Luxury homebuilder Toll Brothers reports 6% increase in revenue to US$427.7M in Q4, up from US$402.6M a year earlier; home building deliveries grow 8% to 757 from 700 units

Wendy Lisney

HORSHAM, Pennsylvania , November 8, 2011 (press release) – Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation's leading builder of luxury homes, in anticipation of its participation in upcoming investor meetings, today announced preliminary results for its fourth quarter and fiscal year ended October 31, 2011 for revenues, contracts and backlog.

FY 2011's fourth-quarter revenues and home building deliveries of approximately $427.7 million and 757 units increased 6% in dollars and 8% in units, compared to FY 2010's fourth-quarter results of $402.6 million and 700 units.

FY 2011's fourth-quarter net signed contracts of approximately $389.9 million and 644 units rose 24% in dollars and 15% in units, compared to FY 2010's fourth-quarter net signed contracts of $315.3 million and 558 units. The average price of fourth-quarter net signed contracts was $606,000, compared to $565,000 in FY 2010's fourth quarter. On a per-community basis, FY 2011's fourth-quarter net signed contracts of approximately 3.04 units per community were 3% higher than FY 2010's fourth-quarter total, 15% lower than FY 2009's fourth-quarter total, and 63% and 46% greater than FY 2008 and FY 2007's fourth-quarter totals, respectively. They were, however, still well below the Company's historical fourth-quarter average, dating back to 1990, of 5.87 units per community.

The Company's contract cancellation rate (current-quarter cancellations divided by current-quarter gross signed contracts) was approximately 7.9% in the fourth quarter of FY 2011, compared to 8.8% in FY 2010's fourth quarter. As a percentage of beginning-quarter backlog, the cancellation rate was 3.1%. These rates were consistent with the Company's pre-downturn historical averages.

The Company ended FY 2011 with a backlog of approximately $981.1 million and 1,667 units, which increased 15% in dollars and 12% in units, compared to FY 2010's year-end backlog of $852.1 million and 1,494 units.

For FY 2011, home building revenues of approximately $1.48 billion and 2,611 units declined 1% in both dollars and units, compared to FY 2010's results of $1.49 billion and 2,642 units. FY 2011 net signed contracts of approximately $1.60 billion and 2,784 units increased 9% in dollars and 7% in units, compared to FY 2010's results of $1.47 billion and 2,605 units.

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