nvr-20210331

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, 2021


☐			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, 2021 there were 3,636,606 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	30
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, 2021		December 31, 2020
ASSETS
Homebuilding:
Cash and cash equivalents	$	2,753,123	$	2,714,720
Restricted cash	36,193		28,912
Receivables	22,059		18,299
Inventory:
Lots and housing units, covered under sales agreements with customers	1,623,941		1,484,936
Unsold lots and housing units	116,141		123,197
Land under development	63,153		62,790
Building materials and other	26,557		38,159
	1,829,792		1,709,082

Contract land deposits, net	396,903		387,628
Property, plant and equipment, net	55,720		57,786
Operating lease right-of-use assets	50,770		53,110
Reorganization value in excess of amounts allocable to identifiable assets, net	41,580		41,580
Other assets	219,479		203,399
	5,405,619		5,214,516
Mortgage Banking:
Cash and cash equivalents	21,061		63,547
Restricted cash	3,867		2,334
Mortgage loans held for sale, net	334,782		449,760
Property and equipment, net	4,460		4,544
Operating lease right-of-use assets	12,087		12,439
Reorganization value in excess of amounts allocable to identifiable assets, net	7,347		7,347
Other assets	31,585		22,654
	415,189		562,625
Total assets	$	5,820,808	$	5,777,141

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, 2021		December 31, 2020
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	360,881	$	339,867
Accrued expenses and other liabilities	458,849		440,671
Customer deposits	314,453		240,758
Operating lease liabilities	56,697		59,357
Senior notes	1,517,114		1,517,395
	2,707,994		2,598,048
Mortgage Banking:
Accounts payable and other liabilities	53,335		62,720
Operating lease liabilities	12,972		13,299
	66,307		76,019
Total liabilities	2,774,301		2,674,067

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, 2021 and December 31, 2020	206		206
Additional paid-in capital	2,272,006		2,214,426
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of March 31, 2021 and December 31, 2020	(16,710)		(16,710)
Deferred compensation liability	16,710		16,710
Retained earnings	9,059,882		8,811,120
Less treasury stock at cost – 16,915,721 and 16,859,753 shares as of March 31, 2021 and December 31, 2020, respectively	(8,285,587)		(7,922,678)
Total shareholders' equity	3,046,507		3,103,074
Total liabilities and shareholders' equity	$	5,820,808	$	5,777,141

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,
		2021		2020
Homebuilding:
Revenues		$	1,963,711	$	1,555,707
Other income		1,586		5,336
Cost of sales		(1,577,453)		(1,294,743)
Selling, general and administrative		(121,419)		(110,167)
Operating income		266,425		156,133
Interest expense		(13,006)		(6,214)
Homebuilding income		253,419		149,919

Mortgage Banking:
Mortgage banking fees		77,735		26,821
Interest income		2,032		2,469
Other income		867		649
General and administrative		(21,656)		(18,211)
Interest expense		(391)		(272)
Mortgage banking income		58,587		11,456

Income before taxes		312,006		161,375
Income tax benefit (expense)		(63,244)		14,328

Net income		$	248,762	$	175,703

Basic earnings per share		$	67.72	$	47.97

Diluted earnings per share		$	63.21	$	44.96

Basic weighted average shares outstanding		3,673		3,663

Diluted weighted average shares outstanding		3,935		3,908

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,
	2021		2020
Cash flows from operating activities:
Net income	$	248,762	$	175,703
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,203		5,622
Equity-based compensation expense	14,471		7,492
Contract land deposit and other (recoveries) impairments, net	(6,183)		36,336
Gain on sale of loans, net	(67,550)		(18,400)
Mortgage loans closed	(1,413,988)		(1,133,283)
Mortgage loans sold and principal payments on mortgage loans held for sale	1,583,701		1,228,025

Net change in assets and liabilities:
Increase in inventory	(120,710)		(

SEC Form 10-Q filed by NVR, Inc.