TOLL BROTHERS INC. designs, builds, markets and arranges financing for single-family detached and attached homes in middle and high income residential communities in thirteen staes and five regions around the country. The communities are generally located on land Co. has developed, although, due to the poor economic conditions during the early 1990's, Co. has been able to acquire a number of fully approved parcels and often improved subdivisions.
Industry:BLDG-RSDNT/COMR Sector: Construction Fiscal Year End:October Last Reported Quarter:07/31/10 Next EPS Date:12/09/10
Capital Structure Solvency and Cash Flow
The Company continues to have a strong balance sheet. It ended 1Q10 with $1.75 billion of cash versus $1.53 billion in 1Q09. The Company had $1.38 billion available under its bank credit facility, which matures in March 2011. Net debt-to-cap ratio at the end of 1Q10 was 10.8%, compared with 14.5% at the end of 1Q09.
During the quarter, the Company used approximately $64.0 million in cash to reduce debt, including the previously announced retirement of $47.9 million of senior subordinated notes. The Company used approximately $93.0 million of cash to purchase land and land-related notes.
Last edited Mon Mar 15, 2010 05:30 AM by BipashaChowdhury (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
• TOL’s business is cyclical and can be significantly affected by changes in general and local economic conditions, which are adversely affecting all builders at present.
• TOL builds homes in highly competitive markets.
• The operating environment continues to be challenging with supply remaining high and the rise in prices continuing to limit demand.
• Interest rate increases or changes in federal lending procedures could lower the demand for homes and adversely impact the Company’s mortgage lending operations.
• The increased mortgage rates are currently negatively impacting affordability and restraining home price appreciation across the industry.
• Negative income or consumer confidence trends have an impact on demand for homes.
• The seasonal nature of the homebuilding business tends to cause volatility in TOL’s quarterly operating results.
Last edited Mon Mar 15, 2010 05:31 AM by BipashaChowdhury (Zacks Investment Research)
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Last Modification: Thursday 03 of June, 2010 08:57:04 CDT by WikiMigrationBot.
