SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 31, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
Commission file number 1-9186
TOLL BROTHERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 23-2416878
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3103 Philmont Avenue, Huntingdon Valley, Pennsylvania 19006
(Address of principal executive offices) (Zip Code)
(215) 938-8000
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Common Stock, $.01 par value: 36,450,680 shares as of September 7, 1999
<PAGE>
TOLL BROTHERS, INC. AND SUBSIDIARIES
INDEX
Page
No.
PART I. Financial Information
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited) 1
as of July 31,1999 and October 31,1998
Condensed Consolidated Statements of Income (Unaudited) 2
For the Nine Months and Three Months Ended
July 31, 1999 and 1998
Condensed Consolidated Statements of Cash Flows 3
(Unaudited)For the Nine Months Ended
July 31, 1999 and 1998
Notes to Condensed Consolidated Financial Statements 4
(Unaudited)
ITEM 2. Management's Discussion and Analysis of 8
Financial Condition and Results of Operations
PART II. Other Information 12
SIGNATURES 14
STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information included herein and in other Company statements,
reports and S.E.C. filings is forward-looking within the meaning of the
Private Securities Litigation Reform Act of 1995, including, but not
limited to, statements concerning anticipated operating results, financial
resources, increases in revenues, increased profitability, interest
expense, growth and expansion, ability to acquire land, Year 2000
readiness, and the effect on the Company if the Company or significant
third parties are not Year 2000 compliant. 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 statements,
reports and S.E.C. filings. These risks and uncertainties include local,
regional and national economic conditions, the effects of governmental
regulation, the competitive environment in which the Company operates,
fluctuations in interest rates, changes in home prices, the availability
and cost of land for future growth, the availability of capital, the
availability and cost of labor and materials, and weather conditions.
<PAGE>
<TABLE>
<CAPTION>
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
July 31, October 31,
1999 1998
ASSETS
<C> <C>
Cash and cash equivalents $ 63,895 $ 80,143
Residential inventories 1,435,587 1,111,223
Property, construction and office
equipment, net 18,174 14,425
Receivables, prepaid expenses and
other assets 83,224 41,291
Investments in unconsolidated entities 21,800 6,001
Mortgage notes receivable 1,192 1,385
$1,623,872 $1,254,468
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Loans payable $ 236,900 $ 182,292
Subordinated notes 469,397 269,296
Customer deposits on sales
contracts 86,051 69,398
Accounts payable 66,791 58,081
Accrued expenses 121,641 97,449
Collateralized mortgage
obligations payable 1,202 1,384
Income taxes payable 55,798 50,812
Total liabilities 1,037,780 728,712
Shareholders' equity:
Preferred stock
Common stock 366 369
Additional paid-in capital 105,233 106,099
Retained earnings 489,229 421,099
Treasury stock (8,736) (1,811)
Total shareholders' equity 586,092 525,756
$1,623,872 $1,254,468
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Nine months Three months
ended July 31 ended July 31
1999 1998 1999 1998
Revenues:
<S> <C> <C> <C> <C>
Housing sales $1,002,883 $832,628 $392,206 $341,181
Land sales 10,964 10,964
Interest and other 7,384 3,843 2,524 952
1,021,231 836,471 405,694 342,133
Costs and expenses:
Housing sales 781,838 643,709 304,613 262,553
Land sales 8,556 8,556
Selling, general &
administrative 92,878 77,003 34,114 28,486
Interest 28,128 24,991 10,870 10,366
911,400 745,703 358,153 301,405
Income before income taxes
and extraordinary loss 109,831 90,768 47,541 40,728
Income taxes 40,240 32,804 17,468 15,006
Income before extraordinary
loss 69,591 57,964 30,073 25,722
Extraordinary loss from
extinguishment of debt,
net of income taxes of $857
in 1999 and $655 in 1998 1,461 1,115
Net income $ 68,130 $ 56,849 $ 30,073 $ 25,722
Earnings per share:
Basic
Income before extraordinary
loss $ 1.89 $ 1.60 $ .82 $ .70
Extraordinary loss from
extinguishment of debt .04 .03
Net Income $ 1.85 $ 1.57 $ .82 $ .70
Diluted
Income before extraordinary
loss $ 1.85 $ 1.52 $ .80 $ .67
Extraordinary loss from
extinguishment of debt .04 .03
Net Income $ 1.81 $ 1.49 $ .80 $ .67
Weighted average number
of shares
Basic 36,765 36,322 36,614 37,005
Diluted 37,591 38,432 37,400 38,495
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Nine months
ended July 31
1999 1998
Cash flows from operating activities:
<S> <C> <C>
Net income $68,130 $56,849
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 4,046 3,121
Amortization of loan discount 856 1,197
Extraordinary loss from extinguishment of debt 2,318 1,770
Deferred taxes 3,769 3,629
Changes in operating assets and liabilities,
net of assets and liabilities acquired:
Increase in residential inventories (275,069) (149,627)
Increase in receivables, prepaid
expenses and other assets (29,026) (9,825)
Increase in customer deposits on sales contracts 15,113 20,788
Increase in accounts payable, accrued
expenses and other liabilities 25,876 18,839
Increase in current income taxes payable 1,863 1,691
Net cash used in operating activities (182,124) (51,568)
Cash flows from investing activities:
Purchase of property, construction and office
equipment, net (6,131) (1,939)
Acquisition of company, net of cash acquire (11,092)
Investments in unconsolidated entities (15,799) (2,500)
Principal repayments of mortgage notes receivable 193 974
Net cash used in investing activities (32,829) (3,465)
Cash flows from financing activities:
Proceeds from loans payable 177,500 55,000
Principal payments of loans payable (163,715) (73,876)
Net proceeds from the issuance of senior
subordinated notes 267,716
Redemption of subordinated notes (71,359) (163)
Principal payments of collateralized mortgage
obligations (182) (781)
Proceeds from stock options exercised and employee
stock plan purchases 2,148 3,645
Purchase of treasury stock (13,403) (537)
Net cash provided by (used in) financing activities 198,705 (16,712)
Net decrease in cash and cash equivalents (16,248) (71,745)
Cash and cash equivalents, beginning of period 80,143 147,575
Cash and cash equivalents, end of period $63,895 $75,830
</TABLE>
See accompanying notes
<PAGE>
TOLL BROTHERS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with the rules and
regulations of the Securities and Exchange Commission for interim
financial information. The October 31, 1998 balance sheet amounts
and disclosures included herein have been derived from the October
31, 1998 audited financial statements of the Registrant. Since the
accompanying condensed consolidated financial statements do not
include all the information and footnotes required by generally
accepted accounting principles for complete financial statements, it
is suggested that they be read in conjunction with the financial
statements and notes thereto included in the Registrant's October
31, 1998 Annual Report on Form 10-K. In the opinion of management,
the accompanying unaudited condensed consolidated financial
statements include all adjustments, which are of a normal recurring
nature, necessary to present fairly the Company's financial position
as of July 31, 1999, the results of its operations for the nine
months and three months ended July 31, 1999 and 1998 and its cash
flows for the nine months ended July 31, 1999 and 1998. The results
of operations for such interim periods are not necessarily
indicative of the results to be expected for the full year. Certain
amounts from prior periods have been restated to conform to the
current period presentation.
<PAGE>
<TABLE>
<CAPTION>
2. Residential Inventories
Residential inventories consisted of the following:
July 31, October 31,
1999 1998
<S> <C> <C>
Land and land development costs $ 486,692 $ 298,948
Construction in progress 817,576 693,971
Sample homes 52,668 47,520
Land deposits and costs of future
development 51,415 50,174
Deferred marketing 27,236 20,610
$1,435,587 $1,111,223
</TABLE>
Construction in progress includes the cost of homes under
construction, land, land development and carrying costs of
lots that have been substantially improved.
The Company capitalizes certain interest costs to inventories during
the development and construction period. Capitalized interest is
charged to interest expense when the related inventories are closed.
Interest incurred, capitalized and expensed is summarized as follows:
<TABLE>
<CAPTION>
Nine months Three months
ended July 31 ended July 31
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Interest capitalized,
beginning of period $53,966 $51,687 $60,145 $56,749
Interest incurred 37,390 28,962 13,922 9,257
Interest expensed (28,128) (24,991) (10,870) (10,366)
Write off to cost of sales (31) (18)
Interest capitalized,
end of period $63,197 $55,640 $63,197 $55,640
</TABLE>
3. Extinguishment of Debt
In January 1999, the Company called for redemption on March 15, 1999
all of its outstanding 9 1/2% Senior Subordinated Notes due 2003 at
102% of principal amount plus accrued interest. The principal amount
outstanding at January 31, 1999 was $69,960,000. The redemption
resulted in an extraordinary loss in the first quarter of fiscal
1999 of $1,461,000, net of $857,000 of income taxes. The loss
represents the redemption premium and a write-off of unamortized
deferred issuance costs.
In December 1997, the Company called for redemption on January 14,
1998 of all of its outstanding 4 3/4% Convertible Senior
Subordinated Notes due 2004 at 102.969% of principal amount plus
accrued interest. Prior to the redemption date, $50.8 million of
bonds were converted into common stock of the Company. The Company
redeemed $165,000 of bonds.
<PAGE>
4. Subordinated Notes
In April 1999 and January 1999, the Company issued $100,000,000 of
8% Senior Subordinated Notes due 2009 and $170,000,000 of 8 1/8%
Senior Subordinated Notes due 2009, respectively. The Company used
a portion of the proceeds from the offerings to redeem all of the
Company's 9 1/2% Senior Subordinated Notes due 2003 and to repay
bank indebtedness. The remaining proceeds have or will be used for
general corporate purposes including the acquisition of residential
inventory.
<TABLE>
<CAPTION>
5. Earnings per share information: (in thousands)
Nine months Three months
ended July 31 ended July 31
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Basic weighted average
shares outstanding 36,765 36,322 36,614 37,005
Stock options 826 1,523 786 1,490
Convertible subordinated
notes 587
Diluted weighted average
shares 37,591 38,432 37,400 38,495
Earnings addback related
to interest on convertible
subordinated notes --- $ 315 --- ---
</TABLE>
6. Stock Repurchase Program
In April 1997, the Company's Board of Directors authorized the
repurchase of up to 3,000,000 shares of its Common Stock, par value
$.01, from time to time, in open market transactions or otherwise,
for the purpose of providing shares for its various employee benefit
plans. As of July 31, 1999, the Company had repurchased
approximately 773,000 shares of which approximately 349,000 shares
were reissued under its various employee benefit plans.
7. Acquisition
In March 1999, the Company acquired the homebuilding operations of
the Silverman Companies, a Detroit, Michigan homebuilder and
developer of luxury apartments, for cash and the assumption of debt.
The Silverman Companies owned or controlled approximately 1,800 home
sites and interests in over 1,000 existing and prospective
apartments. The acquisition of the Silverman apartment assets is
expected to be completed during the fourth quarter of fiscal 1999.
The acquisition is expected to be accretive to earnings in fiscal
1999. The acquisition price is not material to the financial
position of the Company.
<PAGE>
<TABLE>
<CAPTION>
8. Supplemental Disclosure to Statements of Cash Flows
The following are supplemental disclosures to the statements of cash
flow for the nine months ended July 31, 1999 and 1998:
1999 1998
<S> <C> <C>
Supplemental disclosures of cash flow information:
Interest paid, net of capitalized amount $ 8,008 $ 7,033
Income taxes paid $33,750 $26,831
Supplemental disclosures of non-cash activities:
Cost of residential inventories acquired
through seller financing $ 7,504 $ 7,500
Income tax benefit relating to exercise of
employee stock options $ 510 $ 872
Stock bonus awards $ 2,461 $ 3,564
Contributions to employee retirement plan $ 490
Conversion of subordinated debt $50,712
Acquisition of company:
Fair value of assets acquired $56,124
Liabilities assumed 45,032
Cash paid $11,092
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PART I. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, comparisons of
certain income statement items related to the Company's operations
(amounts in millions):
Nine months ended July 31, Three months ended July 31,
1999 1998 1999 1998
$ % $ % $ % $ %
<S> <C> <C> <C> <C>
House sales
Revenues 1,002.9 832.6 392.2 341.2
Costs 781.8 78.0 643.7 77.3 304.6 77.7 262.6 77.0
Land sales
Revenues 11.0 11.0
Costs 8.6 78.0 8.6 78.0
Interest
and other 7.4 3.8 2.5 1.0
Total revenues 1,021.2 836.5 405.7 342.1
Selling, general
& administrative
expense 92.9 9.1 77.0 9.2 34.1 8.4 28.5 8.3
Interest expense 28.1 2.8 25.0 3.0 10.9 2.7 10.4 3.0
Total costs and
expenses 911.4 89.2 745.7 89.1 358.2 88.3 301.4 88.1
Note: Percentages of selling, general and administrative expense,
interest expense and total costs and expenses are based on total revenues.
</TABLE>
HOUSE SALES
Housing revenues for the nine-month and three-month periods ended July 31,
1999 were higher than those of the comparable periods of 1998 by
approximately $170 million, or 20%, and $51 million, or 15%, respectively.
The increase in revenues for the 1999 periods was primarily attributable
to an increase in the number of homes delivered and a higher average price
of the homes delivered. The increased number of homes delivered was due
to the greater number of communities from which the Company was delivering
homes, the larger backlog of homes at the beginning of the 1999 periods
as compared to the beginning of the 1998 periods and the acquisition of
the homebuilding operations of the Silverman Companies in March 1999.
The increase in the average price per home delivered in the nine-month and
three-month periods of fiscal 1999 as compared to fiscal 1998 was 4% and
1%, respectively. The increase in the average selling price per home
delivered in the 1999 periods was the result of a shift in the location
of homes delivered to more expensive areas, changes in product mix to
larger homes and increases in selling prices, offset in part by the
delivery of lower priced homes from operations of the Silverman Companies.
<PAGE>
The value of new sales contracts signed amounted to $1.23 billion (2,886
homes) and $399 million (922 homes) for the nine-month and three-month
periods ended July 31, 1999, respectively. The value of new contracts
signed for the comparable periods of fiscal 1998 were $1.04 billion (2,546
homes) and $333 million (795 homes), respectively. The increase in the
value of new contracts signed in both periods of 1999 was primarily
attributable to an increase in the average selling price of the homes (due
primarily to the location, size and increase in base selling prices), an
increase both in the number of communities in which the Company was
offering homes for sale and in the number of contracts signed per
community and the acquisition of the homebuilding operations of the
Silverman Companies in March 1999.
As of July 31, 1999, the backlog of homes under contract was $1.09 billion
(2,483 homes), approximately 29% higher than the $844 million (1,971
homes) backlog as of July 31, 1998 and approximately 34% higher than the
$815 million (1,892 homes) backlog as of October 31, 1998. The increase
in backlog at July 31, 1999 is primarily attributable to the increase in
the number of new contracts signed and price increases, as previously
discussed.
Land and construction costs as a percentage of housing revenues increased
in the nine-month and three-month periods of 1999 as compared to 1998. The
increases were the results of the higher percentage of closings from some
of the Company's newer markets (Arizona, Florida, Nevada, North Carolina
and Texas) in both periods of 1999, which, as compared to 1998, generally
have higher costs as a percentage of revenues as compared to the Company's
more established markets. In addition, deliveries from the Silverman
operations have higher costs than the Company's other more established
operations. The Company also had higher inventory writeoffs in the 1999
periods ($2,845,000 in the nine-month period and $408,000 in the three-month
period) as compared to 1998 ($509,000 in the nine-month period and
$101,000 in the three-month period). These cost increases were partially
offset by lower costs as a percentage of revenues in the Company's more
established markets resulting from increased selling prices and lower
overhead costs.
LAND SALES
In March 1999, the Company acquired the homesites, land for apartments and
retail, office and industrial space in the master planned community of
South Riding, located in Loudoun County, Virginia. The Company will use
some of the property for its own homebuilding operation and will also sell
homesites to other builders. During the three months ended July 31, 1999,
the Company realized its first revenues from the South Riding land
development operation. Revenues from this operation should continue for
the next several years although the amount realized in any given quarter
could vary greatly.
INTEREST AND OTHER
The increase in other income for the nine-month and three-month periods
ended July 31, 1999, over the same periods of 1998 was primarily the
result of the Company's expansion of its ancillary businesses such as
title insurance, mortgage operations and construction management.
<PAGE>
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses in the nine-month and three-month
periods ended July 31, 1999 increased over the comparable periods of 1998 by
$15.9 million and $5.6 million, respectively. The increased spending was
primarily attributable to the increased number of homes sold, the increased
number of communities in which the Company was operating, the geographic
expansion of the Company's homebuilding operations and its expansion into
other businesses.
INTEREST EXPENSE
Interest expense is determined on a specific lot-by-lot basis for its
homebuilding operations and on a parcel-by-parcel basis for land sales.
As a percentage of total revenues, interest expense will vary depending
on many factors including the period of time that the land was owned, the
length of time that the homes delivered during the period were under
construction, and the interest rates and the amount of debt carried by the
Company in proportion to the amount of its inventory during those periods.
As a percentage of total revenues, interest expense was lower in the nine-month
and three-month periods ended July 31, 1999 as compared to the same
periods of 1998.
INCOME TAXES
The Company's estimated combined state and federal tax rate before
providing for the effect of permanent book-tax differences ("Base Rate")
was 37% in 1999 and 1998. The primary differences between the Company's
Base Rate and effective tax rate were tax free income in both periods of
1999 and 1998 and, in the first quarter of 1998, an adjustment due to the
recomputation of the Company's deferred tax liability resulting from the
change in the Company's effective Base Rate.
EXTRAORDINARY LOSS FROM EXTINGUISHMENT OF DEBT
In January 1999, the Company called for redemption on March 15, 1999 of
all of its outstanding 9 1/2% Senior Subordinated Notes due 2003 at 102%
of principal amount plus accrued interest. The redemption resulted in the
recognition of an extraordinary loss in the first quarter in fiscal 1999
of $1,461,000, net of $857,000 of income taxes. The loss represents the
redemption premium and a write-off of unamortized deferred issuance costs.
In February 1998, the Company entered into a new five-year, $355 million
bank credit facility (subsequently increased to $440 million). In connection
therewith, the Company repaid $62 million of fixed rate long-term bank
loans. The Company recognized an extraordinary charge in the second
quarter of 1998 of $1.1 million, net of $655,000 of income taxes, related
to the retirement of its previous revolving credit agreement and
prepayment of the term loans.
CAPITAL RESOURCES AND LIQUIDITY
Funding for the Company's residential development activities has been
principally provided by cash flows from homebuilding operations, unsecured
bank borrowings and the public debt and equity markets.
<PAGE>
The Company has a $440 million unsecured revolving credit facility with
fourteen banks which extends through February 2003. As of July 31, 1999, the
Company had $100 million of loans and approximately $35.7 million of letters of
credit outstanding under the facility.
In April 1999 and January 1999, the Company issued $100,000,000 of 8%
Senior Subordinated Notes due 2009 and $170,000,000 of 8 1/8% Senior
Subordinated Notes due 2009, respectively. The Company used a portion of
the proceeds from the offerings to redeem all of its 9 1/2% Senior
Subordinated Notes due 2003 and to repay bank indebtedness. The remaining
proceeds have or will be used for general corporate purposes including the
acquisition of residential inventories.
The Company believes that it will be able to continue to fund its
activities through a combination of operating cash flow and other sources
of credit such as what the Company has had access to in the past.
YEAR 2000 READINESS DISCLOSURE
The Company has assessed and is continuing to assess its operating
systems, computer software applications, computer equipment and other
equipment with embedded electronic circuits ("Programs") that it currently
uses to identify whether they are Year 2000 compliant and, if not, what
steps are needed to bring them into compliance. The Company believes that
almost all Programs are Year 2000 compliant. For those Programs that are
not compliant the Company is reviewing the potential impact on the Company
and the alternatives that are available to it if the Programs cannot be
brought into compliance by December 31, 1999. The Company believes that
the required changes to its Programs will be made on a timely basis
without causing material operational issues or having a material impact
on its results of operations or its financial position.
The Company believes that, because of the basic nature of its systems in
its core business of homebuilding, it is not heavily dependent on Year
2000 compliance of its Programs and that it would not likely suffer
material loss or disruption in remedying any worst case situation that may
occur.
The costs incurred and expected to be incurred in the future regarding
Year 2000 compliance have been and are expected to be immaterial to the results
of operation and financial position of the Company. Costs related to Year
2000 compliance are expensed.
The Company has been reviewing whether its significant subcontractors,
suppliers, financial institutions and other service providers
("Providers") are Year 2000 compliant. The Company is not aware of any
Providers that do not expect to be compliant; however, the Company has no
means of ensuring that its Providers will be Year 2000 ready. The
inability of Providers to be Year 2000 ready in a timely fashion could
have an adverse impact on the Company. The Company plans to respond to any
such contingency involving any of its Providers by seeking to utilize
alternative sources for such goods and services, where practicable. In
addition, widespread disruptions in the national or international economy,
including, for example, disruptions affecting financial markets,
commercial and investment banks, governmental agencies and utility
services, such as heat, light, power and telephones, could also have an
adverse impact on the Company. The likelihood and effects of such
disruptions are not determinable at this time.
<PAGE>
<TABLE>
<CAPTION>
HOUSING DATA
Nine Months Three Months
Ended July 31 Ended July 31
1999 1998 1999 1998
<S> <C> <C> <C> <C>
# of homes closed 2,517 2,179 986 869
Sales value of homes
closed (in thous $1,002,883 $832,628 $392,206 $341,181
# of homes contracted* 2,886 2,546 922 795
Sales value of homes
contracted (in thous.)* $1,225,142 $1,038,643 $398,559 $332,770
Average number of
selling communities 134 122 133 120
July 31, July 31, Oct. 31, Oct. 31,
1999 1998 1998 1997
# of homes in backlog* 2,483 1,971 1,892 1,551
Sales value of homes in
backlog (in thous.)* $1,092,660 $843,925 $814,714 $627,220
</TABLE>
*Contract amount for the three-month and nine-month period ended July
31,1999 includes $7,552,000 (27 homes) from an unconsolidated 50% owned joint
venture. Backlog as of July 31, 1999 includes $13,703,000 (58 homes) from this
joint venture.
PART II. Other Information
ITEM 1. Legal Proceedings
None.
ITEM 2. Changes in Securities and Use of Proceeds
None.
ITEM 3. Defaults upon Senior Securities
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
None.
ITEM 5. Other Information
None.
<PAGE>
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits Exhibit 27* Financial Data Schedule
*Filed electronically herewith.
(b) Reports on Form 8-K
Report on Form 8-K filed on July 13, 1999 for the
purpose of filing (i) the Indenture dated as of January
26, 1999 among Toll Corp., Toll Brothers, Inc. and NBD
Bank, and (2) Authorizing Resolutions relating to
$100,000,000 principal amount of 8% Senior Subordinated
Notes due 2009 of Toll Corp., guaranteed on a Senior
Subordinated basis by Toll Brothers, Inc.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TOLL BROTHERS, INC.
(Registrant)
Date: September 10, 1999 By: /s/ Joel H. Rassman
Joel H. Rassman
Senior Vice President,
Treasurer and Chief
Financial Officer
Date: September 10, 1999 By: /s/ Joseph R. Sicree
Joseph R. Sicree
Vice President -
Chief Accounting Officer
(Principal Accounting Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000794170
<NAME> TOLL BROTHERS, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> JUL-31-1999
<CASH> 63,895
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 1,435,587
<CURRENT-ASSETS> 0
<PP&E> 43,685
<DEPRECIATION> 25,511
<TOTAL-ASSETS> 1,623,872
<CURRENT-LIABILITIES> 0
<BONDS> 469,397
<COMMON> 366
0
0
<OTHER-SE> 585,726
<TOTAL-LIABILITY-AND-EQUITY> 1,623,872
<SALES> 1,013,847
<TOTAL-REVENUES> 1,021,231
<CGS> 790,394
<TOTAL-COSTS> 883,272
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,128
<INCOME-PRETAX> 109,831
<INCOME-TAX> 40,240
<INCOME-CONTINUING> 69,591
<DISCONTINUED> 0
<EXTRAORDINARY> 1,461
<CHANGES> 0
<NET-INCOME> 68,130
<EPS-BASIC> 1.85
<EPS-DILUTED> 1.81
</TABLE>
