HORSHAM, PA -- Toll Brothers, Inc., the nation's leading builder of luxury homes, said it earned net income of $131.5 million in its lastest quarter, compared to $94.9 million in FY 2013's fourth quarter.
Fourth quarter revenues of $1.35 billion and home building deliveries of 1,807 units rose 29% in dollars and 22% in units, compared to FY 2013's fourth quarter totals of $1.04 billion and 1,485 units. The average price of homes delivered was $747,000, compared to $732,000 in FY 2014's third quarter and $703,000 in FY 2013's fourth quarter.
Net signed contracts of $970.8 million and 1,282 units rose 16% in dollars and 10% in units, compared to FY 2013's fourth quarter totals of $839.0 million and 1,163 units. The average price of net signed contracts was $757,000, compared to $721,000 in FY 2013's fourth quarter.
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer, stated: "As the housing market progresses through the early stages of what we believe will be an extended and uneven recovery, we are pleased to report significant progress in growing our revenues and profits. Since the recent low point in FY 2011, our revenues and net income have increased at compound average annual average growth rates of 38% and 104%, respectively. In FY 2014, revenues rose 46% to $3.91 billion and net income doubled to $340.0 million compared to one year ago.
"While FY 2014 sales contracts were generally flat compared to FY 2013, recent trends are encouraging. FY 2014 fourth-quarter contracts grew 16% in dollars and 10% in units versus FY 2013. The momentum has continued into FY 2015, with contract growth of 16%, deposit (non-binding reservations) growth of 15% and traffic growth of 37% through the first six weeks of FY 2015, compared to FY 2014's same period. We remain optimistic about the upcoming Spring selling season, which begins in late January.
The Company ended FY 2014 with 263 selling communities, compared to 256 at FY 2014's third-quarter end, and 232 at FYE 2013. The Company expects to end FY 2015 with between 270 and 310 selling communities.