NVR(US:NVR)2022-08-03 18:56Financial Performance - Homebuilding revenues for the three months ended June 30, 2022, were $2,610,062 thousand, an increase of 17.4% compared to $2,224,560 thousand for the same period in 2021[15]. - Net income for the six months ended June 30, 2022, was $859,414 thousand, up 50.6% from $570,057 thousand for the same period in 2021[15]. - Basic earnings per share increased to $131.84 for the three months ended June 30, 2022, compared to $88.69 for the same period in 2021, reflecting a growth of 48.6%[15]. - Operating income for the six months ended June 30, 2022, was $1,086,490 thousand, an increase of 65.2% compared to $657,538 thousand for the same period in 2021[15]. - Total consolidated revenues for the three months ended June 30, 2022, were $2,658,943, an increase of 16.5% compared to $2,283,598 in the same period of 2021[68]. - Net income for Q2 2022 was $433,314, or $123.65 per diluted share, representing increases of 35% and 50% compared to Q2 2021[114]. - Homebuilding gross profit margin percentage increased to 26.3% in Q2 2022 from 22.6% in Q2 2021[114]. - Homebuilding consolidated income before taxes for Q2 2022 was $544,947, a 44% increase from $378,263 in Q2 2021[159]. Assets and Liabilities - Total assets decreased from $5,834,475 thousand as of December 31, 2021, to $5,287,699 thousand as of June 30, 2022, representing a decline of approximately 9.4%[9]. - Total liabilities decreased from $2,832,097 thousand as of December 31, 2021, to $2,296,033 thousand as of June 30, 2022, a reduction of approximately 18.9%[12]. - Cash and cash equivalents decreased from $2,809,782 thousand at the beginning of the period to $1,563,959 thousand at the end of the period, a decrease of 44.4%[18]. - Cash, restricted cash, and cash equivalents decreased by $1,073,025 during the six months ended June 30, 2022, ending the period at $1,563,959[17]. - The balance of shareholders' equity as of June 30, 2022, was $2,991,666, reflecting an increase from $3,002,378 at the end of 2021[57]. Customer Deposits and Contract Liabilities - The increase in customer deposits was $21,656 thousand for the six months ended June 30, 2022, compared to an increase of $124,685 thousand for the same period in 2021[18]. - As of June 30, 2022, the company had contract liabilities of $439,119, an increase from $417,463 as of December 31, 2021, indicating a growth in customer deposits[22]. - The company expects to recognize substantially all customer deposits held at December 31, 2021, in revenue during 2022[22]. Stock and Equity-Based Compensation - The company repurchased treasury stock amounting to $1,015,703 thousand during the six months ended June 30, 2022[18]. - The company repurchased 61,078 and 207,132 shares of common stock during the three and six months ended June 30, 2022, respectively[57]. - The weighted average number of shares outstanding used to calculate basic EPS for the three months ended June 30, 2022, was 3,286,574, down from 3,622,635 in 2021[41]. - The total unrecognized compensation cost for all outstanding options and RSUs as of June 30, 2022, was approximately $406,545, expected to be recognized over an average period of 2.8 years[54]. - Equity-based compensation costs recognized during the three and six months ended June 30, 2022, were $20,087 and $31,755, respectively, compared to $13,379 and $27,850 for the same periods in 2021[53]. Segment Performance - Total segment profit before taxes for the six months ended June 30, 2022, was $1,065,622, representing a 55.7% increase from $684,631 in the same period of 2021[68]. - Homebuilding profit before tax for the Mid Atlantic segment increased to $251,739 for the three months ended June 30, 2022, up 44.3% from $174,481 in 2021[68]. - The North East segment saw a segment profit increase of approximately $19,800, or 92%, in Q2 2022 compared to Q2 2021, with revenues increasing by approximately $44,100, or 23%[144]. - The South East segment reported a segment profit increase of approximately $71,900, or 91%, in Q2 2022 compared to Q2 2021, with revenues rising by approximately $138,600, or 27%[153]. New Orders and Sales - New orders decreased by 16% in Q2 2022 compared to Q2 2021, with an average sales price for new orders of $471.6, a 7% increase[114]. - The average settlement price in Q2 2022 was $448.4, a 14% increase compared to Q2 2021[115]. - The cancellation rate for new orders was approximately 12% in the first six months of 2022, up from 9% in the same period in 2021[125]. - The average sales price of new orders increased by 10% during the six-month period ended June 30, 2022, compared to the same period in 2021[124]. Mortgage Banking - Mortgage banking income for the three months ended June 30, 2022, was $29,065 thousand, down 25.8% from $39,202 thousand for the same period in 2021[15]. - Segment profit for mortgage banking decreased by approximately $11,600, or 29%, in Q2 2022 compared to Q2 2021[162]. - The mortgage banking capture rate for Q2 2022 was 84%, down from 89% in Q2 2021[161]. Other Financial Metrics - The effective tax rate for the three months ended June 30, 2022, was 24.5%, compared to 23.0% for the same period in 2021[99]. - The corporate capital allocation charge for the total segments was $77,512 for the three months ended June 30, 2022, compared to $63,032 in 2021, an increase of 23.0%[71]. - The company recorded unrealized losses from the change in fair value measurements, impacting future earnings due to servicing rights and interest rate movements[85].