RESTON,
Va., Oct. 22, 2024 /PRNewswire/ -- 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, 2024 of $429.3 million, or $130.50 per diluted share. For the third
quarter ended September 30, 2024, net income decreased 1% and
diluted earnings per share increased 4%, when compared to 2023
third quarter net income of $433.2
million, or $125.26 per
diluted share. Consolidated revenues for the third quarter of
2024 totaled $2.73 billion, which
increased 6% from $2.57 billion in
the third quarter of 2023.
For the nine months ended September 30,
2024, consolidated revenues were $7.68 billion, an 8% increase from $7.09 billion reported for the same period of
2023. Net income for the nine months ended September 30, 2024 was $1.22 billion, an increase of 4% when compared to
net income for the nine months ended September 30, 2023 of $1.18 billion. Diluted earnings per share for the
nine months ended September 30, 2024
was $367.20, an increase of 7% from
$341.97 per diluted share for the
same period of 2023.
Homebuilding
New orders in the third quarter of 2024 increased by 19% to
5,650 units, when compared to 4,746 units in the third quarter of
2023. The average sales price of new orders in the third quarter of
2024 was $450,700, a decrease of 1%
when compared with the third quarter of 2023. The
cancellation rate in the third quarter of 2024 was 15% compared to
14% in the third quarter of 2023. Settlements in the third
quarter of 2024 increased by 5% to 5,908 units, compared to 5,606
units in the third quarter of 2023. The average settlement price in
the third quarter of 2024 was $453,200, an increase of 1% when compared with
the third quarter of 2023. Our backlog of homes sold but not
settled as of September 30, 2024 increased on a unit basis by
9% to 11,339 units and increased on a dollar basis by 11% to
$5.32 billion when compared to the
respective backlog unit and dollar balances as of
September 30, 2023.
Homebuilding revenues of $2.68
billion in the third quarter of 2024 increased by 7%
compared to homebuilding revenues of $2.51
billion in the third quarter of 2023. Gross profit
margin in the third quarter of 2024 decreased to 23.4%, from 24.3%
in the third quarter of 2023. Gross profit margin was negatively
impacted by higher lot costs and closing cost assistance. Income
before tax from the homebuilding segment totaled $503.7 million in the third quarter of 2024, an
increase of 1% when compared to the third quarter of 2023.
Mortgage Banking
Mortgage closed loan production in the third quarter of 2024
totaled $1.66 billion, an increase of
2% when compared to the third quarter of 2023. Income before
tax from the mortgage banking segment totaled $34.9 million in the third quarter of 2024, a
decrease of 9% when compared to $38.5
million in the third quarter of 2023. This decrease
was primarily attributable to a decrease in secondary marketing
gains on sales of loans.
Effective Tax Rate
Our effective tax rate for the three and nine months ended
September 30, 2024 was 20.3% and
20.6%, respectively, compared to 19.7% and 18.2% for the three and
nine months ended September 30, 2023,
respectively. The increase in the effective tax rate in each
period is primarily attributable to a lower income tax benefit
recognized for excess tax benefits from stock option exercises,
which totaled $23.1 million and
$73.7 million for the three and nine
months ended September 30, 2024,
respectively, compared to $31.9
million and $111.0 million for
the three and nine months ended September
30, 2023, respectively.
About NVR
NVR, Inc. operates in two business segments: homebuilding and
mortgage banking. The homebuilding segment sells and builds
homes under the Ryan Homes, NVHomes and Heartland Homes trade
names, and operates in thirty-six metropolitan areas in sixteen
states and Washington, D.C.
For more information about NVR, Inc. and its brands, see
www.nvrinc.com, www.ryanhomes.com, www.nvhomes.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 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.
|
NVR,
Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
2,677,640
|
|
$
2,512,409
|
|
$
7,511,708
|
|
$
6,927,511
|
|
Other
income
|
|
33,746
|
|
39,914
|
|
110,796
|
|
107,119
|
|
Cost of
sales
|
|
(2,051,087)
|
|
(1,902,174)
|
|
(5,724,916)
|
|
(5,238,230)
|
|
Selling, general and
administrative
|
|
(149,777)
|
|
(142,715)
|
|
(443,493)
|
|
(434,876)
|
|
Operating
income
|
|
510,522
|
|
507,434
|
|
1,454,095
|
|
1,361,524
|
|
Interest
expense
|
|
(6,855)
|
|
(6,628)
|
|
(20,214)
|
|
(20,257)
|
|
Homebuilding
income
|
|
503,667
|
|
500,806
|
|
1,433,881
|
|
1,341,267
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
55,311
|
|
56,616
|
|
167,163
|
|
158,121
|
|
Interest
income
|
|
4,728
|
|
5,067
|
|
13,492
|
|
11,908
|
|
Other
income
|
|
1,414
|
|
1,169
|
|
3,918
|
|
3,260
|
|
General and
administrative
|
|
(26,317)
|
|
(24,050)
|
|
(75,026)
|
|
(69,538)
|
|
Interest
expense
|
|
(191)
|
|
(268)
|
|
(556)
|
|
(692)
|
|
Mortgage banking
income
|
|
34,945
|
|
38,534
|
|
108,991
|
|
103,059
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
538,612
|
|
539,340
|
|
1,542,872
|
|
1,444,326
|
|
Income tax
expense
|
|
(109,289)
|
|
(106,183)
|
|
(318,376)
|
|
(262,790)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
429,323
|
|
$
433,157
|
|
$
1,224,496
|
|
$
1,181,536
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
139.65
|
|
$
132.92
|
|
$
391.37
|
|
$
363.14
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
130.50
|
|
$
125.26
|
|
$
367.20
|
|
$
341.97
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,074
|
|
3,259
|
|
3,129
|
|
3,254
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,290
|
|
3,458
|
|
3,335
|
|
3,455
|
|
NVR,
Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,474,219
|
|
$
3,126,472
|
|
Restricted
cash
|
|
46,474
|
|
41,483
|
|
Receivables
|
|
35,563
|
|
29,000
|
|
Inventory:
|
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,946,533
|
|
1,674,686
|
|
Unsold lots and
housing units
|
|
223,828
|
|
214,666
|
|
Land under
development
|
|
63,339
|
|
36,895
|
|
Building materials and
other
|
|
23,697
|
|
23,903
|
|
|
2,257,397
|
|
1,950,150
|
|
|
|
|
|
|
Contract land
deposits, net
|
|
668,436
|
|
576,551
|
|
Property, plant and
equipment, net
|
|
85,998
|
|
63,716
|
|
Operating lease
right-of-use assets
|
|
74,415
|
|
70,384
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
|
Other
assets
|
|
251,027
|
|
242,751
|
|
|
5,935,109
|
|
6,142,087
|
|
Mortgage
Banking:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
36,727
|
|
36,422
|
|
Restricted
cash
|
|
11,247
|
|
11,067
|
|
Mortgage loans held
for sale, net
|
|
379,232
|
|
222,560
|
|
Property and
equipment, net
|
|
7,086
|
|
6,348
|
|
Operating lease
right-of-use assets
|
|
21,499
|
|
23,541
|
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
|
Other
assets
|
|
89,912
|
|
152,385
|
|
|
553,050
|
|
459,670
|
|
Total
assets
|
|
$
6,488,159
|
|
$
6,601,757
|
|
NVR,
Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
Accounts
payable
|
|
$
370,131
|
|
$
347,738
|
|
Accrued expenses and
other liabilities
|
|
406,319
|
|
413,043
|
|
Customer
deposits
|
|
358,609
|
|
334,441
|
|
Operating lease
liabilities
|
|
79,796
|
|
75,797
|
|
Senior
notes
|
|
911,599
|
|
913,027
|
|
|
2,126,454
|
|
2,084,046
|
|
Mortgage
Banking:
|
|
|
|
|
|
Accounts payable and
other liabilities
|
|
67,029
|
|
127,511
|
|
Operating lease
liabilities
|
|
23,428
|
|
25,475
|
|
|
90,457
|
|
152,986
|
|
Total
liabilities
|
|
2,216,911
|
|
2,237,032
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Common stock, $0.01
par value; 60,000,000 shares authorized; 20,555,330 shares issued
as of both September 30, 2024 and December 31, 2023
|
|
206
|
|
206
|
|
Additional paid-in
capital
|
|
2,989,776
|
|
2,848,528
|
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of both
September 30, 2024 and December 31, 2023
|
|
(16,710)
|
|
(16,710)
|
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
|
Retained
earnings
|
|
14,589,521
|
|
13,365,025
|
|
Less treasury stock at
cost – 17,490,540 and 17,360,454 shares as of September 30, 2024
and December 31, 2023, respectively
|
|
(13,308,255)
|
|
(11,849,034)
|
|
Total shareholders'
equity
|
|
4,271,248
|
|
4,364,725
|
|
Total liabilities
and shareholders' equity
|
|
$
6,488,159
|
|
$
6,601,757
|
|
NVR,
Inc.
Operating Activity
(dollars in thousands)
(unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,206
|
|
$
514.7
|
|
1,822
|
|
$
526.2
|
|
6,785
|
|
$
522.2
|
|
6,405
|
|
$
520.2
|
|
North East
(2)
|
|
536
|
|
$
616.4
|
|
448
|
|
$
561.3
|
|
1,541
|
|
$
617.2
|
|
1,353
|
|
$
563.7
|
|
Mid East
(3)
|
|
1,105
|
|
$
400.2
|
|
916
|
|
$
407.2
|
|
3,630
|
|
$
404.8
|
|
3,572
|
|
$
392.4
|
|
South East
(4)
|
|
1,803
|
|
$
354.1
|
|
1,560
|
|
$
372.8
|
|
5,810
|
|
$
363.9
|
|
5,209
|
|
$
366.3
|
|
Total
|
|
5,650
|
|
$
450.7
|
|
4,746
|
|
$
456.1
|
|
17,766
|
|
$
454.7
|
|
16,539
|
|
$
447.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,229
|
|
$
514.9
|
|
2,199
|
|
$
521.2
|
|
6,394
|
|
$
515.9
|
|
6,024
|
|
$
522.2
|
|
North East
(2)
|
|
495
|
|
$
606.9
|
|
476
|
|
$
563.5
|
|
1,445
|
|
$
583.6
|
|
1,271
|
|
$
538.6
|
|
Mid East
(3)
|
|
1,219
|
|
$
411.1
|
|
1,209
|
|
$
387.5
|
|
3,343
|
|
$
404.5
|
|
3,265
|
|
$
392.8
|
|
South East
(4)
|
|
1,965
|
|
$
370.5
|
|
1,722
|
|
$
365.2
|
|
5,474
|
|
$
368.5
|
|
4,770
|
|
$
380.2
|
|
Total
|
|
5,908
|
|
$
453.2
|
|
5,606
|
|
$
448.0
|
|
16,656
|
|
$
451.0
|
|
15,330
|
|
$
451.8
|
|
|
As of September
30,
|
|
|
|
2024
|
|
2023
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,485
|
|
$
531.4
|
|
4,073
|
|
$
531.7
|
|
|
North East
(2)
|
|
1,124
|
|
$
646.5
|
|
967
|
|
$
587.5
|
|
|
Mid East
(3)
|
|
2,263
|
|
$
411.5
|
|
2,160
|
|
$
401.1
|
|
|
South East
(4)
|
|
3,467
|
|
$
369.8
|
|
3,171
|
|
$
379.3
|
|
|
Total
|
|
11,339
|
|
$
469.5
|
|
10,371
|
|
$
463.1
|
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Average active
communities:
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
146
|
|
167
|
|
152
|
|
166
|
|
North East
(2)
|
|
32
|
|
36
|
|
32
|
|
37
|
|
Mid East
(3)
|
|
98
|
|
109
|
|
100
|
|
111
|
|
South East
(4)
|
|
146
|
|
119
|
|
143
|
|
110
|
|
Total
|
|
422
|
|
431
|
|
427
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
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|
|
2024
|
|
2023
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|
2024
|
|
2023
|
|
Homebuilding
data:
|
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|
|
|
|
|
|
|
|
New order cancellation
rate
|
|
14.5 %
|
|
13.6 %
|
|
13.5 %
|
|
12.7 %
|
|
Lots controlled at end
of period
|
|
|
|
|
|
151,800
|
|
133,900
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
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|
|
|
|
|
|
Loan
closings
|
|
$
1,656,507
|
|
$
1,621,599
|
|
$
4,564,597
|
|
$
4,240,529
|
|
Capture
rate
|
|
86 %
|
|
89 %
|
|
86 %
|
|
86 %
|
|
|
|
|
|
|
|
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|
|
Common stock
information:
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|
|
|
|
|
|
|
|
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Shares outstanding at
end of period
|
|
|
|
|
|
3,064,790
|
|
3,209,977
|
|
Number of shares
repurchased
|
|
42,629
|
|
78,750
|
|
192,655
|
|
134,751
|
|
Aggregate cost of
shares repurchased
|
|
$
357,450
|
|
$
484,262
|
|
$
1,493,362
|
|
$
795,387
|
|
(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, Florida, Georgia and
Kentucky
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View original
content:https://www.prnewswire.com/news-releases/nvr-inc-announces-third-quarter-results-302282367.html
SOURCE NVR, INC.