Luxury home builder Toll Brothers reported mixed results for its third fiscal quarter, with profits up but revenues down as cancellations increased and orders for new homes slowed.
Net earnings for the third quarter, which ended July 31, were $42.1 million, a 54% increase, but they included a one-time tax benefit of $38.2 million. This compares with net income of $27.3 million in the same period a year ago, which included a $26.5 million tax benefit.
Third-quarter revenues and home-building deliveries of $394.3 million and 693 units decreased 13% in dollars and 14% in units, compared with fiscal year 2010's third-quarter results.
Signed contracts in the third quarter rose 2%, to $406.7 million and 713 units, compared with fiscal year 2010's third-quarter signed contracts. The company's contract cancellation rate was 7.4% in the third quarter of fiscal year 2011, compared with 6.2% in fiscal year 2010's third quarter.
Toll Brothers serves move-up, empty-nester, active-adult and second-home buyers and operates in 19 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas and Virginia.