NVR, No. 9 on the 2006 BUILDER 100 announced its second quarter (ending June 30) results in a press release Friday morning. The Reston, Va., company says that diluted earnings per share decreased 50 percent and net income decreased 52 percent when compared to its 2006 second quarter.
Net income for the 2007 second quarter is $90,747,000, $14.14 per diluted share, compared to net income of $190,352,000, $28.08 per diluted share, for the same period of 2006. Consolidated revenues for the second quarter of 2007 total $1,316,668,000, a 25 percent decrease from its 2006 second quarter.
According to a recent report in the Washington Post, NVR has accumulated $388 million in options to build on land already prepared for development. The company's backlog of homes sold but not settled at the end of the second quarter decreased on a unit basis by 11 percent compared to the same period last year.
New orders for the second quarter decreased to 3,745 units, compared to 4,204 units in the second quarter of 2006. According to the company, new order units and gross profit margins continue to be negatively impacted by high levels of new- and existing-home inventories, affordability issues, and declining home buyer confidence.
The cancellation rate in the second quarter is 16 percent compared to 13 percent in the second quarter of 2006 and 16 percent in the first quarter of 2007. In the Washington, D.C., region alone, one of NVR's primary markets, the cancellation rate is 21 percent.
Settlements decreased in the second quarter of 2007 to 19 percent less than the same period of 2006. Home building revenues totaled $1,297,140,000. Income before tax from the home building segment totaled $135,958,000 in the second quarter, a decrease of 54 percent compared to the second quarter of the previous year.
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