Toll Brothers Q4 Loss Narrows But Offers Weak 2009 Outlook

December 4, 2008 9:22 p.m. EST

Horsham, PA (AHN) - Toll Brothers Inc. announced Thursday it's fiscal fourth quarter loss narrowed from a year ago as the company reduced expenses during a period of weak housing demand.

The homebuilder posted a $78.8 million net loss or 49 cents a share, compared to an $81.8 million loss or 52 cents a share in the same period a year earlier. Earnings included pre-tax write-downs of $175.9 million.

Revenue totaled $689.9 million, down 40 percent from $1.17 billion last year.

Results were mixed with earnings coming short of analyst estimates for a loss of 46 cents a share, while revenue topped estimates of $681.4 million, according to Thomson Reuters.

Toll did see revenue from land sales more than triple to $7.8 million as it continues to clear building lots of its books.

The company's backlog fell 54 percent in the fourth quarter to 2,046 units from 3,950 units last year.

Total contracts signed fell in the quarter 28 percent to 772, from 1,073 a year ago.

For fiscal year 2008, Toll posted a $297.8 million net loss, or $1.88 a share. This compares to a profit of $35.7 million or 22 cents a share in fiscal year 2007.

Revenue for the year totaled $3.16 billion, down 32 percent from $4.65 billion in 2007.

Selling, general and administrative expenses dropped in 2008 to $429.9 million, compared to $573.4 million in 2007.

Looking forward, Toll said it expects fiscal year 2009 revenue to be well below the $3.16 billion in 2008.

The company expects t deliver 2,000 to 3,000 homes in 2009 at an average price of $600,000 or so.