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UNITED STATES
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, 2019
 
NVR, Inc.
(Exact name of registrant as specified in its charter)
 
 
Virginia1-1237854-1394360
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
11700 Plaza America Drive, Suite 500
Reston, Virginia 20190
(Address of principal executive offices) (Zip Code)
 
(703) 956-4000
(Registrant’s telephone number, including area code)
 
Not applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing 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 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act. ☐



Item 2.02Results of Operations and Financial Condition.
On April 22, 2019, NVR, Inc. issued a press release reporting its financial results for the first quarter ended March 31, 2019. A copy of this press release is furnished herewith as Exhibit 99.1.
 
Item 9.01Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberExhibit Description
99.1 


SIGNATURE

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, 2019By:/s/ Daniel D. Malzahn
Daniel D. Malzahn
Senior Vice President, Chief Financial Officer and Treasurer


Document

https://cdn.kscope.io/ce864eace4322632831d60ea9e3bdaed-image1.jpg
Exhibit 99.1
NVR, INC. ANNOUNCES FIRST QUARTER RESULTS
April 22, 2019, 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, 2019 of $188,406,000, or $47.64 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2019 increased 13% and 21%, respectively, when compared to 2018 first quarter net income of $166,049,000, or $39.34 per diluted share. Consolidated revenues for the first quarter of 2019 totaled $1,687,011,000, a 10% increase from $1,529,414,000 in the first quarter of 2018.
Homebuilding
New orders in the first quarter of 2019 decreased by 1% to 5,139 units, when compared to 5,174 units in the first quarter of 2018. The average sales price of new orders in the first quarter of 2019 was $367,000, a decrease of 3% when compared with the first quarter of 2018. Settlements increased in the first quarter of 2019 to 4,493 units, which was 15% higher than the first quarter of 2018. The Company’s backlog of homes sold but not settled as of March 31, 2019 decreased on a unit basis by 8% to 9,011 units and decreased on a dollar basis by 9% to $3,395,132,000 when compared to March 31, 2018.
Homebuilding revenues in the first quarter of 2019 totaled $1,643,206,000, 10% higher than the year earlier period. Gross profit margin in the first quarter of 2019 decreased to 18.5%, compared to 18.7% in the first quarter of 2018. Income before tax from the homebuilding segment totaled $188,410,000 in the first quarter of 2019, an increase of 12% when compared to the first quarter of 2018.
Mortgage Banking
Mortgage closed loan production in the first quarter of 2019 totaled $1,140,999,000, an increase of 13% when compared to the first quarter of 2018. Income before tax from the mortgage banking segment totaled $30,197,000 in the first quarter of 2019, an increase of 35% when compared to $22,428,000 in the first quarter of 2018.
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-two 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: 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.
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NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)

Three Months Ended March 31,
20192018
Homebuilding:
Revenues$1,643,206 $1,490,093 
Other income5,737 1,977 
Cost of sales(1,338,806)(1,211,946)
Selling, general and administrative(115,734)(105,547)
Operating income194,403 174,577 
Interest expense(5,993)(6,007)
Homebuilding income188,410 168,570 
Mortgage Banking:
Mortgage banking fees43,805 39,321 
Interest income2,833 2,093 
Other income539 524 
General and administrative(16,758)(19,235)
Interest expense(222)(275)
Mortgage banking income30,197 22,428 
Income before taxes218,607 190,998 
Income tax expense(30,201)(24,949)
Net income$188,406 $166,049 
Basic earnings per share$52.23 $45.19 
Diluted earnings per share$47.64 $39.34 
Basic weighted average shares outstanding3,607 3,675 
Diluted weighted average shares outstanding3,955 4,220 



Page 2 of 5

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(Unaudited)
March 31, 2019December 31, 2018
ASSETS
Homebuilding:
Cash and cash equivalents$805,195 $688,783 
Restricted cash19,609 16,982 
Receivables30,488 18,641 
Inventory:
Lots and housing units, covered under sales agreements with customers1,101,147 1,076,904 
Unsold lots and housing units122,966 115,631 
Land under development37,781 38,857 
Building materials and other19,275 21,718 
1,281,169 1,253,110 
Contract land deposits, net389,332 396,177 
Property, plant and equipment, net43,269 42,234 
Operating lease right-of-use assets65,519 — 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets192,115 184,004 
2,868,276 2,641,511 
Mortgage Banking:
Cash and cash equivalents11,258 23,092 
Restricted cash4,337 3,071 
Mortgage loans held for sale, net422,557 458,324 
Property and equipment, net6,274 6,510 
Operating lease right-of-use assets12,370 — 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets30,352 26,078 
494,495 524,422 
Total assets$3,362,771 $3,165,933 
Page 3 of 5

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(Unaudited)
March 31, 2019December 31, 2018
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$283,119 $244,496 
Accrued expenses and other liabilities310,880 332,871 
Customer deposits142,634 138,246 
Operating lease liabilities72,965 — 
Senior notes597,836 597,681 
1,407,434 1,313,294 
Mortgage Banking:
Accounts payable and other liabilities43,327 44,077 
Operating lease liabilities13,234 — 
56,561 44,077 
Total liabilities1,463,995 1,357,371 
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, 2019 and December 31, 2018206 206 
Additional paid-in capital1,899,100 1,820,223 
Deferred compensation trust – 107,295 and 107,340 shares of NVR, Inc. common stock as of March 31, 2019 and December 31, 2018, respectively(16,912)(16,937)
Deferred compensation liability16,912 16,937 
Retained earnings7,219,739 7,031,333 
Less treasury stock at cost – 16,964,581 and 16,977,499 shares as of March 31, 2019 and December 31, 2018, respectively(7,220,269)(7,043,200)
Total shareholders' equity1,898,776 1,808,562 
Total liabilities and shareholders' equity$3,362,771 $3,165,933 
Page 4 of 5

NVR, Inc.
Operating Activity
(dollars in thousands)
(Unaudited)
Three Months Ended March 31,
20192018
Homebuilding data:
New orders (units)
Mid Atlantic (1)
2,444 2,503 
North East (2)
313 371 
Mid East (3)
1,214 1,296 
South East (4)
1,168 1,004 
Total
5,139 5,174 
Average new order price
$367.0 $378.2 
Settlements (units)
Mid Atlantic (1)
2,143 1,926 
North East (2)
303 301 
Mid East (3)
1,030 879 
South East (4)
1,017 790 
Total
4,493 3,896 
Average settlement price
$365.7 $382.4 
Backlog (units)
Mid Atlantic (1)
4,449 4,801 
North East (2)
573 752 
Mid East (3)
1,990 2,315 
South East (4)
1,999 1,941 
Total
9,011 9,809 
Average backlog price
$376.8 $381.7 
New order cancellation rate
14%  14%  
Community count (average)
449 485 
Lots controlled at end of period
98,300 91,300 
Mortgage banking data:
Loan closings
$1,140,999 $1,009,673 
Capture rate
88%  86%  
Common stock information:
Shares outstanding at end of period
3,590,749 3,618,744 
Number of shares repurchased
81,829 116,268 
Aggregate cost of shares repurchased
$216,499 $357,242 

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


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