EXHIBIT 99.1
In its second quarter 2004 Earnings Conference Call to be held at 2:00P.M. (EST)
on May 26, 2004, Toll Brothers, Inc. (the "Company") will provide 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 to 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 July 31, 2004.
The guidance given represents a range of deliveries for each of the future
quarters and for the full fiscal year. For ease of reference, we have included
the actual results for our first two fiscal quarters. The columns designated as
"Low" represents the low end of the range while the columns designated "High"
represent the upper end of the range. We expect that the actual results of
operations will be somewhere in between the low end and the high end of the
range provided.
THE EXPECTED RANGE OF UNIT DELIVERIES AND DELIVERED PRICE IN FISCAL 2004 IS:
Unit Deliveries Price (000's)
------------------------- -------------------------
Low High Low High
------------------------- -------------------------
Year 6,050 6,250 $555,000 $565,000
Quarter ended January 31, 2004 (Act) 1,085 1,085 543,389 543,389
Quarter ended April 30, 2004 (Act) 1,463 1,463 556,602 556,602
Quarter ending July 31, 2004 (Est) 1,525 1,625 560,000 570,000
Quarter ending October 31, 2004 (Est) 1,975 2,075 565,000 575,000
HOME BUILDING GROSS MARGINS AS A PERCENTAGE OF HOMEBUILDING REVENUES IN FISCAL
2004 ARE EXPECTED TO BE:
Low High
-------------------------
Year 28.10% 28.20%
Quarter ended January 31, 2004 (Act) 28.35% 28.35%
Quarter ended April 30, 2004 (Act) 28.21% 28.21%
Quarter ending July 31, 2004 (Est) 27.75% 27.95%
Quarter ending October 31, 2004 (Est) 28.05% 28.30%
LAND SALES REVENUES AND GROSS MARGIN FOR FISCAL 2004 IS EXPECTED TO BE
APPROXIMATELY:
Revenues
(000's) Margin
-------------------------
Year $15,000 15%
Quarter ended January 31, 2004 (Act) 5,987 11%
Quarter ended April 30, 2004 (Act) 2,011 25%
Quarter ending July 31, 2004 (Est) 5,000 15%
Quarter ending October 31, 2004 (Est) 2,000 20%
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OTHER INCOME FOR FISCAL 2004 IS EXPECTED TO BE APPROXIMATELY (AMOUNTS IN
THOUSANDS):
Amount
----------------
Year $13,000
Quarter ended January 31, 2004 (Act) 1,683
Quarter ended April 30, 2004 (Act) 2,436
Quarter ending July 31, 2004 (Est) 4,000
Quarter ending October 31, 2004 (Est) 5,000
INCOME FROM UNCONSOLIDATED ENTITIES FOR FISCAL 2004 IS EXPECTED TO BE
APPROXIMATELY (AMOUNTS IN THOUSANDS):
Amount
----------------
Year $12,000
Quarter ended January 31, 2004 (Act) 665
Quarter ended April 30, 2004 (Act) 729
Quarter ending July 31, 2004 (Est) 4,500
Quarter ending October 31, 2004 (Est) 6,000
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES AS A PERCENTAGE OF TOTAL REVENUES
IN FISCAL 2004 IS EXPECTED TO BE:
Low High
-------------------------
Year 10.90% 10.70%
Quarter ended January 31, 2004 (Act) 12.82% 12.82%
Quarter ended April 30, 2004 (Act) 10.97% 10.97%
Quarter ending July 31, 2004 (Est) 10.85% 10.55%
Quarter ending October 31, 2004 (Est) 9.50% 9.30%
Interest expense as a percentage of total revenues for the six months and three
months ended April 30, 2004 was 2.5% and 2.6%, respectively. Interest expense as
a percentage of total revenues is expected to be approximately 2.6% for the
third and fourth quarters. For the full year, interest expense will be
approximately 2.6% of total revenues.
Income taxes for the six months and three months ended April 30, 2004 was 36.7%
of income before income taxes, for both periods. Income taxes for the year and
for each of the next two quarters is expected to be approximately 37% of income
before income taxes.
In-the-money stock options are included in shares outstanding using the
"treasury stock method" for calculating common stock equivalents. Because we
have assumed that our stock price will continue to increase during the year, the
number of shares used to determine earnings per share will increase each
quarter. We estimate that the share count for determining diluted earnings per
share will average 81.5 million shares for the full fiscal year, starting at
80.8 million shares in the first fiscal quarter and increasing to 82.2 million
shares for the fourth fiscal quarter.
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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, 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.
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