Toll Brothers' (NYSE:TOL) on Nov. 8 announced preliminary results for its fiscal fourth quarter and for fiscal 2007. Home building revenues declined 36% year-over-year to $1.17 billion in the fourth quarter of 2007 compared to 2006. Its backlog of approximately $2.85 billion also declined 36% compared to the previous year.

Toll's gross signed contracts for 2007's fourth quarter totaled approximately $693.7 million and 1,073 homes. That was a decline of 38% and 33%, respectively, compared to 2006 when the builder posted totals of $1.12 billion and 1,595 homes.

Cancellations also hit Toll hard in the fourth quarter. In fact, it only had about 250 more new orders than cancellations. The builder had 417 cancellations for the quarter totaling approximately $328.5 million. In the fourth quarter of 2006, Toll had 585 cancellations totaling $412.3 million. As a percentage of beginning-quarter backlog, the fourth quarter cancellation rate was 8.3%.

The builder's net contracts signed in 2007's fourth quarter totaled 656 homes, or approximately $365.2 million. That was a dropoff of 35% in units and 48% in dollars, compared to FY 2006's fourth-quarter results of 1,010 signed contracts, or $706.3 million.

Toll's luxury home prices fell off by about $20,000 in the fourth quarter compared to the third quarter of 2007. Its average price per unit of gross contracts signed in the fourth quarter was $646,000, compared to $667,000 in the third quarter. Toll attributes this drop to its shift toward a higher percentage of multifamily (versus single-family) communities, which tend to be lower priced.

Compounding the drop in average sales prices was that the average price of Toll's 417 fourth-quarter cancellations was $788,000 per unit. The company said the cancellations were heavily concentrated in high priced markets and product lines. These cancellations, along with the company's product mix shift, reduced its average price of net signed contracts to a $557,000 per unit.

Toll did generate approximately $2.0 million from land sales in the fourth quarter, compared to $0.3 million in 2006's fourth quarter.

For the fiscal year ended Oct. 31, 2007, home building revenues were approximately $4.63 billion, and net signed contracts were approximately $3.01 billion, a decline of 24% in home building revenues and 33% in contracts compared to 2006's year-end results.

Toll's 12-month net contracts of approximately $3.01 billion fell 33% from its 2006 12-month total of $4.46 billion. Its 2007 revenues from land sales totaled approximately $11.9 million, compared to $8.2 million in 2006.

Toll is scheduled to report its fourth-quarter and fiscal 2007 results on December 6.