May had failed to win a parliamentary majority on Britain's withdrawal from the European Union.Europe Politicsread more
Investors are rushing into the relative safe haven of the bond market, causing the yield on the U.S. 10-year Treasury to plummet.Real Estateread more
China denounced U.S. Secretary of State Mike Pompeo for fabricating rumors after he said the chief executive of China's Huawei was lying about his company's ties to the...World Politicsread more
U.S. President Donald Trump on Thursday predicted a swift end to the ongoing trade war with China, although no high-level talks have been scheduled between the two countries.World Economyread more
President Donald Trump has threatened tariffs on another $300 billion worth of Chinese goods — but Chinese PC-maker Lenovo is prepared to shift its production if that happens,...Technologyread more
Indian Prime Minister Narendra Modi won a landslide re-election victory. That could see India taking a more assertive security stance.Asia Politicsread more
The Wall Street Journal and The New York Times, citing people familiar with the deal, reported that $30 million would go to plaintiffs and $14 million would be used to pay...Entertainmentread more
Danish shipping group A.P. Moller-Maersk on Friday posted first-quarter profit close to expectations and warned that trade tensions and slowing economic growth constitute...Earningsread more
Chinese technology giant Huawei has enough inventory to sustain its smartphone and 5G networking equipment business for most of the rest of the year, according to brokerage...Technologyread more
President Donald Trump on Thursday directed the U.S. intelligence community to "quickly and fully cooperate" with Attorney General William Barr's investigation into the...Politicsread more
Despite a decline in global commercial real estate markets, Asia-Pacific continues to enjoy a record-breaking growth — thanks to China, according to the Global Capital Flows...Real Estateread more
HORSHAM, Pa., Feb. 24, 2015 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation's leading builder of luxury homes, today announced results for its first quarter ended January 31, 2015.
FY 2015 First Quarter Financial Highlights:
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "Momentum continues to build as we begin the spring selling season. In our first quarter, we achieved 24% growth in the dollar value of signed contracts. Since the start of the second quarter, the number of signed contracts is up 13%.
"We continue to benefit from our ongoing geographic diversification strategy. While we remain the dominant luxury builder in the suburban Washington, DC to Boston corridor, our growth in the West and South and in urban centers has expanded our brand into more locations and product lines.
"Our California presence has increased significantly with the acquisition of Shapell Homes and several other well-timed Coastal California land purchases. This quarter, California produced 29% of the value of our signed contracts at an average price of approximately $1.1 million. Texas contributed 11% of the value of contracts with the Dallas division the main contributor. Our City Living division contributed 5% of the value of contracts at an average unit price of $2.3 million.
"We are optimistic about earnings growth in FY 2016. This guidance is based on the high quality of our land positions, continued strong sales, particularly in California, and projected delivery growth from City Living buildings in New York City in FY 2016."
Martin P. Connor, Toll Brothers' chief financial officer, stated: "Our gross margin, SG&A leverage and operating margin all improved significantly this quarter compared to one year ago. Our first quarter gross margin was particularly strong, due to a large number of high-priced deliveries from our Hoboken and New York City Living divisions.
"Subject to our normal caveats regarding forward-looking statements, we offer the following guidance: We project full FY 2015 (pre-interest and pre-impairment) margins to be approximately 26%, consistent with our previous guidance. In our second quarter, we project delivering approximately 32% of units from our first-quarter-end backlog at an average price of $720,000 to $740,000. With three months of sales behind us, we are updating our delivery guidance for the full FY 2015 to a range of 5,200 to 6,000 homes at an average price of $725,000 to $760,000, compared to our previous guidance of a range of 5,000 to 6,000 homes at an average price of $710,000 to $760,000. We still expect to end FY 2015 with between 270 and 310 communities as we position the Company for future growth."
Robert I. Toll, executive chairman, stated: "We are encouraged by the latest data from the Labor Department indicating strong job and wage growth momentum and also the Census Bureau's recent monthly reports showing solid growth in household formations, all of which are good for housing demand.
"More jobs and better jobs should boost household formations and provide a basis for stronger housing demand. With the latest release from the National Association of Realtors citing home price appreciation, our buyers, who often are selling a home to move up, will have more money to invest in their new home and more potential customers to buy their existing home. Another positive data point comes from the Conference Board, which said consumer confidence in January reached its highest level since August 2007. We believe these positive macroeconomic trends, coupled with recent Federal initiatives to increase mortgage availability, should support housing's recovery."
Doug Yearley stated: "Last week, Toll Brothers was recognized as the Most Admired Home Builder in Fortune magazine's annual survey of the World's Most Admired Companies. This recognition speaks not only to the quality of our homes and communities, but also to the core of our business culture, our financial strength, our personnel, and our corporate management strategy. We salute all our Toll Brothers colleagues for their tremendous commitment to our customers and the hard work that led to this honor."
Bob Toll continued: "We were also recently named America's Most Trusted Home Builder™ from among 133 U.S. home builders, based on a study of 43,200 new home shoppers in the nation's top 27 housing markets conducted by Lifestory Research. Since Toll Brothers began back in 1967, we have sought to build a brand whose foundations are quality and trust. I believe we have succeeded. Congratulations to all our Toll Brothers associates on these significant awards."
Toll Brothers' financial highlights for the FY 2015 first quarter ended January 31, 2015 (unaudited):
(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 11:00 a.m. (EST) today, February 24, 2015, to discuss these results and its outlook for FY 2015. To access the call, enter the Toll Brothers website, 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 online replay which will follow. MP3 format replays will be available after the conference call via the "Conference Calls" section of the Investor Relations portion of the Toll Brothers website.
Toll Brothers, Inc., A FORTUNE 1000 Company, 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, Texas, Virginia, and Washington, as well as in the District of Columbia.
Toll Brothers builds an array of luxury residential single-family detached, attached home, master planned resort-style golf, 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, house component assembly, and manufacturing operations. The Company purchases distressed loan and real estate asset portfolios through its wholly owned subsidiary, Gibraltar Capital and Asset Management. The Company acquires and develops commercial and apartment properties through Toll Commercial and Toll Apartment Living, and the affiliated Toll Brothers Realty Trust, and develops urban low-, mid-, and high-rise for-sale condominiums through Toll Brothers City Living.
Toll Brothers was recently named as The Most Admired Home Building Company in Fortune magazine's survey of the World's Most Admired Companies for 2015. Toll Brothers was also named 2015 America's Most Trusted Home Builder™ by Lifestory Research, an award which was based on a study of 43,200 new home shoppers in the nation's top 27 housing markets. Toll Brothers was named 2014 Builder of the Year by Builder magazine, and is honored to have been awarded Builder of the Year in 2012 by Professional Builder magazine, making it the first two-time recipient. 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.
Forward Looking Statement
Information presented herein for the first quarter ended January 31, 2015 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures.
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; anticipated financial performance, resources and condition; selling communities; home deliveries; average home prices; consumer demand and confidence; contract pricing; business and investment opportunities; market and industry trends; the anticipated benefits to be realized from the consummation of the Shapell acquisition; and the related post-closing asset sales.
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; conditions in our newly entered markets and newly acquired operations; 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, and 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; weather conditions; the anticipated benefits to be realized from the consummation of the Shapell acquisition; and the related post-closing asset sales. For a more detailed discussion of these factors, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
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.
|TOLL BROTHERS, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(Amounts in thousands)|
|January 31,||October 31,|
|Cash and cash equivalents||$ 500,900||$ 586,315|
|Property, construction and office equipment, net||142,096||143,010|
|Receivables, prepaid expenses and other assets||250,349||251,572|
|Mortgage loans held for sale||55,945||101,944|
|Customer deposits held in escrow||30,679||42,073|
|Investments in and advances to unconsolidated entities||463,578||447,078|
|Investments in distressed loans and foreclosed real estate||70,935||73,800|
|Deferred tax assets, net of valuation allowances||252,172||250,421|
|$ 8,421,619||$ 8,416,902|
|LIABILITIES AND EQUITY|
|Loans payable||$ 665,652||$ 654,261|
|Mortgage company warehouse loan||46,559||90,281|
|Income taxes payable||65,768||125,996|
|Additional paid-in capital||718,195||712,162|
|Treasury stock, at cost||(74,058)||(88,762)|
|Accumulated other comprehensive loss||(3,021)||(2,838)|
|Total stockholders' equity||3,956,255||3,854,376|
|$ 8,421,619||$ 8,416,902|
|TOLL BROTHERS, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(Amounts in thousands, except per share data)|
| Three Months Ended |
|Revenues||$ 853,452||$ 643,681|
|Cost of revenues||650,032||514,032|
|Selling, general and administrative expenses||106,314||97,870|
|Income from operations||97,106||31,779|
|Income from unconsolidated entities||4,901||22,915|
|Other income - net||22,016||16,541|
|Income before income taxes||124,023||71,235|
|Income tax provision||42,698||25,655|
|Net income||$ 81,325||$ 45,580|
|Income per share:|
|Basic||$ 0.46||$ 0.26|
|Diluted||$ 0.44||$ 0.25|
|Weighted-average number of shares:|
|TOLL BROTHERS, INC. AND SUBSIDIARIES|
|(Amounts in thousands)|
|Three Months Ended|
|Impairment charges recognized:|
|Cost of sales - land controlled for future communities||$ 244||$ 682|
|Cost of sales - operating communities||900||1,300|
|$ 1,144||$ 1,982|
|Depreciation and amortization||$ 5,809||$ 5,289|
|Interest incurred||$ 40,504||$ 39,944|
|Charged to cost of sales||$ 28,377||$ 25,440|
|Charged to other income - net||1,328||317|
|$ 29,705||$ 25,757|
|Home sites controlled:|
Toll Brothers operates in two segments: Traditional Home Building and Urban Infill ( "City Living"). Within Traditional Home Building, Toll 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 and Texas|
|West:||Arizona, California, Colorado, Nevada, and Washington|
|Three Months Ended January 31,|
|Units||$ (Millions)||Average Price Per Unit $|
|HOME BUILDING REVENUES|
|North||210||209||$ 132.4||$ 127.6||$ 630,600||$ 610,700|
|Traditional Home Building||1,043||911||745.7||633.5||714,900||695,400|
|Total consolidated||1,091||928||$ 853.5||$ 643.7||$ 782,300||$ 693,600|
|North||177||181||$ 110.6||$ 118.2||$ 625,100||$ 652,900|
|Traditional Home Building||1,044||865||829.5||638.2||794,600||737,800|
|Total consolidated||1,063||916||$ 873.2||$ 701.7||$ 821,500||$ 766,100|
|North||845||920||$ 542.8||$ 553.1||$ 642,400||$ 601,100|
|Traditional Home Building||3,536||3,435||2,588.4||2,406.8||732,000||700,700|
|Total consolidated||3,651||3,667||$ 2,739.5||$ 2,687.5||$ 750,300||$ 732,900|
Information related to revenues and contracts of entities in which we have an interest for the three-month periods ended January 31, 2015 and 2014, and for backlog at January 31, 2015 and 2014 is as follows:
|Units||$ (Millions)||Average Price Per Unit $|
|Three months ended January 31,|
|Revenues||27||15||$ 19.3||$ 11.6||$ 714,600||$ 772,100|
|Contracts||20||11||$ 30.7||$ 7.8||$ 1,533,700||$ 705,600|
|Backlog at January 31,||128||58||$ 295.8||$ 42.4||$ 2,311,200||$ 731,000|
CONTACT: Frederick N. Cooper (215) 938-8312 email@example.com