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8-K - FORM 8-K - Toll Brothers, Inc. | c09202e8vk.htm |
Exhibit 99.1
Immediate Release | CONTACT: Frederick N. Cooper (215) 938-8312 | |
December 2, 2010 | fcooper@tollbrothersinc.com | |
Joseph R. Sicree (215) 938-8045 | ||
jsicree@tollbrothersinc.com |
TOLL BROTHERS REPORTS 4th QTR AND FYE 2010 RESULTS
Horsham, PA, December 2, 2010 Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the
nations leading builder of luxury homes, today announced results for earnings, revenues, contracts
and backlog for its fourth quarter and fiscal year ended October 31, 2010.
The Company reported FY 2010 fourth quarter net income of $50.5 million, or $0.30 per share
diluted, compared to a FY 2009 fourth quarter net loss of $111.4 million, or $0.68 per share
diluted. FY 2010s fourth quarter included a net tax benefit of $59.9 million, compared to a $4.7
million net tax expense in FY 2009s fourth quarter. On a pre-tax basis, the Company reported a FY
2010 fourth quarter loss of $9.5 million, compared to a FY 2009 fourth quarter loss of $106.7
million. FY 2010s fourth quarter included inventory write-downs totaling $27.0 million compared to
$85.5 million in FY 2009, and charges related to early retirement of debt totaling $0.5 million in
FY 2010 compared to $11.6 million in FY 2009. Excluding inventory write-downs and charges on early
debt retirement, FY 2010s fourth quarter pre-tax income was $18.1 million compared to a pre-tax
loss of $9.6 million in FY 2009s fourth quarter. On a pre-tax basis, FY 2010s fourth quarter
income benefited from an $11 million reversal of accruals no longer needed related to joint
ventures.
FY 2010s fourth quarter revenues and home building deliveries of $402.6 million and 700 units
declined 17% in dollars and 19% in units compared to FY 2009s fourth quarter results.
During FY 2010s fourth quarter, the Company signed net contracts of $315.3 million and 558 units,
a decline of 27% in both dollars and units, compared to FY 2009s fourth quarter net signed
contracts. On a per-community basis, FY 2010s fourth-quarter net signed contracts of 2.94 units
declined 17% from FY 2009s fourth quarter average of 3.56 units, but increased by 58% and 41%
respectively, compared to FY 2008s average of 1.86 units and FY 2007s average of 2.08 units.
These results were significantly below the Companys historical fourth quarter per-community
average, dating back to 1990, of 6.00 units per community.
The Company ended FY 2010 with a backlog of $852.1 million and 1,494 units, which declined 3% in
dollars and 2% in units compared to FY 2009s year-end backlog.
*more*
For its fiscal year ended October 31, 2010, the Company reported a net loss of $3.4 million, or
$0.02 per share diluted, compared to a net loss of $755.8 million, or $4.68 per share diluted for
FY 2009. For FY 2010, the Company reported a pre-tax loss of $117.2 million, compared to a pre-tax
loss of $496.5 million for FY 2009. FY 2010s inventory write-downs totaled $115.3 million
compared to $476.7 million of inventory and joint venture write-downs in FY 2009, and charges
related to early retirement of debt totaled $1.2 million in FY 2010 compared to $13.7 million in FY
2009. Excluding inventory write-downs and early debt retirement charges, FY 2010s pre-tax loss was
$0.7 million, compared to a pre-tax loss of $6.1 million in FY 2009.
FY 2010 included a net tax benefit of $113.8 million compared to a net tax expense of $259.4
million in FY 2009. In FY 2010, the Company recognized tax benefits associated with the carry back
of tax losses under the one-time five-year carry back legislation and a corresponding reversal of
valuation allowances on deferred tax assets. In FY 2009, the Company had recorded a significant tax
expense resulting from providing a full valuation allowance against its deferred tax assets.
For FY 2010, home building revenues of $1.49 billion and 2,642 units declined 15% in dollars and
11% in units, compared to FY 2009. FY 2010 net signed contracts of $1.47 billion and 2,605 units
increased 13% in dollars and 6% in units compared to FY 2009.
As previously announced, on October 22, 2010 the Company completed a new four-year unsecured $885
million bank credit facility: At FYE 2010, $799 million was available for use and $86 million was
outstanding as letters of credit. The Companys previous facility was due to mature in March 2011.
The Company ended FY 2010 with $1.24 billion of unrestricted cash and marketable U.S. Treasury and
Agency securities compared to $1.64 billion the previous quarter. The decrease in cash between FY
2010s third and fourth quarters was due primarily to the repayment of $341.8 million of debt, the
restriction of $60.9 million to collateralize letters of credit remaining from the previous credit
facility and other obligations, and the payment of $66.1 million for land purchases. This was
offset, in part, by cash generated from operations.
Toll Brothers ended FY 2010 with a net-debt-to-capital ratio(1) of 13.6%, compared to
11.5% at FY 2010s third-quarter end and 7.4% at FYE 2009.
Douglas C. Yearley, Jr., Toll Brothers chief executive officer, stated: Despite home deliveries
down 76% from our fourth quarter peak in 2005, we achieved modest pre-tax profitability on a
pre-write-down basis for the second consecutive quarter.
The key to sustained and substantial profitability is the return of normalized demand. FY 2010 was
another challenging year for our Company and our industry as the persistent drag of high
unemployment, reduced home equity, weak consumer confidence and frustration with the nations
economic and political climate outweighed the appeal of historic low interest rates and tremendous
home affordability. Even though the unemployment rate among our buyers is about half that of the
national average, many of our clients remain on the sidelines waiting for clearer signs that the
economy is on the road to recovery.
*more*
We continue to position ourselves for this recovery through the opportunistic and prudent purchase
of land and the growth of our community count. For the first time since FY 2005, our land position
grew from the beginning to the end of our fiscal year. We ended FY 2010 with approximately 34,900
lots owned and optioned, compared to approximately 31,900 one year ago. And, for the first time in
four years, we expect our community count will grow. While we ended FY 2010 with 195 selling
communities compared to 200 at FYE 2009, we expect to finish FY 2011 with between 215 and 225
selling communities.
In addition to stepping up our land purchases, we continue to enhance our brand by providing
quality, value and service to our customers. We believe that, especially in these difficult times,
buyers will migrate to the quality and security the Toll Brothers brand represents. We have also
reduced costs by centralizing more of our purchasing. And, as previously announced, we put in place
Gibraltar Capital and Asset Management, a new investment and management vehicle to take advantage
of the dislocation in the real estate market.
Martin P. Connor, Toll Brothers chief financial officer, stated: In addition to our modest
second-half pre-tax pre-write-down profitability, there were other positives in FY 2010s
challenging environment. Our contract cancellation rate has returned to relative normalcy: FY
2010s cancellation rate (current-year cancellations divided by current-year gross signed
contracts) was 6.6% as a percentage of gross signed contracts compared to 15.6% for FY 2009. Also,
year-over-year, we reduced our SG&A by approximately $50 million or 16% and showed a slight
improvement in gross margins before write-offs and interest.
During FY 2010s fourth quarter, we sold 13 communities consisting of 787 lots for $18.3 million
in proceeds at a nominal book loss. More significantly, these sales triggered a tax loss of $89.4
million resulting in a tax benefit of $31.3 million. As a result of these land sales, taxable
losses from operations, abandonment of options and other taxable loss transactions, we currently
estimate we will file for approximately $140 million in tax refunds relating to FY 2010 in FY 2011.
Subject to the caveats in our Statement on Forward-Looking Information included in this release,
we offer the following limited guidance:
We ended FY 2010 with a relatively flat backlog compared to FYE 2009. As such, we currently
estimate that we will deliver between 2,100 and 2,900 homes in FY 2011 at an average price of
between $540,000 and $565,000 per home. Due to geographic mix, we expect a higher average price for
delivered homes in the first quarter than in the final three quarters of FY 2011.
*more*
Robert I. Toll, executive chairman, stated: This housing downturn is the longest and most severe
since the Great Depression. However, we believe that the future for our firm and industry are
bright. Over the past thirty years, single-family, multi-family and manufactured housing
completions have averaged 1.683 million units per year. A recent Harvard University study projects
similar demand in this new decade. Based on the very low housing production over the past few
years, we believe that pent-up demand is building and will be released once the employment and
economic picture improves and people regain confidence.
In many markets, the pipeline of approved lots has dwindled as builders and developers have lacked
both the capital and the rationale for bringing sites through approvals. Therefore, when demand
picks up, builders and developers with approved land in well-located markets should benefit. We
believe that this will be particularly true for Toll Brothers.
The other major public builders are primarily focused on the lower-priced segment of the market.
Our main competitors are small and mid-sized local and regional private builders. We believe we
have competitive advantages over them in our brand, quality, access to capital and purchasing
power. We, therefore, see opportunity for market share gains for Toll Brothers when the market
recovers. The key word is when.
The broader economy has shown some positive signs recently: Third quarter GDP estimates were
revised higher last week, weekly jobless claims dropped to their lowest level in two years and
personal incomes improved solidly in October. On Tuesday, the Conference Boards Consumer
Confidence Index reached its highest level in five months. And on Wednesday, the ADP employment
report for November showed a net increase of 93,000 jobs, the biggest jump in three years. In
addition, job numbers for October were revised up from an increase of 43,000 to an increase of
82,000. These numbers are encouraging and, hopefully, signal better times.
Toll Brothers financial highlights for the fourth quarter and fiscal year ended October 31, 2010
(unaudited):
| FY 2010s fourth-quarter net income was $50.5 million, or $0.30 per share diluted, compared
to FY 2009s fourth-quarter net loss of $111.4 million, or $0.68 per share diluted. |
| FY 2010s fourth quarter included a tax benefit of $59.9 million, primarily due to the
reversal of valuation allowances on taxable losses incurred, compared to a $4.7 million tax
expense in FY 2009s fourth quarter. |
*more*
| FY 2010 fourth-quarter pre-tax loss was $9.5 million, compared to a FY 2009 fourth-quarter
pre-tax loss of $106.7 million. FY 2010s fourth-quarter results included a pre-tax charge of
$0.5 million associated with the early retirement of debt and pre-tax write-downs of $27.0
million: $9.1 million of the write-downs was attributable to operating communities, $14.1
million to owned land for future communities and $3.8 million to land controlled for future
communities. These were offset, in part, by an $11 million reversal of accruals no longer needed
related to joint ventures. FY 2009 fourth-quarters results included pre-tax write-downs
totaling $85.5 million and a pre-tax charge of $11.6 million due to the early retirement of
debt. |
| Excluding write-downs and charges related to the early retirement of debt, FY 2010s
fourth-quarter pre-tax income was $18.1 million, compared to FY 2009s third-quarter pre-tax
loss of $9.6 million. |
| FY 2010s fourth quarter gross margin improved to 13.9% from a margin of 0.8% in FY 2009s
fourth quarter. Excluding write-downs, FY 2010s fourth quarter gross margin improved to
20.6% from 18.4% in FY 2009s fourth quarter. |
| FY 2010s net loss was $3.4 million, or $0.02 per share diluted, compared to FY 2009s net
loss of $755.8 million, or $4.68 per share diluted. |
| FY 2010s pre-tax loss was $117.2 million, compared to a FY 2009s pre-tax loss of $496.5
million. FY 2010s results included a pre-tax charge of $1.2 million associated with the
early retirement of debt and pre-tax write-downs of $115.3 million: $53.5 million of the
write-downs was attributable to operating communities, $55.7 million to owned land for future
communities and $6.1 million to land controlled for future communities. FY 2009s results
included pre-tax write-downs totaling $476.7 million and pre-tax charges of $13.7 million due
to the early retirement of debt. |
| Excluding write-downs and charges related to the early retirement of debt, FY 2010s
pre-tax loss was $0.7 million, compared to a pre-tax loss of $6.1 million for FY 2009. |
| FY 2010s fourth-quarter total revenues of $402.6 million and 700 units decreased 17% in
dollars and 19% in units from FY 2009s fourth-quarter total revenues of $486.6 million and
860 units. |
| FY 2010s total revenues of $1.49 billion and 2,642 units declined 15% in dollars and 11%
in units compared to FY 2009s totals of $1.76 billion and 2,965 units. |
| In FY 2010s fourth quarter, unconsolidated entities in which the Company had an interest
delivered $67.9 million of homes, compared to $11.8 million in the fourth quarter of FY 2009.
In FY 2010, unconsolidated entities in which the Company had an interest delivered $131.2
million of homes, compared to $47.2 million in FY 2009. The Company recorded its share of the
results from these entities operations in Income (Loss) from Unconsolidated Entities on the
Companys Statement of Operations. |
*more*
| The Company signed gross contracts of $345.3 million and 612 units in FY 2010s fourth quarter,
a decrease of 25% and 26%, respectively, compared to $461.9 million and 822 gross contracts
signed in FY 2009s fourth quarter. The Company signed 2,789 gross contracts totaling $1.57
billion in FY 2010, a decrease of 4% in units and 3% in dollars, compared to the 2,903 gross
contracts totaling $1.63 billion signed in FY 2009. |
| The average price per unit of gross contracts signed in FY 2010s fourth quarter was
approximately $564,000, compared to approximately $566,000 in FY 2010s third quarter and
$562,000 in FY 2009s fourth quarter. |
| The Companys FY 2010 fourth-quarter net contracts of $315.3 million and 558 units,
decreased by 27% in both dollars and units, compared to FY 2009s fourth-quarter net contracts
of $430.8 million and 765 units. The Companys FY 2010 net contracts of $1.47 billion and
2,605 units increased by 13% and 6%, respectively, compared to net contracts of $1.30 billion
and 2,450 units in FY 2009. |
| The average price per unit of net contracts signed in FY 2010s fourth quarter was
approximately $565,000, compared to approximately $571,000 in FY 2010s third quarter and
$563,000 in FY 2009s fourth quarter. |
| The average price per unit of cancellations in FY 2010s fourth quarter was approximately
$554,000, compared to approximately $488,000 in FY 2010s third quarter and $546,000 in FY
2009s fourth quarter. |
| In FY 2010, fourth-quarter cancellations totaled 54. This compared to 46, 46 and 38 in FY
2010s third second and first quarters; 57, 78, 161, and 157, respectively, in FY 2009s
fourth, third, second and first quarters; 233, 195, 308, and 257, respectively, in FY 2008s
fourth, third, second and first quarters; 417, 347, 384, and 436, respectively, in FY 2007s
fourth, third, second and first quarters; and 585 and 317, respectively, in FY 2006s fourth
and third quarters. FY 2006s third quarter was the first period in which cancellations
reached elevated levels during the current housing downturn. |
| FY 2010s fourth-quarter cancellation rate (current-quarter cancellations divided by
current-quarter signed contracts) was 8.8%. This compared to 6.2% 5.3% and 6.7% in FY 2010s
third, second and first quarters; 6.9%, 8.5%, 21.7% and 37.1%, respectively in FY 2009s
fourth, third, second and first quarters; 30.2%, 19.4%, 24.9% and 28.4%, respectively, in FY
2008s fourth, third, second and first quarters; 38.9%, 23.8%, 18.9% and 29.8%, respectively,
in FY 2007s fourth, third, second and first quarters; and 36.7% and 18.0%, respectively, in
FY 2006s fourth and third quarters. |
| As a percentage of beginning-quarter backlog, FY 2010s fourth-quarter cancellation rate
was 3.3%. This compared to 2.6%, 3.1% and 2.5% in FY 2010s third, second and first quarters;
3.5%, 4.9%, 9.8% and 7.7%, respectively, in FY 2009s fourth third, second and first quarters;
9.0%, 6.4%, 9.2% and 6.5%, respectively, in FY 2008s fourth, third, second and first
quarters; 8.3%, 6.0%, 6.5% and 6.7%, respectively in FY 2007s fourth, third, second and first
quarters; and 7.3% and 3.6% respectively, in the fourth and third quarters of FY 2006. |
*more*
| In FY 2010, year-end backlog of $852.1 million and 1,494 units declined 3% in dollars and 2% in
units, compared to FY 2009s year-end backlog of $874.8 million and 1,531 units. |
| At October 31, 2010, unconsolidated entities in which the Company had an interest had a
backlog of $91.2 million compared to $36.7 million at October 31, 2009. In FY 2010s fourth
quarter and twelve-month periods, such unconsolidated entities produced $49.7 million and
$185.7 million of contracts, respectively, versus $28.1 million and $56.6 million,
respectively, in the previous year. |
| The Company ended FY 2010 with $1.24 billion in cash and marketable U.S. Treasury and
Agency securities compared to $1.64 billion at 2010s third-quarter end and $1.91 billion at
FYE 2009. The decrease in cash between FY 2010s third and fourth quarters was due primarily
to the repayment of the $331.7 million term loan, the restriction of $60.9 million to
collateralize letters of credit remaining from its previous credit facility and other
obligations, the use of $10.1 million to retire debt, and the payment of $66.1 million for
land purchases. The decrease was offset in part by cash generated from operations and the
receipt of $18.3 million from land sales. At FYE 2010, the Company had $799 million available
under its 12-bank credit facility, which matures in October 2014. |
| The Companys Equity at FYE 2010 was $2.56 billion, compared to $2.52 billion at FYE 2009. |
| The Company ended FY 2010 with a net-debt-to-capital ratio(1) of 13.6%, compared
to 11.5% at FY 2010s third-quarter end and 7.4% at FYE 2009. |
| The Company ended FY 2010 with approximately 34,900 lots owned and optioned, compared to
35,800 one quarter earlier, 31,900 one year earlier and 91,200 at its peak at FY 2006s
second-quarter end. At 2010s fourth-quarter end, approximately 28,900 of these lots were
owned, of which approximately 10,500 lots, including those in backlog, were substantially
improved. The decline between the FY 2010s fourth and third quarters was primarily due to
the fourth quarter bulk sale of lots in 13 non-core communities. |
| In the fourth quarter of FY 2010 the Company purchased 1,276 lots for $66.1 million, and,
for the full fiscal year, purchased 6,203 lots for $418.2 million. |
| The Company ended FY 2010 with 195 selling communities, compared to 190 at FY 2010s
third-quarter end and 200 at FYE 2009. The Company expects to end FY 2011 with between 215 and
225 selling communities, compared to its peak of 325 communities at FY 2007s second-quarter
end. |
*more*
| Based on FYE 2010s backlog and the pace of activity at its communities, the Company currently
estimates it will deliver between 2,100 and 2,900 homes in FY 2011. It believes the average
delivered price for FY 2011 will be between $540,000 and $565,000 per home, with the a higher
average price of delivered homes in the first quarter than in the final three quarters of FY
2011 due to geographic mix. |
| As a result of debt repayments and land purchases, the Companys outstanding debt is
approximately equal to its qualified inventory; therefore, the Company expects to have little
or no interest directly expensed in FY 2011, compared to $22.8 million of interest directly
expensed in FY 2010. |
| In response to the recent heightened attention to home mortgages, the Company reported that
only 25 mortgages out of approximately 13,000 that TBI Mortgage, the Companys mortgage
subsidiary, has originated since FY 2005 have been put back to the Company. The Company has
recorded a loss of $3.0 million cumulatively against these loans, of which $0.6 million is
still reserved. |
(1) | Net debt-to-capital is calculated as total debt minus mortgage warehouse loans minus cash and
marketable U.S. Treasury and Agency securities, divided by total debt minus mortgage warehouse
loans minus cash and marketable U.S. Treasury and Agency securities plus stockholders equity. |
Toll Brothers will be broadcasting live via the Investor Relations section of its website,
www.tollbrothers.com, a conference call hosted by Douglas C. Yearley, Jr. at 2:00 p.m. (EST) today,
December 2, 2010, to discuss these results and its outlook for FY 2011. To access the call, enter
the Toll Brothers website, then click on the Investor Relations page, and select Conference
Calls. Participants are encouraged to log on at least fifteen minutes prior to the start of the
presentation to register and download any necessary software.
The call can be heard live with an on-line replay which will follow and continue through January
31, 2011. Podcast (iTunes required) and MP3 format replays will be available approximately 48 hours
after the conference call via the Conference Calls section of the Investor Relations portion of
the Toll Brothers website.
Toll Brothers, Inc. is the nations leading builder of luxury homes. The Company began business in
1967 and became a public company in 1986. Its common stock is listed on the New York Stock
Exchange under the symbol TOL. The Company serves move-up, empty-nester, active-adult and
second-home home buyers and operates in 19 states: Arizona, California, Colorado, Connecticut,
Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New
York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia.
*more*
Toll Brothers builds luxury single-family detached and attached home communities, master planned
luxury residential resort-style golf communities and urban low-, mid- and high-rise communities,
principally on land it develops and improves. The Company operates its own architectural,
engineering, mortgage, title, land development and land sale, golf course development and
management, home security and landscape subsidiaries. The Company also operates its own lumber
distribution, and house component assembly and manufacturing operations.
Toll Brothers, a FORTUNE 1000 Company, is honored to have won the three most coveted awards in the
homebuilding industry: Americas Best Builder from the National Association of Home Builders, the
National Housing Quality Award, and Builder of the Year. Toll Brothers was honored to receive the
#1 ranking in Fortune Magazines 2010 Worlds Most Admired Companies Survey among home building
companies. Toll Brothers proudly supports the communities in which it builds; among other
philanthropic pursuits, the Company sponsors the Toll Brothers Metropolitan Opera International
Radio Network, bringing opera to neighborhoods throughout the world. For more information, visit
tollbrothers.com.
Certain information included in this release is forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not limited to, information related to:
anticipated operating results; home deliveries; consumer demand; financial resources and condition;
changes in revenues; changes in profitability; changes in margins; selling, general and
administrative expenses; availability of tax refunds; average prices for delivered homes; inventory
write-downs; effects of home buyer cancellations; growth and expansion, including through land
purchases; the ability to gain approvals and to open new communities; the ability to sell homes and
properties; the ability to deliver homes from backlog; the ability to produce the liquidity and
capital necessary to expand and take advantage of opportunities in the future; and industry trends.
Such forward-looking information is subject to a number of risks and uncertainties set forth in our
filings with the U.S. Securities and Exchange Commission. As a consequence of these and other risks
and uncertainties, the Companys current plans, anticipated actions, and future financial
resources, condition and results may differ materially from those expressed in any forward-looking
statement.
Any or all of the forward-looking statements included in this release are not guarantees of future
performance and may turn out to be inaccurate. Forward- looking statements speak only as of the
date they are made. The Company undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or otherwise.
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
October 31, | October 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 1,039,060 | $ | 1,807,718 | ||||
Marketable U.S. Treasury and Agency securities |
197,867 | 101,176 | ||||||
Restricted cash |
60,906 | |||||||
Inventory |
3,241,725 | 3,183,566 | ||||||
Property, construction and office equipment, net |
79,916 | 70,441 | ||||||
Receivables, prepaid expenses and other assets |
97,039 | 95,774 | ||||||
Mortgage loans receivable |
93,644 | 43,432 | ||||||
Customer deposits held in escrow |
21,366 | 17,653 | ||||||
Investments in and advances to unconsolidated
entities |
198,442 | 152,844 | ||||||
Income tax refund recoverable |
141,590 | 161,840 | ||||||
$ | 5,171,555 | $ | 5,634,444 | |||||
LIABILITIES AND EQUITY |
||||||||
Liabilities: |
||||||||
Loans payable |
$ | 94,491 | $ | 472,854 | ||||
Senior notes |
1,544,110 | 1,587,648 | ||||||
Senior subordinated notes |
| 47,872 | ||||||
Mortgage company warehouse loan |
72,367 | 27,015 | ||||||
Customer deposits |
77,156 | 88,625 | ||||||
Accounts payable |
91,738 | 79,097 | ||||||
Accrued expenses |
570,321 | 640,221 | ||||||
Income taxes payable |
162,359 | 174,630 | ||||||
Total liabilities |
2,612,542 | 3,117,962 | ||||||
Equity: |
||||||||
Stockholders Equity |
||||||||
Common stock |
1,664 | 1,647 | ||||||
Additional paid-in capital |
360,006 | 316,518 | ||||||
Retained earnings |
2,194,456 | 2,197,830 | ||||||
Treasury stock, at cost |
(96 | ) | (159 | ) | ||||
Accumulated other
comprehensive loss |
(577 | ) | (2,637 | ) | ||||
Total stockholders equity |
2,555,453 | 2,513,199 | ||||||
Noncontrolling interest |
3,560 | 3,283 | ||||||
Total equity |
2,559,013 | 2,516,482 | ||||||
$ | 5,171,555 | $ | 5,634,444 | |||||
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands, except per share data)
(unaudited)
(unaudited)
Twelve Months Ended | Three Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues |
$ | 1,494,771 | $ | 1,755,310 | $ | 402,600 | $ | 486,585 | ||||||||
Cost of revenues |
1,383,075 | 1,951,312 | 367,152 | 506,024 | ||||||||||||
Selling, general and
administrative expenses |
263,224 | 313,209 | 69,237 | 79,275 | ||||||||||||
Interest expense |
22,751 | 7,949 | 4,163 | 6,157 | ||||||||||||
1,669,050 | 2,272,470 | 440,552 | 591,456 | |||||||||||||
Loss from operations |
(174,279 | ) | (517,160 | ) | (37,952 | ) | (104,871 | ) | ||||||||
Other: |
||||||||||||||||
Income (loss) from unconsolidated entities |
23,470 | (7,518 | ) | 18,653 | 837 | |||||||||||
Interest and other |
34,830 | 41,906 | 10,348 | 8,924 | ||||||||||||
Expenses related to early retirement of
debt |
(1,208 | ) | (13,693 | ) | (516 | ) | (11,626 | ) | ||||||||
(Loss) income before income taxes |
(117,187 | ) | (496,465 | ) | (9,467 | ) | (106,736 | ) | ||||||||
Income tax (benefit) provision |
(113,813 | ) | 259,360 | (59,946 | ) | 4,698 | ||||||||||
Net (loss) income |
$ | (3,374 | ) | $ | (755,825 | ) | $ | 50,479 | $ | (111,434 | ) | |||||
(Loss) income per share: |
||||||||||||||||
Basic |
$ | (0.02 | ) | $ | (4.68 | ) | $ | 0.30 | $ | (0.68 | ) | |||||
Diluted |
$ | (0.02 | ) | $ | (4.68 | ) | $ | 0.30 | $ | (0.68 | ) | |||||
Weighted-average number of
shares: |
||||||||||||||||
Basic |
165,666 | 161,549 | 166,269 | 163,117 | ||||||||||||
Diluted |
165,666 | 161,549 | 167,777 | 163,117 | ||||||||||||
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)
Twelve Months Ended | Three Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Impairment charges recognized: |
||||||||||||||||
Cost of sales |
$ | 115,258 | $ | 465,411 | $ | 27,038 | $ | 85,484 | ||||||||
Loss from unconsolidated entities |
| 11,300 | ||||||||||||||
$ | 115,258 | $ | 476,711 | $ | 27,038 | $ | 85,484 | |||||||||
Depreciation and amortization |
$ | 17,206 | $ | 23,461 | $ | 3,637 | $ | 5,450 | ||||||||
Interest incurred |
$ | 114,975 | $ | 118,026 | $ | 27,235 | $ | 30,499 | ||||||||
Interest expense: |
||||||||||||||||
Charged to cost of sales |
$ | 75,876 | $ | 78,661 | $ | 20,466 | $ | 23,523 | ||||||||
Charged to selling, general and
administrative expense |
22,751 | 7,949 | 4,163 | 6,157 | ||||||||||||
Charged to interest income and other |
8,369 | 10,116 | 6,583 | 8,387 | ||||||||||||
$ | 106,996 | $ | 96,726 | $ | 31,212 | $ | 38,067 | |||||||||
Home sites controlled: |
||||||||||||||||
Owned |
28,891 | 26,872 | ||||||||||||||
Optioned |
5,961 | 5,045 | ||||||||||||||
34,852 | 31,917 | |||||||||||||||
Lots improved |
10,457 | 10,815 | ||||||||||||||
*more*
Toll Brothers operates in four geographic segments: | ||
North:
|
Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York | |
Mid-Atlantic:
|
Delaware, Maryland, Pennsylvania and Virginia | |
South:
|
Florida, North Carolina, South Carolina and Texas | |
West:
|
Arizona, California, Colorado and Nevada |
Three Months Ended | Three Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
199 | 293 | $ | 102.0 | $ | 156.9 | ||||||||||
Mid-Atlantic |
217 | 232 | 127.9 | 128.2 | ||||||||||||
South |
145 | 153 | 75.3 | 76.2 | ||||||||||||
West |
139 | 182 | 97.4 | 125.3 | ||||||||||||
Total consolidated |
700 | 860 | $ | 402.6 | $ | 486.6 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
183 | 224 | $ | 96.8 | $ | 122.1 | ||||||||||
Mid-Atlantic |
184 | 244 | 106.3 | 134.7 | ||||||||||||
South |
107 | 113 | 57.5 | 60.3 | ||||||||||||
West |
84 | 184 | 54.7 | 113.7 | ||||||||||||
Total consolidated |
558 | 765 | $ | 315.3 | $ | 430.8 | ||||||||||
Backlog |
||||||||||||||||
North |
521 | 550 | $ | 259.3 | $ | 283.6 | ||||||||||
Mid-Atlantic |
475 | 493 | 284.4 | 293.6 | ||||||||||||
South |
296 | 282 | 159.7 | 148.0 | ||||||||||||
West |
202 | 206 | 148.7 | 149.6 | ||||||||||||
Total consolidated |
1,494 | 1,531 | $ | 852.1 | $ | 874.8 | ||||||||||
In fiscal 2010, the Company discontinued the sale of homes in West Virginia and Georgia. At October
31, 2010, the Company had no backlog in West Virginia and Georgia.
*more*
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
774 | 983 | $ | 407.7 | $ | 585.3 | ||||||||||
Mid-Atlantic |
876 | 862 | 488.4 | 492.7 | ||||||||||||
South |
498 | 544 | 264.3 | 288.2 | ||||||||||||
West |
494 | 576 | 334.4 | 389.1 | ||||||||||||
Total consolidated |
2,642 | 2,965 | $ | 1,494.8 | $ | 1,755.3 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
745 | 663 | $ | 383.4 | $ | 306.4 | ||||||||||
Mid-Atlantic |
858 | 797 | 479.1 | 424.0 | ||||||||||||
South |
512 | 472 | 276.0 | 231.1 | ||||||||||||
West |
490 | 518 | 333.5 | 343.2 | ||||||||||||
Total consolidated |
2,605 | 2,450 | $ | 1,472.0 | $ | 1,304.7 | ||||||||||
Unconsolidated entities:
Information related to revenues and contracts of entities in which we have an interest for the
three-month and twelve-months periods ended October 31, 2010 and 2009 is as follows:
2010 | 2009 | 2010 | 2009 | |||||||||||||
Units | Units | $(Mill) | $(Mill) | |||||||||||||
Three months ended October 31, |
||||||||||||||||
Revenues |
82 | 19 | $ | 67.9 | $ | 11.8 | ||||||||||
Contracts |
63 | 43 | $ | 49.7 | $ | 28.1 | ||||||||||
Twelve months ended October
31, |
||||||||||||||||
Revenues |
169 | 71 | $ | 131.2 | $ | 47.2 | ||||||||||
Contracts |
238 | 93 | $ | 185.7 | $ | 56.6 | ||||||||||
Backlog at October 31, |
126 | 57 | $ | 91.2 | $ | 36.7 |
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