Delaware | 001-09186 | 23-2416878 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
250 Gibraltar Road, Horsham, PA | 19044 | |||
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1* | Press release of Toll Brothers, Inc. dated December 6, 2016 announcing its financial results for the twelve-month and three-month periods ended October 31, 2016. |
TOLL BROTHERS, INC. | ||||||
Dated: | December 6, 2016 | By: | /s/ Joseph R. Sicree | |||
Joseph R. Sicree Senior Vice President, Chief Accounting Officer |
FOR IMMEDIATE RELEASE | CONTACT: Frederick N. Cooper (215) 938-8312 |
December 6, 2016 | fcooper@tollbrothersinc.com |
▪ | FY 2016’s fourth-quarter net income was $114.4 million, or $0.67 per share diluted, compared to $147.2 million, or $0.80 per share diluted, in FY 2015’s fourth quarter. |
▪ | Pre-tax income was $168.2 million, compared to $217.5 million in FY 2015’s fourth quarter. Impacting FY 2016’s fourth-quarter pre-tax income, reported in cost of sales, were $2.5 million of inventory impairments and a $121.2 million warranty charge primarily related to older stucco homes. FY 2015’s fourth-quarter pre-tax income included $4.4 million of inventory impairments and a comparable $14.7 million warranty charge. |
▪ | Adjusting for these items, FY 2016 fourth quarter adjusted pre-tax income (“Adjusted Pre-Tax Income”) was $291.8 million, compared to $236.7 million in FY 2015’s fourth quarter. |
▪ | Revenues of $1.86 billion and home building deliveries of 2,224 units rose 29% in dollars and 22% in units, compared to FY 2015’s fourth-quarter totals of $1.44 billion and 1,820 units. The average price of homes delivered was $834,000, compared to $790,000 in FY 2015’s fourth quarter. |
▪ | Net signed contracts of $1.47 billion and 1,728 units rose 17% in dollars and 20% in units, compared to FY 2015’s fourth-quarter totals of $1.25 billion and 1,437 units. The average price of net signed contracts was $848,000, compared to $872,000 in FY 2015’s fourth quarter. |
▪ | On a per-community basis, FY 2016’s fourth-quarter net signed contracts were up 12% to 5.82 units, compared to fourth-quarter totals of 5.21 units in FY 2015, 5.01 in FY 2014 and 5.17 in FY 2013. This was the highest fourth quarter per-community total since FY 2005. |
▪ | For the first five weeks of FY 2017, beginning November 1, 2016, non-binding reservations deposits were up 10% in units, compared to the same period in FY 2016. Adjusting for outstanding Coleman Homes deposits inherited at the time of its acquisition in early November 2016, deposits were up 14%. |
▪ | Backlog of $3.98 billion and 4,685 units increased 14% in dollars and 15% in units, compared to FY 2015’s fourth-quarter-end backlog of $3.50 billion and 4,064 units. The average price of homes in FY 2016’s fourth-quarter-end backlog was $850,000, compared to $862,000 at FY 2015’s fourth-quarter end. |
▪ | Gross margin, as a percentage of revenues, was 15.4% in FY 2016’s fourth quarter, compared to 22.3% in FY 2015’s fourth quarter. Adjusted Gross Margin, which excludes interest and inventory write-downs (“Adjusted Gross Margin”), further adjusted for the warranty charge, was 24.9%, compared to 27.0% in FY 2015’s fourth quarter. |
▪ | SG&A, as a percentage of revenues, improved to 8.1%, compared to 8.7% in FY 2015’s fourth quarter. |
▪ | Other income and Income from unconsolidated entities totaled $32.7 million, compared to $21.6 million in the fourth quarter of FY 2015. |
▪ | The Company ended FY 2016 with 310 selling communities, compared to 297 at FY 2016’s third-quarter end, and 288 at FYE 2015. The Company expects similar community count growth in FY 2017. |
▪ | At FYE 2016, the Company had approximately 48,800 lots owned and optioned, compared to approximately 48,700 at FY 2016’s third-quarter end and approximately 44,300 one year ago. |
▪ | The Company ended FY 2016’s fourth quarter with a debt-to-capital ratio of 47.2%, compared to 48.2% at FY 2016’s third-quarter end and 47.3% at FY 2015’s fourth-quarter end. The Company ended FY 2016’s fourth quarter with a net debt-to-capital ratio(1) of 40.9%, compared to 44.9.% at FY 2016’s third-quarter end and 39.5% at FY 2015’s fourth-quarter end. |
▪ | The Company ended FY 2016 with $633.7 million of cash and marketable securities, compared to $351.9 million at FY 2016’s third-quarter end and $929.0 million at FYE 2015. At FYE 2016, the Company also had $961.8 million available under its $1.295 billion 20-bank credit facility, which matures in May 2021. |
▪ | During the fourth quarter of FY 2016, the Company repurchased approximately 2.2 million shares of its common stock at an average price of $29.00 per share for a total purchase price of approximately $65.2 million. In FY 2016, the Company repurchased approximately 13.7 million shares, representing approximately 8% of outstanding shares, at an average price of $28.77 per share for a total purchase price of approximately $392.8 million. Since the start of FY 2017, the Company purchased an additional 550,000 shares of its common stock at an average price of $27.28 per share for a total purchase price of approximately $15.0 million. |
▪ | In FY 2016, net income was $382.1 million, or $2.18 per share diluted, compared to FY 2015’s net income of $363.2 million, or $1.97 per share diluted. |
▪ | Pre-tax income was $589.0 million, compared to pre-tax income of $535.6 million in FY 2015. Impacting FY 2016’s pre-tax income, reported in cost of sales, were $13.8 million of inventory impairments and $125.6 million of warranty charges primarily related to older stucco homes. FY 2015’s pre-tax income included $35.7 million of inventory impairments and a comparable $14.7 million warranty charge. Adjusted Pre-Tax Income was $728.4 million, compared to $586.0 million in FY 2015. |
▪ | Revenues of $5.17 billion and home building deliveries of 6,098 units rose 24% in dollars and 10% in units, compared to FY 2015’s totals of $4.17 billion and 5,525 units. |
▪ | Net signed contracts of $5.65 billion and 6,719 units increased 14% in dollars and units, compared to net signed contracts of $4.96 billion and 5,910 units in FY 2015. |
▪ | Gross margin, as a percentage of revenues, was 19.8% in FY 2016, compared to 21.6% in FY 2015. Adjusted Gross Margin, further adjusted for the warranty charge, was 25.6%, compared to 26.3% in FY 2015. |
▪ | SG&A, as a percentage of revenues, was 10.4% for FY 2016, compared to 10.9% for FY 2015. |
▪ | Income from operations was 9.5% of revenue for FY 2016, compared to 10.7% for FY 2015. |
▪ | Other income and Income from unconsolidated entities was $99.0 million, compared to $88.7 million in FY 2015. |
▪ | On November 7, 2016, just after the end of FY 2016, the Company announced the acquisition of Coleman Homes in Boise, Idaho, which involved the acquisition of approximately 1,400 lots owned, 350 lots controlled and the immediate addition of 15 selling communities to the Company’s first quarter FY 2017 community count total. |
▪ | In FY 2017, the Company expects Coleman to deliver approximately 300 homes at an average delivered price of $300,000 to $325,000. Due to the impact of purchase accounting and Coleman’s lower gross margins, the Company expects Coleman to reduce company-wide FY 2017 Adjusted Gross Margin by 30 to 40 basis points. |
▪ | The Company expects FY 2017 first quarter deliveries of between 1,000 and 1,250 units with an average price of between $750,000 and $780,000, and full FY 2017 deliveries of between 6,500 and 7,500 units with an average price of between $775,000 and $825,000. |
▪ | The Company expects its full FY 2017 Adjusted Gross Margin to be between 24.8% and 25.3% of revenues, reflecting the above noted impact from Coleman Homes and other changes in mix of product deliveries. |
▪ | SG&A, as a percentage of FY 2017 revenues, is expected to be approximately 10.6%. FY 2017 first quarter SG&A is expected to be approximately 15.2% of first quarter revenues. |
▪ | The Company’s full FY 2017 Other income and Income from unconsolidated entities is expected to be between $160 million and $200 million, with approximately $50 million in the first quarter. |
▪ | The Company’s FY 2017 tax rate is estimated at 36.2%. |
▪ | FY 2016’s fourth-quarter net income was $114.4 million, or $0.67 per share diluted, compared to FY 2015’s fourth-quarter net income of $147.2 million, or $0.80 per share diluted. |
▪ | FY 2016’s fourth-quarter pre-tax income was $168.2 million, compared to FY 2015’s fourth-quarter pre-tax income of $217.5 million. FY 2016’s fourth-quarter results included pre-tax inventory impairments totaling $2.5 million and a $121.0 million warranty charge primarily related to older stucco homes. FY 2015’s fourth-quarter results included pre-tax inventory impairments of $4.4 and a comparable $14.7 million warranty charge. FY 2016’s fourth-quarter Adjusted Pre-Tax Income was $291.8, compared to $236.7 million in FY 2015’s fourth quarter. |
▪ | FY 2016’s net income was $382.1 million, or $2.18 per share diluted, compared to FY 2015’s net income of $363.2 million, or $1.97 per share diluted. |
▪ | FY 2016’s pre-tax income was $589.0 million, compared to FY 2015’s pre-tax income of $535.6 million. Impacting FY 2016’s pre-tax income, reported in cost of sales, were $13.8 million of inventory impairments and $125.6 million of warranty charges primarily related to older stucco homes. FY 2015’s pre-tax income included $35.7 million of inventory impairments and a comparable $14.7 million warranty charge. FY 2016 Adjusted Pre-Tax Income was $728.4 million, compared to $586.0 million in FY 2015. |
▪ | FY 2016’s fourth-quarter total revenues of $1.86 billion and 2,224 units rose 29% in dollars and 22% in units, compared to FY 2015’s fourth-quarter total revenues of $1.44 billion and 1,820 units. |
▪ | FY 2016’s total revenues of $5.17 billion and 6,098 units rose 24% in dollars and 10% in units, compared to FY 2015’s same period totals of $4.17 billion and 5,525 units. |
▪ | The Company’s FY 2016 fourth-quarter net contracts of $1.47 billion and 1,728 units rose by 17% in dollars and 20% in units, compared to FY 2015’s fourth-quarter net contracts of $1.25 billion and 1,437 units. |
▪ | On a per-community basis, FY 2016’s fourth-quarter net signed contracts were up 12% to 5.82 units, compared to fourth-quarter totals of 5.21 units in FY 2015, 5.01 in FY 2014 and 5.17 in FY 2013. This was the highest fourth quarter per-community total since FY 2005. |
▪ | The Company’s FY 2016 net contracts of $5.65 billion and 6,719 units increased 14% in dollars and units, compared to net contracts of $4.96 billion and 5,910 units in FY 2015. |
▪ | FY 2016’s, fiscal-year-end backlog of $3.98 billion and 4,685 units increased 14% in dollars and 15% in units, compared to FY 2015’s fiscal-year-end backlog of $3.50 billion and 4,064 units. |
▪ | FY 2016’s fourth-quarter gross margin, as a percentage of revenues, was 15.4%, compared to 22.3% in FY 2015’s fourth quarter. FY 2016’s fourth-quarter Adjusted Gross Margin, further adjusted for the warranty charge, was 24.9%, compared to 27.0% in FY 2015’s fourth quarter. |
▪ | FY 2016’s gross margin, as a percentage of revenues, was 19.8%, compared to 21.6% in FY 2015. FY 2016’s Adjusted Gross Margin, further adjusted for the warranty charge, was 25.6%, compared to 26.3% in FY 2015. |
▪ | Interest included in cost of sales was 2.9% of revenues in FY 2016’s fourth quarter, compared to 3.3% in FY 2015’s fourth quarter. |
▪ | Interest included in cost of sales was 3.1% of revenues in FY 2016, compared to 3.4% in FY 2015. |
▪ | SG&A, as a percentage of revenues, was 8.1% in FY 2016’s fourth quarter, compared to 8.7% in FY 2015’s fourth quarter. |
▪ | SG&A, as a percentage of revenues, was 10.4% in FY 2016, compared to 10.9% in FY 2015. |
▪ | Income from operations of $135.4 million represented 7.3% of revenues in FY 2016’s fourth quarter, compared to $195.9 million and 13.6% of revenues in FY 2015’s fourth quarter. |
▪ | Income from operations of $490.1 million represented 9.5% of revenues in FY 2016, compared to $446.9 million and 10.7% of revenues in FY 2015. |
▪ | Other income and Income from unconsolidated entities in FY 2016’s fourth quarter totaled $32.7, compared to $21.6 million in FY 2015’s same quarter. |
▪ | Other income and Income from unconsolidated entities in FY 2016 totaled $99.0 million, compared to $88.7 million in FY 2015. |
▪ | FY 2016’s fourth-quarter cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) was 4.9%, compared to 5.5% in FY 2015’s fourth quarter. As a percentage of beginning-quarter backlog, FY 2016’s fourth- |
▪ | In FY 2016’s fourth quarter, unconsolidated entities in which the Company had an interest delivered $109.5 million of homes, compared to $17.2 million in the fourth quarter of FY 2015. In FY 2016, unconsolidated entities in which the Company had an interest delivered $164.9 million of homes, compared to $78.1 million in the same period of FY 2015. The Company recorded its share of the results from these entities’ operations in “Income from Unconsolidated Entities” on the Company’s Statement of Operations. |
▪ | In FY 2016’s fourth quarter, unconsolidated entities in which the Company had an interest signed contracts for $28.0 million of homes, compared to $74.6 million in the fourth quarter of FY 2015. In FY 2016, unconsolidated entities in which the Company had an interest signed contracts for $169.8 million of homes, compared to $260.2 million in the same period of FY 2015. |
▪ | At October 31, 2016, unconsolidated entities in which the Company had an interest had a backlog of $471.5 million, compared to $466.6 million at October 31, 2015. |
▪ | The Company ended FY 2016 with $633.7 million of cash and marketable securities, compared to $351.9 million at 2016’s third-quarter end and $929.0 million at FYE 2015. At FYE 2016, the Company also had $961.8 million available under its $1.295 billion 20-bank credit facility, which matures in May 2021. |
▪ | During the fourth quarter of FY 2016, the Company repurchased approximately 2.2 million shares of its common stock at an average price of $29.00 per share for a total purchase price of approximately $65.2 million. In FY 2016, the Company repurchased approximately 13.7 million shares, representing approximately 8% of outstanding shares, at an average price of $28.77 per share for a total purchase price of approximately $392.8 million. Since the start of FY 2017, the Company purchased an additional 550,000 shares of its common stock at an average price of $27.28 per share for a total purchase price of approximately $15.0 million. |
▪ | The Company’s Stockholders’ Equity at FYE 2016 was $4.24 billion, compared to $4.22 billion at FYE 2015. |
▪ | The Company ended FY 2016 with a debt-to-capital ratio of 47.2%, compared to 48.2% at FY 2016’s third-quarter end and 47.3% at FYE 2015. The Company ended FY 2016’s fourth quarter with a net debt-to-capital ratio(1) of 40.9 %, compared to 44.9% at FY 2016’s third-quarter end, and 39.5% at FYE 2015. |
▪ | The Company ended FY 2016 with approximately 48,800 lots owned and optioned, compared to 48,700 one quarter earlier, and 44,300 one year earlier. At FYE 2016’s, approximately 34,100 of these lots were owned, of which approximately 17,100 lots, including those in backlog, were substantially improved. |
▪ | In the fourth quarter of FY 2016, the Company spent approximately $78.5 million on land to purchase 1,075 lots. |
▪ | In FY 2016, the Company spent approximately $700.4 million on land to purchase 5,542 lots. |
▪ | The Company ended FY 2016 with 310 selling communities, compared to 297 at FY 2016’s third-quarter end and 288 at FYE 2015. The Company expects similar community count growth in FY 2017. |
▪ | On November 7, 2016, just after the end of FY 2016, the Company announced the acquisition of Coleman Homes in Boise, Idaho, which involved the acquisition of approximately 1,400 lots owned, 350 lots controlled, and the immediate addition of 15 selling communities to the Company’s first quarter FY 2017 community count total. |
▪ | In FY 2017 we expect Coleman to deliver approximately 300 homes at an average delivered price of $300,000 to $325,000. Due to the impact of purchase accounting and Coleman’s lower gross margins, the Company expects Coleman to reduce FY 2017 Adjusted Gross Margins by 30 to 40 basis points. |
▪ | The Company expects FY 2017 first quarter deliveries of between 1,000 and 1,250 units with an average price of between $750,000 and $780,000, and full FY 2017 deliveries of between 6,500 and 7,500 units with an average price of between $775,000 and $825,000. |
▪ | The Company expects its full FY 2017 Adjusted Gross Margin to be between 24.8% and 25.3% of revenues reflecting the above noted impact from Coleman Homes and other changes in mix of product deliveries. |
▪ | SG&A, as a percentage of full FY 2017 revenues, is projected to be approximately 10.6%. FY 2017 first quarter SG&A is projected to be approximately 15.2% of first quarter FY 2017 revenues. |
▪ | The Company’s full FY 2017 Other income and Income from unconsolidated entities is expected to be between $160 million and $200 million with approximately $50 million occurring in the first quarter. |
▪ | The Company expects its FY 2017 tax rate to be approximately 36.2%. |
(1) | See “Reconciliation of Non-GAAP Measures” below for more information on the calculation of the Company’s net debt-to-capital ratio. |
October 31, 2016 | October 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 633,715 | $ | 918,993 | |||
Marketable securities | — | 10,001 | |||||
Restricted cash | 31,291 | 16,795 | |||||
Inventory | 7,353,967 | 6,997,516 | |||||
Property, construction and office equipment, net | 169,576 | 136,755 | |||||
Receivables, prepaid expenses and other assets | 582,758 | 335,860 | |||||
Mortgage loans held for sale | 248,601 | 123,175 | |||||
Customer deposits held in escrow | 53,057 | 56,105 | |||||
Investments in unconsolidated entities | 496,411 | 412,860 | |||||
Deferred tax assets, net of valuation allowances | 167,413 | 198,455 | |||||
$ | 9,736,789 | $ | 9,206,515 | ||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Loans payable | $ | 871,079 | $ | 1,000,439 | |||
Senior notes | 2,694,372 | 2,689,801 | |||||
Mortgage company loan facility | 210,000 | 100,000 | |||||
Customer deposits | 309,099 | 284,309 | |||||
Accounts payable | 281,955 | 236,953 | |||||
Accrued expenses | 1,072,300 | 608,066 | |||||
Income taxes payable | 62,782 | 58,868 | |||||
Total liabilities | 5,501,587 | 4,978,436 | |||||
Equity: | |||||||
Stockholders’ equity | |||||||
Common stock | 1,779 | 1,779 | |||||
Additional paid-in capital | 728,464 | 728,125 | |||||
Retained earnings | 3,977,297 | 3,595,202 | |||||
Treasury stock, at cost | (474,912 | ) | (100,040 | ) | |||
Accumulated other comprehensive loss | (3,336 | ) | (2,509 | ) | |||
Total stockholders' equity | 4,229,292 | 4,222,557 | |||||
Noncontrolling interest | 5,910 | 5,522 | |||||
Total equity | 4,235,202 | 4,228,079 | |||||
$ | 9,736,789 | $ | 9,206,515 |
Twelve Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 5,169,508 | $ | 4,171,248 | $ | 1,855,451 | $ | 1,437,202 | |||||||
Cost of revenues | 4,144,065 | 3,269,270 | 1,569,767 | 1,116,332 | |||||||||||
Selling, general and administrative expenses | 535,382 | 455,108 | 150,262 | 124,934 | |||||||||||
4,679,447 | 3,724,378 | 1,720,029 | 1,241,266 | ||||||||||||
Income from operations | 490,061 | 446,870 | 135,422 | 195,936 | |||||||||||
Other: | |||||||||||||||
Income from unconsolidated entities | 40,748 | 21,119 | 17,994 | 4,039 | |||||||||||
Other income - net | 58,218 | 67,573 | 14,744 | 17,568 | |||||||||||
Income before income taxes | 589,027 | 535,562 | 168,160 | 217,543 | |||||||||||
Income tax provision | 206,932 | 172,395 | 53,782 | 70,380 | |||||||||||
Net income | $ | 382,095 | $ | 363,167 | $ | 114,378 | $ | 147,163 | |||||||
Income per share: | |||||||||||||||
Basic | $ | 2.27 | $ | 2.06 | $ | 0.70 | $ | 0.83 | |||||||
Diluted | $ | 2.18 | $ | 1.97 | $ | 0.67 | $ | 0.80 | |||||||
Weighted-average number of shares: | |||||||||||||||
Basic | 168,261 | 176,425 | 163,970 | 176,370 | |||||||||||
Diluted | 175,973 | 184,703 | 171,683 | 184,736 |
Twelve Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Impairment charges recognized: | |||||||||||||||
Cost of sales - land owned/controlled for future communities | $ | 3,442 | $ | 13,409 | $ | 39 | $ | 130 | |||||||
Cost of sales - operating communities | 10,365 | 22,300 | 2,415 | 4,300 | |||||||||||
$ | 13,807 | $ | 35,709 | $ | 2,454 | $ | 4,430 | ||||||||
Depreciation and amortization | $ | 23,121 | $ | 23,557 | $ | 6,283 | $ | 5,890 | |||||||
Interest incurred | $ | 164,001 | $ | 155,170 | $ | 41,922 | $ | 37,274 | |||||||
Interest expense: | |||||||||||||||
Charged to cost of sales | $ | 160,337 | $ | 142,947 | $ | 53,161 | $ | 48,005 | |||||||
Charged to other income - net | 1,143 | 3,843 | 537 | 1,048 | |||||||||||
$ | 161,480 | $ | 146,790 | $ | 53,698 | $ | 49,053 | ||||||||
Home sites controlled: | |||||||||||||||
Owned | 34,137 | 35,872 | |||||||||||||
Optioned | 14,700 | 8,381 | |||||||||||||
48,837 | 44,253 |
October 31, 2016 | October 31, 2015 | ||||||
Land and land development costs | $ | 2,497,603 | $ | 2,476,008 | |||
Construction in progress | 4,225,456 | 3,977,542 | |||||
Sample homes | 460,948 | 349,481 | |||||
Land deposits and costs of future development | 144,417 | 173,879 | |||||
Other | 25,543 | 20,606 | |||||
$ | 7,353,967 | $ | 6,997,516 |
North: | Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York |
Mid-Atlantic: | Delaware, Maryland, Pennsylvania and Virginia |
South: | Florida, North Carolina and Texas |
West: | Arizona, Colorado, Nevada, and Washington |
California: | California |
Three Months Ended October 31, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
HOME BUILDING REVENUES | |||||||||||||||||||||
North | 444 | 391 | $ | 322.8 | $ | 239.0 | $ | 727,100 | $ | 611,300 | |||||||||||
Mid-Atlantic | 503 | 413 | 318.8 | 266.2 | 633,700 | 644,400 | |||||||||||||||
South | 362 | 351 | 278.2 | 281.0 | 768,500 | 800,600 | |||||||||||||||
West | 505 | 319 | 355.0 | 209.7 | 703,000 | 657,400 | |||||||||||||||
California | 404 | 269 | 566.8 | 310.2 | 1,402,900 | 1,153,200 | |||||||||||||||
Traditional Home Building | 2,218 | 1,743 | 1,841.6 | 1,306.1 | 830,300 | 749,300 | |||||||||||||||
City Living | 6 | 77 | 13.9 | 131.1 | 2,322,900 | 1,702,800 | |||||||||||||||
Total consolidated | 2,224 | 1,820 | $ | 1,855.5 | $ | 1,437.2 | $ | 834,300 | $ | 789,700 | |||||||||||
CONTRACTS | |||||||||||||||||||||
North | 346 | 311 | $ | 242.5 | $ | 219.7 | $ | 700,800 | $ | 706,400 | |||||||||||
Mid-Atlantic | 409 | 331 | 248.6 | 216.3 | 607,900 | 653,300 | |||||||||||||||
South | 317 | 234 | 238.4 | 179.9 | 752,000 | 769,000 | |||||||||||||||
West | 374 | 291 | 279.1 | 211.5 | 746,400 | 726,700 | |||||||||||||||
California | 242 | 195 | 389.3 | 290.9 | 1,608,700 | 1,492,000 | |||||||||||||||
Traditional Home Building | 1,688 | 1,362 | 1,397.9 | 1,118.3 | 828,200 | 821,100 | |||||||||||||||
City Living | 40 | 75 | 67.1 | 134.6 | 1,676,600 | 1,794,300 | |||||||||||||||
Total consolidated | 1,728 | 1,437 | $ | 1,465.0 | $ | 1,252.9 | $ | 847,800 | $ | 871,900 | |||||||||||
BACKLOG | |||||||||||||||||||||
North | 977 | 890 | $ | 692.8 | $ | 619.2 | $ | 709,100 | $ | 695,800 | |||||||||||
Mid-Atlantic | 986 | 811 | 610.0 | 518.9 | 618,700 | 639,900 | |||||||||||||||
South | 960 | 824 | 736.4 | 669.2 | 767,100 | 812,100 | |||||||||||||||
West | 1,020 | 816 | 766.5 | 573.5 | 751,500 | 702,800 | |||||||||||||||
California | 533 | 609 | 867.7 | 897.8 | 1,627,900 | 1,474,200 | |||||||||||||||
Traditional Home Building | 4,476 | 3,950 | 3,673.4 | 3,278.6 | 820,700 | 830,000 | |||||||||||||||
City Living | 209 | 114 | 310.7 | 225.4 | 1,486,500 | 1,977,200 | |||||||||||||||
Total consolidated | 4,685 | 4,064 | $ | 3,984.1 | $ | 3,504.0 | $ | 850,400 | $ | 862,200 |
Twelve Months Ended October 31, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
HOME BUILDING REVENUES | |||||||||||||||||||||
North | 1,172 | 1,126 | $ | 814.5 | $ | 702.2 | $ | 695,000 | $ | 623,600 | |||||||||||
Mid-Atlantic | 1,432 | 1,342 | 895.7 | 845.3 | 625,500 | 629,900 | |||||||||||||||
South | 1,093 | 1,175 | 849.6 | 892.3 | 777,300 | 759,400 | |||||||||||||||
West | 1,304 | 994 | 903.7 | 665.3 | 693,000 | 669,300 | |||||||||||||||
California | 1,006 | 669 | 1,448.5 | 750.0 | 1,439,900 | 1,121,100 | |||||||||||||||
Traditional Home Building | 6,007 | 5,306 | 4,912.0 | 3,855.1 | 817,700 | 726,600 | |||||||||||||||
City Living | 91 | 219 | 257.5 | 316.1 | 2,829,700 | 1,443,400 | |||||||||||||||
Total consolidated | 6,098 | 5,525 | $ | 5,169.5 | $ | 4,171.2 | $ | 847,700 | $ | 755,000 | |||||||||||
CONTRACTS | |||||||||||||||||||||
North | 1,259 | 1,138 | $ | 888.0 | $ | 756.8 | $ | 705,300 | $ | 665,000 | |||||||||||
Mid-Atlantic | 1,607 | 1,323 | 986.8 | 844.7 | 614,100 | 638,500 | |||||||||||||||
South | 1,229 | 1,036 | 916.8 | 838.3 | 746,000 | 809,200 | |||||||||||||||
West | 1,508 | 1,221 | 1,096.7 | 846.2 | 727,300 | 693,000 | |||||||||||||||
California | 930 | 1,003 | 1,418.5 | 1,343.2 | 1,525,300 | 1,339,200 | |||||||||||||||
Traditional Home Building | 6,533 | 5,721 | 5,306.8 | 4,629.2 | 812,300 | 809,200 | |||||||||||||||
City Living | 186 | 189 | 342.8 | 326.4 | 1,843,000 | 1,727,000 | |||||||||||||||
Total consolidated | 6,719 | 5,910 | $ | 5,649.6 | $ | 4,955.6 | $ | 840,800 | $ | 838,500 |
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Three months ended October 31, | |||||||||||||||||||||
Revenues | 54 | 21 | $ | 109.5 | $ | 17.2 | $ | 2,028,300 | $ | 820,000 | |||||||||||
Contracts | 18 | 40 | $ | 28.0 | $ | 74.6 | $ | 1,553,100 | $ | 1,865,300 | |||||||||||
Twelve months ended October 31, | |||||||||||||||||||||
Revenues | 115 | 96 | $ | 164.9 | $ | 78.1 | $ | 1,434,000 | $ | 813,300 | |||||||||||
Contracts | 113 | 147 | $ | 169.8 | $ | 260.2 | $ | 1,502,900 | $ | 1,770,100 | |||||||||||
Backlog at October 31, | 184 | 186 | $ | 471.5 | $ | 466.6 | $ | 2,562,400 | $ | 2,508,500 |
Three Months Ended October 31, | Twelve Months Ended October 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Pre-tax income | $ | 168,160 | $ | 217,543 | $ | 589,027 | $ | 535,562 | ||||||||
Add: | Inventory write-downs | 2,454 | 4,430 | 13,807 | 35,709 | |||||||||||
Warranty charges primarily related to older stucco homes | $ | 121,231 | $ | 14,685 | $ | 125,576 | $ | 14,685 | ||||||||
Adjusted pre-tax income | $ | 291,845 | $ | 236,658 | $ | 728,410 | $ | 585,956 |
Three Months Ended October 31, | Twelve Months Ended October 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | $ | 1,855,451 | $ | 1,437,202 | $ | 5,169,508 | $ | 4,171,248 | ||||||||
Cost of revenues | 1,569,767 | 1,116,332 | 4,144,065 | 3,269,270 | ||||||||||||
Gross margin | 285,684 | 320,870 | 1,025,443 | 901,978 | ||||||||||||
Add: | Interest recognized in cost of sales | 53,161 | 48,005 | 160,337 | 142,947 | |||||||||||
Inventory write-downs | 2,454 | 4,430 | 13,807 | 35,709 | ||||||||||||
Adjusted gross margin | 341,299 | 373,305 | 1,199,587 | 1,080,634 | ||||||||||||
Add: | Warranty charges primarily related to older stucco homes | 121,231 | 14,685 | 125,576 | 14,685 | |||||||||||
Adjusted gross margin, further adjusted for warranty charges primarily related to older stucco homes | $ | 462,530 | $ | 387,990 | $ | 1,325,163 | $ | 1,095,319 | ||||||||
As a percentage of revenue: | ||||||||||||||||
Gross margin | 15.4 | % | 22.3 | % | 19.8 | % | 21.6 | % | ||||||||
Adjusted Gross Margin | 18.4 | % | 26.0 | % | 23.2 | % | 25.9 | % | ||||||||
Adjusted gross margin, further adjusted for warranty charges primarily related to older stucco homes | 24.9 | % | 27.0 | % | 25.6 | % | 26.3 | % |
October 31, | July 31, | |||||||||||
2016 | 2015 | 2016 | ||||||||||
Loans payable | $ | 871,079 | $ | 1,000,439 | $ | 1,058,656 | ||||||
Senior notes | 2,694,372 | 2,689,801 | 2,693,221 | |||||||||
Mortgage company loan facility | 210,000 | 100,000 | 125,000 | |||||||||
Total debt | 3,775,451 | 3,790,240 | 3,876,877 | |||||||||
Total stockholders' equity | 4,229,292 | 4,222,557 | 4,174,151 | |||||||||
Total capital | $ | 8,004,743 | $ | 8,012,797 | $ | 8,051,028 | ||||||
Ratio of debt to capital | 47.2 | % | 47.3 | % | 48.2 | % | ||||||
Total debt | $ | 3,775,451 | $ | 3,790,240 | $ | 3,876,877 | ||||||
Less: | Mortgage company loan facility | (210,000 | ) | (100,000 | ) | (125,000 | ) | |||||
Cash and cash equivalents and marketable securities | (633,715 | ) | (928,994 | ) | (351,854 | ) | ||||||
Total net debt | 2,931,736 | 2,761,246 | 3,400,023 | |||||||||
Total stockholders' equity | 4,229,292 | 4,222,557 | 4,174,151 | |||||||||
Total net capital | $ | 7,161,028 | $ | 6,983,803 | $ | 7,574,174 | ||||||
Net debt-to-capital ratio | 40.9 | % | 39.5 | % | 44.9 | % |