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Toll Brothers – TOL – Enjoying the most sustained demand experienced in over five years

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Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced results for earnings, revenues, contracts, and backlog for its third quarter ended July 31, 2012.

TOL – 2012 Third Quarter Highlights:

  • In FY 2012′s third quarter, net income was $61.6 million, or $0.36 per share, compared to $42.1 million, or $0.25 per share in FY 2011′s third quarter.
  • Net income included pre-tax inventory write-downs of $3.1 million and a net tax benefit of $18.7 million, compared to pre-tax inventory write-downs of $16.8 million, a $3.4 million pre-tax loss from early repurchase of debt and a net tax benefit of $38.2 million in FY 2011′s third quarter.
  • Pre-tax income was $43.0 million, compared to $3.9 million in FY 2011′s third quarter.
  • Total revenues of $554.3 million and homebuilding deliveries of 963 units rose 41% in dollars and 39% in units, compared to FY 2011′s third quarter.
  • Net signed contracts of $674.4 million and 1,119 units rose 66% in dollars and 57% in units, compared to FY 2011′s third quarter.
  • Backlog of $1.62 billion and 2,559 units rose 59% in dollars and 44% in units, compared to FY 2011′s third-quarter-end backlog.
  • The average price of homes delivered was $576,000, compared to $557,000 in FY 2012′s second quarter and $569,000 in FY 2011′s third quarter.
  • Gross margin, excluding interest and write-downs, was 24.4%, compared to 23.4% in FY 2011′s third quarter.
  • SG&A as a percentage of revenue improved to 13.5%, compared to 16.4% in FY 2011′s third quarter.
  • The Company ended FY 2012′s third quarter with $877.4 million of cash and marketable securities and $819.2 million available under its bank credit facility. Its net-debt-to-capital ratio(1) was 27.5%.

Douglas C. Yearley, chief executive officer, stated: “We are enjoying the most sustained demand we’ve experienced in over five years. In the past three quarters, the values of our signed contracts were up 45%, 51% and now 66% compared to FY 2011. Three weeks into our fourth quarter, our non-binding reservation deposits (a precursor to future contracts) are up 59% compared to the same period in FY 2011.

“The pace of our contract growth has far exceeded the national housing data as we are gaining market share. We attribute this to the strength of our brand, our excellent land positions, our proven reputation for reliability and quality, our strong balance sheet and our seasoned management team. Additionally, as the only national home building company focused on the luxury market, we are facing limited competition from the capital-constrained small and mid-sized private builders who are our primary competitors.

About Toll Brothers – TOL

Toll Brothers, Inc.  (TOL) is the nation’s leading builder of luxury homes. TOL 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 20 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and Washington.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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