HUNTINGDON VALLEY, Pa. (Hanley-Wood News Service) - Toll Brothers, Inc., (NYSE: TOL), a builder of luxury homes, today reported record first quarter results for contracts and home building revenues for the quarter ended January 31, 2002. Robert I. Toll, chairman and chief executive officer, stated: ''Our luxury market continues to excel, driven by rising consumer confidence, a stabilizing economy and tremendous demographics. An increase in selling communities has contributed to our strong start in fiscal 2002 and positioned us to benefit from robust demand among luxury move-up, empty-nester and active-adult home buyers.''
''With consumer confidence reaching its highest level since January 2001, our optimism continues to grow, buoyed by strong activity in nearly all of our markets and renewed vigor in Northern California. We produced record first quarter contracts and deliveries and a near-record first quarter backlog. This gives us a strong pipeline of prospective deliveries for the next several quarters.''
''Since FYE October 31, 2001, our number of selling communities has increased from 155 to 165; we anticipate reaching approximately 175 by FYE 2002. With this expansion and continued healthy demand, we believe our FY 2003 revenues should top $2.5 billion, our FY 2003 home deliveries should exceed 5,000 units and FY 2003 earnings should be our highest ever.''
''The strength of the luxury market is supported by increasing numbers of affluent households and growing numbers of maturing baby boomers in their peak move-up home buying years. Considering that the small group of baby boomers born before 1954 drove the luxury move-up market in the 1990's, the potential this decade is much greater because the largest group of baby boomers -- the four million born annually between 1954 and 1964 -- are now entering their peak move-up home buying years. This growth in numbers is augmented by a growth in affluence -- U.S. households with incomes of $100,000 or more have increased eight times faster than U.S. households in general over the past two decades. We believe these factors will propel demand for luxury move-up, empty-nester and active-adult homes in this new decade.''
''With approximately 39,000 lots owned or controlled in many of the nation's most affluent markets, we have a supply of attractively-located home sites to serve our growing buyer base in an increasingly supply-constrained environment. We plan to continue to increase penetration of our existing move-up markets and to aggressively expand our empty-nester and active-adult product nationwide. With this strategy, we believe that, on average, we can produce at least 15% compound annual growth in the coming years.''
Toll Brothers' preliminary first quarter 2002 results are as follows:
-- Record first quarter 2002 homebuilding revenues of approximately
$483 million (979 homes) were up 5% versus the previous first quarter
record of $458.4 million (971 homes), set in 2001.
-- Record signed contracts for first quarter 2002 of approximately
$485 million (928 homes) rose 8% compared to the previous first
quarter record of $448.0 million (883 homes) set in 2001. This was
the eleventh consecutive year in which Toll Brothers' first quarter
contracts exceeded the prior year's first quarter total.
-- The company's backlog at first quarter-end 2002 was approximately
$1.41 billion (2,662 homes), down less than 1% from 2001's record
first quarter-end backlog of $1.42 billion (2,678 homes).
Toll Brothers Inc. generated $2.2 billion in revenues and $213 million in earnings in fiscal 2001. Toll Brothers has produced over 20% compound average annual growth in revenues and earnings for the last one, three, five, seven and ten year periods.
Toll Brothers began business in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange and the Pacific Exchange under the symbol ''TOL''. The Company serves move-up, empty-nester and active-adult home buyers and operates in 21 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Maryland, Michigan, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Tennessee, Texas, and Virginia.
Toll Brothers builds luxury single-family and attached home communities and master-planned luxury multi-product residential golf course communities principally on land it develops and improves. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management, home security, landscape, cable T.V. and broadband Internet delivery subsidiaries. The Company also operates its own lumber distribution, and house component assembly and manufacturing operations. The Company acquires and develops apartment and commercial properties through its affiliate, Toll Brothers Realty Trust.
Toll Brothers is the only publicly traded national home builder to have won all three of the industry's highest honors: America's Best Builder from the National Association of Home Builders, the National Housing Quality Award and Builder of the Year. For more information visit http://www.tollbrothers.com