NVR, Inc. Announces Second Quarter Results

RESTON, Va., July 21, 2016 /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, 2016 of $91,676,000, or $22.01 per diluted share. Net income for its second quarter ended June 30, 2016 decreased 2% when compared to the second quarter of 2015. Diluted earnings per share was flat when compared to the second quarter of 2015. Consolidated revenues for the second quarter of 2016 totaled $1,388,183,000, a 12% increase from $1,243,633,000 for the comparable 2015 quarter.

For the six months ended June 30, 2016, consolidated revenues were $2,532,209,000, 15% higher than the $2,201,382,000 reported for the same period of 2015. Net income for the six months ended June 30, 2016 was $156,979,000, an increase of 19% when compared to the six months ended June 30, 2015. Diluted earnings per share for the six months ended June 30, 2016 was $37.82, an increase of 21% from $31.17 per diluted share for the comparable period of 2015.

Homebuilding

New orders in the second quarter of 2016 increased 14% to 4,324 units, when compared to 3,796 units in the second quarter of 2015. The average sales price of new orders was $383,900, a 1% increase when compared with the average sales price of new orders in the second quarter of 2015. The cancellation rate in the second quarter of 2016 was 13%, compared to 14% in the second quarter of 2015. Settlements increased in the second quarter of 2016 to 3,581 units, 13% higher than the second quarter of 2015. The Company's backlog of homes sold but not settled as of June 30, 2016 increased on a unit basis by 8% to 8,103 units and increased on a dollar basis by 9% to $3,122,534,000 when compared to June 30, 2015.

Homebuilding revenues for the three months ended June 30, 2016 totaled $1,361,741,000, 12% higher than the year earlier period. Gross profit margin decreased to 17.3% in the 2016 second quarter compared to 19.2% for the same period in 2015. Gross profit margin was negatively impacted by a 2% decrease in the average settlement price and higher construction costs in the second quarter of 2016 compared to the same period of 2015. Income before tax from the homebuilding segment totaled $131,528,000 in the second quarter of 2016, a decrease of 4% when compared to the second quarter of 2015.

During the second quarter of 2016, the Company sold the previously disclosed land parcel it had acquired in February 2016 to a developer for an amount which approximated NVR's net investment in the property.  The Company also entered into lot purchase agreements with the developer for the option to purchase a portion of the finished lots expected to be developed from the parcel.

Mortgage Banking

Mortgage closed loan production of $942,407,000 for the three months ended June 30, 2016 increased by 10% when compared to the three months ended June 30, 2015. Operating income for the mortgage banking operations during the second quarter of 2016 was $13,192,000, compared to $11,436,000 reported for the second quarter of 2015.

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 and Heartland Homes trade names, and operates in twenty-eight 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 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, 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.