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Mar 31, 2020

NVR Q1 2020 Earnings Report

Net income decreased due to the impact of the COVID-19 pandemic.

Key Takeaways

NVR, Inc. reported a decrease in net income and diluted earnings per share for the first quarter of 2020, with consolidated revenues also decreasing compared to the first quarter of 2019. The company experienced a decrease in homebuilding new orders and settlements, while the backlog remained flat. The mortgage banking segment also saw a decrease in income before tax.

Net income for Q1 2020 was $175.7 million, a 7% decrease compared to Q1 2019.

Diluted earnings per share for Q1 2020 was $44.96, a 6% decrease compared to Q1 2019.

Consolidated revenues for Q1 2020 totaled $1.58 billion, a 6% decrease compared to Q1 2019.

Homebuilding new orders decreased by 2% to 5,015 units, and settlements decreased by 6% to 4,230 units.

Total Revenue
$1.58B
Previous year: $1.69B
-6.2%
EPS
$45
Previous year: $47.6
-5.6%
Avg Sales Price of New Orders
$372K
New Order Cancellation Rate
20.8%
Previous year: 14.1%
+47.5%
Loan Closings
$1.13B
Previous year: $1.14B
-0.8%
Gross Profit
$290M
Previous year: $351M
-17.3%
Cash and Equivalents
$1.12B
Previous year: $841M
+33.0%
Free Cash Flow
$64.9M
Previous year: $223M
-70.8%
Total Assets
$3.89B
Previous year: $3.36B
+15.6%

NVR

NVR

NVR Revenue by Segment

NVR Revenue by Geographic Location

Forward Guidance

NVR is unable to predict the extent to which COVID-19 will impact its operational and financial performance. There is uncertainty regarding the effects of economic relief efforts on the U.S. economy, unemployment, consumer confidence, demand for our homes and the mortgage market, including lending standards and secondary mortgage markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income