Toll Brothers Cuts Loss, Adds Land to Holdings

Horsham, PA,, Dec. 2, 2010 -- Luxury home builder Toll Brothers reported fourth quarter net income of $50.5 million, or $0.30 per share, compared to a 2009 fourth quarter net loss of $111.4 million, or $0.68 per share.

This year's fourth quarter included a net tax benefit of $59.9 million, compared to a $4.7 million net tax expense in a year ago.

Fourth quarter revenues this year were $402.6 million on 700 units, a decrease of 17% in dollars and 19% in units compared a year ago.

Toll signed net contracts of $315.3 million and 558 units, a decline of 27% in both dollars and units, compared to last year. 

For its fiscal year ended October 31, 2010, Toll reported a net loss of $3.4 million, or $0.02 per share, compared to a net loss of $755.8 million, or $4.68 per share for fiscal 2009. 

The company said that home deliveries were down 76% from its fourth quarter peak in 2005.

For the first time since 2005, the company added land to its portfolio as it prepares for a rebound.

"This housing downturn is the longest and most severe since the Great Depression," said CEO Robert Toll. 

"Based on the very low housing production over the past few years, we believe that pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence."