Toll Brothers' fiscal third-quarter cash down at $877.4 million

By Lisa Kerner

Charlotte, N.C., Aug. 22 - Toll Brothers, Inc. ended its fiscal third quarter on July 31 with $877.4 million of cash and marketable securities and $819.2 million available under its $886 million 12-bank credit facility, buoyed by a housing market that executive chairman Robert I. Toll described as being "on the mend."

The company ended the prior-year period with $1.18 billion of cash and marketable securities.

Chief executive officer Douglas C. Yearley said the housing recovery is being driven in part by very low interest rates as well as pent-up demand.

Toll is enjoying the most sustained growth demand in over five years, according to Yearley.

Toll Brothers' net-debt-to-capital ratio at quarter's end was 27.5%, compared with 26.9% at the end of the prior quarter and 13.9% at the end of 2011's third quarter.

The Horsham, Pa.-based luxury homebuilder also reported net income of $61.6 million, or $0.36 per share, compared with $42.1 million, or $0.25 per share, for the prior-year period.

Total revenues rose 41% to $554.3 million and homebuilding deliveries grew 39% to 963 units for the third quarter.

Toll Brothers' backlog was $1.62 billion, up 59% from the third quarter of 2011, while the number of units rose 44% to 2,559.

Compared to the prior-year period, Toll Brothers' operating margin grew 830 basis points to 5.7%.

The company anticipates total home sale revenue of between $1.71 billion and $1.84 billion if fourth-quarter delivery and pricing targets are achieved.

For the full fiscal year 2011, Toll Brothers reported revenue of $1.48 billion and sold 2,611 homes.

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