NVR(US:NVR)2024-11-05 18:57Financial Performance - Consolidated revenues for Q3 2024 totaled $2,732,951, a 6% increase from Q3 2023[93]. - Net income for Q3 2024 was $429,323, or $130.50 per diluted share, with net income decreasing by 1% compared to Q3 2023[93]. - Homebuilding revenues increased by 7% in Q3 2024, primarily due to a 5% increase in the number of units settled[95]. - Homebuilding consolidated gross profit for the three months ended September 30, 2024, was $626,553, an increase of 2% from $610,235 in the same period of 2023[138]. - Homebuilding consolidated income before taxes for the nine months ended September 30, 2024, was $1,433,881, up 7% from $1,341,267 in the prior year[139]. Orders and Backlog - New orders increased by 19% in Q3 2024 compared to Q3 2023, with a new order cancellation rate rising to 14.5%[93][98]. - As of September 30, 2024, the backlog increased by 9% to 11,339 units and by 11% to $5,323,366 compared to the previous year[102]. - New Orders in the North East segment increased by 20% in the third quarter of 2024 compared to the third quarter of 2023[124]. - New orders, net of cancellations, totaled 5,650 units in Q3 2024, an increase from 4,746 units in Q3 2023[114]. Profit Margins and Expenses - Homebuilding gross profit margin percentage decreased to 23.4% in Q3 2024 from 24.3% in Q3 2023, impacted by higher lot costs[93][95]. - SG&A expenses in Q3 2024 increased by approximately $7,100 compared to Q3 2023, but as a percentage of revenue decreased to 5.6%[96]. - Segment profit for the Mid Atlantic was $214,132 in Q3 2024, compared to $212,826 in Q3 2023[113]. - Segment profit for the three months ended September 30, 2024, decreased by approximately $3,800, or 9%, from the same period in 2023, primarily due to increased general and administrative expenses[145]. Inventory and Land Management - The company controlled approximately 151,800 lots as of September 30, 2024, with 144,400 lots under Lot Purchase Agreements[88]. - Total sold inventory increased to $1,968,480,000 as of September 30, 2024, from $1,698,244,000 as of December 31, 2023, representing a 15.9% increase[117]. - Total unsold lots and housing units inventory rose to $225,950,000 as of September 30, 2024, compared to $216,481,000 as of December 31, 2023, marking a 4.3% increase[117]. - Contract land deposits, net, increased to $678,832,000 as of September 30, 2024, from $584,200,000 as of December 31, 2023, indicating a 16.2% rise[118]. Cash Flow and Financing - For the nine months ended September 30, 2024, net cash provided by operating activities was $737,412, primarily due to cash provided by earnings[160]. - Cash used in investing activities for the nine months ended September 30, 2024 was $19,797, mainly for purchases of property, plant, and equipment totaling $23,621[161]. - Net cash used in financing activities was $1,364,392 for the nine months ended September 30, 2024, including repurchase of 192,655 shares at an aggregate price of $1,493,362[162]. - The company experienced a decrease in cash, restricted cash, and cash equivalents by $646,777 for the nine months ended September 30, 2024[160]. Market and Segment Performance - Revenues for the Mid Atlantic segment were $1,147,893 in Q3 2024, slightly up from $1,146,559 in Q3 2023[110]. - The gross profit margin for the North East segment improved to 26.0% in Q3 2024 from 25.3% in Q3 2023[111]. - The Mid Atlantic segment's profit increased by approximately $46,100,000, or 8%, in the first nine months of 2024 compared to the same period in 2023[121]. - The North East segment's profit rose by approximately $31,700,000, or 25%, in the first nine months of 2024 compared to the same period in 2023[125]. - The South East segment experienced a decrease in profit of approximately $58,800,000, or 17%, in the first nine months of 2024 compared to the same period in 2023[134]. Tax and Credit Facilities - The effective tax rate for the three months ended September 30, 2024, was 20.3%, compared to 19.7% for the same period in 2023[148]. - As of September 30, 2024, the company had approximately $2,500,000 in cash and cash equivalents, with $282,900 in unused committed capacity under its revolving credit facility[150]. - The unsecured revolving credit agreement provides for aggregate revolving loan commitments of $300,000, with no borrowings outstanding as of September 30, 2024[157]. - The unsecured revolving mortgage repurchase facility allows for borrowings up to $150,000, with no borrowings outstanding as of September 30, 2024[158].