(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
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. |
Item 9.01 Financial Statements and Exhibits. | ||||||||
(d) Exhibits | ||||||||
Exhibit Number | Exhibit Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
NVR, Inc. | ||||||||
Date: October 25, 2022 | By: | /s/ Daniel D. Malzahn | ||||||
Daniel D. Malzahn | ||||||||
Senior Vice President, Chief Financial Officer and Treasurer |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Homebuilding: | ||||||||||||||||||||||||||
Revenues | $ | 2,739,445 | $ | 2,336,615 | $ | 7,658,734 | $ | 6,524,886 | ||||||||||||||||||
Other income | 10,211 | 1,496 | 15,446 | 4,714 | ||||||||||||||||||||||
Cost of sales | (2,092,457) | (1,817,939) | (5,668,549) | (5,117,065) | ||||||||||||||||||||||
Selling, general and administrative | (129,416) | (112,226) | (391,358) | (347,051) | ||||||||||||||||||||||
Operating income | 527,783 | 407,946 | 1,614,273 | 1,065,484 | ||||||||||||||||||||||
Interest expense | (6,854) | (12,838) | (31,510) | (38,694) | ||||||||||||||||||||||
Homebuilding income | 520,929 | 395,108 | 1,582,763 | 1,026,790 | ||||||||||||||||||||||
Mortgage Banking: | ||||||||||||||||||||||||||
Mortgage banking fees | 37,455 | 59,025 | 155,518 | 195,798 | ||||||||||||||||||||||
Interest income | 3,437 | 2,336 | 8,283 | 6,577 | ||||||||||||||||||||||
Other income | 1,294 | 1,022 | 3,669 | 2,877 | ||||||||||||||||||||||
General and administrative | (24,252) | (22,959) | (70,646) | (67,228) | ||||||||||||||||||||||
Interest expense | (348) | (405) | (1,115) | (1,216) | ||||||||||||||||||||||
Mortgage banking income | 17,586 | 39,019 | 95,709 | 136,808 | ||||||||||||||||||||||
Income before taxes | 538,515 | 434,127 | 1,678,472 | 1,163,598 | ||||||||||||||||||||||
Income tax expense | (127,122) | (102,046) | (407,665) | (261,460) | ||||||||||||||||||||||
Net income | $ | 411,393 | $ | 332,081 | $ | 1,270,807 | $ | 902,138 | ||||||||||||||||||
Basic earnings per share | $ | 125.97 | $ | 93.25 | $ | 383.68 | $ | 249.30 | ||||||||||||||||||
Diluted earnings per share | $ | 118.51 | $ | 86.44 | $ | 358.61 | $ | 231.75 | ||||||||||||||||||
Basic weighted average shares outstanding | 3,266 | 3,561 | 3,312 | 3,619 | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 3,471 | 3,842 | 3,544 | 3,893 |
NVR, Inc. | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||
Homebuilding: | ||||||||||||||
Cash and cash equivalents | $ | 1,748,506 | $ | 2,545,069 | ||||||||||
Restricted cash | 51,239 | 60,730 | ||||||||||||
Receivables | 28,378 | 18,552 | ||||||||||||
Inventory: | ||||||||||||||
Lots and housing units, covered under sales agreements with customers | 1,931,639 | 1,777,862 | ||||||||||||
Unsold lots and housing units | 194,882 | 127,434 | ||||||||||||
Land under development | 15,230 | 12,147 | ||||||||||||
Building materials and other | 28,698 | 29,923 | ||||||||||||
2,170,449 | 1,947,366 | |||||||||||||
Contract land deposits, net | 521,572 | 497,139 | ||||||||||||
Property, plant and equipment, net | 55,982 | 56,979 | ||||||||||||
Operating lease right-of-use assets | 69,933 | 59,010 | ||||||||||||
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 | ||||||||||||
Other assets | 230,255 | 229,018 | ||||||||||||
4,917,894 | 5,455,443 | |||||||||||||
Mortgage Banking: | ||||||||||||||
Cash and cash equivalents | 18,431 | 28,398 | ||||||||||||
Restricted cash | 2,924 | 2,519 | ||||||||||||
Mortgage loans held for sale, net | 316,094 | 302,192 | ||||||||||||
Property and equipment, net | 3,250 | 3,658 | ||||||||||||
Operating lease right-of-use assets | 14,534 | 9,758 | ||||||||||||
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 | ||||||||||||
Other assets | 109,060 | 25,160 | ||||||||||||
471,640 | 379,032 | |||||||||||||
Total assets | $ | 5,389,534 | $ | 5,834,475 | ||||||||||
NVR, Inc. | ||||||||||||||
Consolidated Balance Sheets (Continued) | ||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Homebuilding: | ||||||||||||||
Accounts payable | $ | 393,941 | $ | 336,560 | ||||||||||
Accrued expenses and other liabilities | 427,072 | 435,860 | ||||||||||||
Customer deposits | 376,160 | 417,463 | ||||||||||||
Operating lease liabilities | 74,670 | 64,128 | ||||||||||||
Senior notes | 915,346 | 1,516,255 | ||||||||||||
2,187,189 | 2,770,266 | |||||||||||||
Mortgage Banking: | ||||||||||||||
Accounts payable and other liabilities | 102,101 | 51,394 | ||||||||||||
Operating lease liabilities | 15,405 | 10,437 | ||||||||||||
117,506 | 61,831 | |||||||||||||
Total liabilities | 2,304,695 | 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 September 30, 2022 and December 31, 2021 | 206 | 206 | ||||||||||||
Additional paid-in capital | 2,538,812 | 2,378,191 | ||||||||||||
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2022 and December 31, 2021 | (16,710) | (16,710) | ||||||||||||
Deferred compensation liability | 16,710 | 16,710 | ||||||||||||
Retained earnings | 11,318,646 | 10,047,839 | ||||||||||||
Less treasury stock at cost – 17,343,353 and 17,107,889 shares as of September 30, 2022 and December 31, 2021, respectively | (10,772,825) | (9,423,858) | ||||||||||||
Total shareholders' equity | 3,084,839 | 3,002,378 | ||||||||||||
Total liabilities and shareholders' equity | $ | 5,389,534 | $ | 5,834,475 | ||||||||||
NVR, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Activity | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Units | Average Price | Units | Average Price | Units | Average Price | Units | Average Price | |||||||||||||||||||||||||||||||||||||||||||
New orders, net of cancellations: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mid Atlantic (1) | 1,813 | $ | 516.2 | 2,024 | $ | 523.7 | 5,980 | $ | 527.1 | 6,405 | $ | 519.8 | ||||||||||||||||||||||||||||||||||||||
North East (2) | 348 | $ | 510.5 | 403 | $ | 496.7 | 1,249 | $ | 512.7 | 1,237 | $ | 489.7 | ||||||||||||||||||||||||||||||||||||||
Mid East (3) | 955 | $ | 406.7 | 1,190 | $ | 376.8 | 3,603 | $ | 404.4 | 4,305 | $ | 365.4 | ||||||||||||||||||||||||||||||||||||||
South East (4) | 1,305 | $ | 385.0 | 1,584 | $ | 372.9 | 4,179 | $ | 410.2 | 5,089 | $ | 356.2 | ||||||||||||||||||||||||||||||||||||||
Total | 4,421 | $ | 453.4 | 5,201 | $ | 442.0 | 15,011 | $ | 463.9 | 17,036 | $ | 429.8 | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Units | Average Price | Units | Average Price | Units | Average Price | Units | Average Price | |||||||||||||||||||||||||||||||||||||||||||
Settlements: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mid Atlantic (1) | 2,417 | $ | 530.6 | 2,177 | $ | 497.3 | 6,889 | $ | 527.3 | 6,411 | $ | 478.4 | ||||||||||||||||||||||||||||||||||||||
North East (2) | 487 | $ | 513.5 | 455 | $ | 468.3 | 1,307 | $ | 507.3 | 1,260 | $ | 451.2 | ||||||||||||||||||||||||||||||||||||||
Mid East (3) | 1,468 | $ | 388.3 | 1,430 | $ | 351.8 | 4,034 | $ | 384.8 | 4,097 | $ | 343.2 | ||||||||||||||||||||||||||||||||||||||
South East (4) | 1,577 | $ | 403.9 | 1,621 | $ | 331.6 | 4,753 | $ | 381.0 | 4,672 | $ | 317.3 | ||||||||||||||||||||||||||||||||||||||
Total | 5,949 | $ | 460.5 | 5,683 | $ | 411.1 | 16,983 | $ | 450.9 | 16,440 | $ | 396.9 | ||||||||||||||||||||||||||||||||||||||
As of September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
Units | Average Price | Units | Average Price | ||||||||||||||||||||||||||
Backlog: | |||||||||||||||||||||||||||||
Mid Atlantic (1) | 4,009 | $ | 536.2 | 4,473 | $ | 530.3 | |||||||||||||||||||||||
North East (2) | 911 | $ | 519.1 | 927 | $ | 499.0 | |||||||||||||||||||||||
Mid East (3) | 2,596 | $ | 407.8 | 3,082 | $ | 375.4 | |||||||||||||||||||||||
South East (4) | 3,242 | $ | 433.5 | 3,663 | $ | 377.0 | |||||||||||||||||||||||
Total | 10,758 | $ | 472.8 | 12,145 | $ | 442.4 | |||||||||||||||||||||||
NVR, Inc. | ||||||||||||||||||||||||||
Operating Activity (Continued) | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Average active communities: | ||||||||||||||||||||||||||
Mid Atlantic (1) | 164 | 151 | 157 | 154 | ||||||||||||||||||||||
North East (2) | 37 | 34 | 36 | 34 | ||||||||||||||||||||||
Mid East (3) | 126 | 125 | 126 | 130 | ||||||||||||||||||||||
South East (4) | 96 | 104 | 92 | 108 | ||||||||||||||||||||||
Total | 423 | 414 | 411 | 426 | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Homebuilding data: | ||||||||||||||||||||||||||
New order cancellation rate | 15.0 | % | 9.2 | % | 13.0 | % | 9.1 | % | ||||||||||||||||||
Lots controlled at end of period | 131,400 | 118,600 | ||||||||||||||||||||||||
Mortgage banking data: | ||||||||||||||||||||||||||
Loan closings | $ | 1,656,187 | $ | 1,615,880 | $ | 4,788,751 | $ | 4,593,854 | ||||||||||||||||||
Capture rate | 81 | % | 88 | % | 84 | % | 89 | % | ||||||||||||||||||
Common stock information: | ||||||||||||||||||||||||||
Shares outstanding at end of period | 3,211,977 | 3,512,686 | ||||||||||||||||||||||||
Number of shares repurchased | 88,016 | 79,620 | 295,148 | 244,595 | ||||||||||||||||||||||
Aggregate cost of shares repurchased | $ | 368,490 | $ | 398,488 | $ | 1,384,193 | $ | 1,152,855 |
(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, Florida and Georgia | ||||
Investor Relations Contact: | |||||
Curt McKay | |||||
(703) 956-4058 | |||||
ir@nvrinc.com |