FORM 8-K

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 16, 2004

 


 

NVR, Inc.

(Exact name of registrant as specified in its charter)

 


 

Virginia   1-12378   54-1394360

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(I.R.S. Employer

Identification Number)

 

7601 Lewinsville Road, Suite 300, McLean, Virginia   22102
(Address of principal executive offices)   (Zip code)

 

Registrant’s telephone number, including area code: 703-761-2000

 

(Former name or former address, if changed since last report)

 



Item 7(c). Exhibits

 

Exhibit
Number


 

Exhibit Description


99.1  

Press release dated April 16, 2004

 

Item 12. Results of Operations and Financial Condition.

 

On April 16, 2004, NVR, Inc. issued a press release reporting its financial results for the quarter ended March 31, 2004. A copy of this press release is furnished hereto as Exhibit 99.1.

 

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SIGNATURES

 

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 16, 2004

 

By:

 

/s/ Paul C. Saville


   

Name:

 

Paul C. Saville

   

Title:

 

Executive Vice President, Chief Financial Officer and Treasurer

 

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INDEX TO EXHIBITS

 

Exhibit 

 

Exhibit Description


   Page

99.1  

Press release dated April 16, 2004

   5

 

4

EXHIBIT 99.1

Exhibit 99.1

 

NVR, INC. ANNOUNCES A 25% INCREASE IN EARNINGS PER SHARE FOR THE FIRST QUARTER OF 2004

 

FOR IMMEDIATE RELEASE    CONTACT: Dan Malzahn
     OFFICE: 703-761-2137

 

April 16, 2004 – McLean, VA – NVR, Inc. (AMEX: NVR), one of the nation’s largest homebuilding and mortgage banking companies, today announced that diluted earnings per share for its first quarter ended March 31, 2004 exceeded the 2003 first quarter by 25% and net income increased 15%. Net income for the 2004 quarter was $100,617,000, $12.58 per diluted share, compared to net income of $87,806,000, $10.10 per diluted share, for the same period of 2003. Total revenues increased 18% to $878,561,000 for the quarter when compared to $743,574,000 for the same period of 2003.

 

Homebuilding revenues for the first three months of 2004 totaled $860,685,000, an increase of 19% over the same period of 2003. Income before tax from the homebuilding segment totaled $156,923,000, an increase of 20% when compared to the first quarter of the prior year. Gross profit margins for the three months ended March 31, 2004 were 25.3% compared to 25.4% for the 2003 first quarter. New orders for the first quarter of 2004 totaled 3,318 units, a 14% increase from the 2,907 units reported for the 2003 first quarter. Home settlements for the current quarter increased 8% to 2,709 units when compared to the same quarter of 2003. In addition, the Company’s backlog of homes sold but not settled at the end of the 2004 quarter increased on a unit basis by 11% to 7,499 units and 23% on a dollar basis to $2,605,120,000 when compared to the same period last year.

 

Closed loan production increased 2% to $523,339,000 during the March 2004 quarter when compared to the first quarter of 2003. Mortgage banking operating income totaled $10,772,000 for the first quarter of 2004, a decrease of 19% when compared to $13,368,000 reported for the same period of 2003. The reduction is primarily due to a shift in product mix from fixed rate mortgages to adjustable rate mortgages and brokered mortgages, both of which are generally less profitable than fixed rate mortgage products.


Due to the favorable backlog position at the beginning of the second quarter, the Company reiterated its full year 2004 guidance of approximately 15% growth in net income over 2003. The Company also stated that its stock repurchase program is continuing. During the first quarter of 2004, NVR repurchased approximately 257,000 shares of its common stock.

 

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 1993, as amended, and Section 21E of the Securities Exchange Act of 1934. 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 variations thereof or comparable terminology, or by discussion of strategies, each of which involves risks and uncertainties. All statements other than those of historical facts included herein, including those regarding market trends, NVR’s financial position, business strategy, projected plans and objectives of management for future operations, are forward-looking statements. 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, general economic and business conditions (on both a national and regional level), interest rate changes, access to suitable financing, 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 moratoria, governmental regulation, the ability of NVR to integrate any acquired business, fluctuation and volatility of stock and other financial markets and other factors over which NVR has little or no control. The Company has no obligation to update such forward-looking statements.

 

 

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NVR, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share and share data)

 

     March 31, 2004

   December 31, 2003

     (unaudited)     

ASSETS

             

Homebuilding:

             

Cash and cash equivalents

   $ 207,992    $ 228,589

Receivables

     19,860      9,550

Inventory:

             

Lots and housing units, covered under sales agreements with customers

     524,471      480,492

Unsold lots and housing units

     29,852      32,888

Manufacturing materials and other

     5,054      10,393
    

  

       559,377      523,773

Inventory not owned, consolidated per FIN 46

     55,556      12,807

Other assets not owned, consolidated per FIN 46

     5,074      —  

Property, plant and equipment, net

     24,186      24,531

Reorganization value in excess of amounts allocable to identifiable assets, net

     41,580      41,580

Goodwill, net

     6,379      6,379

Contract land deposits

     288,965      284,432

Other assets

     109,111      117,575
    

  

       1,318,080      1,249,216

Mortgage Banking:

             

Cash and cash equivalents

     3,306      3,630

Mortgage loans held for sale, net

     116,640      96,772

Mortgage servicing rights, net

     188      181

Property and equipment, net

     1,025      875

Reorganization value in excess of amounts allocable to identifiable assets, net

     7,347      7,347

Other assets

     3,051      5,084
    

  

       131,557      113,889
    

  

Total assets

   $ 1,449,637    $ 1,363,105
    

  

 

(Continued)

 

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NVR, Inc.

Condensed Consolidated Balance Sheets (Continued)

(in thousands, except per share and share data)

 

     March 31, 2004

    December 31, 2003

 
     (unaudited)        

LIABILITIES AND SHAREHOLDERS’ EQUITY

                

Homebuilding:

                

Accounts payable

   $ 179,620     $ 185,913  

Accrued expenses and other liabilities

     228,408       243,223  

Liabilities related to assets not owned, consolidated per FIN 46

     38,893       12,071  

Customer deposits

     180,042       157,005  

Other term debt

     4,428       4,519  

Senior notes

     200,000       200,000  
    


 


       831,391       802,731  
    


 


Mortgage Banking:

                

Accounts payable and other liabilities

     10,902       12,166  

Notes payable

     89,963       53,340  
    


 


       100,865       65,506  
    


 


Total liabilities

     932,256       868,237  
    


 


Commitments and contingencies

                

Shareholders’ equity:

                

Common stock, $0.01 par value; 60,000,000 shares authorized; 20,597,709 shares issued as of March 31, 2004 and December 31, 2003, respectively

     206       206  

Additional paid-in-capital

     357,556       335,346  

Deferred compensation trust –502,118 and 510,118 shares as of March 31, 2004 and December 31, 2003, respectively, of NVR, Inc. common stock

     (64,348 )     (64,725 )

Deferred compensation liability

     64,348       64,725  

Retained earnings

     1,488,482       1,387,865  

Less treasury stock at cost – 13,962,709 and 13,870,368 shares at March 31, 2004 and December 31, 2003, respectively

     (1,328,863 )     (1,228,549 )
    


 


Total shareholders’ equity

     517,381       494,868  
    


 


Total liabilities and shareholders’ equity

   $ 1,449,637     $ 1,363,105  
    


 


 

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NVR, Inc.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

    

Three Months Ended

March 31,


 
     2004

    2003

 

Homebuilding:

                

Revenues

   $ 860,685     $ 723,375  

Other income

     646       932  

Cost of sales

     (643,011 )     (539,437 )

Selling, general and administrative

     (58,482 )     (50,959 )
    


 


Operating income

     159,838       133,911  

Interest expense

     (2,915 )     (3,336 )
    


 


Homebuilding income

     156,923       130,575  
    


 


Mortgage Banking:

                

Mortgage banking fees

     16,108       17,756  

Interest income

     953       1,364  

Other income

     169       147  

General and administrative

     (6,212 )     (5,468 )

Interest expense

     (246 )     (431 )
    


 


Mortgage banking income

     10,772       13,368  
    


 


Income before taxes

     167,695       143,943  

Income tax expense

     (67,078 )     (56,137 )
    


 


Net income

   $ 100,617     $ 87,806  
    


 


Basic earnings per share

   $ 15.27     $ 12.41  
    


 


Diluted earnings per share

   $ 12.58     $ 10.10  
    


 


Basic average shares outstanding

     6,591       7,078  
    


 


Diluted average shares outstanding

     7,997       8,697  
    


 


 

 

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NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

 

    

Three Months Ended

March 31,


     2004

   2003

Homebuilding:

             

New orders (units)

             

Washington

     992      738

Baltimore

     431      401

North (1)

     1,262      1,136

South (2)

     633      632
    

  

Total

     3,318      2,907
    

  

Average new order price

   $ 343.6    $ 299.6

Settlements (units)

             

Washington

     713      827

Baltimore

     447      364

North (1)

     1,072      878

South (2)

     477      437
    

  

Total

     2,709      2,506
    

  

Average settlement price

   $ 317.0    $ 288.0

Backlog (units)

             

Washington

     2,562      2,145

Baltimore

     1,041      980

North (1)

     2,696      2,453

South (2)

     1,200      1,180
    

  

Total

     7,499      6,758
    

  

Average backlog price

   $ 347.4    $ 312.4

Mortgage Banking:

             

Mortgage closings (dollars)

   $ 523,339    $ 514,897

Common Stock Information:

             

Shares outstanding at end of period

     6,635,000      7,018,594

Weighted average basic shares outstanding

     6,591,000      7,078,000

Weighted average diluted shares outstanding

     7,997,000      8,697,000

Number of shares repurchased

     257,330      344,277

Aggregate cost of shares repurchased

   $ 113,937    $ 113,270

(1) Delaware, New Jersey, New York, Ohio and Pennsylvania
(2) North Carolina, South Carolina, Tennessee and Richmond, VA

 

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