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Published: 2023-01-31 00:00:00 ET
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Exhibit 99.1
NVR, INC. ANNOUNCES FOURTH QUARTER RESULTS

January 31, 2023, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December 31, 2022 of $454.8 million, or $133.44 per diluted share. Net income and diluted earnings per share for the fourth quarter ended December 31, 2022 increased 36% and 50%, respectively, when compared to 2021 fourth quarter net income of $334.6 million, or $89.09 per diluted share. Consolidated revenues for the fourth quarter of 2022 totaled $2.71 billion, which increased 22% from $2.23 billion in the fourth quarter of 2021.
For the year ended December 31, 2022, consolidated revenues were $10.53 billion, an 18% increase from $8.95 billion reported in 2021. Net income for the year ended December 31, 2022 was $1.73 billion, an increase of 40% when compared to net income for the year ended December 31, 2021 of $1.24 billion. Diluted earnings per share for the year ended December 31, 2022 was $491.82, an increase of 53% from $320.48 per diluted share for 2021.
Homebuilding
New orders in the fourth quarter of 2022 decreased by 27% to 4,153 units, when compared to 5,685 units in the fourth quarter of 2021. The average sales price of new orders in the fourth quarter of 2022 was $459,000, an increase of 1% when compared with the fourth quarter of 2021. The cancellation rate in the fourth quarter of 2022 was 18% compared to 10% in the fourth quarter of 2021. Settlements in the fourth quarter of 2022 increased by 13% to 5,749 units, compared to 5,100 units in the fourth quarter of 2021. The average settlement price in the fourth quarter of 2022 was $464,000, an increase of 9% from the fourth quarter of 2021. Our backlog of homes sold but not settled as of December 31, 2022 decreased on a unit basis by 28% to 9,162 units and decreased on a dollar basis by 25% to $4.33 billion when compared to the respective backlog unit and dollar balances as of December 31, 2021.
Homebuilding revenues of $2.67 billion in the fourth quarter of 2022 increased by 23% compared to homebuilding revenues of $2.18 billion in the fourth quarter of 2021. Gross profit margin in the fourth quarter of 2022 increased to 25.3%, compared to 24.4% in the fourth quarter of 2021. In the fourth quarter of 2022, gross profit was impacted by contract land deposit impairments of approximately $25.0 million, or 94 basis points as a percentage of revenue. Income before tax from the homebuilding segment totaled $548.3 million in the fourth quarter of 2022, an increase of 40% when compared to the fourth quarter of 2021.
New orders for the year ended December 31, 2022 decreased by 16% to 19,164 units, compared to 22,721 units in 2021. Settlements for the year ended December 31, 2022 increased by 6% to 22,732 units, compared to 21,540 units settled in 2021. Homebuilding revenues for the year ended December 31, 2022 totaled $10.33 billion, a 19% increase from 2021. Gross profit margin for the year ended December 31, 2022 increased to 25.8%, compared to 22.3% in 2021. Income before tax for the homebuilding segment increased 50% for the year ended December 31, 2022 to $2.13 billion, compared to $1.42 billion in 2021.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2022 totaled $1.52 billion, an increase of 3% when compared to the fourth quarter of 2021. Income before tax from the mortgage banking segment totaled $26.4 million in the fourth quarter of 2022, a decrease of 24% when compared to $34.8 million in the fourth quarter of 2021. This decrease was primarily attributable to a decrease in secondary marketing gains.
Mortgage closed loan production for the year ended December 31, 2022 increased 4% to $6.31 billion. Income before tax from the mortgage banking segment for the year ended December 31, 2022 decreased 29% to $122.2 million from $171.6 million in 2021.
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Effective Tax Rate
Our effective tax rate for the three and twelve months ended December 31, 2022 was 20.9% and 23.4%, respectively, compared to 21.6% and 22.2% for the three and twelve months ended December 31, 2021, respectively. The effective tax rates in each period were favorably impacted by the recognition of an income tax benefit related to excess tax benefits from stock option exercises totaling $22.6 million and $50.3 million for the three and twelve months ended December 31, 2022, respectively, and $10.5 million and $48.4 million for the three and twelve months ended December 31, 2021, respectively.

About NVR
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-five metropolitan areas in fifteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.
Some of the statements in this release made by the Company constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should” or “anticipates” or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR’s financial position, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: the impact of COVID-19 on the economy and related supply chain disruptions; general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR’s customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.
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NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)


Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
(unaudited)(unaudited)(unaudited)
Homebuilding:
Revenues$2,668,036 $2,176,807 $10,326,770 $8,701,693 
Other income21,592 1,845 37,038 6,559 
Cost of sales(1,993,722)(1,646,050)(7,662,271)(6,763,115)
Selling, general and administrative(140,995)(127,757)(532,353)(474,808)
Operating income554,911 404,845 2,169,184 1,470,329 
Interest expense(6,630)(12,836)(38,140)(51,530)
Homebuilding income548,281 392,009 2,131,044 1,418,799 
Mortgage Banking:
Mortgage banking fees44,146 53,534 199,664 249,332 
Interest income3,570 2,148 11,853 8,725 
Other income1,294 876 4,963 3,753 
General and administrative(22,300)(21,391)(92,946)(88,619)
Interest expense(269)(371)(1,384)(1,587)
Mortgage banking income26,441 34,796 122,150 171,604 
Income before taxes574,722 426,805 2,253,194 1,590,403 
Income tax expense(119,954)(92,224)(527,619)(353,684)
Net income$454,768 $334,581 $1,725,575 $1,236,719 
Basic earnings per share$141.82 $96.47 $525.20 $345.37 
Diluted earnings per share$133.44 $89.09 $491.82 $320.48 
Basic weighted average shares outstanding3,207 3,468 3,286 3,581 
Diluted weighted average shares outstanding3,408 3,755 3,509 3,859 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31, 2022December 31, 2021
(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents$2,503,424 $2,545,069 
Restricted cash48,455 60,730 
Receivables20,842 18,552 
Inventory:
Lots and housing units, covered under sales agreements with customers1,554,955 1,777,862 
Unsold lots and housing units181,952 127,434 
Land under development27,100 12,147 
Building materials and other24,268 29,923 
1,788,275 1,947,366 
Contract land deposits, net496,080 497,139 
Property, plant and equipment, net57,950 56,979 
Operating lease right-of-use assets71,081 59,010 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Deferred tax assets, net143,585 132,894 
Other assets75,898 96,124 
5,247,170 5,455,443 
Mortgage Banking:
Cash and cash equivalents19,415 28,398 
Restricted cash2,974 2,519 
Mortgage loans held for sale, net316,806 302,192 
Property and equipment, net3,559 3,658 
Operating lease right-of-use assets16,011 9,758 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets47,691 25,160 
413,803 379,032 
Total assets$5,660,973 $5,834,475 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
December 31, 2022December 31, 2021
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$334,016 $336,560 
Accrued expenses and other liabilities437,234 435,860 
Customer deposits313,804 417,463 
Operating lease liabilities75,818 64,128 
Senior notes914,888 1,516,255 
2,075,760 2,770,266 
Mortgage Banking:
Accounts payable and other liabilities61,396 51,394 
Operating lease liabilities16,968 10,437 
78,364 61,831 
Total liabilities2,154,124 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 December 31, 2022 and December 31, 2021206 206 
Additional paid-in capital2,600,014 2,378,191 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both December 31, 2022 and December 31, 2021(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings11,773,414 10,047,839 
Less treasury stock at cost – 17,336,397 and 17,107,889 shares as of December 31, 2022 and December 31, 2021, respectively(10,866,785)(9,423,858)
Total shareholders' equity3,506,849 3,002,378 
Total liabilities and shareholders' equity$5,660,973 $5,834,475 

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NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,

2022202120222021
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
New orders, net of cancellations:
Mid Atlantic (1)
1,836$525.0 2,344$529.3 7,816 $526.6 8,749 $522.4 
North East (2)
430$573.6 448$518.6 1,679 $528.3 1,685 $497.4 
Mid East (3)
741$381.8 1,262$382.3 4,344 $400.5 5,567 $369.3 
South East (4)
1,146$360.3 1,631$386.6 5,325 $399.4 6,720 $363.6 
Total
4,153$459.0 5,685$454.9 19,164 $462.8 22,721 $436.1 
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
Settlements:
Mid Atlantic (1)
2,153$526.6 1,899$517.4 9,042 $527.1 8,310 $487.3 
North East (2)
456$503.4 406$490.9 1,763 $506.3 1,666 $460.9 
Mid East (3)
1,484$400.5 1,317$368.5 5,518 $389.1 5,414 $349.4 
South East (4)
1,656$428.7 1,478$344.7 6,409 $393.3 6,150 $323.9 
Total
5,749$464.0 5,100$426.8 22,732 $454.3 21,540 $403.9 
As of December 31,
20222021
UnitsAverage PriceUnitsAverage Price
Backlog:
Mid Atlantic (1)
3,692$536.3 4,918$534.8 
North East (2)
885$553.9 969$511.5 
Mid East (3)
1,853$403.2 3,027$381.3 
South East (4)
2,732$405.7 3,816$393.7 
Total
9,162$472.2 12,730$454.2 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Average active communities:
Mid Atlantic (1)
169158160155
North East (2)
37373634
Mid East (3)
127124126129
South East (4)
959993106
Total
428418415424
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Homebuilding data:
New order cancellation rate
18.4 %9.7 %14.2 %9.2 %
Lots controlled at end of period
131,900 124,900 
Mortgage banking data:
Loan closings
$1,524,665$1,480,080$6,313,416 $6,073,934 
Capture rate
80 %89 %83 %89 %
Common stock information:
Shares outstanding at end of period
3,218,933 3,447,441 
Number of shares repurchased
28,50477,443323,652 322,038 
Aggregate cost of shares repurchased
$116,165$385,164$1,500,358 $1,538,019 

(1)Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2)New Jersey and Eastern Pennsylvania
(3)New York, Ohio, Western Pennsylvania, Indiana and Illinois
(4)North Carolina, South Carolina, Tennessee, Florida and Georgia
Investor Relations Contact:
Curt McKay
(703) 956-4058
ir@nvrinc.com

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