Toll Brothers, a top builder of luxury homes, today reported record fourth-quarter and fiscal-year-end results for earnings, revenues, contracts and backlog for the period ended Oct. 31, 2004. The company’s fourth-quarter earnings, revenues and backlog were the highest for any quarter in its history.
The company announced record fourth-quarter revenues of $1.46 billion, up 62 percent from the same quarter a year ago, and record contracts of $1.53 billion, which rose 51 percent from last year.
For the 2004 fiscal year, Toll Brothers announced record revenues of $3.89 billion, which grew 40 percent from last year; record contracts of $5.64 billion, which grew 62 percent; and a record fiscal year-end backlog of $4.43 billion, which grew 68 percent.
“With our record backlog and the current strength of demand, we enter fiscal 2005 with great optimism,” said Robert I. Toll, chairman and CEO of Toll Brothers. “Based on projected home building revenues of between $5 billion and $5.35 billion, we believe net income will grow at least 40 percent in fiscal 2005.”
Toll added that the 60,000 lots the company controls represents a 5- to 6-year pipeline for continued growth.
Toll Brothers’ financial highlights for the three-month and 12-month periods ended Oct. 31, 2004:
- FY 2004’s fourth-quarter net income of $180.6 million ($2.22 per share diluted) grew 93 percent versus FY 2003’s fourth-quarter net income of $93.4 million ($1.19 per share diluted), the previous fourth-quarter record.
- FY 2004’s 12-month net income of $409.1 million ($5.04 per share diluted) grew 57 percent versus FY 2003’s 12-month net income of $259.8 million ($3.44 per share diluted). This was the company’s 12th consecutive year of record earnings.
- FY 2004 fourth-quarter revenues of $1.46 billion, the highest quarter in the company’s history, grew 62 percent over FY 2003’s fourth-quarter revenues of $903.4 million. FY 2004 fourth-quarter home-building revenues of $1.44 billion (2,395 homes), also the highest quarter in the company’s history, increased 62 percent over FY 2003’s fourth-quarter home building revenues of $893.7 million (1,578 homes), the previous fourth-quarter record. Revenues from land sales totaled $1.6 million for FY 2004’s fourth quarter compared to $6.4 million in FY 2003’s.
- FY 2004 12-month revenues of $3.89 billion exceeded by 40 percent FY 2003’s 12-month revenues of $2.78 billion. This was the company’s 13th consecutive year of record revenues. FY 2004 12-month home-building revenues of $3.84 billion (6,627 homes) increased 41 percent over FY 2003’s 12-month home-building revenues of $2.73 billion (4,911 homes), the previous record. FY 2004 revenues from land sales for the 12-month period totaled $22.5 million compared to $27.4 million in the same period in FY 2003.
- In addition, in the company’s fiscal 2004 fourth-quarter and 12-month periods, unconsolidated entities in which the company had an interest delivered revenues of $36.9 million (89 homes) and revenues of $52.4 million (130 homes), respectively, compared to $3.7 million (12 homes) and $12 million (38 homes), respectively, in the same periods of fiscal 2003.
- The company’s FY 2004 fourth-quarter contracts of $1.53 billion (2,248 homes) grew by 51 percent over FY 2003’s fourth-quarter contracts of $1.02 billion (1,749 homes), the previous fourth-quarter record. In addition, in fourth-quarter 2004, unconsolidated entities in which the company had an interest signed contracts of $41.3 million (91 homes).
- FY 2004’s 12-month contracts of $5.64 billion (8,684 homes), which was the company’s 14th consecutive year of record contracts, grew by 62 percent over FY 2003’s 12-month total of $3.48 billion (6,132 homes). In addition, in the 12-month FY 2004 period, unconsolidated entities in which the company had an interest signed contracts of $123.5 million (289 homes).
- FY 2004 fourth-quarter-end backlog of $4.43 billion (6,709 homes), the highest in the company’s history, increased 68 percent over FY 2003’s record fourth-quarter-end backlog of $2.63 billion (4,652 homes), the previous fourth-quarter record. In addition, at the end of fiscal 2004, unconsolidated entities in which the company had an interest had a backlog of $75.8 million (174 homes).
Toll Brothers began business in 1967 and became a public company in 1986. Toll Brother shares (NYSE: TOL) traded at $58.20 a share this morning.
The company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 21 states, including 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.
The company 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 TV and broadband Internet delivery subsidiaries, and has its own lumber distribution, and house component assembly and manufacturing operations.
***
Send tips or a Letter to the Editor to jessica@inman.com or call (510) 658-9252, ext. 133.
