NVR » Topics » Overview

This excerpt taken from the NVR 10-Q filed Nov 3, 2005.

Overview

 

Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings. To fully serve our homebuilding customers, we also operate a mortgage banking and title services business. We primarily conduct our operations in mature supply-constrained markets. Specifically, we operate in the following markets:

 

Washington:   Washington, D.C. metropolitan area and adjacent counties in Maryland, Virginia, and West Virginia
Baltimore:   Baltimore, MD metropolitan area and adjacent counties in Pennsylvania
North:   Delaware, Maryland Eastern Shore, New Jersey, New York, Ohio and Pennsylvania
South:   North Carolina, South Carolina, Tennessee and Richmond, VA

 

We believe that we operate our business with a conservative operating strategy. We do not engage in land development and primarily construct homes on a pre-sold basis. This strategy allows us to maximize inventory turnover, which enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital. In addition, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets which management believes contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets.

 

17


Table of Contents

Because we are not active in the land development business, our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build, and on our developers’ ability to timely deliver finished lots to meet the sales demands of our customers. We acquire finished building lots at market prices from various development entities under fixed price purchase agreements (“purchase agreements”). These purchase agreements require deposits in the form of cash or letters of credit that may be forfeited if we fail to perform under the purchase agreement. However, we believe this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and development. As of September 30, 2005, through these purchase agreements, we controlled approximately 99,000 lots with deposits in cash and letters of credit totaling approximately $543,000 and $16,500, respectively. We also controlled approximately 1,000 lots through investments in joint venture limited liability corporations.

 

For the quarter ended September 30, 2005, net income and diluted earnings per share each increased 28% as compared to the same period in 2004. These increases were driven primarily by an 18% increase in our homebuilding revenues in the third quarter of 2005 as compared to the third quarter of 2004, as the average price of homes settled and the number of home settlements increased approximately 13% and 4%, respectively, quarter over quarter. Additionally, new orders for the quarter were 7% higher than the same period in 2004, and backlog units and dollars at September 30, 2005 were higher by 14% and 30%, respectively, from September 30, 2004.

 

This excerpt taken from the NVR 10-Q filed Jul 29, 2005.

Overview

 

Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings. To fully serve our homebuilding customers, we also operate a mortgage banking and title services business. We operate in the following markets:

 

Washington:   Washington, D.C. metropolitan area and adjacent counties in Maryland, Virginia, and West Virginia
Baltimore:   Baltimore, MD metropolitan area and adjacent counties in Pennsylvania
North:   Delaware, Maryland Eastern Shore, New Jersey, New York, Ohio and Pennsylvania
South:   North Carolina, South Carolina, Tennessee and Richmond, VA

 

We believe that we operate our business with a conservative operating strategy. We do not engage in land development and primarily construct homes on a pre-sold basis. This strategy allows us to maximize inventory turnover, which enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital. In addition, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets which management believes contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets.

 

16


Table of Contents

Because we are not active in the land development business, our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build, and on our developers’ ability to deliver finished lots to timely meet the sales demands of our customers. We acquire finished building lots at market prices from various development entities under fixed price purchase agreements (“purchase agreements”). These purchase agreements require deposits in the form of cash or letters of credit that may be forfeited if we fail to perform under the purchase agreement. However, this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and development. As of June 30, 2005, through these purchase agreements, we controlled approximately 96,000 lots, an increase of approximately 7,400 lots from March 31, 2005, with deposits in cash and letters of credit totaling approximately $504,000 and $12,700, respectively. We also controlled approximately 900 lots through investments in joint venture limited liability corporations.

 

For the quarter ended June 30, 2005, net income and diluted earnings per share increased 45% as compared to the same period in 2004. These increases were driven by an increased number of settlements and an increase in the average price of homes settled quarter over quarter in our homebuilding operations. New orders for the quarter exceeded the second quarter of 2004 by 21%, contributing to the 13% increase in backlog units as of June 30, 2005 from June 30, 2004 to 9,554 with a value of approximately $4,000,000.

 

For the six months ended June 30, 2005, consolidated revenues and net income increased 19% and 32%, respectively, from the same period in 2004. The increase in net income resulted in a 30% increase in diluted earnings per share for the year to date period ended June 30, 2005 from the same period in 2004.

 

This excerpt taken from the NVR 10-Q filed May 5, 2005.

Overview

 

Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings. To fully serve our homebuilding customers, we also operate a mortgage banking and title services business. We operate in the following markets:

 

Washington:   Washington, D.C. metropolitan area and adjacent counties in Maryland, Virginia, and West Virginia
Baltimore:   Baltimore, MD metropolitan area and adjacent counties in Pennsylvania
North:   Delaware, Maryland Eastern Shore, New Jersey, New York, Ohio and Pennsylvania
South:   North Carolina, South Carolina, Tennessee and Richmond, VA

 

We believe that we operate our business with a conservative operating strategy. We do not engage in land development and primarily construct homes on a pre-sold basis. This strategy allows us to maximize inventory turnover, which enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital. In addition, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets which management believes contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets.

 

14


Table of Contents

Because we are not active in the land development business, our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build, and on our developers’ ability to deliver finished lots timely to meet the sales demands of our customers. We acquire finished building lots at market prices from various development entities under fixed price purchase agreements (“purchase agreements”). These purchase agreements require deposits in the form of cash or letters of credit that may be forfeited if we fail to perform under the purchase agreement. However, this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and development. As of March 31, 2005, we controlled approximately 88,600 lots with deposits in cash and letters of credit totaling approximately $443,000 and $12,600, respectively.

 

Consolidated revenues and net income for the quarter ended March 31, 2005 increased 9% and 17%, respectively, from the same period in 2004. The increase in net income resulted in a 14% increase in diluted earnings per share in the first quarter of 2005 as compared to the first quarter of 2004.

 

This excerpt taken from the NVR 10-K filed Feb 28, 2005.

Overview

 

Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings. To fully serve our homebuilding customers, we also operate a mortgage banking and title services business. We operate in the following markets:

 

Washington:    Washington, D.C. metropolitan area and adjacent counties in Maryland, Virginia and West Virginia
Baltimore:    Baltimore, MD metropolitan area and adjacent counties in Pennsylvania
North:    Delaware, New Jersey, New York, Ohio and Pennsylvania
South:    North Carolina, South Carolina, Tennessee and Richmond, VA

 

We believe we operate our business with a conservative operating strategy. We do not engage in land development and primarily construct homes on a pre-sold basis. This strategy allows us to maximize

 

12


Table of Contents

inventory turnover, which enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital. In addition, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets which we believe contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets.

 

Because we are not active in the land development business, our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build, and on our developers’ ability to deliver finished lots to timely meet the sales demands of our customers. We acquire finished building lots at market prices from various development entities under fixed-price purchase agreements (“purchase agreements”). These purchase agreements require deposits in the form of cash or letters of credit that may be forfeited if we fail to perform under the purchase agreement. However, this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and development. As of December 31, 2004, we controlled approximately 83,500 lots with deposits in cash and letters of credit totaling approximately $404,000 and $13,000, respectively. We also controlled approximately 950 lots through investments in joint venture limited liability corporations.

 

Consolidated revenues and net income for 2004 increased 17% and 25%, respectively, from 2003. The increase in net income coupled with our continuing share repurchase program resulted in a 37% increase in diluted earnings per share in 2004 compared to 2003.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki