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8-K - FORM 8-K - Toll Brothers, Inc. | c24419e8vk.htm |
EXHIBIT 99.1
For Immediate Release
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CONTACT: Frederick N. Cooper (215) 938-8312 | |
November 8, 2011
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fcooper@tollbrothersinc.com | |
Joseph R. Sicree (215) 938-8045 | ||
jsicree@tollbrothersinc.com |
TOLL BROTHERS REPORTS PRELIMINARY 4th QTR AND FYE 2011 RESULTS FOR REVENUES,
CONTRACTS AND BACKLOG
CONTRACTS AND BACKLOG
Horsham, PA, November 8, 2011 Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the
nations leading builder of luxury homes, in anticipation of its participation in upcoming investor
meetings, today announced preliminary results for its fourth quarter and fiscal year ended October
31, 2011 for revenues, contracts and backlog.
FY 2011s fourth-quarter revenues and home building deliveries of approximately $427.7 million and
757 units increased 6% in dollars and 8% in units, compared to FY 2010s fourth-quarter results of
$402.6 million and 700 units.
FY 2011s fourth-quarter net signed contracts of approximately $389.9 million and 644 units rose
24% in dollars and 15% in units, compared to FY 2010s fourth-quarter net signed contracts of
$315.3 million and 558 units. The average price of fourth-quarter net signed contracts was
$606,000, compared to $565,000 in FY 2010s fourth quarter. On a per-community basis, FY 2011s
fourth-quarter net signed contracts of approximately 3.04 units per community were 3% higher than
FY 2010s fourth-quarter total, 15% lower than FY 2009s fourth-quarter total, and 63% and 46%
greater than FY 2008 and FY 2007s fourth-quarter totals, respectively. They were, however, still
well below the Companys historical fourth-quarter average, dating back to 1990, of 5.87 units per
community.
The Companys contract cancellation rate (current-quarter cancellations divided by current-quarter
gross signed contracts) was approximately 7.9% in the fourth quarter of FY 2011, compared to 8.8%
in FY 2010s fourth quarter. As a percentage of beginning-quarter backlog, the cancellation rate
was 3.1%.
These rates were consistent with the Companys pre-downturn historical averages.
These rates were consistent with the Companys pre-downturn historical averages.
The Company ended FY 2011 with a backlog of approximately $981.1 million and 1,667 units, which
increased 15% in dollars and 12% in units, compared to FY 2010s year-end backlog of $852.1 million
and 1,494 units.
For FY 2011, home building revenues of approximately $1.48 billion and 2,611 units declined 1% in
both dollars and units, compared to FY 2010s results of $1.49 billion and 2,642 units. FY 2011 net
signed contracts of approximately $1.60 billion and 2,784 units increased 9% in dollars and 7% in
units, compared to FY 2010s results of $1.47 billion and 2,605 units.
*more*
Toll Brothers ended FY 2011 with 215 selling communities, compared to 195 at FYE 2010. The Company
ended FY 2011 with approximately 37,500 lots owned and optioned, compared to approximately 36,200
at the previous quarter-end and 34,900 one year ago.
The Company ended FY 2011 with approximately $1.14 billion of cash and marketable securities,
compared to $1.18 billion at FY 2011s third-quarter end and $1.24 billion at FYE 2010. The Company
used approximately $48.5 million of cash in the fourth quarter for stock repurchases, approximately
$10.4 million to retire $10.0 million of its Senior Notes due November 2012, and approximately
$35.6 million on land purchases. At FYE 2011, the Company also had approximately $785 million
available under its $885 million 12-bank credit facility, which matures in October 2014.
Douglas C. Yearley, Jr., Toll Brothers chief executive officer, stated: Notwithstanding a
tumultuous summer on Wall Street, the financial chaos in Europe, the budget and political crises in
Washington and two major storms that hobbled our core Mid-Atlantic and Northeast markets, we saw
orders increase 24% in dollars and 15% in units. Well located communities in the Boston to
Washington D.C. corridor continue to post solid results. Under our City Living brand, we opened
two much-anticipated New York City buildings which began taking contracts this quarter. These
buildings contributed half of the increase in average net contract price in the fourth quarter of
FY 2011 compared to one year ago.
These results are preliminary and unaudited. The Company will announce final fourth-quarter and FYE
2011 results, including earnings, on December 6, 2011.
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 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, and Virginia.
Toll Brothers builds an array of luxury residential communities, principally on land it develops
and improves: single-family detached and attached home communities, master planned resort-style
golf communities, and urban low-, mid- and high-rise communities. 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, house component assembly, and manufacturing operations.
Toll Brothers 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 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 www.tollbrothers.com.
*more*
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; financial resources and condition; selling communities; home
deliveries; average home prices; consumer demand and confidence; contract pricing; business and
investment opportunities; and market and industry trends.
Such forward-looking information involves important risks and uncertainties that could
significantly affect actual results and cause them to differ materially from expectations expressed
herein and in other Company reports, SEC filings, statements and presentations. These risks and
uncertainties include, among others: local, regional, national and international economic
conditions; fluctuating consumer demand and confidence; interest and unemployment rates; changes in
sales conditions, including home prices, in the markets where we build homes; the competitive
environment in which we operate; the availability and cost of land for future growth; conditions
that could result in inventory write-downs or write-downs associated with investments in
unconsolidated entities; the ability to recover our deferred tax assets; the availability of
capital; uncertainties in the capital and securities markets; liquidity in the credit markets;
changes in tax laws and their interpretation; effects of governmental legislation and regulation;
the outcome of various legal proceedings; the availability of adequate insurance at reasonable
cost; the impact of construction defect, product liability and home warranty claims, including the
adequacy of self-insurance accruals, the applicability and sufficiency of our insurance coverage;
the ability of customers to obtain financing for the purchase of homes; the ability of home buyers
to sell their existing homes; the ability of the participants in various joint ventures to honor
their commitments; the availability and cost of labor and building and construction materials; the
cost of raw materials; construction delays; domestic and international political events; and
weather conditions.
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 operates in four geographic segments: | ||
North:
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Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York | |
Mid-Atlantic:
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Delaware, Maryland, Pennsylvania and Virginia | |
South:
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Florida, North Carolina, South Carolina and Texas | |
West:
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Arizona, California, Colorado and Nevada |
Three Months Ended | Three Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
205 | 199 | $ | 108.0 | $ | 102.0 | ||||||||||
Mid-Atlantic |
262 | 217 | 148.6 | 127.9 | ||||||||||||
South |
159 | 145 | 87.7 | 75.3 | ||||||||||||
West |
131 | 139 | 83.4 | 97.4 | ||||||||||||
Total consolidated |
757 | 700 | $ | 427.7 | $ | 402.6 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
179 | 183 | $ | 115.4 | $ | 96.8 | ||||||||||
Mid-Atlantic |
225 | 184 | 124.9 | 106.3 | ||||||||||||
South |
133 | 107 | 81.9 | 57.5 | ||||||||||||
West |
107 | 84 | 67.7 | 54.7 | ||||||||||||
Total consolidated |
644 | 558 | $ | 389.9 | $ | 315.3 | ||||||||||
BACKLOG |
||||||||||||||||
North |
553 | 521 | $ | 307.4 | $ | 259.3 | ||||||||||
Mid-Atlantic |
487 | 475 | 288.9 | 284.4 | ||||||||||||
South |
442 | 296 | 263.2 | 159.7 | ||||||||||||
West |
185 | 202 | 121.6 | 148.7 | ||||||||||||
Total consolidated |
1,667 | 1,494 | $ | 981.1 | $ | 852.1 | ||||||||||
*more*
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
October 31, | October 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
718 | 774 | $ | 381.6 | $ | 407.7 | ||||||||||
Mid-Atlantic |
887 | 876 | 499.7 | 488.4 | ||||||||||||
South |
522 | 498 | 285.0 | 264.3 | ||||||||||||
West |
484 | 494 | 309.5 | 334.4 | ||||||||||||
Total consolidated |
2,611 | 2,642 | $ | 1,475.8 | $ | 1,494.8 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
750 | 745 | $ | 429.6 | $ | 383.4 | ||||||||||
Mid-Atlantic |
899 | 858 | 504.2 | 479.1 | ||||||||||||
South |
668 | 512 | 388.5 | 276.0 | ||||||||||||
West |
467 | 490 | 282.4 | 333.5 | ||||||||||||
Total consolidated |
2,784 | 2,605 | $ | 1,604.7 | $ | 1,472.0 | ||||||||||
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, 2011
and 2010 is as follows:
2011 | 2010 | 2011 | 2010 | |||||||||||||
Units | Units | $ (Mill) | $ (Mill) | |||||||||||||
Three months ended October 31, |
||||||||||||||||
Revenues |
42 | 82 | $ | 34.8 | $ | 67.9 | ||||||||||
Contracts |
33 | 63 | $ | 29.6 | $ | 49.7 | ||||||||||
Twelve months ended October 31, |
||||||||||||||||
Revenues |
284 | 169 | $ | 233.4 | $ | 131.2 | ||||||||||
Contracts |
184 | 238 | $ | 163.1 | $ | 185.7 | ||||||||||
Backlog at October 31, |
26 | 126 | $ | 21.0 | $ | 91.2 |
###