RESTON, Virginia
,
October 24, 2023
(press release)
–
For the nine months ended
Homebuilding New orders in the third quarter of 2023 increased by 7% to 4,746 units, when compared to 4,421 units in the third quarter of 2022. The average sales price of new orders in the third quarter of 2023 was
Homebuilding revenues of
Mortgage Banking Mortgage closed loan production in the third quarter of 2023 totaled
Effective Tax Rate Our effective tax rate for the three and nine months ended
About NVR
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.
Consolidated Statements of Income (in thousands, except per share data) (unaudited) Three Months Ended
Nine Months Ended
2023 2022 2023 2022 Homebuilding: Revenues $ 2,512,409 $ 2,739,445 $ 6,927,511 $ 7,658,734 Other income 39,914 10,211 107,119 15,446 Cost of sales (1,902,174) (2,092,457) (5,238,230) (5,668,549) Selling, general and administrative (142,715) (129,416) (434,876) (391,358) Operating income 507,434 527,783 1,361,524 1,614,273 Interest expense (6,628) (6,854) (20,257) (31,510) Homebuilding income 500,806 520,929 1,341,267 1,582,763 Mortgage Banking: Mortgage banking fees 56,616 37,455 158,121 155,518 Interest income 5,067 3,437 11,908 8,283 Other income 1,169 1,294 3,260 3,669 General and administrative (24,050) (24,252) (69,538) (70,646) Interest expense (268) (348) (692) (1,115) Mortgage banking income 38,534 17,586 103,059 95,709 Income before taxes 539,340 538,515 1,444,326 1,678,472 Income tax expense (106,183) (127,122) (262,790) (407,665) Net income $ 433,157 $ 411,393 $ 1,181,536 $ 1,270,807 Basic earnings per share $ 132.92 $ 125.97 $ 363.14 $ 383.68 Diluted earnings per share $ 125.26 $ 118.51 $ 341.97 $ 358.61 Basic weighted average shares outstanding 3,259 3,266 3,254 3,312 Diluted weighted average shares outstanding 3,458 3,471 3,455 3,544
Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited)
ASSETS Homebuilding: Cash and cash equivalents $ 2,876,606 $ 2,503,424 Restricted cash 48,979 48,455 Receivables 33,878 20,842 Inventory: Lots and housing units, covered under sales agreements with customers 1,723,838 1,554,955 Unsold lots and housing units 220,901 181,952 Land under development 41,238 27,100 Building materials and other 17,796 24,268 2,003,773 1,788,275 Contract land deposits, net 530,170 496,080 Property, plant and equipment, net 58,743 57,950 Operating lease right-of-use assets 72,358 71,081 Reorganization value in excess of amounts allocable to identifiable assets, net 41,580 41,580 Other assets 233,768 219,483 5,899,855 5,247,170 Mortgage Banking: Cash and cash equivalents 32,310 19,415 Restricted cash 12,099 2,974 Mortgage loans held for sale, net 325,792 316,806 Property and equipment, net 6,182 3,559 Operating lease right-of-use assets 24,595 16,011 Reorganization value in excess of amounts allocable to identifiable assets, net 7,347 7,347 Other assets 64,083 47,691 472,408 413,803 Total assets $ 6,372,263 $ 5,660,973
Consolidated Balance Sheets (Continued) (in thousands, except share and per share data) (unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding: Accounts payable $ 373,303 $ 334,016 Accrued expenses and other liabilities 386,299 437,234 Customer deposits 355,311 313,804 Operating lease liabilities 77,639 75,818 Senior notes 913,496 914,888 2,106,048 2,075,760 Mortgage Banking: Accounts payable and other liabilities 67,333 61,396 Operating lease liabilities 26,299 16,968 93,632 78,364 Total liabilities 2,199,680 2,154,124 Commitments and contingencies Shareholders' equity: Common stock,
206 206 Additional paid-in capital 2,801,027 2,600,014 Deferred compensation trust – 106,697 shares of
(16,710) (16,710) Deferred compensation liability 16,710 16,710 Retained earnings 12,954,950 11,773,414 Less treasury stock at cost – 17,345,353 and 17,336,397 shares as of September (11,583,600) (10,866,785) Total shareholders' equity 4,172,583 3,506,849 Total liabilities and shareholders' equity $ 6,372,263 $ 5,660,973
Operating Activity (dollars in thousands) (unaudited) Three Months Ended
Nine Months Ended
2023 2022 2023 2022 Units Average Price Units Average Price Units Average Price Units Average Price New orders, net of cancellations: Mid
1,822 $ 526.2 1,813 $ 516.2 6,405 $ 520.2 5,980 $ 527.1 North East (2) 448 $ 561.3 348 $ 510.5 1,353 $ 563.7 1,249 $ 512.7 Mid East (3) 916 $ 407.2 955 $ 406.7 3,572 $ 392.4 3,603 $ 404.4 South East (4) 1,560 $ 372.8 1,305 $ 385.0 5,209 $ 366.3 4,179 $ 410.2 Total 4,746 $ 456.1 4,421 $ 453.4 16,539 $ 447.7 15,011 $ 463.9 Three Months Ended
Nine Months Ended
2023 2022 2023 2022 Units Average Price Units Average Price Units Average Price Units Average Price Settlements: Mid
2,199 $ 521.2 2,417 $ 530.6 6,024 $ 522.2 6,889 $ 527.3 North East (2) 476 $ 563.5 487 $ 513.5 1,271 $ 538.6 1,307 $ 507.3 Mid East (3) 1,209 $ 387.5 1,468 $ 388.3 3,265 $ 392.8 4,034 $ 384.8 South East (4) 1,722 $ 365.2 1,577 $ 403.9 4,770 $ 380.2 4,753 $ 381.0 Total 5,606 $ 448.0 5,949 $ 460.5 15,330 $ 451.8 16,983 $ 450.9 As of
2023 2022 Units Average Price Units Average Price Backlog: Mid
4,073 $ 531.7 4,009 $ 536.2 North East (2) 967 $ 587.5 911 $ 519.1 Mid East (3) 2,160 $ 401.1 2,596 $ 407.8 South East (4) 3,171 $ 379.3 3,242 $ 433.5 Total 10,371 $ 463.1 10,758 $ 472.8
Operating Activity (Continued) (dollars in thousands) (unaudited) Three Months Ended
Nine Months Ended
2023 2022 2023 2022 Average active communities: Mid
167 164 166 157 North East (2) 36 37 37 36 Mid East (3) 109 126 111 126 South East (4) 119 96 110 92 Total 431 423 424 411 Three Months Ended
Nine Months Ended
2023 2022 2023 2022 Homebuilding data: New order cancellation rate 13.6 % 15.0 % 12.7 % 13.0 % Lots controlled at end of period 133,900 131,400 Mortgage banking data: Loan closings $ 1,621,599 $ 1,656,187 $ 4,240,529 $ 4,788,751 Capture rate 89 % 81 % 86 % 84 % Common stock information: Shares outstanding at end of period 3,209,977 3,211,977 Number of shares repurchased 78,750 88,016 134,751 295,148 Aggregate cost of shares repurchased $ 484,262 $ 368,490 $ 795,387 $ 1,384,193 (1)
(2)
(3) New
(4)
SOURCE
Investor Relations, Curt McKay, (703) 956-4058, ir@nvrinc.com
issued as of both
both
30, 2023 and
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