NVR, Inc. Announces First Quarter Results

NVR, Inc., one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2022 of $426.1 million, or $116.56 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2022 increased 71% and 84%, respectively, when compared to 2021 first quarter net income of $248.8 million, or $63.21 per diluted share. Consolidated revenues for the first quarter of 2022 totaled $2.38 billion, which increased 17% from $2.04 billion in the first quarter of 2021.

Homebuilding

New orders in the first quarter of 2022 decreased by 6% to 5,927 units, when compared to 6,314 units in the first quarter of 2021. The average sales price of new orders in the first quarter of 2022 was $465,700, an increase of 13% when compared with the first quarter of 2021. The first quarter cancellation rate was 10% for both 2022 and 2021. Settlements in the first quarter of 2022 increased by 3% to 5,214 units, compared to 5,072 units in the first quarter of 2021. The average settlement price in the first quarter of 2022 was $442,900, an increase of 14% from the first quarter of 2021. Our backlog of homes sold but not settled as of March 31, 2022 increased on a unit basis by 5% to 13,443 units and increased on a dollar basis by 20% to $6.23 billion when compared to the respective backlog unit and dollar balances as of March 31, 2021.

Homebuilding revenues of $2.31 billion in the first quarter of 2022 increased by 18% compared to homebuilding revenues of $1.96 billion in the first quarter of 2021. Gross profit margin in the first quarter of 2022 increased to 28.5%, compared to 19.7% in the first quarter of 2021. Gross profit margins were favorably impacted by the aforementioned increase in the average price of settlements in the first quarter of 2022, coupled with lower lumber prices quarter over quarter. Income before tax from the homebuilding segment totaled $516.9 million in the first quarter of 2022, an increase of 104% when compared to the first quarter of 2021.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2022 totaled $1.48 billion, an increase of 5% when compared to the first quarter of 2021. Income before tax from the mortgage banking segment totaled $49.1 million in the first quarter of 2022, a decrease of 16% when compared to $58.6 million in the first quarter of 2021.

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2022 was 24.7% compared to 20.3% for the three months ended March 31, 2021. The increase in the effective tax rate in the first quarter of 2022 is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $8.4 million and $17.4 million for the three months ended March 31, 2022 and March 31, 2021, respectively.

For the complete press release, click here.

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-four 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.

Contact:

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

Source: NVR, Inc