Toll Brothers(TOL)2025-05-29 20:50Financial Performance - Total revenues for the three months ended April 30, 2025, were $2,739,077 thousand, a decrease of 3.5% compared to $2,837,486 thousand for the same period in 2024[22] - Home sales revenue for the six months ended April 30, 2025, was $4,547,229 thousand, down 0.7% from $4,578,856 thousand in the prior year[22] - Net income for the three months ended April 30, 2025, was $352,447 thousand, a decline of 26.8% from $481,617 thousand in the same period of 2024[22] - Basic earnings per share for the three months ended April 30, 2025, were $3.53, compared to $4.60 for the same period in 2024, reflecting a decrease of 23.2%[22] - The company reported a comprehensive income of $350,205 thousand for the three months ended April 30, 2025, down from $484,432 thousand in the same period of 2024[22] - For the six months ended April 30, 2025, net income was $530,150,000, a decrease of 26.5% compared to $721,175,000 for the same period in 2024[28] - The total other income – net for the three months ended April 30, 2025, was $16.336 million, a decrease from $20.366 million in the same period of 2024[95] - Revenues from ancillary businesses for the three months ended April 30, 2025, were $47.580 million, compared to $39.159 million for the same period in 2024, representing a 21.8% increase[95] Assets and Liabilities - Total assets increased to $14,195,824 thousand as of April 30, 2025, from $13,367,932 thousand as of October 31, 2024, representing a growth of 6.2%[20] - Total liabilities rose to $6,231,409 thousand as of April 30, 2025, compared to $5,681,217 thousand as of October 31, 2024, an increase of 9.7%[20] - Stockholders' equity increased to $7,964,415 thousand as of April 30, 2025, from $7,686,715 thousand as of October 31, 2024, reflecting a growth of 3.6%[20] - Total equity as of April 30, 2025, was $7,964,415,000, an increase from $7,686,715,000 as of October 31, 2024[25] - The company’s total assets as of April 30, 2025, were $13,048.3 million, with total liabilities of $5,505.1 million and stockholders' equity of $7,543.0 million[180] Cash Flow and Investments - Cash flow used in operating activities was $(57,929,000) for the six months ended April 30, 2025, compared to $152,044,000 in 2024, indicating a significant decline[28] - The company reported a net cash decrease of $608,760,000 in the six months ended April 30, 2025, compared to a decrease of $256,887,000 in 2024[28] - Cash used in investing activities for the six-month period ended April 30, 2025, was $187.8 million, primarily for investments in unconsolidated entities totaling $179.9 million[171] - Financing activities resulted in a cash outflow of $363.1 million for the six-month period ended April 30, 2025, mainly due to the repurchase of $204.9 million of common stock and $66.3 million in loan payments[174] Inventory and Sales - Inventory increased significantly, with $(900,631,000) in cash flow used for inventory in the six months ended April 30, 2025, compared to $(679,337,000) in 2024[28] - As of April 30, 2025, total inventory amounted to $10,994,873 thousand, an increase of 13.2% from $9,712,925 thousand on October 31, 2024[42] - The company delivered 2,899 homes with an average delivered price of $933,600 in the three months ended April 30, 2025, compared to 2,641 homes at an average price of $1,002,300 in the same period of 2024[122] - Home sales revenues for the three months ended April 30, 2025, were $2,706.5 million, a 2% increase from $2,647.0 million in the same period of 2024[131] - For the six-month period ended April 30, 2025, the company recognized $4.60 billion in revenues, with $4.55 billion from home sales and $51.0 million from land sales and other revenues, down from $4.79 billion in the same period of 2024[125] Debt and Financing - The company had loan commitments totaling $2.68 billion, with maximum estimated exposure under guarantees of $581.8 million[63] - The company’s total loans payable amounted to $1.05 billion as of April 30, 2025, with a senior unsecured term loan of $650 million[68] - The interest rate on the Term Loan Facility was 5.43% per annum as of April 30, 2025[69] - The company has a $2.35 billion senior unsecured revolving credit facility, which was increased from $1.96 billion on February 7, 2025[71] - The company’s senior notes amounted to $1.60 billion as of April 30, 2025, with obligations guaranteed by Toll Brothers, Inc. and its subsidiaries[177] Regional Performance - The North region generated revenues of $378.5 million for the three months ended April 30, 2025, representing a 13% increase from $335.2 million in 2024[184] - The South region saw a revenue increase of 15% to $758.6 million for the three months ended April 30, 2025, compared to $658.4 million in the same period of 2024[184] - The Mountain region experienced a significant revenue growth of 25%, reaching $755.9 million for the three months ended April 30, 2025, up from $603.6 million in 2024[184] - Home sales revenues in the Mid-Atlantic region decreased by 14% to $321.8 million for the three months ended April 30, 2025, compared to $376.1 million in the same period of 2024[195] - The Pacific region's backlog value increased by 5% to $1,484.9 million in 2025 from $1,412.8 million in 2024[187] Tax and Compliance - The effective tax rate for the three months ended April 30, 2025, was 26.2%, slightly higher than the 25.9% effective tax rate for the same period in 2024[79] - The effective tax rate for the six months ended April 30, 2025 was 24.1%, compared to 25.0% for the same period in 2024[148] - The aggregate unrecognized tax benefits amounted to $22.1 million as of April 30, 2025, which could positively impact the effective tax rate if reversed in the future[81] Shareholder Activities - The company declared dividends of $25,145 thousand during the three months ended April 30, 2025[24] - The company purchased treasury stock amounting to $177,362 thousand during the three months ended April 30, 2025[24] - The company repurchased 1,645 thousand shares at an average price of $107.84 per share during the three months ended April 30, 2025, compared to 1,502 thousand shares at an average price of $120.60 per share in the same period of 2024[84] - Cash dividends increased from $0.23 per share in 2024 to $0.25 per share in 2025 for the three-month periods ended April 30[85] Impairments and Write-offs - The company reported impairment charges and write-offs of $32,462,000 for the six months ended April 30, 2025, compared to $35,400,000 in 2024[28] - The company recognized $9.8 million in inventory impairment charges in the three months ended April 30, 2025, compared to $28.4 million in the same period of 2024[117] - The company recognized $1.8 million in impairment charges on land held for sale during the six-month period ended April 30, 2025, compared to $0.6 million in the same period of 2024[44] Joint Ventures and Investments - The company had investments in 63 unconsolidated entities as of April 30, 2025, with a total investment of $1,172,302 thousand[49] - New joint ventures entered into during the six months ended April 30, 2025, had an aggregate fair value at formation of $199,600 thousand[54] - The number of joint ventures with debt financing increased to 51 as of April 30, 2025, with aggregate loan commitments totaling $4,272,174 thousand[53] - The company evaluated its land purchase contracts and determined that 334 contracts were VIEs, with a maximum exposure to loss of approximately $248.0 million as of April 30, 2025[48] Miscellaneous - The company continues to manage pricing, incentives, and home starts on a community-by-community basis to align inventory levels with local sales environments[121] - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the quarter ended April 30, 2025[218]