Toll Brothers Reports 4th Qtr and FYE 2013 Results

Toll Brothers Reports 4th Qtr and FYE 2013 Results

HORSHAM, Pa., Dec. 10, 2013 (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, 2013.

La Morra EPR

Fourth Quarter Financial Highlights:

  *FY 2013's fourth quarter net income was $94.9 million, or $0.54 per share
    diluted, compared to $411.4 million, or $2.35 per share in FY 2012's
    fourth quarter. Included in FY 2013's fourth quarter net income was a
    deferred tax asset valuation allowance reversal of $4.6 million, compared
    to a deferred tax asset valuation allowance reversal of $394.7 million in
    FY 2012's fourth quarter.
  *FY 2013's pre-tax income was $150.2 million, compared to $60.7 million in
    FY 2012's fourth quarter, an increase of 147%.
  *Revenues of $1.04 billion and homebuilding deliveries of 1,485 units rose
    65% in dollars and 36% in units, compared to FY 2012's fourth quarter.
  *Net signed contracts of $839.0 million and 1,163 units rose 23% in dollars
    and 6% in units, compared to FY 2012's fourth quarter. On a per-community
    basis, FY 2013's fourth-quarter net signed contracts of 5.17 units per
    community, up 6% versus FY 2012's same period, were the highest for any
    fourth quarter since FY 2005.
  *Backlog of $2.63 billion and 3,679 units rose 57% in dollars and 43% in
    units, compared to FY 2012's fourth-quarter-end backlog.
  *The average price of homes delivered was $703,000, compared to $651,000 in
    FY 2013's third quarter and $582,000 in FY 2012's fourth quarter.
  *Gross margin, excluding interest and write-downs, was 25.4%, compared to
    24.6% in FY 2012's fourth quarter. Operating margin improved to 12.3% from
    8.3% in FY 2012's fourth quarter.
  *SG&A as a percentage of revenue improved to 8.9%, compared to 11.8% in FY
    2012's fourth quarter. FY 2013's fourth quarter SG&A included a benefit of
    $4.8 million from insurance reversals, compared to $8.3 million in FY
    2012's fourth quarter.
  *The Company ended FY 2013 with 232 selling communities, compared to 225 at
    FY 2013's third-quarter end, and 224 at FYE 2012. At FYE 2013, the Company
    had approximately 48,600 lots owned and optioned, compared to
    approximately 47,200 at FY 2013's third-quarter end and approximately
    40,400 one year ago. Including its planned Shapell acquisition, the
    Company expects to end FY 2014 with between 250 and 290 selling
    communities.

FY 2013 Financial Highlights

  *FY 2013 net income was $170.6 million, or $0.97 per share diluted,
    compared to FY 2012's net income of $487.1 million, or $2.86 per share
    diluted. Included in FY 2013's full year net income was a deferred tax
    asset valuation allowance reversal of $4.6 million, compared to a deferred
    tax asset valuation allowance reversal of $394.7 million in FY 2012.
  *Pre-tax income was $267.7 million, compared to pre-tax income of $112.9
    million in FY 2012.
  *Revenues of $2.67 billion and homebuilding deliveries of 4,184 units rose
    42% in dollars and 27% in units, compared to FY 2012.
  *Net signed contracts of $3.63 billion and 5,294 units rose 42% in dollars
    and 27% in units, compared to FY 2012. On a per-community basis, FY 2013's
    net signed contracts of 23.5 units per community were the highest for any
    fiscal year since FY 2005.
  *Gross margin, excluding interest and write-downs, was 24.6%, compared to
    24.0% for FY 2012. Operating margin improved to 7.5% from 3.4% in FY
    2012's fourth quarter.
  *SG&A as a percentage of revenue improved to 12.7% compared to 15.3% for FY
    2012.

Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "With
revenues and contracts up over 40%, backlog up over 50% and operating income
up over 200%, FY 2013 was an excellent year for Toll Brothers.

"We started FY 2013 very strong, building on the sales momentum of FY
2012.Buoyed by historic low interest rates and significant pent-up demand, we
raised prices and accelerated per-community home sales paces as the housing
market continued its recovery. Our first nine-months' contracts rose 35% in
units and 49% in dollars.

"In our fourth quarter, the impact of those price increases, combined with
uncertainty from the political discord in Washington and a sudden rise in
interest rates, contributed to a leveling of demand. In our fourth quarter,
contract growth was 6% in units, but was still up 23% in dollars, against
strong growth comparisons: FY 2012's fourth quarter contracts were up 70% and
75%, respectively, versus FY 2011's fourth quarter.

"We are now six weeks into our first quarter of FY 2014. In the most recent
five weeks, contracts have been flat to last year.In the first week of FY
2014, we signed 77 contracts compared to 149 in FY 2013's first week, as
Hurricane Sandy shut down sales in many of our markets during the last weekend
of October 2012 and pushed contracts to the first week of November. We believe
this leveling of demand will prove temporary based on still-significant
pent-up demand, the gradual strengthening of the economy and the improving
prospects of our affluent customers.

"We were pleased by improvements in our gross and operating margins, as the
price increases instituted in previous quarters were reflected in this
quarter's results. Our home building operation has ramped up to deliver our
growing backlog and our joint ventures and ancillary businesses also
contributed solid results.

"We increased our land position by 20% from one year ago to approximately
48,600 lots, a total that will increase again in coming months when we
complete the acquisition of Shapell Homes. We bought land in nearly all our 19
states, and strategically expanded our product lines into a number of key
markets in FY 2013.

"Most significantly, in early November of 2013, we announced the acquisition
of Shapell Homes of California for $1.60 billion, which we expect to close in
early calendar 2014.Shapell has a long and illustrious history as one of
California's largest and most successful land development and home building
companies in the affluent coastal markets of Northern and Southern California.
This acquisition provides us with California's premier land portfolio
consisting of approximately 5,200 entitled lots in affluent,
high-barrier-to-entry markets: the San Francisco Bay area, metro Los Angeles,
Orange County and the Carlsbad market. Since this announcement at the start of
FY 2014, we have raised $600 million of five- and ten-year debt in the public
capital markets, issued $230 million of stock and, at the end of FY 2013,
secured an additional $500 million 364-day bank facility to fund the Shapell
acquisition and provide ample liquidity for future growth.

"As we look forward to FY 2014, we see our revenues and community count
growing, margins improving and our profitability increasing."

Martin P. Connor, Toll Brothers' chief financial officer, stated: "We ended FY
2013 with $825 million of cash and marketable securities on our balance sheet
and an additional $1.46 billion of liquidity through our various committed
bank credit facilities.We remain focused on maintaining the strong financial
flexibility that enabled us to weather the recent unprecedented downturn and
then expand opportunistically as the recovery has unfolded. This flexibility
allowed us to enter Seattle in November 2011 through our acquisition of
CamWest, and, more recently, to expand our presence in California through our
upcoming acquisition of Shapell. It also has allowed us to grow our apartment
development business over the last two years with four projects totaling
approximately 1,500 units currently under development and several others in
the pipeline.

"During FY 2013 and into the start of FY 2014, we have raised over $3.2
billion via corporate and joint venture project financings while maintaining
our current credit ratings, which were reaffirmed by the three agencies in
early November after our announcement of the Shapell acquisition.This
acquisition will be paid for using the proceeds from our stock issuance, our
recent debt deals and a planned future draw of approximately $800 million on
our pre-existing $1.035 billion long-term line of credit. Upon completion of
the transaction, we project we will still have in excess of $1 billion of
available liquidity for growth.

"In addition to our solid homebuilding results, our Gibraltar subsidiary
generated approximately $16 million in pre-tax profits in FY 2013 while we
produced approximately $37.5 million of pre-tax income in FY 2013 from our
other joint ventures and ancillary businesses and other items.

"Subject to the caveats in our Statement on Forward-Looking Information
included in this release, we offer the following limited guidance. We ended FY
2013 with a backlog of $2.63 billion and 3,679 units, up 57% in dollars and
43% in units, compared to FYE 2012.With this backlog, the lowest cancellation
rate in our industry, and the pending acquisition of Shapell, we believe we
will deliver between 5,100 and 6,100 homes in FY 2014 at an average price of
between $670,000 and $720,000 per home."

Robert I. Toll, executive chairman, stated: "We believe that Toll Brothers, as
well as the other public home building companies, still have significant room
for growth. The economy, while still improving slowly, is far from fully
recovered. National housing starts, although projected to be up in 2013
compared to 2012, will still be well below the average of the last forty years
despite an increased population.

"Due to a shortage of approved home sites, labor constraints in some markets,
and a lack of available capital for small and mid-sized privately-owned
builders, the supply of luxury homes is still not meeting current demand, let
alone the pent-up demand of the last seven years.This supply constraint could
lead to a further escalation in luxury home prices above and beyond normal
trends until industry production returns to historic equilibrium."

"Supported by our solid land portfolio, community count growth, strong
financial position, broad product diversification, industry-leading brand, and
dedicated team, we believe that FY 2014 will be another year of growth for
Toll Brothers."

Toll Brothers' financial highlights for the fourth quarter and fiscal year
ended October 31, 2013 (unaudited):

  *FY 2013's fourth quarter net income was $94.9 million, or $0.54 per share
    diluted, compared to $411.4 million, or $2.35 per share in FY 2012's
    fourth quarter. Included in FY 2013's fourth quarter net income was a
    deferred tax asset valuation allowance reversal of $4.6 million, compared
    to a deferred tax asset valuation allowance reversal of $394.7 million in
    FY 2012's fourth quarter.
    
  *FY 2013's fourth-quarter pre-tax income was $150.2 million, compared to FY
    2012's fourth-quarter pre-tax income of $60.7 million. FY 2013's
    fourth-quarter results included pre-tax write-downs of $2.5 million: $2.2
    million of the write-downs were attributable to operating communities, and
    $0.3 million to land controlled for future communities. FY 2012's
    fourth-quarter results included pre-tax write-downs of $1.5 million: $1.4
    million of the write-downs were 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 2013's fourth-quarter gross margin improved to 21.3% from 20.1% in FY
    2012's fourth quarter. Excluding write-downs and interest, FY 2013's
    fourth-quarter gross margin improved to 25.4% from 24.6% in FY 2012's
    fourth quarter. For FY 2013, gross margin, excluding interest and
    write-downs, was 24.6%, compared to 24.0% for FY 2012.
    
  *FY 2013 net income was $170.6 million, or $0.97 per share diluted,
    compared to FY 2012's net income of $487.1 million, or $2.86 per share
    diluted. Included in FY 2013's full year net income was a deferred tax
    asset valuation allowance reversal of $4.6 million, compared to a deferred
    tax asset valuation allowance reversal of $394.7 million in FY 2012.
    
  *FY 2013's pre-tax income was $267.7 million, compared to FY 2012's pre-tax
    income of $112.9 million.FY 2013's results included pre-tax write-downs
    of $4.5 million: $3.3 million of the write-downs were attributable to
    operating communities and $1.2 million to land controlled for future
    communities. FY 2012's results included pre-tax write-downs of $14.7
    million: $13.1 million of the write-downs were 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.
    
  *Interest included in cost of sales was 3.9% of revenues in FY 2013's
    fourth quarter, compared to 4.2% of revenues in FY 2013's third quarter,
    and down from 4.3% in FY 2012's fourth quarter.
    
  *FY 2013's fourth-quarter revenues and home building deliveries of $1.04
    billion and 1,485 units increased 65% in dollars and 36% in units,
    compared to FY 2012's fourth-quarter results of $632.8 million and 1,088
    units.The average price of homes delivered was $703,000, compared to
    $651,000 in FY 2013's third quarter and $582,000 in FY 2012's fourth
    quarter.
    
  *For FY 2013, home building revenues of $2.67 billion and 4,184 units
    increased 42% in dollars and 27% in units, compared to FY 2012's results
    of $1.88 billion and 3,286 units.
    
  *In FY 2013's fourth quarter, unconsolidated entities in which the Company
    had an interest delivered $8.8 million of homes, compared to $13.6 million
    in the fourth quarter of FY 2012. In FY 2013, unconsolidated entities in
    which the Company had an interest delivered $37.5 million of homes,
    compared to $89.9 million in FY 2012.The Company recorded its share of
    the results from these entities' operations in "Income from Unconsolidated
    Entities" on the Company's Statement of Operations.
    
  *FY 2013's fourth-quarter net signed contracts of $839.0 million and 1,163
    rose 23% in dollars and 6% in units, compared to FY 2012's fourth-quarter
    net signed contracts of $684.1 million and 1,098 units. The Company's FY
    2013 net contracts of $3.63 billion and 5,294 units increased by 42% and
    27%, respectively, compared to net contracts of $2.56 billion and 4,159
    units in FY 2012.
    
  *On a per-community basis, FY 2013's fourth-quarter net signed contracts of
    5.17 units per community were 6% greater than FY 2012's fourth-quarter
    total of 4.86; 70% greater than FY 2011's fourth-quarter total of 3.04;
    76% greater than FY 2010's fourth-quarter total of 2.94 units; and 45%
    greater than FY 2009's fourth-quarter total of 3.56 units; however, they
    were still below the Company's historical fourth-quarter average, dating
    back to 1990, of 5.80 units per community.On a per-community basis, FY
    2013's net signed contracts of 23.5 units per community were the highest
    for any fiscal year since FY 2005.
    
  *The average price per unit of net contracts signed in FY 2013's fourth
    quarter was $721,000, compared to $706,000 in FY 2013's third quarter and
    $623,000 in FY 2012's fourth quarter.
    
  *FY 2013's fourth-quarter cancellation rate (current-quarter cancellations
    divided by current-quarter signed contracts) was 5.5%, compared to 4.6% in
    FY 2012's fourth quarter. As a percentage of beginning-quarter backlog, FY
    2013's fourth-quarter cancellation rate was 1.7%, compared to 2.1% in FY
    2012's fourth quarter.
    
  *The Company ended FY 2013 with a backlog of approximately $2.63 billion
    and 3,679 units, which increased 57% in dollars and 43% in units, compared
    to FY 2012's year-end backlog of $1.67 billion and 2,569 units.
    
  *In FY 2013's fourth quarter, SG&A as a percentage of revenue improved to
    8.9%, compared to 11.8% in FY 2012's fourth quarter.FY 2013's fourth
    quarter SG&A included a benefit of $4.8 million from insurance reversals,
    compared to $8.3 million in FY 2012's fourth quarter.For FY 2013, SG&A as
    a percentage of revenue improved to 12.7% compared to 15.3% for FY 2012.
    
  *At October 31, 2013, unconsolidated entities in which the Company had an
    interest had a backlog of $46.2 million, compared to $27.2 million at
    October 31, 2012. In FY 2013's fourth quarter and twelve-month periods,
    such unconsolidated entities produced $16.7 million and $56.6 million of
    contracts, respectively, compared to $16.4 million and $96.1 million,
    respectively, in the previous year.
    
  *The Company ended FY 2013 with $825.5 million of cash and marketable
    securities, compared to $1.02 billion at FY 2013's third-quarter end and
    $1.22 billion at FYE 2012. At FYE 2013, the Company also had $958.4
    million available under its $1.035 billion 15-bank credit facility, which
    matures in August 2018.
    
  *The Company's Stockholders' Equity at FYE 2013 was $3.33 billion, compared
    to $3.12 billion at FYE 2012.
    
  *The Company ended FY 2013 with a net-debt-to-capital ratio^(1) of 32.5%,
    compared to 31.9% at FY 2013's third-quarter end and 23.6% at FYE 2012.
    
  *The Company ended FY 2013 with approximately 48,600 lots owned and
    optioned, compared to 47,200 one quarter earlier, 40,400 one year earlier,
    and 91,200 at its peak at FY 2006's second-quarter end. At FYE 2013,
    approximately 34,000 of the 48,600 lots were owned, of which approximately
    12,600 lots, including those in backlog, were substantially improved.
    
  *In the fourth quarter of FY 2013, the Company purchased 2,271 lots for
    approximately $364.4 million, and, for the full fiscal year, purchased
    7,828 lots for approximately $995.3 million.
    
  *The Company expects to end FY 2014 with between 250 and 290 selling
    communities, compared to its peak of 325 communities at FY 2007's
    second-quarter end. The Company ended FY 2013 with 232 selling
    communities, compared to 225 at FY 2013's third-quarter end and 224 at FYE
    2012.
    
  *Based on FYE 2013's backlog and the pace of activity at its communities,
    the Company currently estimates it will deliver between 5,100 and 6,100
    homes in FY 2014.It believes the average delivered price for FY 2014 will
    be between $670,000 and $720,000 per home.
    
  *In FY 2013's fourth quarter and fiscal year, the Company's Gibraltar
    Capital and Asset Management subsidiary reported pre-tax income of $7.1
    million and $15.9 million respectively, compared to FY 2012's fourth
    quarter and fiscal-year pre-tax loss of $0.4 million and pre-tax income of
    $7.2 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 10, 2013, to discuss these
results and its outlook for FY 2014. 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 after the
conference call via the "Conference Calls" section of the Investor Relations
portion of the Toll Brothers website.

Toll Brothers, Inc., A FORTUNE 1000 Company 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 19 states: Arizona, California, Colorado,
Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan,
Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Texas,
Virginia, and Washington.The Company also operates in the District of
Columbia.

Toll Brothers builds an array of luxury residential single-family detached,
attached home, master planned resort-style golf, and urban low-, mid- and
high-rise communities, principally on land it develops and improves. 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 purchases distressed loan and real estate asset portfolios through its
wholly owned subsidiary, Gibraltar Capital and Asset Management. The Company
acquires and develops commercial and apartment properties through Toll
Commercial and Toll Apartment Living, and the affiliated Toll Brothers Realty
Trust, and develops urban low-, mid- and high-rise for-sale condominiums
through Toll Brothers City Living.

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 in 2012 as well as in
1988, and is the first 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, 2013 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; market
and industry trends; consummation of the proposed transaction with Shapell and
the anticipated benefits to be realized therefrom; consummation of debt
financing transactions; and post-closing asset sales.

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; weather conditions; consummation
of the proposed transaction with Shapell and the anticipated benefits to be
realized therefrom; consummation of debt financing transactions; and
post-closing asset sales. 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,
                                                       2013        2012
                                                      (Unaudited) 
ASSETS                                                            
Cash and cash equivalents                              $772,972   $778,824
Marketable securities                                  52,508     439,068
Restricted cash                                        32,036     47,276
Inventory                                              4,650,412  3,732,703
Property, construction and office equipment, net       131,320     109,971
Receivables, prepaid expenses and other assets         229,295     173,042
Mortgage loans held for sale                           113,517    86,386
Customer deposits held in escrow                       46,888    29,579
Investments in and advances to unconsolidated entities 403,133     330,617
Investment in distressed loans                         36,374     37,169
Investment in foreclosed real estate                   72,972     58,353
Deferred tax assets, net of valuation allowances       286,032     358,056
                                                      $6,827,459 $6,181,044
                                                                 
LIABILITIES AND EQUITY                                            
Liabilities:                                                      
Loans payable                                          $107,222   $99,817
Senior notes                                           2,321,442  2,080,463
Mortgage company warehouse loan                        75,000     72,664
Customer deposits                                      212,669    142,977
Accounts payable                                       167,787    99,911
Accrued expenses                                       522,987    476,350
Income taxes payable                                   81,188    80,991
Total liabilities                                      3,488,295  3,053,173
                                                                 
Equity:                                                           
Stockholders' Equity                                              
Common stock                                           1,694      1,687
Additional paid-in capital                             441,677    404,418
Retained earnings                                      2,892,003  2,721,397
Treasury stock, at cost                                --         (983)
Accumulated othercomprehensive loss                   (2,387)    (4,819)
Total stockholders' equity                             3,332,987  3,121,700
Noncontrolling interest                                6,177      6,171
Total equity                                           3,339,164 3,127,871
                                                      $6,827,459 $6,181,044


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,
                               2013        2012        2013        2012
                                                                
Revenues                        $ 2,674,299 $ 1,882,781 $ 1,044,534 $632,826
                                                                
Cost of revenues                2,133,300  1,532,095  822,261  505,738
Selling, general and            339,932     287,257     93,465      74,472
administrative expenses
                               2,473,232  1,819,352  915,726  580,210
                                                                
Income from operations          201,067    63,429     128,808  52,616
Other:                                                           
Income from unconsolidated      14,392      23,592      5,548       4,244
entities
Other income - net              52,238     25,921     15,794    3,889
Income before income taxes      267,697    112,942    150,150  60,749
Income tax provision(benefit)  97,091      (374,204)   55,245      (350,668)
Net income                      $170,606   $487,146   $94,905  $411,417
                                                                
Income per share:                                                
Basic                           $1.01      $2.91      $ 0.56    $2.44
Diluted                         $0.97      $2.86      $ 0.54    $2.35
                                                                
Weighted-average number of                                       
shares:
Basic                           169,288    167,346    169,440  168,416
Diluted                         177,963    170,154    177,952  174,775


TOLL BROTHERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(Amount in thousands)
(unaudited)
                                                          
                                       Twelve Months Ended Three Months Ended
                                        October 31,         October 31,
                                       2013      2012      2013     2012
                                                                 
Impairment charges (recoveries)                                   
recognized:
Cost of sales - landcontrolled for     $1,183   $451    $346   $ (209)
future communities
Cost of sales – land ownedfor future           1,218             300
communities
Cost of sales – operatingcommunities  3,340    13,070    2,200    1,400
Income (loss) fromUnconsolidated                (2,311)           (689)
entities
                                       $4,523   $12,428  $2,546  $802
                                                                 
Depreciation and amortization           $25,210  $22,586  $6,073  $3,449
Interest incurred                       $134,198 $125,783 $ 34,132 $ 32,756
Interest expense:                                                 
Charged to cost of sales                $112,321 $87,117  $ 40,416 $ 27,294
Charged to other income-net             2,917   3,404   872     1,740
                                      $115,238 $90,521  $ 41,288 $ 29,034
                                                                 
Home sites controlled:                                            
Owned                                   33,967   31,327           
Optioned                                14,661   9,023            
                                       48,628   40,350           

Toll Brothers operates in two segments: Traditional Home Building and Urban
Infill ("City Living"). Within Traditional Home Building, Toll 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    2013      2012     2013      2012
                                                   
North                     345      239     $197.0   $119.3
Mid-Atlantic              372      319     226.9    186.0
South                     358      181     229.4    108.0
West                      385      266     338.7    167.7
Traditional Home Building 1,460    1,005   992.0   581.0
City Living               25       83      52.5     51.8
Total consolidated        1,485    1,088   $ 1,044.5 $632.8
                                                   
CONTRACTS                                           
                                                   
North                     341      223     $213.6   $121.2
Mid-Atlantic              278      286     175.9    163.2
South                     281      258     192.4    166.3
West                      226      297     204.2    204.7
Traditional Home Building 1,126    1,064   786.1   655.4
City Living               37       34     52.9     28.7
Total consolidated        1,163    1,098   $839.0   $684.1
                                                   
BACKLOG                                             
                                                   
North                     948       625      $562.5   $350.0
Mid-Atlantic              902       634      573.0    374.5
South                     956       749      673.5    483.5
West                      675       507      593.2    351.0
Traditional Home Building 3,481     2,515    2,402.2 1,559.0
City Living               198      54       227.3    110.9
Total consolidated        3,679     2,569    $ 2,629.5 $ 1,669.9

                                            
                         Twelve Months Ended Twelve Months
                          October 31,         EndedOctober 31,
                         Units               $ (Millions)
HOME BUILDING REVENUES   2013      2012      2013     2012
                                                   
North                     874       687       $485.0   $350.7
Mid-Atlantic              1,146     958       652.9    535.7
South                     1,018     624       641.3    361.8
West                      1,009     744       724.4    437.9
Traditional Home Building 4,047     3,013     2,503.6  1,686.1
City Living               137       273       170.7    196.7
Total consolidated        4,184     3,286     $2,674.3 $1,882.8
                                                   
CONTRACTS                                           
                                                   
North                     1,197     821       $697.5   $445.2
Mid-Atlantic              1,414     1,115     851.3    625.5
South                     1,225     931       831.4    582.1
West                      1,177     1,037     966.6    653.7
Traditional Home Building 5,013     3,904     3,346.8  2,306.5
City Living               281       255       287.1    251.4
Total consolidated        5,294     4,159     $3,633.9 $2,557.9

Unconsolidated entities:

Information related to revenues and contracts of entities in which we have an
interest for the three-month and twelve-month periods ended October 31, 2013
and 2012, and for backlog at October 31, 2013 and 2012 is as follows:

                               2013  2012  2013    2012
                               Units Units $(Mill) $(Mill)
Three months ended October 31,                   
Revenues                       15    14    $8.8    $13.6
Contracts                      23    17    $16.7   $16.4
                                                
Twelve months ended October 31,                  
Revenues                       51    96    $37.5   $89.9
Contracts                      77    106   $56.6   $96.1
                                                
                                                
Backlog at October 31,          62    36    $46.2   $27.2

CONTACT: Frederick N. Cooper (215) 938-8312
         fcooper@tollbrothersinc.com

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