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SECURITY: TOL
EXCHANGE: New York Stock Exchange CURRENCY: US Dollar
Toll Brothers, Inc. is
the nation's leading builder of luxury homes. No other builder is as committed
to quality as Toll Brothers. The Company is the only public home builder
to receive the three most coveted awards in the home building industry:
America's Best Builder, National Builder of the Year, and the National
Housing Quality Award. Toll Brothers is proud to have been recognized for
its dedication to quality and customer service
http://www.tollbrothers.com
TOLL
BROTHERS REPORTS PRELIMINARY 4TH QTR AND FY 2007 TOTALS FOR HOME BUILDING
REVENUES, BACKLOG AND CONTRACTS
Horsham,
PA, November 8, 2007 -- Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com),
the nation’s leading builder of luxury homes, today reported fourth quarter
and fiscal year totals for home building revenues, contracts and backlog
for the period ended October 31, 2007. These results are preliminary and
unaudited. The Company will announce final totals when it releases fourth-quarter
and fiscal year earnings results on December 6, 2007.
For
the fourth quarter, home building revenues of approximately $1.17 billion
declined 36% compared to FY 2006’s fourth quarter results. Backlog of approximately
$2.85 billion declined 36% compared to FY 2006.
Gross
signed contracts for FY 2007’s fourth quarter of approximately $693.7 million
and 1,073 homes declined 38% and 33%, respectively, versus FY 2006’s same
period totals of $1.12 billion and 1,595 homes. With 417 cancellations
in 2007’s fourth quarter totaling approximately $328.5 million, compared
to 585 cancellations totaling $412.3 million in FY 2006’s fourth quarter,
FY 2007 fourth-quarter net signed contracts totaled 656 homes, or approximately
$365.2 million, a decline of 35% in units and 48% in dollars, compared
to FY 2006’s fourth-quarter results of 1,010 signed contracts, or $706.3
million.
The
average price per unit of gross contracts signed in the fourth quarter
was $646,000, compared to $667,000 in 2007’s third quarter, which was consistent
with the Company’s previously discussed expectations, as the Company’s
product mix, in the near term, continues to shift toward a higher percentage
of multi-family (versus single-family) communities, which tend to be lower-priced.
However, the average price of the 417 fourth-quarter cancellations in FY
2007 was a much higher $788,000 per unit. The cancellations were heavily
concentrated in high-priced markets and product lines. The effect of these
cancellations, coupled with the Company’s product mix shift, was to reduce
the average price of net signed contracts in FY 2007’s fourth quarter to
a much lower $557,000 per unit.
For
the fiscal year ended October 31, 2007, home building revenues were approximately
$4.63 billion and net signed contracts were approximately $3.01 billion,
a decline of 24% in home building revenues and 33% in contracts compared
to FY 2006’s year-end results.
Toll
Brothers ended its fourth quarter with approximately $895 million in cash
and more than $1.2 billion available under its bank credit facility, which
matures in March of 2011. The Company, which has continued to renegotiate
and, in some cases, reduce its optioned land positions, ended FY 2007’s
fourth quarter with approximately 59,300 lots owned and optioned, compared
to approximately 91,200 at its peak at the second-quarter-end of FY 2006.
The Company ended the fourth quarter with 315 selling communities, down
from its peak of 325 at 2007’s second-quarter-end, and expects to be selling
from approximately 300 communities by fiscal-year-end 2008
TOLL
BROTHERS REPORTS 1ST QTR 2007 EARNINGS RESULTS
Horsham, PA, February
22, 2007 -- Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the
nation’s leading builder of luxury homes, today reported results for net
income, revenues, backlog and contracts for its first quarter ended January
31, 2007.
FY 2007’s first-quarter
net income was $54.3 million, or $0.33 per share diluted, compared to FY
2006’s first-quarter record of $163.9 million, or $0.98 per share diluted.
In FY 2007, first-quarter net income was reduced by pre-tax write-downs
of $96.9 million ($59.0 million, or $0.36 per share diluted, after tax),
plus a pre-tax $9.0 million ($0.03 per share diluted, after tax) goodwill
impairment charge related to the Company’s 1999 acquisition of the Silverman
Companies in metro Detroit. In FY 2006, first-quarter pre-tax write-downs
totaled $1.1 million, or less than $0.01 per share diluted, after tax.
FY 2007 first-quarter earnings per share, including write-downs, declined
66% versus FY 2006’s first quarter. Excluding write-downs and the impairment
charge, FY 2007’s first-quarter earnings per share were $0.72 diluted,
down 27% versus the same period in FY 2006.
FY 2007’s first-quarter
total revenues were $1.09 billion, a decline of 19% compared to the first-quarter
record of $1.34 billion in revenues in FY 2006. FY 2007’s first-quarter-end
backlog was $4.15 billion, a decline of 30% compared to the first-quarter
record of $5.95 billion in FY 2006.
FY 2007’s first-quarter
net signed contracts were $748.7 million, a decline of 34% compared to
FY 2006’s first-quarter total of $1.14 billion. The Company signed 1,463
contracts (before cancellations) in FY 2007’s first quarter, a 14% decline
from the 1,695 signed in FY 2006’s first quarter. Net of cancellations,
first-quarter contracts totaled 1,027 units, down 33% from 1,544 units
in the first quarter of FY 2006. First-quarter FY 2007 cancellations totaled
436 units versus 585 units in fourth-quarter FY 2006; FY 2007’s first-quarter
cancellation rate of 29.8% was lower than the 36.9% cancellation rate in
fourth-quarter 2006. However, it was still well above the Company’s historical
average of about 7%.
In response to current
market conditions, the Company continues to reevaluate and, in some cases,
renegotiate its optioned land positions. As a result of its ongoing review,
the Company ended FY 2007’s first quarter with approximately 67,500 lots
under control compared to approximately 73,800 and 83,200 at FYE 2006 and
FYE 2005, respectively. The Company’s FY 2007 first-quarter-end total was
down 26% from its high of approximately 91,200 lots at FY 2006’s second-quarter-end.
Projecting revenues and
earnings results remains very difficult in the current environment. Based
on its current backlog, the impact of lessened first-quarter contracts
and the continuing higher-than-normal rate of cancellations, the Company
expects to deliver between 6,000 and 7,000 homes in FY 2007, compared to
its previous guidance of 6,300 to 7,300 homes, and to produce total home
building revenues of between $4.20 billion and $4.96 billion. It projects
net income of between $240 million and $305 million, or $1.46 to $1.85
per share diluted, assuming 164.8 million shares outstanding in FY 2007.
This projection assumes future write-downs of $60 million in the final
three quarters of FY 2007, although the final number could be significantly
higher or lower. Prior to its conference call this afternoon at 12:00 Noon
(EST), the Company will file a Form 8-K with the Securities and Exchange
Commission outlining its guidance assumptions in greater detail.
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