NVR Inc. / NVR

About NVR Inc.

11700 Plaza America Dr., Suite 500, Reston, Va. 20190
www.nvrinc.com | 703-956-4000 | Founded: 1980

Industry: Real Estate | Category: Public Companies

NVR, like other big builders, is waiting to see where the roller-coaster ride ends up now that the housing boom appears to be slowing. Much depends on whether interest rates slowly ratchet up or suddenly jump and on whether buyers are price-fatigued, particularly in areas such as Washington that have had huge appreciation. The Washington and Baltimore area markets account for about 54 percent of NVR's home-building sales.
Despite signs of a slowdown that started in the summer, NVR profit in 2005 rose 33 percent, to $697.6 million, the 11th straight year of record earnings for a company that has also seen hard times: It went through Chapter 11 bankruptcy reorganization in the early 1990s recession.
The number of home-sale closings rose 8 percent for the year. New orders for homes were up 11 percent, a rate of increase that was twice as high as in 2003 and 2004. New orders in the Washington area fell almost 19 percent in the third quarter from a year earlier, but then increased 8 percent in the fourth quarter.
The backlog of homes sold but not built at the end of 2005 — 8,310 units — was 13 percent higher than the 7,372 units at the end of 2004.
The company's stock more than tripled between 2002 and early 2005 but dipped in October after the company announced that new orders in the Washington area were down. Some analysts turned bearish on the prospects of home-building companies because of flagging consumer demand.
Last summer, NVR stock hit $948 a share before tumbling to $641 as the strongest housing market in history slowed somewhat; then it bounced back to the high $700s. Some critics worried about the size of insiders' stock sales and that the company's aggressive buyback was helping to push up the price. The company bought back $300 million of common stock in November 2005 and $300 million in July 2005. Last June, NVR announced a reorganization in which Dwight C. Schar relinquished his post as chief executive to Chief Financial Officer Paul C. Saville. NVR Controller Dennis M. Seremet took Saville's job. Schar remained chairman.

President and CEO: Paul C. Saville

2005 Financial Data

Revenues: $5,262,347,000 | Net Income: $697,559,000
Asssets: $2,269,588,000 | Earnings Per Share: $89.61
Total employees: 5,000 | Local employees: 1,300