Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, reported a FY 2012 first-quarter net loss of $2.8 million, or $0.02 per share diluted, compared to FY 2011's first-quarter net income of $3.4 million, or $0.02 per share diluted, according today's announced results of Toll Brothers.
The Company FY 2012's first quarter included a net tax benefit of $3.6 million, compared to a net tax benefit of $20.5 million in FY 2011's first quarter.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "The past few months have been very exciting for Toll Brothers. Our total and per-community contracts were the highest for a first quarter in five years. At first-quarter end, the value of our backlog was up 35% and our community count was up 14% compared to one year ago. We entered the Seattle market through the acquisition of CamWest. We teamed with Equity Residential to acquire a great site at 28th Street and Park Avenue South in Manhattan where Toll Brothers will own and sell condominiums on the top eighteen floors of what will be an iconic forty-story building. And our Gibraltar subsidiary acquired its fifth portfolio of distressed assets with a combined outstanding loan balance of approximately $51.4 million: This was its first portfolio of primarily commercial assets."
"Although historically, our first quarter is the most challenging time to gauge sentiment among home buyers, in general the market feels healthier than it did one year ago. The urban metro New York City market remains very strong. We are also encouraged by the continued health of the Washington, DC-to-Boston corridor, along with Houston, Dallas, Raleigh, and more recently Southern California. We are even seeing some recovery on the east coast of Florida and in the suburbs of Detroit and Phoenix." He added.
"Our first quarter (non-binding) deposits were up 22% gross and 4% per community, compared to last year's first quarter. In the first three weeks of February, on a gross and per-community basis, deposits were up 43% and 25%, respectively, compared to the prior year's same period. With the economic and employment picture improving and the financial markets trending up, buyers are taking advantage of tremendous affordability and record low mortgage rates.
"We believe our community count is on track to reach between 235 and 255 by FYE 2012. We continue to explore land and debt portfolio acquisition opportunities across most of our current markets. Our balance sheet, reputation, and expertise in the approvals and development process, combined with our ability to close on transactions quickly and reliably, make us an attractive buyer for many land sellers."
