NVR, Inc.
NVR, Inc. is a home construction company.
It also operates a mortgage banking and title services business.
The company primarily operates on the East Coast of the United States, but its operations encompass 14 states as well as Washington, D.C.
Employees: 6,600
Revenue: $10.045B for FY2022
HQ Location: Reston, Virginia, U.S.
What they do:
Their primary business is the construction and sale of single-family detached homes, townhomes, and condominium buildings, all of which are primarily constructed on a pre-sold basis.
To more fully serve customers of their homebuilding operations, they also operate a mortgage banking and title services business.
Their vision and priorities:
To serve the needs of NVR homebuyers
Things to know right now
The Company serves homebuyers in thirty-five metropolitan areas in fifteen states, including, Maryland, New York, North Carolina, Virginia, Ohio, Indiana, Illinois, South Carolina, Pennsylvania, Tennessee, Georgia, Florida, Delaware, West Virginia, and New Jersey, as well as Washington DC.
Competitors
D.R. Horton
Micron Technology
Ellucian
Toll Brothers
KB Home
What does each business segment do?
Homebuilding Units
The Company’s homebuilding operations sell and construct homes under three brand names:
Ryan Homes – This brand name offers a variety of home-buying options to suit a broad spectrum of consumer needs, whether single-family, townhouse, or garden condominium.
NVHomes - This brand name offers additional architectural details and designer elements tailored to suit the individual’s tastes.
Heartland Homes - This brand name is a leading homebuilder and markets primarily luxury homes.
Their construction brands are also supported by their Building Products Operation which supplies structural building components which are made to the exact requirements in a controlled environment and are then delivered to the job site.
Mortgage Banking
NVR Mortgage – The mortgage subsidiary offers mortgage services in all markets in which homebuilding operates to all NVR home buyers.
NVR Settlement Services – This mortgage subsidiary, provides a complete range of settlement and title services to support NVR’s homebuilding operations.
Their financial calendar
Q1: January - March - Earnings 26th April 2023
Q2: April - June - Earnings 26th July 2023
Q3: July - September - Earnings 25th October 2023
Q4: October - December - Earnings 31st January 2024
Next Earnings Report:
Around 26th April 2023
Positives from the last earnings report:
Net income for its fourth quarter ended at $454.8 million an increase of 36%
Diluted earnings per share for the fourth quarter increased 50% from this quarter last year.
Consolidated revenues for the fourth quarter of 2022 totaled $2.71 billion, which increased 22% from $2.23 billion in the fourth quarter of 2021.
Consolidated revenues were $10.53 billion, an 18% increase from $8.95 billion reported in 2021.
Net income for the year was $1.73 billion, an increase of 40% when compared to net income for the year 2021.
Diluted earnings per share were $491.82, an increase of 53% from 2021.
Per Business Segment:
Homebuilding
The average sales price of new orders in the fourth quarter of 2022 was $459,000, an increase of 1% when compared with the fourth quarter of 2021.
Settlements in the fourth quarter of 2022 increased by 13% to 5,749 units, compared to 5,100 units in the fourth quarter of 2021.
The average settlement price in the fourth quarter of 2022 was $464,000, an increase of 9% from the fourth quarter of 2021.
Homebuilding revenues of $2.67 billion in the fourth quarter of 2022 increased by 23% compared to homebuilding revenues of $2.18 billion in the fourth quarter of 2021.
Gross profit margin in the fourth quarter of 2022 increased to 25.3%, compared to 24.4% in the fourth quarter of 2021. In the fourth quarter of 2022, gross profit was impacted by contract land deposit impairments of approximately $25.0 million, or 94 basis points as a percentage of revenue.
Settlements for the year, increased by 6% to 22,732 units, compared to 21,540 units settled in 2021.
Homebuilding revenues for the year totaled $10.33 billion, a 19% increase from 2021.
Gross profit margin for the year increased to 25.8%, compared to 22.3% in 2021.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2022 totaled $1.52 billion, an increase of 3% when compared to the fourth quarter of 2021.
Income before tax from the mortgage banking segment totaled $26.4 million in the fourth quarter of 2022, a decrease of 24% when compared to $34.8 million in the fourth quarter of 2021. This decrease was primarily attributable to a decrease in secondary marketing gains.
Mortgage closed loan production for the year increased 4% to $6.31 billion.
Income before tax from the mortgage banking segment for the year decreased 29% to $122.2 million from $171.6 million in 2021.
Challenges from the last earnings report:
Per Business Segment:
Homebuilding
New orders in the fourth quarter of 2022 decreased by 27% to 4,153 units, when compared to 5,685 units in the fourth quarter of 2021
Their backlog of homes sold but not settled decreased on a unit basis by 28% to 9,162 units and decreased on a dollar basis by 25% to $4.33 billion when compared to the respective backlog for the same time in 2021.
The cancellation rate in the fourth quarter of 2022 was 18% compared to 10% in the fourth quarter of 2021.
Income before tax from the homebuilding segment totaled $548.3 million in the fourth quarter of 2022, an increase of 40% when compared to the fourth quarter of 2021.
New orders for the quarter decreased by 16% to 19,164 units, compared to 22,721 units in 2021.
Income before tax for the homebuilding segment increased 50% for the year to $2.13 billion, compared to $1.42 billion in 2021.