Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Toll Brothers, Inc. | c21871e8vk.htm |
EXHIBIT 99.1
| FOR IMMEDIATE RELEASE | CONTACT: Frederick N. Cooper (215) 938-8312 | |
| August 24, 2011 | fcooper@tollbrothersinc.com | |
| Joseph R. Sicree (215) 938-8045 | ||
| jsicree@tollbrothersinc.com |
TOLL BROTHERS REPORTS FY 2011 3RD QTR AND 9 MONTH RESULTS
Horsham, PA, August 24, 2011 — Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation’s
leading builder of luxury homes, today announced results for earnings, revenues, contracts, and
backlog for its third quarter ended July 31, 2011.
The Company reported FY 2011 third-quarter net income of $42.1 million, or $0.25 per share,
compared to FY 2010’s third-quarter net income of $27.3 million, or $0.16 per share. FY 2011’s
third quarter included a net tax benefit of $38.2 million, due to the reversal of previously
accrued state and federal taxes, compared to a $26.5 million net tax benefit in FY 2010’s third
quarter.
FY 2011’s third-quarter pretax income was $3.9 million, compared to FY 2010’s third-quarter pretax
income of $0.8 million. Excluding write-downs and debt retirement charges of $16.8 million and $3.4
million, respectively, FY 2011’s third-quarter pretax income was $24.1 million. Excluding
write-downs and debt retirement charges of $12.5 million and $0.7 million, respectively, FY 2010’s
third-quarter pretax income was $14.0 million.
FY 2011’s third-quarter revenues and home building deliveries of $394.3 million and 693 units
decreased 13% in dollars and 14% in units, compared to FY 2010’s third-quarter results.
FY 2011’s third-quarter net signed contracts of $406.7 million and 713 units rose 2% in both
dollars and units, compared to FY 2010’s third-quarter net signed contracts. The average price of
third-quarter net signed contracts was $570,000, approximately the same as in FY 2010’s third
quarter. On a per-community basis, FY 2011’s third-quarter net signed contracts of 3.51 units per
community were 5% lower than FY 2010’s third-quarter total, 1% lower than FY 2009’s third-quarter
total, and 30% greater than FY 2008’s third-quarter total; however, they were still well below the
Company’s historical third-quarter average, dating back to 1990, of 5.98 units per community.
The Company’s contract cancellation rate (current-quarter cancellations divided by current-quarter
gross signed contracts) was 7.4% in the third quarter of FY 2011, compared to 6.2% in FY 2010’s
third quarter: These rates are consistent with the Company’s pre-downturn historical averages. As a
percentage of beginning-quarter backlog, the cancellation rate was 3.2%.
*more*
FY 2011’s third-quarter-end backlog of $1.02 billion, or 1,780 units, increased 8% in dollars and
9% in units, compared to FY 2010’s third-quarter-end backlog.
For FY 2011’s nine-month period, the Company reported net income of $24.8 million, or $0.15 per
share, compared to FY 2010’s nine-month period net loss of $53.9 million, or $0.33 per share. FY
2011’s nine-month period included pretax write-downs, joint venture impairments, and charges
related to early retirement of debt totaling $77.9 million, compared to $88.9 million in FY 2010’s
comparable period. FY 2011’s nine-month period included a net tax benefit of $69.4 million,
compared to a $53.9 million net tax benefit in FY 2010’s nine-month period.
FY 2011’s nine-month pretax loss was $44.6 million, compared to FY 2010’s nine-month pretax loss of
$107.7 million. Excluding write-downs, joint venture impairments, and debt retirement charges, FY
2011’s nine-month pretax income was $33.2 million, compared to FY 2010’s nine-month pretax loss,
excluding write-downs and debt retirement charges, of $19.5 million.
For FY 2011’s first nine months, home building revenues of $1.05 billion and 1,854 units decreased
4% in dollars and 5% in units, compared to FY 2010. FY 2011 nine-month net signed contracts of
$1.21 billion and 2,140 units increased 5% in both dollars and units, compared to the same period
in FY 2010.
Toll Brothers ended FY 2011’s third quarter with 207 selling communities, compared to 190 at FY
2010’s third-quarter end. The Company now expects to end FY 2011 with between 210 and 220 selling
communities. The Company ended FY 2011’s third quarter with approximately 36,200 lots owned and
optioned, compared to approximately 35,900 at the previous quarter-end and 35,800 one year ago.
Toll Brothers ended FY 2011’s third quarter with a net-debt-to-capital ratio(1) of
13.9%, compared to 11.5% at FY 2010’s third-quarter end. The Company ended FY 2011’s third quarter
with $1.18 billion of cash and marketable securities, compared to $1.25 billion at FY 2011’s
second-quarter end and $1.64 billion at FY 2010’s third-quarter end. The Company used $48.7 million
of cash in the third quarter to retire $45.1 million of its Senior Notes due November 2012, and
spent approximately $75 million on land purchases. At FY 2011’s third-quarter end, the Company also
had $777.5 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: “It is too soon to assess
the ramifications of the financial volatility of the past few weeks on the housing market. While
late summer is generally not the best time to sell homes, in the short run, the stock market
gyrations, the budget impasse, and the U.S. Government bond rating downgrade are certainly not
helping consumer confidence. However, we believe that historic low interest rates and the growing
imbalance between housing production and demographics-driven demand bode well for the industry
sooner or later: the key question, of course, is when.
*more*
“We are pleased to be making some progress in a tough market. This was our fifth consecutive
quarter of pre-write-down, pre-tax profits. Additionally, Gibraltar Capital and Asset Management
LLC, our subsidiary focused on acquiring and managing portfolios of distressed real estate loans
and properties, contributed $4.0 million of profits.
“This past quarter’s results indicated some continued stabilization in the upscale housing market,
albeit at a level dramatically below historical levels. Our strong financial position and the value
of our brand distinguish us in the luxury market as nervous buyers are exhibiting a flight to
quality and dependability. Our buyers generally have very strong financial profiles, which have
enabled them to secure mortgage financing. Our large presence in the metro-DC-to-Boston corridor
and our high-rise business in the metro New York City region give us a strong position in some of
the more promising U.S. markets.
“We closed on about $75 million of land this quarter, nearly half of which was for a great site at
3rd Avenue and 22nd Street in the Gramercy Park area of Manhattan. We are
seeing some attractive opportunities; however, the flow of deals is not occurring at the pace we
would have expected this long into a down cycle.”
Martin P. Connor, Toll Brothers’ chief financial officer, stated: “Our third quarter gross margin,
before interest and write-downs, as a percent of revenue showed slight improvement compared to the
prior quarter and modest improvement compared to last year’s third quarter. This reflects the
benefits of our centralized purchasing initiatives and reductions in incentives. Absolute dollars
expended on SG&A in the third quarter were lower than in the prior quarter and also lower than in
last year’s third quarter due to continuing benefits of cost reduction initiatives and some
insurance reversals and recoveries.
“Subject to the caveats in our Statement on Forward-Looking Information included in this release,
we offer the following limited guidance:
“We currently estimate that we will deliver between 2,475 and 2,675 homes in FY 2011, which
reflects our projected range of 620 to 820 home deliveries in FY 2011’s fourth quarter at an
average price of between $555,000 and $570,000 per home. We will give preliminary guidance for FY
2012 when we announce fourth quarter results in December 2011.
Robert I. Toll, executive chairman, stated: “Our sales are gaining some traction but consumer
confidence is still weak and the housing sector remains in a fragile state. The nation’s economy
continues to suffer from the lack of jobs in housing construction and the related manufacturing and
service sectors that a healthy new home market would typically generate. Housing construction is a
primary job creator for those Americans suffering among the highest levels of unemployment in the
current recession.
“We are hopeful, based on some recent comments out of Washington, that the Administration and
Congress now recognize that housing must be healed to lift the nation out of this recession. This
sentiment was echoed recently by Warren Buffet. We hope that our leaders will proceed cautiously
with housing
as they review options to address the deficit by ensuring that liquidity remains available to the
sector and that the foundations of our system that support homeownership are not dismantled.”
*more*
The financial highlights for the third-quarter and nine-months ended July 31, 2011 (unaudited):
| • | FY 2011’s third-quarter net income was $42.1 million, or $0.25 per share, compared to FY
2010’s third-quarter net income of $27.3 million, or $0.16 per share. FY 2011’s third-quarter
net income included pretax write-downs of $20.2 million: $16.8 million attributable to
inventory (primarily for land owned for future communities), and a $3.4 million charge
attributable to the purchase of $45.1 million of our Senior Notes. In FY 2010, third-quarter
pretax write-downs and charges for early debt repurchases totaled $13.2 million. |
| • | FY 2011’s third-quarter pretax income was $3.9 million, compared to FY 2010’s third-quarter
pretax income of $0.8 million. |
| • | Excluding write-downs, FY 2011’s third-quarter pretax income was $24.1 million, compared to
FY 2010’s third-quarter pretax income of $14.0 million. |
| • | FY 2011’s nine-month net income was $24.8 million, or $0.15 per share, compared to FY
2010’s nine-month net loss of $53.9 million, or $0.33 per share. |
| • | FY 2011’s nine-month net income included pretax write-downs of $77.9 million: $16.4 million
of the write-downs was attributable to operating communities, $16.0 million related to land
controlled for future development, $2.5 million related to land controlled for future
communities, $39.6 million was attributable to joint ventures, and $3.4 million was for
charges attributable to the early repurchase of $45.1 million of our Senior Notes. In FY 2010,
nine-month pretax write-downs and debt retirement charges totaled $88.9 million. |
| • | FY 2011’s nine-month pretax loss was $44.6 million, compared to FY 2010’s nine-month pretax
loss of $107.7 million. |
| • | Excluding write-downs and debt repurchase charges, FY 2011’s nine-month pretax income was
$33.2 million, compared to a pretax loss of $18.8 million for FY 2010’s nine-month period,
excluding write-downs and debt repurchase charges. |
| • | The Company recorded FY 2011 and FY 2010 third-quarter tax benefits of $38.2 million and
$26.5 million, respectively. For FY 2011’s and FY 2010’s nine-month periods, the Company
recorded tax benefits of $69.4 million and $53.9 million, respectively. |
| • | FY 2011’s third-quarter total revenues of $394.3 million and 693 units decreased 13% in
dollars and 14% in units from FY 2010’s third-quarter total revenues of $454.2 million and 803
units. |
| • | FY 2011’s third-quarter gross margin, excluding interest and write-downs, improved to 23.4%
from 22.1% in FY 2010’s third quarter. |
*more*
| • | Interest included in cost of sales was 5.3% in FY 2011’s third quarter, down from 5.4% in FY
2011’s second quarter and up slightly from 5.1% of revenues in FY 2010’s third quarter. There
was no directly expensed interest in FY 2011’s third quarter. |
| • | FY 2011’s nine-month total revenues of $1.05 billion and 1,854 units declined 4% in dollars
and 5% in units, compared to FY 2010’s nine-month period totals of $1.09 billion and 1,942
units. |
| • | In FY 2011’s third quarter, unconsolidated entities in which the Company had an interest
delivered $67.3 million of homes, compared to $29.5 million in the third quarter of FY 2010.
In FY 2011’s first nine months, unconsolidated entities in which the Company had an interest
delivered $198.6 million of homes, compared to $63.3 million in the nine-month period of FY
2010. The Company recorded its share of the results from these entities’ operations in
“(Loss) Income from Unconsolidated Entities” on the Company’s Statement of Operations. |
| • | The Company signed gross contracts of $439.2 million and 770 units in FY 2011’s third
quarter, an increase of 4% in dollars and 3% in units, compared to $422.5 million and 747
gross contracts signed in FY 2010’s third quarter. The Company signed 2,266 gross contracts
totaling $1.29 billion in FY 2011’s first nine months, an increase of 4% and 5%, respectively,
compared to the 2,177 gross contracts totaling $1.23 billion signed in FY 2010’s nine-month
period. |
| • | The average price per unit of gross contracts signed in FY 2011’s third quarter was
approximately $570,000, compared to approximately $570,000 in FY 2011’s second quarter and
$566,000 in FY 2010’s third quarter. The average price per unit of net contracts signed in FY
2011’s third quarter was approximately $570,000, compared to approximately $570,000 in FY
2011’s second quarter and $571,000 in FY 2010’s third quarter. |
| • | The Company’s FY 2011 third-quarter net contracts of $406.7 million and 713 units rose by
2% in both dollars and units, compared to FY 2010’s third-quarter net contracts of $400.1
million and 701 units. The Company’s FY 2011 nine-month net contracts of $1.21 billion and
2,140 units increased by 5% in both dollars and units, compared to net contracts of $1.16
billion and 2,047 units in FY 2010’s nine-month period. |
| • | On a per-community basis, FY 2011’s third-quarter net signed contracts of 3.51 units per
community were 5% lower than FY 2010’s third-quarter total of 3.69. They were approximately 1%
lower than FY 2009’s third-quarter total of 3.56 units and exceeded FY 2008’s third-quarter
total of 2.71 units by 30%; however, they were still well below the Company’s historical
third-quarter average, dating back to 1990, of 5.98 units per community. |
| • | In FY 2011’s third quarter, unconsolidated entities in which the Company had an interest
signed agreements for $33.9 million of homes, compared to $40.5 million in the third quarter
of FY 2010. In FY 2011’s first nine months, unconsolidated entities in which the Company had
an interest signed agreements for $133.6 million of homes, compared to $136.0 million in the
nine-month period of FY 2010. |
*more*
| • | The average price per unit of cancellations in FY 2011’s third quarter was approximately
$570,000, compared to approximately $562,000 in FY 2011’s second quarter and $488,000 in FY
2010’s third quarter. |
| • | In FY 2011, third-quarter cancellations totaled 57. This compared to 36 in FY 2011’s second
quarter, 33 in FY 2011’s first quarter, and 54, 46, 46, and 38, respectively, in FY 2010’s
fourth, third, second and first quarters. |
| • | FY 2011’s third-quarter cancellation rate (current-quarter cancellations divided by
current-quarter signed contracts) was 7.4%. This compared to 3.9% in FY 2011’s second
quarter, 5.7% in FY 2011’s first quarter, and 8.8%, 6.2%, 5.3%, and 6.7%, respectively, in FY
2010’s fourth, third, second and first quarters. As a percentage of beginning-quarter backlog,
FY 2011’s third-quarter cancellation rate was 3.2%. This compared to 2.4% in FY 2011’s second
quarter, 2.3% in FY 2011’s first quarter, and 3.3%, 2.6%, 3.1% and 2.5%, respectively, in FY
2010’s fourth, third, second and first quarters. |
| • | In FY 2011, third-quarter-end backlog of $1.02 billion and 1,780 units increased 8% in
dollars and 9% in units from FY 2010’s third-quarter-end backlog of $939.4 million and 1,636
units. |
| • | At July 31, 2011, unconsolidated entities in which the Company had an interest had a
backlog of $26.1 million, compared to $109.4 million at July 31, 2010. |
| • | The Company ended its FY 2011 third quarter with $1.18 billion in cash and marketable
securities, compared to $1.25 billion at 2011’s second-quarter end and $1.64 billion at FY
2010’s third-quarter end. During FY 2011’s third quarter, the Company used approximately $75
million of cash to purchase land. At FY 2011’s third-quarter end, it had $777.5 million
available under its $885 million 12-bank credit facility, which matures in October 2014. |
| • | The Company’s Stockholders’ Equity at FY 2011’s third-quarter end was $2.61 billion,
compared to $2.55 billion at FY 2011’s second-quarter end. The Company’s book value per share
at FY 2011’s third-quarter end was $15.52. |
| • | The Company ended FY 2011’s third quarter with a net-debt-to-capital ratio(1) of
13.9%, compared to 13.6% at FY 2011’s second-quarter end and 11.5% at FY 2010’s third-quarter
end. |
| • | The Company ended FY 2011’s third quarter with approximately 36,200 lots owned and
optioned, compared to 35,900 one quarter earlier, 35,800 one year earlier, and 91,200 at its
peak at FY 2006’s second-quarter end. At 2011’s third-quarter end, approximately 30,500 of
these lots were owned, of which approximately 11,300 lots, including those in backlog, were
substantially improved. |
*more*
| • | The Company ended FY 2011’s third quarter with 207 selling communities, compared to 203 at FY
2011’s second-quarter end and 190 at FY 2010’s third-quarter end. The Company expects to end FY
2011 with between 210 to 220 selling communities, compared to its peak of 325 communities at FY
2007’s second-quarter end. |
| • | Based on FY 2011’s third-quarter-end backlog and the pace of activity at its communities,
the Company currently estimates that it will deliver approximately 620 to 820 homes in its
fourth quarter, bringing total deliveries to between 2,475 and 2,675 in FY 2011. It believes
the average delivered price for FY 2011’s fourth quarter will be between $555,000 and $570,000
per home. |
| (1) | Net debt-to-capital is calculated as total debt minus mortgage warehouse loans minus
cash and marketable securities, divided by total debt minus mortgage warehouse loans minus
cash and marketable 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 CEO Douglas C. Yearley, Jr. at 2:00 p.m. (EDT)
today, August 24, 2011, to discuss these results and its outlook for the remainder of FY 2011. To
access the call, enter the Toll Brothers website 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 online replay that will follow and continue through October 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 nation’s 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.
*more*
Toll Brothers is honored to have won the three most coveted awards in the homebuilding industry:
America’s 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, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
| July 31, | October 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 890,067 | $ | 1,039,060 | ||||
Marketable securities |
294,286 | 197,867 | ||||||
Restricted cash |
24,225 | 60,906 | ||||||
Inventory |
3,423,617 | 3,241,725 | ||||||
Property, construction and office
equipment, net |
98,902 | 79,916 | ||||||
Receivables, prepaid expenses and other assets |
96,972 | 97,039 | ||||||
Mortgage loans receivable |
45,320 | 93,644 | ||||||
Customer deposits held in escrow |
16,304 | 21,366 | ||||||
Investments in and advances to unconsolidated
entities and non-performing loan portfolio |
186,917 | 198,442 | ||||||
Income tax refund recoverable |
141,590 | |||||||
Total assets |
$ | 5,076,610 | $ | 5,171,555 | ||||
LIABILITIES AND EQUITY |
||||||||
Liabilities: |
||||||||
Loans payable |
$ | 104,512 | $ | 94,491 | ||||
Senior notes |
1,500,494 | 1,544,110 | ||||||
Mortgage company warehouse loan |
39,905 | 72,367 | ||||||
Customer deposits |
90,184 | 77,156 | ||||||
Accounts payable |
93,622 | 91,738 | ||||||
Accrued expenses |
524,446 | 570,321 | ||||||
Income taxes payable |
105,831 | 162,359 | ||||||
Total liabilities |
2,458,994 | 2,612,542 | ||||||
Equity: |
||||||||
Stockholders’ Equity |
||||||||
Preferred stock |
— | — | ||||||
Common stock |
1,686 | 1,664 | ||||||
Additional paid-in capital |
390,778 | 360,006 | ||||||
Retained earnings |
2,219,208 | 2,194,456 | ||||||
Treasury stock, at cost |
(27 | ) | (96 | ) | ||||
Accumulated other
comprehensive loss |
(245 | ) | (577 | ) | ||||
Total stockholders’ equity |
2,611,400 | 2,555,453 | ||||||
Noncontrolling interest |
6,216 | 3,560 | ||||||
Total equity |
2,617,616 | 2,559,013 | ||||||
| $ | 5,076,610 | $ | 5,171,555 | |||||
*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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues |
$ | 1,048,096 | $ | 1,092,171 | $ | 394,305 | $ | 454,202 | ||||||||
Cost of revenues |
898,266 | 1,012,575 | 339,947 | 389,505 | ||||||||||||
Selling, general and
administrative expenses |
192,906 | 193,987 | 64,605 | 67,165 | ||||||||||||
Interest expense |
1,504 | 18,588 | 5,124 | |||||||||||||
| 1,092,676 | 1,225,150 | 404,552 | 461,794 | |||||||||||||
Loss from operations |
(44,580 | ) | (132,979 | ) | (10,247 | ) | (7,592 | ) | ||||||||
Other: |
||||||||||||||||
(Loss) income
from
unconsolidated
entities and
non-performing
loan portfolio |
(9,817 | ) | 4,817 | 12,055 | 3,171 | |||||||||||
Interest and other |
13,168 | 21,134 | 5,494 | 5,902 | ||||||||||||
Expenses related to
early retirement of
debt |
(3,414 | ) | (692 | ) | (3,414 | ) | (658 | ) | ||||||||
(Loss) income
before income
taxes |
(44,643 | ) | $ | (107,720 | ) | 3,888 | 823 | |||||||||
Income tax benefit |
(69,395 | ) | (53,867 | ) | (38,220 | ) | (26,479 | ) | ||||||||
Net income (loss) |
$ | 24,752 | $ | (53,853 | ) | $ | 42,108 | $ | 27,302 | |||||||
Income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.15 | $ | (0.33 | ) | $ | 0.25 | $ | 0.16 | |||||||
Diluted |
$ | 0.15 | $ | (0.33 | ) | $ | 0.25 | $ | 0.16 | |||||||
Weighted-average number
of shares: |
||||||||||||||||
Basic |
167,221 | 165,465 | 168,075 | 165,752 | ||||||||||||
Diluted |
168,666 | 165,465 | 169,338 | 167,658 | ||||||||||||
*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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Impairment charges recognized: |
||||||||||||||||
Cost of revenues |
$ | 34,861 | $ | 88,220 | $ | 16,813 | $ | 12,508 | ||||||||
Loss from unconsolidated
entities and non-performing
loan portfolio |
39,600 | |||||||||||||||
| $ | 74,461 | $ | 88,220 | $ | 16,813 | $ | 12,508 | |||||||||
Depreciation and amortization |
$ | 10,660 | $ | 13,569 | $ | 3,257 | $ | 4,512 | ||||||||
Interest incurred |
$ | 86,820 | $ | 87,740 | $ | 28,386 | $ | 28,879 | ||||||||
Interest expense: |
||||||||||||||||
Charged to cost of revenues |
$ | 56,327 | $ | 55,411 | $ | 20,946 | $ | 23,033 | ||||||||
Charged to selling, general
and administrative expense |
1,504 | 18,588 | 5,124 | |||||||||||||
Charged to interest and other |
861 | 1,786 | 543 | 977 | ||||||||||||
| $ | 58,692 | $ | 75,785 | $ | 21,489 | $ | 29,134 | |||||||||
Home sites controlled: |
||||||||||||||||
Owned |
30,499 | 29,243 | ||||||||||||||
Optioned |
5,686 | 6,582 | ||||||||||||||
| 36,185 | 35,825 | |||||||||||||||
*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 |
Note: In fiscal 2010, the Company discontinued its operations in Georgia and West Virginia.
| Three Months Ended | Three Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| Units | $ (Millions) | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
197 | 248 | $ | 106.4 | $ | 131.2 | ||||||||||
Mid-Atlantic |
262 | 283 | 147.7 | 156.5 | ||||||||||||
South |
124 | 126 | 69.0 | 70.0 | ||||||||||||
West |
110 | 146 | 71.2 | 96.5 | ||||||||||||
Total consolidated |
693 | 803 | $ | 394.3 | $ | 454.2 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
215 | 220 | $ | 115.1 | $ | 108.5 | ||||||||||
Mid-Atlantic |
203 | 235 | 116.0 | 132.9 | ||||||||||||
South |
190 | 109 | 109.0 | 62.8 | ||||||||||||
West |
105 | 137 | 66.6 | 95.9 | ||||||||||||
Total consolidated |
713 | 701 | $ | 406.7 | $ | 400.1 | ||||||||||
| At July 31, | At July 31, | |||||||||||||||
| Units | $ (Millions) | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
BACKLOG |
||||||||||||||||
North |
579 | 537 | $ | 300.0 | $ | 264.5 | ||||||||||
Mid-Atlantic |
524 | 508 | 312.6 | 306.0 | ||||||||||||
South |
468 | 334 | 269.0 | 177.5 | ||||||||||||
West |
209 | 257 | 137.3 | 191.4 | ||||||||||||
Total consolidated |
1,780 | 1,636 | $ | 1,018.9 | $ | 939.4 | ||||||||||
*more*
| Nine Months Ended | Nine Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| Units | $ (Millions) | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
HOME BUILDING REVENUES |
||||||||||||||||
North |
513 | 575 | $ | 273.6 | $ | 305.7 | ||||||||||
Mid-Atlantic |
625 | 659 | 351.1 | 360.5 | ||||||||||||
South |
363 | 353 | 197.3 | 189.0 | ||||||||||||
West |
353 | 355 | 226.1 | 237.0 | ||||||||||||
Total consolidated |
1,854 | 1,942 | $ | 1,048.1 | $ | 1,092.2 | ||||||||||
CONTRACTS |
||||||||||||||||
North |
571 | 562 | $ | 314.2 | $ | 286.6 | ||||||||||
Mid-Atlantic |
674 | 674 | 379.3 | 372.8 | ||||||||||||
South |
535 | 405 | 306.6 | 218.5 | ||||||||||||
West |
360 | 406 | 214.7 | 278.8 | ||||||||||||
Total consolidated |
2,140 | 2,047 | $ | 1,214.8 | $ | 1,156.7 | ||||||||||
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, 2011 and 2010 is as follows:
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Units | Units | $(Mill) | $(Mill) | |||||||||||||
Three months ended July 31, |
||||||||||||||||
Revenues |
71 | 40 | $ | 67.3 | $ | 29.5 | ||||||||||
Contracts |
40 | 57 | $ | 33.9 | $ | 40.5 | ||||||||||
Nine months ended July 31, |
||||||||||||||||
Revenues |
242 | 87 | $ | 198.6 | $ | 63.3 | ||||||||||
Contracts |
151 | 175 | $ | 133.6 | $ | 136.0 | ||||||||||
Backlog at July 31, |
35 | 145 | $ | 26.1 | $ | 109.4 | ||||||||||
###