RESTON, Va., July 21, 2021 /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, 2021 of $321.3
million, or $82.45 per diluted
share. Net income and diluted earnings per share for the
second quarter ended June 30, 2021 increased 96% and 94%,
respectively, when compared to 2020 second quarter net income of
$164.1 million, or $42.50 per diluted share. Consolidated
revenues for the second quarter of 2021 totaled $2.28 billion, an increase of 41% from
$1.62 billion in the second quarter
of 2020.
For the six months ended June 30, 2021, consolidated
revenues were $4.33 billion, a 35%
increase from $3.20 billion reported
in 2020. Net income for the six months ended June 30, 2021 was
$570.1 million, an increase of 68%
when compared to the six months ended June 30, 2020. Diluted
earnings per share for the six months ended June 30, 2021 was
$145.53, an increase of 66% from
$87.56 per diluted share for
2020.
Homebuilding
New orders in the second quarter of 2021 decreased by 6% to
5,521 units, when compared to 5,901 units in the second quarter of
2020. The average sales price of new orders in the second quarter
of 2021 was $440,200, an increase of
20% when compared with the second quarter of 2020. The
cancellation rate in the second quarter of 2021 was 8% compared to
16% in the second quarter of 2020. Settlements in the second
quarter of 2021 increased by 32% to 5,685 units, compared to 4,296
units in the second quarter of 2020. Our backlog of homes sold but
not settled as of June 30, 2021 increased on a unit basis by
19% to 12,627 units and increased on a dollar basis by 35% to
$5.41 billion when compared to the
respective backlog unit and dollar balances as of June 30,
2020.
Homebuilding revenues of $2.22
billion in the second quarter of 2021 increased by 40%
compared to homebuilding revenues of $1.59
billion in the second quarter of 2020. Gross profit
margin in the second quarter of 2021 increased to 22.6%, compared
to 19.2% in the second quarter of 2020. Income before tax
from the homebuilding segment totaled $378.3
million in the second quarter of 2021, an increase of 94%
when compared to the second quarter of 2020.
Mortgage Banking
Mortgage closed loan production in the second quarter of 2021
totaled $1.57 billion, an increase of
37% when compared to the second quarter of 2020. Income
before tax from the mortgage banking segment totaled $39.2 million in the second quarter of 2021, an
increase of 161% when compared to $15.0
million in the second quarter of 2020. This increase
was primarily attributable to increased mortgage volume in the
second quarter of 2021, coupled with income in the second quarter
of 2020 being adversely impacted by disruptions in the mortgage
markets related to the COVID-19 pandemic, which resulted in a
reduction in fair value of mortgage servicing rights.
Effective Tax Rate
Our effective tax rate for the three and six months ended
June 30, 2021 was 23.0% and 21.9%, respectively, compared to
21.8% and 8.5% for the three and six months ended June 30,
2020, 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
$11.2 million and $28.6 million for the three and six months
ended June 30, 2021, respectively, and $6.9 million and $62.5
million for the three and six months ended June 30,
2020, respectively.
Other Matters - COVID-19
The COVID-19 pandemic has had a significant impact on all
facets of our business. Our primary focus as we face this
challenge is to do everything we can to ensure the safety and
well-being of our employees, customers and trade partners. In
each of our markets, we continue to operate in accordance with the
guidelines issued by the Centers for Disease Control and Prevention
as well as state and local health department guidelines, which has
resulted in significant changes to the way we conduct
business.
Although current demand for new homes is strong, there remains
uncertainty regarding the extent and timing of disruption to our
business that may result from COVID-19 and related governmental
actions. There is also uncertainty as to the effects of
economic relief efforts on the U.S. economy, unemployment, consumer
confidence, demand for our homes and the mortgage market, including
lending standards and secondary mortgage markets. We are unable to
predict the extent to which this will impact our operational and
financial performance including the impact of future developments
such as the duration and spread of COVID-19, corresponding
governmental actions, and the impact of such on our employees,
customers and trade partners.
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-three 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: the impact of COVID-19 on the
economy; 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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,224,560
|
|
|
$
|
1,588,758
|
|
|
$
|
4,188,271
|
|
|
$
|
3,144,465
|
|
Other
income
|
|
1,632
|
|
|
2,408
|
|
|
3,218
|
|
|
7,744
|
|
Cost of
sales
|
|
(1,721,673)
|
|
|
(1,284,493)
|
|
|
(3,299,126)
|
|
|
(2,579,236)
|
|
Selling, general and
administrative
|
|
(113,406)
|
|
|
(102,702)
|
|
|
(234,825)
|
|
|
(212,869)
|
|
Operating
income
|
|
391,113
|
|
|
203,971
|
|
|
657,538
|
|
|
360,104
|
|
Interest
expense
|
|
(12,850)
|
|
|
(9,166)
|
|
|
(25,856)
|
|
|
(15,380)
|
|
Homebuilding
income
|
|
378,263
|
|
|
194,805
|
|
|
631,682
|
|
|
344,724
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
59,038
|
|
|
31,610
|
|
|
136,773
|
|
|
58,431
|
|
Interest
income
|
|
2,209
|
|
|
1,854
|
|
|
4,241
|
|
|
4,323
|
|
Other
income
|
|
988
|
|
|
679
|
|
|
1,855
|
|
|
1,328
|
|
General and
administrative
|
|
(22,613)
|
|
|
(18,758)
|
|
|
(44,269)
|
|
|
(36,969)
|
|
Interest
expense
|
|
(420)
|
|
|
(359)
|
|
|
(811)
|
|
|
(631)
|
|
Mortgage banking
income
|
|
39,202
|
|
|
15,026
|
|
|
97,789
|
|
|
26,482
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
417,465
|
|
|
209,831
|
|
|
729,471
|
|
|
371,206
|
|
Income tax (expense)
benefit
|
|
(96,170)
|
|
|
(45,756)
|
|
|
(159,414)
|
|
|
(31,428)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
321,295
|
|
|
$
|
164,075
|
|
|
$
|
570,057
|
|
|
$
|
339,778
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
|
88.69
|
|
|
$
|
44.56
|
|
|
$
|
156.27
|
|
|
$
|
92.52
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
$
|
82.45
|
|
|
$
|
42.50
|
|
|
$
|
145.53
|
|
|
$
|
87.56
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,623
|
|
|
3,682
|
|
|
3,648
|
|
|
3,673
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
|
3,897
|
|
|
3,861
|
|
|
3,917
|
|
|
3,881
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,597,565
|
|
|
$
|
2,714,720
|
|
Restricted
cash
|
|
42,543
|
|
|
28,912
|
|
Receivables
|
|
24,484
|
|
|
18,299
|
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,792,293
|
|
|
1,484,936
|
|
Unsold lots and
housing units
|
|
131,668
|
|
|
123,197
|
|
Land under
development
|
|
7,794
|
|
|
62,790
|
|
Building materials and
other
|
|
41,618
|
|
|
38,159
|
|
|
|
1,973,373
|
|
|
1,709,082
|
|
|
|
|
|
|
Contract land
deposits, net
|
|
425,301
|
|
|
387,628
|
|
Property, plant and
equipment, net
|
|
54,379
|
|
|
57,786
|
|
Operating lease
right-of-use assets
|
|
61,740
|
|
|
53,110
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
|
41,580
|
|
Other
assets
|
|
215,168
|
|
|
203,399
|
|
|
|
5,436,133
|
|
|
5,214,516
|
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
20,757
|
|
|
63,547
|
|
Restricted
cash
|
|
3,688
|
|
|
2,334
|
|
Mortgage loans held
for sale, net
|
|
344,680
|
|
|
449,760
|
|
Property and
equipment, net
|
|
4,236
|
|
|
4,544
|
|
Operating lease
right-of-use assets
|
|
11,627
|
|
|
12,439
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
|
7,347
|
|
Other
assets
|
|
25,968
|
|
|
22,654
|
|
|
|
418,303
|
|
|
562,625
|
|
Total
assets
|
|
$
|
5,854,436
|
|
|
$
|
5,777,141
|
|
|
|
|
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
|
380,957
|
|
|
$
|
339,867
|
|
Accrued expenses and
other liabilities
|
|
419,454
|
|
|
440,671
|
|
Customer
deposits
|
|
365,443
|
|
|
240,758
|
|
Operating lease
liabilities
|
|
67,413
|
|
|
59,357
|
|
Senior
notes
|
|
1,516,830
|
|
|
1,517,395
|
|
|
|
2,750,097
|
|
|
2,598,048
|
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
49,605
|
|
|
62,720
|
|
Operating lease
liabilities
|
|
12,446
|
|
|
13,299
|
|
|
|
62,051
|
|
|
76,019
|
|
Total
liabilities
|
|
2,812,148
|
|
|
2,674,067
|
|
|
|
|
|
|
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, 2021 and December 31, 2020
|
|
206
|
|
|
206
|
|
Additional paid-in
capital
|
|
2,314,564
|
|
|
2,214,426
|
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of
both June 30, 2021 and December 31, 2020
|
|
(16,710)
|
|
|
(16,710)
|
|
Deferred compensation
liability
|
|
16,710
|
|
|
16,710
|
|
Retained
earnings
|
|
9,381,177
|
|
|
8,811,120
|
|
Less treasury stock at
cost – 16,976,140 and 16,859,753 shares as of June 30, 2021
and December 31, 2020, respectively
|
|
(8,653,659)
|
|
|
(7,922,678)
|
|
Total shareholders'
equity
|
|
3,042,288
|
|
|
3,103,074
|
|
Total liabilities
and shareholders' equity
|
|
$
|
5,854,436
|
|
|
$
|
5,777,141
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,090
|
|
$
|
535.4
|
|
|
2,381
|
|
$
|
443.0
|
|
|
4,381
|
|
|
$
|
518.1
|
|
|
4,442
|
|
|
$
|
442.6
|
|
North East
(2)
|
|
394
|
|
$
|
499.3
|
|
|
369
|
|
$
|
375.7
|
|
|
834
|
|
|
$
|
486.3
|
|
|
727
|
|
|
$
|
378.9
|
|
Mid East
(3)
|
|
1,320
|
|
$
|
375.7
|
|
|
1,536
|
|
$
|
315.6
|
|
|
3,115
|
|
|
$
|
361.1
|
|
|
2,761
|
|
|
$
|
320.3
|
|
South East
(4)
|
|
1,717
|
|
$
|
360.3
|
|
|
1,615
|
|
$
|
296.1
|
|
|
3,505
|
|
|
$
|
348.7
|
|
|
2,986
|
|
|
$
|
300.5
|
|
Total
|
|
5,521
|
|
$
|
440.2
|
|
|
5,901
|
|
$
|
365.4
|
|
|
11,835
|
|
|
$
|
424.4
|
|
|
10,916
|
|
|
$
|
368.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,224
|
|
$
|
471.4
|
|
|
1,931
|
|
$
|
434.9
|
|
|
4,234
|
|
|
$
|
468.7
|
|
|
3,726
|
|
|
$
|
433.1
|
|
North East
(2)
|
|
433
|
|
$
|
446.3
|
|
|
262
|
|
$
|
374.9
|
|
|
805
|
|
|
$
|
441.5
|
|
|
543
|
|
|
$
|
376.3
|
|
Mid East
(3)
|
|
1,404
|
|
$
|
340.6
|
|
|
945
|
|
$
|
317.4
|
|
|
2,667
|
|
|
$
|
338.6
|
|
|
1,930
|
|
|
$
|
321.6
|
|
South East
(4)
|
|
1,624
|
|
$
|
310.7
|
|
|
1,158
|
|
$
|
302.9
|
|
|
3,051
|
|
|
$
|
309.8
|
|
|
2,327
|
|
|
$
|
303.2
|
|
Total
|
|
5,685
|
|
$
|
391.3
|
|
|
4,296
|
|
$
|
369.8
|
|
|
10,757
|
|
|
$
|
389.3
|
|
|
8,526
|
|
|
$
|
368.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
2021
|
|
2020
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,626
|
|
$
|
517.7
|
|
|
4,328
|
|
$
|
448.7
|
|
|
North East
(2)
|
|
979
|
|
$
|
485.7
|
|
|
771
|
|
$
|
403.5
|
|
|
Mid East
(3)
|
|
3,322
|
|
$
|
364.8
|
|
|
2,644
|
|
$
|
327.5
|
|
|
South East
(4)
|
|
3,700
|
|
$
|
359.0
|
|
|
2,880
|
|
$
|
309.2
|
|
|
Total
|
|
12,627
|
|
$
|
428.5
|
|
|
10,623
|
|
$
|
377.5
|
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Average active
communities:
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
153
|
|
188
|
|
156
|
|
189
|
North East
(2)
|
|
32
|
|
41
|
|
33
|
|
40
|
Mid East
(3)
|
|
126
|
|
141
|
|
133
|
|
139
|
South East
(4)
|
|
109
|
|
114
|
|
110
|
|
111
|
Total
|
|
420
|
|
484
|
|
432
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New order
cancellation rate
|
|
|
8.3
|
%
|
|
|
15.7
|
%
|
|
|
9.0
|
%
|
|
|
18.1
|
%
|
Lots controlled at
end of period
|
|
|
|
|
|
114,100
|
|
|
102,000
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
|
1,565,095
|
|
|
$
|
1,144,428
|
|
|
$
|
2,977,974
|
|
|
$
|
2,276,531
|
|
Capture
rate
|
|
|
89
|
%
|
|
|
89
|
%
|
|
|
89
|
%
|
|
|
90
|
%
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
3,579,190
|
|
|
3,689,088
|
|
Number of shares
repurchased
|
|
78,452
|
|
|
—
|
|
|
164,975
|
|
|
57,611
|
|
Aggregate cost of
shares repurchased
|
|
$
|
376,941
|
|
|
$
|
—
|
|
|
$
|
754,366
|
|
|
$
|
216,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
View original
content:https://www.prnewswire.com/news-releases/nvr-inc-announces-second-quarter-results-301337985.html
SOURCE NVR, Inc.