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Last Update: 04-Dec-12 08:18 ET
Toll Brothers shares spike 4% following beat on revenues
Toll Brothers (TOL $33.68 +1.25) reported fourth quarter pre-tax income of $60.7 mln -- ~$0.35 per share, excluding a net tax benefit of $350.7 million, which included the reversal of $400.0 million of the Company's deferred tax asset valuation reserves against its deferred tax asset, offset by a tax provision of $49.3 million; co reported GAAP EPS of $2.35 ($411 million), may not be comparable to the Capital IQ Consensus Estimate of $0.25; revenues rose 47.9% year/year to $632.8 million versus the $565.87 million consensus. Homebuilding deliveries of 1,088 units rose 48% in dollars and 44% in units, compared to FY 2011's fourth quarter. Net signed contracts of $684.1 million and 1,098 units rose 75% in dollars and 70% in units, compared to FY 2011's fourth quarter. On a per-community basis, FY 2012's fourth-quarter net signed contracts of 4.86 units per community were the highest for any fourth quarter since FY 2005. Backlog of $1.67 billion and 2,569 units rose 70% in dollars and 54% in units, compared to FY 2011's fourth-quarter-end backlog. The Company's cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) was 4.6%, compared to 7.9% in FY 2011's fourth quarter. The average price of homes delivered was $582,000, compared to $576,000 in FY 2012's third quarter and $565,000 in FY 2011's fourth quarter. Gross margin, excluding interest and write-downs, was 24.6%, compared to 24.2% in FY 2011's fourth quarter. The co ended FY 2012 with 224 selling communities, compared to 226 at FY 2012's third-quarter end, and 215 at FYE 2011. At FYE 2012 the co had ~40,400 lots owned and optioned, compared to ~39,200 at FY 2012's third-quarter end and ~37,500 one year ago. "We enjoyed resurgent activity across all of our product lines and in most of our geographic regions. The momentum that began in our first quarter of FY 2012 built throughout the year. Our financial strength also gives us an advantage in buying land, as sellers know we have the appetite and capital to close transactions quickly. Since the start of our fourth quarter, we have been seeing great deal flow in some excellent locations."
