RESTON, Va., July 22 /PRNewswire-FirstCall/ -- 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, 2009 of $41,426,000, $6.79 per diluted share. Net
income and diluted earnings per share for its second quarter ended
June 30, 2009 decreased 19% and 21%, respectively, when compared to
the 2008 second quarter. Consolidated revenues for the second
quarter of 2009 totaled $625,431,000, a 35% decrease from
$955,723,000 for the comparable 2008 quarter. For the six months
ended June 30, 2009, consolidated revenues were $1,184,030,000, 36%
lower than the $1,843,654,000 reported for the same period of 2008.
Net income for the six months ended June 30, 2009 was $59,414,000,
a decrease of 37% when compared to the six months ended June 30,
2008. Diluted earnings per share for the six months ended June 30,
2009 was $9.85, a decrease of 39% from $16.10 per diluted share for
the comparable period of 2008. Homebuilding New orders in the
second quarter of 2009 increased 2% to 2,728 units, when compared
to 2,670 units in the second quarter of 2008. The cancellation rate
in the quarter ended June 30, 2009 was 14% compared to 19% in the
second quarter of 2008 and 15% in the first quarter of 2009.
Settlements decreased in the second quarter of 2009 to 2,048 units,
26% less than the same period of 2008. The Company's backlog of
homes sold but not settled at the end of the 2009 quarter decreased
on a unit basis by 16% to 4,497 units and on a dollar basis by 27%
to $1,332,056,000 when compared to the same period last year.
Homebuilding revenues for the three months ended June 30, 2009
totaled $612,488,000, 35% lower than the year earlier period. Gross
profit margins increased to 19.3% in the 2009 second quarter
compared to 17.9% for the same period in 2008. The 2009 second
quarter gross profit margin was favorably impacted by the recovery
of approximately $4,500,000 of land deposits previously determined
to be uncollectible. In the second quarter of 2008, the Company had
recorded a $5,800,000 land deposit impairment charge. Income before
tax from the homebuilding segment totaled $62,872,000 in the 2009
second quarter, a decrease of 21% when compared to the second
quarter of the previous year. Mortgage Banking Mortgage closed loan
production of $487,618,000 for the three months ended June 30, 2009
was 18% lower than the same period last year. Operating income for
the mortgage banking operations during the second quarter of 2009
decreased 3% to $6,957,000, when compared to $7,155,000 reported
for the same period of 2008. Other News The Company reported that
it closed the 2009 second quarter with a cash and cash equivalents
and marketable security position of $1,241,630,000. 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, 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 Six Months Ended June 30, June
30, --------------- --------------- 2009 2008 2009 2008 ---- ----
---- ---- Homebuilding: Revenues $612,488 $941,033 $1,160,817
$1,810,902 Other income 1,750 3,701 4,289 10,100 Cost of sales
(494,240) (772,369) (956,870) (1,499,300) Selling, general and
administrative (54,664) (89,871) (114,358) (174,037) -------
------- -------- -------- Operating income 65,334 82,494 93,878
147,665 Interest expense (2,462) (3,232) (5,236) (6,471) ------
------ ------ ------ Homebuilding income 62,872 79,262 88,642
141,194 ------ ------ ------ ------- Mortgage Banking: Mortgage
banking fees 12,943 14,690 23,213 32,752 Interest income 611 869
1,195 1,679 Other income 154 184 243 343 General and administrative
(6,475) (8,408) (12,233) (16,062) Interest expense (276) (180)
(613) (314) ---- ---- ---- ---- Mortgage banking income 6,957 7,155
11,805 18,398 ----- ----- ------ ------ Income before taxes 69,829
86,417 100,447 159,592 Income tax expense (28,403) (35,085)
(41,033) (64,794) ------- ------- ------- ------- Net income
$41,426 $51,332 $59,414 $94,798 ======= ======= ======= =======
Basic earnings per share $7.17 $9.58 $10.41 $17.92 ===== =====
====== ====== Diluted earnings per share $6.79 $8.64 $9.85 $16.10
===== ===== ===== ====== Basic average shares outstanding 5,777
5,357 5,710 5,290 ===== ===== ===== ===== Diluted average shares
outstanding 6,101 5,938 6,032 5,888 ===== ===== ===== ===== NVR,
Inc. Consolidated Balance Sheets (in thousands, except share and
per share data) June 30, December 31, 2009 2008 ---- ----
(unaudited) ASSETS Homebuilding: Cash and cash equivalents $582,157
$1,146,426 Marketable securities 658,362 - Receivables 9,227 11,594
Inventory: Lots and housing units, covered under sales agreements
with customers 416,270 335,238 Unsold lots and housing units 38,537
57,639 Manufacturing materials and other 5,763 7,693 ----- -----
460,570 400,570 Contract land deposits, net 31,664 29,073 Assets
not owned, consolidated per FIN 46R 65,990 114,930 Property, plant
and equipment, net 21,660 25,658 Reorganization value in excess of
amounts allocable to identifiable assets, net 41,580 41,580 Other
assets, net 224,081 242,626 ------- ------- 2,095,291 2,012,457
--------- --------- Mortgage Banking: Cash and cash equivalents
1,111 1,217 Mortgage loans held for sale, net 123,177 72,488
Property and equipment, net 586 759 Reorganization value in excess
of amounts allocable to identifiable assets, net 7,347 7,347 Other
assets 9,573 8,968 ----- ----- 141,794 90,779 ------- ------ Total
assets $2,237,085 $2,103,236 ========== ========== NVR, Inc.
Consolidated Balance Sheets (Continued) (in thousands, except share
and per share data) June 30, December 31, 2009 2008 ---- ----
(unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Homebuilding:
Accounts payable $142,557 $137,285 Accrued expenses and other
liabilities 163,250 194,869 Liabilities related to assets not
owned, consolidated per FIN 46R 60,687 109,439 Customer deposits
70,163 59,623 Other term debt 2,388 2,530 Senior notes 135,370
163,320 ------- ------- 574,415 667,066 ------- ------- Mortgage
Banking: Accounts payable and other liabilities 17,047 17,842 Notes
payable 97,021 44,539 ------ ------ 114,068 62,381 ------- ------
Total liabilities 688,483 729,447 ------- ------- Commitments and
contingencies Shareholders' equity: Common stock, $0.01 par value;
60,000,000 shares authorized; 20,559,671 and 20,561,187 shares
issued for June 30, 2009 and December 31, 2008, respectively 206
206 Additional paid-in capital 784,080 722,265 Deferred
compensation trust - 270,335 and 514,470 shares of NVR, Inc. common
stock for June 30, 2009 and December 31, 2008, respectively
(44,307) (74,978) Deferred compensation liability 44,307 74,978
Retained earnings 3,690,301 3,630,887 Less treasury stock at cost -
14,758,071 and 15,028,335 shares for June 30, 2009 and December 31,
2008, respectively (2,925,985) (2,979,569) ---------- ----------
Total shareholders' equity 1,548,602 1,373,789 --------- ---------
Total liabilities and shareholders' equity $2,237,085 $2,103,236
========== ========== NVR, Inc. Operating Activity (unaudited)
(dollars in thousands) Three Months Ended Six Months Ended June 30,
June 30, -------------- ---------------- 2009 2008 2009 2008 ----
---- ---- ---- Homebuilding data: New orders (units): Mid Atlantic
(1) 1,421 1,341 2,624 2,633 North East (2) 246 240 481 520 Mid East
(3) 746 726 1,447 1,443 South East (4) 315 363 602 805 --- --- ---
--- Total 2,728 2,670 5,154 5,401 ===== ===== ===== ===== Average
new order price $294.8 $316.4 $288.7 $318.2 Settlements (units):
Mid Atlantic (1) 1,057 1,344 1,985 2,585 North East (2) 197 304 381
549 Mid East (3) 533 639 946 1,256 South East (4) 261 463 509 825
--- --- --- --- Total 2,048 2,750 3,821 5,215 ===== ===== =====
===== Average settlement price $298.6 $341.7 $303.3 $346.9 Backlog
(units): Mid Atlantic (1) 2,415 2,774 North East (2) 403 476 Mid
East (3) 1,232 1,300 South East (4) 447 781 --- --- Total 4,497
5,331 ===== ===== Average backlog price $296.2 $341.5 Community
count (average) 356 435 357 439 Lots controlled at end of period
44,000 60,500 Mortgage banking data: Loan closings $487,618
$593,867 $914,912 $1,117,405 Capture rate 92% 84% 91% 83% Common
stock information: Shares outstanding at end of period 5,801,600
5,424,257 (1) Virginia, West Virginia, Maryland and Delaware (2)
Eastern Pennsylvania and New Jersey (3) Western Pennsylvania,
Kentucky, New York and Ohio (4) North Carolina, South Carolina and
Tennessee DATASOURCE: NVR, Inc. CONTACT: Dan Malzahn of NVR, Inc.,
+1-703-956-4204 Web Site: http://www.nvrinc.com/
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