Toll Brothers Narrows Loss, Sees More Buyers

Horsham, PA, June 3, 2009--Luxury homebuilder Toll Brothers Inc. reported a second-quarter net loss of $83.2 million, or $0.52 per share, which included pre-tax write-downs totaling $119.6 million, or $0.48 per share.

This compared to a net loss of $93.7 million, or $0.59 per share diluted last year, which included pre-tax write-downs totaling $288.1 million, or $1.06 per share.

Excluding write-downs, this year's loss was $5.2 million, or $0.03 per share compared to earnings of $56.5 million, or $0.32 per share a year ago.

For its first six months of its fiscal year, the Toll generated a net loss of $172.1 million, or $1.07 per share diluted, which included pre-tax write-downs totaling $276.3 million, or $1.10 per share.

Excluding write-downs, six-month earnings were $4.4 million, or $0.03 per share diluted, compared to $114.2 million, or $0.69 per share last year.

Toll's second-quarter revenues of $398.3 million was down 51% from a year ago on sales of 648 units.

"With interest rates near historic lows and housing affordability near historic highs, it appears that some buyers are beginning to re-enter the new home market," said CEO Robert Toll.

"Housing starts are down nearly 80% from their historic peak in 2005. While purchases of existing distressed homes continue to dominate the published data, there are some local markets where foreclosures are limited and available supply is less abundant.

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