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, 2016.
FY 2016 First Quarter Financial Highlights:
- FY 2016's first quarter net income was $73.2 million, or $0.40
per share, compared to net income of $81.3 million, or $0.44 per
share, in FY 2015's first quarter.
- Pre-tax income was $116.8 million, compared to pre-tax income
of $124.0 million in FY 2015's first quarter. FY 2016's first
quarter results included pre-tax inventory write-downs totaling
$1.3 million, compared to $1.1 million in FY 2015's first
quarter.
- Revenues of $928.6 million and home building deliveries of
1,063 units rose 9% in dollars and declined 3% in units, compared
to FY 2015's first quarter. The average price of homes delivered
was $873,500, compared to $782,300 in FY 2015's first quarter.
- Net signed contracts of $1.09 billion and 1,250 units rose 24%
in dollars and 18% in units, compared to FY 2015's first quarter.
The average price of net signed contracts was $869,600, compared to
$821,500 in FY 2015's first quarter.
- Backlog of $3.66 billion and 4,251 units rose 34% in dollars
and 16% in units, compared to FY 2015's first-quarter end backlog.
The average price of homes in backlog was $861,600, compared to
$750,300 at FY 2015's first-quarter end.
- Gross margin, excluding interest and write-downs, was 26.9%,
compared to 27.3% in FY 2015's first quarter.
- SG&A leverage (SG&A as a percentage of revenue) was
13.1%, compared to 12.5% in FY 2015's first quarter.
- Income from operations was 10.2% of revenue, compared to 11.4%
of revenue in FY 2015's first quarter.
- Other income and Income from unconsolidated entities totaled
$22.4 million, compared to $26.9 million in FY 2015's first
quarter.
- The Company ended its first quarter with 291 selling
communities, compared to 288 at FYE 2015, and 258 at FY 2015's
first-quarter end.
- At FY 2016's first-quarter end, the Company had approximately
43,800 lots owned and optioned, compared to approximately 44,300 at
FYE 2015 and approximately 45,300 one year ago.
- The Company ended FY 2016 with $336.2 million in cash, compared
to $929.0 million of cash and marketable securities at FYE 2015 and
$510.9 million in cash and marketable securities at FY 2015's
first-quarter end. At FYE 2016's first-quarter end, the Company had
$926.7 million available under its $1.035 billion 15-bank credit
facility, which matures in August 2018.
- During the first quarter of FY 2016, the Company repurchased
approximately 4.8 million shares of its common stock at an average
price of $31.48, for a total purchase price of $150.1 million.
Additionally, since the end of its first quarter, the Company has
repurchased approximately 933,000 shares of its common stock at an
average price of $26.83, for a total purchase price of $25.0
million.
- In updating its guidance, the Company now expects to deliver
between 5,700 and 6,400 homes in FY 2016 at an average price of
$810,000 to $850,000. This compares to 5,525 deliveries in FY 2015
at an average price of $755,000. This translates to projected
revenues of between $4.6 billion and $5.4 billion in FY 2016,
compared to $4.17 billion in FY 2015.
- The Company projects full FY 2016 gross margins, excluding
interest and write-downs, of approximately 25.8% to 26.2%, which is
consistent with FY 2015. Interest in cost of sales is projected to
be approximately 3.1% for FY 2016, compared to 3.4% in FY
2015.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer,
stated: "Our business remains solid as customers continue to
demonstrate a healthy appetite for luxury homes. First quarter
contracts and backlog were up 24% and 34%, respectively, in
dollars, compared to one year ago. Deposits and contracts signed in
the first three weeks of February, the start of our second quarter,
were basically flat compared to the prior year. This is
understandable given the recent stock market decline and global
economic uncertainty. Positively, traffic was up 13% over the same
three weeks and appears to be improving in quality, which gives us
reason for optimism for the balance of the spring selling
season.
"Our North and Mid-Atlantic regions, which have been slower to
emerge from the recession, had strong contract activity in our
first quarter. In the North, which runs from New Jersey up to
Massachusetts and includes the Midwest, contracts were up 56% in
dollars and 38% in units compared to a year ago. New Jersey
produced nearly 38% of the region's total contracts, and saw growth
of 33% in dollars and 45% in units. In the Mid-Atlantic, we
are seeing a reinvigoration of the Northern Virginia market, where
contracts increased 79% in units and 85% in dollars, compared to
last year's first quarter. Our City Living division had a good
quarter as contracts in our wholly owned projects of $107.1 million
and 53 units rose 145% in dollars and 179% in units compared to
last year, while our joint ventures were about even with last
year.
"In California, the drop in our first quarter contracts was not
indicative of how we see the current market. While contracts were
down 28% in units and flat in dollars, both Northern and Southern
California remained healthy. First quarter contracts per community
of 5.2 were ahead of the Company's average of 4.3 by 21%. With
demand in California so brisk over the past two years, and our
backlog up 138% in dollars this quarter end, compared to FY 2015's
first-quarter end, we have raised prices to manage our lot supply
in order to maximize returns.
"In Southern California, our Porter Ranch community, which in FY
2015 produced 33 agreements in the first quarter, was hobbled this
first quarter by a natural gas leak one mile from our site. This
stalled sales for the past three months. Adjusting for Porter
Ranch, Southern California agreements were up 16% compared to last
year.
"On Thursday, the State announced that the leak was certified as
permanently sealed, and officials stated that air quality was back
to normal levels. Obviously this is very good news and we look
forward to returning to normalcy soon at Porter Ranch. We already
saw an increase in traffic this past weekend, and even took a few
new deposits.
"In Northern California, our largest community, Gale Ranch, did
well. We have some other communities that are nearing
sell-out so we have limited inventory available to offer to the
market in the near term.
"While global concerns have weighed on economic outlooks, we
remain committed to growing our community count and are continuing
to evaluate new land deals, albeit with a bit sharper pencil. We
continue to believe that the industry remains on a trajectory of
slow but steady growth with pent-up demand that will release over
time."
Martin P. Connor, Toll Brothers' chief financial officer,
stated: "Subject to our normal caveats regarding forward-looking
statements, we offer the following guidance:
"We are experiencing modest lengthening of our production
timelines associated with increasing complexity in our homes and a
tighter labor market. As a result we are narrowing the full
FY 2016 range of guidance for deliveries to between 5,700 and 6,400
units. We now project that our average delivered price for the full
FY 2016 will be $810,000 to $850,000 per home, which is an increase
at the bottom of the range of $10,000. We expect our backlog
conversion rate in the second quarter of FY 2016 to be
approximately 28% of backlog (in dollars) with an average delivered
price of between $830,000 and $845,000 per home.
"FY 2016 first quarter's gross margin, excluding interest and
impairments, was 26.9%, compared to 27.3% in FY 2015's first
quarter. The year-over-year decline this quarter in gross margin
reflects a mix shift in New York City Living deliveries.
Despite the change in the mid-point of delivery guidance and the
tight labor market, we reiterate our gross margin guidance for full
FY 2016: We expect gross margin, excluding interest and
impairments, to be between 25.8% and 26.2%. We expect interest
included in cost of sales to be approximately 3.1% of revenue for
FY 2016.
"SG&A this quarter, compared to one year ago, grew primarily
due to a larger headcount associated with a 13% increase in
community count and a 16% increase in homes in backlog. SG&A
for the first quarter was also impacted by non-recurring
professional services and technology expenses, as well as the
normal compensation expenses that we incur only in our first
quarters. We reaffirm our guidance that SG&A will trend
down each quarter as a percentage of revenue and average between
approximately 10.1% and 10.3% of revenues for the full FY 2016.
"We are narrowing our FY 2016 guidance for Other income and
Income from unconsolidated entities to a range of $105 to $130
million. Approximately 45% of that will occur in the fourth
quarter and is associated with New York City joint venture
deliveries.
"Our contracts and backlog increased this quarter and our gross
margin has held up well. We believe the sell-off of home builder
stocks, including Toll Brothers, over the past few months, is not
reflective of the fundamentals of our business. Since the start of
FY 2016, we have repurchased approximately $175 million, or 5.7
million shares, of our stock. Subject to stock price fluctuations,
we project a diluted share count of approximately 180 million
shares at our second-quarter end."
Robert I. Toll, executive chairman, stated: "The stock
market seems to be pricing in a steep decline in the economy and,
along with it, our sector. We, on the other hand, are seeing signs
that reflect strength and positive momentum in our business based
on six consecutive quarters of year-over-year contract growth in
both dollars and units. Our average contract sales pace per
community was also up this quarter versus one year ago, and we
believe it still has room to grow.
"Industry-wide housing starts remain far below normal, and new
home supply remains constrained. Interest rates are very
attractive, unemployment is the lowest since 2008, and home values
are rising."
Douglas Yearley continued: "Late last week, we learned
that Toll Brothers had repeated as the World's Most Admired Home
Builder" in Fortune magazine's survey of the World's Most Admired
Companies. Even more exciting, we learned that we ranked #6 in the
world across all industries for the quality of our products and
services, behind only Apple, Walt Disney, Amazon, Alphabet, and
Nordstrom. This is the greatest honor in our history and is an
incredible tribute to our Toll Brothers associates and their
dedication to our customers and our communities."
Robert Toll continued: "Following up on Doug's comments, we
thank Fortune magazine for these tremendous honors. Our goal has
always been to provide our customers with the homes of their
dreams. To have this effort recognized by such a prestigious
group of executives and analysts and to be grouped among the finest
companies in the world for the quality of our products reflects
tremendously on the customer-focused culture that drives our
business each and every day and is a marvelous acknowledgement of
the hard work and commitment of the entire Toll Brothers team."
Toll Brothers' financial highlights for the FY 2016 first
quarter ended January 31, 2016 (unaudited):
- FY 2016's first-quarter net income was $73.2 million, or $0.40
per share diluted, compared to FY 2015's first-quarter net income
of $81.3 million, or $0.44 per share diluted.
- FY 2016's first-quarter pre-tax income was $116.8 million,
compared to FY 2015 first-quarter pre-tax income of $124.0 million.
FY 2016's first-quarter results included pre-tax inventory
write-downs totaling $1.3 million ($0.6 million attributable to an
operating community and $0.7 million attributable to future
communities). FY 2015's first-quarter results included pre-tax
inventory write-downs of $1.1 million ($0.9 million attributable to
an operating community and $0.2 million attributable to future
communities).
- FY 2016's first-quarter total revenues of $928.6 million and
1,063 units increased 9% in dollars and declined 3% in units,
compared to FY 2015's first-quarter total revenues of $853.5
million and 1,091 units.
- The Company's FY 2016 first-quarter net signed contracts of
$1.09 billion and 1,250 units, increased 24% in dollars and 18% in
units, compared to FY 2015's first-quarter net signed contracts of
$873.2 million and 1,063 units.
- On a per-community basis, FY 2016's first-quarter net signed
contracts was 4.34 units per community, compared to first quarter
totals of 4.09 in FY 2015, 3.95 in FY 2014, 4.34 in FY 2013, and
2.86 in FY 2012.
- In FY 2016, first-quarter-end backlog of $3.66 billion and
4,251 units increased 34% in dollars and 16% in units, compared to
FY 2015's first-quarter-end backlog of $2.74 billion and 3,651
units.
- Excluding write-downs and interest, FY 2016's first-quarter
gross margin was 26.9%, compared to 27.3% in FY 2015's first
quarter. FY 2016's first-quarter gross margin, including
write-downs and interest, was 23.3% versus 23.8% in FY 2015's first
quarter.
- Interest included in cost of sales was 3.4% of revenue in FY
2016's first quarter, compared to 3.3% in FY 2015's first
quarter.
- SG&A as a percentage of revenue was 13.1%, compared to
12.5% in FY 2015's first quarter.
- Income from operations of $94.5 million represented 10.2% of
revenues in FY 2016's first quarter, compared to $97.1 million and
11.4% of revenues in FY 2015's first quarter.
- Other income and Income from unconsolidated entities in FY
2016's first quarter totaled $22.4 million, compared to $26.9
million in FY 2015's same quarter, which included an $8.1 million
gain from the sale of home security accounts to a third party by
the Company's wholly-owned Westminster Security Company.
- FY 2016's first-quarter cancellation rate (current-quarter
cancellations divided by current-quarter signed contracts) was
7.5%, of which approximately 1.4% was attributable to Porter Ranch,
compared to 5.6% in FY 2015's first quarter. As a percentage of
beginning-quarter backlog, FY 2016's first-quarter cancellation
rate was 2.5%, compared to 1.7% in FY 2015's first quarter.
- In FY 2016's first quarter, unconsolidated entities in which
the Company had an interest delivered 19 units totaling $16.0
million of homes, compared to 27 units totaling $19.3 million of
homes in the first quarter of FY 2015. The Company recorded its
share of the results from these entities' operations in "Income
from Unconsolidated Entities" on the Company's Statements of
Operations.
- In FY 2016's first quarter, unconsolidated entities in which
the Company had an interest signed 30 contracts for $47.7 million,
compared to 20 contracts for $30.7 million in FY 2015's first
quarter.
- At January 31, 2016, unconsolidated entities in which the
Company had an interest had a backlog of $498.2 million and 197
units, compared to $295.8 million and 128 units at January 31,
2015.
- The Company ended its FY 2016 first quarter with $336.2 million
in cash, compared to $929.0 million in cash and marketable
securities at FYE 2015, and $510.9 million in cash and marketable
securities at FY 2015's first-quarter end. At FY 2016's
first-quarter end, the Company had $926.7 million available under
its $1.035 billion, 15-bank credit facility, which matures in
August 2018.
- During the first quarter of FY 2016, the Company repurchased
approximately 4.8 million shares of its common stock at an average
price of $31.48 for a total purchase price of $150.1 million.
Additionally, since the end of its first quarter, the Company
repurchased approximately 933,000 shares of its common stock at an
average price of $26.83 for a total purchase price of $25.0
million.
- The Company's Stockholders' Equity at FY 2016's first-quarter
end increased 5% to $4.15 billion, compared to $3.96 billion at FY
2015's first-quarter end.
- The Company ended its FY 2016 first quarter with a net
debt-to-capital ratio(1) of 41.7%, compared to 39.5% at FYE 2015
and 41.4% at FY 2015's first-quarter end.
- The Company ended FY 2016's first quarter with approximately
43,800 lots owned and optioned, compared to 44,300 one quarter
earlier, and 45,300 one year earlier. Approximately 35,600 of these
43,800 lots were owned, of which approximately 17,600 lots,
including those in backlog, were substantially improved.
- In the first quarter of FY 2016, the Company purchased 721 lots
for $112.4 million.
- The Company ended FY 2016's first quarter with 291 selling
communities, compared to 288 at FYE 2015 and 258 at FY 2015's
first-quarter end.
- Based on FY 2016's first-quarter-end backlog and the pace of
activity at its communities, the Company now estimates it will
deliver between 5,700 and 6,400 homes in FY 2016, compared to
previous guidance of 5,600 to 6,600 units. It now believes the
average delivered price for FY 2016 will be between $810,000 and
$850,000 per home. This translates to projected revenues of
between $4.6 billion and $5.4 billion in FY 2016, compared to $4.17
billion in FY 2015.
- In the second quarter of FY 2016, the Company projects
delivering approximately 28% of the dollar value of its
first-quarter-end backlog at an average price of between $830,000
and $845,000.
- 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 3.1% for FY 2016, compared to 3.4% in FY
2015.
- The Company reaffirms its guidance that SG&A as a
percentage of revenue will trend down each quarter and will be
approximately 10.1% to 10.3% of revenues for FY 2016, compared to
10.9% of revenues in FY 2015.
- For the full FY 2016, the Company is narrowing its guidance for
Other income and Income from unconsolidated entities to a range of
$105 to $130 million. Approximately 45% of that will occur in
the fourth quarter and is associated with New York City joint
venture deliveries.
- In FY 2016's first quarter, Gibraltar Capital and Asset
Management, the Company's wholly owned subsidiary that invests in
distressed loans and real estate, reported pre-tax income of $2.4
million, compared to $1.0 million of income in FY 2015's first
quarter.
(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 23, 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, and 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.
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 2016. 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 first quarter ended January
31, 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) |
|
|
January 31, |
October 31, |
|
2016 |
2015 |
|
(Unaudited) |
|
ASSETS |
|
|
Cash and cash equivalents |
$ 336,244 |
$ 918,993 |
Marketable securities |
|
10,001 |
Restricted cash |
29,350 |
16,795 |
Inventory |
7,180,050 |
6,997,516 |
Property, construction and office equipment,
net |
134,746 |
136,755 |
Receivables, prepaid expenses and other
assets |
293,467 |
284,130 |
Mortgage loans held for sale |
73,145 |
123,175 |
Customer deposits held in escrow |
58,302 |
56,105 |
Investments in unconsolidated entities |
414,864 |
412,860 |
Investments in foreclosed real estate and
distressed loans |
48,576 |
51,730 |
Deferred tax assets, net of valuation
allowances |
194,693 |
198,455 |
|
$ 8,763,437 |
$ 9,206,515 |
|
|
|
LIABILITIES AND EQUITY |
|
|
Liabilities: |
|
|
Loans payable |
$ 615,298 |
$ 1,000,439 |
Senior notes |
2,690,889 |
2,689,801 |
Mortgage company loan facility |
63,907 |
100,000 |
Customer deposits |
301,282 |
284,309 |
Accounts payable |
264,452 |
236,953 |
Accrued expenses |
607,077 |
608,066 |
Income taxes payable |
64,567 |
58,868 |
Total liabilities |
4,607,472 |
4,978,436 |
|
|
|
Equity: |
|
|
Stockholders' Equity |
|
|
Common stock |
1,779 |
1,779 |
Additional paid-in capital |
718,412 |
728,125 |
Retained earnings |
3,668,382 |
3,595,202 |
Treasury stock, at cost |
(235,654) |
(100,040) |
Accumulated other comprehensive loss |
(2,770) |
(2,509) |
Total stockholders' equity |
4,150,149 |
4,222,557 |
Noncontrolling interest |
5,816 |
5,522 |
Total equity |
4,155,965 |
4,228,079 |
|
$ 8,763,437 |
$ 9,206,515 |
|
TOLL BROTHERS, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(Amounts in thousands,
except per share data) |
(Unaudited) |
|
|
Three Months Ended |
|
January 31, |
|
2016 |
2015 |
Revenues |
$ 928,566 |
$ 853,452 |
|
|
|
Cost of revenues |
712,311 |
650,032 |
Selling, general and administrative
expenses |
121,796 |
106,314 |
|
834,107 |
756,346 |
|
|
|
Income from operations |
94,459 |
97,106 |
Other: |
|
|
Income from unconsolidated entities |
8,638 |
4,901 |
Other income - net |
13,720 |
22,016 |
Income before income taxes |
116,817 |
124,023 |
Income tax provision |
43,637 |
42,698 |
Net income |
$ 73,180 |
$ 81,325 |
Income per share: |
|
|
Basic |
$ 0.42 |
$ 0.46 |
Diluted |
$ 0.40 |
$ 0.44 |
Weighted-average number of shares: |
|
|
Basic |
174,205 |
176,076 |
Diluted |
182,391 |
184,107 |
|
TOLL BROTHERS, INC. AND
SUBSIDIARIES |
SUPPLEMENTAL
DATA |
(Amounts in
thousands) |
(unaudited) |
|
|
Three Months Ended |
|
January 31, |
|
2016 |
2015 |
Impairment charges recognized: |
|
|
Cost of sales - land owned/controlled for
future communities |
$ 681 |
$ 244 |
Cost of sales - operating
communities |
600 |
900 |
|
$ 1,281 |
$ 1,144 |
|
|
|
Depreciation and amortization |
$ 5,727 |
$ 5,809 |
Interest incurred |
$ 40,107 |
$ 40,504 |
Interest expense: |
|
|
Charged to cost of sales |
$ 32,023 |
$ 28,377 |
Charged to other income - net |
275 |
1,328 |
|
$ 32,298 |
$ 29,705 |
|
|
|
Home sites controlled: |
|
|
Owned |
35,639 |
36,142 |
Optioned |
8,180 |
9,158 |
|
43,819 |
45,300 |
|
|
|
Inventory at January 31,
2016 and October 31, 2015 consisted of the following (amounts
in thousands): |
|
|
|
|
January 31, |
October 31, |
|
2016 |
2015 |
Land and land development costs |
$ 2,313,150 |
$ 2,476,008 |
Construction in progress |
4,286,082 |
3,977,542 |
Sample homes |
398,247 |
349,481 |
Land deposits and costs of future
development |
160,399 |
173,879 |
Other |
22,172 |
20,606 |
|
$ 7,180,050 |
$ 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 |
|
January 31, |
|
Units |
$ (Millions) |
Average Price Per Unit
$ |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
HOME BUILDING REVENUES |
|
|
|
|
|
|
North |
180 |
210 |
$ 120.8 |
$ 132.4 |
$ 671,200 |
$ 630,600 |
Mid-Atlantic |
279 |
262 |
169.8 |
163.4 |
608,600 |
623,600 |
South |
198 |
236 |
146.8 |
161.9 |
741,400 |
685,900 |
West |
202 |
180 |
137.3 |
122.4 |
679,500 |
679,700 |
California |
159 |
155 |
216.9 |
165.6 |
1,364,200 |
1,068,300 |
Traditional Home Building |
1,018 |
1,043 |
791.6 |
745.7 |
777,600 |
714,900 |
City Living |
45 |
48 |
137.0 |
107.8 |
3,044,000 |
2,246,200 |
Total consolidated |
1,063 |
1,091 |
$ 928.6 |
$ 853.5 |
$ 873,500 |
$ 782,300 |
|
|
|
|
|
|
|
CONTRACTS |
|
|
|
|
|
|
North |
244 |
177 |
$ 172.6 |
$ 110.6 |
$ 707,400 |
$ 625,100 |
Mid-Atlantic |
300 |
224 |
187.1 |
147.7 |
623,600 |
659,500 |
South |
210 |
199 |
166.9 |
169.3 |
794,900 |
850,700 |
West |
281 |
219 |
200.2 |
148.5 |
712,500 |
678,100 |
California |
162 |
225 |
253.0 |
253.4 |
1,561,900 |
1,126,000 |
Traditional Home Building |
1,197 |
1,044 |
979.8 |
829.5 |
818,600 |
794,600 |
City Living |
53 |
19 |
107.2 |
43.7 |
2,021,500 |
2,301,900 |
Total consolidated |
1,250 |
1,063 |
$ 1,087.0 |
$ 873.2 |
$ 869,600 |
$ 821,500 |
|
|
|
|
|
|
|
BACKLOG |
|
|
|
|
|
|
North |
954 |
845 |
$ 671.0 |
$ 542.8 |
$ 703,400 |
$ 642,400 |
Mid-Atlantic |
832 |
792 |
536.2 |
503.9 |
644,500 |
636,200 |
South |
836 |
926 |
689.3 |
730.6 |
824,500 |
789,000 |
West |
895 |
628 |
636.5 |
418.8 |
711,200 |
666,900 |
California |
612 |
345 |
933.9 |
392.3 |
1,526,000 |
1,137,200 |
Traditional Home Building |
4,129 |
3,536 |
3,466.9 |
2,588.4 |
839,600 |
732,000 |
City Living |
122 |
115 |
195.6 |
151.1 |
1,602,900 |
1,313,700 |
Total consolidated |
4,251 |
3,651 |
$ 3,662.5 |
$ 2,739.5 |
$ 861,600 |
$ 750,300 |
Unconsolidated entities:
Information related to revenues and contracts of entities in
which we have an interest for the three-month periods ended
January 31, 2016 and 2015, and for backlog at January 31,
2016 and 2015 is as follows:
|
Units |
$ (Millions) |
Average Price Per Unit
$ |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
Three months ended January 31, |
|
|
|
|
|
|
Revenues |
19 |
27 |
$ 16.0 |
$ 19.3 |
$ 844,300 |
$ 714,600 |
Contracts |
30 |
20 |
$ 47.7 |
$ 30.7 |
$ 1,588,800 |
$ 1,533,700 |
|
|
|
|
|
|
|
Backlog at January 31, |
197 |
128 |
$ 498.2 |
$ 295.8 |
$ 2,528,900 |
$ 2,311,200 |
CONTACT: Frederick N. Cooper (215) 938-8312
fcooper@tollbrothersinc.com
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