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): July 18, 2003
NVR, Inc.
(Exact name of registrant as specified in its charter)
| Virginia | 1-12378 | 54-1394360 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
7601 Lewinsville Road, Suite 300, McLean, Virginia 22102
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: 703-761-2000
(Former name or former address, if changed since last report)
| Item7(c). | Exhibits |
| Exhibit Number |
Exhibit Description | |
| 99.1 | Press release dated July 18, 2003 | |
| Item 9. | Regulation FD Disclosure. |
On July 18, 2003, NVR, Inc. issued a press release reporting its financial results for the quarter ended June 30, 2003. A copy of this press release is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is furnished pursuant to Item 12 of Form 8-K in accordance with U.S. Securities and Exchange Commission Release Nos. 33-8216 and 34-47583.
.
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.
| NVR, INC. | ||||||||
| Date: |
July 21, 2003 |
By: |
/s/ PAUL C. SAVILLE | |||||
| Name: |
Paul C. Saville | |||||||
| Title: |
Executive Vice President, Chief Financial Officer and Treasurer | |||||||
3
INDEX TO EXHIBITS
| Exhibit |
Exhibit Description |
Page | ||
| 99.1 | Press release dated July 18, 2003 |
5 | ||
4
Exhibit 99.1
NVR, INC. ANNOUNCES A 22% INCREASE IN EARNINGS PER SHARE FOR THE SECOND QUARTER OF 2003
| FOR IMMEDIATE RELEASE | CONTACT: Paul Columbus | |
| OFFICE: 703-761-2414 |
July 18, 2003 – McLean, VA – NVR, Inc. (AMEX: NVR), one of the nation’s largest homebuilding and mortgage banking companies, today announced that diluted earnings per share for its second quarter ended June 30, 2003 exceeded the 2002 second quarter by 22% and net income increased 13%. Net income for the 2003 second quarter was $95,092,000, $10.90 per diluted share, compared to net income of $83,830,000, $8.90 per diluted share, for the same period of 2002. Total revenues increased 8% to $848,501,000 for the quarter when compared to $788,439,000 for the same period of 2002. In addition, the Company reported that new orders increased 13% to 4,112 units for the second quarter of 2003 when compared to the second quarter of 2002. Backlog at the end of the period increased 19% to 8,017 units when compared to the same time last year. The dollar value of the backlog units totaled $2,556,321,000 at the end of the June 2003 quarter, a 31% increase from a year earlier.
Homebuilding revenues for the three months ended June 30, 2003, totaled $828,563,000, 8% higher than the year earlier period. Income before tax from the homebuilding segment totaled $141,780,000, an increase of 15% when compared to the second quarter of the previous year. Gross profit margins improved to 24.8% for the second quarter of 2003 when compared to 23.9% for the same quarter of 2002.
Operating income from the mortgage banking segment for the 2003 second quarter increased to $14,109,000, 28% higher than the same period of 2002. The Company also reported that closed loan production increased 8% during the June 2003 quarter when compared to the second quarter of 2002.
For the six months ended June 30, 2003, total revenues were $1,592,075,000, 8% higher than the $1,480,694,000 reported for the same period of 2002. Net income for the six months ended June 30, 2003, was $182,898,000, $20.99 per diluted share, compared to $160,543,000, $17.05 per diluted share, for the comparable period of 2002.
Because of the favorable backlog position at the beginning of the third quarter the Company has increased its full year 2003 guidance to 20% growth in net income when compared to 2002. The Company also stated that during the first six months of 2003 it had repurchased approximately 350,000 shares of its common stock.
5
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. All statements other than of historical facts included herein, including those regarding market trends, the Company’s financial position, business strategy, projected plans and objectives of management for future operations, mortgage banking operating income, new order trends, home settlement activity, average home prices, gross profit margins and other profitability measures, net income and earnings per share 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 the Company 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 conditions (on both a national and regional level), interest rate changes, access to suitable financing, competition, the availability and cost of land and other raw materials used by the Company in its homebuilding operations, shortages of labor, weather related slow downs, building moratoria, governmental regulation, the ability of the Company to integrate any acquired business, fluctuation and volatility of stock and other financial markets; and other factors over which the Company has little or no control. The Company has no obligation to update such forward-looking statements.
The Company continues to evaluate the balance sheet effect of adopting the requirements of Financial Accounting Standards Board Interpretation No. 46 (“FIN 46”), but has not completed its analysis. The Company has concluded that FIN 46 will have no effect on reported amounts for net income or earnings per share for any period presented herein.
6
NVR, Inc.
Condensed Consolidated Statements of Income
(amounts in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2003 |
2002 |
2003 |
2002 |
|||||||||||||
| Homebuilding: |
||||||||||||||||
| Revenues |
$ | 828,563 | $ | 769,910 | $ | 1,551,938 | $ | 1,444,892 | ||||||||
| Other income |
592 | 702 | 1,524 | 1,460 | ||||||||||||
| Cost of sales |
(623,210 | ) | (585,828 | ) | (1,162,647 | ) | (1,099,059 | ) | ||||||||
| Selling, general and administrative |
(60,440 | ) | (58,063 | ) | (111,399 | ) | (105,480 | ) | ||||||||
| Operating income |
145,505 | 126,721 | 279,416 | 241,813 | ||||||||||||
| Interest expense |
(3,725 | ) | (3,154 | ) | (7,061 | ) | (6,218 | ) | ||||||||
| Homebuilding income |
141,780 | 123,567 | 272,355 | 235,595 | ||||||||||||
| Mortgage Banking: |
||||||||||||||||
| Mortgage banking fees |
17,883 | 16,181 | 35,639 | 31,042 | ||||||||||||
| Interest income |
1,203 | 1,492 | 2,567 | 3,018 | ||||||||||||
| Other income |
260 | 154 | 407 | 282 | ||||||||||||
| General and administrative |
(4,859 | ) | (6,372 | ) | (10,327 | ) | (11,453 | ) | ||||||||
| Interest expense |
(378 | ) | (464 | ) | (809 | ) | (791 | ) | ||||||||
| Mortgage banking income |
14,109 | 10,991 | 27,477 | 22,098 | ||||||||||||
| Total segment income |
155,889 | 134,558 | 299,832 | 257,693 | ||||||||||||
| Income tax expense |
(60,797 | ) | (50,728 | ) | (116,934 | ) | (97,150 | ) | ||||||||
| Net Income |
$ | 95,092 | $ | 83,830 | $ | 182,898 | $ | 160,543 | ||||||||
| Basic earnings per share |
$ | 13.35 | $ | 11.42 | $ | 25.76 | $ | 21.79 | ||||||||
| Diluted earnings per share |
$ | 10.90 | $ | 8.90 | $ | 20.99 | $ | 17.05 | ||||||||
| Basic average shares outstanding |
7,124 | 7,341 | 7,101 | 7,369 | ||||||||||||
| Diluted average shares outstanding |
8,725 | 9,422 | 8,713 | 9,413 | ||||||||||||
7
NVR, Inc.
Selected Financial Data
(dollars in thousands)
| June 30, 2003 |
December 31, 2002 | |||||
| (unaudited) | ||||||
| Balance Sheet Data |
||||||
| Homebuilding: |
||||||
| Cash and cash equivalents |
$ | 390,179 | $ | 139,796 | ||
| Lots and housing units, covered under |
||||||
| sales agreements with customers |
$ | 502,614 | $ | 400,008 | ||
| Unsold lots and housing units |
$ | 26,257 | $ | 25,558 | ||
| Manufacturing materials and other |
$ | 7,417 | $ | 11,108 | ||
| 8% Senior notes due 2005 |
$ | 115,000 | $ | 115,000 | ||
| 5% Senior notes due 2010 |
$ | 200,000 | $ | — | ||
| Mortgage Banking: |
||||||
| Mortgage loans held for sale, net |
$ | 143,823 | $ | 163,410 | ||
| Notes payable |
$ | 114,652 | $ | 139,257 | ||
| Shareholders’ equity: |
||||||
| Total shareholders’ equity |
$ | 556,084 | $ | 403,245 | ||
8
NVR, Inc.
Operating Activity
(unaudited)
(dollars in thousands)
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
| 2003 |
2002 |
2003 |
2002 | |||||||||
| Homebuilding data: |
||||||||||||
| New orders (units) |
4,112 | 3,634 | 7,019 | 6,623 | ||||||||
| New orders (dollars) |
$ | 1,270,218 | $ | 1,024,691 | $ | 2,141,062 | $ | 1,885,648 | ||||
| Settlements (units) |
2,853 | 2,824 | 5,359 | 5,452 | ||||||||
| Backlog (units) |
8,017 | 6,729 | ||||||||||
| Backlog (dollars) |
$ | 2,556,321 | $ | 1,956,655 | ||||||||
| Mortgage banking data: |
||||||||||||
| Loan closings |
$ | 579,657 | $ | 536,031 | $ | 1,094,554 | $ | 1,013,768 | ||||
| Common stock information: |
||||||||||||
| Shares outstanding at end of period |
7,235,183 | 7,291,132 | ||||||||||
| Weighted average shares outstanding |
7,124,000 | 7,341,000 | 7,101,000 | 7,369,000 | ||||||||
| Diluted shares outstanding |
8,725,000 | 9,422,000 | 8,713,000 | 9,413,000 | ||||||||
9