FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
November 5, 2003 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' RECORD 4TH QTR 2003 CONTRACTS RISE 55% VS 2002
RECORD BACKLOG AT 4TH QTR-END GROWS 41%
RECORD 4TH QTR HOME BLDG REVENUES INCREASE 29%
FY 2003 IS TOLL'S 12TH CONSECUTIVE YEAR OF RECORD HOME BLDG REVENUES, UP 20%,
AND 13TH CONSECUTIVE YEAR OF RECORD CONTRACTS, UP 27% VS 2002
Huntingdon Valley, PA, November 5, 2003 -- Toll Brothers, Inc., (NYSE:TOL)
(www.tollbrothers.com), the nation's leading builder of luxury homes, today
reported record preliminary fourth quarter and fiscal year-end results for home
building revenues, contracts and backlog for the periods ended October 31, 2003.
The Company's fourth quarter home building revenues, contracts and backlog were
the highest for any single quarter in its history. Toll Brothers will be
announcing final results when it reports fourth quarter and fiscal year 2003
earnings on December 10, 2003.
Robert I. Toll, chairman and chief executive officer, stated: Our sustained
growth and string of record results speak to the diligence of our associates,
the consistently strong demographics that support the luxury market, and the
success of our geographic and product diversification over the past dozen
years."
"By focusing on the increasing numbers of affluent baby boomers, and by offering
them move-up, empty-nester and resort-style communities with lakes, golf courses
and other recreational amenities, we have increased our market share of this
expanding group. By introducing new product lines such as active-adult,
second-home and urban in-fill communities we have increased our growth
opportunities. With our diverse product offerings and an established brand name
in the luxury market we intend to continue penetrating existing markets and
expanding into new ones."
"For the foreseeable future, it appears that demand for luxury homes will remain
robust, primarily due to growth in population and increasing household
affluence. Supply, in contrast, should remain constrained, due to increasingly
difficult land approval processes. This imbalance plays to our strength. We own
or control approximately 47,000 home sites and have the expertise and capital to
gain approvals and bring new sites to market. Our main competitors in the luxury
market are smaller private builders who lack this expertise and capital.
Therefore we expect to continue to gain market share in the coming years."
"We have achieved thirteen consecutive years of record contracts despite
economic recessions, wars, interest rate rises, housing start drops and, today,
an economy nearly three years into the worst employment slump since World War
II. This performance suggests that we can sustain our growth whether housing
starts in general rise or decline."
*more*
"Since March, 2003, when the threat of war with Iraq hung over the nation, our
stock price has more than doubled. Investors have begun to take notice of the
record growth and profitability our Company has produced. Even so, our
price/earnings ratio and those of the other public builders are still just half
that of the S&P 500: Given our growth potential and that of the industry, we
believe there is significant opportunity for investors in this environment. With
the possibility of economic recovery, job growth and improved consumer
confidence on the horizon, we believe the outlook for Toll Brothers and our
industry is bright."
"We ended fiscal 2003 with 200 selling communities, the most in our history,
compared to 170 at FYE 2002. This growth plus our record year-end backlog, which
already contains more than 75% of 2004's projected deliveries, presages a record
fiscal 2004. Based on the significant investment we have made in new land
opportunities, we expect to reach approximately 225 selling communities by FYE
2004. With our increasing community count and our pipeline of land under
development, we foresee further growth in FY 2005 and 2006."
Toll Brothers' preliminary financial highlights for the periods ended October
31, 2003 (unaudited):
o Fourth quarter 2003 home building revenues of approximately $894 million
(1,578 homes), the highest for any quarter in the Company's history,
increased 29% versus 2002's record fourth quarter home building revenues of
$692.1 million (1,272 homes).
o FYE 2003 home building revenues of approximately $2.73 billion (4,911
homes)grew 20% versus 2002's FYE record of $2.28 billion (4,430 homes)
o Revenues from land sales totaled approximately $6 million and $27 million
for the fourth quarter and FYE 2003 periods respectively, compared to $9.7
million and $36.2 million respectively in 2002.
o Fourth quarter 2003 contracts of approximately $1.02 billion (1,757 homes),
also the highest for any quarter in the Company's history, grew by 55%
versus 2002's record fourth quarter of $656.6 million (1,205 homes). FYE
2003 contracts of approximately $3.49 billion (6,161 homes) rose 27%
compared to 2002's FYE record of $2.75 billion (5,113 homes).
o The Company's FY 2003 fourth quarter-end backlog of approximately $2.64
billion (4,667 homes), also the highest for any quarter in the Company's
history, increased 41% versus 2002's record fourth quarter-end of $1.87
billion (3,366 homes).
o Fourth quarter and fiscal year 2003 net income will each include a pre-tax
expense due to early retirement of debt. The Company incurred a pre-tax
expense of $3.9 million, (or $0.033 per share diluted after tax), in the
first quarter of 2003 and a pre-tax expense of approximately $3.3 million,
(or $0.027 per share diluted after tax), in the fourth quarter of 2003. In
Fiscal 2002 there were no such expenses.
*more*
Toll Brothers will be broadcasting live via the Investor Relations section of
its website, www.tollbrothers.com, a conference call hosted by chairman and
chief executive officer Robert I. Toll at 2:00 p.m. (EST) today, November 5,
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 December 9, 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, anticipated
income from joint ventures and the Toll Brothers Realty Trusts Group,
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
average delivered price of homes, the ability to secure materials and
subcontractors, the ability to maintain the liquidity and capital
necessary to expand and take advantage of future opportunities, 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, uncertainties created by terrorist
attacks, 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, changes in tax laws and
their interpretation, legal proceedings, the availability of adequate
insurance at reasonable cost, the ability of customers to finance the
purchase of homes, the availability and cost of labor and materials, and
weather conditions.
*more*
PERIOD ENDING OCTOBER 31ST*:
UNITS $ (MILL)
4TH Qtr 4TH Qtr 4TH Qtr 4TH Qtr
CLOSINGS 2003 2002 2003 2002
- ------------------------------- ---------- --------- --------- --------
Northeast
(MA, RI, NH, CT, NY, NJ) 244 236 142.5 127.8
Mid-Atlantic (PA, DE, MD, VA) 580 470 288.6 217.5
Midwest (OH, IL, MI) 136 89 76.1 44.9
Southeast (FL, NC, TN) 177 181 92.1 86.7
Southwest (AZ, CO, NV, TX) 205 124 110.4 61.3
West Coast (CA) 236 172 184.0 153.9
------ ------ ------- -------
Total 1,578 1,272 893.7 692.1
CONTRACTS (1)
- -------------------------------
Northeast
(MA, RI, NH, CT, NY, NJ) 323 228 178.3 133.6
Mid-Atlantic (PA, DE, MD, VA) 607 432 314.9 214.6
Midwest (OH, IL, MI) 106 85 55.6 43.2
Southeast (FL, NC, SC, TN) 163 119 80.2 60.0
Southwest (AZ, CO, NV, TX) 301 217 165.7 107.7
West Coast (CA) 257 124 225.1 97.5
------ ------ ------- ------
Total 1,757 1,205 1,019.8 656.6
BACKLOG (1)
- -------------------------------
Northeast
(MA, RI, NH, CT, NY, NJ) 932 660 519.4 384.7
Mid-Atlantic (PA, DE, MD, VA) 1,674 1,134 837.1 547.3
Midwest (OH, IL, MI) 309 290 167.9 152.7
Southeast (FL, NC, SC, TN) 411 384 218.3 204.5
Southwest (AZ, CO, NV, TX) 709 536 396.8 268.6
West Coast (CA) 632 362 497.1 308.5
------ ------ ------- -------
Total 4,667 3,366 2,636.6 1,866.3
*Note: Results are preliminary
*more*
PERIOD ENDING OCTOBER 31ST*:
UNITS $ (MILL)
FYE FYE FYE FYE
CLOSINGS 2003 2002 2003 2002
- ------------------------------- ---------- --------- --------- --------
Northeast
(MA, RI, NH, CT, NY, NJ) 755 886 450.3 465.3
Mid-Atlantic (PA, DE, MD, VA) 1,793 1,580 882.0 735.0
Midwest (OH, IL, MI) 405 394 219.5 187.3
Southeast (FL, NC, TN) 653 614 311.3 258.9
Southwest (AZ, CO, NV, TX) 717 513 378.2 270.4
West Coast (CA) 588 443 489.8 362.4
---------- --------- --------- --------
Total 4,911 4,430 2,731.1 2,279.3
CONTRACTS (1)
- -------------------------------
Northeast
(MA, RI, NH, CT, NY, NJ) 1,027 895 584.9 519.5
Mid-Atlantic (PA, DE, MD, VA) 2,333 1,881 1,171.8 890.1
Midwest (OH, IL, MI) 462 398 246.7 202.9
Southeast (FL, NC, SC, TN) 591 670 297.0 312.0
Southwest (AZ, CO, NV, TX) 890 707 506.5 351.4
West Coast (CA) 858 562 678.3 472.3
---------- --------- --------- --------
Total 6,161 5,113 3,485.2 2,748.2
(1)Contracts for the three-month and twelve-month periods ended October 31, 2003
included $2.6 million (8 homes) and $9.2 million (29 homes), respectively, from
an unconsolidated 50%-owned joint venture. Contracts for the three-month and
twelve-month periods ended October 31, 2002 included $4.9 million (17 homes) and
$13.7 million (43 homes), respectively, from this joint venture. Backlog as of
October 31, 2003 and 2002 included $4.7 million (15 homes) and $7.5 million (24
homes), respectively, from this joint venture.
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