New Homes Group: NVR POSTS PROFITS

NEW HOMES GROUP

The New Homes Group Real Estate Specialists of Northern Virginia assists both New Homes Buyers & our New Homes Builder Community. We are a group of Realtors with a combined 20 years of experiance as New Homes Sales Mangers for National, Regional and local builders in Northern Virginia. We sevice Fairfax, Loudon, Prince William, Stafford, Fredericksburg, King George and Spotsylvania Country. We all come from Military backgrounds and families, so we have first hand experiance in military and corporate relocations.

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Thursday, July 22, 2010

NVR POSTS PROFITS

NVR Reports $71 Million Profit

Source: BIG BUILDER News
Publication date: July 22, 2010

By BB Staff

NVR Inc., Reston, Va. (NYSE:NVR) early Thursday reported a profit of $71.2 million for the second quarter ended June 30, of $71.3 million ($11.13 per diluted share), an increase of 72% over last year's second quarter, beating handily the consensus Wall Street estimate of $8.62.

Revenues for the quarter totaled $964.5 million, a 54% increase from the comparable 2009 quarter.

NVR was the first public builder to report this earnings season, and although the company neither provides earnings commentary nor guidance to investors, the news, along with a general updraft in the markets, appeared to touch off a small rally in the builder stocks pre-open. NVR shares were up 2.6% at $650.18 in early trading on the NYSE.

Closings skyrocketed 63% from last year's quarter to 3,345 units as buyers got in under the June 30 deadline for qualification for the home-buyer tax credit. The average settlement price fell 5.2% to $283,000.

New orders decreased 6% from last year's second quarter to 2,559 units this quarter. The average new-order price, however, increased 5% to $309,600.

Backlog was down 16% to 3,766 units and backlog value down 11% to $1.19 billion when compared to the same period last year. The average backlog price also increased, from $296,200 last year to $315,300 at quarter's end 2010.

Community count increased to 373 from 356 at the same time last year. Lot count also increased, from 44,300 at June's end, 2009 to 47,500 at the close of this year's quarter.

Home building revenues totaled $947 million, 55% ahead of the year-earlier period. Gross profit margins decreased to 18.5% in the 2010 second quarter compared to 19.3% for the same period in 2009. SG&A was up 26.3% to$69.1 million.