Toll Brothers announced results for its second quarter ended April 30, 2015. Net income was $67.9 million, or $0.37 per share diluted.
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This compares to net income of $65.2 million, or $0.35 per share diluted, in FY 2014's second quarter.
Pre-tax income was $86.5 million, compared to pre-tax income of $93.5 million in FY 2014's second quarter. Second quarter FY 2015 included write-downs of $12.2 million, compared to $1.9 million in FY 2014's second quarter.
Excluding write-downs, second-quarter pre-tax income was $98.7 million in FY 2015, compared to $95.4 million in FY 2014.
The effective tax rate in FY 2015's second quarter was 21.5% due to the positive resolution (a $13.7 million reversal of tax reserves) of a state tax matter, compared to 30.2% in FY 2014's second quarter.
Revenues of $852.6 million and home building deliveries of 1,195 units declined 1% in dollars and 2% in units, compared to FY 2014's second quarter. The average price of homes delivered was $713,000, compared to $706,000 in FY 2014's second quarter.
Net signed contracts of $1.60 billion and 1,931 units rose 25% in dollars and 10% in units, compared to FY 2014's second quarter. The average price of net signed contracts was $826,000, compared to $729,000 in FY 2014's second quarter.
Backlog of $3.48 billion and 4,387 units rose 9% in dollars and 1% in units, compared to FY 2014's second-quarter-end backlog. At second-quarter end, the average price of homes in backlog was $794,000, compared to $742,000 at FY 2014's second-quarter end.
Gross margin, excluding interest and write-downs, was 25.3%, compared to 23.7% in FY 2014's second quarter.
SG&A as a percentage of revenue was 12.6%, compared to 12.1% in FY 2014's second quarter. FY 2014's second quarter included $5.1 million of Shapell acquisition costs.
Income from operations was 7.8% of revenue, compared to 7.9% of revenue in FY 2014's second quarter.
Other income and Income from unconsolidated entities totaled $20.1 million, compared to $25.4 million in FY 2014's second quarter.
The company ended its second quarter with 269 selling communities, compared to 258 at FY 2015's first-quarter end, and 252 at FY 2014's second-quarter end.
At FY 2015's second-quarter end, the company had approximately 45,000 lots owned and optioned, compared to approximately 45,300 one quarter earlier and 50,400 one year ago. ■