NVR, Inc. Announces Second Quarter Results

RESTON, Va., July 22, 2013 /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, 2013 of $50,690,000, $10.11 per diluted share.  Net income and diluted earnings per share for its second quarter ended June 30, 2013 increased 8% and 13%, respectively, when compared to the 2012 second quarter.  Consolidated revenues for the second quarter of 2013 totaled $1,009,892,000, a 31% increase from $769,783,000 for the comparable 2012 quarter.

For the six months ended June 30, 2013, consolidated revenues were $1,780,148,000, 30% higher than the $1,370,275,000 reported for the same period of 2012.  Net income for the six months ended June 30, 2013 was $85,731,000, an increase of 28% when compared to the six months ended June 30, 2012.  Diluted earnings per share for the six months ended June 30, 2013 was $16.92, an increase of 31% from $12.90 per diluted share for the comparable period of 2012.

Homebuilding

New orders in the second quarter of 2013 increased 25% to 3,278 units when compared to 2,614 units in the second quarter of 2012.  The cancellation rate in the second quarter of 2013 was 13.8% compared to 16.3% in the second quarter of 2012 and 13.2% in the first quarter of 2013.  Settlements increased in the second quarter of 2013 to 2,878 units, 16% higher than the same period in 2012.  The Company's backlog of homes sold but not settled as of June 30, 2013 increased on a unit basis by 31% to 6,617 units and on a dollar basis by 42% to $2,372,757,000 when compared to June 30, 2012.

Homebuilding revenues for the three months ended June 30, 2013 totaled $992,210,000, 31% higher than the year earlier period.  Gross profit margin in the second quarter of 2013 was 15.9% compared to 17.3% in the second quarter of 2012 and 16.9% in the first quarter of 2013.  Gross profit margin in the current quarter was negatively impacted by an approximate $15,600,000 charge, or 157 basis points of revenue, to establish a reserve related to remediation of primarily water infiltration issues in a single completed community.  The water infiltration issues were the result of a design issue with several products developed for and built in that specific community.  These products were not built in any other community.  Excluding this charge, gross profit margin for the second quarter of 2013 was 17.5%.  Income before tax from the homebuilding segment totaled $71,663,000 in the 2013 second quarter, an increase of 26% when compared to the second quarter of 2012.

Mortgage Banking

Mortgage closed loan production of $646,450,000 for the three months ended June 30, 2013 was 18% higher than the same period last year.  Operating income for the mortgage banking operations during the second quarter of 2013 increased 22% to $8,518,000, when compared to $6,971,000 reported for the same period of 2012.

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-seven 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 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.

SOURCE NVR, Inc.