NVR (NVR) 8-K NVR, Inc. Announces Fourth Quarter Results

Exhibit 99.1

NVR, INC. ANNOUNCES FOURTH QUARTER RESULTS

FOR IMMEDIATE RELEASE	Contact:	Dan Malzahn
	Office:	(703) 956-4204

January 29, 2008, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced that diluted earnings per share for its fourth quarter ended December 31, 2007 decreased 44% and net income decreased 50% when compared to the 2006 fourth quarter. Net income for the 2007 fourth quarter was $67,274,000, $11.72 per diluted share, compared to net income of $135,167,000, $20.86 per diluted share, for the same period of 2006. The fourth quarter 2007 results were negatively impacted by land deposit impairments of approximately $97,000,000. These impairments lowered gross margins by 690 basis points and reduced diluted earnings per share by $10.32. Consolidated revenues for the last three months of 2007 totaled $1,427,397,000, a 12% decrease from $1,627,130,000 for the comparable 2006 quarter.

Net income for the 2007 fiscal year was $333,955,000, $54.14 per diluted share, compared to net income of $587,412,000, $88.05 per diluted share for 2006, a 43% decrease in net income and a 39% decrease in diluted earnings per share. The full year results were negatively impacted by land deposit impairments of approximately $261,800,000. These impairments lowered gross margins by 519 basis points and reduced diluted earnings per share by $25.91. Consolidated revenues for 2007 totaled $5,129,342,000, a 16% decrease from the $6,134,124,000 for 2006.

Homebuilding

New orders for the fourth quarter of 2007 decreased 35% to 1,948 units, when compared to 3,002 units for the fourth quarter of 2006. New order activity slowed as the quarter progressed and activity has remained weak during January. The cancellation rate in the fourth quarter of 2007 was 32% compared to 20% in the fourth quarter of 2006 and 27% in the third quarter of 2007. The cancellation rate in the Washington, D.C. market was 46% in the quarter compared to 34% in the fourth quarter of 2006 and 44% in the third quarter of 2007. These elevated cancellation levels are largely due to the instability in the mortgage lending market, including the tightening of mortgage underwriting standards. The average sales price of new orders in the fourth quarter of 2007 declined by 13% from the fourth quarter of 2006. The average new order price declined in all regions but was primarily due to a 17% decline in the Mid-Atlantic region. These sizable declines in new order units and prices will continue to have a significant negative impact on revenues and gross margins in the coming quarters.

Settlements decreased in the fourth quarter of 2007 to 3,874 units, 3% less than the same period of 2006. Homebuilding revenues for the three months ended December 31, 2007 totaled $1,405,466,000, 12% lower than the year earlier period. Pre-tax homebuilding income totaled $92,681,000, a decrease of 54% when compared to the fourth quarter of the previous year. Gross profit margins decreased to 12.9% in the 2007 fourth quarter compared to 19.0% for the same period in 2006. The decline in gross profit margins is due to the previously mentioned land deposit impairments and continued price declines in most of our markets.

New orders for 2007 totaled 12,270 units, a 7% decrease when compared to the 13,217 units reported for 2006. Home settlements for 2007 decreased 11% to 13,513 units when compared to 15,139 units closed in 2006. Homebuilding revenues for 2007 totaled $5,048,187,000, 16% lower than 2006. Pre-tax homebuilding income decreased to $485,576,000 for the 2007 fiscal year, a decrease of 46% from the prior year. Gross profit margins decreased to 16.3% in 2007 from 22.1% in 2006. The number of homes in backlog at the end of 2007 was 5,145 units, 19% lower than the 6,388 units in backlog at the end of 2006. The dollar volume in backlog decreased 27% to $1,910,504,000 at December 31, 2007, when compared to the same time last year.

Mortgage Banking

Mortgage closed loan production of $867,106,000 for the three months ended December 31, 2007 was 19% lower than the same period last year. Pre-tax income contributed by the mortgage banking operations during the fourth quarter of 2007 decreased 14% to $15,301,000, when compared to $17,875,000 reported for the same period of 2006.

Pre-tax income from the mortgage banking segment decreased for the 2007 fiscal year to $53,929,000, a 17% decrease from the $65,133,000 reported for 2006. Mortgage production for the year decreased 18% to $3,225,324,000.

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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. 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 variations thereof or comparable terminology, or by discussion of strategies, each of which involves risks and uncertainties. All statements other than those of historical facts included herein, including those regarding market trends, NVR’s financial position, business strategy, the outcome of pending litigation, projected plans and objectives of management for future operations, 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 NVR 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 and business conditions (on both a national and regional level), interest rate changes, access to suitable financing by NVR and by NVR’s customers, competition, the availability and cost of land and other raw materials used by NVR in its homebuilding operations, shortages of labor, weather related slow downs, building moratoria, governmental regulation, the ability of NVR to integrate any acquired business, fluctuation and volatility of stock and other financial markets, mortgage financing availability and other factors over which NVR has little or no control. The Company has no obligation to update such forward-looking statements.

NVR, Inc.

Consolidated Statements of Income

(amounts in thousands, except per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Homebuilding:
Revenues	$	1,405,466		$	1,600,733		$	5,048,187		$	6,036,236
Other income		4,693			5,361			21,118			13,609
Cost of sales		(1,224,313	)		(1,297,372	)		(4,227,059	)		(4,701,265	)
Selling, general and administrative		(90,010	)		(103,188	)		(343,520	)		(432,319	)
Operating income		95,836			205,534			498,726			916,261
Interest expense		(3,155	)		(3,650	)		(13,150	)		(18,423	)
Homebuilding income		92,681			201,884			485,576			897,838
Mortgage Banking:
Mortgage banking fees		21,931			26,397			81,155			97,888
Interest income		1,485			2,468			4,900			7,704
Other income		280			317			1,060			1,334
General and administrative		(8,227	)		(11,121	)		(32,505	)		(38,988	)
Interest expense		(168	)		(186	)		(681	)		(2,805	)
Mortgage banking income		15,301			17,875			53,929			65,133
Income before taxes		107,982			219,759			539,505			962,971
Income tax expense		(40,708	)		(84,592	)		(205,550	)		(375,559	)
Net income	$	67,274		$	135,167		$	333,955		$	587,412
Basic earnings per share	$	13.10		$	24.43		$	61.61		$	104.08
Diluted earnings per share	$	11.72		$	20.86		$	54.14		$	88.05
Basic average shares outstanding		5,136			5,533			5,420			5,644
Diluted average shares outstanding		5,741			6,481			6,168			6,672

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

	December 31,
	2007		2006
ASSETS
Homebuilding:
Cash and cash equivalents	$	660,709	$	551,738
Receivables		10,855		12,213
Inventory:
Lots and housing units, covered under
sales agreements with customers		573,895		667,100
Unsold lots and housing units		105,838		58,248
Manufacturing materials and other		9,121		8,268
		688,854		733,616
Contract land deposits, net		188,528		402,170
Assets not owned, consolidated
per FIN 46R		180,206		276,419
Property, plant and equipment, net		32,911		40,430
Reorganization value in excess of amounts
allocable to identifiable assets, net		41,580		41,580
Goodwill and other indefinite and definite life
intangibles, net		11,782		11,936
Other assets		252,461		207,468
		2,067,886		2,277,570
Mortgage Banking:
Cash and cash equivalents		3,500		4,381
Mortgage loans held for sale, net		107,338		178,444
Property and equipment, net		881		1,168
Reorganization value in excess of amounts
allocable to identifiable assets, net		7,347		7,347
Other assets		7,464		4,898
		126,530		196,238
Total assets	$	2,194,416	$	2,473,808

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

	December 31,
	2007			2006
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	219,048		$	273,936
Accrued expenses and other liabilities		251,475			265,223
Liabilities related to assets not owned
consolidated per FIN 46R		164,369			244,805
Customer deposits		125,315			165,354
Other term debt		2,820			3,080
Senior notes		200,000			200,000
		963,027			1,152,398
Mortgage Banking:
Accounts payable and other liabilities		18,551			15,784
Notes payable		83,463			153,552
		102,014			169,336
Total liabilities		1,065,041			1,321,734
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000
shares authorized; 20,592,640 shares issued
for both 2007 and 2006		206			206
Additional paid-in-capital		663,631			585,438
Deferred compensation trust- 516,085
and 547,911 shares of NVR, Inc.
common stock for 2007
and 2006, respectively		(75,636	)		(80,491	)
Deferred compensation liability		75,636			80,491
Retained earnings		3,529,995			3,196,040
Less treasury stock at cost - 15,455,086
and 15,075,113 shares for
2007 and 2006, respectively		(3,064,457	)		(2,629,610	)
Total shareholders' equity		1,129,375			1,152,074
Total liabilities and shareholders'
equity	$	2,194,416		$	2,473,808

NVR, Inc.

Operating Activity

(unaudited)

(dollars in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Homebuilding data:
New orders (units)
Mid Atlantic (1)		910			1,442			5,695			6,182
North East (2)		190			319			1,212			1,438
Mid East (3)		540			755			3,160			3,244
South East (4)		308			486			2,203			2,353
Total		1,948			3,002			12,270			13,217
Average new order price	$	318.4		$	366.7		$	352.0		$	377.4
Settlements (units)
Mid Atlantic (1)		1,906			1,980			6,634			7,491
North East (2)		329			485			1,247			1,682
Mid East (3)		974			965			3,321			3,571
South East (4)		665			572			2,311			2,395
Total		3,874			4,002			13,513			15,139
Average settlement price	$	362.5		$	399.5		$	373.2		$	398.2
Backlog (units)
Mid Atlantic (1)								2,726			3,665
North East (2)								505			540
Mid East (3)								1,113			1,274
South East (4)								801			909
Total								5,145			6,388
Average backlog price							$	371.3		$	412.4
Community count (average)		472			551			505			589
Lots controlled at end of year								67,600			88,500
Mortgage banking data:
Loan closings	$	867,106		$	1,071,286		$	3,225,324		$	3,918,206
Capture rate		83	%		87	%		85	%		86	%
Common stock information:
Shares outstanding at end of year								5,137,554			5,517,527
Weighted average basic shares outstanding		5,136,000			5,533,000			5,420,000			5,644,000
Weighted average diluted shares outstanding		5,741,000			6,481,000			6,168,000			6,672,000
Number of shares repurchased		-			192,200			784,788			481,141
Aggregate cost of shares repurchased	$	0		$	103,778		$	507,472		$	287,064

(1)   Virginia, West Virginia, Maryland, and Delaware 

(2)   Eastern Pennsylvania and New Jersey

(3)   Kentucky, New York, Ohio and western Pennsylvania

(4)   North Carolina, South Carolina and Tennessee