nvr-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 1-12378

NVR, Inc.

(Exact name of registrant as specified in its charter)


Virginia						54-1394360
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

11700 Plaza America Drive, Suite 500

Reston, Virginia 20190

(703) 956-4000

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

Not Applicable

(Former name, former address, and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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 Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2022 there were 3,289,666 total shares of common stock outstanding.

NVR, Inc.

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I	FINANCIAL INFORMATION	1

Item 1.	Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets (unaudited)	1
	Condensed Consolidated Statements of Income (unaudited)	3
	Condensed Consolidated Statements of Cash Flows (unaudited)	4
	Notes to Condensed Consolidated Financial Statements (unaudited)	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	29
Item 4.	Controls and Procedures	30


PART II	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	32

	SIGNATURE	33

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


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

	March 31, 2022		December 31, 2021
ASSETS
Homebuilding:
Cash and cash equivalents	$	2,138,706	$	2,545,069
Restricted cash	65,562		60,730
Receivables	23,471		18,552
Inventory:
Lots and housing units, covered under sales agreements with customers	1,997,115		1,777,862
Unsold lots and housing units	142,015		127,434
Land under development	14,668		12,147
Building materials and other	39,841		29,923
	2,193,639		1,947,366

Contract land deposits, net	512,042		497,139
Property, plant and equipment, net	56,829		56,979
Operating lease right-of-use assets	59,819		59,010
Reorganization value in excess of amounts allocable to identifiable assets, net	41,580		41,580
Other assets	220,675		229,018
	5,312,323		5,455,443
Mortgage Banking:
Cash and cash equivalents	19,157		28,398
Restricted cash	3,402		2,519
Mortgage loans held for sale, net	312,726		302,192
Property and equipment, net	3,386		3,658
Operating lease right-of-use assets	8,491		9,758
Reorganization value in excess of amounts allocable to identifiable assets, net	7,347		7,347
Other assets	59,381		25,160
	413,890		379,032
Total assets	$	5,726,213	$	5,834,475

See notes to condensed consolidated financial statements.


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

	March 31, 2022		December 31, 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	398,516	$	336,560
Accrued expenses and other liabilities	501,091		435,860
Customer deposits	453,178		417,463
Operating lease liabilities	64,546		64,128
Senior notes	1,515,964		1,516,255
	2,933,295		2,770,266
Mortgage Banking:
Accounts payable and other liabilities	58,098		51,394
Operating lease liabilities	9,221		10,437
	67,319		61,831
Total liabilities	3,000,614		2,832,097

Commitments and contingencies

Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2022 and December 31, 2021	206		206
Additional paid-in capital	2,416,660		2,378,191
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both March 31, 2022 and December 31, 2021	(16,710)		(16,710)
Deferred compensation liability	16,710		16,710
Retained earnings	10,473,939		10,047,839
Less treasury stock at cost – 17,240,495 and 17,107,889 shares as of March 31, 2022 and December 31, 2021, respectively	(10,165,206)		(9,423,858)
Total shareholders' equity	2,725,599		3,002,378
Total liabilities and shareholders' equity	$	5,726,213	$	5,834,475

See notes to condensed consolidated financial statements.

Table of Contents

NVR, Inc.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)


	Three Months Ended March 31,
		2022		2021
Homebuilding:
Revenues		$	2,309,227	$	1,963,711
Other income		1,339		1,586
Cost of sales		(1,651,365)		(1,577,453)
Selling, general and administrative		(129,510)		(121,419)
Operating income		529,691		266,425
Interest expense		(12,804)		(13,006)
Homebuilding income		516,887		253,419

Mortgage Banking:
Mortgage banking fees		69,182		77,735
Interest income		2,074		2,032
Other income		1,072		867
General and administrative		(22,908)		(21,656)
Interest expense		(362)		(391)
Mortgage banking income		49,058		58,587

Income before taxes		565,945		312,006
Income tax benefit (expense)		(139,845)		(63,244)

Net income		$	426,100	$	248,762

Basic earnings per share		$	125.87	$	67.72

Diluted earnings per share		$	116.56	$	63.21

Basic weighted average shares outstanding		3,385		3,673

Diluted weighted average shares outstanding		3,656		3,935

See notes to condensed consolidated financial statements.

Table of Contents

NVR, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net income	$	426,100	$	248,762
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,460		5,203
Equity-based compensation expense	11,668		14,471
Contract land deposit recoveries, net	(5,924)		(6,183)
Gain on sale of loans, net	(57,978)		(67,550)
Mortgage loans closed	(1,484,771)		(1,413,988)
Mortgage loans sold and principal payments on mortgage loans held for sale	1,511,850		1,583,701
Distribution of earnings from unconsolidated joint ventures	2,000		—
Net change in assets and liabilities:
Increase in inventory	(246,273)		(120,710)
Increase in contract land deposits	(8,979)		(3,092)
Increase in receivables	(

SEC Form 10-Q filed by NVR Inc.