Luxury builder Toll Brothers Inc. (TOL) ended its 2012 fiscal year on a high note with more new home build contracts signed and a sharp climb in profits.
The builder posted a $411.1 million, or $2.35 a share, profit in the fourth quarter as contract signings for new homes jumped 75% from a year earlier and the company recorded a one-time $350 million tax benefit.
The company's income is up substantially from Toll Brothers' profit of $15 million, or 9 cents a share, in the fourth quarter of 2011. Despite the big jump mostly reflecting a one-time tax benefit, the Pennsylvania-based homebuilder is still benefitting from pent up housing demand.
In the fourth quarter, the company's revenue hit $632.8 million as it delivered 1,088 homes, a 44% jump in units from a year earlier and a 48% increase in revenue as well.
The company also signed $684.1 million in contracts, up 75% from the fourth quarter of 2011.
Toll Brothers had a backlog of 2,569 housing units in the quarter, an increase of 54% when compared to the fourth quarter of 2011.
Home price values also edged up with demand in the fourth quarter as the average price of a property hit $582,000, up from $565,000 a year earlier.
For the entire fiscal year, the company's net profit hit $487.1 million, or $2.86 a share, when compared to $39.8 million, or 24 cents a share, last year. That sharp increase is mostly attributed to a fourth-quarter tax benefit.
In fiscal 2012, the company delivered 3,286 homes and increased its revenue on homebuilding activities by 28% to $1.88 billion.
Contract signings also rose by 49% with 4,159 units subject to a contract in 2012. The value of net-signed contracts for the year also rose 59% from 2011 to $2.56 billion.