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Toll Brothers
🇺🇸 NYSE:TOL
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•
Apr 30, 2021

Toll Brothers Q2 2021 Earnings Report

Toll Brothers reported record second-quarter results, driven by strong demand and strategic expansion.

Key Takeaways

Toll Brothers announced record second-quarter results for fiscal year 2021. Net signed contract value and contracted homes reached all-time highs. The company is raising its fiscal year 2021 guidance on nearly all key metrics, expecting continued margin improvement and projecting a return on beginning equity in excess of 20% in fiscal 2022.

Net income and earnings per share were $127.9 million and $1.01 per share diluted, compared to net income of $75.7 million and $0.59 per share diluted in FY 2020’s second quarter.

Home sales revenues were a second quarter record $1.84 billion, up 21% compared to FY 2020’s second quarter; delivered homes were 2,271, up 18%.

Net signed contract value was $3.05 billion, up 97% compared to FY 2020’s second quarter; contracted homes were 3,487, up 85%.

Backlog value was $8.69 billion at second quarter end, up 58% compared to FY 2020’s second quarter; homes in backlog were 10,104, up 57%.

Total Revenue
$1.93B
Previous year: $1.55B
+24.6%
EPS
$1.01
Previous year: $0.59
+71.2%
Backlog Value
$8.69B
Previous year: $5.49B
+58.3%
Net Contracts Signed Value
$3.05B
Previous year: $1.55B
+96.8%
Backlog Number of Units
10.1K
Previous year: 6.43K
+57.2%
Gross Profit
$404M
Previous year: $272M
+48.4%
Cash and Equivalents
$715M
Previous year: $741M
-3.5%
Free Cash Flow
-$43.2M
Total Assets
$11B
Previous year: $10.8B
+1.5%

Toll Brothers

Toll Brothers

Toll Brothers Revenue by Segment

Forward Guidance

Toll Brothers provided financial guidance for the third quarter and full fiscal year 2021.

Positive Outlook

  • Deliveries are expected to be 2,675 units for the third quarter.
  • Full fiscal year 2021 deliveries are expected to be between 10,200 and 10,400 units.
  • The average delivered price is projected to be between $820,000 and $840,000 for the third quarter.
  • The average delivered price for the full fiscal year 2021 is expected to be between $805,000 and $825,000.
  • Adjusted home sales gross margin is anticipated to be 24.8% for the third quarter and 24.6% for the full fiscal year 2021.

Challenges Ahead

  • SG&A, as a percentage of home sales revenues, is expected to be 11.6% for the third quarter and 11.8% for the full fiscal year 2021.
  • The quarter-end community count is projected to be approximately 310 for the third quarter and approximately 340 for the full fiscal year 2021.
  • Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $20.0 million for the third quarter.
  • Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $110.0 million for the full fiscal year 2021.
  • The tax rate is projected to be 26.0% for the third quarter and 25.5% for the full fiscal year 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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