Toll Brothers Inc (TOL) 10-Q Quarterly Report March 2019

HORSHAM, PA, February 26, 2019 -- Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation’s leading builder of luxury homes, today announced results for its first quarter ended January 31, 2019.

FY 2019’s First Quarter Financial Highlights (Compared to FY 2018’s First Quarter):

▪

Net income and earnings per share were $112.1 million and $0.76 per share diluted, compared to net income of $132.1 million and $0.83 per share diluted in FY 2018’s first quarter. This decline in earnings per share was primarily the result of a (0.4)% effective tax rate in FY 2018’s first quarter due to the revaluation of the Company’s net deferred tax liability as a result of the enactment of the Tax Cuts and Jobs Act, compared to a 26.0% effective tax rate in FY 2019’s first quarter.


▪	Pre-tax income grew 15% to $151.4 million, compared to $131.6 million in FY 2018’s first quarter.


▪	Home sales revenues were $1.32 billion, up 12%; home building deliveries were 1,530, up 8%.


▪	Net signed contract value was $1.16 billion, down 31%; contract units were 1,379, down 24%.


▪	Backlog value at first quarter end was $5.37 billion, down 4%; units in backlog totaled 5,954, down 5%.


▪	Home sales gross margin was 21.0%; Adjusted Home Sales Gross Margin, which excludes interest and inventory write-downs (“Adjusted Home Sales Gross Margin”), was 24.2%.


▪	Land sales gross profit was $9.6 million in FY 2019’s first quarter.


▪	SG&A, as a percentage of home sales revenues, was 12.3%.


▪	Income from operations was 9.1% of total revenues.


▪	Other income and Income from unconsolidated entities was $27.0 million.


▪	The Company repurchased approximately 785,000 shares of its common stock at an average price of $32.02 per share for an aggregate purchase price of approximately $25.1 million.

Second Quarter FY 2019 Financial Guidance:


▪	Deliveries of between 1,650 and 1,850 units with an average price of between $860,000 and $890,000.


▪	Adjusted Home Sales Gross Margin of approximately 23.1%.


▪	SG&A, as a percentage of second quarter home sales revenues, of approximately 11.3%.


▪	Other income, Income from unconsolidated entities, and land sales gross profit of approximately $13 million.


▪	Tax rate of approximately 27.5%.

The following information was filed by Toll Brothers Inc (TOL) on Tuesday, February 26, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Toll Brothers Inc's 10-Q Quarterly Report:

Financial - Income Highlight
The decrease in income before income taxes in the fiscal 2019 period, as compared to the fiscal 2018 period, was mainly due to lower earnings from decreased revenues in the fiscal 2019 period, as compared to the fiscal 2018 period, and a $2.8 million impairment charge recorded in the fiscal 2019 period to write down the carrying value of units in one building located in New York, New York, to their estimated fair value.

Financial - Income Highlight
The increase in income from ancillary businesses in the three months ended January 31, 2019, as compared to the three months ended January 31, 2018, was mainly due to a $12.2 million gain recognized from the sale of a golf club in the fiscal 2019 period.
Financial - Dividend Highlight
We generated $93.7 million of cash from financing activities in the three-month period ended January 31, 2018 primarily from the net proceeds of $396.6 million from the issuance of $400.0 million aggregate principal amount of 4.350% Senior Notes due 2028 and the proceeds of $7.6 million from our stock-based benefit plans; offset, in part, by the repurchase of $200.3 million of our common stock; the repayment of $97.9 million of loans payable, net of borrowings; and the payment of dividends on our common stock of $12.3 million.
Financial - Income Highlight
The increase in income before income taxes in the fiscal 2019 period, as compared to the fiscal 2018 period, was principally attributable to higher earnings from increased home sale revenues and lower home sales cost of revenues, as a percentage of home sale revenues.
Revenue - Product Highlight
Units Delivered and Revenues: 39 39 Net Contracts Signed: Backlog: 40 40 Income (Loss) Before Income Taxes ($ amounts in millions): "Corporate and other" is comprised principally of general corporate expenses such as the offices of our executive officers; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including Gibraltar; and income from our Rental Property Joint Ventures and Gibraltar Joint Ventures.
Financial - Income
The increase in "other" in...Read more
Financial - Expense
Selling, General and Administrative Expenses...Read more
Other - Other
Mid-Atlantic The decrease in the...Read more
Financial - Earnings
The decrease in earnings from...Read more
Financial - Income
The increase in income before...Read more
Other - Other
At January 31, 2019, we...Read more
Other - Other
At January 31, 2019, we...Read more
Revenue - Product
The decrease in home sales...Read more
Revenue - Product
In the three-month period ended...Read more
Financial - Expense
Cash used in operating activities...Read more
Other - Other
The increase in the average...Read more
Financial - Income
The decrease in income before...Read more
Other - Other
Of our owned home sites...Read more
Revenue - Product
The decrease in home sales...Read more
Other - Other
The increase in the average...Read more
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The decrease in the number...Read more
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The difference between the tax...Read more
Financial - Expense
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M & A - Other
In addition, we might delay,...Read more
Financial - Dividend
We used $219.5 million of...Read more
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The increase in the average...Read more
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The increase in the average...Read more
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Revenue - Product
The decrease in home sales...Read more
Other - Other
Of the 33,500 home sites...Read more
Revenue - Product
33 33 Home Sales Revenues...Read more
Financial - Cash Flow
Should our business decline, we...Read more
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Cash used in operating activities...Read more
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Management fee income from home...Read more
Revenue - Product
To the extent these separate...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Toll Brothers Inc provided additional information to their SEC Filing as exhibits

Exhibit 4.1: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 4.2: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: TOL
CIK: 794170
Form Type: 10-Q Quarterly Report
Accession Number: 0000794170-19-000017
Submitted to the SEC: Fri Mar 08 2019 11:10:46 AM EST
Accepted by the SEC: Fri Mar 08 2019
Period: Thursday, January 31, 2019
Industry: Operative Builders