Toll Brothers released its first quarter results earlier today, with gross margins of 23.4% and an 18%-increase in orders.
Here are some of the highlights:
- FY 2016's first quarter net income was $73.2 million compared to net income of $81.3 million, or $0.44 per share, in FY 2015's first quarter.
- Pre-tax income was $116.8 million, compared to pre-tax income of $124.0 million in FY 2015's first quarter.
- Revenues of $928.6 million and home building deliveries of 1,063 units rose 9% in dollars and declined 3% in units, compared to FY 2015's first quarter.
- The average price of homes delivered was $873,500, compared to $782,300 in FY 2015's first quarter.
- Net signed contracts of $1.09 billion and 1,250 units rose 24% in dollars and 18% in units, compared to FY 2015's first quarter. The average price of net signed contracts was $869,600, compared to $821,500 in FY 2015's first quarter.
- Backlog of $3.66 billion and 4,251 units rose 34% in dollars and 16% in units, compared to FY 2015's first-quarter end backlog. The average price of homes in backlog was $861,600, compared to $750,300 at FY 2015's first-quarter end.
- Gross margin, excluding interest and write-downs, was 26.9%, compared to 27.3% in FY 2015's first quarter.
"Our North and Mid-Atlantic regions, which have been slower to emerge from the recession, had strong contract activity in our first quarter. In the North, which runs from New Jersey up to Massachusetts and includes the Midwest, contracts were up 56% in dollars and 38% in units compared to a year ago. New Jersey produced nearly 38% of the region's total contracts, and saw growth of 33% in dollars and 45% in units," Douglas C. Yearley, Jr., Toll Brothers' CEO in a press release. "In the Mid-Atlantic, we are seeing a reinvigoration of the Northern Virginia market, where contracts increased 79% in units and 85% in dollars, compared to last year's first quarter."
Deposits and contracts were flat in February, which Yearley attributes to stock market volatility and economic uncertainty.