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Toll Brothers net income rose 110%

Staff writer ▼ | September 4, 2014
Toll Brothers, Inc. announced results for its third quarter ended July 31, 2014. Net income rose 110% to $97.7 million, or $0.53 per share diluted, compared to $46.6 million, or $0.26 per share diluted, in Q3 2013.
Toll Brothers
Home builders   Revenues at Toll Brothers $1.06 billion
Pre-tax income rose 122% to $151.3 million, compared to $68.3 million in FY 2013's third quarter.

Revenues of $1.06 billion and homebuilding deliveries of 1,444 units rose 53% in dollars and 36% in units, compared to FY 2013's third-quarter totals of $689.2 million and 1,059 units. The average price of homes delivered was $732,000, compared to $651,000 in FY 2013's third quarter.

Net signed contracts of $949.1 million and 1,324 units decreased 4% in dollars and 6% in units, compared to FY 2013's third-quarter totals of $992.6 million and 1,405 units. The average price of net signed contracts was $717,000, compared to $707,000 in FY 2013's third quarter. On a per-community basis, FY 2014's third-quarter net signed contracts were 5.25 units, compared to 6.24 units in FY 2013's third quarter. Although this was a year-over-year decline, it was the second highest per-community third quarter total since FY 2006.

Backlog of $3.1 billion and 4,204 units rose 9% in dollars and 5% in units, compared to FY 2013's third-quarter-end backlog of $2.8 billion and 4,001 units. At third-quarter end, the average price of homes in backlog was $737,000, compared to $709,000 at FY 2013's third-quarter end.

In FY 2014's third quarter, the company's gross margin, excluding interest and write-downs, was 26.8%, compared to 23.6% in FY 2014's second quarter and 25.1% in FY 2013's third quarter.

SG&A as a percentage of revenue improved to 10.4% in FY 2014's third quarter, compared to 11.5% in FY 2014's second quarter (excluding $5.1 million of costs related to the acquisition of Shapell Homes, which closed on February 4, 2014) and 12.9% in FY 2013's third quarter.

Third quarter operating margin improved to 12.3% from 7.9% in FY 2014's second quarter and 8.0% in FY 2013's third quarter.

The company ended its third quarter with 256 selling communities, compared to 252 at FY 2014's second-quarter end and 225 at FY 2013's third-quarter end. Eight of the selling communities were acquired in the company's purchase of Shapell Homes in February 2014.

The company ended FY 2014's third quarter with a net debt-to-capital ratio(1) of 43.3%, compared to approximately 47.0% (pro forma) upon closing the acquisition of Shapell Homes, and 45.1% at FY 2014's second-quarter end.

In addition to approximately $386.7 million of cash and marketable securities, the company ended its third quarter with $1.44 billion available under its various credit facilities.


 

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