Exhibit 99
FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
May 28, 2003 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' RECORD 2nd QTR 2003 EARNINGS PER SHARE RISE 4% TO $0.72
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Huntingdon Valley, PA, May 28, 2003 -- Toll Brothers, Inc., (NYSE:TOL), the
nation's leading builder of luxury homes, today reported record earnings and
revenues for the second quarter and six-month periods ended April 30, 2003. The
Company's net income, of $52.9 million, ($0.72 per share diluted), and revenues
of $607.9 million were second quarter records. The value of the Company's second
quarter contracts of $926.5 million and its quarter-end backlog of $2.21 billion
were the highest for any quarter in the Company's history.
Robert I. Toll, chairman and chief executive officer, stated: "We believe the
start of the selling season was delayed due to concerns about war and weather,
which muted activity in February and March. This delay has given way to strong
demand in April and May. The past four weeks have been among the best in our
history for traffic and reservation deposits. These are leading indicators for
future contracts and, ultimately, ten to twelve months down the road, for
deliveries and revenues. If the economy improves, notwithstanding an increase in
interest rates, we believe our prospects will be even brighter."
"Our team produced record earnings despite the winter weather. Based on our
backlog, combined with our record first six months' results, we believe we will
produce record earnings in both the third and fourth quarters and for the full
fiscal year 2003."
"Our expansion program continues with a record 176 selling communities today and
a projected 185 selling communities by FYE 2003. Our record backlog already
contains a large portion of first quarter 2004 deliveries. If the market remains
as it is, we believe we will deliver at least $3 billion in home building
revenues in 2004."
Toll Brothers' financial highlights for the period ended April 30, 2003
(unaudited):
o Second quarter 2003 earnings of $0.72 per share diluted rose 4% versus
second quarter 2002's earnings of $0.69 per share diluted. Second quarter
2003 net income of $52.9 million increased 1% versus second quarter 2002's
net income of $52.5 million. Six-month 2003 earnings of $1.33 per share
diluted grew 3% versus 2002's six-month earnings of $1.29 per share
diluted. Six-month 2003 net income of $98.3 million grew 1% versus 2002's
six-month net income of $97.0 million.
*more*
o Six-month 2003 net income included a pre-tax expense in the first quarter
of 2003 of $3.9 million (or $0.033 per share diluted after tax) due to
early retirement of debt. The first quarter and first six months of 2002
included no such charge. According to SFAS No. 145, an accounting standard
issued in 2002, beginning in the Company's 2003 fiscal year, such charges,
which previously would have been accounted for as an extraordinary expense,
must now be included as an expense from continuing operations.
o Second quarter 2003 revenues of $607.9 million rose 10% versus second
quarter 2002's total of $550.5 million. Second quarter home building
revenues of $601.0 million grew 11% versus 2002's second quarter total of
$539.1 million. The Company delivered 1,109 homes in second quarter 2003,
an increase of 2% versus 2002's total of 1,086.
o Six-month 2003 revenues of $1.18 billion grew 13% versus six-month 2002's
total of $1.04 billion. Six-month home building revenues of $1.16 billion
grew 13% versus 2002's six-month total of $1.02 billion as the Company
delivered 2,145 homes, an increase of 4% versus 2002's total of 2,065.
o Second quarter contracts of $926.5 million, the highest for any quarter in
the Company's history, increased 3% versus second quarter 2002's total of
$902.3 million and record six-month contracts of $1.51 billion rose 9%
versus 2002's total of $1.39 billion. The number of contracts signed in the
second quarter, 1,667 homes, declined by 39 homes, or 2%, compared to
second quarter 2002's total of 1,706. The number of contracts signed for
the six-month period of 2,733 homes rose 4% compared to 2002's six-month
total of 2,634.
o The Company's second quarter-end backlog of $2.21 billion increased 25%
versus 2002's second quarter total of $1.77 billion and the number of homes
in backlog rose 20% to 3,937 versus 2002's second quarter-end backlog of
3,271 homes. These totals were the highest for any quarter in the Company's
history.
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 28, 2003,
to discuss these results and our outlook for the remainder of 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 June
30, 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
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.
*more*
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*
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
April 30, October 31,
2003 2002
---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 211,320 $ 102,337
Inventory 2,737,340 2,551,061
Property, construction and office
equipment, net 40,530 38,496
Receivables, prepaid expenses and
other assets 91,079 93,310
Mortgage loans receivable 67,271 63,949
Customer deposits held in escrow 24,977 23,019
Investments in and advances to
unconsolidated entities 29,632 23,193
---------- ----------
$3,202,149 $2,895,365
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Loans payable $ 255,034 $ 253,194
Senior notes 298,135 -
Senior subordinated notes 719,971 819,663
Mortgage company warehouse loan 60,008 48,996
Customer deposits 150,801 134,707
Accounts payable 113,364 126,391
Accrued expenses 297,094 281,275
Income taxes payable 92,657 101,630
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Total liabilities 1,987,064 1,765,856
---------- ----------
Stockholders' equity:
Preferred stock, none issued
Common stock 740 740
Additional paid-in capital 104,020 102,600
Retained earnings 1,200,078 1,101,799
Treasury stock (89,753) (75,630)
---------- ----------
Total stockholders' equity 1,215,085 1,129,509
---------- ----------
$3,202,149 $2,895,365
========== ==========
*more*
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Six months ended Three months ended
April 30, April 30,
------------------------------ --------------------------
2003 2002 2003 2002
------------------------------ --------------------------
Revenues:
Housing sales $1,158,863 $1,021,813 $600,977 $539,111
Land sales 13,387 14,041 3,953 7,618
Equity earnings (loss)
from unconsolidated
entities 145 1,497 (108) 1,497
Interest and other 5,797 5,324 3,110 2,270
------------------------------ --------------------------
1,178,192 1,042,675 607,932 550,496
------------------------------ --------------------------
Costs and expenses:
Housing sales 842,406 740,063 437,234 388,638
Land sales 10,717 9,178 3,103 4,961
Selling, general and
administrative expenses 133,138 110,992 67,515 58,594
Interest 32,505 29,632 16,464 15,477
Expenses related to early
retirement of debt 3,890
------------------------------ --------------------------
1,022,656 889,865 524,316 467,670
------------------------------ --------------------------
Income before income taxes 155,536 152,810 83,616 82,826
Income taxes 57,257 55,806 30,751 30,316
------------------------------ --------------------------
Net income $ 98,279 $ 97,004 $ 52,865 $ 52,510
============================== ==========================
Earnings per share:
Basic $ 1.40 $ 1.38 $ 0.76 $ 0.74
Diluted $ 1.33 $ 1.29 $ 0.72 $ 0.69
Weighted average number of shares:
Basic 70,133 70,425 69,859 70,849
Diluted 73,955 75,241 73,601 76,237
Additional information:
Interest incurred $ 51,031 $ 45,242 $ 25,249 $ 22,607
Depreciation and
amortization $ 5,928 $ 5,363 $ 2,883 $ 2,460
*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 86.4 74.0
West Coast (CA) 125 119 109.9 89.7
-------- -------- -------- --------
Total 1,109 1,086 601.0 539.1
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 83.8 114.7
Southwest (AZ, TX, NV, CO) 204 190 125.1 95.8
West Coast (CA) 214 199 160.0 171.6
-------- -------- -------- --------
Total 1,667 1,706 926.5 902.3
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
*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 768 681 371.8 314.1
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 166 216 86.3 100.8
Southeast (FL, NC, TN) 345 290 149.9 114.3
Southwest (AZ, TX, NV, CO) 300 247 153.8 131.3
West Coast (CA) 234 195 201.9 138.3
-------- ------- --------- ---------
Total 2,145 2,065 1,158.9 1,021.8
CONTRACTS (1)
- ----------------------------
Northeast 457 449 265.0 260.3
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,083 981 534.3 450.1
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 220 202 116.4 101.3
Southeast (FL, NC, TN) 274 387 139.5 169.9
Southwest (AZ, TX, NV, CO) 382 306 221.7 149.4
West Coast (CA) 317 309 235.8 256.4
-------- -------- --------- ---------
Total 2,733 2,634 1,512.7 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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