HORSHAM, PA -- Toll Brothers, Inc., the nation's leading builder of luxury homes, said second quarter net income was $65.2 million, compared to net income of $24.7 million, in FY 2013's second quarter.
Revenues of $860.4 million and homebuilding deliveries of 1,218 units rose 67% in dollars and 36% in units, compared to FY 2013's second quarter totals of $516.0 million and 894 units. The average price of homes delivered was $706,000, compared to $577,000 in FY 2013's second quarter.
The Company ended its second quarter with 252 selling communities, compared to 238 at FY 2014's first-quarter end, and 225 at FY 2013's second-quarter end.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "Two weeks ago, Toll Brothers was honored by BUILDER Magazine with the national Builder of the Year award. We are proud to receive this award not only for our quality homes and luxury brand, but also for the strategic initiatives we implemented during the past year. This honor is the second significant industry-wide award we have won in the past two years.
"Our significant expansion over the past year in key California and Texas markets will be a major source of future growth. These are among the strongest housing markets in the U.S. The Shapell Homes acquisition, which gives us a portfolio of spectacularly located, well-established communities in affluent Coastal California, is already proving better than we originally expected based on our early operating results. We have been systematically raising prices across the board in both our Shapell and other Coastal California communities. In Texas, we now control three major master planned communities in Houston, we are about to open our first new master planned community in Austin, and we continue to grow our presence in Dallas.
"Our Apartment Living brand is also growing. In the Northeast and Mid-Atlantic regions, we currently have four projects -- two in suburban markets and two in urban locations -- totaling approximately 1,500 rental units under construction with joint venture partners. We own or control sites for another 3,800 rental units in the same corridor and have additional expansion plans on the horizon.
"Demand over the past year has been solid, although relatively flat, compared to the strong growth we initially experienced beginning in 2011, coming off the bottom of this housing cycle. We note that last cycle's recovery, in the early 1990's, began with a period of rapid acceleration, followed by leveling, before further upward momentum. We believe that we are in a similar leveling period in the early stages of the housing recovery with significant pent-up demand building."
Robert I. Toll, executive chairman, stated: "According to the April 2014 U.S. Census Bureau's New Home Sales Report, new home inventory stands at just 5.3 months' supply, based on current sales paces. If demand and pace increase, the 5.3 months' supply could quickly be drawn down. Current demographics seem to suggest that new home sales should pick up. If the tight supply bumps into increasing demand, prices could rapidly rise.