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8-K - FORM 8-K - Toll Brothers, Inc. | c05402e8vk.htm |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE | CONTACT: Frederick N. Cooper (215) 938-8312 | |
August 25, 2010 | fcooper@tollbrothersinc.com | |
Joseph R. Sicree (215) 938-8045 | ||
jsicree@tollbrothersinc.com |
TOLL BROTHERS REPORTS FY 2010 3RD QTR AND 9 MONTH RESULTS
Horsham, PA, August 25, 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 third quarter and nine months ended July 31, 2010.
The Company reported FY 2010 third-quarter pre-tax income of $0.8 million and net income of $27.3
million, or $0.16 per share diluted, compared to a FY 2009 third-quarter pre-tax loss of $111.3
million and a net loss of $472.3 million, or $2.93 per share diluted.
FY 2010s third-quarter results included pre-tax write-downs totaling $12.5 million compared to FY
2009 third-quarter pre-tax write-downs totaling $115.0 million. FY 2010s third quarter included a
tax benefit of $26.5 million, primarily due to the reversal of valuation allowances on taxable
losses incurred and the reversal of accrued tax reserves associated with statute expirations. FY
2009s third quarter included non-cash federal and state deferred tax asset valuation allowances of
$439.4 million. Excluding write-downs, FY 2010s third-quarter pre-tax income was $13.3 million,
compared to pre-tax income of $3.7 million in FY 2009s third quarter.
FY 2010s third-quarter revenues and home building deliveries of $454.2 million and 803 units
declined 2% in dollars but rose 1% in units, compared to FY 2009s third quarter results.
With 19% fewer selling communities during FY 2010s third quarter than during FY 2009s same
period, the Companys FY 2010 third-quarter net signed contracts of $400.1 million and 701 units
declined 11% in dollars and 16% in units, compared to FY 2009s third-quarter net signed contracts.
On a per-community basis, FY 2010s third-quarter net signed contracts of 3.69 units per community
were above FY 2009s, FY 2008s and FY 2007s third-quarter per-community totals of 3.56 units,
2.71 units and 3.42 units, respectively; however, they were still well below the Companys
historical third-quarter average, dating back to 1990, of 6.09 units per community.
The Companys contract cancellation rate (current-quarter cancellations divided by current-quarter
gross signed contracts) was 6.2% in the third quarter of FY 2010, compared to 8.5% in FY 2009s
third quarter. This marked the fifth consecutive quarter in which cancellation rates were
consistent with historic norms after twelve consecutive prior quarters of elevated cancellation
rates.
*more*
FY 2010s third-quarter-end backlog of $939.4 million and 1,636 units rose 1% in both dollars and
units, compared to FY 2009s third-quarter-end backlog.
For FY 2010s nine-month period, the Company reported a net loss of $53.9 million, or $0.33 per
share diluted compared to FY 2009s nine-month-period net loss of $644.4 million, or $4.00 per
share diluted. FY 2010s nine-month period included pre-tax write-downs totaling $88.2 million. FY
2009s comparable period was impacted by $443.7 million of non-cash federal and state deferred tax
asset valuation allowances and pre-tax write-downs totaling $391.2 million. Excluding write-downs,
FY 2010s nine-month pre-tax loss was $19.5 million, compared to FY 2009s nine-month pre-tax
earnings, excluding write-downs, of $1.5 million.
For FY 2010s first nine months, home building revenues of $1.09 billion and 1,942 units declined
14% in dollars and 8% in units, compared to FY 2009. FY 2010 nine-month net signed contracts of
$1.16 billion and 2,047 units increased 32% in dollars and 21% in units compared to FY 2009.
Toll Brothers ended FY 2010s third quarter with 190 selling communities, compared to 215 at FY
2009s third-quarter end. The Company expects to finish FY 2010 with approximately 195 selling
communities. The Company ended FY 2010s third quarter with approximately 35,800 lots owned and
optioned, compared to approximately 33,600 in the previous quarter and 35,400 one year ago.
Toll Brothers ended FY 2010s third quarter with a net-debt-to-capital ratio(1) of
11.5%, compared to 14.5% at FY 2009s third-quarter end. The Company ended FY 2010s third quarter
with $1.64 billion of cash and marketable U.S. Treasury and Agency securities, compared to $1.55
billion the previous quarter and $1.66 billion at FY 2009s third-quarter end. The increase in cash
between FY 2010s second and third quarters was due primarily to cash generated from operations and
to receipt of $152.5 million in tax refunds, offset in part by the Companys use of $63.1 million
to retire debt, $104.1 million for the purchase of land and $29.1 million for investment in a new
joint venture. At FY 2010s third-quarter end, the Company also had $1.39 billion available under
its $1.89 billion 30-bank credit facility, which matures in March 2011.
Douglas C. Yearley, Jr., Toll Brothers chief executive officer, stated: We were pleased to return
to profitability this quarter, especially with volumes down 65% from our peak. Although revenues
and unit deliveries for the quarter were relatively flat compared to one year ago, our gross
margin, before write-offs, improved by 350 basis points. While much of this quarters profitability
was due to tax benefits, we are encouraged by the decline in impairments and our fifth consecutive
quarter of more normalized cancellation rates after three years of elevated rates.
Another bright spot has been the performance of our high-rise projects in the metro New York City
urban market built under the Toll Brothers City Living brand. Among these are several 50% joint
ventures, which, in FY 2010s third quarter, produced $38.5 million of contracts versus $17.7
million the previous year, and which ended this third quarter with a backlog of $103.0 million
versus $19.4 million in FY 2009s same quarter. These joint ventures should continue to contribute
profits for the next several quarters.
*more*
We are pursuing growth. We are looking for attractive distressed land and debt acquisition
opportunities. This quarter our count of lots owned and optioned increased to 35,800 from our
trough of 31,700 at FY 2010s first-quarter-end. This was the second consecutive quarter of
sequential growth in our land position. We continue to find opportunities in most of our markets
and this quarter spent approximately $104 million on land acquisitions, bringing our nine month
total to approximately $340 million.
Due to our very low leverage and significant cash position, we have the flexibility to
opportunistically pursue transactions that are arising from the current distress in the real estate
industry. This quarter we announced the formation of Gibraltar Capital and Asset Management Corp.
(Gibraltar), a wholly owned subsidiary. Gibraltar will look to capitalize on Toll Brothers
expertise and nationwide presence to pursue real estate opportunities.
With a quick start out of the gate, we were pleased to announce that Gibraltar, in a joint venture
with Oaktree Capital Management, L.P. and Milestone Merchant Partners, LLC, successfully completed
a transaction to acquire approximately $1.7 billion (face value) of mainly distressed real estate
loans and properties in partnership with the Federal Deposit and Insurance Corp. (FDIC). The
primarily residential portfolio consists of approximately 200 loans and 80 real estate properties
averaging about $6.1 million per asset.
Joel H. Rassman, chief financial officer, stated: Subject to the caveats in our Statement on
Forward-Looking Information included in this release, we offer the following limited guidance:
We expect the approximate range of deliveries in 2010s fourth quarter will be between 560 and 760
units, bringing total deliveries for FY 2010 to between approximately 2,500 and 2,700 homes. We
estimate the average delivered price per home for the fourth quarter will be between $560,000 and
$570,000. We believe that our gross margins before interest and write downs as a percentage of
revenues for the fourth quarter will be higher than in 2009s fourth quarter.
We continue to estimate a reduction in absolute dollars expended for SG&A in FY 2010s fourth
quarter compared to FY 2009s fourth quarter. However, since we currently project lower revenues in
2010s fourth quarter than in FY 2009s, we expect SG&A without interest as a percentage of
revenues will be higher in FY 2010s fourth quarter than in FY 2009s. Since we also project lower
settlements in FY 2010s fourth quarter than in FY 2010s third quarter, we expect SG&A as a
percentage of revenues to be higher in FY 2010s fourth quarter than in FY 2010s third quarter.
Robert I Toll, executive chairman, stated: We knew we would face more challenging contract
comparisons in the second half of Fiscal 2010 than in the first half, because FY 2009s first half
was severely impacted by the fallout from the financial crisis that began in late 2008. Although
this quarters contracts-per- community were above the last several years third quarters, with
fewer selling communities than in previous years, our gross contract numbers were not impressive.
*more*
The acceleration we saw in deposits and traffic through the first few weeks of May was not
sustained during the remainder of the quarter, a trend we first noted in our press release of June
16, 2010. Our observations were subsequently borne out over the following weeks by data showing
declining consumer confidence and weaker housing activity.
Although the unemployment rate among our buyer profile remains at half the national unemployment
rate, recent economic and political news continues to dampen our customers confidence. We believe
the combination of potential buyers postponing their purchasing decisions, a lack of new home
production over the past several years, and a significant reduction in our competition in the
luxury home niche could result in pent-up demand coupled with limited supply once a recovery takes
hold. We believe we are well-positioned to take advantage of this based on our access to capital,
our land position and our brand name reputation.
Toll Brothers financial highlights for the third quarter and nine months ended July 31, 2010
(unaudited):
| FY 2010s third-quarter net income was $27.3 million, or $0.16 per share diluted, compared
to FY 2009s third-quarter net loss of $472.3 million, or $2.93 per share diluted. FY 2010s
third-quarter net income included pre-tax write-downs of $12.5 million: $6.6 million of the
write-downs was attributable to operating communities, $5.8 million to owned land for future
communities and $0.1 million to land controlled for future communities. In FY 2009,
third-quarter pre-tax write-downs totaled $115.0 million and non-cash federal and state
deferred tax asset valuation allowances were $439.4 million. |
|
| Excluding write-downs, FY 2010s third-quarter pre-tax income was $13.3 million, compared
to FY 2009s third-quarter pre-tax income, excluding write-downs, of $3.7 million. |
|
| FY 2010s third quarter gross margin improved to 13.6% from a negative margin of 10.9% in
FY 2009s third quarter. Excluding write-downs, FY 2010s third quarter gross margin improved
to 16.4% from 12.9% in FY 2009s third quarter. |
|
| FY 2010s nine-month net loss was $53.9 million, or $0.33 per share diluted, compared to FY
2009s nine-month net loss of $644.4 million, or $4.00 per share diluted. |
|
| FY 2010s nine-month net loss included pre-tax write-downs of $88.2 million: $44.4 million
of the write-downs was attributable to operating communities, $41.6 million to owned land and
$2.2 million to land controlled for future communities. In FY 2009, nine-month pre-tax
write-downs totaled $391.2 million and non-cash federal and state deferred tax asset valuation
allowances of $443.7 million. |
|
| Excluding write-downs, FY 2010s nine-month pre-tax loss was $19.5 million, compared to
pre-tax earnings of $1.5 million for FY 2009s nine-month period, excluding write-downs. |
*more*
| The Company recorded FY 2010 third-quarter and nine-month tax benefits of $26.5 million and
$53.9 million, respectively. At July 31, 2010 the Company expects to carry back taxable losses
to recover $49.7 million against FY 2005 and FY 2006 taxable income pursuant to the Worker,
Homeownership and Business Assistance Act which was signed into law November 6, 2009. The
Company expects to generate additional tax refunds from fourth quarter operations and increase
its expected carryback recovery. |
|
| FY 2010s third-quarter total revenues of $454.2 million and 803 units decreased 2% in
dollars and increased 1% in units from FY 2009s third-quarter total revenues of $461.4
million and 792 units. |
|
| FY 2010s nine-month total revenues of $1.09 billion and 1,942 units declined 14% in
dollars and 8% in units compared to FY 2009s same period totals of $1.27 billion and 2,105
units. |
|
| In FY 2010s third quarter, unconsolidated entities in which the Company had an interest
delivered $29.5 million of homes, compared to $20.1 million in the third quarter of FY 2009.
In FY 2010s first nine months, unconsolidated entities in which the Company had an interest
delivered $63.3 million of homes, compared to $35.4 million in the nine-month period of 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. |
|
| The Company signed gross contracts of $422.6 million and 747 units in FY 2010s third
quarter, a decrease of 16% and 18%, respectively, compared to $502.6 million and 915 gross
contracts signed in FY 2009s third quarter. The Company signed 2,177 gross contracts totaling
$1.23 billion in FY 2010s first nine months, an increase of 5% in both units and dollars,
compared to the 2,081 gross contracts totaling $1.16 billion signed in FY 2009s nine-month
period. |
|
| The average price per unit of gross contracts signed in FY 2010s third quarter was
approximately $566,000, compared to approximately $565,000 in FY 2010s second quarter and
$549,000 in FY 2009s third quarter. |
|
| The Companys FY 2010 third-quarter net contracts of $400.1 million and 701 units,
decreased by 11% and 16%, respectively, compared to FY 2009s third-quarter net contracts of
$447.7 million and 837 units. The Companys FY 2010 nine-month net contracts of $1.16 billion
and 2,047 units increased by 32% and 21%, respectively, compared to net contracts of $873.9
million and 1,685 units in FY 2009s nine-month period. |
|
| The average price per unit of net contracts signed in FY 2010s third quarter was
approximately $571,000, compared to approximately $567,000 in FY 2010s second quarter and
$535,000 in FY 2009s third quarter. |
|
| The average price per unit of cancellations in FY 2010s third quarter was approximately
$488,000, compared to approximately $539,000 in FY 2010s second quarter and $704,000 in FY
2009s third quarter. |
*more*
| In FY 2010, third-quarter cancellations totaled 46. This compared to 46 and 38 in FY 2010s
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 third-quarter cancellation rate (current-quarter cancellations divided by
current-quarter signed contracts) was 6.2%. This compared to 5.3% and 6.7% in FY 2010s 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 third-quarter cancellation rate was
2.6%. This compared to 3.1% and 2.5% in FY 2010s 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. |
|
| In FY 2010, third-quarter-end backlog of $939.4 million and 1,636 units grew 1% in both
dollars and units, compared to FY 2009s third-quarter-end backlog of $930.7 million and 1,626
units. This was the Companys second consecutive quarter-to-prior-year-quarter backlog
increase after 16 quarter-to-prior-year quarter declines. |
|
| At July 31, 2010, unconsolidated entities in which the Company had an interest had a
backlog of $109.4 million compared to $20.3 million at July 31, 2009. In FY 2010s third
quarter and nine-month periods, such unconsolidated entities produced $40.5 million and $136.0
million of contracts, respectively, versus $17.8 million and $28.5 million, respectively, in
the previous year. |
|
| The Company ended its FY 2010 third quarter with $1.64 billion in cash and marketable U.S.
Treasury and Agency securities compared to $1.55 billion at 2010s second-quarter end and
$1.66 billion at FY 2009s third-quarter end. The increase in cash between FY 2010s second
and third quarters was due primarily to cash generated from operations and receipt of $152.5
million in tax refunds, offset in part by the Companys use of $26.7 million to retire
project-level debt, $36.4 million to repurchase senior corporate debt, and $104.1 million for
the purchase of land. At FY 2010s third-quarter end, it had $1.39 billion available under its
30-bank credit facility, which matures in March 2011. |
*more*
| The Companys Stockholders Equity at FY 2010s third-quarter end was $2.50 billion, compared to
$2.45 billion at FY 2010s second-quarter end. |
|
| The Company ended FY 2010s third quarter with a net-debt-to-capital ratio(1) of
11.5%, compared to 16.2% at FY 2010s second-quarter end and 14.5% at FY 2009s third-quarter
end. |
|
| The Company ended FY 2010s third quarter with approximately 35,800 lots owned and
optioned, compared to 33,600 one quarter earlier, 35,400 one year earlier and 91,200 at its
peak at FY 2006s second-quarter-end. At 2010s third-quarter end, approximately 29,000 of
these lots were owned, of which approximately 10,500 lots, including those in backlog, were
substantially improved. This was the second time since second-quarter end FY 2006 that the
Companys lot count increased. |
|
| The Company ended FY 2010s third quarter with 190 selling communities, compared to 190 at
FY 2010s second-quarter end and 215 at FY 2009s third-quarter end. The Company expects to
end FY 2010 with approximately 195 selling communities, compared to its peak of 325
communities at FY 2007s second-quarter end. |
|
| Based on FY 2010s third-quarter-end backlog and the pace of activity at its communities,
the Company currently estimates it will deliver between 560 and 760 homes in its fourth
quarter, bringing total deliveries to 2,500 and 2,700 homes in FY 2010. It believes the
average delivered price for FY 2010s fourth quarter will be between $560,000 and $570,000 per
home. |
|
| The Company estimates that its cost of sales as a percentage of revenues, before interest
and write-downs, for the fourth quarter of FY 2010 will be approximately equal to or lower
than FY 2009s comparable period. |
|
| Based on lower projected revenues for FY 2010s final three months, compared to FY 2009s
final three months, the Company expects SG&A expenses will be lower in absolute dollars but
higher as a percentage of revenues than in the comparable FY 2009 period. |
|
| In addition to interest expensed in cost of sales, the Company is likely to continue to
have some interest directly expensed for the fourth quarter of FY 2010 because qualifying
inventory will be lower than debt. |
|
(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 Robert I. Toll and Douglas C. Yearley, Jr. at
2:00 p.m. (EDT) today, August 25, 2010, to discuss these results and its outlook for FY 2010. 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.
*more*
The call can be heard live with an on-line replay which will follow and continue through October
31, 2010. 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 20 states: Arizona, California, Colorado, Connecticut, Delaware, Florida,
Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York,
North Carolina, Pennsylvania, South Carolina, Texas and Virginia.
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 recently 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 herein and in Company reports, SEC filings, verbal or written
statements and presentations 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; financial resources and condition; changes in revenues; changes
in profitability; changes in margins; selling, general and administrative expenses; inventory
write-downs; effects of home buyer cancellations; growth and expansion; 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 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: local, regional, national and international economic conditions, including
the current economic uncertainties in the U.S. and global credit and financial markets; domestic
and international political events; uncertainties created by terrorist attacks; effects of
governmental legislation and regulation; the competitive environment in which the Company operates;
changes in consumer confidence; changes in interest rates; unemployment rates; demand for homes;
changes in sales conditions, including home prices, foreclosure rates and sales activity in the
markets where the Company builds homes; 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 deferred tax assets; the availability of capital;
uncertainties in the capital and securities markets; liquidity in the credit markets; changes in
taxes laws and their interpretation; the outcome of various claims and 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 the Companys insurance coverage and the insurance coverage and
ability to pay of other responsible parties relating to such claims; the ability of customers to
obtain adequate and affordable 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; and weather conditions.
Any or all of the forward-looking statements included herein and in any Company reports or public
statements 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)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
July 31, | October 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 1,434,635 | $ | 1,807,718 | ||||
Marketable U.S. Treasury and Agency
securities |
205,775 | 101,176 | ||||||
Inventory |
3,256,581 | 3,183,566 | ||||||
Property, construction and office
equipment, net |
79,522 | 70,441 | ||||||
Receivables, prepaid expenses and
other assets |
86,180 | 95,774 | ||||||
Mortgage loans receivable |
67,456 | 43,432 | ||||||
Customer deposits held in escrow |
24,622 | 17,653 | ||||||
Investments in and advances to
unconsolidated entities |
193,464 | 152,844 | ||||||
Income tax refund recoverable |
49,699 | 161,840 | ||||||
$ | 5,397,934 | $ | 5,634,444 | |||||
LIABILITIES AND EQUITY |
||||||||
Liabilities: |
||||||||
Loans payable |
$ | 410,401 | $ | 472,854 | ||||
Senior notes |
1,553,615 | 1,587,648 | ||||||
Senior subordinated notes |
| 47,872 | ||||||
Mortgage company warehouse loan |
47,264 | 27,015 | ||||||
Customer deposits |
85,859 | 88,625 | ||||||
Accounts payable |
89,166 | 79,097 | ||||||
Accrued expenses |
576,203 | 640,221 | ||||||
Income taxes payable |
133,400 | 174,630 | ||||||
Total liabilities |
2,895,908 | 3,117,962 | ||||||
Equity: |
||||||||
Stockholders Equity |
||||||||
Common stock |
1,659 | 1,647 | ||||||
Additional paid-in capital |
355,743 | 316,518 | ||||||
Retained earnings |
2,143,977 | 2,197,830 | ||||||
Treasury stock, at cost |
(29 | ) | (159 | ) | ||||
Accumulated other
comprehensive loss |
(2,607 | ) | (2,637 | ) | ||||
Total stockholders equity |
2,498,743 | 2,513,199 | ||||||
Noncontrolling interest |
3,283 | 3,283 | ||||||
Total equity |
2,502,026 | 2,516,482 | ||||||
$ | 5,397,934 | $ | 5,634,444 | |||||
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands, except per share data)
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands, except per share data)
(unaudited)
Nine Months Ended | Three Months Ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues |
$ | 1,092,171 | $ | 1,268,725 | $ | 454,202 | $ | 461,375 | ||||||||
Cost of revenues |
1,015,923 | 1,445,288 | 392,416 | 511,548 | ||||||||||||
Selling, general and
administrative expenses |
193,987 | 233,934 | 67,165 | 72,070 | ||||||||||||
Interest expense |
18,588 | 1,792 | 5,124 | (3,453 | ) | |||||||||||
1,228,498 | 1,681,014 | 464,705 | 580,165 | |||||||||||||
Loss from operations |
(136,327 | ) | (412,289 | ) | (10,503 | ) | (118,790 | ) | ||||||||
Other: |
||||||||||||||||
Income (loss) from
unconsolidated entities |
4,817 | (8,355 | ) | 3,171 | (3,739 | ) | ||||||||||
Interest and other |
24,482 | 32,982 | 8,813 | 11,265 | ||||||||||||
Expenses related to early
retirement of debt |
(692 | ) | (2,067 | ) | (658 | ) | ||||||||||
(Loss) income before income
taxes |
(107,720 | ) | (389,729 | ) | 823 | (111,264 | ) | |||||||||
Income tax (benefit)
provision |
(53,867 | ) | 254,662 | (26,479 | ) | 361,067 | ||||||||||
Net (loss) income |
$ | (53,853 | ) | $ | (644,391 | ) | $ | 27,302 | $ | (472,331 | ) | |||||
(Loss) income per share: |
||||||||||||||||
Basic |
$ | (0.33 | ) | $ | (4.00 | ) | $ | 0.16 | $ | (2.93 | ) | |||||
Diluted |
$ | (0.33 | ) | $ | (4.00 | ) | $ | 0.16 | $ | (2.93 | ) | |||||
Weighted-average number of
shares: |
||||||||||||||||
Basic |
165,465 | 161,026 | 165,752 | 161,245 | ||||||||||||
Diluted |
165,465 | 161,026 | 167,658 | 161,245 | ||||||||||||
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)
Nine Months Ended | Three Months Ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Impairment charges recognized: |
||||||||||||||||
Cost of sales |
$ | 88,220 | $ | 379,928 | $ | 12,508 | $ | 109,676 | ||||||||
Loss from unconsolidated
entities |
| 11,300 | 5,300 | |||||||||||||
$ | 88,220 | $ | 391,228 | $ | 12,508 | $ | 114,976 | |||||||||
Depreciation and amortization |
$ | 13,569 | $ | 18,011 | $ | 4,512 | $ | 5,913 | ||||||||
Interest incurred |
$ | 87,740 | $ | 87,527 | $ | 28,879 | $ | 31,236 | ||||||||
Interest expense: |
||||||||||||||||
Charged to cost of sales |
$ | 55,411 | $ | 55,138 | $ | 23,033 | $ | 23,403 | ||||||||
Charged to selling, general
and administrative expense |
18,588 | 1,792 | 5,124 | (3,453 | ) | |||||||||||
Charged to interest income
and other |
1,786 | 1,729 | 977 | 1,617 | ||||||||||||
$ | 75,785 | $ | 58,659 | $ | 29,134 | $ | 21,567 | |||||||||
Home sites controlled: |
||||||||||||||||
Owned |
29,243 | 30,843 | ||||||||||||||
Optioned |
6,582 | 4,555 | ||||||||||||||
35,825 | 35,398 | |||||||||||||||
Lots improved |
10,484 | 12,334 | ||||||||||||||
*more*
Toll Brothers operates in four geographic segments:
North:
|
Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York | |
Mid-Atlantic:
|
Delaware, Maryland, Pennsylvania, Virginia and West Virginia | |
South:
|
Florida, Georgia, North Carolina, South Carolina and Texas | |
West:
|
Arizona, California, Colorado and Nevada |
Three Months Ended | Three Months Ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
248 | 250 | $ | 131.2 | $ | 145.5 | ||||||||||
Mid-Atlantic |
283 | 228 | 156.5 | 129.7 | ||||||||||||
South |
126 | 152 | 70.0 | 83.1 | ||||||||||||
West |
146 | 162 | 96.5 | 103.1 | ||||||||||||
Total consolidated |
803 | 792 | $ | 454.2 | $ | 461.4 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
220 | 246 | $ | 108.5 | $ | 119.6 | ||||||||||
Mid-Atlantic |
235 | 259 | 132.9 | 138.1 | ||||||||||||
South |
109 | 160 | 62.8 | 81.2 | ||||||||||||
West |
137 | 172 | 95.9 | 108.8 | ||||||||||||
Total consolidated |
701 | 837 | $ | 400.1 | $ | 447.7 | ||||||||||
BACKLOG |
||||||||||||||||
North |
537 | 619 | $ | 264.5 | $ | 318.5 | ||||||||||
Mid-Atlantic |
508 | 481 | 306.0 | 287.1 | ||||||||||||
South |
334 | 322 | 177.5 | 163.8 | ||||||||||||
West |
257 | 204 | 191.4 | 161.3 | ||||||||||||
Total consolidated |
1,636 | 1,626 | $ | 939.4 | $ | 930.7 | ||||||||||
*more*
Nine Months Ended | Nine Months Ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
Units | $ (Millions) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
575 | 690 | $ | 305.7 | $ | 428.4 | ||||||||||
Mid-Atlantic |
659 | 630 | 360.5 | 364.5 | ||||||||||||
South |
353 | 391 | 189.0 | 212.0 | ||||||||||||
West |
355 | 394 | 237.0 | 263.8 | ||||||||||||
Total consolidated |
1,942 | 2,105 | $ | 1,092.2 | $ | 1,268.7 | ||||||||||
CONTRACTS | ||||||||||||||||
North |
562 | 439 | $ | 286.6 | $ | 184.3 | ||||||||||
Mid-Atlantic |
674 | 553 | 372.8 | 289.3 | ||||||||||||
South |
405 | 359 | 218.5 | 170.7 | ||||||||||||
West |
406 | 334 | 278.8 | 229.6 | ||||||||||||
Total consolidated |
2,047 | 1,685 | $ | 1,156.7 | $ | 873.9 | ||||||||||
UNCONSOLIDATED ENTITIES:
Information related to revenues and contracts of entities in which we have
an interest for the three-month and nine-months periods ended July 31,
2010 and 2009 is as follows:
2010 | 2009 | 2010 | 2009 | |||||||||||||
Units | Units | $(Mill) | $(Mill) | |||||||||||||
Three months ended July 31, |
||||||||||||||||
Revenues |
40 | 30 | $ | 29.5 | $ | 20.1 | ||||||||||
Contracts |
57 | 29 | $ | 40.5 | $ | 17.8 | ||||||||||
Nine months ended July 31, |
||||||||||||||||
Revenues |
87 | 52 | $ | 63.3 | $ | 35.4 | ||||||||||
Contracts |
175 | 50 | $ | 136.0 | $ | 28.5 | ||||||||||
Backlog at July 31, |
145 | 33 | $ | 109.4 | $ | 20.3 |
###