EXHIBIT 99.1
GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
February 5 2004 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' RECORD 1ST QTR 2004 CONTRACTS GROW 54% TO $904 MILLION
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RECORD 1ST QTR-END BACKLOG RISES 56% TO $2.9 BILLION
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RECORD 1ST QTR HOME BLDG REVENUES INCREASE 6% TO $590 MILLION
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Huntingdon Valley, PA, February 5, 2004 -- Toll Brothers, Inc., (NYSE:TOL)
(www.tollbrothers.com), the nation's leading builder of luxury homes, today
reported record first quarter results for contracts, backlog and home building
revenues for the period ended January 31, 2004.
Robert I. Toll, chairman and chief executive officer, stated: "With our first
quarter contracts up 54%, the luxury new home market continues to be extremely
strong. Consumer confidence is on the rise, the economy is showing signs of
recovery and all of our product lines are in great demand. With nine to twelve
month lead times at many of our communities, most of our 2004 deliveries are
already in our pipeline. Based on our record backlog, we believe fiscal 2004
should be another record year."
"Our traffic and non-binding reservation deposits, which are leading indicators
of future contracts and revenues, were up over 40% in the past twelve weeks
compared to the same period in fiscal 2003. Clearly, luxury homebuyers have not
been deterred by the miserable weather in many of our markets over the past
several months. The weather, however, did delay the delivery of homes in our
first quarter. Our first quarter delivery total of 1,085 homes was slightly
under the low end of the estimated range we had given to the public in early
December. Based on the ongoing effects of the weather, coupled with the
lengthening time it takes to build a house due to government regulation, we are
reducing by 100 homes the range of estimated fiscal 2004 deliveries we provided
in our last conference call and 8-K filing. We now expect to deliver between
5,900 and 6,300 homes in FY 2004. That compares to our record fiscal 2003
deliveries of 4,911 homes."
"While these factors will make it more challenging for us to catch up, we are in
a unique position. We contract for homes with our buyers, then build and deliver
them. Therefore, those homes scheduled for delivery that don't close in a
particular quarter will be delivered in the next quarter. These are revenues
postponed, not revenues lost."
"With the number of affluent households increasing, we continue to enjoy
extremely strong pricing power in most of our markets. We now control over
48,000 home sites in affluent areas, many of which have significant supply
constraints. With our lot supply, the diversity of products we offer and the
growing number of potential luxury home buyers, we believe we are on a path of
sustainable long-term growth and foresee record results in 2004 and 2005."
*more*
Toll Brothers' preliminary financial highlights for the period ended January 31,
2004 (unaudited):
o First quarter 2004 home building revenues of approximately $590 million
(1,085 homes) increased 6% versus 2003's record first quarter home building
revenues of $557.9 million (1,036 homes). Revenues from land sales totaled
approximately $5.8 million for first quarter 2004 compared to $9.4 million
in first quarter 2003.
o First quarter 2004 contracts of approximately $904 million (1,517 homes)
grew by 54% versus first quarter 2003's record of $586.2 million (1,066
homes).
o The Company's FY 2004 first quarter-end backlog of approximately $2.95
billion (5,094 homes), the highest for any quarter in its history,
increased 56% versus FY 2003's record first quarter-end of $1.89 billion
(3,387 homes).
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, February 5,
2004, to discuss these results and our outlook for fiscal 2004. 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 February 25 2004.
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.
*more*
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*
#s are preliminary
UNITS $ (MILL)
1ST Qtr. 1st Qtr. 1st Qtr. 1st Qtr.
CLOSINGS 2004 2003 2004 2003
- ------------------------------- ---------- ---------- --------- ---------
Northeast
(MA, RI, NH, CT, NY, NJ) 183 168 104.6 99.2
Mid-Atlantic (PA, DE, MD, VA) 405 379 201.4 182.5
Midwest (OH, IL, MI) 72 87 40.9 43.5
Southeast (FL, NC, TN) 121 163 53.7 73.3
Southwest (AZ, NV, TX) 149 130 81.8 67.4
West Coast (CA) 155 109 107.2 92.0
----- ----- ----- -----
Total 1,085 1,036 589.6 557.9
CONTRACTS (1)
- -------------------------------
Northeast
(MA, RI, NH, CT, NY, NJ) 222 141 137.9 88.9
Mid-Atlantic (PA, DE, MD, VA) 527 435 283.8 219.4
Midwest (OH, IL, MI) 125 94 73.3 49.8
Southeast (FL, NC, SC, TN) 174 115 85.4 55.8
Southwest (AZ, NV, TX, CO) 233 178 143.5 96.6
West Coast (CA) 236 103 180.5 75.7
----- ----- ----- -----
Total 1,517 1,066 904.4 586.2
BACKLOG (1)
- -------------------------------
Northeast
(MA, RI, NH, CT, NY, NJ) 971 633 552.7 374.4
Mid-Atlantic (PA, DE, MD, VA) 1,796 1,190 919.5 584.3
Midwest (OH, IL, MI) 357 288 198.8 156.2
Southeast (FL, NC, SC, TN) 464 336 250.1 186.9
Southwest (AZ, NV, TX, CO) 793 584 458.5 297.8
West Coast (CA) 713 356 570.3 292.2
----- ----- ------- -------
Total 5,094 3,387 2,949.9 1,891.8
(1)Contracts for the three-month period ended January 31, 2004 included $1.6
million (5 homes) from an unconsolidated 50% owned joint venture. Contracts for
the three-month period ended January 31, 2003 included $3.1 million (10 homes)
from this joint venture. Backlog as of January 31, 2004 and 2003 included $4.8
million (15 homes) and $7.8 million (25 homes), respectively, from this joint
venture.
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