Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation's
leading builder of luxury homes, today announced results for its
second quarter and six months ended April 30, 2016.
FY 2016 Second Quarter Financial Highlights:
- FY 2016's second-quarter net income was $89.1 million, or $0.51
per share diluted, compared to net income of $67.9 million, or
$0.37 per share diluted, in FY 2015's second quarter.
- Pre-tax income was $140.4 million, compared to pre-tax income
of $86.5 million in FY 2015's second quarter. Second quarter FY
2016 included write-downs of $6.4 million, compared to $12.2
million in FY 2015's second quarter.
- Revenues of $1.12 billion and home building deliveries of 1,304
units increased 31% in dollars and 9% in units, compared to FY
2015's second quarter. The average price of homes delivered was
$855,500, compared to $713,500 in FY 2015's second quarter.
- Net signed contracts of $1.65 billion and 1,993 units rose 3%
in dollars and 3% in units, compared to FY 2015's second quarter.
The average price of net signed contracts was $825,500, compared to
$826,300 in FY 2015's second quarter.
- Backlog of $4.19 billion and 4,940 units rose 20% in dollars
and 13% in units, compared to FY 2015's second-quarter-end backlog.
At second-quarter end, the average price of homes in backlog was
$848,600, compared to $793,800 at FY 2015's second-quarter
end.
- Gross margin, excluding interest and write-downs, was 25.7%,
compared to 25.3% in FY 2015's second quarter.
- SG&A as a percentage of revenue was 11.5%, compared to
12.6% in FY 2015's second quarter.
- Income from operations was 10.5% of revenue, compared to 7.8%
of revenue in FY 2015's second quarter.
- Other income and Income from unconsolidated entities totaled
$23.8 million, compared to $20.1 million in FY 2015's second
quarter.
- The Company ended its second quarter with 299 selling
communities, compared to 291 at FY 2016's first-quarter end, and
269 at FY 2015's second-quarter end.
- At FY 2016's second-quarter end, the Company had approximately
45,400 lots owned and optioned, compared to approximately 43,800
one quarter earlier and 45,000 one year ago.
- The Company ended its FY 2016 second quarter with $423.2
million in cash and marketable securities, compared to $336.2
million at 2016's first-quarter end and $542.2 million at FY 2015's
second-quarter end.
- At FY 2016's second-quarter end, the Company had $840.2 million
available under its $1.035 billion credit facility. On May 19,
2016, the Company replaced this facility with a new $1.215 billion
credit facility that matures in May 2021.
- During the second quarter of FY 2016, the Company repurchased
approximately 2.9 million shares of its common stock at an average
price of $27.27 per share for a total purchase price of
approximately $80.1 million. Additionally, in its third quarter
to-date, the Company has repurchased approximately 1.8 million
shares at an average price of $26.50 for a total purchase price of
approximately $47.3 million. Cumulatively, since the start of its
FY 2015 fourth quarter, the Company has purchased approximately
10.9 million shares at an average price of $29.95 per share for a
total purchase price of approximately $327.7 million.
- Effective May 23, 2016, the Board of Directors authorized the
repurchase of 20 million shares of Toll Brothers common stock and
terminated the prior share repurchase program.
- In updating its guidance, the Company now expects to deliver
between 5,800 and 6,300 homes in FY 2016 at an average price range
of $820,000 to $850,000, compared to 5,525 deliveries in FY 2015 at
an average price of $755,000. This translates to projected revenues
of between $4.76 billion and $5.36 billion in FY 2016, compared to
$4.17 billion in FY 2015.
- The Company continues to project a full FY 2016 gross margin,
excluding interest and write-downs, of between 25.8% and 26.2%.
Interest in cost of sales is projected to be approximately 3.2% for
FY 2016, compared to 3.4% in FY 2015.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer,
stated: "Our revenues this quarter were up 31%, compared to last
year while pre-tax income rose 62% and net income rose 31%.
Improvements in gross margin, SG&A leverage and pre-tax margin
contributed to a significant earnings jump this quarter.
"Our contracts this quarter rose 3% in both dollars and units
compared to one year ago. This modest growth was achieved despite a
decline of 93 units in California contracts compared to one year
ago. We believe the California market is still strong. Both
Southern and Northern California were among our top 5 regions in
contracts per community this quarter. Our drop in California
contracts reflects a temporary lack of inventory for sale;
strategic price increases we have implemented to meter out sales in
communities with large backlogs; and the lingering impact on our
Porter Ranch community of a leak from a nearby natural gas storage
facility, which appears to be heading toward a positive
resolution.
"We saw strength across much of the rest of the West including
Denver, Seattle, Reno and Las Vegas. Back East, New Jersey,
Northern Virginia, Maryland and Pennsylvania also enjoyed solid
growth. And contracts in our wholly owned New York City Living
communities were up 26% in dollars and 18% in units this quarter
compared to one year ago.
"Through the first three weeks of our third quarter, our
contracts, on a gross basis, were basically flat compared to one
year ago, while our non-binding reservation deposits were up about
25%.
"Toll Apartment Living continues to exceed expectations. We have
approximately 7,200 units completed or in development, nearly all
of which are in the metro Boston to Washington, D.C. corridor. Our
stabilized properties currently average 96% occupancy. We intend to
expand this business nationally in both urban and suburban
markets.
"Toll Apartment Living is one of a number of businesses that
augment our home building operations. These also include our
City Living and Gibraltar Capital joint ventures, land sales to
other builders in several master planned communities, Westminster
Title, Westminster Security, Toll Golf Management, and several
other businesses.
"Other income and Income from unconsolidated entities now
represent approximately 15% of our annual pre-tax bottom line. With
this contribution, our backlog up 20% at the end of the second
quarter, more inventory coming on line in California, and a
generally positive climate for housing in most of our markets, we
are optimistic about our future."
Martin P. Connor, Toll Brothers' chief financial officer,
stated: "We have successfully brought a number of initiatives to
fruition recently. In April, we announced that our Gibraltar
Capital and Asset Management subsidiary had entered into a joint
venture with a large institutional investor to provide builders and
developers with land banking and joint venture capital. The
venture, which will be managed by Gibraltar, has a total of $400
million of funding commitments: 75% from the institutional investor
and 25% from Toll Brothers. Last week we completed a new
$1.215 billion 18-bank credit facility that matures in May 2021,
which represents an extension and expansion of our previous
facility.
"Since the start of FY 2015's fourth quarter, we have purchased
over $327 million, or 10.9 million shares, of our stock. And
effective yesterday, our Board of Directors reset the authorization
to repurchase up to 20 million shares.
"Subject to the caveats in our Statement on Forward-Looking
Information included in this release, we offer the following
limited guidance. We estimate unit backlog conversion for the
third quarter at 30%. We are narrowing our previous full fiscal
year guidance and now expect to deliver between 5,800 and 6,300
homes in FY 2016. We now believe the average price of
deliveries for the full FY 2016 will be between $820,000 and
$850,000 per home. We reiterate our expected gross margin
(pre-interest and pre-impairment) for the full FY 2016 to be
approximately 25.8% to 26.2%. We are updating our SG&A
guidance to approximately 10.4% of revenues and our interest in
cost of sales guidance to approximately 3.2% of revenues."
Robert I. Toll, executive chairman, stated: "We continue to
believe the drivers are in place to sustain the current housing
market's slow but steady growth. Interest rates remain low,
the job picture continues to improve, home equity values are
rising, supply remains constrained and the industry is still not
building enough homes to meet the demand that current demographics
imply are needed. Last week The Wall Street Journal cited a
U.S. Census report that indicated suburban populations are on the
rise, which is supportive of the new home market. Another
U.S. Census report last Tuesday noted that single family housing
permits had risen by 8% in April from one year ago. As millennials
mature, studies indicate that their appetite for home ownership is
consistent with past generations, which is encouraging for our
industry."
The financial highlights for the second quarter and six months
ended April 30, 2016 (unaudited):
- FY 2016's second-quarter net income was $89.1 million, or $0.51
per share diluted, compared to FY 2015's second-quarter net income
of $67.9 million, or $0.37 per share diluted.
- FY 2016's second-quarter pre-tax income was $140.4 million,
compared to FY 2015's second-quarter pre-tax income of $86.5
million. FY 2016's second-quarter results included pre-tax
inventory write-downs totaling $6.4 million ($6.1 million of which
was attributable to operating communities and $0.3 million of which
was attributable to future communities). FY 2015's second-quarter
results included pre-tax inventory write-downs of $12.2 million
($11.1 million of which was attributable to one operating community
and $1.1 million, of which was attributable to future
communities).
- FY 2016's six-month net income was $162.2 million, or $0.91 per
share diluted, compared to FY 2015's six-month net income of $149.3
million, or $0.81 per share diluted.
- FY 2016's six-month pre-tax income was $257.2 million, compared
to FY 2015's six-month pre-tax income of $210.6 million.
- FY 2016's six-month pre-tax income results included pre-tax
inventory write-downs totaling $7.6 million ($6.7 million
attributable to operating communities and $0.9 million attributable
to future communities). FY 2015's six-month results included
pre-tax inventory write-downs of $13.3 million ($12.0 million
attributable to operating communities and $1.3 million attributable
to future communities).
- FY 2016's second-quarter total revenues of $1.12 billion and
1,304 units increased 31% in dollars and 9% in units, compared to
FY 2015's second-quarter total revenues of $852.6 million and 1,195
units.
- FY 2016's six-month total revenues of $2.04 billion and 2,367
units rose 20% in dollars and 4% in units, compared to FY 2015's
same period totals of $1.71 billion and 2,286 units.
- The Company's FY 2016 second-quarter net signed contracts of
$1.65 billion and 1,993 units rose by 3% in dollars and 3% in
units, compared to FY 2015's second-quarter net contracts of $1.60
billion and 1,931 units.
- On a per-community basis, FY 2016's second-quarter net signed
contracts were 6.80 units, compared to second-quarter totals of
7.43 units in FY 2015, 7.14 in FY 2014 and 7.79 in FY
2013.
- The Company's FY 2016 six-month net signed contracts of $2.73
billion and 3,243 units increased 11% in dollars and 8% in units,
compared to net contracts of $2.47 billion and 2,994 units in FY
2015's six-month period.
- In FY 2016, second-quarter-end backlog of $4.19 billion and
4,940 units increased 20% in dollars and 13% in units, compared to
FY 2015's second-quarter-end backlog of $3.48 billion and 4,387
units.
- Excluding write-downs and interest, FY 2016's second-quarter
gross margin was 25.7%, compared to 25.3% in FY 2015's second
quarter. FY 2016's second-quarter gross margin, including
write-downs and interest, was 22.0% versus 20.4% in FY 2015's
second quarter.
- Interest included in cost of sales was 3.2% of revenues in FY
2016's second quarter, compared to 3.5% of revenues in FY 2015's
second quarter.
- SG&A as a percentage of revenue was 11.5% in FY 2016's
second quarter, compared to 12.6% in FY 2015's second quarter.
- Income from operations of $116.6 million represented 10.5% of
revenues in FY 2016's second quarter, compared to $66.4 million and
7.8% of revenues in FY 2015's second quarter.
- Income from operations of $211.1 million represented 10.3% of
revenues in FY 2016's six-month period, compared to $163.5 million
and 9.6% of revenues in FY 2015's six-month period.
- Other income and Income from unconsolidated entities in FY
2016's second quarter totaled $23.8 million, compared to $20.1
million in FY 2015's same quarter.
- Other income and Income from unconsolidated entities in FY
2016's six-month period totaled $46.1 million, compared to $47.1
million in FY 2015's same period.
- FY 2016's second-quarter cancellation rate (current-quarter
cancellations divided by current-quarter signed contracts) was
5.0%, compared to 3.1% in FY 2015's second quarter. As a percentage
of beginning-quarter backlog, FY 2016's second-quarter cancellation
rate was 2.5%, compared to 1.7% in FY 2015's second quarter.
- In FY 2016's second quarter, unconsolidated entities in which
the Company had an interest delivered 21 units totaling $21.5
million of homes, compared to 22 units totaling $17.0 million in
the second quarter of FY 2015.
- In FY 2016's first six months, unconsolidated entities in which
the Company had an interest delivered 40 units totaling $37.5
million of homes, compared to 49 units totaling $36.3 million in
the same six-month period of FY 2015. The Company recorded
its share of the results from these entities' operations in "Income
from Unconsolidated Entities" on the Company's Statement of
Operations.
- In FY 2016's second quarter, unconsolidated entities in which
the Company had an interest signed 38 contracts for $57.6 million
of homes, compared to 45 contracts for $82.5 million in the second
quarter of FY 2015. In FY 2016's first six months, unconsolidated
entities in which the Company had an interest signed 68 contracts
for $105.2 million of homes, compared to 65 contracts for $113.2
million in the same six-month period of FY 2015.
- At April 30, 2016, unconsolidated entities in which the Company
had an interest had a backlog of $534.3 million and 214 units,
compared to $361.4 million and 151 units at April 30, 2015.
- The Company ended its FY 2016 second quarter with $423.2
million in cash and marketable securities, compared to $336.2
million at 2016's first-quarter end and $542.2 million at FY 2015's
second-quarter end. At FY 2016's second-quarter end, it had
$840.2 million available under its $1.035 billion 15-bank credit
facility, which was scheduled to mature in August 2018.
- On May 19, 2016 the Company replaced this facility with a new
18-bank $1.215 billion credit facility which matures in May
2021. It has an accordion feature under which it can be
increased to a maximum of $2.0 billion, subject to certain
conditions.
- During the second quarter of FY 2016, the Company repurchased
approximately 2.9 million shares of its common stock at an average
price of $27.27 for a total purchase price of $80.1 million.
Additionally, in its third quarter to-date, the Company has
repurchased approximately 1.8 million shares of its common stock at
an average price of $26.50 for a total purchase price of $47.3
million.
- Effective May 23, 2016, the Board of Directors authorized the
repurchase of 20 million shares of Toll Brothers common stock for
general corporate purposes and for the purpose of providing shares
for the Company's equity award and other employee benefit plans,
and terminated the prior share repurchase program.
- The Company's Stockholders' Equity at FY 2016's second-quarter
end was $4.16 billion, compared to $4.05 billion at FY 2015's
second-quarter end.
- The Company ended FY 2016's second quarter with a net
debt-to-capital ratio(1) of 41.7%, compared to 41.7% at FY 2016's
first-quarter end and 40.8% at FY 2015's second-quarter end.
- The Company ended FY 2016's second quarter with approximately
45,400 lots owned and optioned, compared to 43,800 one quarter
earlier and 45,000 one year earlier. At 2016's second-quarter end,
approximately 34,600 of these lots were owned, of which
approximately 17,400 lots, including those in backlog, were
substantially improved.
- In the second quarter of FY 2016, the Company purchased 254
lots for $50.3 million.
- The Company ended FY 2016's second quarter with 299 selling
communities, compared to 291 at FY 2016's first-quarter end and 269
at FY 2015's second-quarter end.
- Based on FY 2016's second-quarter-end backlog and the pace of
activity at its communities, the Company now estimates it will
deliver between 5,800 and 6,300 homes in FY 2016, compared to
previous guidance of 5,700 to 6,400 units. It now believes
the average delivered price for FY 2016's full year will be between
$820,000 and $850,000 per home. This translates to projected
revenues of between $4.76 billion and $5.36 billion in FY 2016,
compared to $4.17 billion in FY 2015.
- In the third quarter of FY 2016, the Company projects
delivering approximately 30% of the dollar value of its
second-quarter-end backlog at an average price of between $815,000
and $835,000.
- The Company projects full FY 2016 gross margins, excluding
interest and write-downs, of approximately 25.8% to 26.2%, compared
to 25.9% in FY 2015. Interest in cost of sales is projected
to be approximately 3.2% for FY 2016, compared to 3.4% in FY
2015.
- The Company updated its guidance for SG&A as a percentage
of revenue, and now projects it will trend down each quarter and
will be approximately 10.4% of revenues for FY 2016, compared to
10.9% of revenues in FY 2015.
- For the full FY 2016, the Company is reiterating its guidance
for Other income and Income from unconsolidated entities to a range
of $105 million to $130 million. Approximately 45% of that
will occur in the fourth quarter and is associated mainly with New
York City joint venture deliveries.
(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.
(EDT) today, May 24, 2016, to discuss these results and its outlook
for FY 2016. 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 Brothers
Apartment Living, Toll Brothers Campus Living, and the affiliated
Toll Brothers Realty Trust, and develops urban low-, mid-,
and high-rise for-sale condominiums through Toll Brothers City
Living.
In 2016, Toll Brothers ranked #6 among all 1,500 companies in
Fortune magazine's survey of the World's Most Admired Companies in
the Quality of Products/Services Offered category behind only
Apple, Walt Disney, Amazon, Alphabet, and Nordstrom. The firm was
also named as the Most Admired Home Building Company for 2016, the
second year in a row it has been so honored. 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.
Toll Brothers discloses information about its business and
financial performance and other matters, and provides links to its
securities filings, notices of investor events, and earnings and
other news releases, on the Investor Relations section of its
website (tollbrothers.com/investor-relations).
Forward Looking Statement
Information presented herein for the second quarter ended April
30, 2016 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; 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; 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; and weather
conditions. 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) |
|
|
|
|
April 30, |
October 31, |
|
2016 |
2015 |
|
(Unaudited) |
  |
ASSETS |
|
|
Cash and cash equivalents |
$ 423,178 |
$ 918,993 |
Marketable securities |
|
10,001 |
Restricted cash |
28,897 |
16,795 |
Inventory |
7,285,351 |
6,997,516 |
Property, construction and office equipment,
net |
136,748 |
136,755 |
Receivables, prepaid expenses and other
assets |
271,137 |
284,130 |
Mortgage loans held for sale |
124,677 |
123,175 |
Customer deposits held in escrow |
67,638 |
56,105 |
Investments in unconsolidated entities |
424,268 |
412,860 |
Investments in foreclosed real estate and
distressed loans |
14,576 |
51,730 |
Deferred tax assets, net of valuation
allowances |
187,755 |
198,455 |
|
$ 8,964,225 |
$ 9,206,515 |
|
  |
  |
LIABILITIES AND EQUITY |
|
|
Liabilities: |
|
|
Loans payable |
$ 711,293 |
$ 1,000,439 |
Senior notes |
2,692,061 |
2,689,801 |
Mortgage company loan
facility |
100,000 |
100,000 |
Customer deposits |
328,258 |
284,309 |
Accounts payable |
281,074 |
236,953 |
Accrued expenses |
605,198 |
608,066 |
Income taxes payable |
81,393 |
58,868 |
Total liabilities |
4,799,277 |
4,978,436 |
|
|
|
Equity: |
|
|
Stockholders' Equity |
|
|
Common stock |
1,779 |
1,779 |
Additional paid-in capital |
718,013 |
728,125 |
Retained earnings |
3,757,436 |
3,595,202 |
Treasury stock, at cost |
(315,479) |
(100,040) |
Accumulated other comprehensive
loss |
(2,610) |
(2,509) |
Total stockholders' equity |
4,159,139 |
4,222,557 |
Noncontrolling interest |
5,809 |
5,522 |
Total equity |
4,164,948 |
4,228,079 |
|
$ 8,964,225 |
$ 9,206,515 |
|
|
|
TOLL BROTHERS, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Amounts in thousands,
except per share data) |
(Unaudited) |
|
|
|
|
|
|
Six Months Ended |
Three Months Ended |
|
April 30, |
April 30, |
|
2016 |
2015 |
2016 |
2015 |
Revenues |
$ 2,044,123 |
$ 1,706,035 |
$ 1,115,557 |
$ 852,583 |
|
  |
  |
  |
  |
Cost of revenues |
1,582,882 |
1,328,544 |
870,571 |
678,512 |
Selling, general and administrative
expenses |
250,136 |
213,999 |
128,340 |
107,685 |
|
1,833,018 |
1,542,543 |
998,911 |
786,197 |
|
|
|
|
|
Income from operations |
211,105 |
163,492 |
116,646 |
66,386 |
Other: |
|
|
|
|
Income from unconsolidated
entities |
17,756 |
11,128 |
9,118 |
6,227 |
Other income - net |
28,353 |
35,935 |
14,633 |
13,919 |
Income before income taxes |
257,214 |
210,555 |
140,397 |
86,532 |
Income tax provision |
94,980 |
61,300 |
51,343 |
18,602 |
Net income |
$ 162,234 |
$ 149,255 |
$ 89,054 |
$ 67,930 |
Income per share: |
  |
  |
  |
  |
Basic |
$ 0.95 |
$ 0.85 |
$ 0.53 |
$ 0.38 |
Diluted |
$ 0.91 |
$ 0.81 |
$ 0.51 |
$ 0.37 |
Weighted-average number of shares: |
  |
  |
  |
  |
Basic |
171,578 |
176,267 |
168,952 |
176,458 |
Diluted |
179,403 |
184,472 |
176,414 |
184,838 |
|
|
|
|
|
TOLL BROTHERS, INC. AND
SUBSIDIARIES |
SUPPLEMENTAL
DATA |
(Amounts in
thousands) |
(unaudited) |
|
|
|
|
|
|
Six Months Ended |
Three Months Ended |
|
April 30, |
April 30, |
|
2016 |
2015 |
2016 |
2015 |
Impairment charges recognized: |
  |
  |
  |
  |
Cost of sales - land
owned/controlled for future communities |
$ 934 |
$ 1,310 |
$ 253 |
$ 1,066 |
Cost of sales - operating
communities |
6,700 |
12,000 |
6,100 |
11,100 |
|
$ 7,634 |
$ 13,310 |
$ 6,353 |
$ 12,166 |
|
  |
  |
  |
  |
Depreciation and amortization |
$ 11,029 |
$ 11,772 |
$ 5,302 |
$ 5,963 |
Interest incurred |
$ 80,412 |
$ 80,458 |
$ 40,305 |
$ 39,954 |
Interest expense: |
  |
  |
  |
  |
Charged to cost of sales |
$ 67,745 |
$ 57,953 |
$ 35,722 |
$ 29,576 |
Charged to other income -
net |
309 |
1,738 |
34 |
410 |
|
$ 68,054 |
$ 59,691 |
$ 35,756 |
$ 29,986 |
|
  |
  |
  |
  |
Home sites controlled: |
|
|
|
|
Owned |
34,612 |
36,386 |
|
|
Optioned |
10,827 |
8,609 |
|
|
|
45,439 |
44,995 |
|
|
|
|
|
|
|
|
|
|
|
|
Inventory at April 30, 2016
and October 31, 2015 consisted of the following (amounts in
thousands): |
|
|
|
April 30, |
October 31, |
|
|
|
2016 |
2015 |
Land and land development costs |
|
|
$ 2,267,996 |
$ 2,476,008 |
Construction in progress |
|
|
4,421,187 |
3,977,542 |
Sample homes |
|
|
417,007 |
349,481 |
Land deposits and costs of future
development |
|
|
155,473 |
173,879 |
Other |
|
|
23,688 |
20,606 |
|
|
|
$ 7,285,351 |
$ 6,997,516 |
|
|
|
|
|
Toll Brothers operates in two
segments: Traditional Home Building and Urban Infill ("City
Living"). Within Traditional Home Building, Toll operates in
five 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, Colorado, Nevada, and
Washington |
California: |
California |
|
Three Months Ended |
|
April 30, |
|
Units |
$ (Millions) |
Average Price Per Unit
$ |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
HOME BUILDING REVENUES |
  |
  |
  |
  |
  |
  |
North |
235 |
238 |
$ 165.7 |
$ 150.0 |
$ 705,000 |
$ 630,300 |
Mid-Atlantic |
300 |
303 |
186.6 |
187.5 |
622,000 |
618,800 |
South |
239 |
289 |
192.5 |
215.9 |
805,200 |
747,100 |
West |
288 |
231 |
188.4 |
154.1 |
654,100 |
666,900 |
California |
216 |
120 |
328.4 |
128.4 |
1,520,500 |
1,070,000 |
Traditional Home Building |
1,278 |
1,181 |
1,061.6 |
835.9 |
830,600 |
707,800 |
City Living |
26 |
14 |
54.0 |
16.7 |
2,078,500 |
1,191,300 |
Total consolidated |
1,304 |
1,195 |
$ 1,115.6 |
$ 852.6 |
$ 855,500 |
$ 713,500 |
|
  |
  |
  |
  |
  |
  |
CONTRACTS |
|
|
|
|
|
|
North |
327 |
379 |
$ 230.4 |
$ 236.4 |
$ 704,500 |
$ 623,800 |
Mid-Atlantic |
502 |
415 |
308.6 |
259.0 |
614,800 |
624,000 |
South |
367 |
356 |
266.0 |
288.4 |
724,700 |
810,300 |
West |
466 |
348 |
340.6 |
238.7 |
730,900 |
685,800 |
California |
275 |
368 |
408.5 |
484.9 |
1,485,500 |
1,317,700 |
Traditional Home Building |
1,937 |
1,866 |
1,554.1 |
1,507.4 |
802,300 |
807,800 |
City Living |
56 |
65 |
91.1 |
88.2 |
1,627,700 |
1,356,700 |
Total consolidated |
1,993 |
1,931 |
$ 1,645.2 |
$ 1,595.6 |
$ 825,500 |
$ 826,300 |
|
  |
  |
  |
  |
  |
  |
BACKLOG |
|
|
|
|
|
|
North |
1,046 |
986 |
$ 735.7 |
$ 629.2 |
$ 703,400 |
$ 638,100 |
Mid-Atlantic |
1,034 |
904 |
658.2 |
575.3 |
636,600 |
636,400 |
South |
964 |
993 |
762.8 |
803.2 |
791,300 |
808,800 |
West |
1,073 |
745 |
788.7 |
503.4 |
735,100 |
675,700 |
California |
671 |
593 |
1,014.0 |
748.8 |
1,511,100 |
1,262,800 |
Traditional Home Building |
4,788 |
4,221 |
3,959.4 |
3,259.9 |
827,000 |
772,300 |
City Living |
152 |
166 |
232.7 |
222.6 |
1,530,700 |
1,340,900 |
Total consolidated |
4,940 |
4,387 |
$ 4,192.1 |
$ 3,482.5 |
$ 848,600 |
$ 793,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
April 30, |
|
Units |
$ (Millions) |
Average Price Per Unit
$ |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
HOME BUILDING REVENUES |
  |
  |
  |
  |
  |
  |
North |
415 |
448 |
$ 286.5 |
$ 282.4 |
$ 690,400 |
$ 630,400 |
Mid-Atlantic |
579 |
565 |
356.4 |
350.9 |
615,500 |
621,100 |
South |
437 |
525 |
339.3 |
377.8 |
776,400 |
719,600 |
West |
490 |
411 |
325.6 |
276.4 |
664,500 |
672,500 |
California |
375 |
275 |
545.3 |
294.0 |
1,454,100 |
1,069,100 |
Traditional Home Building |
2,296 |
2,224 |
1,853.1 |
1,581.5 |
807,100 |
711,100 |
City Living |
71 |
62 |
191.0 |
124.5 |
2,690,100 |
2,008,100 |
Total consolidated |
2,367 |
2,286 |
$ 2,044.1 |
$ 1,706.0 |
$ 863,600 |
$ 746,300 |
|
  |
  |
  |
  |
  |
  |
CONTRACTS |
|
|
|
|
|
|
North |
571 |
556 |
$ 403.0 |
$ 347.0 |
$ 705,800 |
$ 624,100 |
Mid-Atlantic |
802 |
639 |
495.7 |
406.7 |
618,100 |
636,500 |
South |
577 |
555 |
432.9 |
457.8 |
750,300 |
824,900 |
West |
747 |
567 |
540.8 |
387.1 |
724,000 |
682,700 |
California |
437 |
593 |
661.6 |
738.3 |
1,514,000 |
1,245,000 |
Traditional Home Building |
3,134 |
2,910 |
2,534.0 |
2,336.9 |
808,600 |
803,100 |
City Living |
109 |
84 |
198.3 |
131.9 |
1,819,300 |
1,570,200 |
Total consolidated |
3,243 |
2,994 |
$ 2,732.3 |
$ 2,468.8 |
$ 842,500 |
$ 824,600 |
|
|
|
|
|
|
|
Unconsolidated
entities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Information related to revenues
and contracts of entities in which we have an interest for the
three-month and six-month periods ended April 30, 2016 and
2015, and for backlog at April 30, 2016 and 2015 is as
follows: |
|
|
|
|
|
|
|
|
Units |
$ (Millions) |
Average Price Per Unit
$ |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
Three months ended April 30, |
  |
  |
  |
  |
  |
  |
Revenues |
21 |
22 |
$ 21.5 |
$ 17.0 |
$ 1,022,100 |
$ 771,100 |
Contracts |
38 |
45 |
$ 57.6 |
$ 82.5 |
$ 1,514,900 |
$ 1,833,500 |
|
|
|
|
|
|
|
Six months ended April 30, |
|
|
|
|
|
|
Revenues |
40 |
49 |
$ 37.5 |
$ 36.3 |
$ 937,600 |
$ 740,000 |
Contracts |
68 |
65 |
$ 105.2 |
$ 113.2 |
$ 1,547,500 |
$ 1,741,200 |
|
|
|
|
|
|
|
Backlog at April 30, |
214 |
151 |
$ 534.3 |
$ 361.4 |
$ 2,496,700 |
$ 2,393,200 |
|
|
|
|
|
|
|
CONTACT: Frederick N. Cooper (215) 938-8312
fcooper@tollbrothersinc.com
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