RESTON, Va., Jan. 27 /PRNewswire-FirstCall/ -- 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, 2009 of $60,639,000, $9.61 per diluted share,
compared to a net loss of $30,457,000 and diluted loss per share of
$5.54 for its prior year fourth quarter. Consolidated revenues for
the fourth quarter of 2009 totaled $745,802,000, an 18% decrease
from $910,174,000 for the comparable 2008 quarter. For the year
ended December 31, 2009, consolidated revenues were $2,743,848,000,
26% lower than the $3,693,039,000 reported for the year ended
December 31, 2008. Net income for the year ended December 31, 2009
was $192,180,000, compared to $100,892,000 for the year ended
December 31, 2008. Diluted earnings per share for the year ended
December 31, 2009 was $31.26, an increase of 83% from $17.04 per
diluted share for the comparable period of 2008. Homebuilding New
orders in the fourth quarter of 2009 increased 47% to 2,000 units,
compared to 1,357 units in the fourth quarter of 2008. The
cancellation rate in the quarter ended December 31, 2009 was 15%
compared to 30% in the fourth quarter of 2008 and 14% in the third
quarter of 2009. Settlements decreased in the fourth quarter of
2009 to 2,550 units, 8% less than the same period of 2008.
Homebuilding revenues for the quarter ended December 31, 2009
totaled $730,140,000, 19% lower than the year earlier period. Gross
profit margins increased to 18.9% in the 2009 fourth quarter
compared to 2.6% for the same period in 2008. Income before tax
from homebuilding operations totaled $75,815,000 in the 2009 fourth
quarter, compared to a loss of $56,978,000 in the fourth quarter of
the previous year. The fourth quarter 2008 gross profit margin
results and pre-tax income were negatively impacted by a
$109,800,000 land deposit impairment charge. The fourth quarter
2008 results were also impacted by goodwill impairment charges of
$11,686,000. New orders for the 2009 fiscal year totaled 9,409
units, a 7% increase when compared to the 8,760 units reported for
2008. Home settlements for 2009 decreased 16% to 9,042 units when
compared to 10,741 units settled in 2008. Homebuilding revenues for
2009 totaled $2,683,467,000, 26% lower than 2008. Gross profit
margins increased to 18.5% in 2009 from 12.6% in 2008. Pre-tax
homebuilding income increased to $263,083,000 for the 2009 fiscal
year, an increase of 87% from the prior year. Gross profit margins
and pre-tax income were negatively impacted in 2008 by a
$165,000,000 land deposit impairment charge. The Company's backlog
of homes sold but not settled at the end of 2009 increased on a
unit basis by 12% to 3,531 units and on a dollar basis by 7% to
$1,076,437,000 as compared to the prior year end. Mortgage Banking
Mortgage closed loan production of $542,147,000 for the three
months ended December 31, 2009 was 13% lower than the same period
last year. Income before tax for the mortgage banking operations
during the fourth quarter of 2009 increased to $8,712,000, compared
to $4,234,000 reported for the same period of 2008. Pre-tax income
in the current quarter was favorably impacted primarily by a
decrease in incentives given to borrowers. Mortgage closed loan
production for the 2009 fiscal year decreased 12% to
$2,060,376,000. Income before tax from the mortgage banking segment
for 2009 increased 32% to $35,331,000 from the $26,704,000 reported
for 2008. 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
Operations (in thousands, except per share data) Three Months
Twelve Months Ended Ended December 31, December 31, ------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- Homebuilding:
Revenues $730,140 $899,535 $2,683,467 $3,638,702 Other income 2,186
2,030 8,697 16,386 Cost of sales (592,221) (875,779) (2,185,733)
(3,181,010) Selling, general and administrative (62,132) (67,906)
(233,152) (308,739) ------- ------- -------- -------- Operating
income (loss) 77,973 (42,120) 273,279 165,339 Interest expense
(2,158) (3,172) (10,196) (12,902) Goodwill and intangible asset
impairment - (11,686) - (11,686) --- ------- --- -------
Homebuilding income (loss) 75,815 (56,978) 263,083 140,751 ------
------- ------- ------- Mortgage Banking: Mortgage banking fees
15,662 10,639 60,381 54,337 Interest income 897 1,347 2,979 3,955
Other income 171 214 629 745 General and administrative (7,755)
(7,756) (27,474) (31,579) Interest expense (263) (210) (1,184)
(754) ---- ---- ------ ---- Mortgage banking income 8,712 4,234
35,331 26,704 ----- ----- ------ ------ Income (loss) before taxes
84,527 (52,744) 298,414 167,455 Income tax (expense) benefit
(23,888) 22,287 (106,234) (66,563) ------- ------ -------- -------
Net income (loss) $60,639 $(30,457) $192,180 $100,892 =======
======== ======== ======== Basic earnings (loss) per share $10.21
$(5.54) $33.10 $18.76 ====== ====== ====== ====== Diluted earnings
(loss) per share $9.61 $(5.54) $31.26 $17.04 ===== ====== ======
====== Basic average shares outstanding 5,939 5,497 5,807 5,379
===== ===== ===== ===== Diluted average shares outstanding 6,311
5,497 6,149 5,920 ===== ===== ===== ===== NVR, Inc. Consolidated
Balance Sheets (in thousands, except share and per share data)
December 31, December 31, 2009 2008 ------------- -------------
ASSETS Homebuilding: Cash and cash equivalents $1,248,689
$1,146,426 Marketable securities 219,535 - Receivables 7,995 11,594
Inventory: Lots and housing units, covered under sales agreements
with customers 337,523 335,238 Unsold lots and housing units 73,673
57,639 Manufacturing materials and other 7,522 7,693 ----- -----
418,718 400,570 Contract land deposits, net 49,906 29,073
Consolidated assets not owned 70,430 114,930 Property, plant and
equipment, net 20,215 25,658 Reorganization value in excess of
amounts allocable to identifiable assets, net 41,580 41,580 Other
assets, net 258,659 242,626 ------- ------- 2,335,727 2,012,457
--------- --------- Mortgage Banking: Cash and cash equivalents
1,461 1,217 Mortgage loans held for sale, net 40,097 72,488
Property and equipment, net 446 759 Reorganization value in excess
of amounts allocable to identifiable assets, net 7,347 7,347 Other
assets 10,692 8,968 ------ ----- 60,043 90,779 ------ ------ Total
assets $2,395,770 $2,103,236 ========== ========== (Continued) NVR,
Inc. Consolidated Balance Sheets (Continued) (in thousands, except
share and per share data) December 31, December 31, 2009 2008
------------- ------------- LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding: Accounts payable $120,464 $137,285 Accrued expenses
and other liabilities 221,352 194,869 Liabilities related to
consolidated assets not owned 65,915 109,439 Customer deposits
63,591 59,623 Other term debt 2,166 2,530 Senior notes 133,370
163,320 ------- ------- 606,858 667,066 ------- ------- Mortgage
Banking: Accounts payable and other liabilities 19,306 17,842 Notes
payable 12,344 44,539 ------ ------ 31,650 62,381 ------ ------
Total liabilities 638,508 729,447 ------- ------- 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 December 31, 2009 and December 31, 2008, respectively
206 206 Additional paid-in capital 830,531 722,265 Deferred
compensation trust - 265,278 and 514,470 shares of NVR, Inc. common
stock for December 31, 2009 and December 31, 2008, respectively
(40,799) (74,978) Deferred compensation liability 40,799 74,978
Retained earnings 3,823,067 3,630,887 Less treasury stock at cost -
14,609,560 and 15,028,335 shares for December 31, 2009 and December
31, 2008, respectively (2,896,542) (2,979,569) ----------
---------- Total shareholders' equity 1,757,262 1,373,789 ---------
--------- Total liabilities and shareholders' equity $2,395,770
$2,103,236 ========== ========== NVR, Inc. Operating Activity
(unaudited) (dollars in thousands) Three Months Ended Twelve Months
Ended December 31, December 31, ------------ ------------ 2009 2008
2009 2008 ---- ---- ---- ---- Homebuilding data: New orders
(units): Mid Atlantic (1) 986 692 4,809 4,290 North East (2) 201
159 904 884 Mid East (3) 545 360 2,552 2,380 South East (4) 268 146
1,144 1,206 --- --- ----- ----- Total 2,000 1,357 9,409 8,760 =====
===== ===== ===== Average new order price $297.8 $296.0 $292.7
$311.3 Settlements (units): Mid Atlantic (1) 1,349 1,389 4,722
5,240 North East (2) 241 273 882 1,086 Mid East (3) 655 750 2,323
2,762 South East (4) 305 364 1,115 1,653 --- --- ----- ----- Total
2,550 2,776 9,042 10,741 ===== ===== ===== ====== Average
settlement price $286.2 $323.6 $296.4 $338.4 Backlog (units): Mid
Atlantic (1) 1,863 1,776 North East (2) 325 303 Mid East (3) 960
731 South East (4) 383 354 --- --- Total 3,531 3,164 ===== =====
Average backlog price $304.9 $316.9 Community count (average) 352
397 355 427 Lots controlled at end of year 46,300 45,000 Mortgage
banking data: Loan closings $542,147 $623,623 $2,060,376 $2,351,341
Capture rate 90% 89% 91% 85% Common stock information: Shares
outstanding at end of year 5,950,111 5,532,852 (1) Virginia, West
Virginia, Maryland and Delaware (2) Eastern Pennsylvania and New
Jersey (3) Western Pennsylvania, Kentucky, New York, Ohio, and
Indiana (4) North Carolina, South Carolina, Tennessee, and Florida
DATASOURCE: NVR, Inc. CONTACT: Dan Malzahn, +1-703-956-4204 Web
Site: http://www.nvrinc.com/
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