RESTON,
Va., April 26,
2022 /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, 2022 of $426.1
million, or $116.56 per
diluted share. Net income and diluted earnings per share for
the first quarter ended March 31, 2022 increased 71% and 84%,
respectively, when compared to 2021 first quarter net income of
$248.8 million, or $63.21 per diluted share. Consolidated
revenues for the first quarter of 2022 totaled $2.38 billion, which increased 17% from
$2.04 billion in the first quarter of
2021.
Homebuilding
New orders in the first quarter of 2022 decreased by 6% to 5,927
units, when compared to 6,314 units in the first quarter of 2021.
The average sales price of new orders in the first quarter of 2022
was $465,700, an increase of 13% when
compared with the first quarter of 2021. The first quarter
cancellation rate was 10% for both 2022 and 2021. Settlements
in the first quarter of 2022 increased by 3% to 5,214 units,
compared to 5,072 units in the first quarter of 2021. The average
settlement price in the first quarter of 2022 was $442,900, an increase of 14% from the first
quarter of 2021. Our backlog of homes sold but not settled as of
March 31, 2022 increased on a unit basis by 5% to 13,443 units
and increased on a dollar basis by 20% to $6.23 billion when compared to the respective
backlog unit and dollar balances as of March 31, 2021.
Homebuilding revenues of $2.31
billion in the first quarter of 2022 increased by 18%
compared to homebuilding revenues of $1.96
billion in the first quarter of 2021. Gross profit
margin in the first quarter of 2022 increased to 28.5%, compared to
19.7% in the first quarter of 2021. Gross profit margins were
favorably impacted by the aforementioned increase in the average
price of settlements in the first quarter of 2022, coupled with
lower lumber prices quarter over quarter. Income before tax from
the homebuilding segment totaled $516.9
million in the first quarter of 2022, an increase of 104%
when compared to the first quarter of 2021.
Mortgage Banking
Mortgage closed loan production in the first quarter of 2022
totaled $1.48 billion, an increase of
5% when compared to the first quarter of 2021. Income before
tax from the mortgage banking segment totaled $49.1 million in the first quarter of 2022, a
decrease of 16% when compared to $58.6
million in the first quarter of 2021.
Effective Tax
Rate
Our effective tax rate for the three months ended March 31,
2022 was 24.7% compared to 20.3% for the three months ended
March 31, 2021. The increase in the effective tax rate
in the first quarter of 2022 is primarily attributable to a lower
income tax benefit recognized for excess tax benefits from stock
option exercises, which totaled $8.4
million and $17.4 million for
the three months ended March 31, 2022 and March 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-four 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 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)
(unaudited)
|
|
|
Three Months Ended March 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
Revenues
|
|
$
2,309,227
|
|
$
1,963,711
|
|
|
Other income
|
|
1,339
|
|
1,586
|
|
|
Cost of sales
|
|
(1,651,365)
|
|
(1,577,453)
|
|
|
Selling, general and administrative
|
|
(129,510)
|
|
(121,419)
|
|
|
Operating income
|
|
529,691
|
|
266,425
|
|
|
Interest expense
|
|
(12,804)
|
|
(13,006)
|
|
|
Homebuilding income
|
|
516,887
|
|
253,419
|
|
|
|
|
|
|
|
|
Mortgage Banking:
|
|
|
|
|
|
|
Mortgage banking fees
|
|
69,182
|
|
77,735
|
|
|
Interest income
|
|
2,074
|
|
2,032
|
|
|
Other income
|
|
1,072
|
|
867
|
|
|
General and administrative
|
|
(22,908)
|
|
(21,656)
|
|
|
Interest expense
|
|
(362)
|
|
(391)
|
|
|
Mortgage banking
income
|
|
49,058
|
|
58,587
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
565,945
|
|
312,006
|
|
|
Income tax expense
|
|
(139,845)
|
|
(63,244)
|
|
|
|
|
|
|
|
|
Net income
|
|
$
426,100
|
|
$
248,762
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
125.87
|
|
$
67.72
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
116.56
|
|
$
63.21
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding
|
|
3,385
|
|
3,673
|
|
|
|
|
|
|
|
|
Diluted weighted average shares
outstanding
|
|
3,656
|
|
3,935
|
|
|
NVR, Inc.
|
|
Consolidated Balance
Sheets
|
|
(in thousands, except
share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
March 31, 2022
|
|
December 31, 2021
|
|
ASSETS
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
2,138,706
|
|
$
2,545,069
|
|
Restricted cash
|
|
65,562
|
|
60,730
|
|
Receivables
|
|
23,471
|
|
18,552
|
|
Inventory:
|
|
|
|
|
|
Lots and housing units, covered
under sales agreements with customers
|
|
1,997,115
|
|
1,777,862
|
|
Unsold lots and housing
units
|
|
142,015
|
|
127,434
|
|
Land under
development
|
|
14,668
|
|
12,147
|
|
Building materials and
other
|
|
39,841
|
|
29,923
|
|
|
2,193,639
|
|
1,947,366
|
|
|
|
|
|
|
Contract land deposits, net
|
|
512,042
|
|
497,139
|
|
Property, plant and equipment, net
|
|
56,829
|
|
56,979
|
|
Operating lease right-of-use assets
|
|
59,819
|
|
59,010
|
|
Reorganization value in excess of amounts allocable to
identifiable assets, net
|
|
41,580
|
|
41,580
|
|
Other assets
|
|
220,675
|
|
229,018
|
|
|
5,312,323
|
|
5,455,443
|
|
Mortgage Banking:
|
|
|
|
|
|
Cash and cash equivalents
|
|
19,157
|
|
28,398
|
|
Restricted cash
|
|
3,402
|
|
2,519
|
|
Mortgage loans held for sale, net
|
|
312,726
|
|
302,192
|
|
Property and equipment, net
|
|
3,386
|
|
3,658
|
|
Operating lease right-of-use assets
|
|
8,491
|
|
9,758
|
|
Reorganization value in excess of amounts allocable to
identifiable assets, net
|
|
7,347
|
|
7,347
|
|
Other assets
|
|
59,381
|
|
25,160
|
|
|
413,890
|
|
379,032
|
|
Total assets
|
|
$
5,726,213
|
|
$
5,834,475
|
|
|
|
|
|
|
NVR, Inc.
|
|
Consolidated Balance
Sheets (Continued)
|
|
(in thousands, except
share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
March 31, 2022
|
|
December 31, 2021
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
Accounts payable
|
|
$
398,516
|
|
$
336,560
|
|
Accrued expenses and other liabilities
|
|
501,091
|
|
435,860
|
|
Customer deposits
|
|
453,178
|
|
417,463
|
|
Operating lease liabilities
|
|
64,546
|
|
64,128
|
|
Senior notes
|
|
1,515,964
|
|
1,516,255
|
|
|
2,933,295
|
|
2,770,266
|
|
Mortgage Banking:
|
|
|
|
|
|
Accounts payable and other liabilities
|
|
58,098
|
|
51,394
|
|
Operating lease liabilities
|
|
9,221
|
|
10,437
|
|
|
67,319
|
|
61,831
|
|
Total
liabilities
|
|
3,000,614
|
|
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 March 31,
2022 and December 31, 2021
|
|
206
|
|
206
|
|
Additional paid-in capital
|
|
2,416,660
|
|
2,378,191
|
|
Deferred compensation trust – 106,697 shares of NVR, Inc.
common stock as of
both March 31, 2022 and
December 31, 2021
|
|
(16,710)
|
|
(16,710)
|
|
Deferred compensation liability
|
|
16,710
|
|
16,710
|
|
Retained earnings
|
|
10,473,939
|
|
10,047,839
|
|
Less treasury stock at cost – 17,240,495 and 17,107,889
shares as of March 31,
2022 and December 31, 2021,
respectively
|
|
(10,165,206)
|
|
(9,423,858)
|
|
Total shareholders'
equity
|
|
2,725,599
|
|
3,002,378
|
|
Total liabilities and
shareholders' equity
|
|
$
5,726,213
|
|
$
5,834,475
|
|
|
|
|
|
|
NVR, Inc.
|
|
Operating
Activity
|
|
(dollars in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
|
New orders, net of
cancellations:
|
|
|
|
|
|
|
|
|
|
Mid
Atlantic (1)
|
|
2,307
|
|
$
529.1
|
|
2,291
|
|
$
502.2
|
|
|
North East (2)
|
|
460
|
|
$
522.9
|
|
440
|
|
$
474.7
|
|
|
Mid
East (3)
|
|
1,534
|
|
$
398.6
|
|
1,795
|
|
$
350.4
|
|
|
South East (4)
|
|
1,626
|
|
$
422.8
|
|
1,788
|
|
$
337.6
|
|
|
Total
|
|
5,927
|
|
$
465.7
|
|
6,314
|
|
$
410.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
Mid
Atlantic (1)
|
|
2,180
|
|
$
523.7
|
|
2,010
|
|
$
465.7
|
|
|
North East (2)
|
|
348
|
|
$
504.5
|
|
372
|
|
$
436.0
|
|
|
Mid
East (3)
|
|
1,210
|
|
$
381.3
|
|
1,263
|
|
$
336.4
|
|
|
South East (4)
|
|
1,476
|
|
$
359.5
|
|
1,427
|
|
$
308.6
|
|
|
Total
|
|
5,214
|
|
$
442.9
|
|
5,072
|
|
$
387.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
|
|
|
|
2022
|
|
2021
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
Mid
Atlantic (1)
|
|
5,045
|
|
$
537.0
|
|
4,760
|
|
$
488.2
|
|
|
North East (2)
|
|
1,081
|
|
$
518.6
|
|
1,018
|
|
$
463.7
|
|
|
Mid
East (3)
|
|
3,351
|
|
$
389.2
|
|
3,406
|
|
$
350.6
|
|
|
South East (4)
|
|
3,966
|
|
$
418.3
|
|
3,607
|
|
$
336.6
|
|
|
Total
|
|
13,443
|
|
$
463.7
|
|
12,791
|
|
$
406.9
|
|
|
|
|
|
|
|
|
|
|
|
|
NVR, Inc.
|
|
Operating Activity
(Continued)
|
|
(dollars in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2022
|
|
2021
|
|
|
Average active communities:
|
|
|
|
|
|
|
Mid
Atlantic (1)
|
|
151
|
|
159
|
|
|
North East (2)
|
|
34
|
|
35
|
|
|
Mid
East (3)
|
|
129
|
|
140
|
|
|
South East (4)
|
|
90
|
|
111
|
|
|
Total
|
|
404
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2022
|
|
2021
|
|
|
Homebuilding data:
|
|
|
|
|
|
|
New
order cancellation rate
|
|
10%
|
|
10%
|
|
|
Lots controlled at end of period
|
|
126,800
|
|
108,700
|
|
|
|
|
|
|
|
|
Mortgage banking data:
|
|
|
|
|
|
|
Loan closings
|
|
$
1,484,593
|
|
$
1,412,879
|
|
|
Capture rate
|
|
86%
|
|
89%
|
|
|
|
|
|
|
|
|
Common stock information:
|
|
|
|
|
|
|
Shares outstanding at end of period
|
|
3,314,835
|
|
3,639,609
|
|
|
Number of shares repurchased
|
|
146,054
|
|
86,523
|
|
|
Aggregate cost of shares repurchased
|
|
$
748,789
|
|
$
377,425
|
|
|
|
|
(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-first-quarter-results-301532400.html
SOURCE NVR, Inc.