RESTON, VA -- NVR, Inc., one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2011 of $15.1 million. Net income and diluted earnings per share for its first quarter ended March 31, 2011 decreased 53% and 50%, respectively, when compared to the 2010 first quarter. Consolidated revenues for the first three months of 2011 totaled $514,504,000, a 13% decrease from $590,214,000 for the comparable 2010 quarter.
New orders in the first quarter of 2011 decreased 18% to 2,403 units, when compared to 2,940 units in the first quarter of 2010. The cancellation rate in the first quarter of 2011 was 12% compared to 9% in the first quarter of 2010 and 18% in the fourth quarter of 2010. Settlements decreased in the first quarter of 2011 to 1,634 units, 15% lower than the same period of 2010. The Company's backlog of homes sold but not settled at the end of the 2011 quarter decreased on a unit basis by 19% to 3,685 units from the same period last year. On a dollar basis, backlog declined to $1,166,721,000, a decrease of 13% when compared to the same period last year.
Homebuilding revenues for the three months ended March 31, 2011 totaled $502,744,000, 13% lower than the year earlier period. Gross profit margins were 16.9% in the 2011 first quarter compared to 18.4% for the same period in 2010. Income before tax from the homebuilding segment totaled $18,872,000, a decrease of 59% when compared to the first quarter of the previous year.
Mortgage closed loan production of $353,571,000 for the three months ended March 31, 2011 was 15% lower than the same period last year. Income before tax for the mortgage banking operations during the first quarter of 2011 decreased 14% to $5,963,000, when compared to $6,962,000 reported for the same period of 2010.
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding unit sells and builds homes under the Ryan Homes, NVHomes, Rymarc Homes and Fox Ridge Homes trade names, and operates in twenty-five metropolitan areas in fourteen states.