Toll Brothers had cash and cash equivalents worth $1.43 billion as of July 31, 2010 compared with $1.66 billion as of July 31, 2009.  Including the marketable U.S. treasury and Agency securities, cash totaled $1.64 billion as of July 31, 2010 versus $1.66 billion as of the same date in 2009.  Sequentially, cash with marketable securities rose 6% from $1.55 billion as of April 30, 2010.  The sequential increase in cash was attributed to cash generated from operations and to the receipt of $152.5 million in tax refunds, largely offset by $63.1 million used in retiring debt, purchasing of land worth $104.1 million and $29.1 million investment in a new joint venture initiative.  At the end of 3Q10, TOL had $1.39 billion available under its $1.89 billion 30-bank credit facility, which will mature in March 2011.

Net-debt-to-capitalization ratio as of July 31, 2010 improved to11.5% from 14.5% as of July 31, 2009.  Inventories as of July 31, 2010 amounted to $3.26 billion compared with $3.48 billion as of July 31, 2009.  Shareholders’ Equity was 2.50 billion at the end of 3Q10, down from 2.61 billion recorded at the end of 3Q09.

Lot Position

The Company had 35,825 lots owned and optioned at the end of 3Q10 compared with 35,398 lots at the end of the corresponding period in 2009.  Out of the total 35,825 lots, 29,243 were owned and the remaining 6,582 lots were optioned.  In comparison with this, out of the total 35,398 home sites controlled at the end of 3Q09, 30,843 lots were owned and the left 4,555 were optioned.

Total selling communities decreased to 190 at the end of 3Q10 from 215 selling communities at the end of 3Q09. Management expects to end the FY10 with 195 selling communities, thus with an intention of making 5 new additions during 4Q10.

Dividend

The Company does not pay any dividend, instead, uses the retained earnings to invest in potential opportunities and also take advantage of potential lower land prices in the near future.