An influx of new home orders helped boost NVR sales in the first quarter after falling from the final 2020 framework.
The builder, mortgage lender, and title company generated net income of $ 248.8 million, representing $ 63.21 per diluted share. Those numbers fell from $ 305 million and $ 76.93 quarterly while increasing from $ 175.7 million and $ 44.96 annually. Although the 42% year-over-year growth is strong, the first quarter of 2020 saw poor credit terms compared to the rest of last year.
The mortgage bank component was $ 1.41 billion for closed-end credit production with a pre-tax profit of $ 58.6 million. These also decreased from $ 1.66 billion and $ 61.8 million in the fourth quarter, but increased annually from $ 1.13 billion and $ 11.5 million.
Calling for more living space in the face of the extreme shortage of inventory, the NVR filled orders for 6,314 new units in the first quarter, up from 5,485 units in the fourth quarter of 2020 and 5,015 units per year. The company had sales of $ 1.96 billion in residential construction, down from $ 2.26 billion in the fourth quarter but up from $ 1.56 billion year over year. However, escalating material prices and unknowns from the authorities cloud the view of the future.
"While current demand for new homes is strong, there remains uncertainty about the extent and timing of disruptions to our business that may result from COVID-19 and related government actions," the company said in its earnings report. "We cannot predict how this will affect our operational and financial performance, including the impact on our employees, customers and trading partners."
The Reston, Virginia-based NVR's total assets rose from $ 5.78 billion at the end of 2020 to $ 5.82 billion in the first quarter.