NVR posts Q3 net income of US$43.4M, down 1% from a year earlier as revenues rose 5% to US$707.5M; new orders increased 3% to 2,218 units
October 20, 2011
– 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, 2011 of $43,409,000, $7.98 per diluted share. Net income decreased 1% and diluted earnings per share increased 9% for its third quarter ended September 30, 2011 when compared to the 2010 third quarter. Consolidated revenues for the third quarter of 2011 totaled $707,476,000, a 5% increase from $676,169,000 for the comparable 2010 quarter.
For the nine months ended September 30, 2011, consolidated revenues were $1,917,861,000, 14% lower than the $2,230,887,000 reported for the same period of 2010. Net income for the nine months ended September 30, 2011 was $97,028,000, a decrease of 34% when compared to the nine months ended September 30, 2010. Diluted earnings per share for the nine months ended September 30, 2011 was $16.75, a decrease of 29% from $23.49 per diluted share for the comparable period of 2010.
New orders in the third quarter of 2011 increased 3% to 2,218 units, when compared to 2,151 units in the third quarter of 2010. The cancellation rate in the third quarter of 2011 was 15.0% compared to 17.9% in the third quarter of 2010 and 12.5% in the second quarter of 2011. Settlements increased in the third quarter of 2011 to 2,255 units, 6% higher than the same period of 2010. Homebuilding revenues for the three months ended September 30, 2011 totaled $696,980,000, 5% higher than the year earlier period.
Gross profit margins decreased to 17.9% in the 2011 third quarter compared to 18.3% for the same period in 2010. Income before tax from the homebuilding segment totaled $64,685,000 in the 2011 third quarter, an increase of 11% when compared to the third 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 3% to 3,909 units and on a dollar basis by 3% to $1,216,642,000 when compared to the same period last year.
Mortgage closed loan production of $489,866,000 for the three months ended September 30, 2011 was 2% lower than the same period last year. Operating income for the mortgage banking operations during the third quarter of 2011 decreased 34% to $4,257,000, when compared to $6,471,000 reported for the same period of 2010.
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-six metropolitan areas in fifteen 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.