Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s
leading builder of luxury homes, today announced results for its
second quarter ended April 30, 2024.
FY 2024’s Second Quarter Financial
Highlights (Compared to FY 2023’s Second
Quarter):
- Net income and
earnings per share were $481.6 million and $4.55 per diluted share,
compared to net income of $320.2 million and $2.85 per diluted
share in FY 2023’s second quarter.
- Net income and
earnings per share included $124.1 million and $1.17, respectively,
related to the sale of a parcel of land to a commercial developer.
Excluding these gains, net income and earnings per share were
$357.5 million and $3.38 per diluted share in FY 2024’s second
quarter.
- Pre-tax income
was $649.8 million, compared to $430.6 million in FY 2023’s second
quarter.
- Home sales
revenues were $2.65 billion, up 6% compared to FY 2023’s second
quarter; delivered homes were 2,641, also up 6%.
- Net signed
contract value was $2.94 billion, up 29% compared to FY 2023’s
second quarter; contracted homes were 3,041, up 30%.
- Backlog value
was $7.38 billion at second quarter end, down 12% compared to FY
2023’s second quarter; homes in backlog were 7,093, down 6%.
- Home sales gross
margin was 25.8%, compared to FY 2023’s second quarter home sales
gross margin of 26.4%.
- Adjusted home
sales gross margin, which excludes interest and inventory
write-downs, was 28.2%, compared to FY 2023’s second quarter
adjusted home sales gross margin of 28.3%.
- SG&A, as a
percentage of home sales revenues, was 9.0%, compared to 9.1% in FY
2023’s second quarter.
- Income from
operations was $623.5 million.
- Other income,
income from unconsolidated entities, and gross margin from land
sales and other was $203.7 million, which includes $175.2 million
from the land sale referred to above.
Douglas C. Yearley, Jr., chairman and chief
executive officer, stated: “We are very pleased with our second
quarter results. We delivered 2,641 homes at an average price of
$1.0 million, generating home sales revenues of $2.65 billion, a 6%
increase compared to last year’s second quarter. Our adjusted gross
margin was 28.2%, 60 basis points better than guidance, and our
SG&A expense, as a percentage of home sales revenues was 9.0%,
70 basis points better than guidance. These strong home building
results, together with a previously disclosed $175 million pre-tax
land sale gain, contributed to record second quarter earnings of
$4.55 per diluted share, up 60% compared to last year. In addition,
we signed 3,041 net contracts for $2.9 billion in the quarter, up
30% in units and 29% in dollars compared to the second quarter of
2023. Based on these outstanding results, and with continued solid
demand as we start our third quarter, we are increasing our full
year revenue and earnings guidance. We now expect to earn
approximately $14.00 per diluted share in fiscal 2024 with a return
on beginning equity of approximately 22%.
“Demand for new homes continues to be driven by
a resilient economy, favorable demographics and a lack of supply
that reflects both the chronic underproduction of housing in the
U.S. and the historically low levels of resale inventory caused by
the lock-in effect of higher rates. Our strategy of widening our
price points to include more affordable luxury homes and increasing
our supply of spec homes has helped us grow market share. It also
enables us to reduce cycle times, improve inventory turns and
leverage our fixed costs, driving revenue growth and higher
operating margins. With these strategies firmly in place and
producing results, and with our more capital efficient land
strategy, we are confident that we can continue to generate
attractive returns well into the future.
“We have a healthy balance sheet with low net
debt and ample liquidity, and we continue to generate significant
operating cash flows. In the second quarter, we repurchased $181
million of common stock and increased our quarterly dividend by
10%. Our solid financial position, more efficient operations and
strong cash flow generation should allow us to continue investing
in growth while also returning cash to stockholders.”
Third
Quarter and FY 2024 Financial Guidance: |
|
Third Quarter |
|
Full Fiscal Year 2024 |
Deliveries |
2,750 to 2,850 units |
|
10,400 to 10,800 units |
Average Delivered Price per
Home |
$950,000 - $960,000 |
|
$960,000 - $970,000 |
Adjusted Home Sales Gross Margin |
27.7% |
|
28.0% |
SG&A, as a Percentage of
Home Sales Revenues |
9.2% |
|
9.6% |
Period-End Community
Count |
400 |
|
410 |
Other Income, Income from
Unconsolidated Entities, and Gross Margin from Land Sales and
Other |
$— |
|
$260 million |
Tax Rate |
26.0% |
|
25.5% |
Financial
Highlights for the three months ended April 30, 2024 and 2023
(unaudited): |
|
2024 |
|
2023 |
Net Income |
$481.6 million, or $4.55 per share diluted |
|
$320.2 million, or $2.85 per share diluted |
Pre-Tax Income |
$649.8 million |
|
$430.6 million |
Pre-Tax Inventory Impairments
included in Home Sales Costs of Revenues |
$28.4 million |
|
$11.1 million |
Home Sales Revenues |
$2.65 billion and 2,641 units |
|
$2.49 billion and 2,492 units |
Net Signed Contracts |
$2.94 billion and 3,041 units |
|
$2.28 billion and 2,333 units |
Net Signed Contracts per
Community |
8.0 units |
|
7.0 units |
Quarter-End Backlog |
$7.38 billion and 7,093 units |
|
$8.38 billion and 7,574 units |
Average Price per Home in
Backlog |
$1,040,200 |
|
$1,105,900 |
Home Sales Gross Margin |
25.8% |
|
26.4% |
Adjusted Home Sales Gross
Margin |
28.2% |
|
28.3% |
Interest Included in Home Sales
Cost of Revenues, as a percentage of Home Sales Revenues |
1.3% |
|
1.5% |
SG&A, as a percentage of Home
Sales Revenues |
9.0% |
|
9.1% |
Income from Operations |
$623.5 million, or 22.0% of total revenues |
|
$425.7 million, or 17.0% of total revenues |
Other Income, Income from
Unconsolidated Entities, and Gross Margin from Land Sales and
Other |
$203.7 million |
|
$0.9 million |
Pre-Tax Land and Other
Impairments included in Land Sales and Other Costs of Revenues |
$0.6 million |
|
$4.7 million |
Quarterly Cancellations as a
Percentage of Beginning-Quarter Backlog |
2.8% |
|
3.9% |
Quarterly Cancellations as a
Percentage of Signed Contracts in Quarter |
5.7% |
|
11.5% |
Financial
Highlights for the six months ended April 30, 2024 and 2023
(unaudited): |
|
2024 |
|
2023 |
Net Income |
$721.2 million, or $6.80 per share diluted |
|
$511.7 million, or $4.56 per share diluted |
Pre-Tax Income |
$960.9 million |
|
$684.4 million |
Pre-Tax Inventory Impairments
included in Home Sales Costs of Revenues |
$29.9 million |
|
$19.1 million |
Home Sales Revenues |
$4.58 billion and 4,568 units |
|
$4.24 billion and 4,318 units |
Net Signed Contracts |
$5.01 billion and 5,083 units |
|
$3.73 billion and 3,794 units |
Home Sales Gross Margin |
26.6% |
|
26.1% |
Adjusted Home Sales Gross
Margin |
28.5% |
|
28.0% |
Interest Included in Home Sales
Cost of Revenues, as a percentage of Home Sales Revenues |
1.3% |
|
1.5% |
SG&A, as a percentage of Home
Sales Revenues |
10.2% |
|
10.4% |
Income from Operations |
$931.9 million, or 19.5% of total revenues |
|
$651.0 million, or 15.2% of total revenues |
Other Income, Income from
Unconsolidated Entities, and Gross Margin from Land Sales and
Other |
$212.3 million |
|
$17.7 million |
Pre-Tax Land and Other
Impairments included in Land Sales and Other Costs of Revenues |
$0.6 million |
|
$17.7 million |
|
|
|
|
Additional Information:
- The Company
ended its FY 2024 second quarter with approximately $1.03 billion
in cash and cash equivalents, compared to $1.30 billion at FYE 2023
and $754.8 million at FY 2024’s first quarter end. At FY 2024
second quarter end, the Company also had $1.7 billion available
under its $1.9 billion revolving credit facility, which is
scheduled to mature in February 2028.
- On March 12,
2024, the Company announced a 10% increase in its quarterly cash
dividend from $0.21 to $0.23 per share. On April 19, 2024, the
Company paid its quarterly dividend of $0.23 per share to
shareholders of record at the close of business on April 5,
2024.
- Stockholders’
Equity at FY 2024 second quarter end was $7.31 billion, compared to
$6.80 billion at FYE 2023.
- FY 2024’s second
quarter-end book value per share was $70.98 per share, compared to
$65.49 at FYE 2023.
- The Company
ended its FY 2024’s second quarter with a debt-to-capital ratio of
28.0%, compared to 28.0% at FY 2024’s first quarter end and 29.6%
at FYE 2023. The Company ended FY 2024’s second quarter with a net
debt-to-capital ratio(1) of 18.7%, compared to 21.4% at FY 2024’s
first quarter end, and 17.7% at FYE 2023.
- The Company
ended FY 2024’s second quarter with approximately 71,800 lots owned
and optioned, compared to 70,400 one quarter earlier, and 71,300
one year earlier. Approximately 52% or 37,000, of these lots were
owned, of which approximately 18,500 lots, including those in
backlog, were substantially improved.
- In the second
quarter of FY 2024, the Company spent approximately $472.0 million
on land to purchase approximately 3,470 lots.
- The Company
ended FY 2024’s second quarter with 386 selling communities,
compared to 377 at FY 2024’s first quarter end and 350 at FY 2023’s
second quarter end.
- The Company
repurchased approximately 1.5 million shares at an average
price of $120.60 per share for a total purchase price of
approximately $181.2 million.
(1) See “Reconciliation of
Non-GAAP Measures” below for more information on the calculation of
the Company’s net debt-to-capital ratio.
Toll Brothers will be broadcasting live via the
Investor Relations section of its website,
investors.TollBrothers.com, a conference call hosted by chairman
and chief executive officer Douglas C. Yearley, Jr. at 8:30 a.m.
(ET) Wednesday, May 22, 2024, to discuss these results and its
outlook for the third quarter and FY 2024. To access the call,
enter the Toll Brothers website, click on the Investor Relations
page, and select “Events & Presentations.” 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 online replay
which will follow.
ABOUT TOLL BROTHERS
Toll Brothers, Inc., a Fortune 500 Company, is
the nation’s leading builder of luxury homes. The Company was
founded 57 years ago in 1967 and became a public company in 1986.
Its common stock is listed on the New York Stock Exchange under the
symbol “TOL.” The Company serves first-time, move-up, empty-nester,
active-adult, and second-home buyers, as well as urban and suburban
renters. Toll Brothers builds in over 60 markets in 24 states:
Arizona, California, Colorado, Connecticut, Delaware, Florida,
Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan,
Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania,
South Carolina, Tennessee, Texas, Utah, Virginia, and Washington,
as well as in the District of Columbia. The Company operates its
own architectural, engineering, mortgage, title, land development,
insurance, smart home technology, and landscape subsidiaries. The
Company also develops master-planned and golf course communities as
well as operates its own lumber distribution, house component
assembly, and manufacturing operations.
In 2024, Toll Brothers marked 10 years in a row
being named to the Fortune World’s Most Admired Companies™ list.
Toll Brothers has also been named Builder of the Year by Builder
magazine and is the first two-time recipient of Builder of the Year
from Professional Builder magazine. For more information visit
TollBrothers.com.
Toll Brothers discloses information about its
business and financial performance and other matters, and provides
links to its securities filings, notices of investor events, and
earnings and other news releases, on the Investor Relations section
of its website (investors.TollBrothers.com).
From Fortune, ©2024 Fortune Media IP Limited.
All rights reserved. Used under license.
FORWARD-LOOKING STATEMENTS
Information presented herein for the second
quarter ended April 30, 2024 is subject to finalization of the
Company’s regulatory filings, related financial and accounting
reporting procedures and external auditor procedures.
This release contains or may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. One can identify these
statements by the fact that they do not relate to matters of a
strictly historical or factual nature and generally discuss or
relate to future events. These statements contain words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe,” “may,” “can,” “could,” “might,” “should,” “likely,”
“will,” and other words or phrases of similar meaning. Such
statements may include, but are not limited to, information and
statements regarding: expectations regarding inflation and interest
rates; the markets in which we operate or may operate; our
strategic priorities; our land acquisition, land development and
capital allocation priorities; market conditions; demand for our
homes; our build-to-order and spec home strategy; anticipated
operating results and guidance; home deliveries; financial
resources and condition; changes in revenues; changes in
profitability; changes in margins; changes in accounting treatment;
cost of revenues, including expected labor and material costs;
selling, general, and administrative expenses; interest expense;
inventory write-downs; home warranty and construction defect
claims; unrecognized tax benefits; anticipated tax refunds; sales
paces and prices; effects of home buyer cancellations; growth and
expansion; joint ventures in which we are involved; anticipated
results from our investments in unconsolidated entities; our
ability to acquire or dispose of land and pursue real estate
opportunities; our ability to gain approvals and open new
communities; our ability to market, construct and sell homes and
properties; our ability to deliver homes from backlog; our ability
to secure materials and subcontractors; our ability to produce the
liquidity and capital necessary to conduct normal business
operations or to expand and take advantage of opportunities; and
the outcome of legal proceedings, investigations, and claims.
Any or all of the forward-looking statements
included in this release are not guarantees of future performance
and may turn out to be inaccurate. This can occur as a result of
incorrect assumptions or as a consequence of known or unknown risks
and uncertainties. The major risks and uncertainties – and
assumptions that are made – that affect our business and may cause
actual results to differ from these forward-looking statements
include, but are not limited to:
- the effect of
general economic conditions, including employment rates, housing
starts, inflation rates, interest and mortgage rates, availability
of financing for home mortgages and strength of the U.S.
dollar;
- market demand
for our products, which is related to the strength of the various
U.S. business segments and U.S. and international economic
conditions;
- the availability
of desirable and reasonably priced land and our ability to control,
purchase, hold and develop such land;
- access to
adequate capital on acceptable terms;
- geographic
concentration of our operations;
- levels of
competition;
- the price and
availability of lumber, other raw materials, home components and
labor;
- the effect of
U.S. trade policies, including the imposition of tariffs and duties
on home building products and retaliatory measures taken by other
countries;
- the effects of
weather and the risk of loss from earthquakes, volcanoes, fires,
floods, droughts, windstorms, hurricanes, pest infestations and
other natural disasters, and the risk of delays, reduced consumer
demand, unavailability of insurance, and shortages and price
increases in labor or materials associated with such natural
disasters;
- risks arising
from acts of war, terrorism or outbreaks of contagious diseases,
such as Covid-19;
- federal and
state tax policies;
- transportation
costs;
- the effect of
land use, environment and other governmental laws and
regulations;
- legal
proceedings or disputes and the adequacy of reserves;
- risks relating
to any unforeseen changes to or effects on liabilities, future
capital expenditures, revenues, expenses, earnings, indebtedness,
financial condition, losses and future prospects;
- the effect of
potential loss of key management personnel;
- changes in
accounting principles;
- risks related to
unauthorized access to our computer systems, theft of our and our
homebuyers’ confidential information or other forms of
cyber-attack; and
- other factors
described in “Risk Factors” included in our Annual Report on Form
10-K for the year ended October 31, 2023 and in subsequent filings
we make with the Securities and Exchange Commission (“SEC”).
Many of the factors mentioned above or in other
reports or public statements made by us will be important in
determining our future performance. Consequently, actual results
may differ materially from those that might be anticipated from our
forward-looking statements.
Forward-looking statements speak only as of the
date they are made. We undertake no obligation to publicly update
any forward-looking statements, whether as a result of new
information, future events, or otherwise.
For a further discussion of factors that we
believe could cause actual results to differ materially from
expected and historical results, see the information under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our most
recent Annual Report on Form 10-K filed with the SEC and in
subsequent reports filed with the SEC. This discussion is provided
as permitted by the Private Securities Litigation Reform Act of
1995, and all of our forward-looking statements are expressly
qualified in their entirety by the cautionary statements contained
or referenced in this section.
|
TOLL BROTHERS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands) |
|
|
April 30,2024 |
|
October 31,2023 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
1,030,530 |
|
|
$ |
1,300,068 |
|
Inventory |
|
9,926,939 |
|
|
|
9,057,578 |
|
Property, construction and
office equipment - net |
|
321,166 |
|
|
|
323,990 |
|
Receivables, prepaid expenses
and other assets |
|
724,399 |
|
|
|
691,256 |
|
Mortgage loans held for
sale |
|
136,346 |
|
|
|
110,555 |
|
Customer deposits held in
escrow |
|
108,521 |
|
|
|
84,530 |
|
Investments in unconsolidated
entities |
|
1,002,458 |
|
|
|
959,041 |
|
|
$ |
13,250,359 |
|
|
$ |
12,527,018 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Liabilities: |
|
|
|
Loans payable |
$ |
1,113,126 |
|
|
$ |
1,164,224 |
|
Senior notes |
|
1,596,644 |
|
|
|
1,596,185 |
|
Mortgage company loan facility |
|
127,541 |
|
|
|
100,058 |
|
Customer deposits |
|
542,877 |
|
|
|
540,718 |
|
Accounts payable |
|
694,422 |
|
|
|
597,582 |
|
Accrued expenses |
|
1,636,722 |
|
|
|
1,548,781 |
|
Income taxes payable |
|
214,833 |
|
|
|
166,268 |
|
Total liabilities |
|
5,926,165 |
|
|
|
5,713,816 |
|
|
|
|
|
Equity: |
|
|
|
Stockholders’ Equity |
|
|
|
Common stock, 112,937 shares issued at April 30, 2024 and October
31, 2023 |
|
1,129 |
|
|
|
1,129 |
|
Additional paid-in capital |
|
689,259 |
|
|
|
698,548 |
|
Retained earnings |
|
7,350,235 |
|
|
|
6,675,719 |
|
Treasury stock, at cost — 9,974 and 9,146 shares at April 30, 2024
and October 31, 2023, respectively |
|
(772,476 |
) |
|
|
(619,150 |
) |
Accumulated other comprehensive income |
|
39,827 |
|
|
|
40,910 |
|
Total stockholders’ equity |
|
7,307,974 |
|
|
|
6,797,156 |
|
Noncontrolling interest |
|
16,220 |
|
|
|
16,046 |
|
Total equity |
|
7,324,194 |
|
|
|
6,813,202 |
|
|
$ |
13,250,359 |
|
|
$ |
12,527,018 |
|
|
TOLL BROTHERS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except per share
data and percentages)(Unaudited) |
|
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
$ |
% |
|
$ |
% |
|
$ |
% |
|
$ |
% |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Home sales |
$ |
2,647,020 |
|
|
|
$ |
2,490,098 |
|
|
|
$ |
4,578,856 |
|
|
|
$ |
4,239,520 |
|
|
Land sales and other |
|
190,466 |
|
|
|
|
16,881 |
|
|
|
|
206,478 |
|
|
|
|
47,628 |
|
|
|
|
2,837,486 |
|
|
|
|
2,506,979 |
|
|
|
|
4,785,334 |
|
|
|
|
4,287,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
Home sales |
|
1,963,283 |
|
74.2 |
% |
|
|
1,832,878 |
|
73.6 |
% |
|
|
3,362,509 |
|
73.4 |
% |
|
|
3,133,801 |
|
73.9 |
% |
Land sales and other |
|
12,979 |
|
6.8 |
% |
|
|
20,850 |
|
123.5 |
% |
|
|
23,140 |
|
11.2 |
% |
|
|
63,285 |
|
132.9 |
% |
|
|
1,976,262 |
|
|
|
|
1,853,728 |
|
|
|
|
3,385,649 |
|
|
|
|
3,197,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - home sales |
|
683,737 |
|
25.8 |
% |
|
|
657,220 |
|
26.4 |
% |
|
|
1,216,347 |
|
26.6 |
% |
|
|
1,105,719 |
|
26.1 |
% |
Gross margin - land sales and
other |
|
177,487 |
|
93.2 |
% |
|
|
(3,969 |
) |
(23.5 |
)% |
|
|
183,338 |
|
88.8 |
% |
|
|
(15,657 |
) |
(32.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
237,698 |
|
9.0 |
% |
|
|
227,537 |
|
9.1 |
% |
|
|
467,744 |
|
10.2 |
% |
|
|
439,034 |
|
10.4 |
% |
Income from operations |
|
623,526 |
|
|
|
|
425,714 |
|
|
|
|
931,941 |
|
|
|
|
651,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated entities |
|
5,887 |
|
|
|
|
(5,302 |
) |
|
|
|
(3,285 |
) |
|
|
|
(9,735 |
) |
|
Other income - net |
|
20,366 |
|
|
|
|
10,180 |
|
|
|
|
32,284 |
|
|
|
|
43,095 |
|
|
Income before income
taxes |
|
649,779 |
|
|
|
|
430,592 |
|
|
|
|
960,940 |
|
|
|
|
684,388 |
|
|
Income tax provision |
|
168,162 |
|
|
|
|
110,376 |
|
|
|
|
239,765 |
|
|
|
|
172,642 |
|
|
Net income |
$ |
481,617 |
|
|
|
$ |
320,216 |
|
|
|
$ |
721,175 |
|
|
|
$ |
511,746 |
|
|
Per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
4.60 |
|
|
|
$ |
2.88 |
|
|
|
$ |
6.87 |
|
|
|
$ |
4.60 |
|
|
Diluted earnings |
$ |
4.55 |
|
|
|
$ |
2.85 |
|
|
|
$ |
6.80 |
|
|
|
$ |
4.56 |
|
|
Cash dividend declared |
$ |
0.23 |
|
|
|
$ |
0.21 |
|
|
|
$ |
0.44 |
|
|
|
$ |
0.41 |
|
|
Weighted-average number of
shares: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
104,794 |
|
|
|
|
111,214 |
|
|
|
|
104,958 |
|
|
|
|
111,306 |
|
|
Diluted |
|
105,803 |
|
|
|
|
112,184 |
|
|
|
|
106,034 |
|
|
|
|
112,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
25.9 |
% |
|
|
|
25.6 |
% |
|
|
|
25.0 |
% |
|
|
|
25.2 |
% |
|
|
TOLL BROTHERS, INC. AND
SUBSIDIARIESSUPPLEMENTAL
DATA(Amounts in
thousands)(unaudited) |
|
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Inventory impairments and
write-offs included in home sales cost of revenues: |
|
|
|
|
|
|
|
Pre-development costs and option write offs |
$ |
1,288 |
|
$ |
5,844 |
|
$ |
2,759 |
|
$ |
8,448 |
Land owned for future communities |
|
— |
|
|
325 |
|
|
— |
|
|
325 |
Land owned for operating communities |
|
27,140 |
|
|
4,900 |
|
|
27,140 |
|
|
10,300 |
|
$ |
28,428 |
|
$ |
11,069 |
|
$ |
29,899 |
|
$ |
19,073 |
|
|
|
|
|
|
|
|
Land and other impairments
included in land sales and other cost of revenues |
$ |
600 |
|
$ |
4,700 |
|
$ |
600 |
|
$ |
17,700 |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
$ |
19,590 |
|
$ |
18,611 |
|
$ |
35,283 |
|
$ |
34,093 |
Interest incurred |
$ |
27,405 |
|
$ |
33,581 |
|
$ |
56,164 |
|
$ |
66,628 |
Interest expense: |
|
|
|
|
|
|
|
Charged to home sales cost of revenues |
$ |
34,740 |
|
$ |
37,558 |
|
$ |
58,318 |
|
$ |
62,638 |
Charged to land sales and other cost of revenues |
|
726 |
|
|
1,350 |
|
|
1,020 |
|
|
4,827 |
|
$ |
35,466 |
|
$ |
38,908 |
|
$ |
59,338 |
|
$ |
67,465 |
|
|
|
|
|
|
|
|
Home sites controlled: |
|
|
|
|
April 30,2024 |
|
April 30,2023 |
Owned |
|
|
|
|
|
36,985 |
|
|
36,348 |
Optioned |
|
|
|
|
|
34,779 |
|
|
34,947 |
|
|
|
|
|
|
71,764 |
|
|
71,295 |
|
|
|
|
|
|
|
|
|
|
Inventory at April 30, 2024 and October 31, 2023
consisted of the following (amounts in thousands):
|
April 30,2024 |
|
October 31,2023 |
Land deposits and costs of future communities |
$ |
509,981 |
|
$ |
549,035 |
Land and land development
costs |
|
2,952,101 |
|
|
2,631,147 |
Land and land development
costs associated with homes under construction |
|
3,203,677 |
|
|
2,916,334 |
Total land and land
development costs |
|
6,665,759 |
|
|
6,096,516 |
|
|
|
|
Homes under construction |
|
2,782,555 |
|
|
2,515,484 |
Model homes (1) |
|
478,625 |
|
|
445,578 |
|
$ |
9,926,939 |
|
$ |
9,057,578 |
(1) Includes the allocated land
and land development costs associated with each of our model homes
in operation.
Toll Brothers operates in the following five
geographic segments, with current operations generally located in
the states listed below:
- North: Connecticut,
Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York
and Pennsylvania
- Mid-Atlantic: Georgia, Maryland,
North Carolina, Tennessee and Virginia
- South: Florida, South Carolina and
Texas
- Mountain: Arizona, Colorado, Idaho, Nevada and Utah
- Pacific: California, Oregon and Washington
|
|
|
Three Months Ended April 30, |
|
Units |
|
$ (Millions) |
|
Average Price Per Unit $ |
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
North |
349 |
|
408 |
|
$ |
335.2 |
|
|
$ |
381.3 |
|
|
$ |
960,500 |
|
$ |
934,600 |
Mid-Atlantic |
378 |
|
274 |
|
|
376.1 |
|
|
|
309.6 |
|
|
$ |
995,000 |
|
$ |
1,129,900 |
South |
804 |
|
659 |
|
|
658.4 |
|
|
|
519.4 |
|
|
$ |
818,900 |
|
$ |
788,100 |
Mountain |
686 |
|
767 |
|
|
603.6 |
|
|
|
674.2 |
|
|
$ |
879,800 |
|
$ |
879,100 |
Pacific |
424 |
|
384 |
|
|
674.7 |
|
|
|
605.9 |
|
|
$ |
1,591,200 |
|
$ |
1,577,800 |
Home Building |
2,641 |
|
2,492 |
|
|
2,648.0 |
|
|
|
2,490.4 |
|
|
$ |
1,002,600 |
|
$ |
999,300 |
Corporate and other |
|
|
|
|
|
(1.0 |
) |
|
|
(0.3 |
) |
|
|
|
|
Total home sales |
2,641 |
|
2,492 |
|
|
2,647.0 |
|
|
|
2,490.1 |
|
|
$ |
1,002,300 |
|
$ |
999,200 |
Land sales and other |
|
|
|
|
|
190.5 |
|
|
|
16.9 |
|
|
|
|
|
Total Consolidated |
|
|
|
|
$ |
2,837.5 |
|
|
$ |
2,507.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
North |
412 |
|
396 |
|
$ |
422.1 |
|
|
$ |
366.1 |
|
|
$ |
1,024,600 |
|
$ |
924,400 |
Mid-Atlantic |
376 |
|
316 |
|
|
348.9 |
|
|
|
325.4 |
|
|
$ |
928,000 |
|
$ |
1,029,700 |
South |
892 |
|
749 |
|
|
746.8 |
|
|
|
590.9 |
|
|
$ |
837,200 |
|
$ |
789,000 |
Mountain |
944 |
|
529 |
|
|
814.6 |
|
|
|
449.4 |
|
|
$ |
862,900 |
|
$ |
849,500 |
Pacific |
417 |
|
343 |
|
|
608.6 |
|
|
|
543.5 |
|
|
$ |
1,459,400 |
|
$ |
1,584,600 |
Total Consolidated |
3,041 |
|
2,333 |
|
$ |
2,941.0 |
|
|
$ |
2,275.3 |
|
|
$ |
967,100 |
|
$ |
975,300 |
|
|
|
|
|
|
|
|
|
|
|
|
BACKLOG |
|
|
|
|
|
|
|
|
|
|
|
North |
1,055 |
|
1,081 |
|
$ |
1,108.0 |
|
|
$ |
1,097.6 |
|
|
$ |
1,050,300 |
|
$ |
1,015,300 |
Mid-Atlantic |
912 |
|
969 |
|
|
900.8 |
|
|
|
1,052.3 |
|
|
$ |
987,700 |
|
$ |
1,085,900 |
South |
2,344 |
|
2,539 |
|
|
2,120.2 |
|
|
|
2,362.4 |
|
|
$ |
904,500 |
|
$ |
930,400 |
Mountain |
1,891 |
|
2,037 |
|
|
1,836.2 |
|
|
|
2,161.1 |
|
|
$ |
971,000 |
|
$ |
1,060,900 |
Pacific |
891 |
|
948 |
|
|
1,412.8 |
|
|
|
1,702.9 |
|
|
$ |
1,585,600 |
|
$ |
1,796,300 |
Total Consolidated |
7,093 |
|
7,574 |
|
$ |
7,378.0 |
|
|
$ |
8,376.3 |
|
|
$ |
1,040,200 |
|
$ |
1,105,900 |
|
Six Months Ended April 30, |
|
Units |
|
$ (Millions) |
|
Average Price Per Unit $ |
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
North |
638 |
|
765 |
|
$ |
607.9 |
|
|
$ |
704.1 |
|
|
$ |
952,800 |
|
$ |
920,400 |
Mid-Atlantic |
655 |
|
440 |
|
|
640.3 |
|
|
|
498.7 |
|
|
$ |
977,600 |
|
$ |
1,133,400 |
South |
1,435 |
|
1,148 |
|
|
1,191.3 |
|
|
|
912.3 |
|
|
$ |
830,200 |
|
$ |
794,700 |
Mountain |
1,171 |
|
1,315 |
|
|
1,056.9 |
|
|
|
1,154.4 |
|
|
$ |
902,600 |
|
$ |
877,900 |
Pacific |
669 |
|
650 |
|
|
1,083.7 |
|
|
|
970.6 |
|
|
$ |
1,619,900 |
|
$ |
1,493,200 |
Home Building |
4,568 |
|
4,318 |
|
|
4,580.1 |
|
|
|
4,240.1 |
|
|
$ |
1,002,600 |
|
$ |
982,000 |
Corporate and other |
|
|
|
|
|
(1.2 |
) |
|
|
(0.6 |
) |
|
|
|
|
Total home sales |
4,568 |
|
4,318 |
|
|
4,578.9 |
|
|
|
4,239.5 |
|
|
$ |
1,002,400 |
|
$ |
981,800 |
Land sales and other |
|
|
|
|
|
206.5 |
|
|
|
47.6 |
|
|
|
|
|
Total Consolidated |
|
|
|
|
$ |
4,785.3 |
|
|
$ |
4,287.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
North |
737 |
|
724 |
|
$ |
751.0 |
|
|
$ |
681.3 |
|
|
$ |
1,019,000 |
|
$ |
941,000 |
Mid-Atlantic |
622 |
|
567 |
|
|
587.6 |
|
|
|
589.5 |
|
|
$ |
944,700 |
|
$ |
1,039,700 |
South |
1,467 |
|
1,164 |
|
|
1,216.7 |
|
|
|
919.4 |
|
|
$ |
829,400 |
|
$ |
789,900 |
Mountain |
1,485 |
|
828 |
|
|
1,313.4 |
|
|
|
713.3 |
|
|
$ |
884,400 |
|
$ |
861,500 |
Pacific |
772 |
|
511 |
|
|
1,137.1 |
|
|
|
826.0 |
|
|
$ |
1,472,900 |
|
$ |
1,616,400 |
Total Consolidated |
5,083 |
|
3,794 |
|
$ |
5,005.8 |
|
|
$ |
3,729.5 |
|
|
$ |
984,800 |
|
$ |
983,000 |
Note: Due to rounding, amounts may not add.
Unconsolidated entities:
Information related to revenues and contracts of entities in
which we have an interest for the three-month and six-month periods
ended April 30, 2024 and 2023, and for backlog at
April 30, 2024 and 2023 is as follows:
|
Units |
|
$ (Millions) |
|
Average Price Per Unit $ |
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
Three months ended April
30, |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
40 |
|
3 |
|
$ |
40.9 |
|
|
$ |
8.6 |
|
|
$ |
1,021,400 |
|
$ |
2,864,500 |
Contracts |
33 |
|
29 |
|
$ |
43.9 |
|
|
$ |
37.3 |
|
|
$ |
1,328,900 |
|
$ |
1,286,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended April
30, |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
40 |
|
6 |
|
$ |
40.9 |
|
|
$ |
23.4 |
|
|
$ |
1,021,400 |
|
$ |
3,906,700 |
Contracts |
55 |
|
52 |
|
$ |
65.4 |
|
|
$ |
70.2 |
|
|
$ |
1,189,700 |
|
$ |
1,350,300 |
|
|
|
|
|
|
|
|
|
|
|
|
Backlog at April 30, |
164 |
|
127 |
|
$ |
184.5 |
|
|
$ |
143.4 |
|
|
$ |
1,125,200 |
|
$ |
1,128,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP MEASURES |
This press release contains, and Company
management’s discussion of the results presented in this press
release may include, information about the Company’s adjusted home
sales gross margin, adjusted net income, adjusted diluted earnings
per share and the Company’s net debt-to-capital ratio.
These four measures are non-GAAP financial
measures which are not calculated in accordance with generally
accepted accounting principles (“GAAP”). These non-GAAP financial
measures should not be considered a substitute for, or superior to,
the comparable GAAP financial measures, and may be different from
non-GAAP measures used by other companies in the home building
business.
The Company’s management considers these
non-GAAP financial measures as we make operating and strategic
decisions and evaluate our performance, including against other
home builders that may use similar non-GAAP financial measures. The
Company’s management believes these non-GAAP financial measures are
useful to investors in understanding our operations and leverage
and may be helpful in comparing the Company to other home builders
to the extent they provide similar information.
Adjusted Home Sales Gross Margin The following
table reconciles the Company’s home sales gross margin as a
percentage of home sales revenues (calculated in accordance with
GAAP) to the Company’s adjusted home sales gross margin (a non-GAAP
financial measure). Adjusted home sales gross margin is calculated
as (i) home sales gross margin plus interest recognized in home
sales cost of revenues plus inventory write-downs recognized in
home sales cost of revenues divided by (ii) home sales
revenues.
|
Adjusted Home Sales Gross Margin
Reconciliation(Amounts in thousands, except
percentages) |
|
|
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues - home
sales |
$ |
2,647,020 |
|
|
$ |
2,490,098 |
|
|
$ |
4,578,856 |
|
|
$ |
4,239,520 |
|
Cost of revenues -
home sales |
|
1,963,283 |
|
|
|
1,832,878 |
|
|
|
3,362,509 |
|
|
|
3,133,801 |
|
Home sales gross
margin |
|
683,737 |
|
|
|
657,220 |
|
|
|
1,216,347 |
|
|
|
1,105,719 |
|
Add: |
Interest recognized in cost of
revenues - home sales |
|
34,740 |
|
|
|
37,558 |
|
|
|
58,318 |
|
|
|
62,638 |
|
|
Inventory impairments and
write-offs in cost of revenues - home sales |
|
28,428 |
|
|
|
11,069 |
|
|
|
29,899 |
|
|
|
19,073 |
|
Adjusted home
sales gross margin |
$ |
746,905 |
|
|
$ |
705,847 |
|
|
$ |
1,304,564 |
|
|
$ |
1,187,430 |
|
|
|
|
|
|
|
|
|
|
Home sales gross
margin as a percentage of home sale revenues |
|
25.8 |
% |
|
|
26.4 |
% |
|
|
26.6 |
% |
|
|
26.1 |
% |
|
|
|
|
|
|
|
|
|
Adjusted home
sales gross margin as a percentage of home sale revenues |
|
28.2 |
% |
|
|
28.3 |
% |
|
|
28.5 |
% |
|
|
28.0 |
% |
|
|
The Company’s management believes adjusted home
sales gross margin is a useful financial measure to investors
because it allows them to evaluate the performance of our home
building operations without the often varying effects of
capitalized interest costs and inventory impairments. The use of
adjusted home sales gross margin also assists the Company’s
management in assessing the profitability of our home building
operations and making strategic decisions regarding community
location and product mix.
Forward-looking Adjusted Home Sales Gross
MarginThe Company has not provided projected third quarter and full
FY 2024 home sales gross margin or a GAAP reconciliation for
forward-looking adjusted home sales gross margin because such
measure cannot be provided without unreasonable efforts on a
forward-looking basis, since inventory write-downs are based on
future activity and observation and therefore cannot be projected
for the third quarter and full FY 2024. The variability of these
charges may have a potentially unpredictable, and potentially
significant, impact on our third quarter and full FY 2024 home
sales gross margin.
Adjusted Net Income and Diluted Earnings Per
Share ReconciliationThe following table reconciles the Company’s
net income and earnings per share (calculated in accordance with
GAAP) to the Company’s adjusted net income and diluted earnings per
share (a non-GAAP financial measure).
|
Adjusted Net Income and Diluted Per Share
Reconciliation(Amounts in thousands, except per
share data) |
|
|
|
Three Months Ended April 30, |
|
Six Months Ended April 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
Net income |
$ |
481,617 |
|
|
$ |
320,216 |
|
$ |
721,175 |
|
|
$ |
511,746 |
Subtract: |
Net income resulting from the
sale of a parcel of land to a commercial developer |
|
(124,119 |
) |
|
|
— |
|
|
(124,119 |
) |
|
|
— |
Adjusted net
income |
$ |
357,498 |
|
|
$ |
320,216 |
|
$ |
597,056 |
|
|
$ |
511,746 |
|
|
|
|
|
|
|
|
|
Diluted earnings
per share |
$ |
4.55 |
|
|
$ |
2.85 |
|
$ |
6.80 |
|
|
$ |
4.56 |
Subtract: |
Diluted earnings per share
resulting from the sale of a parcel of land to a commercial
developer |
|
(1.17 |
) |
|
|
— |
|
|
(1.17 |
) |
|
|
— |
Adjusted diluted
earnings per share |
$ |
3.38 |
|
|
$ |
2.85 |
|
$ |
5.63 |
|
|
$ |
4.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt-to-Capital RatioThe following table
reconciles the Company’s ratio of debt to capital (calculated in
accordance with GAAP) to the Company’s net debt-to-capital ratio (a
non-GAAP financial measure). The net debt-to-capital ratio is
calculated as (i) total debt minus mortgage warehouse loans minus
cash and cash equivalents divided by (ii) total debt minus mortgage
warehouse loans minus cash and cash equivalents plus stockholders’
equity.
|
Net Debt-to-Capital Ratio
Reconciliation(Amounts in thousands, except
percentages) |
|
|
|
April 30, 2024 |
|
January 31, 2024 |
|
October 31, 2023 |
Loans payable |
$ |
1,113,126 |
|
|
$ |
1,064,149 |
|
|
$ |
1,164,224 |
|
Senior notes |
|
1,596,644 |
|
|
|
1,596,414 |
|
|
|
1,596,185 |
|
Mortgage company
loan facility |
|
127,541 |
|
|
|
63,194 |
|
|
|
100,058 |
|
Total debt |
|
2,837,311 |
|
|
|
2,723,757 |
|
|
|
2,860,467 |
|
Total
stockholders’ equity |
|
7,307,974 |
|
|
|
7,019,271 |
|
|
|
6,797,156 |
|
Total capital |
$ |
10,145,285 |
|
|
$ |
9,743,028 |
|
|
$ |
9,657,623 |
|
Ratio of
debt-to-capital |
|
28.0 |
% |
|
|
28.0 |
% |
|
|
29.6 |
% |
|
|
|
|
|
|
|
Total debt |
$ |
2,837,311 |
|
|
$ |
2,723,757 |
|
|
$ |
2,860,467 |
|
Less: |
Mortgage company loan facility |
|
(127,541 |
) |
|
|
(63,194 |
) |
|
|
(100,058 |
) |
|
Cash and cash equivalents |
|
(1,030,530 |
) |
|
|
(754,793 |
) |
|
|
(1,300,068 |
) |
Total net
debt |
|
1,679,240 |
|
|
|
1,905,770 |
|
|
|
1,460,341 |
|
Total
stockholders’ equity |
|
7,307,974 |
|
|
|
7,019,271 |
|
|
|
6,797,156 |
|
Total net
capital |
$ |
8,987,214 |
|
|
$ |
8,925,041 |
|
|
$ |
8,257,497 |
|
Net
debt-to-capital ratio |
|
18.7 |
% |
|
|
21.4 |
% |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s management uses the net
debt-to-capital ratio as an indicator of its overall leverage and
believes it is a useful financial measure to investors in
understanding the leverage employed in the Company’s
operations.
CONTACT: Frederick N. Cooper (215)
938-8312fcooper@tollbrothers.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8896d5f0-0a75-4129-9749-02c7fc35e5c7
Toll Brothers (NYSE:TOL)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Toll Brothers (NYSE:TOL)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024