-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DN0xliCIUW83DqqZYbBv5g99ef0qhP+nLFUEpQ9Vx0zym35cSvKx48fA+vjxNAor NH4TcbXjqr92MYtiOcUF0g== 0001144204-07-037518.txt : 20070720 0001144204-07-037518.hdr.sgml : 20070720 20070720133746 ACCESSION NUMBER: 0001144204-07-037518 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070720 DATE AS OF CHANGE: 20070720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NVR INC CENTRAL INDEX KEY: 0000906163 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 541394360 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12378 FILM NUMBER: 07991077 BUSINESS ADDRESS: STREET 1: 11700 PLAZA AMERICA DR. STREET 2: SUITE 500 CITY: RESTON STATE: VA ZIP: 20190 BUSINESS PHONE: 7039564000 MAIL ADDRESS: STREET 1: 11700 PLAZA AMERICA DR. CITY: RESTON STATE: VA ZIP: 20190 8-K 1 v081448_8-k.txt ================================================================================ 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): July 20, 2007 NVR, Inc. ----------------------------------------- (Exact name of registrant as specified in its charter) Virginia 1-12378 54-1394360 - -------------------------------------------------------------------------------- (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation or organization) Number) Identification No.) 11700 Plaza America Drive, Suite 500, Reston, Virginia 20190 ------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 703-956-4000 ------------------------------------------------------- (Former name or former address, if changed since last report) ================================================================================ Check the appropriate box below if the Form 8-K 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 240.133-4(c)) Item 2.02 Results of Operations and Financial Condition On July 20, 2007, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended June 30, 2007. A copy of this press release is furnished hereto as Exhibit 99.1. Item 9.01 Financial Statements and Exhibits (c) Exhibits Number Description ------ ----------- 99.1 Press release dated July 20, 2007. 2 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: July 20, 2007 By: /s/ Dennis M. Seremet ------------------------------ Name: Dennis M. Seremet Title: Vice President and Chief Financial Officer 3 INDEX TO EXHIBITS Exhibit Number Exhibit Description - -------------- ----------------------------------------------------- 99.1 Press release dated July 20, 2007. 4 EX-99.1 2 v081448_ex99-1.txt EX-99.1 NVR, INC. ANNOUNCES SECOND QUARTER RESULTS FOR IMMEDIATE RELEASE Contact: Dan Malzahn Office: (703) 956-4204 July 20, 2007, Reston, VA--NVR, Inc. (AMEX: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced that diluted earnings per share for its second quarter ended June 30, 2007 decreased 50% and net income decreased 52% when compared to the 2006 second quarter. Net income for the 2007 second quarter was $90,747,000, $14.14 per diluted share, compared to net income of $190,352,000, $28.08 per diluted share, for the same period of 2006. Consolidated revenues for the second quarter of 2007 totaled $1,316,668,000, a 25% decrease from $1,748,928,000 for the comparable 2006 quarter. Homebuilding ------------ New orders in the second quarter of 2007 decreased 11% to 3,745 units, when compared to 4,204 units in the second quarter of 2006. New order units and gross profit margins continue to be negatively impacted by high levels of new and existing home inventories, affordability issues and declining homebuyer confidence. The cancellation rate in the quarter ended June 30, 2007 was 16% compared to 13% in the second quarter of 2006 and 16% in the first quarter of 2007. The Washington, D.C. cancellation rate in the quarter was 21% compared to 21% in the second quarter of 2006 and 22% in the first quarter of 2007. Settlements decreased in the second quarter of 2007 to 3,463 units, 19% less than the same period of 2006. Homebuilding revenues for the three months ended June 30, 2007 totaled $1,297,140,000, 25% lower than the year earlier period. Income before tax from the homebuilding segment totaled $135,958,000 in the 2007 second quarter, a decrease of 54% when compared to the second quarter of the previous year. Gross profit margins decreased to 18.1% in the 2007 second quarter compared to 24.3% for the same period in 2006. The decline in gross profit margins was due to continued pricing pressure in many of our markets and land deposit impairments of approximately $55,000,000. These impairments lowered gross margins by 424 basis points and reduced diluted earnings per share by approximately $5.20 for the 2007 quarter. The Company's backlog of homes sold but not settled at the end of the 2007 quarter decreased on a unit basis by 11% to 7,887 units and 19% on a dollar basis to $3,085,939,000 when compared to the same period last year. For the six months ended June 30, 2007, consolidated revenues were $2,409,857,000, 18% lower than the $2,953,583,000 reported for the same period of 2006. Net income for the six months ended June 30, 2007 was $175,568,000, a decrease of 46% when compared to the six months ended June 30, 2006. Earnings per diluted share for the six months ended June 30, 2007 was $27.11, a decrease of 43% from $47.54 per diluted share for the comparable period of 2006. Mortgage Banking ---------------- Mortgage closed loan production of $849,430,000 for the three months ended June 30, 2007 was 24% lower than the same period last year. Sub-prime loans accounted for approximately 6% of our captured mortgage closed loan volume in the current quarter compared to 5% for the second quarter of 2006. Operating income for the mortgage banking operations during the second quarter of 2007 decreased 33% to $11,719,000, when compared to $17,486,000 reported for the same period of 2006. 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. 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. 2
NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, -------------------------------------------------------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Homebuilding: Revenues $1,297,140 $1,722,797 $2,372,250 $2,906,539 Other income 5,251 2,634 12,216 5,010 Cost of sales (1,061,937) (1,304,183) (1,915,347) (2,165,222) Selling, general and administrative (101,198) (119,551) (198,604) (233,557) -------------------------------------------------------------------------- Operating income 139,256 301,697 270,515 512,770 Interest expense (3,298) (6,105) (6,620) (11,632) -------------------------------------------------------------------------- Homebuilding income 135,958 295,592 263,895 501,138 -------------------------------------------------------------------------- Mortgage Banking: Mortgage banking fees 19,528 26,131 37,607 47,044 Interest income 1,030 1,791 2,337 3,250 Other income 276 383 460 614 General and administrative (8,954) (9,852) (18,277) (19,020) Interest expense (161) (967) (313) (1,921) -------------------------------------------------------------------------- Mortgage banking income 11,719 17,486 21,814 29,967 -------------------------------------------------------------------------- Income before taxes 147,677 313,078 285,709 531,105 Income tax expense (56,930) (122,726) (110,141) (208,193) -------------------------------------------------------------------------- Net income $90,747 $190,352 $175,568 $322,912 ========================================================================== Basic earnings per share $16.19 $33.27 $31.16 $57.06 ========================================================================== Diluted earnings per share $14.14 $28.08 $27.11 $47.54 ========================================================================== Basic average shares outstanding 5,606 5,722 5,634 5,659 ========================================================================== Diluted average shares outstanding 6,420 6,779 6,477 6,792 ==========================================================================
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NVR, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) June 30, 2007 December 31, 2006 ----------------------------------------- (unaudited) ASSETS Homebuilding: Cash and cash equivalents $571,522 $551,738 Receivables 13,474 12,213 Inventory: Lots and housing units, covered under sales agreements with customers 830,964 667,100 Unsold lots and housing units 46,839 58,248 Manufacturing materials and other 8,759 8,268 ----------------------------------------- 886,562 733,616 Contract land deposits 327,015 402,170 Assets not owned, consolidated per FIN 46R 199,246 276,419 Property, plant and equipment, net 35,798 40,430 Reorganization value in excess of amounts allocable to identifiable assets, net 41,580 41,580 Goodwill and other indefinite and definite life intangibles, net 11,849 11,936 Other assets 240,305 207,468 ----------------------------------------- 2,327,351 2,277,570 ----------------------------------------- Mortgage Banking: Cash and cash equivalents 2,560 4,381 Mortgage loans held for sale, net 158,882 178,444 Property and equipment, net 987 1,168 Reorganization value in excess of amounts allocable to identifiable assets, net 7,347 7,347 Other assets 6,154 4,898 ----------------------------------------- 175,930 196,238 ----------------------------------------- Total assets $2,503,281 $2,473,808 =========================================
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NVR, Inc. Consolidated Balance Sheets (Continued) (in thousands, except share and per share data) June 30, 2007 December 31, 2006 ----------------------------------------- (unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding: Accounts payable $272,688 $273,936 Accrued expenses and other liabilities 230,858 265,223 Liabilities related to assets not owned, consolidated per FIN 46R 172,054 244,805 Customer deposits 195,165 165,354 Other term debt 2,954 3,080 Senior notes 200,000 200,000 ----------------------------------------- 1,073,719 1,152,398 ----------------------------------------- Mortgage Banking: Accounts payable and other liabilities 13,818 15,784 Notes payable 136,124 153,552 ----------------------------------------- 149,942 169,336 ----------------------------------------- Total liabilities 1,223,661 1,321,734 ----------------------------------------- Commitments and contingencies Shareholders' equity: Common stock, $0.01 par value; 60,000,000 shares authorized; 20,592,640 shares issued for both June 30, 2007 and December 31, 2006 206 206 Additional paid-in capital 676,003 585,438 Deferred compensation trust - 516,004 and 547,911 shares of NVR, Inc. common stock for June 30, 2007 and December 31, 2006, respectively (75,599) (80,491) Deferred compensation liability 75,599 80,491 Retained earnings 3,371,608 3,196,040 Less treasury stock at cost - 14,984,212 and 15,075,113 shares for June 30, 2007 and December 31, 2006, respectively (2,768,197) (2,629,610) ----------------------------------------- Total shareholders' equity 1,279,620 1,152,074 ----------------------------------------- Total liabilities and shareholders' equity $2,503,281 $2,473,808 =========================================
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NVR, Inc. Operating Activity (unaudited) (dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, ------------------------------------ ------------------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Homebuilding data: New orders (units) Mid Atlantic (1) 1,803 1,978 3,724 3,612 North East (2) 345 404 762 855 Mid East (3) 923 1,079 1,953 2,007 South East (4) 674 743 1,223 1,363 -------------------------------------------------------------------------- Total 3,745 4,204 7,662 7,837 ========================================================================== Average new order price $363.9 $384.7 $368.2 $386.0 Settlements (units) Mid Atlantic (1) 1,720 2,145 3,072 3,720 North East (2) 324 454 573 756 Mid East (3) 839 1,028 1,411 1,640 South East (4) 580 670 1,107 1,167 -------------------------------------------------------------------------- Total 3,463 4,297 6,163 7,283 ========================================================================== Average settlement price $374.2 $400.3 $384.4 $398.5 Backlog (units) Mid Atlantic (1) 4,317 4,866 North East (2) 729 883 Mid East (3) 1,816 1,968 South East (4) 1,025 1,147 ------------------------------------- Total 7,887 8,864 ===================================== Average backlog price $391.3 $428.5 Community count (average) 516 618 522 598 Lots controlled at end of period 85,400 104,000 Mortgage banking data: Loan closings $849,430 $1,123,461 $1,564,469 $1,860,243 Capture rate 86% 87% 86% 86% Common stock information: Shares outstanding at end of period 5,608,428 5,750,939 Weighted average basic shares outstanding 5,606,000 5,722,000 5,634,000 5,659,000 Weighted average diluted shares outstanding 6,420,000 6,779,000 6,477,000 6,792,000 Number of shares repurchased 179,700 - 305,700 161,856 Aggregate cost of shares repurchased $123,263 - $209,613 $120,817
(1) Virginia, West Virginia, Maryland, and Delaware (2) New Jersey and eastern Pennsylvania (3) Kentucky, Michigan, New York, Ohio and western Pennsylvania (4) North Carolina, South Carolina and Tennessee 6 -----END PRIVACY-ENHANCED MESSAGE-----