Toll Brothers, Inc. announced results for its first quarter ended January 31, 2015. Q1 2015 net income was $81.3 million, or $0.44 per share diluted, compared to Q1 2014 net income of $45.6 million, or $0.25 per share diluted.
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Q1 2015 pre-tax income was $124 million, compared to FY 2014 first-quarter pre-tax income of $71.2 million. Q1 2015 results included pre-tax inventory write-downs totaling $1.1 million ($0.9 million attributable to operating communities and $0.2 million attributable to future communities).
Q1 2014 results included pre-tax inventory write-downs of $2.0 million ($1.3 million attributable to an operating community and $0.7 million attributable to future communities).
Q1 2015 total revenues of $853.5 million and 1,091 units increased 33% in dollars and 18% in units from Q1 2014 total revenues of $643.7 million and 928 units.
The company's FY 2015 first-quarter net signed contracts of $873.2 million and 1,063 units, increased 24% in dollars and 16% in units, compared to Q1 2014 net signed contracts of $701.7 million and 916 units.
On a per-community basis, Q1 2015 net signed contracts was 4.09 units per community, compared to first quarter totals of 3.95 in FY 2014, 4.34 in FY 2013, 2.86 in FY 2012 and 2.81 in FY 2011.
In FY 2015, first-quarter-end backlog of $2.74 billion and 3,651 units increased 2% in dollars and was approximately flat in units, compared to Q1 2014-end backlog of $2.69 billion and 3,667 units.
Excluding write-downs and interest, Q1 2015 gross margin improved to 27.3% from 24.4% in FY 2014's first quarter. Q1 2015 gross margin, including write-downs and interest, improved to 23.8% from 20.1% in FY 2014's first quarter.
Interest included in cost of sales declined to 3.3% of revenue in FY 2015's first quarter from 4.0% in FY 2014's first quarter.
SG&A as a percentage of revenue improved to 12.5%, compared to 15.2% in FY 2014's first quarter.
Income from operations of $97.1 million represented 11.4% of revenues in FY 2015's first quarter, compared to $31.8 million and 4.9% of revenues in FY 2014's first quarter.
Other income and Income from unconsolidated entities in FY 2015's first quarter totaled $26.9 million, including an $8.1 million gain from the sale of home security accounts to a third party by the company's wholly-owned Westminster Security company, compared to $39.5 million in FY 2014's same quarter, which included $23.5 million related to the sale of two shopping centers in which Toll Brothers was a 50% partner. ■