FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
August 6, 2003 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' 3rd QTR CONTRACTS RISE 35% VS 2002 TO SET NEW SINGLE QTR RECORD
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ALL-TIME RECORD BACKLOG AT 3rd QTR-END GROWS 31%
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RECORD 3rd QTR HOME BUILDING REVENUES INCREASE 20%
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Huntingdon Valley, PA, August 6, 2003 -- Toll Brothers, Inc., (NYSE:TOL)
(www.tollbrothers.com), the nation's leading builder of luxury homes, today
reported record preliminary third quarter and nine-month results for home
building revenues, contracts and backlog for the periods ended July 31, 2003.
The third quarter contracts and backlog totals were the highest for any quarter
in the Company's history. Toll Brothers will be announcing final results when it
reports third quarter 2003 earnings on August 26, 2003.
Robert I. Toll, chairman and chief executive officer, stated: "Demand for our
luxury homes is tremendous in nearly all of our regions: With a record 180
selling communities at third quarter-end, we are well-positioned to benefit from
this demand."
"Our reservation deposits each week for the past 13 weeks have set "same-store"
highs dating back fifteen years. Reservation deposits are a key for future
contracts and, ultimately, for deliveries and revenues ten to twelve months
later."
"Since June 16th, when interest rates began to rise, we have seen no decline in
demand - in fact, it has accelerated. While rising rates may have pushed some
"fence-sitting" buyers to jump in before rates rose further, we attribute most
of the continuing strength in demand for our homes to increasing numbers of
affluent households and our ability to control home sites, gain approvals and
open communities in the lot-constrained markets where buyers of luxury homes
most want to live."
"Based on ten consecutive years of record earnings and eleven of record
revenues, we have demonstrated the ability to grow in rising mortgage rate
environments. Our buyers take advantage of a wide variety of mortgage products
that help to mute the impact of rising interest rates. Rates rose in 1995, 1997
and 2000 and we grew every year, more than tripling the size of our company
between 1995 and 2001, a time of interest rate volatility."
"Even in times when single-family housing starts have declined nationally, we
continued to grow by expanding geographically, by entering new niches within the
luxury market and by gaining market share from smaller, privately owned builders
who are our main competitors in the luxury market. We now control approximately
45,000 homes sites in affluent, lot-constrained markets, so we can reasonably
predict continued growth in the number of our selling communities for the next
several years."
*more*
"Since most of the contracts signed this quarter are for homes to be delivered
in fiscal year 2004, we believe revenues in the first half of the coming year
should be at record levels. Based on our record backlog, the pace of current
demand and our pipeline of prospective communities, we foresee record results
for 2004."
o Record third quarter 2003 home building revenues of approximately $679
million (1,188 homes) rose 20% versus third quarter 2002 home building
revenues of $565.4 million (1,093 homes). Record nine-month home building
revenues of approximately $1.84 billion (3,333 homes) grew 16% versus
2002's record total of $1.59 billion (3,158 homes).
o Revenues from land sales totaled approximately $7.5 million and $20.9
million for the third quarter and nine-month periods respectively compared
to $12.5 million and $26.5 million respectively in 2002.
o Record third quarter contracts of approximately $953 million (1,671 homes),
the highest for any quarter in the Company's history, grew by 35% versus
2002's previous third quarter record of $704.2 million (1,274 homes).
Record nine-month contracts of approximately $2.47 billion (4,404 homes)
rose 18% compared to 2002's nine-month record of $2.09 billion (3,908
homes).
o The Company's record third quarter-end backlog of approximately $2.49
billion (4,411 homes) increased 31% versus the 2002 record third quarter
total of $1.90 billion (3,441 homes).
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, August 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 November 1, 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.
*more*
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.
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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 ENDED July 31*:
UNITS $ (MILL)
3rd Qtr. 3rd Qtr. 3rd Qtr. 3rd Qtr.
CLOSINGS 2003 2002 2003 2002
- --------------------------- ----- ----- ------- -------
Northeast 179 214 112.6 114.5
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 445 429 221.7 203.4
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 103 89 57.1 41.6
Southeast (FL, NC, TN) 131 143 69.3 58.0
Southwest (AZ, TX, NV, CO) 212 142 114.0 77.7
West Coast (CA) 118 76 103.9 70.2
----- ----- ------- -------
Total 1,188 1,093 678.6 565.4
CONTRACTS (1)
- ---------------------------
Northeast 247 218 141.7 125.5
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 643 468 322.5 225.4
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 136 111 74.6 58.4
Southeast (FL, NC) 154 164 77.3 82.1
Southwest (AZ, TX, NV, CO) 207 184 119.1 94.3
West Coast (CA) 284 129 217.6 118.5
----- ----- ------- -------
Total 1,671 1,274 952.8 704.2
BACKLOG (1)
- ---------------------------
Northeast 853 668 483.6 378.9
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,647 1,172 810.8 550.2
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 351 302 192.1 157.1
Southeast (FL, NC, TN) 336 446 202.0 231.1
Southwest (AZ, TX, NV, CO) 613 443 341.6 222.2
West Coast (CA) 611 410 456.0 365.0
----- ----- ------- -------
Total 4,411 3,441 2,486.1 1,904.5
*Note: Results are preliminary (unaudited).
*more*
PERIOD ENDED JULY 31*:
UNITS $ (MILL)
9 Months 9 Months 9 Months 9 Months
CLOSINGS 2003 2002 2003 2002
- ---------------------------- -------- -------- --------- ---------
Northeast 511 650 307.8 337.5
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,213 1,110 593.4 517.5
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 269 305 143.4 142.4
Southeast (FL, NC, TN) 476 433 219.2 172.3
Southwest (AZ, TX, NV, CO) 512 389 267.8 209.0
West Coast (CA) 352 271 305.8 208.5
----- ----- ------- -------
Total 3,333 3,158 1,837.4 1,587.2
CONTRACTS (1)
- ----------------------------
Northeast 704 667 406.7 385.7
(MA, RI, NH, CT, NY, NJ)
Mid-Atlantic 1,726 1,449 856.8 675.5
(PA, DE, MD, VA)
Mid-West (MI, IL, OH) 356 313 191.1 159.8
Southeast (FL, NC, TN) 428 551 216.8 252.0
Southwest (AZ, TX, NV, CO) 589 490 340.7 243.7
West Coast (CA) 601 438 453.4 374.9
----- ----- ------- -------
Total 4,404 3,908 2,465.5 2,091.6
(1)Contracts for the three-month and nine-month periods ended July 31, 2003
included $1.1 million (3 homes) and $6.5 million (21 homes), respectively, from
an unconsolidated 50% owned joint venture. Contracts for the three-month and
nine-month periods ended July 31, 2002 included $4.2 million (12 homes) and $8.9
million (26 homes), respectively, from this joint venture. Backlog as of July
31, 2003 and 2002 included $5.8 million (19 homes) and $5.4 million (15 homes),
respectively, from this joint venture.
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