News Release

View printer-friendly version << Back

NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

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

 

Cision View original content:https://www.prnewswire.com/news-releases/nvr-inc-announces-first-quarter-results-301532400.html

SOURCE NVR, Inc.

Investor Relations, Curt McKay, (703) 956-4058, ir@nvrinc.com