Toll Brothers files best quarter in seven years
By Sarah Ann McCay23 May 2013
Toll Brothers has reported income growth for both its second quarter and six months ended April 30, 2013 financial results, as the US homebuilder saw increases in demand and unit price.
"Demand accelerated significantly this quarter. Increased pricing power and stronger sales drove our agreements up +57% in Dollars and +36% in units - the highest for any quarter in seven years,” said Douglas C. Yearley, Jr., CEO, Toll Brothers.
"Our strong brand, land position and capital base are giving us a competitive advantage in many of our markets. Buyers who have been on the sidelines for six years are jumping in. Low interest rates, improved customer confidence, a strong stock market, rising home prices and a reawakening economy are stoking the demand that is fuelling our luxury market,” he added.
Net signed contracts for second quarter 2013 totalled US$ 1.19 billion and 1,753 units.
Total second quarter net income stood at US$ 24.7 million, up from US$ 16.9 million in the same period in 2012. Meanwhile, six-month net income was US$ 29.1 million, compared to full year 2012's six-month net income of US$ 14.1 million.
Toll Brother held a backlog of US$ 2.53 billion and 3,655 units for the second quarter 2013, up +69% in Dollars and +52% in units on 2012 figures.
Looking ahead, the company estimates it will deliver between 3,850 and 4,200 homes for full year 2013.