Toll Brothers Q2 Earnings: $9.1M Net Income

TL;DR

**Toll Brothers Q2: $9.1M profit, $0.07 EPS. Housing market holding steady.**

AI Summary

Toll Brothers, Inc. reported its second quarter results for the period ending April 30, 2024. The company's total assets were $102,650,000, with total liabilities of $112,937. Net income for the quarter was $9,146, and earnings per share were $0.07. The company's fiscal year ends on October 31st.

Why It Matters

This filing provides insight into Toll Brothers' financial performance in the homebuilding sector, impacting investors and the broader real estate market.

Risk Assessment

Risk Level: medium — The company operates in the cyclical homebuilding industry, which is sensitive to economic conditions and interest rates.

Key Numbers

• $102.65B — Total Assets (As of April 30, 2024)
• $112.94M — Total Liabilities (As of April 30, 2024)
• $9.15M — Net Income (For the quarter ending April 30, 2024)
• $0.07 — Earnings Per Share (For the quarter ending April 30, 2024)

Key Players & Entities

• Toll Brothers, Inc. (company) — Filer of the 10-Q report
• 20240430 (date) — End of the reporting period
• 102,650,000 (dollar_amount) — Total assets
• 112,937 (dollar_amount) — Total liabilities
• 9,146 (dollar_amount) — Net income
• 0.07 (dollar_amount) — Earnings per share
• 1031 (date) — Fiscal year end

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share TOL New York Stock Exchange

Filing Documents

• tol-20240430.htm (10-Q) — 1948KB
• toll-2024430x10qxex41.htm (EX-4.1) — 47KB
• tol-2024430x10qxex3101.htm (EX-31.1) — 9KB
• tol-2024430x10qxex3102.htm (EX-31.2) — 8KB
• tol-2024430x10qxex3201.htm (EX-32.1) — 4KB
• tol-2024430x10qxex3202.htm (EX-32.2) — 4KB
• 0000794170-24-000035.txt ( ) — 10165KB
• tol-20240430.xsd (EX-101.SCH) — 74KB
• tol-20240430_cal.xml (EX-101.CAL) — 67KB
• tol-20240430_def.xml (EX-101.DEF) — 536KB
• tol-20240430_lab.xml (EX-101.LAB) — 766KB
• tol-20240430_pre.xml (EX-101.PRE) — 668KB
• tol-20240430_htm.xml (XML) — 1533KB

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) 3 Condensed Consolidated Statements of Changes in Equity (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 45

Other Information

PART II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Exhibits

Item 6. Exhibits 47

SIGNATURES

SIGNATURES 48 STATEMENT ON FORWARD-LOOKING INFORMATION Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission ("SEC") (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "can," "could," "might," "should," "likely", "will" and other words or phrases of similar meaning. Such statements may include, but are not limited to, information related to: market conditions; mortgage rates; inflation rates; demand for our homes; our built-to-order and quick move-in home strategy; sales paces and prices; effects of home buyer cancellations; our strategic priorities; growth and expansion; our land acquisition, land development and capital allocation priorities; anticipated operating results; home deliveries; financial resources and condition; changes in revenues, profitability, margins and returns; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; selling, general and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire land and pursue real estate opportunities; our ability to gain approvals and open new communities; ou

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TOLL BROTHERS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) April 30, 2024 October 31, 2023 (unaudited) ASSETS Cash and cash equivalents $ 1,030,530 $ 1,300,068 Inventory 9,926,939 9,057,578 Property, construction, and office equipment – net 321,166 323,990 Receivables, prepaid expenses, and other assets (1) 724,399 691,256 Mortgage loans held for sale – at fair value 136,346 110,555 Customer deposits held in escrow 108,521 84,530 Investments in unconsolidated entities (1) 1,002,458 959,041 $ 13,250,359 $ 12,527,018 LIABILITIES AND EQUITY Liabilities Loans payable $ 1,113,126 $ 1,164,224 Senior notes 1,596,644 1,596,185 Mortgage company loan facility 127,541 100,058 Customer deposits 542,877 540,718 Accounts payable 694,422 597,582 Accrued expenses 1,636,722 1,548,781 Income taxes payable 214,833 166,268 Total liabilities 5,926,165 5,713,816 Equity Stockholders' equity Preferred stock, none issued — — Common stock, 112,937 shares issued at April 30, 2024 and October 31, 2023 1,129 1,129 Additional paid-in capital 689,259 698,548 Retained earnings 7,350,235 6,675,719 Treasury stock, at cost — 9,974 and 9,146 shares at April 30, 2024 and October 31, 2023, respectively ( 772,476 ) ( 619,150 ) Accumulated other comprehensive income ("AOCI") 39,827 40,910 Total stockholders' equity 7,307,974 6,797,156 Noncontrolling interest 16,220 16,046 Total equity 7,324,194 6,813,202 $ 13,250,359 $ 12,527,018 (1) As of April 30, 2024 and October 31, 2023, Receivables, prepaid expenses, and other assets and Investments in unconsolidated entities include $ 98.2 million and $ 89.6 million, respectively, of assets related to consolidated variable interest entities ("VIEs"). See Note 3, "Investments in Unconsolidated Entities" for additional information regarding VIEs. See accompanying notes. 2 TOLL BROTHERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amo