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Toll Brothers Inc. Reports Operating Results (10-K)

December 22, 2010 | About:
10qk

10qk

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Toll Brothers Inc. (TOL) filed Annual Report for the period ended 2010-10-31.

Toll Brothers Inc. has a market cap of $3.22 billion; its shares were traded at around $19.43 with and P/S ratio of 2.1. TOL is in the portfolios of Arnold Van Den Berg of Century Management, John Keeley of Keeley Fund Management, John Buckingham of Al Frank Asset Management, Inc., Pioneer Investments, Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Stanley Druckenmiller of Duquesne Capital Management, LLC, Chris Davis of Davis Selected Advisers.

Highlight of Business Operations:

At October 31, 2010, we had $1.24 billion of cash and cash equivalents and marketable U.S. Treasury and Agency securities on hand and approximately $799.0 million available under our new $885.0 million revolving credit facility which extends to October 2014. During fiscal 2010, we used available cash to repay a $331.7 million bank term loan and repurchase or redeem $93.4 million of our senior and senior subordinated notes. Since October 31, 2006, we have increased our cash position (including U.S. Treasury and Agency securities) by approximately $604.4 million and reduced debt by approximately $636.8 million.

At October 31, 2010, we were offering single-family detached homes in 143 communities at prices, excluding customized options, lot premiums and sales incentives, generally ranging from $193,000 to $1,958,000. During fiscal 2010, we delivered 1,548 single-family detached homes at an average base price of approximately $597,600. On average, our single-family detached home buyers added approximately 24.3%, or $145,000 per home, in customized options and lot premiums to the base price of single-family detached homes we delivered in fiscal 2010, as compared to 26% or $163,000 per home in fiscal 2009 and 24% or $164,500 in fiscal 2008.

At October 31, 2010, we were offering attached homes in 52 communities at prices, excluding customized options, lot premiums and sales incentives, generally ranging from $150,000 to $775,000, with some units offered at prices higher than $775,000. During fiscal 2010, we delivered 1,094 attached homes at an average base price of approximately $469,600. On average, our attached home buyers added approximately 9.7%, or $45,700 per home, in customized options and lot premiums to the base price of attached homes we delivered in fiscal 2010, as compared to 9% or $44,600 per home in fiscal 2009 and 10% or $48,900 in fiscal 2008.

We had a backlog of $852.1 million (1,494 homes) at October 31, 2010 and $874.8 million (1,531 homes) at October 31, 2009. Of the homes in backlog at October 31, 2010, approximately 97% are scheduled to be delivered by October 31, 2011.

In all of our communities, a wide selection of options is available to home buyers for additional charges. The number and complexity of options typically increase with the size and base selling price of our homes. Major options include additional garages, extra fireplaces, guest suites, finished lofts, and other additional rooms. On average, options purchased by our detached home buyers, including lot premiums, added approximately 24.3%, or $145,000 per home, to the base price of homes delivered in fiscal 2010, as compared to 26% or $163,000 per home in fiscal 2009 and 24% or $164,500 in fiscal 2008. Options purchased by our attached home buyers, including lot premiums, added, on average, approximately 9.7%, or $45,700 per home, to the base price of homes delivered in fiscal 2010, as compared to 9% or $44,600 per home in fiscal 2009 and 10% or $48,900 in fiscal 2008.

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