EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
May 6, 2003 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' RECORD 2nd QTR 2003 HOME BUILDING REVENUES
OF $601 MILLION RISE 12% VS 2002.
ALL-TIME RECORD BACKLOG TOPS $2.2 BILLION, UP 25% VERSUS 2002.
RECORD 2nd QTR CONTRACTS OF $927 MILLION ARE HIGHEST FOR ANY QUARTER IN
COMPANY HISTORY.
Huntingdon Valley, PA, May 6, 2003 -- Toll Brothers, Inc., (NYSE:TOL), the
nation's leading builder of luxury homes, today reported record preliminary
results for the second quarter and six-month periods ending April 30, 2003. The
Company will be announcing final results when it reports second quarter 2003
earnings on May 28, 2003.
o Record second quarter 2003 home building revenues of approximately $601
million rose 12% versus second quarter 2002 and record second quarter
deliveries of 1,109 homes rose 2% versus 2002. Record six-month home
building revenues of approximately $1.16 billion increased 13% versus
2002 and record six-month deliveries of 2,145 homes increased 4%.
o Record second quarter contracts of approximately $927 million, the
highest for any quarter in the Company's history, grew by 3% versus
second quarter 2002 and record six-month contracts of approximately
$1.51 billion rose 9% versus 2002. The number of contracts signed in
the second quarter, 1,667 homes, declined by 39 homes, or 2%, compared
to second quarter 2002. However, the number of contracts signed for the
six-month period of 2,733 homes rose 4% to a new six-month record.
o The Company's record second quarter-end backlog of approximately $2.2
billion increased 25% versus 2002 and the number of homes in backlog
rose 20% to 3,937 homes. These totals were the highest for any quarter
in the Company's history.
Robert I. Toll, chairman and chief executive officer, stated: "Demand for luxury
homes remains strong. This quarter we produced record results despite a very
difficult environment. War, a weak economy and extraordinarily bad weather all
served to delay the start of the spring selling season. With consumer confidence
starting to rise, the weather definitely improving and global tensions
lessening, in recent weeks we have seen an increasing appetite for new homes
among luxury buyers. Based on our record start and our $2.2 billion backlog, we
remain on pace for another record year in 2003."
"As consumer confidence rebounds, our prospects for 2004 become even brighter.
We ended the second quarter with 176 selling communities and remain on track to
have 185 selling communities by fiscal year end. With this growth, a backlog
that already includes some early 2004 deliveries, continued solid demand and the
calmer geopolitical environment, we are looking to deliver more than $3 billion
in home building revenues in 2004."
*more*
"We will soon be exiting one of our smallest markets - Nashville, Tennessee.
Since Nashville produced less than $13 million (or about 1/2%) of our revenues
in 2002, we expect no significant financial impact from this move. We believe we
can redeploy management resources to generate higher revenues and greater
profits in other territories with greater growth potential for us."
"In our second quarter we repurchased more than 1 million shares of Toll
Brothers stock. In late March, 2003 our Board of Directors increased our
repurchase authorization to 10 million shares. Adjusting for repurchases since
then, approximately 9.8 million shares remain authorized for repurchase."
Toll Brothers will be broadcasting live via the Investor Relations section of
its web site, www.tollbrothers.com, a conference call hosted by chairman and
chief executive officer Robert I. Toll at 2:00 p.m. (EDT) today, May 6, 2003, to
discuss these results and our outlook for fiscal 2003 and beyond. To access the
call, enter the Toll Brothers website, then 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 on-line
replay which will follow and continue through May 25, 2003.
Toll Brothers, Inc. 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 and the Pacific Exchange under the symbol
"TOL". The Company serves move-up, empty-nester, active-adult and second-home
home buyers and operates in 21 states: Arizona, California, Colorado,
Connecticut, Delaware, Florida, Illinois, Massachusetts, Maryland, Michigan,
Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania,
Rhode Island, South Carolina, Texas, and Virginia.
Toll Brothers builds luxury single-family and attached home communities and
master-planned luxury multi-product residential golf course 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, landscape, cable T.V. and
broadband Internet delivery subsidiaries. The Company also operates its own
lumber distribution, and house component assembly and manufacturing operations.
Toll Brothers is the only publicly traded national home building company to have
won all three of the industry's highest honors: America's Best Builder from the
National Association of Home Builders, the National Housing Quality Award and
Builder of the Year. For more information visit www.tollbrothers.com.
Certain information included herein and in other Company reports, SEC
filings, statements and presentations is forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements concerning anticipated
operating results, financial resources, changes in revenues, changes in
profitability, interest expense, growth and expansion, the ability to
acquire land, the ability to secure governmental approvals and the
ability to open new communities, the ability to sell homes and
properties, the ability to deliver homes from backlog, the ability to
secure materials and subcontractors, and stock market valuations. 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 local, regional and national economic conditions,
the demand for homes, domestic and international political events, the
effects of governmental regulation, the competitive environment in which
the Company operates, fluctuations in interest rates, changes in home
prices, the availability and cost of land for future growth, the
availability of capital, uncertainties and fluctuations in capital and
securities markets, the availability and cost of labor and materials,
and weather conditions.
*more*
PERIOD ENDING APRIL 30*:
UNITS $ (MILL)
2nd Qtr. 2nd Qtr. 2nd Qtr. 2nd Qtr.
CLOSINGS 2003 2002 2003 2002
- --------------------------- --------- --------- --------- --------
Northeast 164 213 96.0 107.4
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 389 353 189.3 160.6
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 79 104 42.8 45.7
Southeast (FL, NC, TN) 182 159 76.6 61.7
Southwest (AZ, TX, NV, CO) 170 138 86.7 74.0
West Coast (CA) 125 119 110.0 89.7
----- ----- ----- -----
Total 1,109 1,086 601.4 539.1
CONTRACTS (1)
- ---------------------------
Northeast 316 259 176.1 152.2
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 648 662 314.9 304.3
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 126 124 66.6 63.7
Southeast (FL, NC, TN) 159 272 83.7 114.7
Southwest (AZ, TX, NV, CO) 204 190 125.5 95.8
West Coast (CA) 214 199 160.1 171.6
----- ----- ----- -----
Total 1,667 1,706 926.9 902.3
BACKLOG (1)
- ---------------------------
Northeast 785 664 454.5 367.9
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,449 1,133 709.9 528.2
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 327 291 177.5 143.8
Southeast (FL, NC, TN) 313 425 194.1 207.0
Southwest (AZ, TX, NV, CO) 618 401 336.5 205.7
West Coast (CA) 445 357 342.3 316.6
----- ----- ----- -----
Total 3,937 3,271 2,214.8 1,769.2
*Note: Results are preliminary (unaudited).
*more*
PERIOD ENDING APRIL 30*:
UNITS $ (MILL)
6 Months 6 Months 6 Months 6 Months
CLOSINGS 2003 2002 2003 2002
- ---------------------------- -------- -------- --------- ---------
Northeast 332 436 195.2 223.0
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 768 681 371.7 314.1
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 166 216 86.3 100.7
Southeast (FL, NC, TN) 345 290 150.0 114.3
Southwest (AZ, TX, NV, CO) 300 247 154.1 131.4
West Coast (CA) 234 195 202.0 138.3
----- ----- ------- -------
Total 2,145 2,065 1,159.3 1,021.8
CONTRACTS (1)
- ----------------------------
Northeast 457 449 265.0 260.2
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,083 981 534.3 450.1
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 220 202 116.4 101.4
Southeast (FL, NC, TN) 274 387 139.5 169.9
Southwest (AZ, TX, NV, CO) 382 306 222.0 149.4
West Coast (CA) 317 309 235.9 256.4
----- ----- ------- -------
Total 2,733 2,634 1,513.1 1,387.4
(1)Contracts for the three-month and six-month periods ended April 30, 2003
included $2.4 million (8 homes) and $5.5 million (18 homes), respectively, from
an unconsolidated 50% owned joint venture. Contracts for the three-month and
six-month periods ended April 30, 2002 included $2.8 million (8 homes) and $4.6
million (14 homes), respectively, from this joint venture. Backlog as of April
30, 2003 and 2002 included $7.7 million (25 homes) and $4.6 million (14 homes),
respectively, from this joint venture.
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