Luxury home builder Toll Brothers in its preliminary earnings release today reported record third-quarter and nine-month results for home-building revenues, backlog and contracts for the period ended July 31.
The results are preliminary and unaudited, and the company said it will announce final totals on Aug. 25.
The home builder said third-quarter contracts increased 19 percent to $1.92 billion compared with last year.
Revenues for the first nine months of the company’s fiscal year are 57 percent higher than last year’s record total, Robert Toll, chairman and CEO of Toll Brothers, said in a statement. The company expects about 70 percent net income growth in fiscal year 2005, he said.
Toll Brothers ended the quarter with 230 selling communities, he said.
“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,” Toll said.
The company this quarter signed $63 million in contracts at two of its urban high-rise joint ventures in Hoboken, N.J., on the Hudson River overlooking Manhattan. “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,” Toll said.
The builder expects to begin delivering units at Hudson Tea in late fiscal 2005, and in the first building at Maxwell Place in late fiscal 2006.
“With other urban and waterfront high-rise condominiums in our pipeline, we project a stream of profits from this growing line of business,” Toll said.
Toll Brothers delivered 2,310 homes during the quarter. Based on nine-month results, the company expects to deliver 8,300 to 8,500 homes this fiscal year.
The company in its preliminary, unaudited results reported third-quarter contracts of about $1.92 billion for 2,746 homes. That was up 19 percent from fiscal 2004 contracts. Nine-month contracts were approximately $5.57 billion, or 8,100 homes, in Toll Brothers’ preliminary results. That was up 35 percent from the same period a year ago.
The company’s preliminary third-quarter revenues were approximately $1.54 billion, or 2,310 homes, the highest for any quarter in the company’s history.
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.
The company had third-quarter backlog of about $6.43 billion, or 9,490 homes, up 48 percent from the same period a year ago.
Toll Brothers serves move-up, empty-nester, active-adult and second-home home buyers and operates in 20 states.
Toll Brothers shares (NYSE:TOL) traded at $55.28 a share this morning.
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