023. Settlements in the first quarter of 2024
increased by 10% to 5,089 units, compared to 4,639 units in the
first quarter of 2023. The average settlement price in the first
quarter of 2024 was $449,200, a
decrease of 2% from the first quarter of 2023. Our backlog of homes
sold but not settled as of March 31,
2024 increased on a unit basis by 7% to 11,189 units and
increased on a dollar basis by 9% to $5.22
billion when compared to the respective backlog unit and
dollar balances as of March 31,
2023.
Homebuilding revenues of $2.29
billion in the first quarter of 2024 increased by 7%
compared to homebuilding revenues of $2.13
billion in the first quarter of 2023. Gross profit margin in
the first quarter of 2024 decreased slightly to 24.5%, compared to
24.6% in the first quarter of 2023. Income before tax from
the homebuilding segment totaled $441.7
million in the first quarter of 2024, an increase of 9% when
compared to the first quarter of 2023.
Mortgage Banking
Mortgage closed loan production in the first quarter of 2024
totaled $1.38 billion, an increase of
11% when compared to the first quarter of 2023. Income before tax
from the mortgage banking segment totaled $29.0 million in the first quarter of 2024, an
increase of 3% when compared to $28.1
million in the first quarter of 2023.
Effective Tax Rate
Our effective tax rate for the three months ended March 31, 2024 was 16.2% compared to 20.6% for
the three months ended March 31,
2023. The decrease in the effective tax rate in the first
quarter of 2024 is primarily attributable to a higher income tax
benefit recognized for excess tax benefits from stock option
exercises, which totaled $43.8
million and $23.2 million for
the three months ended March 31, 2024
and March 31, 2023, 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 sixteen
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)
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
Revenues
|
|
$
2,286,177
|
|
$
2,131,333
|
|
Other
income
|
|
40,866
|
|
32,946
|
|
Cost of
sales
|
|
(1,726,213)
|
|
(1,607,910)
|
|
Selling, general and
administrative
|
|
(152,503)
|
|
(143,618)
|
|
Operating
income
|
|
448,327
|
|
412,751
|
|
Interest
expense
|
|
(6,649)
|
|
(7,001)
|
|
Homebuilding
income
|
|
441,678
|
|
405,750
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
Mortgage banking
fees
|
|
47,286
|
|
46,944
|
|
Interest
income
|
|
4,092
|
|
3,018
|
|
Other
income
|
|
1,171
|
|
989
|
|
General and
administrative
|
|
(23,358)
|
|
(22,634)
|
|
Interest
expense
|
|
(177)
|
|
(257)
|
|
Mortgage banking
income
|
|
29,014
|
|
28,060
|
|
|
|
|
|
|
|
Income before
taxes
|
|
470,692
|
|
433,810
|
|
Income tax
expense
|
|
(76,423)
|
|
(89,458)
|
|
|
|
|
|
|
|
Net
income
|
|
$
394,269
|
|
$
344,352
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
123.76
|
|
$
106.31
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
116.41
|
|
$
99.89
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,186
|
|
3,239
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,387
|
|
3,447
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
March 31,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,841,354
|
|
$
3,126,472
|
Restricted
cash
|
|
44,099
|
|
41,483
|
Receivables
|
|
36,306
|
|
29,000
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,790,687
|
|
1,674,686
|
Unsold lots and
housing units
|
|
245,262
|
|
214,666
|
Land under
development
|
|
59,050
|
|
36,895
|
Building materials and
other
|
|
22,035
|
|
23,903
|
|
|
2,117,034
|
|
1,950,150
|
|
|
|
|
|
Contract land
deposits, net
|
|
609,407
|
|
576,551
|
Property, plant and
equipment, net
|
|
63,095
|
|
63,716
|
Operating lease
right-of-use assets
|
|
66,716
|
|
70,384
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
Other
assets
|
|
249,390
|
|
242,751
|
|
|
6,068,981
|
|
6,142,087
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
27,803
|
|
36,422
|
Restricted
cash
|
|
11,537
|
|
11,067
|
Mortgage loans held
for sale, net
|
|
332,510
|
|
222,560
|
Property and
equipment, net
|
|
7,438
|
|
6,348
|
Operating lease
right-of-use assets
|
|
22,008
|
|
23,541
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
Other
assets
|
|
60,533
|
|
152,385
|
|
|
469,176
|
|
459,670
|
Total
assets
|
|
$
6,538,157
|
|
$
6,601,757
|
|
|
|
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
March 31,
2024
|
|
December 31,
2023
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
391,591
|
|
$
347,738
|
Accrued expenses and
other liabilities
|
|
380,811
|
|
413,043
|
Customer
deposits
|
|
355,331
|
|
334,441
|
Operating lease
liabilities
|
|
72,052
|
|
75,797
|
Senior
notes
|
|
912,554
|
|
913,027
|
|
|
2,112,339
|
|
2,084,046
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
57,400
|
|
127,511
|
Operating lease
liabilities
|
|
24,037
|
|
25,475
|
|
|
81,437
|
|
152,986
|
Total
liabilities
|
|
2,193,776
|
|
2,237,032
|
|
|
|
|
|
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, 2024 and December 31, 2023
|
|
206
|
|
206
|
Additional paid-in
capital
|
|
2,905,707
|
|
2,848,528
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of
both March 31, 2024 and December 31, 2023
|
|
(16,710)
|
|
(16,710)
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
Retained
earnings
|
|
13,759,294
|
|
13,365,025
|
Less treasury stock at
cost – 17,387,705 and 17,360,454 shares as of March 31,
2024 and December 31, 2023, respectively
|
|
(12,320,826)
|
|
(11,849,034)
|
Total shareholders'
equity
|
|
4,344,381
|
|
4,364,725
|
Total liabilities
and shareholders' equity
|
|
$
6,538,157
|
|
$
6,601,757
|
|
|
|
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,282
|
|
$
515.4
|
|
2,235
|
|
$
516.3
|
|
North East
(2)
|
|
527
|
|
$
612.6
|
|
442
|
|
$
573.1
|
|
Mid East
(3)
|
|
1,263
|
|
$
409.9
|
|
1,317
|
|
$
384.2
|
|
South East
(4)
|
|
1,977
|
|
$
369.9
|
|
1,894
|
|
$
361.5
|
|
Total
|
|
6,049
|
|
$
454.3
|
|
5,888
|
|
$
441.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Settlements:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
1,966
|
|
$
517.5
|
|
1,795
|
|
$
524.3
|
|
North East
(2)
|
|
463
|
|
$
552.2
|
|
363
|
|
$
505.3
|
|
Mid East
(3)
|
|
1,049
|
|
$
397.5
|
|
989
|
|
$
406.8
|
|
South East
(4)
|
|
1,611
|
|
$
370.0
|
|
1,492
|
|
$
405.1
|
|
Total
|
|
5,089
|
|
$
449.2
|
|
4,639
|
|
$
459.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
2024
|
|
2023
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,410
|
|
$
521.0
|
|
4,132
|
|
$
530.6
|
|
North East
(2)
|
|
1,092
|
|
$
628.2
|
|
964
|
|
$
580.8
|
|
Mid East
(3)
|
|
2,190
|
|
$
417.7
|
|
2,181
|
|
$
390.1
|
|
South East
(4)
|
|
3,497
|
|
$
377.5
|
|
3,134
|
|
$
379.3
|
|
Total
|
|
11,189
|
|
$
466.4
|
|
10,411
|
|
$
460.3
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
Average active
communities:
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
157
|
|
162
|
|
North East
(2)
|
|
34
|
|
37
|
|
Mid East
(3)
|
|
100
|
|
113
|
|
South East
(4)
|
|
136
|
|
101
|
|
Total
|
|
427
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
Homebuilding
data:
|
|
|
|
|
|
New order cancellation
rate
|
|
13 %
|
|
14 %
|
|
Lots controlled at end
of period
|
|
143,200
|
|
129,900
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
Loan
closings
|
|
$
1,378,009
|
|
$
1,237,283
|
|
Capture
rate
|
|
86 %
|
|
83 %
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
3,167,625
|
|
3,241,750
|
|
Number of shares
repurchased
|
|
66,858
|
|
21,174
|
|
Aggregate cost of
shares repurchased
|
|
$
496,936
|
|
$
110,048
|
|
|
|
|
|
|
|
(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, Georgia and Kentucky
|
View original
content:https://www.prnewswire.com/news-releases/nvr-inc-announces-first-quarter-results-302123807.html
SOURCE NVR, INC.