Third-quarter net income was $106 million, up 56% over the same quarter a year ago. Revenue in the most recent quarter closed just above $1 billion, up 46% from the company's third-quarter 2003. Third-quarter contracts rose 69% to $1.6 billion, and the backlog at the end of the third quarter showed an even more stellar gain, reaching to $4.3 billion, an increase of 75% in comparison with the same quarter of 2003.

"Buyer appetite for new luxury homes has remained tremendous throughout 2004 and we are enjoying very strong demand across all our product lines," Toll said in a conference call. "Based on our current backlog, which affords revenue visibility over the next nine to 12 months, and the pace of current demand, we project fiscal-year 2005 deliveries of between 7,700 and 8,000 homes. Based on our projections of community growth in the coming year, assuming continuing strong demand," he added, "we believe that 20% revenue and net income growth should be achievable in fiscal year 2006."

Toll Brothers' revenues and net income have doubled since 2000. Toll also notes that during that period there was a recession, dramatic job losses, a severe stock market slump, "and global political turmoil."

His company builds golf communities, multifamily condo complexes and single-family residences in 21 states and controls more than 61,000 home sites in those states. Toll cited the growing difficulty of obtaining approvals for home construction, especially in areas like Pennsylvania where small, local government entities control much of the land. The company's holdings, he said, will enable it to continue its growth despite difficulty with approvals. In answer to analysts' questions regarding shortages of materials, including steel, wood and cement. "We believe we have the management, contractors and supply lines in place to meet our projections."