nvr-20240130
0000906163FALSE00009061632024-01-302024-01-30

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):  January 30, 2024

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 January 30, 2024, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended December 31, 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: January 30, 2024By:/s/ Daniel D. Malzahn
Daniel D. Malzahn
Senior Vice President, Chief Financial Officer and Treasurer


Document

https://cdn.kscope.io/42d8f439856b5625e6ce449b2d71275d-image1.jpg
Exhibit 99.1
NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

January 30, 2024, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December 31, 2023 of $410.1 million, or $121.56 per diluted share. Net income and diluted earnings per share for the fourth quarter ended December 31, 2023 decreased 10% and 9%, respectively, when compared to 2022 fourth quarter net income of $454.8 million, or $133.44 per diluted share. Consolidated revenues for the fourth quarter of 2023 totaled $2.43 billion, which decreased 10% from $2.71 billion in the fourth quarter of 2022.
For the year ended December 31, 2023, consolidated revenues were $9.52 billion, a 10% decrease from $10.53 billion reported in 2022. Net income for the year ended December 31, 2023 was $1.59 billion, a decrease of 8% when compared to net income for the year ended December 31, 2022 of $1.73 billion. Diluted earnings per share for the year ended December 31, 2023 was $463.31, a decrease of 6% from $491.82 per diluted share for 2022.
Homebuilding
New orders in the fourth quarter of 2023 increased by 25% to 5,190 units, when compared to 4,153 units in the fourth quarter of 2022. The average sales price of new orders in the fourth quarter of 2023 was $450,900, a decrease of 2% when compared with the fourth quarter of 2022. The cancellation rate in the fourth quarter of 2023 was 13% compared to 18% in the fourth quarter of 2022. Settlements in the fourth quarter of 2023 decreased by 7% to 5,332 units, compared to 5,749 units in the fourth quarter of 2022. The average settlement price in the fourth quarter of 2023 was $447,600, a decrease of 4% when compared with the fourth quarter of 2022. Our backlog of homes sold but not settled as of December 31, 2023 increased on a unit basis by 12% to 10,229 units and increased on a dollar basis by 10% to $4.76 billion when compared to the respective backlog unit and dollar balances as of December 31, 2022.
Homebuilding revenues of $2.39 billion in the fourth quarter of 2023 decreased by 11% compared to homebuilding revenues of $2.67 billion in the fourth quarter of 2022. Gross profit margin in the fourth quarter of 2023 decreased to 24.1%, compared to 25.3% in the fourth quarter of 2022. Income before tax from the homebuilding segment totaled $454.3 million in the fourth quarter of 2023, a decrease of 17% when compared to the fourth quarter of 2022.
New orders for the year ended December 31, 2023 increased by 13% to 21,729 units, compared to 19,164 units in 2022. Settlements for the year ended December 31, 2023 decreased by 9% to 20,662 units, compared to 22,732 units settled in 2022. Homebuilding revenues for the year ended December 31, 2023 totaled $9.31 billion, a 10% decrease from 2022. Gross profit margin for the year ended December 31, 2023 decreased to 24.3%, compared to 25.8% in 2022. Income before tax for the homebuilding segment decreased 16% for the year ended December 31, 2023 to $1.80 billion, compared to $2.13 billion in 2022.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2023 totaled $1.50 billion, a decrease of 2% when compared to the fourth quarter of 2022. Income before tax from the mortgage banking segment totaled $29.7 million in the fourth quarter of 2023, an increase of 12% when compared to $26.4 million in the fourth quarter of 2022.
Mortgage closed loan production for the year ended December 31, 2023 decreased 9% to $5.74 billion. Income before tax from the mortgage banking segment for the year ended December 31, 2023 increased 9% to $132.8 million from $122.2 million in 2022.
Effective Tax Rate
Our effective tax rate for the three and twelve months ended December 31, 2023 was 15.3% and 17.5%, respectively, compared to 20.9% and 23.4% for the three and twelve months ended December 31, 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
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benefits from stock option exercises, which totaled $42.5 million and $153.6 million for the three and twelve months ended December 31, 2023, respectively, and $22.6 million and $50.3 million for the three and twelve months ended December 31, 2022, 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-six 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)


Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
(unaudited)(unaudited)(unaudited)
Homebuilding:
Revenues$2,387,094 $2,668,036 $9,314,605 $10,326,770 
Other income40,891 21,592 148,010 37,038 
Cost of sales(1,812,968)(1,993,722)(7,051,198)(7,662,271)
Selling, general and administrative(154,086)(140,995)(588,962)(532,353)
Operating income460,931 554,911 1,822,455 2,169,184 
Interest expense(6,618)(6,630)(26,875)(38,140)
Homebuilding income454,313 548,281 1,795,580 2,131,044 
Mortgage Banking:
Mortgage banking fees45,476 44,146 203,597 199,664 
Interest income4,779 3,570 16,687 11,853 
Other income1,189 1,294 4,449 4,963 
General and administrative(21,537)(22,300)(91,075)(92,946)
Interest expense(173)(269)(865)(1,384)
Mortgage banking income29,734 26,441 132,793 122,150 
Income before taxes484,047 574,722 1,928,373 2,253,194 
Income tax expense(73,972)(119,954)(336,762)(527,619)
Net income$410,075 $454,768 $1,591,611 $1,725,575 
Basic earnings per share$128.46 $141.82 $491.52 $525.20 
Diluted earnings per share$121.56 $133.44 $463.31 $491.82 
Basic weighted average shares outstanding3,192 3,207 3,238 3,286 
Diluted weighted average shares outstanding3,373 3,408 3,435 3,509 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31, 2023December 31, 2022
(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents$3,126,472 $2,503,424 
Restricted cash41,483 48,455 
Receivables29,000 20,842 
Inventory:
Lots and housing units, covered under sales agreements with customers1,674,686 1,554,955 
Unsold lots and housing units214,666 181,952 
Land under development36,895 27,100 
Building materials and other23,903 24,268 
1,950,150 1,788,275 
Contract land deposits, net576,551 496,080 
Property, plant and equipment, net63,716 57,950 
Operating lease right-of-use assets70,384 71,081 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Deferred tax assets, net148,005 143,585 
Other assets94,746 75,898 
6,142,087 5,247,170 
Mortgage Banking:
Cash and cash equivalents36,422 19,415 
Restricted cash11,067 2,974 
Mortgage loans held for sale, net222,560 316,806 
Property and equipment, net6,348 3,559 
Operating lease right-of-use assets23,541 16,011 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets152,385 47,691 
459,670 413,803 
Total assets$6,601,757 $5,660,973 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
December 31, 2023December 31, 2022
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$347,738 $334,016 
Accrued expenses and other liabilities413,043 437,234 
Customer deposits334,441 313,804 
Operating lease liabilities75,797 75,818 
Senior notes913,027 914,888 
2,084,046 2,075,760 
Mortgage Banking:
Accounts payable and other liabilities127,511 61,396 
Operating lease liabilities25,475 16,968 
152,986 78,364 
Total liabilities2,237,032 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 December 31, 2023 and December 31, 2022206 206 
Additional paid-in capital2,848,528 2,600,014 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both December 31, 2023 and December 31, 2022(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings13,365,025 11,773,414 
Less treasury stock at cost – 17,360,454 and 17,336,397 shares as of December 31, 2023 and December 31, 2022, respectively(11,849,034)(10,866,785)
Total shareholders' equity4,364,725 3,506,849 
Total liabilities and shareholders' equity$6,601,757 $5,660,973 

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

2023202220232022
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
New orders, net of cancellations:
Mid Atlantic (1)
2,029$500.9 1,836$525.0 8,434 $515.5 7,816 $526.6 
North East (2)
526$597.7 430$573.6 1,879 $573.2 1,679 $528.3 
Mid East (3)
942$412.2 741$381.8 4,514 $396.5 4,344 $400.5 
South East (4)
1,693$366.9 1,146$360.3 6,902 $366.4 5,325 $399.4 
Total
5,190$450.9 4,153$459.0 21,729 $448.4 19,164 $462.8 
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
Settlements:
Mid Atlantic (1)
2,008$519.5 2,153$526.6 8,032 $521.5 9,042 $527.1 
North East (2)
465$567.1 456$503.4 1,736 $546.2 1,763 $506.3 
Mid East (3)
1,126$391.3 1,484$400.5 4,391 $392.4 5,518 $389.1 
South East (4)
1,733$368.9 1,656$428.7 6,503 $377.2 6,409 $393.3 
Total
5,332$447.6 5,749$464.0 20,662 $450.7 22,732 $454.3 
As of December 31,
20232022
UnitsAverage PriceUnitsAverage Price
Backlog:
Mid Atlantic (1)
4,094$522.5 3,692$536.3 
North East (2)
1,028$602.0 885$553.9 
Mid East (3)
1,976$412.1 1,853$403.2 
South East (4)
3,131$378.4 2,732$405.7 
Total
10,229$465.0 9,162$472.2 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Average active communities:
Mid Atlantic (1)
167169166160
North East (2)
36373636
Mid East (3)
105127110126
South East (4)
1309511593
Total
438428427415
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Homebuilding data:
New order cancellation rate
13.0 %18.4 %12.8 %14.2 %
Lots controlled at end of period
141,500 131,900 
Mortgage banking data:
Loan closings
$1,496,003$1,524,665$5,736,532 $6,313,416 
Capture rate
88 %80 %87 %83 %
Common stock information:
Shares outstanding at end of period
3,194,876 3,218,933 
Number of shares repurchased
46,74828,504181,499 323,652 
Aggregate cost of shares repurchased
$286,428$116,165$1,081,815 $1,500,358 

(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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