nvr-20220426
0000906163FALSE00009061632022-04-262022-04-26

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 26, 2022

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)
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNVRNew York Stock Exchange
 
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 2.02 Results of Operations and Financial Condition.
On April 26, 2022, NVR, Inc. issued a press release reporting its financial results for the first quarter ended March 31, 2022. A copy of this press release is furnished herewith as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberExhibit Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



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 26, 2022By:/s/ Daniel D. Malzahn
Daniel D. Malzahn
Senior Vice President, Chief Financial Officer and Treasurer


Document

https://cdn.kscope.io/6ff688f19622cdd6278ac3cee0c8b540-image1.jpg
Exhibit 99.1
NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

April 26, 2022, 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, 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,”
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“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.
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NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
20222021
Homebuilding:
Revenues$2,309,227 $1,963,711 
Other income1,339 1,586 
Cost of sales(1,651,365)(1,577,453)
Selling, general and administrative(129,510)(121,419)
Operating income529,691 266,425 
Interest expense(12,804)(13,006)
Homebuilding income516,887 253,419 
Mortgage Banking:
Mortgage banking fees69,182 77,735 
Interest income2,074 2,032 
Other income1,072 867 
General and administrative(22,908)(21,656)
Interest expense(362)(391)
Mortgage banking income49,058 58,587 
Income before taxes565,945 312,006 
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 outstanding3,385 3,673 
Diluted weighted average shares outstanding3,656 3,935 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
March 31, 2022December 31, 2021
ASSETS
Homebuilding:
Cash and cash equivalents$2,138,706 $2,545,069 
Restricted cash65,562 60,730 
Receivables23,471 18,552 
Inventory:
Lots and housing units, covered under sales agreements with customers1,997,115 1,777,862 
Unsold lots and housing units142,015 127,434 
Land under development14,668 12,147 
Building materials and other39,841 29,923 
2,193,639 1,947,366 
Contract land deposits, net512,042 497,139 
Property, plant and equipment, net56,829 56,979 
Operating lease right-of-use assets59,819 59,010 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets220,675 229,018 
5,312,323 5,455,443 
Mortgage Banking:
Cash and cash equivalents19,157 28,398 
Restricted cash3,402 2,519 
Mortgage loans held for sale, net312,726 302,192 
Property and equipment, net3,386 3,658 
Operating lease right-of-use assets8,491 9,758 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets59,381 25,160 
413,890 379,032 
Total assets$5,726,213 $5,834,475 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
March 31, 2022December 31, 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$398,516 $336,560 
Accrued expenses and other liabilities501,091 435,860 
Customer deposits453,178 417,463 
Operating lease liabilities64,546 64,128 
Senior notes1,515,964 1,516,255 
2,933,295 2,770,266 
Mortgage Banking:
Accounts payable and other liabilities58,098 51,394 
Operating lease liabilities9,221 10,437 
67,319 61,831 
Total liabilities3,000,614 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, 2021206 206 
Additional paid-in capital2,416,660 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 liability16,710 16,710 
Retained earnings10,473,939 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' equity2,725,599 3,002,378 
Total liabilities and shareholders' equity$5,726,213 $5,834,475 

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NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended March 31,

20222021
UnitsAverage PriceUnitsAverage 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,
20222021
UnitsAverage PriceUnitsAverage 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,
20222021
UnitsAverage PriceUnitsAverage 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 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
20222021
Average active communities:
Mid Atlantic (1)
151159
North East (2)
3435
Mid East (3)
129140
South East (4)
90111
Total
404445
Three Months Ended March 31,
20222021
Homebuilding data:
New order cancellation rate
10 %10 %
Lots controlled at end of period
126,800108,700
Mortgage banking data:
Loan closings
$1,484,593$1,412,879
Capture rate
86 %89 %
Common stock information:
Shares outstanding at end of period
3,314,8353,639,609
Number of shares repurchased
146,05486,523
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
Investor Relations Contact:
Curt McKay
(703) 956-4058
ir@nvrinc.com

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