Second Quarter Revenue Falls 30% for Toll Brothers

Horsham, PA, May 13, 2008--Luxury homebuilder Toll Brothers Tuesday reported a 30 percent drop in second-quarter revenue, and said it expects second-quarter pretax writedowns between $225 million to $375 million.

For the quarter ended April 30, Toll reported revenue of $817.9 million, compared with $1.17 billion the previous year.

Net signed contracts totaled 929 homes, a down 44 percent, while the average price per unit dropped 17 percent to $590,000 from $711,000. Cancellations fell 20 percent to 308 units from 384 units.

Toll had a backlog of $2.08 billion as of April 30, down 50 percent.

"The just-completed spring selling season was quite weak in most markets as buyers remained on the sidelines. We believe there is significant pent-up demand which is growing," said CEO Robert Toll.