NVR (NVR) 8-K NVR, Inc. Announces a 24% Increase In Earnings Per Share for the First Quarter of 2003

Exhibit 99.1

NVR, INC. ANNOUNCES A 24% INCREASE IN EARNINGS PER SHARE FOR THE FIRST QUARTER OF 2003

FOR IMMEDIATE RELEASE	CONTACT: Paul Columbus
	OFFICE: 703-761-2414

April 16, 2003 – McLean, VA – NVR, Inc. (AMEX: NVR), one of the nation’s largest homebuilding and mortgage banking companies, today announced that diluted earnings per share for its first quarter ended March 31, 2003 exceeded the 2002 first quarter by 24% and net income increased 14%. Net income for the 2003 quarter was $87,806,000, $10.10 per diluted share, compared to net income of $76,713,000, $8.17 per diluted share, for the same period of 2002. Total revenues increased 7% to $743,574,000 for the quarter when compared to $692,255,000 for the same period of 2002.

Homebuilding revenues for the first three months of 2003 totaled $723,375,000, an increase of 7% over the same period of 2002. Income before tax from the homebuilding segment totaled $130,575,000, an increase of 17% when compared to the first quarter of the previous year. Gross profit margins for the three months ended March 31, 2003 were 25.4%, up from 24.0% for the 2002 first quarter. New orders for the first quarter of 2003 totaled 2,907 units, a 3% decline from the 2,989 units reported for the 2002 first quarter. Home settlements for the current quarter decreased 5% to 2,506 units when compared to the same quarter of 2002. The Company attributed the decrease in new order and settlement activity primarily to declines in its Washington and Baltimore markets caused by development delays, which resulted in a reduction in the number of active communities when compared to the first quarter of 2002. In addition, the Company’s backlog of homes sold but not settled at the end of the 2003 quarter increased on a unit basis by 14% to 6,758 units and 24% on a dollar basis to $2,111,187,000 when compared to the same time last year.

Mortgage banking operating income totaled $13,368,000 for the first quarter of 2003, an increase of 20% when compared to $11,107,000 reported for the same period of 2002. Closed loan production increased 8% to $514,897,000 during the March 2003 quarter when compared to the first quarter of 2002.

Because of the favorable backlog position at the beginning of the second quarter the Company reiterated its full year 2003 guidance of approximately 15% growth in net income over 2002. The Company also stated that its stock repurchase program is continuing. During the first quarter of 2003 NVR repurchased approximately 344,000 shares of its common stock.

5

Some of the statements in this release made by the Company constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than of historical facts included herein, including those regarding market trends, the Company’s financial position, business strategy, projected plans and objectives of management for future operations, mortgage banking operating income, new order trends, home settlement activity, average home prices, gross profit margins and other profitability measures, net income and earnings per share are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company 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, general economic conditions (on both a national and regional level), interest rate changes, access to suitable financing, competition, the availability and cost of land and other raw materials used by the Company in its homebuilding operations, shortages of labor, weather related slow downs, building moratoria, governmental regulation, the ability of the Company to integrate any acquired business, fluctuation and volatility of stock and other financial markets; and other factors over which the Company has little or no control. The Company has no obligation to update such forward-looking statements.

6

Condensed Consolidated Statements of Income

(dollars in thousands, except per share data)

(unaudited)

	For the Three Months Ended March 31,
	2003			2002
Homebuilding:
Revenues	$	723,375		$	674,982
Other income		932			758
Cost of sales		(539,437	)		(513,231	)
Selling, general and administrative		(50,959	)		(47,417	)
Operating income		133,911			115,092
Interest expense		(3,336	)		(3,064	)
Homebuilding income		130,575			112,028
Mortgage Banking:
Mortgage banking fees		17,756			14,861
Interest income		1,364			1,526
Other income		147			128
General and administrative		(5,468	)		(5,081	)
Interest expense		(431	)		(327	)
Mortgage banking income		13,368			11,107
Total segment income		143,943			123,135
Income tax expense		(56,137	)		(46,422	)
Net income	$	87,806		$	76,713
Basic earnings per share	$	12.41		$	10.37
Diluted earnings per share	$	10.10		$	8.17

7

NVR, Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share data)

	March 31, 2003		December 31, 2002
ASSETS	(unaudited)
Homebuilding:
Cash and cash equivalents	$	92,393	$	139,796
Receivables		10,142		10,807
Inventory:
Lots and housing units, covered under sales agreements with customers		413,317		400,008
Unsold lots and housing units		27,477		25,558
Manufacturing materials and other		8,717		11,108
		449,511		436,674
Property, plant and equipment, net		21,998		22,126
Reorganization value in excess of amounts allocable to identifiable assets, net		41,580		41,580
Goodwill, net		6,379		6,379
Contract land deposits		229,129		231,229
Other assets		114,582		110,007
		965,714		998,598
Mortgage Banking:
Cash and cash equivalents		3,271		3,049
Mortgage loans held for sale, net		160,430		163,410
Mortgage servicing rights, net		1,276		5,611
Property and equipment, net		969		941
Reorganization value in excess of amounts allocable to identifiable assets, net		7,347		7,347
Other assets		4,244		3,332
		177,537		183,690
Total assets	$	1,143,251	$	1,182,288

(Continued)

8

NVR, Inc.

Condensed Consolidated Balance Sheets (Continued)

(dollars in thousands, except per share data)

	March 31, 2003			December 31, 2002
	(unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Homebuilding:
Accounts payable	$	137,227		$	145,209
Accrued expenses and other liabilities		174,283			240,018
Customer deposits		132,523			118,174
Other term debt		4,818			4,903
Senior notes		115,000			115,000
		563,851			623,304
Mortgage Banking:
Accounts payable and other liabilities		13,620			16,482
Notes payable		137,885			139,257
		151,505			155,739
Total liabilities		715,356			779,043
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,597,709 and 20,602,921 shares issued as of March 31, 2003 and December 31, 2002, respectively		206			206
Additional paid-in-capital		292,202			262,867
Deferred compensation trust 453,207 and 428,698 shares as of March 31, 2003 and December 31, 2002, respectively, of NVR, Inc. common stock		(52,235	)		(35,647	)
Deferred compensation liability		52,235			35,647
Retained earnings		1,055,880			968,074
Less treasury stock at cost—13,579,115 and 13,580,531 shares at March 31, 2003 and December 31, 2002, respectively		(920,393	)		(827,902	)
Total shareholders’ equity		427,895			403,245
Total liabilities and shareholders’ equity	$	1,143,251		$	1,182,288

9

NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

	Three Months Ended March 31,
	2003		2002
Homebuilding data:
New orders (units)		2,907		2,989
New orders (dollars)	$	870,844	$	860,957
Settlements (units)		2,506		2,628
Backlog (units)		6,758		5,919
Backlog (dollars)	$	2,111,187	$	1,699,214
Mortgage banking data:
Loan closings	$	514,897	$	477,737
Common stock information:
Shares outstanding at end of period		7,018,594		7,187,622
Weighted average shares outstanding		7,078,000		7,397,000
Diluted shares outstanding		8,697,000		9,385,000

10