Toll Brothers Second Quarter 2012 Numbers

Quarter Two

Nine Months

Profit/(Loss)

$61.6 M +46.4%

$75.7 M +206%

Home Deliveries

963 +39%

2,198  +18.6%

New Orders

1,119 +56.9%

3,061 +43%

 

Behind the Numbers:

Toll Brothers' earnings report left even jaded analysts using the word “stellar” to describe the company’s results. Toll is reaping the benefits of being in the high-end market, which has returned faster than other markets; and the fact that its competitors in that area, private custom builders, are having problems accessing capital, leaving them hamstrung and, in a lot of cases, dead in the water. But the company's success is not all due to lack of competition. It's making money selling its homes, with gross margins approaching 20%, and credits operational excellence as well.

“We are enjoying the most sustained demand we’ve experienced in over five years,” said CEO Douglas C. Yearley in the earnings announcement.

And the company expects things to continue to be good. It has returned to its pre-recession practice of offering predictions of future sales and earnings. Toll said it expects both earnings and sales at Oct. 31, the end of its fiscal year, to be tidily higher.

Toll’s fiscal year ends Oct. 31