RESTON, Va., July 21, 2015 /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, 2015 of $93,395,000 or $21.91 per diluted share. Net income and diluted earnings per share for its second quarter ended June 30, 2015 increased 37% and 44%, respectively, when compared to the 2014 second quarter. Consolidated revenues for the second quarter of 2015 totaled $1,243,633,000, a 13% increase from $1,102,054,000 for the comparable 2014 quarter.

For the six months ended June 30, 2015, consolidated revenues were $2,201,382,000, 15% higher than the $1,913,364,000 reported for the same period of 2014. Net income for the six months ended June 30, 2015 was $132,453,000, an increase of 44% when compared to the six months ended June 30, 2014. Diluted earnings per share for the six months ended June 30, 2015 was $31.17, an increase of 54% from $20.19 per diluted share for the comparable period of 2014.

Homebuilding

New orders in the second quarter of 2015 increased 11% to 3,796 units, when compared to 3,415 units in the second quarter of 2014. The average sales price of new orders increased to $378,300, a 3% increase from the second quarter of 2014. The cancellation rate in the second quarter of 2015 was 14%, compared to 13% in the second quarter of 2014. Settlements increased in the second quarter of 2015 to 3,175 units, 8% higher than the second quarter of 2014. The Company's backlog of homes sold but not settled as of June 30, 2015 increased on a unit basis by 15% to 7,488 units and increased on a dollar basis by 17% to $2,854,613,000 when compared to June 30, 2014.

Homebuilding revenues for the three months ended June 30, 2015 totaled $1,221,111,000, 13% higher than the year earlier period. Gross profit margin increased to 19.2% in the 2015 second quarter compared to 18.6% for the same period in 2014. Income before tax from the homebuilding segment totaled $137,248,000 in the second quarter of 2015, an increase of 34% when compared to the second quarter of 2014.

Mortgage Banking

Mortgage closed loan production of $859,403,000 for the three months ended June 30, 2015 increased by 27% when compared to the three months ended June 30, 2014. Operating income for the mortgage banking operations during the second quarter of 2015 was $11,436,000, compared to $6,246,000 reported for the second quarter of 2014. Operating income in the second quarter of 2015 was favorably impacted by an increase in capture rate to 89%, compared to 82% in the second quarter of 2014, and improved leveraging of general and administrative expenses.

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, Fox Ridge Homes and Heartland Homes trade names, and operates in twenty-eight metropolitan areas in fourteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com, www.foxridgehomes.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, 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; 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 June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
*Homebuilding:*
Revenues	$	1,221,111	$	1,084,080	$	2,162,649	$	1,883,267
Other income		1,122		452		1,847		1,449
Cost of sales		(986,854)		(882,778)		(1,768,522)		(1,537,930)
Selling, general and administrative		(92,314)		(93,583)		(190,543)		(184,215)
Operating income		143,065		108,171		205,431		162,571
Interest expense		(5,817)		(5,593)		(11,599)		(11,277)
Homebuilding income		137,248		102,578		193,832		151,294

*Mortgage Banking:*
Mortgage banking fees		22,522		17,974		38,733		30,097
Interest income		1,303		825		2,381		2,009
Other income		243		194		348		253
General and administrative		(12,493)		(12,617)		(23,972)		(24,882)
Interest expense		(139)		(130)		(275)		(240)
Mortgage banking income		11,436		6,246		17,215		7,237

*Income before taxes*		148,684		108,824		211,047		158,531
Income tax expense		(55,289)		(40,646)		(78,594)		(66,504)

*Net income*	$	93,395	$	68,178	$	132,453	$	92,027

*Basic earnings per share*	$	22.97	$	15.68	$	32.61	$	20.88

*Diluted earnings per share*	$	21.91	$	15.17	$	31.17	$	20.19

*Basic weighted average shares outstanding*		4,066		4,349		4,062		4,408

*Diluted weighted average shares outstanding*		4,262		4,495		4,249		4,557

NVR, Inc. Consolidated Balance Sheets (in thousands, except share and per share data)

	June 30, 2015		December 31, 2014
	(Unaudited)
ASSETS

*Homebuilding:*
Cash and cash equivalents	$	476,493	$	514,780
Receivables		15,987		10,021
Inventory:
Lots and housing units, covered under
sales agreements with customers		943,970		690,955
Unsold lots and housing units		104,484		131,938
Land under development		25,554		33,689
Building materials and other		11,083		12,904
		1,085,091		869,486

Assets related to consolidated variable interest entity		2,902		3,590
Contract land deposits, net		301,848		294,676
Property, plant and equipment, net		45,071		46,242
Reorganization value in excess of amounts
allocable to identifiable assets, net		41,580		41,580
Goodwill and finite-lived intangible assets, net		4,673		5,364
Other assets		303,435		302,280
		2,277,080		2,088,019

*Mortgage Banking:*
Cash and cash equivalents		19,238		30,158
Mortgage loans held for sale, net		265,418		205,664
Property and equipment, net		5,675		6,189
Reorganization value in excess of amounts		7,347		7,347
allocable to identifiable assets, net
Other assets		21,477		13,958
		319,155		263,316

Total assets	$	2,596,235	$	2,351,335

LIABILITIES AND SHAREHOLDERS' EQUITY

*Homebuilding:*
Accounts payable	$	256,521	$	204,622
Accrued expenses and other liabilities		299,553		289,058
Liabilities related to consolidated variable interest entity		1,652		1,618
Non-recourse debt related to consolidated
variable interest entity		—		64
Customer deposits		138,383		106,755
Senior notes		599,213		599,166
		1,295,322		1,201,283

*Mortgage Banking:*
Accounts payable and other liabilities		26,032		25,797
		26,032		25,797

Total liabilities		1,321,354		1,227,080

*Commitments and contingencies*

*Shareholders' equity:*
Common stock, $0.01 par value; 60,000,000 shares
authorized; 20,555,330 shares issued as of
both June 30, 2015 and December 31, 2014	206		206
Additional paid-in capital		1,389,725		1,325,495
Deferred compensation trust – 108,614 shares of
NVR, Inc. common stock as of both
June 30, 2015 and December 31, 2014		(17,333)		(17,333)
Deferred compensation liability		17,333		17,333
Retained earnings		5,019,640		4,887,187
Less treasury stock at cost – 16,486,160 and
16,506,229 shares at June 30, 2015 and
December 31, 2014, respectively		(5,134,690)		(5,088,633)
Total shareholders' equity		1,274,881		1,124,255
Total liabilities and shareholders' equity	$	2,596,235	$	2,351,335

NVR, Inc. Operating Activity (dollars in thousands) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
*Homebuilding data:*
New orders (units)
Mid Atlantic (1)		1,910			1,751			3,858			3,426
North East (2)		295			288			632			586
Mid East (3)		962			825			1,956			1,716
South East (4)		629			551			1,276			1,012
Total		3,796			3,415			7,722			6,740

Average new order price	$	378.3		$	368.0		$	376.8		$	368.0

Settlements (units)
Mid Atlantic (1)		1,679			1,547			2,975			2,671
North East (2)		323			271			562			504
Mid East (3)		674			707			1,256			1,185
South East (4)		499			418			916			794
Total		3,175			2,943			5,709			5,154

Average settlement price	$	384.4		$	368.2		$	378.5		$	365.3

Backlog (units)
Mid Atlantic (1)								3,829			3,465
North East (2)								658			577
Mid East (3)								1,850			1,563
South East (4)								1,151			926
Total								7,488			6,531

Average backlog price							$	381.2		$	374.1

Community count (average)		476			494			475			487
Lots controlled at end of period								70,600			67,500

*Mortgage banking data:*
Loan closings	$	859,403		$	675,625		$	1,498,029		$	1,148,557
Capture rate		89	%		82	%		88	%		80	%

*Common stock information:*
Shares outstanding at end of period								4,069,170			4,213,174
Number of shares repurchased		4,705			285,362			55,031			317,739
Aggregate cost of shares repurchased	$	6,186		$	314,870		$	69,285		$	347,448


(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 and Florida

CONTACT: Curt McKay, Office: (703) 956-4058