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0000906163FALSE00009061632023-10-242023-10-24

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):  October 24, 2023

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 October 24, 2023, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended September 30, 2023. 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: October 24, 2023By:/s/ Daniel D. Malzahn
Daniel D. Malzahn
Senior Vice President, Chief Financial Officer and Treasurer
Document

https://cdn.kscope.io/fef10a3514cd56bd00c55fdc6f1c5447-image1.jpg
Exhibit 99.1
NVR, INC. ANNOUNCES THIRD QUARTER RESULTS

October 24, 2023, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2023 of $433.2 million, or $125.26 per diluted share. Net income and diluted earnings per share for the third quarter ended September 30, 2023 increased 5% and 6%, respectively, when compared to 2022 third quarter net income of $411.4 million, or $118.51 per diluted share. Consolidated revenues for the third quarter of 2023 totaled $2.57 billion, which decreased 7% from $2.78 billion in the third quarter of 2022.
For the nine months ended September 30, 2023, consolidated revenues were $7.09 billion, a 9% decrease from $7.81 billion reported in 2022. Net income for the nine months ended September 30, 2023 was $1.18 billion, a decrease of 7% when compared to net income for the nine months ended September 30, 2022 of $1.27 billion. Diluted earnings per share for the nine months ended September 30, 2023 was $341.97, a decrease of 5% from $358.61 per diluted share for 2022.
Homebuilding
New orders in the third quarter of 2023 increased by 7% to 4,746 units, when compared to 4,421 units in the third quarter of 2022. The average sales price of new orders in the third quarter of 2023 was $456,100, an increase of 1% when compared with the third quarter of 2022. The cancellation rate in the third quarter of 2023 was 14% compared to 15% in the third quarter of 2022. Settlements in the third quarter of 2023 decreased by 6% to 5,606 units, compared to 5,949 units in the third quarter of 2022. The average settlement price in the third quarter of 2023 was $448,000, a decrease of 3% when compared with the third quarter of 2022. Our backlog of homes sold but not settled as of September 30, 2023 decreased on a unit basis by 4% to 10,371 units and decreased on a dollar basis by 6% to $4.80 billion when compared to the respective backlog unit and dollar balances as of September 30, 2022.
Homebuilding revenues of $2.51 billion in the third quarter of 2023 decreased by 8% compared to homebuilding revenues of $2.74 billion in the third quarter of 2022. Gross profit margin in the third quarter of 2023 increased to 24.3%, compared to 23.6% in the third quarter of 2022. Income before tax from the homebuilding segment totaled $500.8 million in the third quarter of 2023, a decrease of 4% when compared to the third quarter of 2022.
Mortgage Banking
Mortgage closed loan production in the third quarter of 2023 totaled $1.62 billion, a decrease of 2% when compared to the third quarter of 2022. Income before tax from the mortgage banking segment totaled $38.5 million in the third quarter of 2023, an increase of 119% when compared to $17.6 million in the third quarter of 2022. This increase was primarily attributable to an increase in secondary marketing gains on sales of loans.
Effective Tax Rate
Our effective tax rate for the three and nine months ended September 30, 2023 was 19.7% and 18.2%, respectively, compared to 23.6% and 24.3% for the three and nine months ended September 30, 2022, respectively. The decrease in the effective tax rate in each period is primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $31.9 million and $111.0 million for the three and nine months ended September 30, 2023, respectively, and $10.6 million and $27.7 million for the three and nine months ended September 30, 2022, respectively.
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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-five 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 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 and financial results, 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; the economic impact of a major epidemic or pandemic; 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 September 30,Nine Months Ended September 30,
2023202220232022
Homebuilding:
Revenues$2,512,409 $2,739,445 $6,927,511 $7,658,734 
Other income39,914 10,211 107,119 15,446 
Cost of sales(1,902,174)(2,092,457)(5,238,230)(5,668,549)
Selling, general and administrative(142,715)(129,416)(434,876)(391,358)
Operating income507,434 527,783 1,361,524 1,614,273 
Interest expense(6,628)(6,854)(20,257)(31,510)
Homebuilding income500,806 520,929 1,341,267 1,582,763 
Mortgage Banking:
Mortgage banking fees56,616 37,455 158,121 155,518 
Interest income5,067 3,437 11,908 8,283 
Other income1,169 1,294 3,260 3,669 
General and administrative(24,050)(24,252)(69,538)(70,646)
Interest expense(268)(348)(692)(1,115)
Mortgage banking income38,534 17,586 103,059 95,709 
Income before taxes539,340 538,515 1,444,326 1,678,472 
Income tax expense(106,183)(127,122)(262,790)(407,665)
Net income$433,157 $411,393 $1,181,536 $1,270,807 
Basic earnings per share$132.92 $125.97 $363.14 $383.68 
Diluted earnings per share$125.26 $118.51 $341.97 $358.61 
Basic weighted average shares outstanding3,259 3,266 3,254 3,312 
Diluted weighted average shares outstanding3,458 3,471 3,455 3,544 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
September 30, 2023December 31, 2022
ASSETS
Homebuilding:
Cash and cash equivalents$2,876,606 $2,503,424 
Restricted cash48,979 48,455 
Receivables33,878 20,842 
Inventory:
Lots and housing units, covered under sales agreements with customers1,723,838 1,554,955 
Unsold lots and housing units220,901 181,952 
Land under development41,238 27,100 
Building materials and other17,796 24,268 
2,003,773 1,788,275 
Contract land deposits, net530,170 496,080 
Property, plant and equipment, net58,743 57,950 
Operating lease right-of-use assets72,358 71,081 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets233,768 219,483 
5,899,855 5,247,170 
Mortgage Banking:
Cash and cash equivalents32,310 19,415 
Restricted cash12,099 2,974 
Mortgage loans held for sale, net325,792 316,806 
Property and equipment, net6,182 3,559 
Operating lease right-of-use assets24,595 16,011 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets64,083 47,691 
472,408 413,803 
Total assets$6,372,263 $5,660,973 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
September 30, 2023December 31, 2022
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$373,303 $334,016 
Accrued expenses and other liabilities386,299 437,234 
Customer deposits355,311 313,804 
Operating lease liabilities77,639 75,818 
Senior notes913,496 914,888 
2,106,048 2,075,760 
Mortgage Banking:
Accounts payable and other liabilities67,333 61,396 
Operating lease liabilities26,299 16,968 
93,632 78,364 
Total liabilities2,199,680 2,154,124 
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, 2023 and December 31, 2022206 206 
Additional paid-in capital2,801,027 2,600,014 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2023 and December 31, 2022(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings12,954,950 11,773,414 
Less treasury stock at cost – 17,345,353 and 17,336,397 shares as of September 30, 2023 and December 31, 2022, respectively(11,583,600)(10,866,785)
Total shareholders' equity4,172,583 3,506,849 
Total liabilities and shareholders' equity$6,372,263 $5,660,973 

5

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,

2023202220232022
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
New orders, net of cancellations:
Mid Atlantic (1)
1,822$526.2 1,813$516.2 6,405 $520.2 5,980 $527.1 
North East (2)
448$561.3 348$510.5 1,353 $563.7 1,249 $512.7 
Mid East (3)
916$407.2 955$406.7 3,572 $392.4 3,603 $404.4 
South East (4)
1,560$372.8 1,305$385.0 5,209 $366.3 4,179 $410.2 
Total
4,746$456.1 4,421$453.4 16,539 $447.7 15,011 $463.9 
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
Settlements:
Mid Atlantic (1)
2,199$521.2 2,417$530.6 6,024 $522.2 6,889 $527.3 
North East (2)
476$563.5 487$513.5 1,271 $538.6 1,307 $507.3 
Mid East (3)
1,209$387.5 1,468$388.3 3,265 $392.8 4,034 $384.8 
South East (4)
1,722$365.2 1,577$403.9 4,770 $380.2 4,753 $381.0 
Total
5,606$448.0 5,949$460.5 15,330 $451.8 16,983 $450.9 
As of September 30,
20232022
UnitsAverage PriceUnitsAverage Price
Backlog:
Mid Atlantic (1)
4,073$531.7 4,009$536.2 
North East (2)
967$587.5 911$519.1 
Mid East (3)
2,160$401.1 2,596$407.8 
South East (4)
3,171$379.3 3,242$433.5 
Total
10,371$463.1 10,758$472.8 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Average active communities:
Mid Atlantic (1)
167164166157
North East (2)
36373736
Mid East (3)
109126111126
South East (4)
1199611092
Total
431423424411
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Homebuilding data:
New order cancellation rate
13.6 %15.0 %12.7 %13.0 %
Lots controlled at end of period
133,900 131,400 
Mortgage banking data:
Loan closings
$1,621,599$1,656,187$4,240,529 $4,788,751 
Capture rate
89 %81 %86 %84 %
Common stock information:
Shares outstanding at end of period
3,209,977 3,211,977 
Number of shares repurchased
78,75088,016134,751 295,148 
Aggregate cost of shares repurchased
$484,262$368,490$795,387 $1,384,193 

(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

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