NVR, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NVR, Inc. filed its 2023 10-K report detailing $19.86 billion in revenue and its operational segments.</b>

AI Summary

NVR INC (NVR) filed a Annual Report (10-K) with the SEC on February 14, 2024. NVR, Inc. reported total revenues of $19,859,813,000 for the fiscal year ended December 31, 2023. The company operates in two primary segments: HomeBuilding and MortgageBanking. The filing covers the fiscal year ending December 31, 2023. NVR, Inc. is incorporated in Virginia (VA). The filing was submitted on February 14, 2024.

Why It Matters

For investors and stakeholders tracking NVR INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of NVR's financial performance and business operations for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. Understanding the segment-specific revenues and financial health detailed in this report is key for stakeholders to evaluate NVR's market position and future potential in the homebuilding and mortgage sectors.

Risk Assessment

Risk Level: medium — NVR INC shows moderate risk based on this filing. The company's reliance on the cyclical housing market and interest rate sensitivity presents a medium risk, as evidenced by the inherent volatility in the homebuilding and mortgage banking sectors.

Analyst Insight

Investors should analyze NVR's detailed segment performance and risk factors in the 10-K to assess its resilience in the current economic climate.

Revenue Breakdown

Key Numbers

• 19,859,813,000 — Total Revenues (Fiscal year ended December 31, 2023)
• 2023-12-31 — Fiscal Year End (Reporting period)
• 0000906163 — Central Index Key (SEC identifier)
• 001-12378 — SEC File Number (SEC identifier)

Key Players & Entities

• NVR INC (company) — Filer name
• 10-K (document) — Filing type
• 20231231 (date) — Period of report
• 20240214 (date) — Filing date
• VA (location) — State of incorporation
• $19,859,813,000 (dollar_amount) — Total revenues for fiscal year 2023

FAQ

Industry Context

NVR, Inc. operates within the real estate and construction industry, specifically as operative builders. The company's performance is closely tied to the broader housing market conditions.

Regulatory Implications

As a publicly traded company, NVR, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review NVR's detailed financial statements and segment performance in the 10-K for fiscal year 2023.
2. Analyze the risk factors section to understand potential challenges in the homebuilding and mortgage markets.
3. Compare NVR's 2023 performance against previous years to identify trends and growth patterns.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the 2023 annual report, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share NVR New York Stock Exchange
• $190,000 — settled homes ranged from approximately $190,000 to $2.6 million and averaged $450,700.
• $2.6 million — s ranged from approximately $190,000 to $2.6 million and averaged $450,700. During 2022, our
• $450,700 — y $190,000 to $2.6 million and averaged $450,700. During 2022, our average price of home
• $454,300 — our average price of homes settled was $454,300. Markets Our four reportable homebuil
• $4.8 billion — totaled 10,229 units and approximately $4.8 billion at December 31, 2023 compared to 9,162
• $4.3 billion — mpared to 9,162 units and approximately $4.3 billion at December 31, 2022. The average price
• $465,000 — price of homes in backlog decreased to $465,000 at December 31, 2023 from $472,200 at D
• $472,200 — d to $465,000 at December 31, 2023 from $472,200 at December 31, 2022. Backlog may be im
• $5.7 billion — egate principal amount of approximately $5.7 billion as compared to approximately 17,000 loa
• $6.3 billion — egate principal amount of approximately $6.3 billion in 2022. NVRM's mortgage loans in proce
• $2.9 billion — gate principal balance of approximately $2.9 billion as of December 31, 2023 compared to app
• $2.5 billion — mber 31, 2023 compared to approximately $2.5 billion as of December 31, 2022. NVRM sells al

Filing Documents

• nvr-20231231.htm (10-K) — 1760KB
• a2023ex1039.htm (EX-10.39) — 3KB
• a2023ex21.htm (EX-21) — 6KB
• a2023ex23.htm (EX-23) — 3KB
• a2023ex311.htm (EX-31.1) — 12KB
• a2023ex312.htm (EX-31.2) — 12KB
• a2023ex32.htm (EX-32) — 9KB
• exhibit97.htm (EX-97) — 21KB
• nvr-20231231_g1.jpg (GRAPHIC) — 116KB
• 0000906163-24-000033.txt (&nbsp;) — 9494KB
• nvr-20231231.xsd (EX-101.SCH) — 66KB
• nvr-20231231_cal.xml (EX-101.CAL) — 77KB
• nvr-20231231_def.xml (EX-101.DEF) — 371KB
• nvr-20231231_lab.xml (EX-101.LAB) — 800KB
• nvr-20231231_pre.xml (EX-101.PRE) — 614KB
• nvr-20231231_htm.xml (XML) — 1315KB

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 4

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 9

Cybersecurity

Item 1C. Cybersecurity 9

Properties

Item 2. Properties 10

Legal Proceedings

Item 3. Legal Proceedings 10

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 10 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 11

Reserved

Item 6. Reserved 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Quantitative and Qualitative Disclosure About Market Risk

Item 7A. Quantitative and Qualitative Disclosure About Market Risk 26

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 27

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 27

Controls and Procedures

Item 9A. Controls and Procedures 27

Other Information

Item 9B. Other Information 27

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 27 PART III

Directors, Executive Officers, and Corporate Governance

Item 10. Directors, Executive Officers, and Corporate Governance 28

Executive Compensation

Item 11. Executive Compensation 28

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 28

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 28

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 29 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 30 Table of Contents PART I

Business

Item 1. Business. General NVR, Inc., a Virginia corporation, was formed in 1980 as NVHomes, Inc. Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. To more fully serve customers of our homebuilding operations, we also operate a mortgage banking and title services business. We conduct our homebuilding activities directly. Our mortgage banking operations are operated primarily through a wholly owned subsidiary, NVR Mortgage Finance, Inc. ("NVRM"). Unless the context otherwise requires, references to "NVR", "we", "us" or "our" include NVR, Inc. and its consolidated subsidiaries. We are one of the largest homebuilders in the United States. We operate in thirty-six metropolitan areas in fifteen states, and Washington, D.C. Our homebuilding operations include the construction and sale of single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, NVHomes and Heartland Homes. Our Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-six metropolitan areas located in Maryland, Virginia, Washington, D.C., Delaware, West Virginia, Pennsylvania, Ohio, New York, New Jersey, Indiana, Illinois, North Carolina, South Carolina, Georgia, Florida and Tennessee. Our NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware, New Jersey, and the Washington, D.C., Baltimore, MD and Philadelphia, PA metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area. We generally do not engage in land development (see discussion below of our land development activities). Instead, we typically acquire finished building lots from various third party land developers pursuant to fixed price finished lot purchase agreements ("LPAs") that require deposits that may be forfeited if we f

Forward-Looking Statements

Forward-Looking Statements Some of the statements in this Form 10-K, as well as statements made by us in periodic press releases or other public communications, 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 include those regarding market trends, our financial position and financial results, 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 our actual results or performance 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: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by us and our 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 us in our homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock an

Risk Factors

Item 1A. Risk Factors. Our business is affected by the risks generally incident to the residential construction business, including, but not limited to: actual and expected direction of interest rates, which affect the availability of mortgage financing for potential purchasers of homes; the availability of adequate land in desirable locations on favorable terms; employment levels, consumer confidence and spending and unexpected changes in customer preferences; and changes in the national economy and in the local economies of the markets in which we operate. All of these risks are discussed in detail below. Business and Industry Risks An economic downturn or decline in economic conditions could adversely affect our business and our results of operations. Demand for new homes is sensitive to economic changes driven by conditions such as employment levels, job growth, consumer confidence, inflation and interest rates. If the housing industry suffers a downturn, our sales may decline which could have a material adverse effect on our profitability, stock performance, ability to service our debt obligations and future cash flows. Interest rate movements, inflation and other economic factors can negatively impact our business. High rates of inflation generally affect the homebuilding industry adversely because of their adverse impact on interest rates. High interest rates not only increase the cost of borrowed funds to homebuilders and developers but also have a significant adverse effect on housing demand and on the affordability of permanent mortgage financing to prospective purchasers. We are also subject to potential volatility in the price of commodities that impact costs of materials used in our homebuilding business. Increases in 4 Table of Contents prevailing interest rates could have a material adverse effect on our sales, profitability, stock performance, ability to service our debt obligations and future cash flows. Our financial results also