Toll (TOL) Reports Preliminary Q4, FY09 Results

November 10, 2009 5:13 PM EST

In a Form 8-K, Toll Brothers (NYSE: TOL) today issued preliminary results for Q4.

Net signed contract of about 765 units, resulting in sales of $430.8 million, up 42% and 62%, respectively, from the same quarter last year. Contract cancellation rate was 6.9% during the quarter, inline with its pre-downturn historical averages.

Q4 home building deliveries and sales were about 860 units and $486.6 million, respectively, down 20% and 30% from the same quarter last year.

For FY09, net signed contracts came in at 2,450 units and $1.30 billion. Home building deliveries were 2,965 units on sales of $1.76 billion, down 37% and 44%, respectively, versus 2008.

Bob Toll, chairman and CEO, stated: “We have definitely progressed from one year ago. The shock to the financial system in mid-September 2008 that shut down the capital markets appears to be mostly behind us. The improvement in consumer confidence over the past year, the increasing stabilization of home prices, the decline in unsold home inventories and the reduction in buyer cancellation rates suggest that the new home market should be improving; we sense that it is, though slowly and through choppy waters.

“Home buyers began to emerge from their bunkers in late March 2009 and the market continued to gain momentum up to Labor Day. Since then demand has been volatile: This may be due in part to typical seasonality, but the more likely cause is concern about unemployment and the overall economy.”

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