Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2024

NVR, Inc.

(Exact name of registrant as specified in its charter)


Virginia	1-12378	54-1394360
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

11700 Plaza America Drive, Suite 500

Reston, Virginia 20190

(Address of principal executive offices) (Zip Code)

(703) 956-4000

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

NVR

New York Stock Exchange


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.

On January 30, 2024, NVR, Inc. issued a press release reporting its financial results for the quarter and year to date periods ended December 31, 2023. A copy of this press release is furnished herewith as Exhibit 99.1.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number						Exhibit Description

99.1						Press release dated January 30, 2024

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		NVR, Inc.

Date: January 30, 2024	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

Exhibit 99.1

NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

January 30, 2024, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December 31, 2023 of $410.1 million, or $121.56 per diluted share. Net income and diluted earnings per share for the fourth quarter ended December 31, 2023 decreased 10% and 9%, respectively, when compared to 2022 fourth quarter net income of $454.8 million, or $133.44 per diluted share. Consolidated revenues for the fourth quarter of 2023 totaled $2.43 billion, which decreased 10% from $2.71 billion in the fourth quarter of 2022.

For the year ended December 31, 2023, consolidated revenues were $9.52 billion, a 10% decrease from $10.53 billion reported in 2022. Net income for the year ended December 31, 2023 was $1.59 billion, a decrease of 8% when compared to net income for the year ended December 31, 2022 of $1.73 billion. Diluted earnings per share for the year ended December 31, 2023 was $463.31, a decrease of 6% from $491.82 per diluted share for 2022.

Homebuilding

New orders in the fourth quarter of 2023 increased by 25% to 5,190 units, when compared to 4,153 units in the fourth quarter of 2022. The average sales price of new orders in the fourth quarter of 2023 was $450,900, a decrease of 2% when compared with the fourth quarter of 2022. The cancellation rate in the fourth quarter of 2023 was 13% compared to 18% in the fourth quarter of 2022. Settlements in the fourth quarter of 2023 decreased by 7% to 5,332 units, compared to 5,749 units in the fourth quarter of 2022. The average settlement price in the fourth quarter of 2023 was $447,600, a decrease of 4% when compared with the fourth quarter of 2022. Our backlog of homes sold but not settled as of December 31, 2023 increased on a unit basis by 12% to 10,229 units and increased on a dollar basis by 10% to $4.76 billion when compared to the respective backlog unit and dollar balances as of December 31, 2022.

Homebuilding revenues of $2.39 billion in the fourth quarter of 2023 decreased by 11% compared to homebuilding revenues of $2.67 billion in the fourth quarter of 2022. Gross profit margin in the fourth quarter of 2023 decreased to 24.1%, compared to 25.3% in the fourth quarter of 2022. Income before tax from the homebuilding segment totaled $454.3 million in the fourth quarter of 2023, a decrease of 17% when compared to the fourth quarter of 2022.

New orders for the year ended December 31, 2023 increased by 13% to 21,729 units, compared to 19,164 units in 2022. Settlements for the year ended December 31, 2023 decreased by 9% to 20,662 units, compared to 22,732 units settled in 2022. Homebuilding revenues for the year ended December 31, 2023 totaled $9.31 billion, a 10% decrease from 2022. Gross profit margin for the year ended December 31, 2023 decreased to 24.3%, compared to 25.8% in 2022. Income before tax for the homebuilding segment decreased 16% for the year ended December 31, 2023 to $1.80 billion, compared to $2.13 billion in 2022.

Mortgage Banking

Mortgage closed loan production in the fourth quarter of 2023 totaled $1.50 billion, a decrease of 2% when compared to the fourth quarter of 2022. Income before tax from the mortgage banking segment totaled $29.7 million in the fourth quarter of 2023, an increase of 12% when compared to $26.4 million in the fourth quarter of 2022.

Mortgage closed loan production for the year ended December 31, 2023 decreased 9% to $5.74 billion. Income before tax from the mortgage banking segment for the year ended December 31, 2023 increased 9% to $132.8 million from $122.2 million in 2022.

Effective Tax Rate

Our effective tax rate for the three and twelve months ended December 31, 2023 was 15.3% and 17.5%, respectively, compared to 20.9% and 23.4% for the three and twelve months ended December 31, 2022, respectively. The decrease in the effective tax rate in each period is primarily attributable to a higher income tax benefit recognized for excess tax

benefits from stock option exercises, which totaled $42.5 million and $153.6 million for the three and twelve months ended December 31, 2023, respectively, and $22.6 million and $50.3 million for the three and twelve months ended December 31, 2022, 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 fifteen 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)


	Three Months Ended December 31,				Twelve Months Ended December 31,
	2023		2022		2023		2022
	(unaudited)		(unaudited)		(unaudited)
Homebuilding:
Revenues	$	2,387,094	$	2,668,036	$	9,314,605	$	10,326,770
Other income	40,891		21,592		148,010		37,038
Cost of sales	(1,812,968)		(1,993,722)		(7,051,198)		(7,662,271)
Selling, general and administrative	(154,086)		(140,995)		(588,962)		(532,353)
Operating income	460,931		554,911		1,822,455		2,169,184
Interest expense	(6,618)		(6,630)		(26,875)		(38,140)
Homebuilding income	454,313		548,281		1,795,580		2,131,044

Mortgage Banking:
Mortgage banking fees	45,476		44,146		203,597		199,664
Interest income	4,779		3,570		16,687		11,853
Other income	1,189		1,294		4,449		4,963
General and administrative	(21,537)		(22,300)		(91,075)		(92,946)
Interest expense	(173)		(269)		(865)		(1,384)
Mortgage banking income	29,734		26,441		132,793		122,150

Income before taxes	484,047		574,722		1,928,373		2,253,194
Income tax expense	(73,972)		(119,954)		(336,762)		(527,619)

Net income	$	410,075	$	454,768	$	1,591,611	$	1,725,575

Basic earnings per share	$	128.46	$	141.82	$	491.52	$	525.20

Diluted earnings per share	$	121.56	$	133.44	$	463.31	$	491.82

Basic weighted average shares outstanding	3,192		3,207		3,238		3,286

Diluted weighted average shares outstanding	3,373		3,408		3,435		3,509


NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)


	December 31, 2023		December 31, 2022
	(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents	$	3,126,472	$	2,503,424
Restricted cash	41,483		48,455
Receivables	29,000		20,842
Inventory:
Lots and housing units, covered under sales agreements with customers	1,674,686		1,554,955
Unsold lots and housing units	214,666		181,952
Land under development	36,895		27,100
Building materials and other	23,903		24,268
	1,950,150		1,788,275

Contract land deposits, net	576,551		496,080
Property, plant and equipment, net	63,716		57,950
Operating lease right-of-use assets	70,384		71,081
Reorganization value in excess of amounts allocable to identifiable assets, net	41,580		41,580
Deferred tax assets, net	148,005		143,585
Other assets	94,746		75,898
	6,142,087		5,247,170
Mortgage Banking:
Cash and cash equivalents	36,422		19,415
Restricted cash	11,067		2,974
Mortgage loans held for sale, net	222,560		316,806
Property and equipment, net	6,348		3,559
Operating lease right-of-use assets	23,541		16,011
Reorganization value in excess of amounts allocable to identifiable assets, net	7,347		7,347
Other assets	152,385		47,691
	459,670		413,803
Total assets	$	6,601,757	$	5,660,973


NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)


	December 31, 2023		December 31, 2022
	(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	347,738	$	334,016
Accrued expenses and other liabilities	413,043		437,234
Customer deposits	334,441		313,804
Operating lease liabilities	75,797		75,818
Senior notes	913,027		914,888
	2,084,046		2,075,760
Mortgage Banking:
Accounts payable and other liabilities	127,511		61,396
Operating lease liabilities	25,475		16,968
	152,986		78,364
Total liabilities	2,237,032		2,154,124

Commitments and contingencies

Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both December 31, 2023 and December 31, 2022	206		206
Additional paid-in capital	2,848,528		2,600,014
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both December 31, 2023 and December 31, 2022	(16,710)		(16,710)
Deferred compensation liability	16,710		16,710
Retained earnings	13,365,025		11,773,414
Less treasury stock at cost – 17,360,454 and 17,336,397 shares as of December 31, 2023 and December 31, 2022, respectively	(11,849,034)		(10,866,785)
Total shareholders' equity	4,364,725		3,506,849
Total liabilities and shareholders' equity	$	6,601,757	$	5,660,973


NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2023			2022			2023			2022
	Units	Average Price		Units	Average Price		Units	Average Price		Units	Average Price
New orders, net of cancellations:
Mid Atlantic (1)	2,029	$	500.9	1,836	$	525.0	8,434	$	515.5	7,816	$	526.6
North East (2)	526	$	597.7	430	$	573.6	1,879	$	573.2	1,679	$	528.3
Mid East (3)	942	$	412.2	741	$	381.8	4,514	$	396.5	4,344	$	400.5
South East (4)	1,693	$	366.9	1,146	$	360.3	6,902	$	366.4	5,325	$	399.4
Total	5,190	$	450.9	4,153	$	459.0	21,729	$	448.4	19,164	$	462.8


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2023			2022			2023			2022
	Units	Average Price		Units	Average Price		Units	Average Price		Units	Average Price
Settlements:
Mid Atlantic (1)	2,008	$	519.5	2,153	$	526.6	8,032	$	521.5	9,042	$	527.1
North East (2)	465	$	567.1	456	$	503.4	1,736	$	546.2	1,763	$	506.3
Mid East (3)	1,126	$	391.3	1,484	$	400.5	4,391	$	392.4	5,518	$	389.1
South East (4)	1,733	$	368.9	1,656	$	428.7	6,503	$	377.2	6,409	$	393.3
Total	5,332	$	447.6	5,749	$	464.0	20,662	$	450.7	22,732	$	454.3


	As of December 31,
	2023			2022
	Units	Average Price		Units	Average Price
Backlog:
Mid Atlantic (1)	4,094	$	522.5	3,692	$	536.3
North East (2)	1,028	$	602.0	885	$	553.9
Mid East (3)	1,976	$	412.1	1,853	$	403.2
South East (4)	3,131	$	378.4	2,732	$	405.7
Total	10,229	$	465.0	9,162	$	472.2


NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2023			2022			2023			2022
Average active communities:
Mid Atlantic (1)	167			169			166			160
North East (2)	36			37			36			36
Mid East (3)	105			127			110			126
South East (4)	130			95			115			93
Total	438			428			427			415


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2023			2022			2023			2022
Homebuilding data:
New order cancellation rate	13.0		%	18.4		%	12.8		%	14.2		%
Lots controlled at end of period							141,500			131,900

Mortgage banking data:
Loan closings	$	1,496,003		$	1,524,665		$	5,736,532		$	6,313,416
Capture rate	88		%	80		%	87		%	83		%

Common stock information:
Shares outstanding at end of period							3,194,876			3,218,933
Number of shares repurchased	46,748			28,504			181,499			323,652
Aggregate cost of shares repurchased	$	286,428		$	116,165		$	1,081,815		$	1,500,358


(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 and Georgia

Investor Relations Contact:
Curt McKay
(703) 956-4058
ir@nvrinc.com

Cover	Jan. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 30, 2024
Entity Registrant Name	NVR, Inc.
Entity Incorporation, State or Country Code	VA
Entity File Number	1-12378
Entity Central Index Key	0000906163
Amendment Flag	false
Entity Tax Identification Number	54-1394360
Entity Address, Address Line One	11700 Plaza America Drive, Suite 500
Entity Address, City or Town	Reston
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	703
Local Phone Number	956-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	NVR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false