Toll Brothers earnings surge on higher home prices
Net income totals $45.6 million
Luxury homebuilder Toll Brothers' (TOL) first quarter net income ended Jan. 31 totaled $45.6 million, or 25 cents per share, compared to $4.4 million, or 3 cents per share, in the first quarter last year.
"We delivered more homes at higher prices this first quarter than one year ago. This higher delivery volume, coupled with price increases from late 2012 and early 2013, drove our first quarter growth in revenues, earnings and margins,” said Douglas Yearley, Toll Brothers' CEO.
The builder’s revenues of $643.7 million and home building deliveries of 928 units increased 52% in dollars and 24% in units, compared to 2013's first quarter. The average price of homes delivered was $694,000, compared to $569,000 last year.
In addition, a backlog of $2.69 billion and 3,667 units rose 45% in dollars and 31% in units, compared to 2013's first-quarter-end backlog.
But the builder did not post all good news, with its future earnings hinging on the impact of the weather.
"The freezing, snowy weather of the past two months has impacted our business in the Northeast, Mid-Atlantic and Midwest markets, where about 50% of our selling communities are located,” Yearley said. “While it is still too early to draw conclusions about the Spring selling season, we remain optimistic based on solid affordability, attractive interest rates, growing pent-up demand and an industry still under-producing compared to both historical norms and current demographics.”