Toll Brothers

Toll Brothers, Inc.
Public
Traded as NYSE: TOL
Industry Homebuilding
Founded 1967 (1967)
Founder Robert I. Toll
Bruce E. Toll
Headquarters Horsham, Pennsylvania, United States
Key people
Products New homes and condos
Revenue
  • Increase US$3.91 billion (2014)
  • US$2.67 billion (2013)
  • US$1.88 billion (2012)
  • Increase US$535 million (2015)
  • Increase US$363 million (2015)
Number of employees
 2,396 (2013)
Website http://www.tollbrothers.com/
Footnotes / references
[1]

Toll Brothers is an American real estate company based in Horsham, Pennsylvania. They are a builder of luxury homes[2] in major metropolitan areas in the contiguous United States.[3] Toll Brothers is a publicly-traded company listed on the New York Stock Exchange.[4]

Company overview

As of October 2013, Toll Brothers owned 103 subsidiary corporations, 241 limited liability companies and had active partnerships with 211 companies.[5] It has subsidiaries for land development, engineering, marketing, golf course, architecture, mortgaging, title insurance and landscaping. Toll Commercial and Toll Brothers Realty Trust are subsidiaries for commercial property. Gibraltar Capital and Asset Management buys existing real estate portfolios.[3] Toll Brothers City Living builds luxury condos and townhomes.

As of January 2016 Toll Brothers operated in 50 markets across 19 American states.[6] At the end of 2014 Toll Brothers reported having 263 active communities.[7]

In 2015, Builder Magazine regarded Toll Brothers as the tenth largest American builder based on 2014 total closings of 5,397 homes. They were the fifth largest American builder based on 2014 revenue of $3.912 billion.[8]

Toll Brothers reported in 2015 that its average delivered home price was US$755,000 and its average backlog price was US$862,000.[9] This was approximately 2.5 times the average American new home selling price in December 2015.[10] Bloomberg regards them as the largest luxury-home builder in the United States in December 2015.[11]

As of October 31, 2015, the company had over $928 million in cash and marketable securities, revenue of $4.171 billion and income of $535 million before taxes. [12]

History

Toll Brothers was founded in 1967 in Pennsylvania by Robert I. Toll and Bruce E. Toll. Bob received a law degree from University of Pennsylvania and his B.A. from Cornell University, while his brother Bruce had an accounting degree from the University of Miami. Their father, Albert, built homes and the brothers believed that the new home industry had more to offer. Bruce was 24 at the time.[13]

In 1982 Toll Brothers expanded to New Jersey. In May 1986 Toll Brothers was incorporated as a Delaware corporation[3] with a public offering raising $40 million.[14]

Executives

Doug Yearley joined Toll Brothers in 1990 and was promoted as Chief Executive Officer in June 2010.[15] Doug also serves as Co-Chair of the Pennsylvania Chapter of American Cancer Society's CEO's Against Cancer.[16]

Robert Toll now serves exclusively as Executive Chairman of the Board.[17]

Richard Hartman joined Toll Brothers in 1980 and was promoted to Chief Operating Officer and Executive Vice President in January 2012.[18]

Martin Connor was hired as Toll Brother's CFO in 2010.[19]

Acquisitions

Toll Brothers primarily builds customized single and attached luxury homes on land that it acquires and develops.[20]

In 2011, Toll Brothers acquired Seattle builder CamWest Development LLC for an undisclosed cash price.[21]

In November 2013, Toll Brothers agreed to buy Shapell Industries for roughly $1.6 billion. The acquisition delivered an additional 5,200 lots in the Los Angeles and San Francisco Bay areas.[22]

In 2014, Toll Brothers doubled its presence in Houston through the purchase of a 3,700 acre parcel known as the Sienna South project which is planned to be used for about 6,500 homes.[23]

In January 2015, Toll Brothers acquired Gramercy Park site to expand its presence in New York City. [24]

In September 2015, Toll Brothers held 47,200 home sites.[25]

Awards

Toll Brothers was named the Most Admired Home Building Company in Fortune magazine's survey of the World's Most Admired Companies for 2015.[26] Toll Brothers was ranked by Fortune as the 39th fastest growing company in 2014.[27]

In 2014 Builder Magazine[28] and in 2012 Professional Builder Magazine[29] named Toll Brothers 'Builder of the Year'. [30]

Financial Analysis

An analysis of the Q4 2015 financial reports[31] indicates that Toll Brothers had a current ratio (current assets / current liabilities) of over 9. These assets provided Toll Brothers with working capital of over US$7.297 billion. Toll Brothers had a quick ratio (acid test) of 1.33.

Toll Brothers had an accounts receivable turnover of 15.6 providing an average days' sales in accounts receivable of 23.4 days. Inventory turnover was 0.48 with an average days' sales in inventory of 764 days.

Toll Brothers' had a debt-to-equity ratio of 1.18 and a debt-to-capital ratio of 46.6% in Q4 2015.[32]

Disputes

Toll Brothers was sued in April 2007 by a group of investors claiming they were misled by directors about their ability to maintain historically high-earnings during the downturn in the U.S. residential real estate market.[33] Toll Brothers agreed to settle suit for $25 million, though they did not admit any wrongdoing.[34]

Six residents at the Northside Piers development complained of faulty window seals that leaked in air and rain when windy.[35] The project gained notoriety in 2007 when a kettle of roofing tar on the top level caught fire during construction and although quickly contained produced a significant amount of smoke.[36] After meeting with the residents Toll Brothers agreed to fix the seals.[37] Toll Brothers sued the contractor who installed the windows for $10 million.[38]

In 2012, the company was required to pay a penalty of $741,000 for numerous alleged violations of the Clean Water Act, including more than 600 relating to runoff of stormwater at its building sites, among them sites in the Chesapeake Bay Watershed.[39] Toll Brothers agreed to implement storm-water training and prevention techniques across the entire company.[40]

References

  1. ↑ Toll Brothers (December 28, 2012), TOLL BROTHERS, INC., 10-K, U.S. Securities and Exchange Commission, retrieved January 27, 2013
  2. ↑ mrgopal, Prashant Gopal. "Toll Brothers Fourth-Quarter Profit Rises With Home Prices". Bloomberg.com. Retrieved February 16, 2016.
  3. 1 2 3 Toll Brothers, Inc., Form 10-K, U.S. Securities and Exchange Commission, December 22, 2010
  4. ↑ "NYSE". www.nyse.com. Retrieved February 12, 2016.
  5. ↑ "TOL-2013.10.31-10-K-Ex.21". www.sec.gov. Retrieved February 12, 2016.
  6. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - About Toll Brothers". www.tollbrothers.com. Retrieved February 10, 2016.
  7. ↑ "Sharp Rise in Average 2014 Toll Brothers Sales Price - Market Realist". marketrealist.com. Retrieved February 12, 2016.
  8. ↑ "2015 - Builder 100". Builder. Retrieved February 10, 2016.
  9. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - 2015 Corporate Overview". www.tollbrothers.com. Retrieved February 12, 2016.
  10. ↑ "US Census: Median and Average Sales Prices of New Homes Sold in United States" (PDF). US Census. Retrieved February 12, 2016.
  11. ↑ mrgopal, Prashant Gopal. "Toll Brothers Fourth-Quarter Profit Rises With Home Prices". Bloomberg.com. Retrieved February 12, 2016.
  12. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - 2015 Interactive Annual Report". www.tollbrothers.com. Retrieved February 12, 2016.
  13. ↑ "History of Toll Brothers Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved February 10, 2016.
  14. ↑ "Toll Brothers Inc Facts, information, pictures | Encyclopedia.com articles about Toll Brothers Inc". www.encyclopedia.com. Retrieved February 10, 2016.
  15. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - Executive Biographies". www.tollbrothers.com. Retrieved February 13, 2016.
  16. ↑ "The American Cancer Society: Philadelphia CEOs Against Cancer". main.acsevents.org. Retrieved February 13, 2016.
  17. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - Executive Biographies". www.tollbrothers.com. Retrieved February 13, 2016.
  18. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - Executive Biographies". www.tollbrothers.com. Retrieved February 13, 2016.
  19. ↑ Department, Toll Brothers, Inc. Internal Web. "Toll Brothers - Executive Biographies". www.tollbrothers.com. Retrieved February 13, 2016.
  20. ↑ "TOL:New York Stock Quote - Toll Brothers Inc". Bloomberg.com. Retrieved February 10, 2016.
  21. ↑ Wotapka, Dawn. "Toll Brothers to Buy Seattle Builder". Wall Street Journal. ISSN 0099-9660. Retrieved February 10, 2016.
  22. ↑ Gittelsohn, John. "Toll to Buy California Builder Shapell for $1.6 Billion". Bloomberg.com. Retrieved February 10, 2016.
  23. ↑ Hudson, Kris. "Toll Spreads Out in Houston". Wall Street Journal. ISSN 0099-9660. Retrieved February 10, 2016.
  24. ↑ "Toll Brothers makes $135M buy in NYC - New York Business Journal". Builder. Retrieved February 10, 2016.
  25. ↑ "A Geographic Overview of Toll Brothers' Homebuilding Operation - Market Realist". marketrealist.com. Retrieved February 12, 2016.
  26. ↑ "Toll Brothers". Fortune. Retrieved February 10, 2016.
  27. ↑ "Toll Brothers". Fortune. Retrieved February 10, 2016.
  28. ↑ "Toll Brothers Takes Home Builder of the Year Honors at HLS". Builder. Retrieved February 10, 2016.
  29. ↑ "Builder of the Year report: Toll Brothers - new guard, new era, more success". Pro Builder. Retrieved February 10, 2016.
  30. ↑ Inc., Toll Brothers,. "Toll Brothers Named Builder of the Year by BUILDER Magazine". GlobeNewswire News Room. Retrieved February 10, 2016.
  31. ↑ "The Globe and Mail - Stock Quote". The Globe and Mail. Retrieved February 16, 2016.
  32. ↑ "Toll Brothers 2015 Annual Report" (PDF). Toll Brothers. Retrieved February 17, 2016.
  33. ↑ http://www.sedgwicklaw.com/credit-crunch-digest-12-29-2010/#toll
  34. ↑ Pearson, Sophia (November 2, 2010), "Toll to Pay $25 Million to End Lawsuit Alleging Company Misled Investors", bloomberg.com, Bloomberg L.P.
  35. ↑ Calder, Rich (March 23, 2011), "Williamsburg waterfront condo residents complain of 'shoddy' construction", New York Post, nypost.com
  36. ↑ Dobkin, Jak (September 26, 2007), "Williamsburg Condo Market Going up in Flames", Gothamist (blog), Gothamist
  37. ↑ "Disgruntled Northside Piers Buyers Declare War on Toll Brothers". Curbed NY. Retrieved February 11, 2016.
  38. ↑ Pincus, Adam. "Toll Bros. sues contractors at One Northside Piers for $10 million". The Real Deal New York. Retrieved February 11, 2016.
  39. ↑ Homebuilder Toll Brothers Inc. to Pay $741,000 Clean Water Act Penalty and Implement Company-Wide Stormwater Controls / Settlement to Prevent Millions of Pounds of Sediment and Polluted Stormwater Runoff from Entering U.S. Waterways Each Year, United States Environmental Protection Agency, June 20, 2012, retrieved February 10, 2016
  40. ↑ "Toll Brothers settles with EPA - Public Spirit Willow Grove Guide - Montgomery News". Montgomery Media. Retrieved February 11, 2016.
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