Exhibit 99.2
Supplemental Guarantor Information
A wholly owned subsidiary of the Company, Toll Brothers Finance Corp.(the
"Subsidiary Issuer"), intends to issue senior debt. The obligations of the
Subsidiary Issuer to pay principal, premiums, if any, and interest will be
guaranteed jointly and severally on a senior basis by the Company and
substantially all of the Company's wholly-owned homebuilding subsidiaries (the
"Guarantor Subsidiaries"). The guarantees will be full and unconditional. The
Company's non-homebuilding subsidiaries (the " Non-Guarantor Subsidiaries") will
not guarantee the debt. Separate financial statements and other disclosures
concerning the Guarantor Subsidiaries are not presented because management has
determined that such disclosures would not be material to investors.
Supplemental consolidating financial information of the Company, the Issuer
Subsidiary, the Guarantor Subsidiaries, the Non-Guarantor Subsidiaries and the
eliminations to arrive at Toll Brothers, Inc. on a consolidated basis are
presented below. Toll Brothers Finance Corp. prior to the intended senior debt
issuance has not had any operations.
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
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Consolidating Balance Sheet
At July 31, 2002 ($ in thousands)
ASSETS
Cash and cash equivalents 48,823 1,921 50,744
Inventory 2,525,660 2,525,660
Property, construction and
office equipment, net 28,016 8,901 36,917
Receivables, prepaid
expenses and other assets 1,147,771 47,754 16,177 (1,129,415) 82,287
Mortgage loans receivable 565 31,020 31,585
Customer deposits held
in escrow 25,048 25,048
Investments in
unconsolidated entities 17,692 17,692
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1,147,771 - 2,693,558 58,019 (1,129,415) 2,769,933
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabiliities
Loans payable 249,841 4,760 254,601
Subordinated notes 819,643 819,643
Mortgage company
warehouse loans 26,434 26,434
Customer deposits 137,411 137,411
Accounts payable 130,182 59 130,241
Accrued expenses 233,981 19,851 253,832
Income taxes payable 88,581 88,581
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Total liabilities 88,581 - 1,571,058 51,104 - 1,710,743
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Stockholders' equity
Preferred Stock
Common stock 740 1 3 (4) 740
Additional paid-in-capital 101,811 5,070 1,084 (6,154) 101,811
Retained earnings 1,032,416 1,117,429 5,828 (1,123,257) 1,032,416
Treasury stock (75,777) (75,777)
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Total stockholders' equity 1,059,190 - 1,122,500 6,915 (1,129,415) 1,059,190
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1,147,771 - 2,693,558 58,019 (1,129,415) 2,769,933
=============================================================================================
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Income Statement
For the nine-months ended July 31, 2002 ($ in thousands)
Revenues:
Housing sales 1,587,168 1,587,168
Land sales 26,519 26,519
Other 8,268 12,820 (13,136) 7,952
Equity earnings
from unconsolidated
entities 1,743 1,743
Earnings from
subsidiaries 237,420 (237,420) -
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237,420 - 1,623,698 12,820 (250,556) 1,623,382
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Costs and expenses:
Cost of sales 1,167,571 1,060 (786) 1,167,845
Selling, general
and administrative 7 173,540 8,786 (9,467) 172,866
Interest 45,166 651 (559) 45,258
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7 - 1,386,277 10,497 (10,812) 1,385,969
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Income before taxes 237,413 - 237,421 2,323 (239,744) 237,413
Income taxes 86,909 86,913 858 (87,771) 86,909
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Net income 150,504 - 150,508 1,465 (151,973) 150,504
===========================================================================================
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Income Statement
For the nine-months ended July 31, 2001 ($ in thousands)
Revenues"
Housing sales 1,529,394 1,529,394
Land sales 25,166 25,166
Other 11,359 11,231 (10,872) 11,718
Equity earnings
from unconsolidated
entities 7,575 7,575
Earnings from
subsidiaries 229,709 (229,709) -
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229,709 - 1,573,494 11,231 (240,581) 1,573,853
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Costs and expenses:
Cost of sales 1,150,616 3,382 (3,251) 1,150,747
Selling, general
and administrative 3 152,835 6,444 (6,388) 152,894
Interest 40,334 706 (534) 40,506
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Total 3 - 1,343,785 10,532 (10,173) 1,344,147
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Income before taxes 229,706 - 229,709 699 (230,408) 229,706
Income taxes 84,559 84,468 258 (84,726) 84,559
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Net income 145,147 - 145,241 441 (145,682) 145,147
============================================================================================
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Income Statement
For the three-months ended July 31, 2002 ($ in thousands)
Revenues:
Housing sales 565,355 565,355
Land sales 12,478 12,478
Other 7,010 4,708 (9,090) 2,628
Equity earnings
from unconsolidated
entities 246 246
Earnings from
subsidiaries 84,603 (84,603) -
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84,603 - 585,089 4,708 (93,693) 580,707
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Costs and expenses:
Cost of sales 418,464 405 (265) 418,604
Selling, general
and administrative 62,119 3,151 (3,396) 61,874
Interest 15,596 182 (152) 15,626
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- - 496,179 3,738 (3,813) 496,104
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Income before taxes 84,603 - 88,910 970 (89,880) 84,603
Income taxes 31,103 31,104 358 (31,462) 31,103
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Net income 53,500 - 57,806 612 (58,418) 53,500
==========================================================================================
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Income Statement
For the three-months ended July 31, 2001 ($ in thousands)
Revenues:
Housing sales 573,479 573,479
Land sales 2,749 2,749
Other 5,427 3,393 (3,294) 5,526
Equity earnings
from unconsolidated
entities 2,314 2,314
Earnings from
subsidiaries 94,160 (94,160) -
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94,160 - 583,969 3,393 (97,454) 584,068
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Costs and expenses:
Cost of sales 419,796 533 (500) 419,829
Selling, general
and administrative 54,539 2,459 (2,443) 54,555
Interest 15,476 262 (214) 15,524
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Total - - 489,811 3,254 (3,157) 489,908
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Income before taxes 94,160 - 94,158 139 (94,297) 94,160
Income taxes 34,716 34,532 52 (34,584) 34,716
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Net income 59,444 - 59,626 87 (59,713) 59,444
==========================================================================================
Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Statement of Cash Flows
For the nine months Ended July 31, 2002 ($ in thousands)
Cash flow from operating activities
Net income 150,504 150,508 1,465 (151,973) 150,504
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 7,431 673 8,104
Equity earnings in unconsolidated
joint ventures (1,743) (1,743)
Deferred tax provision 2,037 2,037
Changes in operating assets and
liabilities:
Increase in inventory (328,403) 496 (327,907)
Origination of mortgage loans (258,288) (258,288)
Sale of mortgage loans 253,357 253,357
Increase in receivables,
prepaid expenses and other assets (137,038) (28,872) (2,457) 151,973 (16,394)
Increase in customer deposits 35,633 35,633
Increase in accounts payable and
accrued expenses 7,734 16,154 5,281 29,169
Decrease in income taxes payable (6,687) (6,687)
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Net cash used in operating activities 16,550 - (149,292) 527 - (132,215)
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Cash flow from investing activities:
Purchase of property and equipment, net (7,099) (3,543) (10,642)
Investment in unconsolidated entities (5,523) (5,523)
Distribution from unconsolidated
entities 2,800 2,800
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Net cash used in investing
activities - - (9,822) (3,543) - (13,365)
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Cash flow from financing activities
Proceeds from loans payable 100,929 231,692 332,621
Principal payments of loans payable (222,174) (230,161) (452,335)
Net proceeds from issuance of public
debt 149,748 149,748
Proceeds from stock-based benefit plans 12,532 12,532
Purchase of treasury stock (29,082) (29,082)
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Net cash provided by financing
activities (16,550) - 28,503 1,531 - 13,484
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Net decrease in cash and cash equivalents - - (130,611) (1,485) - (132,096)
Cash and cash equivalents, beginning
of year 179,434 3,406 182,840
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Cash and cash equivalents, end of year - - 48,823 1,921 - 50,744
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Toll Non-
Brothers, Subsidiary Guarantor Guarantor
Inc. Issuer Subsidiaries Subsidiaries Elimination Consolidated
-------------------------------------------------------------------------------------------
Consolidating Statement of Cash Flows
For the Nine Months Ended July 31, 2001 ($ in thousands)
Cash flow from operating activities
Net income 145,147 145,241 441 (145,682) 145,147
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 6,933 300 7,233
Equity earnings in unconsolidated joint
ventures (7,575) (7,575)
Deferred tax provision 5,732 5,732
Changes in operating assets and
liabilities, net of assets and
liabilities acquired
Increase in inventory (395,451) 526 (394,925)
Origination of mortgage loans (121,358) (121,358)
Sale of mortgage loans 110,348 110,348
Decrease in receivables,
prepaid expenses and other assets (131,569) (8,370) (5,184) 145,682 559
Increase in customer deposits 10,316 10,316
Increase in accounts payable and
accrued expenses 5,204 13,781 5,099 24,084
Decrease in income taxes payable (923) (923)
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Net cash used in operating activities 23,591 - (235,125) (9,828) - (221,362)
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Cash flow from investing activities:
Purchase of property and equipment, net (8,441) (3,821) (12,262)
Distribution from unconsolidated
entities 14,017 14,017
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Net cash provided by investing
activities - - 5,576 (3,821) - 1,755
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Cash flow from financing activities
Proceeds from loans payable 95,000 13,869 108,869
Principal payments of loans payable (96,990) (1,988) (98,978)
Net proceeds from issuance of public
debt 196,975 196,975
Proceeds from stock-based benefit plans 12,909 12,909
Purchase of treasury stock (36,500) (36,500)
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Net cash provided by financing
activities (23,591) - 194,985 11,881 - 183,275
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Net decrease in cash and cash equivalents - - (34,564) (1,768) - (36,332)
Cash and cash equivalents, beginning
of year 157,086 4,774 161,860
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Cash and cash equivalents, end of year - - 122,522 3,006 - 125,528
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