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 Related Quotes
 Nvr Inc  7575   179.42  2.31%
 Enter Symbols: 
NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

RESTON, Va., April 23, 2024 /PRNewswire/ -- 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, 2024 of $394.3 million, or $116.41 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2024 increased 14% and 17%, respectively, when compared to 2023 first quarter net income of $344.4 million, or $99.89 per diluted share. Consolidated revenues for the first quarter of 2024 totaled $2.33 billion, which increased 7% from $2.18 billion in the first quarter of 2023.

Homebuilding

New orders in the first quarter of 2024 increased by 3% to 6,049 units, when compared to 5,888 units in the first quarter of 2023. The average sales price of new orders in the first quarter of 2024 was $454,300, an increase of 3% when compared with the first quarter of 2023. The cancellation rate in the first quarter of 2024 was 13% compared to 14% in the first quarter of 2023. Settlements in the first quarter of 2024 increased by 10% to 5,089 units, compared to 4,639 units in the first quarter of 2023. The average settlement price in the first quarter of 2024 was $449,200, a decrease of 2% from the first quarter of 2023. Our backlog of homes sold but not settled as of March 31, 2024 increased on a unit basis by 7% to 11,189 units and increased on a dollar basis by 9% to $5.22 billion when compared to the respective backlog unit and dollar balances as of March 31, 2023.

Homebuilding revenues of $2.29 billion in the first quarter of 2024 increased by 7% compared to homebuilding revenues of $2.13 billion in the first quarter of 2023. Gross profit margin in the first quarter of 2024 decreased slightly to 24.5%, compared to 24.6% in the first quarter of 2023. Income before tax from the homebuilding segment totaled $441.7 million in the first quarter of 2024, an increase of 9% when compared to the first quarter of 2023.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2024 totaled $1.38 billion, an increase of 11% when compared to the first quarter of 2023. Income before tax from the mortgage banking segment totaled $29.0 million in the first quarter of 2024, an increase of 3% when compared to $28.1 million in the first quarter of 2023.

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2024 was 16.2% compared to 20.6% for the three months ended March 31, 2023. The decrease in the effective tax rate in the first quarter of 2024 is primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $43.8 million and $23.2 million for the three months ended March 31, 2024 and March 31, 2023, 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 sixteen 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.

NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)








Three Months Ended March 31,




2024


2023








Homebuilding:






Revenues


$ 2,286,177


$ 2,131,333


Other income


40,866


32,946


Cost of sales


(1,726,213)


(1,607,910)


Selling, general and administrative


(152,503)


(143,618)


Operating income


448,327


412,751


Interest expense


(6,649)


(7,001)


Homebuilding income


441,678


405,750








Mortgage Banking:






Mortgage banking fees


47,286


46,944


Interest income


4,092


3,018


Other income


1,171


989


General and administrative


(23,358)


(22,634)


Interest expense


(177)


(257)


Mortgage banking income


29,014


28,060








Income before taxes


470,692


433,810


Income tax expense


(76,423)


(89,458)








Net income


$ 394,269


$ 344,352








Basic earnings per share


$ 123.76


$ 106.31








Diluted earnings per share


$ 116.41


$ 99.89








Basic weighted average shares outstanding


3,186


3,239








Diluted weighted average shares outstanding


3,387


3,447


NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)








March 31, 2024


December 31, 2023

ASSETS





Homebuilding:





Cash and cash equivalents


$ 2,841,354


$ 3,126,472

Restricted cash


44,099


41,483

Receivables


36,306


29,000

Inventory:





Lots and housing units, covered under sales agreements with customers


1,790,687


1,674,686

Unsold lots and housing units


245,262


214,666

Land under development


59,050


36,895

Building materials and other


22,035


23,903



2,117,034


1,950,150






Contract land deposits, net


609,407


576,551

Property, plant and equipment, net


63,095


63,716

Operating lease right-of-use assets


66,716


70,384

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


41,580


41,580

Other assets


249,390


242,751



6,068,981


6,142,087

Mortgage Banking:





Cash and cash equivalents


27,803


36,422

Restricted cash


11,537


11,067

Mortgage loans held for sale, net


332,510


222,560

Property and equipment, net


7,438


6,348

Operating lease right-of-use assets


22,008


23,541

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


7,347


7,347

Other assets


60,533


152,385



469,176


459,670

Total assets


$ 6,538,157


$ 6,601,757






NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

(unaudited)








March 31, 2024


December 31, 2023

LIABILITIES AND SHAREHOLDERS' EQUITY





Homebuilding:





Accounts payable


$ 391,591


$ 347,738

Accrued expenses and other liabilities


380,811


413,043

Customer deposits


355,331


334,441

Operating lease liabilities


72,052


75,797

Senior notes


912,554


913,027



2,112,339


2,084,046

Mortgage Banking:





Accounts payable and other liabilities


57,400


127,511

Operating lease liabilities


24,037


25,475



81,437


152,986

Total liabilities


2,193,776


2,237,032






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, 2024 and December 31, 2023


206


206

Additional paid-in capital


2,905,707


2,848,528

Deferred compensation trust - 106,697 shares of NVR, Inc. common stock as of
both March 31, 2024 and December 31, 2023


(16,710)


(16,710)

Deferred compensation liability


16,710


16,710

Retained earnings


13,759,294


13,365,025

Less treasury stock at cost - 17,387,705 and 17,360,454 shares as of March 31,
2024 and December 31, 2023, respectively


(12,320,826)


(11,849,034)

Total shareholders' equity


4,344,381


4,364,725

Total liabilities and shareholders' equity


$ 6,538,157


$ 6,601,757






NVR, Inc.

Operating Activity

(dollars in thousands)

(unaudited)













Three Months Ended March 31,




2024


2023




Units


Average
Price


Units


Average
Price


New orders, net of cancellations:










Mid Atlantic (1)


2,282


$ 515.4


2,235


$ 516.3


North East (2)


527


$ 612.6


442


$ 573.1


Mid East (3)


1,263


$ 409.9


1,317


$ 384.2


South East (4)


1,977


$ 369.9


1,894


$ 361.5


Total


6,049


$ 454.3


5,888


$ 441.2
























Three Months Ended March 31,




2024


2023




Units


Average
Price


Units


Average
Price


Settlements:










Mid Atlantic (1)


1,966


$ 517.5


1,795


$ 524.3


North East (2)


463


$ 552.2


363


$ 505.3


Mid East (3)


1,049


$ 397.5


989


$ 406.8


South East (4)


1,611


$ 370.0


1,492


$ 405.1


Total


5,089


$ 449.2


4,639


$ 459.4
























As of March 31,




2024


2023




Units


Average
Price


Units


Average
Price


Backlog:










Mid Atlantic (1)


4,410


$ 521.0


4,132


$ 530.6


North East (2)


1,092


$ 628.2


964


$ 580.8


Mid East (3)


2,190


$ 417.7


2,181


$ 390.1


South East (4)


3,497


$ 377.5


3,134


$ 379.3


Total


11,189


$ 466.4


10,411


$ 460.3













NVR, Inc.

Operating Activity (Continued)

(dollars in thousands)

(unaudited)









Three Months Ended March 31,




2024


2023


Average active communities:






Mid Atlantic (1)


157


162


North East (2)


34


37


Mid East (3)


100


113


South East (4)


136


101


Total


427


413
















Three Months Ended March 31,




2024


2023


Homebuilding data:






New order cancellation rate


13 %


14 %


Lots controlled at end of period


143,200


129,900








Mortgage banking data:






Loan closings


$ 1,378,009


$ 1,237,283


Capture rate


86 %


83 %








Common stock information:






Shares outstanding at end of period


3,167,625


3,241,750


Number of shares repurchased


66,858


21,174


Aggregate cost of shares repurchased


$ 496,936


$ 110,048








(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, Georgia and Kentucky

Cision src=https://c212.net/c/img/favicon.png?sn=PH94084&sd=2024-04-23 View original content:https://www.prnewswire.com/news-releases/nvr-inc-announces-first-quarter-results-302123807.html

SOURCE NVR, INC.

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