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 22, 2013
NVR, Inc.
(Exact name of registrant as specified in its charter)
| Virginia | 1-12378 | 54-1394360 | ||
| (State or other jurisdiction of | (Commission File | (I.R.S. Employer | ||
| incorporation or organization) | Number) | Identification No.) |
| 11700 Plaza America Drive, Suite 500, Reston, Virginia | 20190 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 703-956-4000
(Former name or former address, if changed since last report)
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:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ 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 22, 2013, NVR, Inc. issued a press release reporting its financial results for the first quarter ended March 31, 2013. A copy of this press release is furnished herewith as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
| (c) Exhibits | ||
| Number | Description | |
| 99.1 | Press release dated April 22, 2013. |
| 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: April 22, 2013 | By: | /s/ Daniel D. Malzahn |
| Name:
Daniel D. Malzahn Title: Vice President, Chief Financial Officer and Treasurer | ||
| 3 |
INDEX TO EXHIBITS
| Exhibit Number | Exhibit Description | |
| 99.1 | Press release dated April 22, 2013. |
| 4 |
NVR, Inc. Announces First Quarter Results
RESTON, Va., April 22, 2013 /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, 2013 of $35,041,000, or $6.84 per diluted share. Net income and diluted earnings per share for its first quarter ended March 31, 2013 increased 74% and 75%, respectively, when compared to the 2012 first quarter. Consolidated revenues for the first quarter of 2013 totaled $770,256,000, a 28% increase from $600,492,000 for the comparable 2012 quarter.
Homebuilding
New orders in the first quarter of 2013 increased 11% to 3,510 units, when compared to 3,157 units in the first quarter of 2012. The cancellation rate in the first quarter of 2013 was 13.2% compared to 10.3% in the first quarter of 2012 and 15.3% in the fourth quarter of 2012. Settlements increased in the first quarter of 2013 to 2,272 units, 18% higher than the first quarter of 2012. The Company's backlog of homes sold but not settled as of March 31, 2013 increased on a unit basis by 27% to 6,217 units and on a dollar basis by 39% to $2,179,566,000 when compared to March 31, 2012.
Homebuilding revenues for the three months ended March 31, 2013 totaled $750,868,000, 28% higher than the year earlier period. Gross profit margins increased to 16.9% in the 2013 first quarter compared to 16.1% for the same period in 2012. Income before tax from the homebuilding segment totaled $43,944,000 in the 2013 first quarter, an increase of 91% when compared to the first quarter of 2012.
Mortgage Banking
Mortgage closed loan production of $473,766,000 for the three months ended March 31, 2013 was 13% higher than the same period last year. Operating income for the mortgage banking operations during the first quarter of 2013 increased 40% to $11,161,000, when compared to $7,976,000 reported for the same period of 2012.
About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes trade names, and operates in twenty-seven metropolitan areas in fifteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, www.foxridgehomes.com and www.heartlandcustomhomes.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 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: 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, | ||
|
|
|
| 2013 |
| 2012 |
Homebuilding: |
|
|
| ||
|
| Revenues | $ 750,868 |
| $ 586,195 | |
|
| Other income | 1,026 |
| 908 | |
|
| Cost of sales | (624,085) |
| (491,829) | |
|
| Selling, general and administrative | (78,413) |
| (72,176) | |
|
|
| Operating income | 49,396 |
| 23,098 |
|
| Interest expense | (5,452) |
| (116) | |
|
|
| Homebuilding income | 43,944 |
| 22,982 |
|
|
|
|
|
|
|
Mortgage Banking: |
|
|
| ||
|
| Mortgage banking fees | 19,388 |
| 14,297 | |
|
| Interest income | 955 |
| 1,665 | |
|
| Other income | 113 |
| 76 | |
|
| General and administrative | (9,181) |
| (7,913) | |
|
| Interest expense | (114) |
| (149) | |
|
|
| Mortgage banking income | 11,161 |
| 7,976 |
|
|
|
|
|
|
|
Income before taxes | 55,105 |
| 30,958 | ||
|
|
|
|
|
|
|
|
|
| Income tax expense | (20,064) |
| (10,835) |
|
|
|
|
|
|
|
Net income | $ 35,041 |
| $ 20,123 | ||
|
|
|
|
|
|
|
Basic earnings per share | $ 7.04 |
| $ 3.99 | ||
|
|
|
|
|
|
|
Diluted earnings per share | $ 6.84 |
| $ 3.90 | ||
|
|
|
|
|
|
|
Basic weighted average shares outstanding | 4,979 |
| 5,044 | ||
|
|
|
|
|
|
|
Diluted weighted average shares outstanding | 5,122 |
| 5,159 | ||
|
|
|
|
|
|
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NVR, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except share and per share data) | |||||||
|
| |||||||
|
|
|
|
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| March 31, 2013 |
| December 31, 2012 |
ASSETS |
|
| (Unaudited) |
|
| ||
|
|
|
|
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|
|
|
|
Homebuilding: |
|
|
|
| |||
|
| Cash and cash equivalents |
| $ 1,082,792 |
| $ 1,139,103 | ||
|
| Receivables |
| 14,536 |
| 9,421 | ||
|
| Inventory: |
|
|
|
| ||
|
|
| Lots and housing units, covered under |
|
|
|
| |
|
|
|
| sales agreements with customers |
| 653,799 |
| 515,498 |
|
|
| Unsold lots and housing units |
| 79,639 |
| 81,932 | |
|
|
| Land under development |
| 96,233 |
| 68,336 | |
|
|
| Manufacturing materials and other |
| 12,179 |
| 12,365 | |
|
|
|
|
|
| 841,850 |
| 678,131 |
|
|
|
|
|
|
|
|
|
|
| Assets related to consolidated variable interest entity | 11,436 |
| 15,626 | |||
|
| Contract land deposits, net |
| 193,216 |
| 191,538 | ||
|
| Property, plant and equipment, net |
| 27,736 |
| 27,016 | ||
|
| Reorganization value in excess of amounts |
|
|
|
| ||
|
|
| allocable to identifiable assets, net |
| 41,580 |
| 41,580 | |
|
| Other assets, net |
| 297,344 |
| 279,855 | ||
|
|
|
|
|
| 2,510,490 |
| 2,382,270 |
|
|
|
|
|
|
|
|
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Mortgage Banking: |
|
|
|
| |||
|
| Cash and cash equivalents |
| 4,396 |
| 13,498 | ||
|
| Mortgage loans held for sale, net |
| 128,050 |
| 188,929 | ||
|
| Property and equipment, net |
| 2,833 |
| 2,465 | ||
|
| Reorganization value in excess of amounts |
|
|
|
| ||
|
|
| allocable to identifiable assets, net |
| 7,347 |
| 7,347 | |
|
| Other assets |
| 11,939 |
| 10,333 | ||
|
|
|
|
|
| 154,565 |
| 222,572 |
|
|
|
|
|
|
|
|
|
|
|
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| Total assets |
| $ 2,665,055 |
| $ 2,604,842 |
|
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NVR, Inc. | ||||||
Consolidated Balance Sheets (Continued) | ||||||
(in thousands, except share and per share data) | ||||||
|
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| March 31, 2013 |
| December 31, 2012 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
| (Unaudited) |
|
| ||
|
|
|
|
|
|
|
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Homebuilding: |
|
|
|
| ||
|
| Accounts payable |
| $ 170,129 |
| $ 163,446 | |
|
| Accrued expenses and other liabilities |
| 193,004 |
| 234,804 | |
|
| Liabilities related to consolidated variable interest entity | 2,175 |
| 2,180 | ||
|
| Non-recourse debt related to consolidated variable |
|
|
| ||
|
|
| interest entity |
| 2,539 |
| 4,574 |
|
| Customer deposits |
| 124,862 |
| 99,687 | |
|
| Senior notes |
| 599,010 |
| 598,988 | |
|
|
|
|
| 1,091,719 |
| 1,103,679 |
|
|
|
|
|
|
|
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Mortgage Banking: |
|
|
|
| ||
|
| Accounts payable and other liabilities |
| 21,244 |
| 20,686 | |
|
|
|
|
| 21,244 |
| 20,686 |
|
|
|
|
|
|
|
|
|
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| Total liabilities |
| 1,112,963 |
| 1,124,365 |
|
|
|
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|
|
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Commitments and contingencies |
|
|
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|
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Shareholders' equity: |
|
|
|
| ||
|
| Common stock, $0.01 par value; 60,000,000 shares |
|
|
|
| |
|
|
| authorized; 20,556,198 shares issued as of |
|
|
|
|
|
|
| both March 31, 2013 and December 31, 2012 |
| 206 |
| 206 |
|
| Additional paid-in-capital |
| 1,184,961 |
| 1,169,699 | |
|
| Deferred compensation trust – 109,623 and |
|
|
|
| |
|
|
| 152,223 shares of NVR, Inc. common |
|
|
|
|
|
|
| stock as of March 31, 2013 and |
|
|
|
|
|
|
| December 31, 2012, respectively |
| (17,864) |
| (25,331) |
|
| Deferred compensation liability |
| 17,864 |
| 25,331 | |
|
| Retained earnings |
| 4,374,121 |
| 4,339,080 | |
|
| Less treasury stock at cost – 15,559,314 and |
|
|
|
| |
|
|
| 15,642,068 shares at March 31, 2013 |
|
|
|
|
|
|
| and December 31, 2012, respectively |
| (4,007,196) |
| (4,028,508) |
|
|
| Total shareholders' equity |
| 1,552,092 |
| 1,480,477 |
|
|
| Total liabilities and shareholders' equity |
| $ 2,665,055 |
| $ 2,604,842 |
|
|
|
|
|
|
|
|
NVR, Inc. | |||||
Operating Activity | |||||
(dollars in thousands) | |||||
(Unaudited) | |||||
|
| |||||
|
|
|
| Three Months Ended March 31, | ||
|
|
|
| 2013 |
| 2012 |
|
|
|
|
|
|
|
Homebuilding data: |
|
|
| ||
|
| New orders (units) |
|
|
| |
|
|
| Mid Atlantic (1) | 1,716 |
| 1,663 |
|
|
| North East (2) | 293 |
| 259 |
|
|
| Mid East (3) | 949 |
| 798 |
|
|
| South East (4) | 552 |
| 437 |
|
|
| Total | 3,510 |
| 3,157 |
|
|
|
|
|
|
|
|
| Average new order price | $ 343.0 |
| $ 313.2 | |
|
|
|
|
|
|
|
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| Settlements (units) |
|
|
| |
|
|
| Mid Atlantic (1) | 1,138 |
| 1,006 |
|
|
| North East (2) | 191 |
| 169 |
|
|
| Mid East (3) | 593 |
| 448 |
|
|
| South East (4) | 350 |
| 301 |
|
|
| Total | 2,272 |
| 1,924 |
|
|
|
|
|
|
|
|
| Average settlement price | $ 330.4 |
| $ 304.6 | |
|
|
|
|
|
|
|
|
| Backlog (units) |
|
|
| |
|
|
| Mid Atlantic (1) | 3,261 |
| 2,630 |
|
|
| North East (2) | 535 |
| 466 |
|
|
| Mid East (3) | 1,508 |
| 1,157 |
|
|
| South East (4) | 913 |
| 656 |
|
|
| Total | 6,217 |
| 4,909 |
|
|
|
|
|
|
|
|
| Average backlog price | $ 350.6 |
| $ 318.5 | |
|
|
|
|
|
|
|
|
| Community count (average) | 435 |
| 387 | |
|
| Lots controlled at end of period | 59,700 |
| 53,000 | |
|
|
|
|
|
|
|
Mortgage banking data: |
|
|
| ||
|
| Loan closings | $ 473,766 |
| $ 420,184 | |
|
| Capture rate | 84% |
| 89% | |
|
|
|
|
|
|
|
Common stock information: |
|
|
| ||
|
| Shares outstanding at end of period | 4,996,884 |
| 5,066,030 | |
|
| Number of shares repurchased | - |
| - | |
|
| Aggregate cost of shares repurchased | $ - |
| $ - | |
|
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(1) | Virginia, West Virginia, Maryland, Delaware and Washington, D.C. |
(2) | New Jersey and eastern Pennsylvania |
(3) | New York, Ohio, western Pennsylvania, Indiana, Illinois and Kentucky |
(4) | North Carolina, South Carolina, Florida and Tennessee |
CONTACT: Dan Malzahn, Office: (703) 956-4204