EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: Frederick N. Cooper (215) 938-8312
August 4, 2005 fcooper@tollbrothersinc.com
Joseph R. Sicree (215) 938-8045
jsicree@tollbrothersinc.com
TOLL BROTHERS' RECORD FY 2005 3RD QTR HOME BLDG REVENUES RISE 55%
TO $1.54 BILLION
RECORD 3RD QTR-END BACKLOG GROWS 48% TO $6.43 BILLION
RECORD 3RD QTR CONTRACTS INCREASE 19% TO $1.92 BILLION
Horsham, PA, August 4, 2005 -- Toll Brothers, Inc., (NYSE:TOL)
(www.tollbrothers.com), the nation's leading builder of luxury homes, today
reported record third-quarter and nine-month results for home building revenues,
backlog and contracts for the period ended July 31, 2005. The value of the
Company's third-quarter backlog and revenues were the highest for any quarter in
its history.
These results are preliminary and unaudited. The Company will announce final
totals when it releases third-quarter earnings results on August 25, 2005.
Robert I. Toll, chairman and chief executive officer, stated: "With revenues at
nine months running 57% ahead of last year's record total, we remain on track
with our previous projection of approximately 70% net income growth in FY 2005.
With more than 60% of FY 2006's projected deliveries already in our backlog, we
continue to believe that net income in FY 2006 should be approximately 20%
higher than in FY 2005.
"We ended this quarter with 230 selling communities and expect to end fiscal
2005 with approximately 237 compared to 220 at FYE 2004. We project we'll reach
about 265 selling communities by FYE 2006: Assuming continued healthy demand, we
believe this should put us on track for approximately 20% net income growth in
FY 2007 over FY 2006.
"Demand for our luxury homes remains strong. Since FY 2000 we have more than
tripled our contracts, as tremendous demographics, increasing affluence, product
diversification and geographic expansion continue to fuel our growth.
"With buyer appetite so healthy, approximately one-third of our communities now
have backlogs stretching out twelve months. Therefore, in a number of
communities, we've chosen to hold off taking new home sale contracts rather than
lock in sales prices today for deliveries more than a year away. Instead of
selling out communities too quickly, we've chosen to ration our supply to
maximize profit.
*more*
"In addition to the contracts discussed above, this quarter we signed $63
million of contracts at two of our urban high-rise joint ventures in Hoboken,
New Jersey on the Hudson River overlooking the Manhattan skyline. With demand so
strong at both Hudson Tea, a 525-unit condo conversion, and at Maxwell Place,
where we have just started construction of the first 169-unit tower, we have
been able to continually raise prices. We expect to begin delivering units at
Hudson Tea in late fiscal 2005, and in the first building at Maxwell Place in
late fiscal 2006.
"Joint venture contract totals are reported separately under unconsolidated
entities. Toll Brothers' share of the profits from joint ventures are reported
as `Equity Earnings in Unconsolidated Entities'.
"With other urban and waterfront high-rise condominiums in our pipeline, we
project a stream of profits from this growing line of business."
Joel H. Rassman, chief financial officer, stated: "We delivered 2,310 homes this
quarter, which was slightly above our most recent range of guidance. Based on
our nine month results, we now believe we will deliver between 8,300 and 8,500
homes in FY 2005, compared to 8,100 to 8,400 homes in our previous guidance.
"We currently control approximately 77,000 lots, compared to 61,250 one year
ago, and continue to see attractive land buying opportunities in most markets.
We believe our lot position in affluent locations, which represents a
five-to-six year supply based on our historic pace of growth, positions us well
for the future."
Toll Brothers' preliminary financial highlights for the three-month and
nine-month periods ended July 31, 2005 (unaudited):
o The Company's FY 2005 third-quarter contracts of approximately $1.92
billion (2,746 homes), grew by 19% over FY 2004's third-quarter
contracts of $1.61 billion (2,329 homes), the previous third-quarter
record. In addition, in third quarter 2005, unconsolidated entities in
which the Company had an interest signed contracts of approximately
$63.4 million (111 homes).
o FY 2005's nine-month contracts of approximately $5.57 billion (8,100
homes), grew by 35% over FY 2004's total of $4.11 billion (6,436
homes), the previous nine-month record. In addition, in the nine-month
FY 2005 period, unconsolidated entities in which the Company had an
interest signed contracts of approximately $164.1 million (270 homes).
o FY 2005 third quarter-end backlog of approximately $6.43 billion (9,490
homes), the highest for any quarter in the Company's history, increased
48% over FY 2004's third-quarter-end backlog of $4.35 billion (6,856
homes), the previous third-quarter record. In addition, at the end of
third quarter 2005, unconsolidated entities in which the Company had an
interest had a backlog of approximately $149.4 million (237 homes).
*more*
o FY 2005 third-quarter home building revenues of approximately $1.54
billion (2,310 homes), the highest for any quarter in the Company's
history, increased 55% over FY 2004's third-quarter home building
revenues of $991.3 million (1,684 homes), the previous third-quarter
record. Revenues from land sales totaled approximately $10.5 million
for FY 2005's third quarter, compared to $12.9 million in FY 2004's
third quarter.
o FY 2005 nine-month home building revenues of approximately $3.75
billion (5,812 homes) increased 57% over FY 2004's nine-month home
building revenues of $2.40 billion (4,232 homes), the previous
nine-month record. FY 2005 revenues from land sales for the nine-month
period totaled approximately $21.5 million, compared to $20.9 million
in the same period in FY 2004.
o In addition, in the Company's fiscal 2005 third-quarter and nine-month
periods, unconsolidated entities in which the Company had an interest
delivered approximately $25.7 million (57 homes) and $90.6 million (207
homes), respectively, compared to $12.1 million (30 homes) and $15.5
million (41 homes), respectively, in the same periods of fiscal 2004.
The Company's share of the profits from the delivery of these homes is
included in `Equity Earnings in Unconsolidated Entities' on the
Company's Income Statement.
o The Company's guidance of 8,300 to 8,500 projected deliveries for FY
2005 does not include approximately 100 anticipated deliveries
associated with the Company's recent acquisition of Landstar Homes'
Central Florida Division, for which, due to acquisition accounting,
profits will be minimal.
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. (EDT) today, August 4, 2005,
to discuss these results and our outlook for fiscal 2005. 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 August 24, 2005.
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 20 states: Arizona, California, Colorado,
Connecticut, Delaware, Florida, Illinois, Massachusetts, Maryland, Michigan,
Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Rhode
Island, South Carolina, Texas, and Virginia.
*more*
Toll Brothers builds luxury single-family detached and attached home
communities, master planned luxury residential resort-style golf communities and
urban low, mid- and high-rise 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, a FORTUNE 500 Company, 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 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*
#S ARE PRELIMINARY
THREE MONTHS ENDED JULY 31, UNITS $ (MILL)
3RD QTR. 3RD QTR. 3RD QTR. 3RD QTR.
CLOSINGS 2005 2004 2005 2004
- ------------------------------- ---------- ---------- --------- ---------
NORTHEAST
(CT, MA, NH, NJ, NY, RI) 310 256 183.7 149.8
MID-ATLANTIC (DE, MD, PA, VA) 886 616 554.4 314.4
MIDWEST (IL, MI, OH) 178 136 110.7 74.4
SOUTHEAST (FL, NC, SC) 236 205 139.5 97.9
SOUTHWEST (AZ, CO, NV, TX) 361 205 240.6 124.7
WEST COAST (CA) 339 266 309.2 230.1
----- ----- ------- -------
2,310 1,684 1,538.1 991.3
UNCONSOLIDATED ENTITIES 57 30 25.7 12.1
----- ----- ------- -------
2,367 1,714 1,563.8 1,003.4
===== ===== ======= =======
CONTRACTS
- -------------------------------
NORTHEAST
(CT, MA, NH, NJ, NY, RI) 459 270 294.8 155.4
MID-ATLANTIC (DE, MD, PA, VA) 758 748 522.9 473.8
MIDWEST (IL, MI, OH) 149 164 108.4 105.9
SOUTHEAST (FL, NC, SC) 606 361 360.5 229.5
SOUTHWEST (AZ, CO, NV, TX) 544 455 393.0 300.0
WEST COAST (CA) 230 331 238.2 341.6
----- ----- ------- -------
2,746 2,329 1,917.8 1,606.2
UNCONSOLIDATED ENTITIES 111 188 63.4 79.1
----- ----- ------- -------
2,857 2,517 1,981.2 1,685.3
===== ===== ======= =======
BACKLOG
- -------------------------------
NORTHEAST
(CT, MA, NH, NJ, NY, RI) 1,508 1,051 966.5 596.1
MID-ATLANTIC (DE, MD, PA, VA) 2,639 2,305 1,750.8 1,320.6
MIDWEST (IL, MI, OH) 505 458 358.3 279.2
SOUTHEAST (FL, NC, SC) 2,081 696 1,150.1 421.5
SOUTHWEST (AZ, CO, NV, TX) 1,926 1,278 1,315.1 774.7
WEST COAST (CA) 831 1,068 893.0 953.7
----- ----- ------- -------
9,490 6,856 6,433.8 4,345.8
UNCONSOLIDATED ENTITIES 237 172 149.4 71.4
----- ----- ------- -------
9,727 7,028 6,583.2 4,417.2
===== ===== ======= =======
*more*
#S ARE PRELIMINARY
NINE MONTHS ENDED JULY 31, UNITS $ (MILL)
9 MONTHS 9 MONTHS 9 MONTHS 9 MONTHS
CLOSINGS 2005 2004 2005 2004
- ------------------------------- ---------- ---------- --------- ---------
NORTHEAST
(CT, MA, NH, NJ, NY, RI) 793 655 447.3 379.1
MID-ATLANTIC (DE, MD, PA, VA) 2,308 1,555 1,400.0 789.9
MIDWEST (IL, MI, OH) 414 307 256.8 174.0
SOUTHEAST (FL, NC, SC, TN) 588 518 329.3 243.0
SOUTHWEST (AZ, CO, NV, TX) 914 544 585.3 313.9
WEST COAST (CA) 795 653 734.5 495.3
----- ----- ------- -------
5,812 4,232 3,753.2 2,395.2
UNCONSOLIDATED ENTITIES 207 41 90.6 15.5
----- ----- ------- -------
6,019 4,273 3,843.8 2,410.7
===== ===== ======= =======
CONTRACTS
- -------------------------------
NORTHEAST
(CT, MA, NH, NJ, NY, RI) 1,273 774 814.3 455.8
MID-ATLANTIC (DE, MD, PA, VA) 2,702 2,186 1,778.5 1,273.5
MIDWEST (IL, MI, OH) 473 471 330.8 289.9
SOUTHEAST (FL, NC, SC,TN) 1,450 803 828.3 446.3
SOUTHWEST (AZ, CO, NV, TX) 1,489 1,113 1,050.7 691.8
WEST COAST (CA) 713 1,089 762.9 951.8
----- ----- ------- -------
8,100 6,436 5,565.5 4,109.1
UNCONSOLIDATED ENTITIES 270 198 164.1 82.2
----- ----- ------- -------
8,370 6,634 5,729.6 4,191.3
===== ===== ======= =======
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