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):  October 21, 2009

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 October 21, 2009, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended September 30, 2009.  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 October 21, 2009.

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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:  October 21, 2009	By:	/s/ Dennis M. Seremet
	Name:	Dennis M. Seremet
	Title:	Senior Vice President and Chief Financial Officer

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INDEX TO EXHIBITS

Exhibit Number	Exhibit Description
99.1	Press release dated October 21, 2009.

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EX-99.1

NVR, INC. ANNOUNCES THIRD QUARTER RESULTS

FOR IMMEDIATE RELEASE	Contact:	Dan Malzahn
	Office:	(703) 956-4204

October 21, 2009, 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, 2009 of $72,127,000, $11.59 per diluted share.  Net income and diluted earnings per share for its third quarter ended September 30, 2009 increased 97% and 89%, respectively, compared to the 2008 third quarter.  Consolidated revenues for the third quarter of 2009 totaled $814,016,000, a 13% decrease from $939,211,000 for the comparable 2008 quarter.

For the nine months ended September 30, 2009, consolidated revenues were $1,998,046,000, 28% lower than the $2,782,865,000 reported for the same period of 2008.  Net income for the nine months ended September 30, 2009 was $131,541,000, compared to $131,349,000 for the nine months ended September 30, 2008.  Diluted earnings per share for the nine months ended September 30, 2009 was $21.57, a decrease of 3% from $22.21 per diluted share for the comparable period of 2008.

Homebuilding

New orders in the third quarter of 2009 increased 13% to 2,255 units, compared to 2,002 units in the third quarter of 2008.  The cancellation rate in the quarter ended September 30, 2009 was 14% compared to 24% in the third quarter of 2008 and 14% in the second quarter of 2009.  Settlements decreased in the third quarter of 2009 to 2,671 units, 3% less than the same period of 2008.  The Company’s backlog of homes sold but not settled at the end of the 2009 quarter decreased on a unit basis by 11% to 4,081 units and on a dollar basis by 19% to $1,210,447,000 as compared to the same period last year.

Homebuilding revenues for the three months ended September 30, 2009 totaled $792,510,000, 15% lower than the year earlier period.  Gross profit margins increased to 19.7% in the 2009 third quarter compared to 13.2% for the same period in 2008.  The third quarter 2008 gross profit margin results were negatively impacted by a $42,839,000 land deposit impairment charge.  Income before tax from homebuilding operations totaled $98,626,000 in the 2009 third quarter, an increase of 74% compared to the third quarter of the previous year.

Mortgage Banking

Mortgage closed loan production of $603,317,000 for the three months ended September 30, 2009 was 1% lower than the same period last year.  Operating income for the mortgage banking operations during the third quarter of 2009 increased to $14,814,000, compared to $4,072,000 reported for the same period of 2008.  Operating income in the current quarter was favorably impacted by an increase in unrealized income from the fair value measurement of locked loan commitments, forward mortgage-backed securities sales and closed loans held for sale, and by a decrease in incentives given to borrowers.

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, the outcome of pending litigation, 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 by NVR and by NVR’s customers, 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, mortgage financing availability 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.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Homebuilding:
Revenues	$	792,510		$	928,265		$	1,953,327		$	2,739,167
Other income		2,222			4,256			6,511			14,356
Cost of sales		(636,642	)		(805,931	)		(1,593,512	)		(2,305,231	)
Selling, general and administrative		(56,662	)		(66,796	)		(171,020	)		(240,833	)
Operating income		101,428			59,794			195,306			207,459
Interest expense		(2,802	)		(3,259	)		(8,038	)		(9,730	)
Homebuilding income		98,626			56,535			187,268			197,729
Mortgage Banking:
Mortgage banking fees		21,506			10,946			44,719			43,698
Interest income		887			929			2,082			2,608
Other income		215			188			458			531
General and administrative		(7,486	)		(7,761	)		(19,719	)		(23,823	)
Interest expense		(308	)		(230	)		(921	)		(544	)
Mortgage banking income		14,814			4,072			26,619			22,470
Income before taxes		113,440			60,607			213,887			220,199
Income tax expense		(41,313	)		(24,056	)		(82,346	)		(88,850	)
Net income	$	72,127		$	36,551		$	131,541		$	131,349
Basic earnings per share	$	12.29		$	6.72		$	22.83		$	24.60
Diluted earnings per share	$	11.59		$	6.12		$	21.57		$	22.21
Basic average shares outstanding		5,866			5,438			5,762			5,340
Diluted average shares outstanding		6,223			5,968			6,098			5,915

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NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

	September 30, 2009		December 31, 2008
	(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents	$	1,114,581	$	1,146,426
Marketable securities		259,406		-
Receivables		9,015		11,594
Inventory:
Lots and housing units, covered under
sales agreements with customers		415,104		335,238
Unsold lots and housing units		59,370		57,639
Manufacturing materials and other		4,365		7,693
		478,839		400,570
Contract land deposits, net		32,326		29,073
Consolidated assets not owned		57,461		114,930
Property, plant and equipment, net		20,624		25,658
Reorganization value in excess of
Amounts allocable to identifiable assets, net		41,580		41,580
Other assets, net		231,968		242,626
		2,245,800		2,012,457
Mortgage Banking:
Cash and cash equivalents		1,090		1,217
Mortgage loans held for sale, net		110,095		72,488
Property and equipment, net		544		759
Reorganization value in excess of
Amounts allocable to identifiable assets, net		7,347		7,347
Other assets		9,904		8,968
		128,980		90,779
Total assets	$	2,374,780	$	2,103,236

(Continued)

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NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

	September 30, 2009			December 31, 2008
	(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Homebuilding:
Accounts payable	$	150,304		$	137,285
Accrued expenses and other liabilities		198,106			194,869
Liabilities related to consolidated assets not owned		52,896			109,439
Customer deposits		66,819			59,623
Other term debt		2,294			2,530
Senior notes		133,370			163,320
		603,789			667,066
Mortgage Banking:
Accounts payable and other liabilities		23,797			17,842
Notes payable		75,607			44,539
		99,404			62,381
Total liabilities		703,193			729,447
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 60,000,000
shares authorized; 20,559,671 and 20,561,187
shares issued for September 30, 2009 and
December 31, 2008, respectively		206			206
Additional paid-in capital		810,132			722,265
Deferred compensation trust – 265,278 and
514,470 shares of NVR, Inc. common stock for
September 30, 2009 and December 31, 2008,
respectively		(40,799	)		(74,978	)
Deferred compensation liability		40,799			74,978
Retained earnings		3,762,428			3,630,887
Less treasury stock at cost – 14,632,950 and
15,028,335 shares for September 30, 2009 and
December 31, 2008, respectively		(2,901,179	)		(2,979,569	)
Total shareholders’ equity		1,671,587			1,373,789
Total liabilities and shareholders’ equity	$	2,374,780		$	2,103,236

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NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
Homebuilding data:
New orders (units):
Mid Atlantic (1)		1,199			965			3,823			3,598
North East (2)		222			205			703			725
Mid East (3)		560			577			2,007			2,020
South East (4)		274			255			876			1,060
Total		2,255			2,002			7,409			7,403
Average new order price	$	297.1		$	302.9		$	291.3		$	314.1
Settlements (units):
Mid Atlantic (1)		1,388			1,266			3,373			3,851
North East (2)		260			264			641			813
Mid East (3)		722			756			1,668			2,012
South East (4)		301			464			810			1,289
Total		2,671			2,750			6,492			7,965
Average settlement price	$	296.3		$	337.1		$	300.4		$	343.5
Backlog (units):
Mid Atlantic (1)								2,226			2,473
North East (2)								365			417
Mid East (3)								1,070			1,121
South East (4)								420			572
Total								4,081			4,583
Average backlog price							$	296.6		$	327.3
Community count (average)		354			426			356			437
Lots controlled at end of period								43,700			58,300
Mortgage banking data:
Loan closings	$	603,317		$	610,313		$	1,518,229		$	1,727,718
Capture rate		91	%		86	%		91	%		84	%
Common stock information:
Shares outstanding at end of period								5,926,721			5,452,247

(1) Virginia, West Virginia, Maryland and Delaware

(2) Eastern Pennsylvania and New Jersey

(3) Western Pennsylvania, Kentucky, New York and Ohio

(4) North Carolina, South Carolina, Florida and Tennessee

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