Exhibit 99.1
In its fourth quarter 2003 Earnings Conference Call held on December 10, 2003,
Toll Brothers, Inc. (the "Company") gave the following guidance regarding its
expected results of operations for its fiscal year ending October 31, 2004.
These forecasts are subject to many risks, uncertainties and assumptions and may
vary significantly from the actual results, as further noted below. Information
with respect to quarterly data is subject to even greater fluctuation and risk.
We undertake no obligation to publicly update the information provided due
changes in economic conditions, future events or otherwise. However, any further
disclosures made on related subjects in our subsequent filings, releases or
presentations should be consulted. We suggest that you listen to the conference
call in its entirety. The conference call in its entirety can be heard via the
Investor Relations portion of our website, www.tollbrothers.com, until January
31, 2004.
Expected range of unit deliveries and delivered price for fiscal 2004:
Unit Deliveries Price
Low High Low High
Year 6,000 6,400 $545,000 $555,000
Quarter ending January 31, 2004 1,125 1,225 $535,000 $545,000
Quarter ending April 30, 2004 1,300 1,450 $540,000 $550,000
Quarter ending July 31, 2004 1,550 1,700 $550,000 $560,000
Quarter ending October 31, 2004 1,950 2,100 $550,000 $560,000
Land sales revenue and gross margins for fiscal 2004 are expected to be
approximately:
Revenues Margins
Year $16,000,000 28%
Quarter ending January 31, 2004 $ 5,000,000 25%
Quarter ending April 30, 2004 $ 7,000,000 30%
Quarter ending July 31, 2004 $ 2,000,000 30%
Quarter ending October 31, 2004 $ 2,000,000 30%
Expected other income for fiscal 2004 is approximately:
Year $15,000,000
Quarter ending January 31, 2004 $ 1,500,000
Quarter ending April 30, 2004 $ 2,500,000
Quarter ending July 31, 2004 $ 4,500,000
Quarter ending October 31, 2004 $ 6,500,000
Expected income from unconsolidated entities for fiscal 2004 is approximately:
Year $5,000,000
Quarter ending January 31, 2004 $ 500,000
Quarter ending April 30, 2004 $ 500,000
Quarter ending July 31, 2004 $2,000,000
Quarter ending October 31, 2004 $2,000,000
Expected home building gross margin percentage is as follows:
Year Approximately the same or slightly higher than fiscal 2003
Quarter ending January 31, 2004 Approximately the same as fiscal 2003's first quarter
Quarter ending April 30, 2004 Approximately 30 to 60 basis points better than fiscal 2003's
second quarter
Quarter ending July 31, 2004 Approximately 25 to 35 basis points better than fiscal 2003's
third quarter
Quarter ending October 31, 2004 Approximately the same as fiscal 2003's fourth quarter
Selling, general and administrative expenses as a percentage of revenues is
expected to be as follows:
Year Approximately 10 to 20 basis points higher than fiscal 2003
Quarter ending January 31, 2004 Approximately 70 to 80 basis points higher than fiscal 2003's
first quarter
Quarter ending April 30, 2004 Approximately 10 to 20 basis points higher than fiscal 2003's
second quarter
Quarter ending July 31, 2004 Approximately the same as fiscal 2003's third quarter
Quarter ending October 31, 2004 Approximately 10 basis points higher than fiscal 2003's
fourth quarter
Interest expense for the year and for each of the quarters is expected to be
approximately 2.6% of revenues.
Income taxes for the year and for each of the quarters is expected to be
approximately 37% of income before income taxes.
The share count to determine diluted earnings per share is based upon what we
believe will be an increasing share price during the year. We estimate that the
share count for determining diluted earnings per share will average 81.7 million
shares for the full fiscal year, starting at 81 million shares in the first
fiscal quarter and increasing to 82.2 million shares for the fourth fiscal
quarter.
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.