Toll Brothers Cuts Loss, Sees Increased Contracts

Horsham, PA, Feb. 24, 2010--Luxury homebuilder Toll Brothers reported a  first-quarter net loss of $40.8 million, or $0.25 per share, compared to a net loss of $88.9 million, or $0.55 per share, a year ago.

Revenues for the quarter were $326.7 million on 596 units, a decline of 20% in dollars and 10% in units, compared to totals of $409.0 million and 665 units the previous year.

Signed contracts of $292.1 million and 526 units rose 129% in dollars and 98% in units, compared to the 2009 first quarter.

"A year ago at this time we feared for the stability of the nation's economic system," said CEO Robert Toll.

"That worry seems to be behind us. The housing market took several years to recover following the downturn of the late 1980's and early 1990's. We expect this recovery to follow a similar pattern. We believe the housing market is still in choppy waters but the seas are getting calmer."

Toll said he expects the housing recovery to occur region by region. He noted that the firm's winter promotion has produced the highest number of deposits for any week in February since 2006.