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Wednesday, March 04, 2009

Toll Brothers: More Losses, No Pick-up in Activity

by Calculated Risk on 3/04/2009 06:48:00 AM

"We have not yet seen a pick-up in activity at our communities other than ordinary seasonal increases for this time of year."
Robert I. Toll, chairman and chief executive officer, March 4, 2009
Press Release: Toll Brothers Reports 1st Qtr 2009 Results
Toll Brothers ... today reported a FY 2009 first quarter net loss of $88.9 million ... which included pre-tax write-downs totaling $156.6 million.
Joel H. Rassman, chief financial officer, stated: "Given the numerous uncertainties related to sales paces, sales prices, mortgage markets, cancellations, market direction and the potential for and size of future impairments, it is particularly difficult in the current climate to provide guidance for the rest of FY 2009. As a result, we will not provide earnings guidance at this time."
FY 2009's first-quarter cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) was 37.1% ...
Toll's normal cancellation rate is about 7%.

In summary: More losses. More write-downs. More cancellations. No guidance. No pick-up in activity.