Toll Brothers Income Drops on Tax Charge

Horsham, PA, Dec. 6, 2011 -- Luxury homebuilder Toll Brothers reported fourth-quarter net income of $15.0 million, or $0.09 per share, compared to $50.5 million, or $0.30 per share a year ago.

The current included a tax expense of $0.2 million, compared to a $59.9 million net tax benefit in the 2010 fourth quarter.

Toll reported fourth-quarter revenues and home building deliveries of $427.8 million and 757 units increased 6% in dollars and 8% in units, compared to fiscal year 2010's fourth-quarter totals of $402.6 million and 700 units.

The current quarter's net signed contracts of $390.0 million and 644 units rose 24% in dollars and 15% in units over a year ago.

Tolls contract cancellation rate fell to 7.9% from 8.8% a year ago.

For its fiscal year ended Oct. 31, Toll reported net income of $39.8 million, or $0.24 per share, compared to a net loss of $3.4 million, or $0.02 per diluted a year ago.

Robert I. Toll, executive chairman, said: "We believe that a strengthening of the housing market is key to an economic recovery. It will reduce unemployment, which will improve consumer confidence and bring on more demand.

"Unemployment nationally among college graduates is well below 5%. We, therefore, believe that our customers have the ability to buy. They are aware of the tremendous affordability of homes and the record low interest rates. However, a lack of confidence in the direction of the economy is perhaps the biggest impediment to releasing what we believe is significant pent-up demand."