Luxury Homebuilder Toll Sees Jump in Contracts

Horsham, PA, Nov. 11, 2009--Luxury homebuilder Toll Brothers, Inc. said its fourth-quarter net signed contracts of approximately 765 units and $430.8 million rose 42% in units and 62% in dollars compared to 2008's fourth-quarter totals.

Toll said the total also exceeded 2007's fourth-quarter net signed contracts by 17% in units and 18% in dollars.

The increases were achieved despite having fewer selling communities, Toll said.

However, Toll said its fourth-quarter home building deliveries and revenues of approximately 860 units and $486.6 million declined 20% in units and 30% in dollars, and its fourth-quarter-end backlog of approximately 1,531 units and $874.8 million declined 25% in units and 34% in dollars, compared to last year.

"We have definitely progressed from one year ago," said CEO Robert Toll.

"The shock to the financial system in mid-September 2008 that shut down the capital markets appears to be mostly behind us. The improvement in consumer confidence over the past year, the increasing stabilization of home prices, the decline in unsold home inventories and the reduction in buyer cancellation rates suggest that the new home market should be improving; we sense that it is, though slowly and through choppy waters."

Toll said that home buyers began to emerge in late March and the market continued to gain momentum up to Labor Day. Since then, he said, demand has been volatile, which he said is likely due to concerns about unemployment and the overall economy.