0001144204-11-041503.txt : 20110721 0001144204-11-041503.hdr.sgml : 20110721 20110721114717 ACCESSION NUMBER: 0001144204-11-041503 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110721 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110721 DATE AS OF CHANGE: 20110721 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: 11979144 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 v229180_8k.htm FORM 8-K Unassociated Document




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 21, 2011


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:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
o
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 21, 2011, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended June 30, 2011.  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 21, 2011.
 

 
 
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.



Date:  July 21, 2011
NVR, Inc.
     
 
By:
/s/ Dennis M. Seremet
 
Name:
Dennis M. Seremet
 
Title:
Senior Vice President and
   
Chief Financial Officer
 
 
 
3
 

 

INDEX TO EXHIBITS



Exhibit Number
  
Exhibit Description
     
99.1
  
Press release dated July 21, 2011.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
 EX-99.1 2 v229180_ex99-1.htm PRESS RELEASE DATED JULY 21, 2011

NVR, Inc. Announces Second Quarter Results

RESTON, Va., July 21, 2011 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2011 of $38,445,000, $6.48 per diluted share. Net income and diluted earnings per share for its second quarter ended June 30, 2011 decreased 46% and 42%, respectively, when compared to the 2010 second quarter. Consolidated revenues for the second quarter of 2011 totaled $695,881,000, a 28% decrease from $964,504,000 for the comparable 2010 quarter.

For the six months ended June 30, 2011, consolidated revenues were $1,210,385,000, 22% lower than the $1,554,718,000 reported for the same period of 2010. Net income for the six months ended June 30, 2011 was $53,619,000, a decrease of 48% when compared to the six months ended June 30, 2010. Diluted earnings per share for the six months ended June 30, 2011 was $8.98, a decrease of 44% from $16.15 per diluted share for the comparable period of 2010.

Homebuilding

New orders in the second quarter of 2011 decreased 4% to 2,468 units, when compared to 2,559 units in the second quarter of 2010. The cancellation rate in the second quarter of 2011 was 12.5% compared to 12.0% in the second quarter of 2010 and 12.3% in the first quarter of 2011. Settlements decreased in the second quarter of 2011 to 2,207 units, 34% lower than the same period of 2010. Homebuilding revenues for the three months ended June 30, 2011 totaled $682,663,000, 28% lower than the year earlier period. The original June 30, 2010 settlement deadline to qualify for the Federal homebuyer tax credit resulted in a surge in settlement activity in the year ago second quarter.

Gross profit margins decreased to 18.2% in the 2011 second quarter compared to 18.5% for the same period in 2010. Income before tax from the homebuilding segment totaled $57,092,000 in the 2011 second quarter, a decrease of 46% when compared to the second quarter of the previous year. The Company's backlog of homes sold but not settled at the end of the 2011 quarter increased on a unit basis by 5% to 3,946 units and on a dollar basis by 4% to $1,233,269,000 when compared to the same period last year.

Mortgage Banking

Mortgage closed loan production of $504,116,000 for the three months ended June 30, 2011 was 29% lower than the same period last year. Operating income for the mortgage banking operations during the second quarter of 2011 decreased 46% to $6,262,000, when compared to $11,686,000 reported for the same period of 2010.

About NVR

NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names, and operates in twenty-five metropolitan areas in fourteen states. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, www.foxridgehomes.com, and www.rymarc.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. 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, increased regulation of the mortgage banking industry, 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.

NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)





Three Months Ended June 30,


Six Months Ended June 30,




2011


2010


2011


2010

Homebuilding:









Revenues                                        

$  682,663


$  946,972


$  1,185,407


$  1,524,353


Other income

1,362


2,110


2,820


4,479


Cost of sales

(558,601)


(771,475)


(976,521)


(1,242,544)


Selling, general and administrative

(68,045)


(69,137)


(135,233)


(129,878)



Operating income

57,379


108,470


76,473


156,410


Interest expense

(287)


(1,897)


(509)


(4,068)



Homebuilding income

57,092


106,573


75,964


152,342











Mortgage Banking:









Mortgage banking fees

13,218


17,532


24,978


30,365


Interest income

1,085


1,492


2,200


2,248


Other income

121


233


160


399


General and administrative

(7,898)


(7,275)


(14,575)


(13,804)


Interest expense

(264)


(296)


(538)


(560)



Mortgage banking income

6,262


11,686


12,225


18,648











Income before taxes

63,354


118,259


88,189


170,990













Income tax expense

(24,909)


(46,983)


(34,570)


(67,627)











Net income

$    38,445


$    71,276


$       53,619


$     103,363











Basic earnings per share

$        6.65


$      11.64


$           9.24


$         16.96











Diluted earnings per share

$        6.48


$      11.13


$           8.98


$         16.15











Basic average shares outstanding

5,785


6,123


5,804


6,095











Diluted average shares outstanding

5,929


6,405


5,974


6,402













NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)






June 30,

2011


December 31,

2010

ASSETS



(unaudited)










Homebuilding:





Cash and cash equivalents

$         927,370


$               1,190,731


Receivables

7,871


6,948


Inventory:






Lots and housing units, covered under







sales agreements with customers

390,498


275,272



Unsold lots and housing units

58,071


70,542



Land under development

78,468


78,058



Manufacturing materials and other

8,142


7,457





535,179


431,329









Assets related to consolidated variable interest entity

23,022


22,371


Contract land deposits, net

129,202


100,786


Property, plant and equipment, net

23,530


19,523


Reorganization value in excess of amounts






allocable to identifiable assets, net

41,580


41,580


Other assets, net

285,292


243,005





1,973,046


2,056,273








Mortgage Banking:





Cash and cash equivalents

2,075


2,661


Mortgage loans held for sale, net

181,525


177,244


Property and equipment, net

1,081


950


Reorganization value in excess of amounts






allocable to identifiable assets, net

7,347


7,347


Other assets

10,601


15,586





202,629


203,788











Total assets

$      2,175,675


$               2,260,061










NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)





June 30,

2011


December 31,

2010

LIABILITIES AND SHAREHOLDERS' EQUITY

(unaudited)









Homebuilding:





Accounts payable

$        148,658


$                 115,578


Accrued expenses and other liabilities

184,615


237,052


Liabilities related to consolidated variable interest entity

1,242


500


Non-recourse debt related to consolidated variable






interest entity

6,535


7,592


Customer deposits

67,593


53,705


Other term debt

1,696


1,751




410,339


416,178







Mortgage Banking:





Accounts payable and other liabilities

24,891


13,171


Note payable

89,649


90,338




114,540


103,509









Total liabilities

524,879


519,687







Commitments and contingencies










Shareholders' equity:





Common stock, $0.01 par value; 60,000,000 shares






authorized; 20,556,198 and 20,557,913 shares






issued as of June 30, 2011 and December 31,






2010, respectively

206


206


Additional paid-in-capital

1,037,299


951,234


Deferred compensation trust – 152,964 and






158,894 shares of NVR, Inc. common






stock as of June 30, 2011 and December






31, 2010, respectively

(25,582)


(27,582)


Deferred compensation liability

25,582


27,582


Retained earnings

4,082,691


4,029,072


Less treasury stock at cost – 14,977,205 and






14,894,357 shares at June 30, 2011






and December 31, 2010, respectively

(3,469,400)


(3,240,138)



Total shareholders’ equity

1,650,796


1,740,374



   Total liabilities and shareholders’ equity

$     2,175,675


$              2,260,061





















NVR, Inc.

Operating Activity

(dollars in thousands)

(unaudited)






Three Months Ended June 30,


Six Months Ended June 30,





2011


2010


2011


2010












Homebuilding data:










New orders (units)











Mid Atlantic (1)


1,219


1,303


2,364


2,694



North East (2)


208


219


460


479



Mid East (3)


691


749


1,382


1,628



South East (4)


350


288


665


698



  Total


2,468


2,559


4,871


5,499













Average new order price


$            303.5


$            309.6


$            299.7


$            297.4













Settlements (units)











Mid Atlantic (1)


1,076


1,672


1,912


2,607



North East (2)


217


282


345


502



Mid East (3)


612


922


1,043


1,487



South East (4)


302


469


541


668



  Total


2,207


3,345


3,841


5,264













Average settlement price


$            309.2


$            283.0


$            308.5


$            289.5













Backlog (units)











Mid Atlantic (1)






2,047


1,950



North East (2)






347


302



Mid East (3)






1,069


1,101



South East (4)






483


413



  Total






3,946


3,766













Average backlog price






$            312.5


$            315.3













Community count (average)


386


373


383


366


Lots controlled at end of period






54,000


47,500












Mortgage banking data:










Loan closings


$        504,116


$        706,551


$        857,687


$     1,124,593


Capture rate


90%


90%


89%


90%












Common stock information:










Shares outstanding at end of period






5,578,993


5,924,548


Number of shares repurchased


326,017


261,973


411,477


261,973


Aggregate cost of shares repurchased


$        237,477


$        176,084


$        300,885


$        176,084











(1)  Virginia, West Virginia, Maryland and Delaware

(2)  New Jersey and eastern Pennsylvania

(3)  Kentucky, western Pennsylvania, New York, Ohio and Indiana

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





CONTACT: Dan Malzahn, +1-703-956-4204