Toll Brothers Reports 4th Qtr and FYE 2012 Results

Toll Brothers Reports 4th Qtr and FYE 2012 Results

HORSHAM, Pa., Dec. 4, 2012 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL)
(www.tollbrothers.com), the nation's leading builder of luxury homes, today
announced results for earnings, revenues, contracts, and backlog for its
fourth quarter and fiscal year ended October 31, 2012. In its fourth quarter,
revenues rose 48% in dollars and 44% in units, contracts rose 75% in dollars
and 70% in units, and backlog rose 70% in dollars and 54% in units, compared
to FY 2011's fourth quarter. In the fourth quarter, pre-tax income was $60.7
million and net income was $411.4 million.

Front Entrance EPR

Fourth Quarter Financial Highlights:

  *FY 2012's fourth quarter net income was $411.4 million, or $2.35 per
    share, compared to $15.0 million, or $0.09 per share in FY 2011's fourth
    quarter. Included in FY 2012's fourth quarter was a net tax benefit of
    $350.7 million, which included the reversal of $400.0 million of the
    Company's deferred tax asset valuation reserves against its deferred tax
    asset, offset by a tax provision of $49.3 million.
  *Net income also included pre-tax inventory write-downs of $1.5 million and
    $0.7 million of cash recoveries of prior joint venture write-offs,
    compared to pre-tax inventory write-downs of $18.2 million and a $0.4
    million pre-tax loss from early repurchase of debt in FY 2011's fourth
    quarter.
  *Pre-tax income was $60.7 million, compared to $15.3 million in FY 2011's
    fourth quarter.
  *Revenues of $632.8 million and homebuilding deliveries of 1,088 units rose
    48% in dollars and 44% in units, compared to FY 2011's fourth quarter.
  *Net signed contracts of $684.1 million and 1,098 units rose 75% in dollars
    and 70% in units, compared to FY 2011's fourth quarter. On a per-community
    basis, FY 2012's fourth-quarter net signed contracts of 4.86 units per
    community were the highest for any fourth quarter since FY 2005.
  *Backlog of $1.67 billion and 2,569 units rose 70% in dollars and 54% in
    units, compared to FY 2011's fourth-quarter-end backlog.
  *The Company's cancellation rate (current-quarter cancellations divided by
    current-quarter signed contracts) was 4.6%, compared to 7.9% in FY 2011's
    fourth quarter.
  *The average price of homes delivered was $582,000, compared to $576,000 in
    FY 2012's third quarter and $565,000 in FY 2011's fourth quarter.
  *Gross margin, excluding interest and write-downs, was 24.6%, compared to
    24.2% in FY 2011's fourth quarter.
  *SG&A as a percentage of revenue improved to 11.8%, compared to 16.0% in FY
    2011's fourth quarter due primarily to higher revenues and an insurance
    reserve reversal of $8.0 million.
  *The Company ended FY 2012 with 224 selling communities, compared to 226 at
    FY 2012's third-quarter end, and 215 at FYE 2011. At FYE 2012 the Company
    had approximately 40,400 lots owned and optioned, compared to
    approximately 39,200 at FY 2012's third-quarter end and approximately
    37,500 one year ago.

FY 2012 Financial Highlights

  *FY 2012 net income was $487.1 million, or $2.86 per share diluted,
    compared to FY 2011's net income of $39.8 million, or $0.24 per share
    diluted. Included in FY 2012's full year net income was a net tax benefit
    of $374.2 million, which included the reversal of $400.0 million of the
    Company's deferred tax asset valuation reserves against its deferred tax
    asset, offset by a tax provision of $25.8 million.
  *Net income included pre-tax inventory write-downs of $14.7 million and
    $2.3 million of cash recoveries of prior joint venture write-offs,
    compared to pre-tax inventory write-downs of $92.7 million and a $3.8
    million pre-tax loss from early repurchase of debt in FY 2011. FY 2011 net
    income also included a net tax benefit of $69.2 million.
  *Pre-tax income was $112.9 million, compared to a pre-tax loss of $29.4
    million in FY 2011.
  *Revenues of $1.88 billion and homebuilding deliveries of 3,286 units rose
    28% in dollars and 26% in units, compared to FY 2011.
  *Net signed contracts of $2.56 billion and 4,159 units rose 59% in dollars
    and 49% in units, compared to FY 2011. On a per-community basis, FY 2012's
    net signed contracts of 18.2 units per community were the highest for any
    fiscal year since FY 2006.
  *Gross margin, excluding interest and write-downs, was 24.0%, compared to
    23.3% for FY 2011.
  *SG&A as a percentage of revenue improved to 15.3% compared to 17.7% for FY
    2011.

Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated:
"Pent-up demand, rising home prices, low interest rates, and improving
consumer confidence motivated buyers to return to the housing market in FY
2012. As household formations accelerated and unsold home inventories dropped
to record lows, the industry took further steps toward a sustained housing
recovery.

"We enjoyed resurgent activity across all of our product lines and in most of
our geographic regions. The momentum that began in our first quarter of FY
2012 built throughout the year. Sequentially, over the four quarters of FY
2012, the value of net signed contracts rose 45%, 51%, 66% and 75% compared to
FY 2011's same four quarters. Our net contracts per community ("same store
sales"), which increased 33% and 60% respectively versus FY 2011's full year
and fourth quarter, were the highest for a fiscal year since FY 2006 and the
highest for a fourth quarter since FY 2005. Now, five weeks into FY 2013, our
contracts are up 34% versus FY 2012's same period.

"Our large increase in FY 2012 contracts was achieved primarily through an
increase in per-community sales. FY 2012's contracts per community of 18.2,
while up 33% from FY 2011, were still 36% below our average annual pace from
1987 through 2006 of 28.6; therefore, as the economy strengthens, we believe
there is great potential to increase sales paces per community.

"We believe the publicly traded home building companies are growing market
share: As the only national home building company focused on the luxury
market, we are particularly well positioned. Our financial strength gives us a
competitive advantage over the small and mid-sized private builders in our
luxury niche whose access to capital and land remains constricted.

"Our financial strength also gives us an advantage in buying land, as sellers
know we have the appetite and capital to close transactions quickly. Since the
start of our fourth quarter, we have been seeing great deal flow in some
excellent locations.Our philosophy has always been to acquire exceptionally
located sites – "on the corner of 'Main and Main.'"In contrast to the
"just-in-time" model of some "land-light" builders, we often take this land
through approvals while we have it under option and then improve it. This
helps increase our profit margins and enables us to position the company for
the future as we put land under control today that may translate into revenues
starting several years later.

"As the economy slowly heals and more customers re-enter the housing market,
we look forward to the future. Based on our strong balance sheet, solid land
holdings, recognized brand and excellent team of associates, we believe we are
well-positioned for the housing market's continuing recovery."

Martin P. Connor, Toll Brothers' chief financial officer, stated: "We ended FY
2012 with approximately $1.2 billion of cash and marketable securities, $814.9
million available under our 12-bank credit facility and a net-debt-to-capital
ratio of 23.6%. Our stockholders' equity grew $535 million in FY 2012, due
primarily to our operating income and the reversal of most of our valuation
allowance.

"Our strong credit ratings enable us to access the capital markets at
industry-leading rates. This quarter we raised $287.5 million through a
20-year exchangeable note offering, callable in September 2017, with a 0.50%
coupon and a conversion premium set at $49.08 per share - 50% above our
then-current stock price of $32.72.

"Subject to the caveats in our Statement on Forward-Looking Information
included in this release, we offer the following limited guidance. We ended FY
2012 with a backlog of $1.67 billion and 2,569 units, up 70% in dollars and
54% in units, compared to FYE 2011.With this backlog and the lowest
cancellation rate in our industry, we believe we will deliver between 3,600
and 4,400 homes in FY 2013 at an average price of between $595,000 and
$630,000 per home. We expect to end FY 2013 with between 225 and 255 selling
communities."

Robert I. Toll, executive chairman, stated: "Our optimism for our own and the
housing industry's prospects is buoyed by basic demographics.During the last
five years, population has continued to increase in the United States;
however, household formations, a key driver of housing demand, have not kept
pace. A recent study by Harvard University estimated that, based on historic
trends, 1.8 to 2.8 million more U.S. households should have been formed since
2007 than actually were created.Recent trends suggest these formations are
starting to occur.

"Meanwhile, new home production has been anemic. Many experts estimate that,
going forward, the industry has to produce between 1.4 and 1.7 million new
homes per year to keep pace with basic demographic-driven demand.From 2008
through 2011, that number dropped to 660,000 on average and is projected by
the National Association of Home Builders to be about 757,000 for
2012.Clearly, more new home production will be needed to meet future demand.

"While general economic trends are encouraging, we hope there is recognition
among our leaders that policies supportive of a housing recovery will have an
exponentially positive impact on job growth and that an increase in home
values will translate into stronger family balance sheets, improved consumer
confidence and a greater propensity to spend, which will accelerate the
economic recovery.

"In a speech on November 15, 2012, Federal Reserve Chairman Ben Bernanke
stated the case for housing: 'Strengthening and broadening the housing
recovery remain a critical challenge for policymakers, lenders and community
leaders.The degree to which that challenge is met will help determine the
strength and sustainability of the economic recovery and the extent to which
its benefits are broadly felt.'"

"Toll Brothers was named 2012 Builder of the Year by Professional Builder
magazine a few weeks ago.As we end 2012 and look forward to 2013, Doug and I
especially want to thank our co-workers. Their enthusiasm, diligence,
perseverance, excellence and commitment to quality is why Toll Brothers
received this honor."

Toll Brothers' financial highlights for the fourth quarter and fiscal year
ended October 31, 2012 (unaudited):

  *FY 2012's fourth-quarter net income was $411.4 million, or $2.35 per share
    diluted, compared to FY 2011's fourth-quarter net income of $15.0 million,
    or $0.09 per share diluted.
  *FY 2012's fourth quarter included a net tax benefit of $350.7 million,
    which included the reversal of $400.0 million of the Company's deferred
    tax asset valuation reserves against its deferred tax asset, offset by a
    tax provision of $49.3 million. This compared to a $0.2 million tax
    provision in FY 2011's fourth quarter.
  *FY 2012's fourth-quarter pre-tax income was $60.7 million, compared to FY
    2011's fourth-quarter pre-tax income of $15.3 million. FY 2012's
    fourth-quarter results included pre-tax write-downs of $1.5 million: $1.4
    million of the write-downs was attributable to operating communities and
    $0.3 million to owned land for future communities, offset, in part, by
    recoveries of previously recognized write-downs of $0.2 million and by
    $0.7 million of cash recoveries of prior joint venture write-offs. FY
    2011's fourth-quarter results included a pre-tax charge of $0.4 million
    associated with the early retirement of debt and pre-tax write-downs of
    $18.2 million.
  *Excluding inventory write-downs and cash recoveries of prior joint venture
    write-offs, FY 2012's fourth-quarter pre-tax income was $61.6 million,
    compared to pre-tax income of $33.9 million in FY 2011's fourth quarter,
    excluding write-downs and debt retirement charges.
  *FY 2012's fourth-quarter gross margin improved to 20.1% from 15.3% in FY
    2011's fourth quarter. Excluding write-downs and interest, FY 2012's
    fourth-quarter gross margin improved to 24.6% from 24.2% in FY 2011's
    fourth quarter. For FY 2012, gross margin, excluding interest and
    write-downs, was 24.0%, compared to 23.3% for FY 2011.
  *FY 2012's net income was $487.1 million, or $2.86 per share diluted,
    compared to FY 2011's net income of $39.8 million, or $0.24 per share
    diluted.
  *FY 2012 included a net tax benefit of $374.2 million, which included the
    reversal of $400.0 million of the Company's deferred tax asset valuation
    reserves against its deferred tax asset, offset by a tax provision of
    $25.8 million. This compared to a $69.2 million net tax benefit in FY
    2011.
  *FY 2012's pre-tax income was $112.9 million, compared to FY 2011's pre-tax
    loss of $29.4 million.FY 2012's results included pre-tax write-downs of
    $14.7 million: $13.1 million of the write-downs was attributable to
    operating communities, $1.2 million to owned land for future communities
    and $0.5 million to land controlled for future communities, offset, in
    part, by $2.3 million of cash recoveries of prior joint venture
    write-offs.FY 2011's results included pre-tax write-downs totaling $92.7
    million and pre-tax charges of $3.8 million due to early retirement of
    debt.
  *Excluding write-downs and cash recoveries of prior joint venture
    write-offs, FY 2012's pre-tax income was $125.4 million, compared to
    pre-tax income of $67.2 million for FY 2011.
  *Interest included in cost of sales was 4.3% of revenues in FY 2012's
    fourth quarter, compared to 4.7% of revenues in FY 2012's third quarter,
    and down from 5.0% in FY 2011's fourth quarter.
  *FY 2012's fourth-quarter revenues and home building deliveries of $632.8
    million and 1,088 units increased 48% in dollars and 44% in units,
    compared to FY 2011's fourth-quarter results of $427.8 million and 757
    units.The average price of homes delivered was $582,000, compared to
    $576,000 in FY 2012's third quarter and $565,000 in FY 2011's fourth
    quarter.
  *For FY 2012, home building revenues of $1.88 billion and 3,286 units
    increased 28% in dollars and 26% in units, compared to FY 2011's results
    of $1.48 billion and 2,611 units.
  *In FY 2012's fourth quarter, unconsolidated entities in which the Company
    had an interest delivered $13.6 million of homes, compared to $34.8
    million in the fourth quarter of FY 2011. In FY 2012, unconsolidated
    entities in which the Company had an interest delivered $89.9 million of
    homes, compared to $233.4 million in FY 2011.The Company recorded its
    share of the results from these entities' operations in "(Income/(Loss)
    from Unconsolidated Entities" on the Company's Statement of Operations.
  *The Company signed gross contracts of $715.4 million and 1,151 units in FY
    2012's fourth quarter, an increase of 70% and 65%, respectively, compared
    to $421.4 million and 699 gross contracts signed in FY 2011's fourth
    quarter. The Company signed gross contracts of $2.67 billion and 4,341
    units in FY 2012, an increase of 56% in dollars and 46% in units, compared
    to the $1.71 billion and 2,965 gross contracts signed in FY 2011.
  *FY 2012's fourth-quarter net signed contracts of $684.1 million and 1,098
    rose 75% in dollars and 70% in units, compared to FY 2011's fourth-quarter
    net signed contracts of $390.0 million and 644 units. The Company's FY
    2012 net contracts of $2.56 billion and 4,159 units increased by 59% and
    49%, respectively, compared to net contracts of $1.60 billion and 2,784
    units in FY 2011.
  *On a per-community basis, FY 2012's fourth-quarter net signed contracts of
    4.86 units per community were 60% greater than FY 2011's fourth-quarter
    total of 3.04; 65% greater than FY 2010's fourth-quarter total of 2.94
    units; 37% greater than FY 2009's fourth-quarter total of 3.56 units; and
    161% greater than FY 2008's fourth-quarter total of 1.86; however, they
    were still below the Company's historical fourth-quarter average, dating
    back to 1990, of 5.82 units per community.On a per-community basis, FY
    2012's net signed contracts of 18.2 units per community were the highest
    for any fiscal year since FY 2006.
  *The average price per unit of net contracts signed in FY 2012's fourth
    quarter was $623,000, compared to $603,000 in FY 2012's third quarter and
    $606,000 in FY 2011's fourth quarter.
  *FY 2012's fourth-quarter cancellation rate (current-quarter cancellations
    divided by current-quarter signed contracts) was 4.6%, compared to 7.9% in
    FY 2011's fourth quarter. As a percentage of beginning-quarter backlog, FY
    2012's fourth-quarter cancellation rate was 2.1%, compared to 3.1% in FY
    2011's fourth quarter.
  *The Company ended FY 2012 with a backlog of approximately $1.67 billion
    and 2,569 units, which increased 70% in dollars and 54% in units, compared
    to FY 2011's year-end backlog of $981.1 million and 1,667 units.
  *In FY 2012's fourth quarter, SG&A as a percentage of revenue improved to
    11.8%, compared to 16.0% in FY 2011's fourth quarter, due primarily to
    higher revenues and an insurance reserve reversal of $8.0 million. For FY
    2012, SG&A as a percentage of revenue improved to 15.3% compared to 17.7%
    for FY 2011.
  *At October 31, 2012, unconsolidated entities in which the Company had an
    interest had a backlog of $27.2 million, compared to $21.0 million at
    October 31, 2011. In FY 2012's fourth quarter and twelve-month periods,
    such unconsolidated entities produced $16.4 million and $96.1 million of
    contracts, respectively, compared to $29.6 million and $163.1 million,
    respectively, in the previous year.
  *The Company ended FY 2012 with $1.22 billion of cash and marketable
    securities, compared to $877.4 million at FY 2012's third-quarter end and
    $1.14 billion at FYE 2011. The Company used $92.0 million on land
    purchases in FY 2012's fourth quarter. At FYE 2012, the Company also had
    $814.9 million available under its $885 million 12-bank credit facility,
    which matures in October 2014.
  *The Company's Stockholders' Equity at FYE 2012 was $3.12 billion, compared
    to $2.59 billion at FYE 2011.
  *The Company ended FY 2012 with a net-debt-to-capital ratio^(1) of 23.6%,
    compared to 27.5% at FY 2012's third-quarter end and 15.0% at FYE 2011.
  *The Company ended FY 2012 with approximately 40,400 lots owned and
    optioned, compared to 39,200 one quarter earlier, 37,500 one year earlier,
    and 91,200 at its peak at FY 2006's second-quarter end. This is exclusive
    of approximately 800 lots the Company expects to buy from its Baker Ranch
    joint venture, the operating terms of which were finalized shortly after
    the quarter ended. At FYE 2012, approximately 31,300 of the 40,400 lots
    were owned, of which approximately 12,700 lots, including those in
    backlog, were substantially improved.
  *In the fourth quarter of FY 2012, the Company purchased 1,899 lots for
    approximately $92.0 million, and, for the full fiscal year, purchased
    5,877 lots for approximately $456.5 million.
  *The Company expects to end FY 2013 with between 225 and 255 selling
    communities, compared to its peak of 325 communities at FY 2007's
    second-quarter end. The Company ended FY 2012 with 224 selling
    communities, compared to 226 at FY 2012's third-quarter end and 215 at FYE
    2011.
  *Based on FYE 2012's backlog and the pace of activity at its communities,
    the Company currently estimates it will deliver between 3,600 and 4,400
    homes in FY 2013.It believes the average delivered price for FY 2013 will
    be between $595,000 and $630,000 per home.
  *In FY 2012's fourth quarter and fiscal year, the Company's Gibraltar
    Capital and Asset Management subsidiary reported a pre-tax loss of $0.4
    million and pre-tax income of $7.2 million respectively, compared to FY
    2011's fourth quarter and fiscal-year pre-tax income of $1.7 million and
    $6.9 million, respectively.

(1)Net debt-to-capital is calculated as total debt minus mortgage warehouse
loans minus cash and marketable securities, divided by total debt minus
mortgage warehouse loans minus cash and marketable securities plus
stockholders' equity.

Toll Brothers will be broadcasting live via the Investor Relations section of
its website, www.tollbrothers.com, a conference call hosted by CEO Douglas C.
Yearley, Jr. at 2:00 p.m. (EST) today, December 4, 2012, to discuss these
results and its outlook for FY 2013. To access the call, enter the Toll
Brothers website, click on the Investor Relations page, and select "Conference
Calls." Participants are encouraged to log on at least fifteen minutes prior
to the start of the presentation to register and download any necessary
software.

The call can be heard live with an online replay which will follow. Podcast
(iTunes required) and MP3 format replays will be available approximately 48
hours after the conference call via the "Conference Calls" section of the
Investor Relations portion of the Toll Brothers website.

Toll Brothers, Inc. is the nation's leading builder of luxury homes. The
Company began business in 1967 and became a public company in 1986.Its common
stock is listed on the New York Stock Exchange under the symbol "TOL."The
Company serves move-up, empty-nester, active-adult, and second-home buyers and
operates in 20 states: Arizona, California, Colorado, Connecticut, Delaware,
Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New
Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas,
Virginia, and Washington.

Toll Brothers builds an array of luxury residential communities, principally
on land it develops and improves: single-family detached and attached home
communities, master planned resort-style golf communities, and urban low-,
mid- and high-rise communities. The Company operates its own architectural,
engineering, mortgage, title, land development and land sale, golf course
development and management, home security, and landscape subsidiaries. The
Company also operates its own lumber distribution, house component assembly,
and manufacturing operations.The Company acquires and develops commercial
properties through Toll Commercial and its affiliate, Toll Brothers Realty
Trust, and purchases distressed loan and real estate asset portfolios through
its wholly owned subsidiary, Gibraltar Capital and Asset Management.

Toll Brothers is honored to have won the three most coveted awards in the
homebuilding industry: America's Best Builder from the National Association of
Home Builders, the National Housing Quality Award and Builder of the
Year.Toll Brothers was awarded Builder of the Year for 2012 and is the only
two-time recipient.Toll Brothers proudly supports the communities in which it
builds; among other philanthropic pursuits, the Company sponsors the Toll
Brothers Metropolitan Opera International Radio Network, bringing opera to
neighborhoods throughout the world. For more information, visit
www.tollbrothers.com

Information presented herein for the fourth quarter and fiscal year ended
October 31, 2012 is subject to finalization of the Company's regulatory
filings, related financial and accounting reporting procedures and external
auditor procedures.

Certain information included in this release is forward-looking within the
meaning of the Private Securities Litigation Reform Act of 1995, including,
but not limited to, information related to: anticipated operating results;
anticipated financial performance, resources and condition; selling
communities; home deliveries; average home prices; consumer demand and
confidence; contract pricing; business and investment opportunities; and
market and industry trends.

Such forward-looking information involves important risks and uncertainties
that could significantly affect actual results and cause them to differ
materially from expectations expressed herein and in other Company reports,
SEC filings, statements and presentations. These risks and uncertainties
include, among others: local, regional, national and international economic
conditions; fluctuating consumer demand and confidence; interest and
unemployment rates; changes in sales conditions, including home prices, in the
markets where we build homes; conditions in our newly entered markets and
newly acquired operations; the competitive environment in which we operate;
the availability and cost of land for future growth; conditions that could
result in inventory write-downs or write-downs associated with investments in
unconsolidated entities; the ability to recover our deferred tax assets; the
availability of capital; uncertainties in the capital and securities markets;
liquidity in the credit markets; changes in tax laws and their interpretation;
effects of governmental legislation and regulation; the outcome of various
legal proceedings; the availability of adequate insurance at reasonable cost;
the impact of construction defect, product liability and home warranty claims,
including the adequacy of self-insurance accruals, and the applicability and
sufficiency of our insurance coverage; the ability of customers to obtain
financing for the purchase of homes; the ability of home buyers to sell their
existing homes; the ability of the participants in various joint ventures to
honor their commitments; the availability and cost of labor and building and
construction materials; the cost of raw materials; construction delays;
domestic and international political events; and weather conditions. For a
more detailed discussion of these factors, see the information under the
captions "Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our most recent annual report on Form
10-K and our subsequent quarterly reports on Form 10-Q filed with the
Securities and Exchange Commission.

Any or all of the forward-looking statements included in this release are not
guarantees of future performance and may turn out to be inaccurate.
Forward-looking statements speak only as of the date they are made. The
Company undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise.


TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)

                                                     October 31, October 31,
                                                       2012        2011
                                                      (Unaudited) 
ASSETS                                                            
Cash and cash equivalents                              $778,824   $906,340
Marketable securities                                  439,068    233,572
Restricted cash                                        47,276     19,760
Inventory                                              3,761,187  3,416,723
Property, construction and office equipment, net       106,214   99,712
Receivables, prepaid expenses and other assets         148,315   105,576
Mortgage loans receivable                              86,386     63,175
Customer deposits held in escrow                       29,579     14,859
Investments in and advances to unconsolidated entities 330,617    126,355
Investment in non-performing loan portfolios and       95,522    69,174
foreclosed real estate
Deferred tax assets                                    364,125   
                                                      $6,187,113 $5,055,246
                                                                 
LIABILITIES AND EQUITY                                            
Liabilities:                                                      
Loans payable                                          $99,817    $106,556
Senior notes                                           2,080,463  1,490,972
Mortgage company warehouse loan                        72,664     57,409
Customer deposits                                      142,977    83,824
Accounts payable                                       99,911     96,817
Accrued expenses                                       476,350    521,051
Income taxes payable                                   87,060     106,066
Total liabilities                                      3,059,242  2,462,695
                                                                 
Equity:                                                           
Stockholders' Equity                                              
Common stock                                           1,687      1,687
Additional paid-in capital                             404,418    400,382
Retained earnings                                      2,721,397  2,234,251
Treasury stock, at cost                                (983)     (47,065)
Accumulated other comprehensive loss                   (4,819)    (2,902)
Total stockholders' equity                             3,121,700  2,586,353
Noncontrolling interest                                6,171      6,198
Total equity                                           3,127,871  2,592,551
                                                      $6,187,113 $5,055,246

                                      


TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands, except per share data)
(unaudited)

                                 Twelve Months Ended     Three Months Ended
                                  October 31,             October 31,
                                 2012        2011        2012       2011
                                                                 
Revenues                          $ 1,882,781 $ 1,475,881 $632,826  $427,785
                                                                 
Cost of revenues                  1,532,095  1,260,770  505,738   362,504
Selling, general                  287,257    261,355    74,472    68,449
andadministrative expenses
Interest expense                  --         1,504      --        --
                                 1,819,352  1,523,629  580,210   430,953
                                                                 
Income (loss) from operations     63,429     (47,748)   52,616    (3,168)
Other:                                                            
Income (loss) from unconsolidated 23,592     (1,194)   4,244    9,811
entities
Other income - net                25,921     23,403     3,889     9,047
Expenses related to early                    (3,827)             (413)
retirement of debt
Income (loss) before income taxes 112,942   (29,366)  60,749   15,277
Income tax (benefit) provision    (374,204)  (69,161)   (350,668) 234
Net income                        $487,146   $39,795    $411,417  $15,043
                                                                 
Income per share:                                                 
Basic                             $2.91      $0.24      $2.44     $0.09
Diluted                           $2.86      $0.24      $2.35     $0.09
                                                                 
Weighted-average number of                                        
shares:
Basic                             167,346    167,140    168,416   166,896
Diluted                           170,154    168,381    174,775   167,525

                                      


TOLL BROTHERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)

                                       Twelve Months Ended Three Months Ended
                                        October 31,         October 31,
                                       2012      2011      2012      2011
                                                                  
Impairment charges (recoveries)                                    
recognized:
Cost of sales                           $14,739  $51,837  $1,491   $16,976
Income (loss) fromUnconsolidated       (2,310)  40,870   (689)   1,270
entities
                                       $12,429  $92,707  $802     $18,246
                                                                  
Depreciation and amortization           $13,468  $13,370  $3,750   $2,710
Interest incurred                       $125,783 $114,761 $ 32,756  $27,941
Interest expense:                                                  
Charged to cost of sales                $87,117  $77,623  $ 27,294  $21,296
Charged to selling, generaland                  1,504             
administrative expense
Charged to other income-net             3,404   1,155    1,740    294
Interest reclassified toproperty                3,000            
construction and office equipment
Capitalized interest oninvestments in  3,438           1,178  
unconsolidated entities
                                                                  
Total                                   $93,959  $83,282  $ 30,212  $21,590
                                                                  
Home sites controlled:                                             
Owned                                   31,327   30,199            
Optioned                                9,023    7,298             
                                       40,350   37,497            


Toll Brothers operates in four geographic segments:
             
North:        Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New
              Jersey and New York
Mid-Atlantic: Delaware, Maryland, Pennsylvania and Virginia
South:        Florida, North Carolina, South Carolina and Texas
West:         Arizona, California, Colorado, Nevada, and Washington

                                      

                                        
                      Three Months Ended Three Months Ended
                       October 31,        October 31,
                      Units              $ (Millions)
HOME BUILDING REVENUES 2012      2011     2012       2011
                                                 
North                  274      205     $149.9    $108.0
Mid-Atlantic           366      262     204.4     148.7
South                  182      159     110.8     87.7
West                   266      131     167.7     83.4
Total consolidated     1,088    757     $632.8    $427.8
                                                 
CONTRACTS                                         
                                                 
North                  239      179     $139.2    $115.4
Mid-Atlantic           303      225     171.1     125.0
South                  259      133     169.1     81.9
West                   297      107     204.7     67.7
Total consolidated     1,098    644     $684.1    $390.0
                                                 
BACKLOG                                           
                                                 
North                  655       553      $449.2    $307.4
Mid-Atlantic           658       487      386.2     288.9
South                  749       442      483.5     263.2
West                   507       185      351.0     121.6
Total consolidated     2,569     1,667    $ 1,669.9  $981.1

                                      

                                         
                      Twelve Months Ended Twelve Months Ended
                       October 31,         October 31,
                      Units               $ (Millions)
HOME BUILDING REVENUES 2012      2011      2012       2011
                                                  
North                  891      718      $513.7    $381.6
Mid-Atlantic           1,025    887      564.5     499.7
South                  626      522      366.7     285.0
West                   744      484      437.9     309.6
Total consolidated     3,286    2,611   $ 1,882.8  $ 1,475.9
                                                  
CONTRACTS                                          
                                                  
North                  993      750      $655.6    $429.6
Mid-Atlantic           1,196    899      661.6     504.3
South                  933      668      587.0     388.5
West                   1,037    467      653.7     282.4
Total consolidated     4,159    2,784    $ 2,557.9  $ 1,604.8

                                      


Unconsolidated entities:
Information related to revenues and contracts of entities in which we have an
interest for the three-month and twelve-months periods ended October 31, 2012
and 2011, and for backlog at October 31, 2012 and 2011 is as follows:
                                                             
                          2012        2011        2012          2011
                           Units       Units       $(Mill)       $(Mill)
Three months ended October                                    
31,
Revenues                   14          42          $13.6        $34.8
Contracts                  17          33          $16.4        $29.6
                                                             
Twelve months ended                                           
October 31,
Revenues                   96         284         $89.9        $233.4
Contracts                  106         184         $96.1        $163.1
                                                             
                                                             
Backlog at October 31,     36         26       $27.2        $21.0

CONTACT: Frederick N. Cooper (215) 938-8312
         fcooper@tollbrothersinc.com
         Joseph R. Sicree (215) 938-8045
         jsicree@tollbrothersinc.com

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