SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): April 21, 2010
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NVR,
Inc.
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(Exact name of registrant as
specified in its charter)
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Virginia
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1-12378
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54-1394360
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(State or other jurisdiction
of incorporation or organization)
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(Commission
File
Number)
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(I.R.S.
Employer
Identification
No.)
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11700 Plaza America
Drive, Suite 500, Reston, Virginia 20190
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(Address of principal
executive offices) (Zip
Code)
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Registrant’s
telephone number, including area code: 703-956-4000
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(Former name or former
address, if changed since last report)
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Check the
appropriate box below if the Form 8-K is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR
240.133-4(c))
Item
2.02 Results of Operations
and Financial Condition
On April 21, 2010, NVR, Inc. issued a
press release reporting its financial results for the first quarter ended March
31, 2010. A copy of this press release is furnished hereto as Exhibit
99.1.
Item
9.01 Financial
Statements and Exhibits
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(c)
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Exhibits
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Number
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Description | |
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99.1
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Press
release dated April 21, 2010.
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2
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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NVR,
Inc.
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Date: April
21, 2010
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By:
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/s/ Dennis M. Seremet | |
| Name: | Dennis M. Seremet | ||
| Title: | Senior Vice President and Chief Financial Officer | ||
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INDEX
TO EXHIBITS
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Exhibit Number
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Exhibit Description
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99.1
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Press
release dated April 21,
2010.
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4
Exhibit
99.1
NVR,
INC. ANNOUNCES FIRST QUARTER RESULTS
April 21, 2010, Reston, VA—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,
2010 of $32,087,000, $5.01 per diluted share. Net income and diluted
earnings per share for its first quarter ended March 31, 2010 increased 78% and
66%, respectively, when compared to the 2009 first
quarter. Consolidated revenues for the first three months of 2010
totaled $590,214,000, a 6% increase from $558,599,000 for the comparable 2009
quarter.
Homebuilding
New
orders in the first quarter of 2010 increased 21% to 2,940 units, when compared
to 2,426 units in the first quarter of 2009. The cancellation rate in
the first quarter of 2010 was 9% compared to 15% in both the first and fourth
quarters of 2009. Settlements increased in the first quarter of 2010
to 1,919 units, 8% greater than the same period of 2009. The
Company’s backlog of homes sold but not settled at the end of the 2010 quarter
increased on a unit basis by 19% to 4,552 units from the same period last
year. On a dollar basis, backlog grew to $1,342,000,000, an increase
of 18% when compared to the same period last year.
Homebuilding
revenues for the three months ended March 31, 2010 totaled $577,381,000, 5%
greater than the year earlier period. Gross profit margins were 18.4%
in the 2010 first quarter compared to 15.6% for the same period in
2009. Income before tax from the homebuilding segment totaled
$45,769,000, an increase of 78% when compared to the first quarter of the
previous year.
Mortgage
Banking
Mortgage
closed loan production of $418,042,000 for the three months ended March 31, 2010
was 2% lower than the same period last year. Income before tax for
the mortgage banking operations during the first quarter of 2010 increased 44%
to $6,962,000, when compared to $4,848,000 reported for the same period of
2009.
Page 1 of
6
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. 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 variations thereof or
comparable terminology, or by discussion of strategies, each of which involves
risks and uncertainties. All statements other than those of
historical facts included herein, including those regarding market trends, NVR’s
financial position, business strategy, the outcome of pending litigation,
projected plans and objectives of management for future operations, are
forward-looking statements. 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,
general economic and business conditions (on both a national and regional
level), interest rate changes, access to suitable financing by NVR and by NVR’s
customers, 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 moratoria, governmental regulation, the
ability of NVR to integrate any acquired business, fluctuation and volatility of
stock and other financial markets, mortgage financing availability and other
factors over which NVR has little or no control. The Company has no
obligation to update such forward-looking statements.
Page 2 of
6
NVR,
Inc.
Consolidated
Statements of Income
(in
thousands, except per share data)
(Unaudited)
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Three
Months Ended March 31,
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2010
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2009
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Homebuilding:
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Revenues
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$ | 577,381 | $ | 548,329 | ||||
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Other
income
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2,369 | 2,539 | ||||||
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Cost
of sales
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(471,069 | ) | (462,630 | ) | ||||
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Selling,
general and administrative
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(60,741 | ) | (59,694 | ) | ||||
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Operating
income
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47,940 | 28,544 | ||||||
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Interest
expense
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(2,171 | ) | (2,774 | ) | ||||
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Homebuilding
income
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45,769 | 25,770 | ||||||
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Mortgage
Banking:
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Mortgage
banking fees
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12,833 | 10,270 | ||||||
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Interest
income
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756 | 584 | ||||||
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Other
income
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166 | 89 | ||||||
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General
and administrative
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(6,529 | ) | (5,758 | ) | ||||
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Interest
expense
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(264 | ) | (337 | ) | ||||
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Mortgage
banking income
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6,962 | 4,848 | ||||||
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Income
before taxes
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52,731 | 30,618 | ||||||
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Income
tax expense
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(20,644 | ) | (12,630 | ) | ||||
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Net
income
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$ | 32,087 | $ | 17,988 | ||||
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Basic
earnings per share
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$ | 5.29 | $ | 3.19 | ||||
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Diluted
earnings per share
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$ | 5.01 | $ | 3.02 | ||||
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Basic
average shares outstanding
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6,066 | 5,642 | ||||||
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Diluted
average shares outstanding
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6,399 | 5,958 | ||||||
Page 3 of
6
NVR,
Inc.
Consolidated
Balance Sheets
(in
thousands, except share and per share data)
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March 31, 2010
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December 31, 2009
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ASSETS
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(unaudited)
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Homebuilding:
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Cash
and cash equivalents
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$ | 1,340,978 | $ | 1,248,689 | ||||
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Marketable
securities
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125,000 | 219,535 | ||||||
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Receivables
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8,091 | 7,995 | ||||||
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Inventory:
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Lots
and housing units, covered under
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sales
agreements with customers
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430,944 | 337,523 | ||||||
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Unsold
lots and housing units
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62,964 | 73,673 | ||||||
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Manufacturing
materials and other
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6,001 | 7,522 | ||||||
| 499,909 | 418,718 | |||||||
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Assets
related to consolidated variable interest entities
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23,829 | 70,430 | ||||||
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Contract
land deposits, net
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63,630 | 49,906 | ||||||
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Property,
plant and equipment, net
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19,065 | 20,215 | ||||||
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Reorganization
value in excess of amounts
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allocable
to identifiable assets, net
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41,580 | 41,580 | ||||||
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Other
assets, net
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250,697 | 258,659 | ||||||
| 2,372,779 | 2,335,727 | |||||||
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Mortgage
Banking:
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Cash
and cash equivalents
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1,314 | 1,461 | ||||||
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Mortgage
loans held for sale, net
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83,385 | 40,097 | ||||||
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Property
and equipment, net
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739 | 446 | ||||||
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Reorganization
value in excess of amounts
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allocable
to identifiable assets, net
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7,347 | 7,347 | ||||||
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Other
assets
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10,833 | 10,692 | ||||||
| 103,618 | 60,043 | |||||||
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Total
assets
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$ | 2,476,397 | $ | 2,395,770 | ||||
(Continued)
Page 4 of
6
NVR,
Inc.
Consolidated
Balance Sheets (Continued)
(in
thousands, except share and per share data)
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March 31, 2010
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December 31, 2009
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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(unaudited)
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Homebuilding:
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Accounts
payable
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$ | 144,153 | $ | 120,464 | ||||
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Accrued
expenses and other liabilities
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184,194 | 221,352 | ||||||
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Liabilities
related to consolidated variable interest entities
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- | 65,915 | ||||||
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Customer
deposits
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72,261 | 63,591 | ||||||
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Other
term debt
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2,100 | 2,166 | ||||||
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Senior
notes
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133,370 | 133,370 | ||||||
| 536,078 | 606,858 | |||||||
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Mortgage
Banking:
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Accounts
payable and other liabilities
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15,346 | 19,306 | ||||||
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Note
payable
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56,249 | 12,344 | ||||||
| 71,595 | 31,650 | |||||||
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Total
liabilities
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607,673 | 638,508 | ||||||
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Commitments
and contingencies
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Shareholders'
equity:
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Common
stock, $0.01 par value; 60,000,000
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shares
authorized; 20,559,671 shares issued as
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of
both March 31, 2010 and December 31, 2009
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206 | 206 | ||||||
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Additional
paid-in-capital
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870,408 | 830,531 | ||||||
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Deferred
compensation trust – 245,278 and
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265,278
shares of NVR, Inc. common
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stock
as of March 31, 2010 and December
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31,
2009, respectively
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(39,856 | ) | (40,799 | ) | ||||
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Deferred
compensation liability
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39,856 | 40,799 | ||||||
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Retained
earnings
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3,855,154 | 3,823,067 | ||||||
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Less
treasury stock at cost – 14,410,336 and
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14,609,560
shares at March 31, 2010
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and
December 31, 2009, respectively
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(2,857,044 | ) | (2,896,542 | ) | ||||
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Total
shareholders’ equity
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1,868,724 | 1,757,262 | ||||||
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Total
liabilities and shareholders’ equity
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$ | 2,476,397 | $ | 2,395,770 | ||||
Page 5 of
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NVR,
Inc.
Operating
Activity
(unaudited)
(dollars
in thousands)
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Three
Months Ended March 31,
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2010
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2009
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Homebuilding
data:
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New
orders (units)
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Mid
Atlantic (1)
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1,391 | 1,203 | ||||||
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North
East (2)
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260 | 235 | ||||||
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Mid
East (3)
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879 | 701 | ||||||
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South
East (4)
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410 | 287 | ||||||
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Total
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2,940 | 2,426 | ||||||
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Average
new order price
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$ | 286.7 | $ | 281.9 | ||||
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Settlements
(units)
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Mid
Atlantic (1)
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935 | 928 | ||||||
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North
East (2)
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220 | 184 | ||||||
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Mid
East (3)
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565 | 413 | ||||||
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South
East (4)
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199 | 248 | ||||||
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Total
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1,919 | 1,773 | ||||||
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Average
settlement price
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$ | 300.8 | $ | 308.8 | ||||
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Backlog
(units)
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Mid
Atlantic (1)
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2,319 | 2,051 | ||||||
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North
East (2)
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365 | 354 | ||||||
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Mid
East (3)
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1,274 | 1,019 | ||||||
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South
East (4)
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594 | 393 | ||||||
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Total
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4,552 | 3,817 | ||||||
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Average
backlog price
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$ | 294.8 | $ | 298.5 | ||||
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Community
count (average)
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358 | 357 | ||||||
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Lots
controlled at end of period
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48,100 | 44,000 | ||||||
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Mortgage
banking data:
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Loan
closings
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$ | 418,042 | $ | 427,294 | ||||
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Capture
rate
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90 | % | 89 | % | ||||
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Common
stock information:
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Shares
outstanding at end of period
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6,149,335 | 5,726,454 | ||||||
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(1)
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Virginia,
West Virginia, Maryland and
Delaware
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(2)
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Eastern
Pennsylvania and New Jersey
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(3)
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Western
Pennsylvania, Kentucky, New York, Ohio and
Indiana
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(4)
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North
Carolina, South Carolina, Tennessee and
Florida
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CONTACT:
Dan Malzahn of NVR, Inc., +1-703-956-4204
Page 6 of
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